Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q1 FY2011 Earnings Presentation
31 slides from Kotak Mahindra Bank's earnings presentation, 2010
Slide 1: Group Overview 2010
Group Overview 2010 1
Slide 2: Table of Content
Table of Content Kotak Mahindra Section I Financial Summary Section II Overview of Kotak Group Businesses Section III 2
Slide 3: Kotak Mahindra
Kotak Mahindra 3
Slide 4: Vision Statement
Vision Statement World class financial services brand Most trusted financial services institution Most preferred employer in financial services Value creation not size alone 4
Slide 5: Journey so far…
Journey so far… 1985 2003 Kotak Mahindra KMFL converted to a Finance (KMFL) Bank – 1st Indian established Company to convert into a Bank 2010 Celebrating 25th Year 5
Slide 6: Geographical Presence
Geographical Presence Wide National Footprint… …with Multiple Points of Presence Branch Business Jun 10 Banking 262 Securities 1,210 Life Insurance 214 Mutual Fund & Others 140 Total 1,826 ~7 mn customer accounts ~20,000 employees 6
Slide 7: Financial Summary
Financial Summary 7
Slide 8: Group Highlights – Q1FY11
Group Highlights – Q1FY11 Consolidated PAT up 27% to Rs 3,277 mn financing businesses share, a significant portion Consolidated advances up 42% to Rs 330 bn NIM at 5.7% Consolidated Capital Adequacy 16.9% Asset managed / advised by the Group at Rs 480 bn Sub-division of shares to Rs 5 per share Pref
Slide 9: Consolidated – Profit Mix
Consolidated – Profit Mix PBT Mix 8% 13% 14% 9% 19% 2% 4% 15% 0% 18% 23% 53% 34% 77% 67% 59% 48% 43% -5% -1% FY08 FY09 FY10 Q1FY11 Q1FY10 Financing Capital Market Insurance Asset Management 9
Slide 10: Consolidated PAT
Consolidated PAT Rs mn FY07 FY08 FY09 FY10 Q1FY11 Q1FY10 Kotak Mahindra Bank 1,414 2,939 2,761 5,611 1,869 903 Kotak Mahindra Prime 573 1,006 1,570 1,664 760 189 Kotak Mahindra Capital Company 679 1,153 128 239 69 48 Kotak Securities 2,557 4,087 1,065 2,601 474 743 Kotak Mahindra Life Insurance (583
Slide 11: Consolidated - Ratios
Consolidated - Ratios FY08 FY09 FY10 Q1FY11 Q1FY10 NIM 5.6% 6.1% 6.3% 5.7% 6.1% Book value per share (Rs) 169 189 227 237 196 Return on average Net worth 22.3% 10.5% 18.2% 16.2% 15.5% Group CAR 20.2% 22.8% 19.3% 16.9% 20.1% CAR % (standalone) 18.7% 19.9% 18.4% 16.8% 18.6% Tier I (standalone) 14.5% 1
Slide 12: Bank Highlights – Q1FY11
Bank Highlights – Q1FY11 • Standalone Bank PAT up 107% to Rs 1,869 mn • NII up 24% to Rs 5,082 mn • Fee income at Rs 631 mn (Rs. 573 mn in Q1FY10) • Deposits up 38% at Rs. 241 bn; CASA at 28% • Advances up 35% to Rs 232 bn • Net NPAs* - 0.99% • Provision Coverage Ratio – 65% • Bank Capital Adequacy
Slide 13: Financial results – Bank Standalone
Financial results – Bank Standalone Rs mn FY09 FY10 Q1FY11 Q1FY10 Net Interest Income 15,185 18,581 5,082 4,090 Other Income 2,736 6,282 1,371 1,266 Net Total Income 17,921 24,864 6,453 5,356 Employee Cost 5,568 5,558 1,656 1,212 Other Operating Expenses 6,396 6,336 1,643 1,304 Operating Expenditure
Slide 14: Segment results – Bank Standalone
Segment results – Bank Standalone Rs mn FY09 FY10 Q1FY11 Q1FY10 Treasury & BMU* 1,293 3,675 859 885 Corporate/Wholesale Banking 2,253 3,855 1,049 570 Retail Banking (i) Lending 3,664 3,775 1,457 467 (ii) Branch Banking (2,253) (1,890) (576) (388) (iii) Credit Cards (698) (1,274) (197) (266) Retail B
Slide 15: Bank Awards & Recognition
Bank Awards & Recognition Awarded Hewitt Best Employers in India 2009 Best companies to work for - 2009 – by Great places to work Institute India Ranked No. 2 in India - companies with “Best Corporate Governance Practices” - IR Global Rankings 2010 Ranked no. 1 in eight categories including range of
Slide 16: Business Overview
Business Overview 16
Slide 17: Branch Banking
Branch Banking Number of Branches and ATMs Sweep Deposits - 9% of total deposits – not part of CASA Assets advised as on June 10 300 552 600 Rs 151 bn 492 250 500 Increased cross sell of asset 387 394 200 313 400 products Branches ATMs 150 300 Strong Bancassurance model 100 200 – around 28% of FYP 5
Slide 18: Financing
Financing Consolidated Advances Rs bn 330 297 225 233 220 156 104 71 Mar 05 Mar 06 Mar 07 Mar 08 Mar 09 Mar 10 Jun-10 Jun-09 Continuing growth momentum Grew 42% over Q1FY10 18
Slide 19: NPA peaking out
NPA peaking out 2.5% 2.1% 2.0% 1.5% 1.5% 1.7% 1.0% 1.0% 1.0% 1.2% 1.1% 0.5% 0.5% 0.5% 0.0% Q1 FY 09 Q2 FY 09 Q3 FY 09 Q4 FY 09 Q1 FY 10 Q2 FY 10 Q3 FY 10 Q4 FY 10 Q1 FY 11 Consol Net NPA Excl Stressed Assets 19
Slide 20: Retail Lending
Retail Lending Mar 09 – Rs 162 bn Jun 09 – Rs 156 bn Agri Agri CV/CE CV/CE 15% 14% 21% 21% Mortgage Mortgage 20% 21% Car Car financing at Car 29% PL 15% historical high PL 13% 31% Sharp drop in PL Focus on Cars, CVs, Mar 10 – Rs 194 bn Mortgages Jun 10 – Rs 205 bn Priority Sector Agri Agri 16% CV/CE
Slide 21: Wholesale Lending
Wholesale Lending Funded and Non Funded Rs bn 92 Funded grew 73% over FY09 Funded 72 Nonfunded Non - funded grew 70% over FY09 53 Added > 75 Customers in Q1-FY11 42 36 36 Continued focus on Trade Finance 31 20 Surge in Cash Management Volumes 12 18 Continued to strengthen our presence in debt capita
Slide 22: Life Insurance
Life Insurance 3,000 2,644 2,500 2,293 2,000 1,662 1,535 1,000 1,500 585 115 881 1,000 132 165 527 357 425 1,178 500 69 945 944 332 289 455 44 151 14 122 0 FY07 FY08 FY09 FY10 Q1 FY11 Q1 FY10 Branches 74 150 197 214 214 214 Capital 382 532 562 562 562 562 22 22
Slide 23: Life Insurance
Life Insurance Capital efficiency and expense management – Capital efficiency (premium/capital ratio) among highest in the industry – Operating expense ratio decreased to 23.8% from 27% in Q1 FY10 Solvency 2.7 as against requirement of 1.5 (FY10 – 2.8) Risk Premium is at 7.5% of new business AUM Rs
Slide 24: Broking
Broking Branches & Franchisee Average Daily Volumes Rs bn 1,210 53 1,113 41 41 877 39 843 783 33 Mar 08 Mar 09 Mar 10 Jun-10 Jun-09 Mar 08 Mar 09 Mar 10 Jun-10 Jun-09 Over 1 mn secondary market customers Best Broker in India 2009 Markets getting more fragmented Market volumes growth shift to F&O seg
Slide 25: Investment Banking
Investment Banking Size Client Transaction (USD mn) Indian Depository Receipts (IDRs) 518 Initial Public Offering 507 Qualified Institutional Placement (QIP) 115 Initial Public Offering 91 Monnet Power Private Placement of 12.5% stake to Blackstone Capital Company Limited 60 Partners (Mauritius) Lim
Slide 26: Asset Management
Asset Management Segment summary Over Rs 480 bn (June 2009 Rs. 458 bn) of assets managed / advised through mutual funds, insurance, portfolio management, alternate assets & offshore funds Q1FY11 – Rs 480 bn Q1FY10 – Rs 458 bn PMS PMS Insurance 5% Insurance 5% 14% 14% Dom estic Dom estic MF Debt MF D
Slide 27: Mutual Fund
Mutual Fund Asset Under Management – Rs. Bn Equity Debt Over 1 mn investors 214 212 191 82 branches 111 131 51 49 47 44 28 FY08 FY09 FY10 Q1FY11 Q1FY10 AMCTC PAT Rs. Mn 79 161 725 89 153 Lipper Fund Award 2010 for Kotak Bond Regular – „Best Fund over 10 years Bond Indian Rupee‟ Best Debt Fund House
Slide 28: International Subsidiaries
International Subsidiaries PAT Rs mn Business 818 India-centric 645 Investment Management & Advisory Debt - Sales & Distribution 243 231 163 Mar 08 Mar 09 Mar 10 Jun-10 Jun-09 Assets managed/advised: INR 70 bn Including SICAV funds & Shariah compliant funds Two Luxembourg-domiciled Indian equity fun
Slide 29: 25 years
25 years Rs mn FY87 FY92 FY03 FY10 Q1FY11 Consolidated 10 610 30,340 297,243 329,783 Advances Consolidated PAT 3 220 733 13,070 3,277 Consolidated Net 10 410 10,560 79,109 82,642 Worth Market Capitalisation - 342* 9,356 265,000 268,697 * at issue price Rs 100,000 invested at startup (1985) – now wor
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Slide 31: 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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