Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q1 FY2014 Earnings Presentation
41 slides from Kotak Mahindra Bank's earnings presentation, Jul 18, 2013
Slide 1: Investor Presentation Q1FY14
Investor Presentation Q1FY14 1 Jul 18, 2013
Slide 2: Journey So Far
Journey So Far…….. Anchor Investment in ACE ARC Alternate Assets BANK KS Life Insurance Mutual 445th 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 Jun 30, 2013 Banking 445 Car Finance 70 Life Insurance 199 Securities 1,311 Mutual Fund 79 Total 2,104 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 NIM Loans Restructured Loans- ` 403 cr 4.8% ` 50,539 cr (` 282 cr) (4.7%) (` 42,318 cr) standard up 43% yoy up 19% yoy ` 6 cr (` 9 cr) Net CAR#* RoA CASA NPA 18.2% (16.6%) 1.9% (1.7%) ` 15,132 cr 0.98% (0.80%) Tier 1 (` 11,054 cr) 16.9% (15.0%) up 37% yoy # As
Slide 6: Consolidated Highlights
Consolidated Highlights PAT Networth* Loans Net ` 627 cr (` 443 cr) ` 17,228 cr (` 13,430 cr) ` 68,418 cr (` 57,049 cr) NPA up 42% yoy up 20% yoy 0.80% (0.66%) NIM RoA Total Book Assets Value* 4.8% (4.7%) 2.2% (1.9%) ` 224.5 per ` 117,284 cr share (` 96,842 cr) (` 180.9 per up 21% yoy share) * Post
Slide 7: Consolidated Advances & Investments
Consolidated Advances & Investments YoY ` cr Mar 31, 2013 June 30, 2012 June 30, 2013 Growth Corporate Banking 14,535 14,383 17,202 20% Commercial Vehicles & Construction Equipment 7,805 8,015 7,508 (6%) Agriculture Division 8,356 6,108 7,841 28% Business Banking 5,217 3,840 5,188 35% Auto Loans 12,
Slide 8: Consolidated PAT
Consolidated PAT ` cr FY13 Q4FY13 Q1FY13 Q1FY14 Kotak Mahindra Bank 1,361 436 282 403 Kotak Mahindra Prime 431 119 94 117 Kotak Securities 114 * 13 * 23 31 Kotak Mahindra Capital Company 17 4 6 4 Kotak Mahindra Old Mutual Life Insurance 190 58 32 71 Kotak Mahindra AMC & Trustee Co 12 2 4 7 Internati
Slide 9: Entity Wise Net worth
Entity Wise Net worth ` cr Mar 31, 2013 June 30, 2012 June 30, 2013 Kotak Mahindra Bank 9,447 8,288 11,165 Kotak Mahindra Prime 2,352 2,015 2,469 Kotak Securities 1,934 1,843 1,965 Kotak Mahindra Capital Company 389 * 501 392 Kotak Mahindra Old Mutual Life Insurance 803 645 873 Kotak Mahindra AMC &
Slide 10: Consolidated Key Financials
Consolidated Key Financials Total Assets (` cr) Networth (` cr) 115,835 117,284 17,228 96,842 15,250 13,430 Mar-13 Jun-12 Jun-13 Mar-13 Jun-12 Jun-13 * Book Value per share (`) Market Cap (` cr) 224.5 55,411 204.3 48,754 180.9 43,871 Mar-13 Jun-12 Jun-13 * Mar-13 Jun-12 Jun-13 * Post capital issuanc
Slide 11: PAT - Quarterly Trend
PAT - Quarterly Trend Bank (` cr) 403 282 252 187 90 2010 2011 2012 2013 2014 Consolidated (` cr) 627 443 416 328 257 2010 2011 2012 2013 2014 11 Q1 Q2 Q3 Q4
Slide 12: Integrated Financial Services
Integrated Financial Services Financing Asset Life Insurance Management Capital Markets 12
Slide 13: Financing Business
Financing Business Advances (` cr) NPA (%) 68,418 66,258 57,049 1.58% 17,430 1.27% 1.34% 23,029 0.80% 27,959 0.66% 0.55% Mar-13 Jun-12 Jun-13 Mar-13 Jun-12 Jun-13 Consumer Commercial Corporate Gross NPA Net NPA Net Interest Income (` cr) & NIM (%) PAT (` cr) 7.0 4,021 4,500 1,825 6.5 4,000 6.0 3,500
Slide 14: Bank Key Ratios
Bank Key Ratios CAR & Tier I (%) NPA (%) ^ including unaudited profits – BASEL II 3.00% 2.50% 1.95% 18.8% 2.00% 16.0% 17.1% 1.55% 1.60% 1.50% 17.6% 14.7% 15.5% 1.00% 0.98% 0.50% 0.64% 0.80% 0.00% Mar-13 Jun-12^ Jun-13^ Mar-13 Jun-12 Jun-13 CAR % Tier I (%) Gross NPA (%) Net NPA (%) RoA (%) Asset Qua
Slide 15: Bank Profit & Loss
Bank Profit & Loss ` cr FY13 Q4FY13 Q1FY13 Q1FY14 YoY Growth Net Interest Income 3,206 903 721 917 27% Other Income 1,161 364 241 462 92% Net Total Income 4,367 1,267 962 1,379 43% Employee Cost 1,051 288 257 301 17% Other Operating Expenses 1,159 326 257 299 16% Operating Expenditure 2,210 614 514
Slide 16: Bank Other Income
Bank Other Income ` cr FY13 Q4FY13 Q1FY13 Q1FY14 Fee and Services 799 232 164 229 Treasury Income 226 81 53 164 ARD Buyout Income 118 47 19 62 Others 18 4 5 7 Total 1,161 364 241 462 16
Slide 17: NPA / Provisioning – Highlights
NPA / Provisioning – Highlights During the quarter, Bank acquired a portfolio of NPAs of less than two years as NPA. Entire amount of such purchase amounting to ` 23 cr is treated as NPA and fully provided for during the quarter Other Key Highlights The Bank has not participated in any CDR The
Slide 18: Bank Segmental Performance
Bank Segmental Performance ` cr FY13 Q4FY13 Q1FY13 Q1FY14 Corporate/Wholesale Banking 1,211 353 238 288 Retail Banking 614 201 133 180 Treasury & BMU* 146 62 42 139 Unallocated Income 1 - 1 3 Total 1,972 616 414 610 * Balance Sheet Management Unit 18
Slide 19: Bank Advances & Investments
Bank Advances & Investments ` cr Mar 31, 2013 June 30, 2012 June 30, 2013 YoY Growth Corporate Banking 12,291 12,841 14,849 16% Commercial Vehicles & Construction Equipment 7,805 8,015 7,508 (6%) Agriculture Division 8,356 6,108 7,841 28% Business Banking 5,216 3,837 5,186 35% Mortgage Loans 10,727
Slide 20: Bank Balance Sheet
Bank Balance Sheet ` cr Mar 31, 2013 June 30, 2012 June 30, 2013 YoY Growth Net Worth 9,447 8,288 11,165 35% Deposits 51,029 41,632 52,454 26% CA 7,650 5,514 7,075 28% SA 7,268 5,540 8,057 45% Certificate of Deposit 8,172 5,313 7,789 47% Term Deposit Others 27,939 25,265 29,533 17% Borrowings 20,411
Slide 21: Consumer Banking Liabilities
Consumer Banking Liabilities Plan to cross 550 branches by March 14 No of Branches / ATM’s Increased cross sell of asset products 1,000 961 967 500 848 858 900 450 Savings balances increased 800 400 45% yoy 700 350 600 300 Added ~ 1.5 lac customer accounts for the quarter 500 438 445 250 400
Slide 22: Advances - Bank
Advances - Bank Wholesale Consumer Banking Banking 30% 29% Commercial Banking 41% ` cr Mar 31, 2013 June 30, 2012 June 30, 2013 YoY Growth Wholesale Banking 12,466 12,933 15,013 16% Commercial Banking 21,452 17,973 20,627 15% Consumer Banking 14,551 11,412 14,899 31% Total Advances 48,469 42,318 50,
Slide 23: Consumer Banking Assets – Bank
Consumer Banking Assets – Bank Mar 31, June 30, June 30, YoY 2013 2012 2013 Growth Mortgage Loans 74% 80% 74% 20% Personal Loans 20% 15% 20% 70% Others 6% 5% 6% 77% Total Consumer 14,551 11,412 14,899 31% Banking Focus on SENP and cross sell to bank branch Mortgages growth in select territories
Slide 24: Commercial Banking Assets – Bank
Commercial Banking Assets – Bank Mar 31, June 30, June 30, YoY 2013 2012 2013 Growth CECV 37% 45% 37% (6%) Agri Division 39% 34% 38% 28% Business Banking 24% 21% 25% 35% Total Commercial 21,452 17,973 20,627 15% Banking Focus on Bharat (semi urban / rural areas) Deepening tractor finance Asset
Slide 25: Wholesale Banking - Bank
Wholesale Banking - Bank Funded & Non funded (` cr) Increased presence in large corporate groups Largely medium term 15,013 finance & working capital 12,466 12,933 Stable growth in Trade 10,484 Credits & Export Finance 9,510 9,121 Traction in supply chain financing Traction in Transaction
Slide 26: Kotak Mahindra Prime
Kotak Mahindra Prime ` cr FY13 Q4FY13 Q1FY13 Q1FY14 NII 727 199 156 205 Other income 186 41 44 48 Total Income 913 240 200 253 Profit before tax 641 174 139 179 Profit after tax 431 119 94 117 ` cr Mar 31, 2013 June 30, 2012 June 30, 2013 Total Advances 17,022 14,114 17,093 Car Advances 12,777 11,15
Slide 27: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance Healthy solvency ratio 517 242 1,590 Focus on long term savings 319 and protection 240 500 170 166 63 255 17 24 434 183 58 54 FY13 Q4FY13 Q1FY13 Q1FY14 Renewal Group Single Individual Regular FY13 Q4FY13 Q1FY13 Q1FY14 Capital (` cr) 562 562 562 562 Solvency ratio (%
Slide 28: Kotak Securities
Kotak Securities Market ADV (` ‘000 cr) ADV (` cr) - KS 3,814 3,692 3,532 101 95 3,300 111 127 27 28 27 29 13 14 12 13 FY13 Q4FY13 Q1FY13 Q1FY14 FY13 Q4FY13 Q1FY13 Q1FY14 Cash Future Option ` cr FY13 Q4FY13 Q1FY13 Q1FY14 Total income 599 163 132 147 Profit before tax 189# 37# 35 48 Profit after tax
Slide 29: Kotak Mahindra Capital Co.
Kotak Mahindra Capital Co. Size Client Transactions during Q1FY14 (` cr) Global alliance between Mahindra Group & CIE Automotive, Spain for auto components business and open offers for Mahindra Forgings 5,178 Limited and Mahindra Composites Limited Institutional Placement Programme (IPP) 106 Institu
Slide 30: Asset Under Management
Asset Under Management AUM ` 50,951 cr AUM ` 62,759 cr PMS PMS 2% 2% Insurance Insurance 20% 17% Offshore Domestic Domestic MF Debt Offshore Funds MF Debt 52% Funds 16% 41% 17% Alternate Alternate Asset Asset Domestic 8% Domestic 10% MF Equity MF Equity 7% 5% Jun 30, 2012 Jun 30, 2013 30
Slide 31: Kotak Mahindra AMC and Trustee Co.
Kotak Mahindra AMC and Trustee Co. Average Assets Under Management ` cr 8.4 lac folios 37,700 35,945 79 Branches 31,261 25,842 FY13 Q4FY13 Q1FY13 Q1FY14 ` cr # FY13 Q4FY13 Q1FY13 Q1FY14 Total income 129 37 28 37 Profit before tax 14 2 4 11 Profit after tax 12 2 4 7 Average AUM (` bn) 313 359 258
Slide 32: Kotak Investment Advisors
Kotak Investment Advisors Realty Fund Private Equity Fund Corpus – ` 2,705 cr Corpus – ` 1,858 cr 55 Investments 35 Investments Infra Fund Corpus – ` 529 cr ` cr FY13 Q4FY13 Q1FY13 Q1FY14 Total income 85 22 22 22 Profit before tax 43 11 11 1 Profit after tax 31 8 8 1 32
Slide 33: 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 2012 Kotak Mahindra Bank has made it once again in the list of the prestigious Forbes Asia’s Fab 50 Compa
Slide 34: 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 35: Awards and Recognition
Awards and Recognition Asiamoney Brokers Poll 2012 Businessworld India’s Best Local Brokerage Best Dealmakers 2012 Among all domestic and foreign brokerages, ranked: 2012: Deal Maker of the year - QIP #2 for Best Overall Country Research #2 for Best Execution 2012: Deal of the year for the M&M Best
Slide 36: 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 37: 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 38: 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 39: 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 40: 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 41: 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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