Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — FY2014 Earnings Presentation
43 slides from Kotak Mahindra Bank's earnings presentation, Apr 30, 2014
Slide 1: Investor Presentation FY14
Investor Presentation FY14 1 Apr 30, 2014
Slide 2: Journey So Far
Journey So Far…….. Anchor Investment in ACE ARC Alternate Assets BANK KS Life Insurance Mutual 605th Branch & Fund Celebrating 28th Year of Investment Banking success IPO Auto Finance Bill Discounting 1985 1990 1992 1995 1998 2000 2001 2003 2004 2008 2010 2012 2013 2
Slide 3: Group Structure
Group Structure Kotak Mahindra Bank • Commercial Bank & Holding Company Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Capital Kotak Securities Trustee Old Mutual Life Investments Prime AMC Pension Fund Company Company Insurance * • Investmen
Slide 4: Geographical Presence
Geographical Presence Wide National Footprint ….. ….. With Multiple Points of Presence Business Mar 31, 2014 Banking 605 Car Finance 69 Life Insurance 205 Securities 1,157 Mutual Fund 79 Total 2,115 International offices situated in Abu Dhabi, Dubai, London, Mauritius, New York and Singapore 4
Slide 5: Consolidated Highlights – FY14
Consolidated Highlights – FY14 Book PAT Networth RoA Value (per share) ` 2,465 cr ` 19,076 cr 2.1% (2.1%) ` 247.6 (` 2,188 cr) (` 15,250 cr) (` 204.3) Total NIM Loans Assets Net ` 122,237 cr 4.97% (4.70%) ` 71,693 cr (` 66,258 cr) (` 115,835 cr) NPA 0.88% (0.55%) Figures in brackets are FY13 numbers
Slide 6: Consolidated Key Financials
Consolidated Key Financials Advances (` cr) Networth (` cr) 71,693 19,076 66,258 15,250 53,144 12,901 41,242 10,963 21,985 5,824 3,034 1,055 Mar-03 Mar-08 Mar-11 Mar-12 Mar-13 Mar-14 Mar-03 Mar-08 Mar-11 Mar-12 Mar-13 Mar-14 Total Assets (` cr) Market Cap (` cr) 60,165 122,237 115,835 48,754 92,349
Slide 7: Consolidated Key Financials
Consolidated Key Financials NII* (` cr) & NIM* (%) PAT (` cr) * Of the lending activities 4,715 7.0 5,000 2,465 6.5 4,021 6.0 4,000 2,188 6.0 3,218 1,832 5.5 2,680 1,567 5.0 3,000 4.8 5.0 1,725 5.2 991 4.5 4.97 2,000 4.7 4.0 1,000 3.5 205 73 3.0 - FY03 FY08 FY11 FY12 FY13 FY14 FY03 FY08 FY11 FY12 FY
Slide 8: Consolidated PAT
Consolidated PAT ` cr FY03 FY08 FY11 FY12 FY13 FY14 Kotak Mahindra Bank 45 294 818 1,085 1,361 1,503 Kotak Mahindra Prime 11 101 318 385 431 491 Kotak Securities 24 409 182 126 114 * 160 Kotak Mahindra Capital Company 31 115 52 6 17 14 Kotak Mahindra Old Mutual Life Insurance (42) (72) 101 203 190 2
Slide 9: Consolidated PAT
Consolidated PAT ` cr Q3FY14 Q4FY13 Q4FY14 Kotak Mahindra Bank 340 436 407 Kotak Mahindra Prime 123 119 126 Kotak Securities 46 13* 44 Kotak Mahindra Capital Company 7 4 5 Kotak Mahindra Old Mutual Life Insurance 60 58 65 Kotak Mahindra AMC & Trustee Co 12 2 4 International subsidiaries 9 (1) 6 Kota
Slide 10: Consolidated Profit (PBT) Mix
Consolidated Profit (PBT) Mix 4% 8% 10% 10% 10% 8% 7% 6% 15% 53% 58% 82% 85% 84% 75% 68% 43% FY03-26% FY08 FY11 FY12 FY13 FY14 Financing Capital Market Life Insurance & Asset Management 10
Slide 11: Consolidated Profit and Loss
Consolidated Profit and Loss ` cr FY03 FY08 FY11 FY12 FY13 FY14 Net Interest Income 246 1725 3,305 3,928 4,813 5,674 Other Income 279 4198 5,090 4,544 5,113 5,259 Net Total Income 525 5,923 8,395 8,472 9,926 10,933 Employee Cost 104 1,198 1,522 1,602 1,774 1,915 Other Operating Expenses 255 2,893 4,
Slide 12: Consolidated Balance Sheet
Consolidated Balance Sheet Liabilities ` cr Mar-03 Mar-08 Mar-11 Mar-12 Mar-13 Ma-14 Capital 59 345 368 370 373 385 Reserves and Surplus 996 5,479 10,595 12,531 14,877 18,691 Policyholders‟ Funds 27 2,842 8,145 9,012 10,077 11,015 Deposits 203 13,692 27,313 36,461 49,389 56,930 Borrowings 2,680 14,5
Slide 13: Consolidated Advances and Investments
Consolidated Advances and Investments ` cr Dec 31, 2013 Mar 31, 2013 Mar 31, 2014 YoY Growth Corporate Banking 19,426 14,535 17,319 19% CV/CE 6,005 7,805 5,441 (30%) Agriculture Division 9,023 8,356 10,468 25% Business Banking 5,246 5,217 5,388 3% Auto loans 13,022 12,750 13,223 4% Home Loans and LA
Slide 14: Entity wise Networth
Entity wise Networth ` cr Dec 31, 2013 Mar 31, 2013 Mar 31, 2014 Kotak Mahindra Bank 11,896 9,447 12,275 Kotak Mahindra Prime 2,717 2,352 2,843 Kotak Securities 2,051 1,934 2,094 Kotak Mahindra Capital Company 397 389 403 Kotak Mahindra Old Mutual Life Insurance 977 803 1,042 Kotak Mahindra AMC & Tr
Slide 15: Integrated Financial Services
Integrated Financial Services Banking Asset Life Insurance Management Capital Markets 15
Slide 16: Kotak Bank - Standalone Highlights – FY14
Kotak Bank - Standalone Highlights – FY14 PAT RoA Loans NIM ` 1,503 cr ` 53,028 cr 4.90% 1.8% (1.8%) (` 1,361 cr) (` 48,469 cr) (4.65%) Restructured Net CASA Loans- CAR# standard 18.8% (16.0%) NPA ` 18,828 cr ` 10 cr – 0.02% 1.08% (0.64%) Tier 1 (` 14,918 cr) (` 8 cr) 17.8% (14.7%) # As per Basel II
Slide 17: Bank Profit & Loss
Bank Profit & Loss ` cr Q3FY14 Q4FY13 Q4FY14 FY13 FY14 Net Interest Income 913 903 967 3,206 3,720 Other Income 300 364 340 1,161 1,400 Net Total Income 1,213 1,267 1,307 4,367 5,120 Employee Cost 277 288 316 1,051 1,159 Other Operating Expenses 351 326 384 1,159 1,384 Operating Expenditure 628 614
Slide 18: Bank Other Income
Bank Other Income ` cr Q3FY14 Q4FY13 Q4FY14 FY13 FY14 Fee and Services 226 232 276 799 942 Treasury Income * 53 81 12 226 299 ARD Buyout Income 18 47 46 118 141 Others 3 4 6 18 18 Total 300 364 340 1,161 1,400 * Does not include provisions 18
Slide 19: MTM on Investments
MTM on Investments MTM accounting as per RBI circular In terms of RBI circular, the Bank had opted to recognise MTM losses in the financial year and did not transfer any security to HTM The Bank has recognised net depreciation on HFT/AFS portfolio aggregating to ` 175.08 cr, including depreciati
Slide 20: Bank Segmental Performance
Bank Segmental Performance As per RBI Q3FY14 Q4FY13 Q4FY14 FY13 FY14 ` cr Corporate/Wholesale Banking 326 353 380 1,211 1,301 Retail Banking 207 201 226 614 793 Treasury & BMU * (18) 62 7 146 176 Unallocated Income - - - 1 3 Total 515 616 613 1,972 2,273 * Balance Sheet Management Unit 20
Slide 21: Bank Advances & Investments
Bank Advances & Investments ` cr Dec 31, 2013 Mar 31, 2013 Mar 31, 2014 YoY Growth Corporate Banking 16,621 12,291 14,377 17% CV/CE 6,005 7,805 5,441 (30%) Agriculture Division 9,023 8,356 10,468 25% Business Banking 5,246 5,216 5,388 3% Home Loans and LAP 11,454 10,727 12,100 13% Small Business & P
Slide 22: Bank Balance Sheet
Bank Balance Sheet ` cr Dec 31, 2013 Mar 31, 2013 Mar 31, 2014 YoY Growth Net Worth 11,896 9,447 12,275 30% Deposits 54,671 51,029 59,072 16% CA 7,155 7,650 8,741 14% SA 9,106 7,268 10,087 39% Certificate of Deposit 5,958 8,172 5,726 (30%) Term Deposit Others 32,452 27,939 34,518 24% Borrowings 13,6
Slide 23: Bank Key Ratios
Bank Key Ratios CAR & Tier I (%) Savings Account (` cr & % of deposits) FY14 as per BASEL III 10,087 2,471 3,331 5,050 7,268 19.9% 17.1% 18.4% 17.5% 18.8% 16.0% 14.2% 13.1% 18.0% 17.8% 11.4% 15.4% 15.7% 14.7% 10.3% FY10 FY11 FY12 FY13 FY14 CAR (%) Tier I (%) FY10 FY11 FY12 FY13 FY14 RoA (%) Asset Qu
Slide 24: Consumer Banking Liabilities
Consumer Banking Liabilities Savings Bank Deposits cross ` 10,000 cr Plan to reach 1,000 No of Branches / ATM‟s branches by calendar 2016 1,103 961 500 Average cost of savings 1000 848 450 deposit 5.5% 400 710 800 350 Savings balances increased 605 300 39% yoy 600 492 250 438 200 TD sweep to
Slide 25: Consumer Banking Assets - Bank
Consumer Banking Assets - Bank Dec 31, Mar 31, Mar 31, YoY 2013 2013 2014 Growth Home Loans and LAP 11,449 10,727 12,099 13% Small Business & 3,161 2,897 3,404 17% Personal Loans Others 1,285 927 1,391 50% Total Consumer 15,895 14,551 16,894 16% Banking Focus on SENP and cross sell to bank branch
Slide 26: Commercial Banking Assets - Bank
Commercial Banking Assets - Bank Dec 31, Mar 31, Mar 31, YoY 2013 2013 2014 Growth CV/CE 6,004 7,805 5,441 (30%) Agri Division 9,023 8,356 10,468 25% Business Banking 5,246 5,215 5,388 3% Others 177 76 270 - Agri Division Total Commercial 49% 20,450 21,452 21,567 1% Banking Focus on Bharat continu
Slide 27: Wholesale Banking - Bank
Wholesale Banking - Bank Increased presence in large corporate groups Funded & Non funded (` cr) Largely medium term finance & working capital 16,804 Stable growth in Trade 14,567 Credits & Export Finance 12,466 11,166 10,963 Traction in supply chain 9,510 financing Traction in Transaction
Slide 28: Kotak Mahindra Prime
Kotak Mahindra Prime ` cr Q3FY14 Q4FY13 Q4FY14 FY13 FY14 NII 215 199 240 727 880 Other income 45 41 43 186 181 Total Income 260 240 283 913 1061 Profit before tax 190 174 192 641 752 Profit after tax 123 119 126 431 491 Dec 31, Mar 31, Mar 31, ` cr 2013 2013 2014 Total Advances 16,858 17,022 17,371
Slide 29: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance Premium (` cr) 2.6% Growth on Individual Regular Premium against Pvt Industry De --growth of 3.1% Group Business grew by 26% 1,590 1,429 Agency‟s Regular Business grew by 32% On APE (Single @ 1/10th) Basis, Share of 500 629 Kotak Bank for FY14 is at 36% ( PY – 3
Slide 30: Kotak Securities
Kotak Securities Market ADV (` „000 cr) ADV (` cr) - KS 3,814 3,946 3,903 3,720 3,532 112 116 122 111 101 33 28 33 27 32 13 14 14 13 13 Q3FY14 Q4FY13 Q4FY14 FY13 FY14 Cash Future Option Q3FY14 Q4FY13 Q4FY14 FY13 FY14 ` cr Q3FY14 Q4FY13 Q4FY14 FY13 FY14 Total income 168 163 160 599 627 Profit before
Slide 31: Kotak Mahindra Capital Co.
Kotak Mahindra Capital Co. Client (Equity) Transactions Size (` cr) Advisor to the committee of Independent Directors of Glaxo Smithkline Pharmaceuticals Limited for the voluntary Open Offer made by Glaxo 6,389 Smithkline Plc. Indian Railway Finance Corporation Limited Bond Issue -Tranche I & II 5,8
Slide 32: Asset Under Management
Asset Under Management AUM ` 55,243 cr AUM ` 56,564 cr PMS PMS Insurance 2% Insurance 1% 19% 20% Domestic Domestic MF Debt Offshore MF Debt Offshore 45% Funds 48% Funds 18% 18% Alternate Alternate Asset Asset Domestic Domestic 10% MF Equity 8% MF Equity 6% 5% Mar 31, 2013 Mar 31, 2014 32
Slide 33: Kotak Mahindra AMC and Trustee Co.
Kotak Mahindra AMC and Trustee Co. Average Assets Under Management ` cr KMMF AAUM growth marginally better than that of industry AAUM 36,228 35,945 35,689 for the financial year 33,502 31,261 AAUM mix in favour of the long term debt For the full year the industry equity Net sales continued to
Slide 34: Kotak Investment Advisors
Kotak Investment Advisors RE PE Infra Corpus ` 3,443 cr Corpus ` 1,741 cr Corpus ` 533 cr 55 Investments 41 Investments Total Corpus ` 5,717 cr Kotak Realty Fund closed its second international real estate fund, raising commitments of US$ 400 million. In Apr-14, the aggregate Capital commitments of
Slide 35: Bank Award and Recognition
Bank Award and Recognition Kotak Mahindra Bank‟s Board has been adjudged as one of the Best Managed Board in the Aon Hewitt-Mint study of 2012 IR Global Ranking – one of the top 5 Best Ranked Companies for Corporate Governance Practices Kotak Mahindra Annual Report 2012 – 2013 won the following awar
Slide 36: Bank Award and Recognition
Bank Award and Recognition Kotak Wealth Management Best Private Bank, India by World Finance Banking Awards, 2012 Outstanding Private Bank, South Asia - Private Banker International Global Wealth Awards 2012 Winner in multiple categories by Euromoney Private Banking Survey 2014: Second Best Family
Slide 37: Award and Recognition
Award and Recognition Asiamoney Brokers Poll 2013 Best Local Brokerage Eighth year in a row Among all domestic and foreign brokerages,ranked: #1 for Most Independent Research Brokerage Securities Advisory #2 for Best Overall Country Research #2 for Best Analyst Firm of the Year in India Best Investm
Slide 38: Kotak Uniqueness
Kotak Uniqueness The 5th Largest Bank by Market Capitalisation Integrated Financial ∞ Mature businesses across most financial services products Services Business ∞ Leading positions across Retail Banking, Private Banking, Insurance, Investment Banking, Model Institutional Brokerage and Asset Managem
Slide 39: The Path of Leadership
The Path of Leadership Strong Capital ∞ Capital adequacy amongst the highest in the Indian banking sector Position ∞ Provides the basis for growth ∞ Robust bank platform and retail distribution network ∞ Pan-India reach of over 2,100 retail distribution points across Banking, Broking, Mutual Fund Ag
Slide 40: Talent…Professional Entrepreneurs at work
Talent…Professional Entrepreneurs at work C. Jayaram Joined Kotak in 1990; First charge | Vice President, Kotak Mahindra Finance Current charge | Joint Managing Director, Kotak Mahindra Bank On being a professional entrepreneur | When I joined Kotak, I didn‟t really foresee that I would be run
Slide 41: Talent…Professional Entrepreneurs at work
Talent…Professional Entrepreneurs at work Jaimin Bhatt Joined Kotak in 1995; First charge | Proprietary Investments Current charge | President & Group CFO On being a professional entrepreneur | My initial work at Kotak was in the area of Proprietary Investments, where I worked with Narayan (S.
Slide 42: Talent…Professional Entrepreneurs at work
Talent…Professional Entrepreneurs at work Narayan S.A. Joined Kotak in 1992; First charge | Associate Vice President, Kotak Mahindra Finance (Operations); Current charge | President – Commercial Banking and Capital Markets, Kotak Mahindra Bank On being a professional entrepreneur | In 1996, br
Slide 43: 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