Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q2 FY2014 Earnings Presentation
40 slides from Kotak Mahindra Bank's earnings presentation, Oct 24, 2013
Slide 1: Investor Presentation Q2FY14
Investor Presentation Q2FY14 1 Oct 24, 2013
Slide 2: Journey So Far
Journey So Far…….. Anchor Investment in ACE ARC Alternate Assets BANK KS Life Insurance Mutual 502nd 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 Sep 30, 2013 Banking 502 Car Finance 67 Life Insurance 206 Securities 1,286 Mutual Fund 79 Total 2,140 International offices situated in Abu Dhabi, Dubai, London, Mauritius, New York and Singapore 4
Slide 5: Kotak Bank - Standalone Highlights
Kotak Bank - Standalone Highlights PAT RoA Loans* NIM ` 353 cr ` 50,609 cr 4.9% 1.7% (1.6%) (` 280 cr) (` 45,443 cr) (4.6%) up 26% yoy up 11% yoy Restructured Net CASA Loans- CAR# standard 18.1% (15.4%) NPA ` 15,393 cr ` 45 cr – 0.09% 0.96% (0.75%) Tier 1 (` 12,321 cr) (` 5 cr) 16.9% (13.9%) up 25%
Slide 6: Consolidated Highlights
Consolidated Highlights Book PAT Networth RoA Value (per share) ` 583 cr ` 17,868 cr 2.0% (2.0%) ` 232.6 (` 502 cr) (` 13,943 cr) (` 187.6) up 16% yoy Total NIM Loans* Assets Net ` 114,631 cr 4.9% (4.6%) ` 68,226 cr (` 61,255 cr) (` 102,258 cr) NPA up 11% yoy up 12% yoy 0.80% (0.63%) * Loans growth
Slide 7: Consolidated PAT
Consolidated PAT ` cr FY03 FY07 FY08 FY09 FY10 FY11 FY12 FY13 Kotak Mahindra Bank 45 141 294 276 561 818 1,085 1,361 Kotak Mahindra Prime 11 57 101 157 166 318 385 431 Kotak Securities 24 256 409 107 260 182 126 114 * Kotak Mahindra Capital Company 31 68 115 13 24 52 6 17 Kotak Mahindra Old Mutual L
Slide 8: Consolidated PAT – Cont'd
Consolidated PAT – Cont‟d ` cr FY13 Q1FY14 Q2FY13 Q2FY14 Kotak Mahindra Bank 1,361 403 280 353 Kotak Mahindra Prime 431 117 114 125 Kotak Securities 114 31 40 40 Kotak Mahindra Capital Company 17 4 4 (2) Kotak Mahindra Old Mutual Life Insurance 190 71 47 44 Kotak Mahindra AMC & Trustee Co 12 7 (5) 1
Slide 9: Entity Wise Networth
Entity Wise Networth Mar 31, June 30, Sep 30, Sep 30, ` cr 2013 2013 2012 2013 Kotak Mahindra Bank 9,447 11,165 8,597 11,553 Kotak Mahindra Prime 2,352 2,469 2,128 2,593 Kotak Securities 1,934 1,965 1,883 2,005 Kotak Mahindra Capital Company 389* 392 505 391 Kotak Mahindra Old Mutual Life Insurance
Slide 10: Consolidated Profit (PBT) Mix
Consolidated Profit (PBT) Mix PBT 151 773 1,424 1,033 1,883 2,274 2,673 3,136 1,381 1,815 `cr 6% 3% 3% 3% 2% 13% 14% 7% 5% 5% 7% 10% 4% 11% 8% 7% 8% 6% 2% 4% 2% 15% 18% 23% 58% 53% 59% 82% 85% 84% 85% 75% 67% 59% 68% 43% 37% -6% FY03 FY07 -7% FY08 FY09 FY10 FY11 FY12 FY13 H1FY13 H1FY14 -28% Financin
Slide 11: Bank Profit & Loss
Bank Profit & Loss ` cr FY13 Q1FY14 Q2FY13 Q2FY14 YoY Growth Net Interest Income 3,206 917 758 924 22% Other Income 1,161 462 251 297 18% Net Total Income 4,367 1,379 1,009 1,221 21% Employee Cost 1,051 301 243 265 9% Other Operating Expenses 1,159 299 284 350 23% Operating Expenditure 2,210 600 527
Slide 12: Bank Other Income
Bank Other Income ` cr FY13 Q1FY14 Q2FY13 Q2FY14 Fee and Services 799 229 190 212 Treasury Income 226 164 29 70 ARD Buyout Income 118 62 29 13 Others 18 7 3 2 Total 1,161 462 251 297 12
Slide 13: MTM on Investments
MTM on Investments MTM accounting as per RBI circular One time option given to banks to transfer SLR investments from AFS / HFT to HTM at valuation date of 15th July, 2013 Bank did not transfer any security to HTM category as permitted by the circular The Bank‟s total HTM securities at 30th Se
Slide 14: Bank Segmental Performance
Bank Segmental Performance ` cr FY13 Q1FY14 Q2FY13 Q2FY14 Corporate/Wholesale Banking 1,211 288 296 307 Retail Banking 614 180 121 180 Treasury & BMU* 146 139 (6) 47 Unallocated Income 1 3 - - Total 1,972 610 411 534 * Balance Sheet Management Unit 14
Slide 15: Bank Advances & Investments
Bank Advances & Investments Mar 31, June 30, Sep 30, Sep 30, ` cr YoY Growth 2013 2013 2012 2013 Corporate Banking 12,291 14,849 13,868 14,759 6% Commercial Vehicles & Construction Equipment 7,805 7,508 8,183 6,781 (17%) Agriculture Division 8,356 7,841 6,419 7,910 23% Business Banking 5,216 5,186 4
Slide 16: Bank Balance Sheet
Bank Balance Sheet ` cr Mar 31, 2013 June 30, 2013 Sep 30, 2012 Sep 30, 2013 YoY Growth Net Worth 9,447 11,165 8,597 11,553 34% Deposits 51,029 52,454 45,463 52,642 16% CA 7,650 7,075 6,395 7,008 10% SA 7,268 8,057 5,926 8,385 42% Certificate of Deposit 8,172 7,789 7,031 4,536 (35%) Term Deposit Oth
Slide 17: Bank Key Ratios
Bank Key Ratios CAR & Tier I (%) – Basel III NPA (%) ^ including unaudited profits For Mar 13 and Sep 12 as per Basel II 1.95% 1.97% 1.55% 1.61% 18.8% 19.4% 16.0% 16.4% 0.98% 17.5% 18.1% 0.64% 14.7% 14.9% 0.96% 0.75% Mar-13 Jun-13^ Sep-12^ Sep-13^ Mar-13 Jun-13 Sep-12 Sep-13 CAR % Tier I (%) Gross N
Slide 18: Consumer Banking Liabilities
Consumer Banking Liabilities Crossed 500 branches and 1,000 ATMs during the quarter Plan to reach 600 branches by March 14 No of Branches / ATM‟s 1,004 Plan to double branches 961 500 967 within three years 1,000 848 866 450 400 Savings balances increased 800 350 42% yoy 300 600 502 250 Adde
Slide 19: Consumer Banking Assets – Bank
Consumer Banking Assets – Bank Mar 31, June 30, Sep 30, Sep 30, YoY 2013 2013 2012 2013 Growth Mortgage Loans 74% 74% 78% 73% 17% Small Business & 20% 20% 16% 20% 59% Personal Loans Others 6% 6% 6% 7% 70% Total Consumer 14,551 14,899 12,257 15,556 27% Banking Focus on SENP and cross sell to bank b
Slide 20: Commercial Banking Assets – Bank
Commercial Banking Assets – Bank Mar 31, June 30, Sep 30, Sep 30, YoY 2013 2013 2012 2013 Growth CECV 37% 37% 43% 34% (17%) Agri Division 39% 38% 33% 39% 23% Business Banking 24% 25% 24% 27% 16% Total Commercial 21,452 20,627 19,195 20,124 5% Banking Focus on Bharat continued with rollout of rural
Slide 21: Wholesale Banking - Bank
Wholesale Banking - Bank Increased presence in large corporate groups Funded & Non funded (` cr) Largely medium term finance & working capital 15,013 14,929 Stable growth in Trade 13,992 Credits & Export Finance 12,466 11,411 Traction in supply chain 10,484 financing 9,510 8,990 Traction i
Slide 22: PAT - Quarterly Trend
PAT - Quarterly Trend Bank (` cr) 353 280 260 195 126 2010 2011 2012 2013 2014 Consolidated (` cr) 583 502 433 364 300 2010 2011 2012 2013 2014 22 Q1 Q2 Q3 Q4
Slide 23: Consolidated Key Financials
Consolidated Key Financials Book Value Per Share (`) Networth (` cr) 224.5 232.6 17,228 17,868 204.3 15,250 187.6 13,943 Mar-13 Jun-13 Sep-12 Sep-13 Mar-13 Jun-13 Sep-12 Sep-13 Total Assets (` cr) Advances (` cr) 68,418 68,226 66,258 115,835 117,284 61,255 114,631 17,450 22,086 102,258 28,690 Mar-13
Slide 24: Consolidated Advances & Investments
Consolidated Advances & Investments Mar 31, June 30, Sep 30, Sep 30, YoY ` cr 2013 2013 2012 2013 Growth Corporate Banking 14,535 17,202 15,678 17,245 10% Commercial Vehicles & Construction Equipment 7,805 7,508 8,183 6,781 (17%) Agriculture Division 8,356 7,841 6,419 7,910 23% Business Banking 5,21
Slide 25: Kotak Mahindra Prime
Kotak Mahindra Prime ` cr FY13 Q1FY14 Q2FY13 Q2FY14 NII 727 205 176 220 Other income 186 48 49 45 Total Income 913 253 225 265 Profit before tax 641 179 170 191 Profit after tax 431 117 114 125 Mar 31, June 30, Sep 30, Sep 30, ` cr 2013 2013 2012 2013 Total Advances 17,022 17,093 15,173 16,952 Car A
Slide 26: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance Healthy solvency ratio Agency Business grew by 242 327 48% on regular premium 1,590 396 during H1 Share of Kotak bank for H1 500 127 stable at around 25% ( PY – 170 107 23%) 255 21 49 24 434 54 96 104 Protection Share maintained FY13 Q1FY14 Q2FY13 Q2FY14 at 35%
Slide 27: Kotak Securities
Kotak Securities Market ADV (` „000 cr) ADV (` cr) - KS 4,248 3,532 3,692 3,343 101 127 94 131 27 29 26 34 13 13 13 14 FY13 Q1FY14 Q2FY13 Q2FY14 FY13 Q1FY14 Q2FY13 Q2FY14 Cash Future Option ` cr FY13 Q1FY14 Q2FY13 Q2FY14 Total income 599 147 155 152 Profit before tax 189 48 59 60 Profit after tax 11
Slide 28: Kotak Mahindra Capital Co.
Kotak Mahindra Capital Co. Size Client Transactions during Q2FY14 (` cr) Rights Issue 700 Offer for Sale (OFS) 335 Offer for Sale (OFS) 260 Offer for Sale (OFS) 191 Rights Issue 110 Offer for Sale (OFS) 23 Hindustan Media Ventures Divestment of a major portion of Vijai Electricals‟ T&D business to T
Slide 29: Asset Under Management
Asset Under Management AUM ` 55,850 cr AUM ` 60,450 cr PMS PMS Insurance 2% Insurance 1% 17% 17% Domestic Offshore Domestic MF MF Debt Offshore Funds Debt 51% Funds 48% 16% 18% Alternate Alternate Asset Asset 10% Domestic 9% Domestic MF Equity MF Equity 5% 6% Sep 30, 2012 Sep 30, 2013 29
Slide 30: Kotak Mahindra AMC and Trustee Co.
Kotak Mahindra AMC and Trustee Co. Average Assets Under Management ` cr AAUM grew by 14% against industry rate of 8% in Q2 37,700 35,299 Equity flows positive against 31,261 30,866 negative for industry during H1 AAUM mix in favour of the long term debt contributed to the revenue growth Focu
Slide 31: Kotak Investment Advisors
Kotak Investment Advisors Realty Fund Private Equity Fund Corpus – ` 3,838 cr Corpus – ` 1,867 cr 55 Investments 39 Investments Infra Fund Corpus – ` 557 cr ` cr FY13 Q1FY14 Q2FY13 Q2FY14 Total income 85 22 22 20 Profit before tax 43 1 12 7 Profit after tax 31 1 9 4 31
Slide 32: Bank Awards and Recognition
Bank Awards 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 Best Private Bank by Finance Asia Country Awards for Achievement 2013 Kotak Mahindra Bank has made it once again in the list of the prestigious Forbes Asi
Slide 33: Bank Awards and Recognition
Bank Awards and Recognition Kotak Mahindra Bank‟s 6% campaign featuring Subbu won the Silver Effie - a prestigious advertising effectiveness award in the financial services category Best Local Cash Management Bank In India, as voted by corporates for Small companies (turnover < US$ 100 Mn) by Asiamo
Slide 34: Awards and Recognition
Awards and Recognition Asiamoney Brokers Poll 2012 Euromoney Best Local Brokerage Awards for Excellence Among all domestic and foreign brokerages, ranked: Best M&A House in India #2 for Best Overall Country Research 2013 Best Investment Manager in India #2 for Best Execution #2 for Most Independent
Slide 35: 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 36: 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 37: 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 38: 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 39: 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 40: 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
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