Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q3 FY2019 Earnings Presentation
37 slides from Kotak Mahindra Bank's earnings presentation, 2019
Slide 1: Investor Presentation Q3FY19
INVESTOR PRESENTATION Q3FY19
Slide 2: Standalone Highlights Q3FY19
Standalone Highlights Q3FY19 PAT NIM* LOANS NET NPA ` 1,291 cr 4.33% ` 196,432 cr 0.71% [` 1,053 cr] [4.27%] [` 159,071 cr] [1.09%] TOTAL CAR BRANCHES CASA ASSETS 18.1%# [18.7%] Tier I 1,453 ` 294,198 cr 17.6%# [1,375] 50.7% [` 248,646 cr] [46.7%] [18.0%] Figures in [brackets] are Q3FY18 numbers # A
Slide 3: Profit and Loss Account
Profit and Loss Account ` cr Q3FY19 Q3FY18 Q2FY19 FY18 Net Interest Income 2,939 2,394 2,689 9,532 Fee and Services 1,038 829 1,019 3,454 Others (74) 211 186 598 Other Income 964 1,040 1,205 4,052 Net Total Income 3,903 3,434 3,894 13,584 Employee Cost 837 734 745 2,930 Other Operating Expenses 1,12
Slide 4: Presentation in P&L of Investment Depreciation
Presentation in P& L of Investment Depreciation In accordance with RBI communication, provision for mark-to-market depreciation on AFS and HFT investments continue to be presented under Provisions & Contingencies ` cr (As reported) Q3FY19 Q3FY18 Q2FY19 FY18 Other Income 964 1,040 1,205 4,052 Net Tot
Slide 5: Segment Performance and Other Income
Segment Performance and Other Income Bank Segmental PBT As per RBI (` cr) Q3FY19 Q3FY18 Q2FY19 FY18 Corporate/Wholesale Banking 867 784 796 2,984 Retail Banking 446 391 520 1,511 Treasury, BMU* & 658 432 425 1,723 Corporate Centre Total 1,971 1,607 1,741 6,218 * Balance Sheet Management Unit Segment
Slide 6: Advances
Advances 31-Dec-18 (` 196,432 cr) Advances ` cr 31-Dec-18 31-Dec-17 30-Sep-18 Corporate Banking 62,972 49,961 58,072 CV/CE 17,999 13,251 17,048 Agriculture Division 23,742 20,550 22,425 Business Banking 18,012 18,017 18,575 Home Loans and LAP 38,305 30,944 36,064 Small Business, PL & 31,085 22,904 2
Slide 7: Asset Quality & Specific Sectors Exposure
Asset Quality & Specific Sectors Exposure Asset Quality ` cr 31-Dec-18 31-Dec-17 30-Sep-18 31-Mar-18 GNPA 4,129 3,715 4,033 3,825 NNPA 1,397 1,728 1,501 1,665 GNPA (%) 2.07% 2.31% 2.15% 2.22% NNPA (%) 0.71% 1.09% 0.81% 0.98% PCR (%) 66.2% 53.5% 62.8% 56.5% Specific Sectors as per Basel III Outstandi
Slide 8: Deposits
Deposits CASA (` cr) Highlights CASA 50.7% 46.7% 50.2% 50.8% % CASA and TDs below ` 5 cr constitute 80% of total deposits TDs below ` 1 cr were ` 53,620 cr (31st Dec, 2017: ` 42,027 cr) TD Sweep: 6.7% of total deposits Cost of SA for Q3FY19: 5.67% 1,453 branches as on 31st Dec, 2018 YoY %
Slide 9: Balance Sheet
Balance Sheet ` cr 31-Dec-18 31-Dec-17 30-Sep-18 Capital & Reserves and Surplus 41,426 36,297 40,103 Deposits 213,804 180,826 205,830 CA 31,745 25,927 30,796 SA 76,679 58,459 72,606 Term Deposits 105,380 96,440 102,428 Of which: TD Sweep 14,423 11,532 13,541 Borrowings 29,129 23,193 32,584 Other Lia
Slide 10: Digital Platforms
Digital Platforms Highest Rated Banking App in India (4.8 in Apple Store & 4.5 in Google Playstore) Kotak website rated one of the top amongst Financial Services. (Source: Accenture interactive study Report by Google) New Features Q3FY19 2 min online journey for selling Accident Insurance to 811 • R
Slide 11: Digital Payments
Digital Payments Highlights Netbanking Payment Gateway 38% Volume growth (Dec’18 vs Dec’17) Kotak amongst 3 Banks to perform a LIVE Demo of UPI 2.0 @ 16th August 2018 UPI 2.0 Launch ~31 Highest UPI transactions recorded in a single month in Launched Industry First UPI 2.0 Hackathon in collaboration
Slide 12: Digital Lending Business – Consumer
Digital Lending Business – Consumer Digital Processing Credit Card 1.4x YOY increase for digital card acquisition Home search feature with curated list of properties YOY increase for digital salaried personal loan disbursed across India 1.6x Personal Loan 35% Total digital contribution of salaried p
Slide 13: Digital Update – Subsidiaries
Digital Update – Subsidiaries Kotak Securities 37% growth YoY in 124% growth YoY in Mobile Total ADV Mobile Cash ADV Kotak Life Insurance Kotak General Insurance Individual Policies sourced 90% 64% 90% in Q3FY19 through Genie (Tablet based end to end sales solution) YoY growth in YoY growth in volum
Slide 14: Consolidated Highlights Q3FY19
Consolidated Highlights Q3FY19 PAT CAR LOANS BOOK VALUE 18.7%# PER EQ. [18.4%] SHARE ` 1,844 cr Tier I ` 232,756 cr ` 291.9 [` 1,624 cr] 18.3%# [` 195,652 cr] [` 255.3] [17.9%] NIM* CAPITAL & NET NPA TOTAL RESERVES ASSETS 4.26% ` 56,186 cr 0.67% ` 369,261 cr [4.23%] [` 48,621 cr] [0.94%] [` 319,806
Slide 15: Consolidated PAT
Consolidated PAT ` cr Q3FY19 Q3FY18 Q2FY19 FY18 Kotak Mahindra Bank 1,291 1,053 1,142 4,084 Kotak Mahindra Prime 139 148 157 590 Kotak Mahindra Investments 40 50 45 245 Kotak Securities 99 154 112 531 Kotak Mahindra Capital 3 36 14 65 Kotak Mahindra Life Insurance 125 97 127 413 Kotak AMC and TC 76
Slide 16: Entity wise Capital & Reserves and Surplus
Entity wise Capital & Reserves and Surplus ` cr 31-Dec-18 31-Dec-17 30-Sep-18 Kotak Mahindra Bank 41,426 36,297 40,103 Kotak Mahindra Prime 5,251 4,657 5,112 Kotak Mahindra Investments 1,516 1,187 1,476 Kotak Securities 3,867 3,393 3,768 Kotak Mahindra Capital 551 533 548 Kotak Mahindra Life Insuran
Slide 17: Consolidated Advances
Consolidated Advances 31-Dec-18 (` 232,756 cr) Consolidated Advances ` cr 31-Dec-18 31-Dec-17 30-Sep-18 Corporate Banking 72,355 58,183 67,319 CV/CE 17,999 13,251 17,048 Agriculture 23,742 20,550 22,425 Division Business Banking 18,012 18,017 18,575 Auto loans 20,225 20,059 20,783 Home Loans and 38,
Slide 18: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance New Business Premium (` cr) Highlights 890 831 824 3,404 ULIP Mix 9MFY19: 23% (9MFY18:35%) Individual renewal premium grew 33% over Q3FY18 against 28% for same period LY 13th Month persistency increased to 86.6% for H1FY19 (H1FY18: 84.4%) 61st month persistency
Slide 19: Kotak Securities
Kotak Securities Market ADV (` ‘000 cr) ADV (` cr) - KS 1,019 717 1,040 704 ` cr Q3FY19 Q3FY18 Q2FY19 FY18 Total Income 363 463 407 1,655 Profit Before Tax 149 231 169 796 Profit After Tax 99 154 112 531 Market Share* (%) (YTD) 2.9 2.0 2.5 1.9 *excluding BSE Derivative segment Market Share in Cash S
Slide 20: Assets Under Management
Assets Under Management Dec 31, 2018 Dec 31, 2017 11% AUM ` 203,222 cr AUM ` 182,879 cr 20
Slide 21: Kotak Mahindra AMC & Trustee Co.
Kotak Mahindra AMC & Trustee Co. Average Assets Under Management (` cr) - Overall Average Assets Under Management (` cr) - Equity ` cr Q3FY19 Q3FY18 Q2FY19 FY18 Highlights Equity AAUM market share rose to Profit Before Tax 115 57 79 170 4.05% in Q3FY19 (Q3FY18: 3.63%) Overall Market share on AAU
Slide 22: Kotak Mahindra Prime
Kotak Mahindra Prime Customer Assets* (` cr) & NNPA (%) ` cr Q3FY19 Q3FY18 Q2FY19 FY18 NII 274 286 266 1,115 Other Income 56 61 89 256 NII and Other Income 330 347 355 1,371 Profit Before Tax 213 226 238 902 Profit After Tax 139 148 157 590 CAR (%) (incl unaudited profits) 18.9 ROA (%) - annualised
Slide 23: Kotak Mahindra Investments
Kotak Mahindra Investments Customer Assets* (` cr) & NNPA (%) ` cr Q3FY19 Q3FY18 Q2FY19 FY18 NII 68 77 61 304 Other Income 12 16 24 122 NII and Other Income 78 93 85 426 Profit Before Tax 61 77 70 367 Profit After Tax 40 50 45 245 CAR (%) (incl unaudited profits) 20.2 ROA (%) - annualised 1.8 * Incl
Slide 24: Geographical Presence
Geographical Presence Branches 1,453 [No./%] 2 North 10 454/31% 77 9 58 West East 97 451/31% 82/6% 1 68 62 4 18 1 South 1 466/32% 139 45 9 20 36 Branch Classification 2 18 304 84 6 No of ATMs 107 160 81 2,270 32 24
Slide 25: Group Profile
GROUP PROFILE
Slide 26: The Journey So far…
The Journey So far… Acquired Acquired Bill Investment Mutual Alternate Scheme of BSS Discount Banking Fund Securities Assets Pinebridge MF Microfinance 1985 1991 1998 2001 2004 2014 2017 1990 1992 2000 2003 2008 2015 Auto IPO Life BANK ARC ING Vysya Finance Insurance Merger Kotak Mahindra General In
Slide 27: Kotak - Concentrated India; Diversified Financial Services
Kotak - Concentrated India; Diversified Financial Services KOTAK MAHINDRA BANK Commercial Bank & Holding Company Kotak Kotak Mahindra Kotak Investment Kotak Mahindra Mahindra Kotak Securities Investments Advisors Capital Company Prime ∞ Car Finance ∞ Investments ∞ Alternate Assets ∞ Investment ∞ Sto
Slide 28: Present Across the Entire Value Chain
Present Across the Entire Value Chain Platform with Wide Product Portfolio Corporate Banking Commercial Banking Consumer Banking Non-Banking ∞ Corporate Loans ∞ Agriculture Finance ∞ Auto Loans ∞ Mutual Funds ∞ Trade Finance ∞ Tractor Finance ∞ Home loans, LAP ∞ Alternate Assets ∞ Commercial Real Es
Slide 29: Kotak Uniqueness – Strengths
Kotak Uniqueness – Strengths An integrated Ability to Prudent risk Strong brand Strong and identify and management and governance diversified capitalise on capabilities leadership in culture with business opportunities various experienced model businesses management ∞ Balance sheet, ∞ Relative ∞ Gui
Slide 30: The Path of Leadership
The Path of Leadership Attract & Retain Talent - High degree of stability within Risks Management the management team, many Strong Capital Position have been with the Group for - Extensive on-the-ground over 15 years - Capital adequacy amongst the presence and superior highest in the Indian banking
Slide 31: Bank Awards & Recognition
Bank Awards & Recognition Kotak Wealth – Best Euromoney Awards for Excellence 2018 Private Bank - India’s Best Bank Indian Domestic 2018 - Best Bank in the Emerging Markets in the Euromoney Kotak Wealth Mgt- Best Regional Awards Performing Private Bank, Voice Bot (Keya) one of the India Banker’s Cho
Slide 32: Awards and Recognition
Awards and Recognition Asset Management The Asset Triple A Country Awards 2018 Early adopter of Analytics Machine conference 2018 2018 DMAI Asia Echo : Best M&A India – Tata Chemicals • Best Use of Direct Mail Diwali – US$400mn Sale of the urea Beejbox wali Kotak Mutual Fund business to Yara Interna
Slide 33: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work DIPAK GUPTA Joined Kotak in 1992; First charge | Senior Manager, Kotak Mahindra Finance Current charge | Joint Managing Director, Kotak Mahindra Bank On being a professional entrepreneur | I used to be an engineer and then a consultant. My first job a
Slide 34: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work D.KANNAN Joined Kotak in 1991; First charge | Assistant Manager, Kotak Mahindra Finance Current charge | President - Commercial Banking, Kotak Mahindra Bank On being a professional entrepreneur | Joined Kotak Mahindra Finance as Assistant Manger and w
Slide 35: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work JAIDEEP HANSRAJ Joined Kotak in 1993; First charge | Assistant Manager, Kotak Mahindra Finance Current charge |CEO – Wealth Management & Priority Banking, Kotak Mahindra Bank On being a professional entrepreneur My first job at Kotak was to garner lia
Slide 36: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work NARAYAN S.A. Joined Kotak in 1991; First charge | Associate Vice President, Kotak Mahindra Finance (Operations); Current charge | President – Group Treasury, Kotak Mahindra Bank On being a professional entrepreneur | In 1996, broking was largely seen
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
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