Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q4 FY22 Earnings Presentation
37 slides from Kotak Mahindra Bank's earnings presentation, May 4, 2022
Slide 1: Cover letter to stock exchanges
ekotak Kotak Mahindra Bank May4, 2022 BSELimited National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, Plot No.C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Dalal Street, Bandra (East), Mumbai 400 001 Mumbai 400 051 BSE Scrip Code: 50024 7 NSE S
Slide 2: Investor Presentation Q4FY22
Investor Presentation Q4FY22 Presentation on financial results for the period ended 31st March, 2022 4th May, 2022
Slide 3: Consolidated Highlights
Consolidated Highlights Q4FY22 As on Mar’22 FY22 PAT Customer PAT Assets* ` 3,892 cr ` 327,074 cr ` 12,089 cr [` 2,589 cr] [` 268,130 cr] [` 9,990 cr] Return on CAR# Return on Assets 23.7% [23.4%] Assets 2.94% Tier I# 2.36% [2.20%] 22.8% [22.6%] [2.16%] Return on Book Value Return on Equity per Eq.
Slide 4: Consolidated PAT
Consolidated PAT ` cr Q4FY22 Q4FY21 Q3FY22 FY22 FY21 PAT Contribution Kotak Mahindra Bank 2,767 1,682 2,131 8,573 6,965 Kotak Mahindra Prime 313 184 254 886 535 Kotak Mahindra 101 73 111 371 258 Investments Kotak Securities 252 241 270 1,001 793 Kotak Mahindra Capital 42 25 103 245 82 Kotak Mahindra
Slide 5: Entity-wise Capital & Reserves and Surplus
Entity-wise Capital & Reserves and Surplus ` cr 31-Mar-22 31-Mar-21 31-Dec-21 Kotak Mahindra Bank 72,456 63,727 69,617 Kotak Mahindra Prime 7,494 6,623 7,182 Kotak Mahindra Investments 2,489 2,117 2,388 Kotak Securities 6,291 5,321 6,039 Kotak Mahindra Capital 885 689 873 Kotak Mahindra Life Insuran
Slide 6: Standalone Highlights Q4FY22
Standalone Highlights Q4FY22 PAT NII No. of CASA Ratio ` 4,521 cr Customers [` 3,843 cr] ` 2,767 cr NIM 32.7 mn 60.7% [` 1,682 cr] 4.78% [60.4%] [26.0 mn] [4.39%] Customer Net NPA ROA CAR# Assets* 2.70% 22.7% [1.76%] 4.39% [22.3%] [4.72%] ` 292,481 cr 0.64% ROE Tier TierI#I# [` 238,838 cr] [1.21%] 1
Slide 7: Profit and Loss Account
Profit and Loss Account ` cr Q4FY22 Q4FY21 Q3FY22 FY22 FY21 Notes for Q4FY22 Net Interest Income 4,521 3,843 4,334 16,818 15,340 COVID-19 provision reversed: ` 453 cr, Other Income 1,827 1,504 1,364 6,354 5,006 continue to carry: ` 547 cr Fee and Services 1,697 1,378 1,496 5,781 4,331 Additional
Slide 8: Fees & Services
Fees & Services ` cr Q4FY22 Q4FY21 Q3FY22 FY22 FY21 Distribution & Syndication 376 292 230 1,102 785 Income General Banking Fees 1,279 1,023 1,221 4,511 3,396 Others 42 63 45 168 150 Fees and Services 1,697 1,378 1,496 5,781 4,331 7
Slide 9: Asset Quality
Asset Quality ` cr 31-Mar-22 31-Mar-21 31-Dec-21 Slippage for the quarter GNPA 6,470 7,426 6,983 ` 736 cr (0.27% of Advances); NNPA 1,737 2,705 2,004 Credit cost on advances for Recoveries and upgrades GNPA (%) 2.34% 3.25% 2.71% Q4FY22: 27 bps annualised ` 897 cr NNPA (%) 0.64% 1.21% 0.79% (excl COV
Slide 10: Balance Sheet
Balance Sheet ` cr 31-Mar-22 31-Mar-21 31-Dec-21 Capital & Reserves and Surplus 72,456 63,727 69,617 Deposits 311,684 280,100 305,286 CA 64,662 52,087 57,097 Fixed rate SA 117,908 106,101 117,011 Floating rate SA 6,564 11,125 8,810 Term Deposits 122,550 110,787 122,368 Of which: TD Sweep 21,906 20,9
Slide 11: Customer Assets
Customer Assets 31-Mar-22 (` 292,481 cr) Customer Assets ` cr 31-Mar-22 31-Mar-21 31-Dec-21 YoY QoQ Home Loans & LAP 76,077 54,749 68,871 39% 10% Consumer Bank WC 26,444 21,839 24,080 21% 10% (Secured) PL, BL and Consumer 10,071 7,022 8,554 43% 18% Durables Credit Cards 5,572 3,969 4,948 40% 13% CV/
Slide 12: Deposit
Deposit CASA (` cr) Cost of SA CASA % 60.7% 59.9% 60.4% 3.52% [3.74%] CASA & TDs below ` 5 Floating rate SA cr, as % of total deposits Fixed rate SA TD Sweep as % of 89% [91%] total deposits 7.0% [7.5%] CA Branch Count (excl GIFT & DIFC) 1,700 [1,604] YoY % 26% Avg CA (YTD) 49,776 39,481 Avg Fixed r
Slide 13: Investing in Technology Backbone
Investing in Technology Backbone For Acquisition, Engagement, Experience Key Projects Completed in Q4 INFRASTRUCTURE & INFORMATION CORE APPLICATIONS DIGITAL CHANNELS SECURITY BUILD RESILIENCY & DIY JOURNEY, REINFORCE CORE SYSTEMS ADOPT CLOUD STP & AUTOMATION NextGen Security Operations ‘Fyn’ – d
Slide 14: Kotak MB SuperApp and growing UPI share
Kotak MB: SuperApp for all financial needs Growing share of the UPI market Key launches in the app in Q4 Among top 10 UPI remitter banks Among top 10 UPI apps by txn volume Pay bills of Free Credit ReKyc and associations and Score Address update municipalities 2.3X YoY UPI transaction volume, Q4FY22
Slide 15: Retail Assets
Retail Assets Key new customer journeys in Q4 Digital engagement journeys Mobile-first Credit Cards Home Buying Tools Revamped Credit Card Overview on MB Existing to Bank E2E digitization of onboarding journeys New to Bank Customer Categories Co - origination Digital Sales Assisted Journeys Lead Cap
Slide 16: Customer Service and Convenience
Participation in Public Customer Service and Convenience Ecosystems AI enabled Customer Support Services made Leveraging Regulatory Enablers Conversational Banking available digitally Keya Chatbot: Key launches in Q4 Nominee updation for SA, TD Account Aggregator and RD account Account Balance – Cre
Slide 17: Business Banking Transforming Transaction Banking
Business Banking Transforming Transaction Banking | Revolutionizing CX Key Launches in Q4 Digital portal | One-stop | Future ready | Unified view Instant CMS UPI ASBA Tax Payments Prepaid Platform Custody E Voting System Faster and Seamless End to End tax Prepaid card Platform for custody immediate
Slide 18: Digital Highlights
Digital Highlights Netbanking Website Web 9% YoY growth in Logins, Q4FY22 vs Q4FY21 43% YoY growth in Visits, Q4FY22 vs Q4FY21 Channels 16% YoY growth in 90-day active user base, Q4FY22 vs Q4FY21 35% YoY growth in Page views, Q4FY22 vs Q4FY21 11% YoY growth in Financial transaction value,
Slide 19: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance Individual New Business Product ₹ cr FY22 FY22 Mix# Indian Embedded Value (IEV)* 10,679 Participating Products 33.5% Value of New Business (VNB) * 895 Non-Participating Products 38.7% VNB Margin (%)* 31.1% ULIP 27.8% Channel Mix FY22 Bancassurance 51% Highlights Agency
Slide 20: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance ` cr Q4FY22 Q4FY21 Q3FY22 FY22 FY21 Gross Written Premium (` cr) Capital 562 562 562 562 562 5,329 4,870 3,108 13,015 11,100 Other Reserves 3,827 3,483 3,560 3,827 3,483 and Surplus Total Premium 5,329 4,870 3,108 13,015 11,100 Profit After Tax 267 193 247 425 692 (Shar
Slide 21: Kotak Securities
Kotak Securities ` cr Q4FY22 Q4FY21 Q3FY22 FY22 FY21 Market ADV* (` ‘000 cr) Total Income 661 570 656 2,502 2,020 4,782 2,247 3,875 3,552 1,530 Profit Before Tax 335 321 359 1,334 1,057 Profit After Tax 252 241 270 1,001 793 Market Share Cash* (%) 11.5 9.7 10.4 10.6 9.3 Overall Market Share* Q4FY22:
Slide 22: Kotak Securities – Digital Update
Kotak Securities – Digital Update • Launched a robust cloud based trading platform with cutting-edge • Executed first acquihire deal Neo technology stack with TradeGyani platform • Upgraded customer experience • Initiated partnership with Fin- across Login, Trade, Payment, Portfolio view Techs like
Slide 23: Kotak Mahindra Capital Company
Kotak Mahindra Capital Company Equity Advisory KOTAK MAHINDRA BANK LTD. Exclusive financial advisor and fairness opinion CIPLA LTD. # Block Deal # Block Deal provider to Tata Consumer Products for ` 6,800 cr ` 1,835 cr ` 4,295 cr reorganization with Tata Coffee ADANI WILMAR LTD. SBI LIFE INSURANCE L
Slide 24: Kotak Mahindra Investments
Kotak Mahindra Investments ` cr Q4FY22 Q4FY21 Q3FY22 FY22 FY21 Customer Assets* (` cr) NII 116 88 109 427 354 Other Income 28 29 59 141 74 NII and Other Income 144 117 168 568 428 Profit Before Tax 135 98 149 499 346 Profit After Tax 101 73 111 371 258 NNPA (%) 0.6% 0.6% 0.4% 0.6% 0.6% CAR (%) (incl
Slide 25: Kotak Mahindra Prime
Kotak Mahindra Prime ` cr Q4FY22 Q4FY21 Q3FY22 FY22 FY21 Customer Assets* (` cr) NII 427 313 378 1,457 1,212 Other Income 76 67 118 331 220 NII and Other Income 503 380 496 1,787 1,432 Profit Before Tax 416 248 337 1,180 720 Profit After Tax 313 184 254 886 535 NNPA (%) 1.7% 1.8% 2.1% 1.7% 1.8% CAR
Slide 26: Kotak Mahindra AMC & Trustee Co.
Kotak Mahindra AMC & Trustee Co. Average Assets Under Management (` cr) - Overall ` cr Q4FY22 Q4FY21 Q3FY22 FY22 FY21 Profit Before Tax 136 134 192 601 465 Profit After Tax 102 100 149 454 346 Notes Average Assets Under Management (` cr) - Equity Overall Market share on AAUM increased to 7.4% in Q
Slide 27: Assets Under Management and Relationship Value
Assets Under Management and Relationship Value 31st March, 2022 31st March, 2021 18% (Total: ` 382,504 cr) (Total: ` 323,762 cr) * Includes undrawn commitments, Relationship Value of Private Banking + Priority + Investment Advisory as wherever applicable on 31st Mar, 2022 ~ ` 641,000 cr (PY: ~ ` 382
Slide 28: Geographical presence
Geographical presence 3 Branches 1,700* [No./%] 12 North Branches distributed 517 / 30% 92 11 across various geographies 77 103 West East 1 529 / 31% 135 / 8% 99 71 5 24 1 South 519 / 31% 1 169 48 12 43 29 Branch Classification 2 20 351 94 7 107 189 95 34 No. of ATMs 2,705 27 * Does not include bran
Slide 29: Group Profile
GROUP PROFILE
Slide 30: The Journey So far…
The Journey So far… ∞ First International Ability to Identify and Capitalize on Opportunities Branch ∞ Microfinance 2019 2013 ARC ∞ Digital Bank - 811 BANK ∞ Kotak IDF 2020 2008 2008 ∞ Digital 2017 2011 Video Life Insurance* KYC 2003 2002 Auto Finance 2000 2013 2004 2006 2014 2010 Alternate ∞ ING Vy
Slide 31: Diversified and integrated financial services
Kotak – Diversified and integrated financial services Kotak Mahindra Bank Commercial Bank & Parent Company Kotak Mahindra Kotak Mahindra Kotak Investment Kotak Mahindra Capital Kotak Securities Prime Investments Advisors Company ∞ Car Finance ∞ Investments ∞ Alternate Assets ∞ Investment Banking ∞ S
Slide 32: Present Across the Entire Value Chain
Present Across the Entire Value Chain Platform with Wide Product Portfolio Wholesale Banking Commercial Banking Consumer Banking Other Financial Services ∞ Corporate Loans ∞ Agriculture Finance ∞ Branch Banking ∞ Wealth Management ∞ Trade Finance ∞ Tractor Finance ∞ 811 ∞ Car and 2W Loans ∞ Business
Slide 33: Our Strengths
Our Strengths An integrated ∞ Balance Sheet, Market & Knowledge driven businesses encompassing all customer & geographic segments financial services conglomerate with a ∞ Wide spectrum of financial products and services that help to provide balance in market cycles, hedge against downturns in divers
Slide 34: Our Strategy
Our Strategy Keeping Technology at Leadership in digital Customer Centricity the Core capabilities Keep customer at the core of the Investing in technology (both business in order to provide a positive Continue journey on best in class infrastructure and applications), with experience and build long
Slide 35: The Path of Leadership
The Path of Leadership Attract & Retain Talent - High degree of stability within the Risks Management kotak leadership team, with an Strong Capital Position average tenure of 20+ years with the - Extensive on-the-ground presence Group - Capital adequacy amongst the and superior sponsor / CXO highest
Slide 36: Strong and Committed Leadership Team
Strong and Committed Leadership Team Senior Leadership Team with Long Vintage Dipak Gupta Gaurang Shah KVS Manian D Kannan Shanti Jt. MD WTD WTD Ekambaram 30 Years 25 Years 27 Years 30 Years 31 Years Compliance, IT, HR & Credit, ARD, Asset Corporate, Institutional Marketing, Digital, Mgmt, Alternate
Slide 37: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement with respect to the purchase or sale of any security of Kotak Mahindra Bank Limited (the “Bank”) and no part of it shall form the basis of or be relied upon in connection wit