Axis Bank Limited · NSE:AXISBANK

Axis Bank — FY2012 Earnings Presentation

35 slides from Axis Bank's earnings presentation, April 2012

  1. Slide 1: FY 2011-12 Annual Results Investor Presentation

    FY 2011-12 Annual Results Investor Presentation

  2. Slide 2: Performance Highlights

    Performance Highlights Q4FY12 12M FY12 Net Profit 25% YOY 25% YOY Net Interest Income 26% YOY 22% YOY Fee Income 8% YOY 25% YOY Operating Revenue 18% YOY 20% YOY Operating Profit 12% YOY 16% YOY Net Interest Margin 3.55% 3.59% Cost of Funds 6.45% 6.28% 1

  3. Slide 3: Shareholder Returns

    Shareholder Returns FY07 FY08 FY09 FY10 FY11 FY12 552.00 1.68 1.68 1.67 21.84 21.22 19.93 19.89 20.13 1.44 462.77 395.99 1.24 16.09 1.10 284.50 245.14 120.50 Book Value per Share (`) Return on Equity (%) Return on Assets (%) 2

  4. Slide 4: Interpretation of Q4FY12 Performance

    Interpretation of Q4FY12 Performance • Growth in the Bank‟s core businesses – Total Net Advances grew 19% YOY to `1,69,760 crores – Total Investments grew 29% YOY to `93,192 crores – Total Assets grew 18% YOY to `2,85,628 crores – Fees grew 8% YOY to `1,327 crores – Share of demand deposits in total

  5. Slide 5: Profitability

    Profitability Sustained Growth: Robust Core Revenues Q4FY11 Q4FY12 FY11 FY12 Amounts in `Crores Amounts in `Crores 3,734 3,588 13,438 13,076 3,151 3,093 11,195 10,698 1,892 7,069 1,763 5,919 1,277 4,242 1,020 3,388 Net Profit Core Operating Core Net Profit Core Operating Core Operating Revenue Opera

  6. Slide 6: Consistent Net Profit Growth

    Consistent Net Profit Growth FY07 FY08 FY09 FY10 FY11 FY12 1,277 Amounts in ` Crores 1,102 1,020 942 920 891 742 765 735 656 562 582 532 501 403 361 330 307 228 212 175 185 121 142 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarterly Net Profits 5

  7. Slide 7: Net Interest Margin and Cost of Funds

    Net Interest Margin and Cost of Funds Net Interest Margin Cost of Funds 3.78% 3.75% 6.45% 6.34% 3.28% 6.13% 6.19% 3.55% 3.44% 5.56% Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 NIMs for the last 5 years FY08 3.47% FY09 3.33% FY10 3.75% FY11 3.65% FY12 3.59% 6

  8. Slide 8: Growing Net Interest Income

    Growing Net Interest Income Q4FY11 Q4FY12 FY11 FY12 Amounts in ` Crores Amounts in ` Crores 8,018 6,563 2,146 1,701  22% YOY  26% YOY NIIs for the last 5 years (` crore) FY08 2,585 FY09 3,686 FY10 5,004 FY11 6,563 FY12 8,018 5 year CAGR 40 % 7

  9. Slide 9: Growing Demand Deposits

    Growing Demand Deposits YOY Growth in Daily Average Demand Deposits and Total Deposits Deposit Q4FY12 FY12 Savings 20.16 20.43 Current 28.89 16.71 Total Demand Deposits 23.57 18.96 Total Deposits 21.85 24.49 Amounts in ` Crores 91,422 77,767 (42%) Demand Deposits  18% YOY (41%) 1,28,682 Term Deposi

  10. Slide 10: Fees

    Fees Q4FY11 Q4FY12 FY11 FY12 Amounts in ` Crores Amounts in ` Crores 4,727 1,327 1,231 3,790  8% YOY  25% YOY Fees for the last 5 years (` crore) FY08 1,495 FY09 2,447 FY10 2,925 FY11 3,790 FY12 4,727 5 year CAGR 40% 9

  11. Slide 11: Fee Income Composition

    Fee Income Composition Q4FY11 Q4FY12 438 442 Amounts in ` Crores 377 312 255 249 117 107 128 100 19 13 Large & Mid Treasury & DCM Agri & SME Business Banking Capital Markets Retail Business Corporate Credit Banking  1% YOY  2% YOY  17% YOY 20% YOY  32% YOY  21% YOY 1,708 FY11 FY12 1,315 Amount

  12. Slide 12: Trading Profits

    Trading Profits Trading Profits % of Operating Revenue Amounts in ` Crores 146 4% 58 2% Q4FY11 Q4FY12 Q4FY11 Q4FY12  152% YOY 497 362 4% 3% FY11 FY12 FY11 FY12  27 % YOY 11

  13. Slide 13: Stressed Assets and Net NPA (%)

    Stressed Assets and Net NPA (%) Net NPA as at year-end Gross NPAs Net NPAs Net NPA (%) FY08 0.36% Amount ` Crore 2,100 0.90% FY09 0.35% 1,915 FY10 0.36% 1,806 1,800 1,744 FY11 0.26% 0.75% 1,599 1,573 FY12 0.25% 1,500 0.60% Cumulative Restructured Assets: `3,060 crore (1.58% of gross customer assets)

  14. Slide 14: Business Overview

    BUSINESS OVERVIEW AXIS BANK AXIS BANK

  15. Slide 15: Network

    Network Increasing Reach 1,622 1,050 1,390 921 983 643 792 515 644 405 544 332 Branches + Extension Counters* Centres Covered 9,924 Branch Demographics (Domestic) Branches Extn. Counters 6,270 Metro 451 6 4,293 Urban 488 3 3,595 2,341 2,764 Semi-urban 515 - Rural 159 - Total 1,613 9 ATMs March 2007

  16. Slide 16: Large and Mid Corporate Banking

    Large and Mid Corporate Banking • Focus on quality of credit assets with emphasis on corporates having – Global competitive advantage in their businesses – Good corporate governance and management practices • Business Segments – Large Corporates – Infrastructure – Mid Corporates • Rigorous and regul

  17. Slide 17: Distribution of Ratings

    Distribution of Ratings (Large and Mid Corporate) 67% of corporate advances have rating of at least „A‟ as at Mar 2012 7% 8% 7% 6% 8% 24% 23% 19% 25% 26% AAA AA 40% 41% A 43% 42% 41% BBB <BBB or unrated 27% 30% 23% 23% 24% 2% 2% 3% 3% 3% Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 16

  18. Slide 18: SME and Agriculture Business

    SME and Agriculture Business 31st Mar'11 31st Mar'12 23,795 Amounts ` Crore 21,406 17,320 17,340 SME Advances Agricultural Advances  11% YOY SME Centres 26 32 Agri Clusters 69 85 • Specialised SME Centres for SME • Integrated network of branches, agriculture appraisals, sanctions and post-sanction

  19. Slide 19: Distribution of Ratings: SME

    Distribution of Ratings: SME 80% of SME advances have rating of at least „SME3‟ as at Mar 2012 5% 5% 5% 6% 5% 18% 20% 18% 18% 18% SME 1 SME 2 59% 55% 56% 55% 57% SME 3 SME 4 SME 5-8 12% 13% 12% 12% 11% 7% 8% 8% 9% 9% Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 18

  20. Slide 20: Industry-wise Distribution (Top 10)

    Industry-wise Distribution (Top 10) Outstanding as on 31 March 2012 (%)& Rank Sectors Non-fund Total Fund-based based 1. Financial Companies** 11.16 12.72 8.10 2. Power Generation & Distribution 10.30 4.66 21.42 3. Infrastructure Construction* 8.79 6.80 12.71 4. Engineering & Electronics 6.24 3.35 1

  21. Slide 21: Business Banking

    Business Banking Cash Management Services & Government Business 31st Mar'11 31st Mar'12 • Collection of Central Government taxes on behalf of CBDT and CBEC, including through 11,548 e-payments • Collection of State Government taxes on 8,465 behalf of 8 State Governments and UTs • Collections and pay

  22. Slide 22: Business Banking

    Business Banking Current Accounts Growth 31-Mar-11 31-Mar-12 31-Mar-11 31-Mar-12 Amount ` Crore Amount ` Crore 39,754 31,439 36,917 24,391 Period End Balance Daily Average Balance (Q4)  8% YOY  29% YOY • Wide range of products Current Account deposits (` Crore) for the last 5 years (as on 31st Mar

  23. Slide 23: Treasury

    Treasury Q4FY11 Q4FY12 128,855 Amount ` Crore 81,258 73 68 43 19 Forex Turnover SLR & Money Market FX & Derivatives Trading Trading  37% YOY  285% YOY  59% YOY FY11 FY12 289.0 504,945 Amount ` Crore 111 338,888 83 129 Forex Turnover SLR & Money Market FX & Derivatives Trading Trading  33% YOY 

  24. Slide 24: Debt Capital Markets

    Debt Capital Markets Q4FY11 Q4FY12 FY11 FY12 Amount ` Crore Amount ` Crore 31,832 112,988 83,025 13,382  138% YOY Placement & Syndications  36% YOY (Debentures / Bonds) • A dominant player in placement and syndication of debt issues • Ranked No.1 Debt Arranger by Bloomberg for calendar year ended

  25. Slide 25: Retail Deposits

    Retail Deposits Savings Deposits Savings & Retail Term Deposits Amount ` Crore Amount ` Crore 51,668 99,534 45,920 40,850 74,307 38,215 31-Mar-11 31-Mar-11 31-Mar-12 31-Mar-12 Period End Balance Daily average Period End Balance balance (Q4)  26% YOY  20% YOY  34% YOY Savings Bank deposits (` Cror

  26. Slide 26: Third Party Products Business

    Third Party Products Business Q4FY11 Q4FY12 FY11 FY12 Amount ` Crores Amount ` Crores 372 • Focus on cross-selling to 138 existing customers to generate fee income 103 • Third-party products sold include 228 mutual funds, insurance, on-line broking, portfolio management services (non-discretionary)

  27. Slide 27: Retail Assets

    Retail Assets 31st Mar'11 31st Mar'12 31st Mar'11 31st Mar'12 Amount ` Crores 1,695,665 37,570 1,514,935 • Retail Assets constitute 22% 27,759 of the bank‟s total advances, as compared to 19% as on 31st March 2011 • Growth driven through 98 Asset Sales Centres (ASCs) Portfolio Size No. of Accounts 

  28. Slide 28: Composition of Retail Assets

    Composition of Retail Assets Product-wise composition of Retail Assets portfolio (31st Mar‟12) Cards Non-Schematic 2% 4% Personal Loans 6% Auto loans 13% Housing Loans 75% 27

  29. Slide 29: Cards, Retail Forex & Remittances Business

    Cards, Retail Forex & Remittances Business Q4FY11 Q4FY12 FY11 FY12 Amounts in ` Crores Amounts in ` Crores 117 419 85 286 38% YOY  47% YOY Fee Income • Issuance – Over 7.79 lac Credit Cards in force till end March „12 – Travel Currency Cards in 12 currencies -USD, Euro, GBP, AUD, CAD, SGD, SEK, CH

  30. Slide 30: ATM Channel Migration

    ATM Channel Migration Mar'11 Mar'12 125 11,864 533 100 8,538 373 Intl. debit card base (lakhs) Monthly Cash Withdrawals No. of Monthly Transactions (lakhs) `crore  25% YOY  39% YOY  43% YOY • Pioneer in ATM sharing arrangements • Value added services such as bill payments, mutual fund investments

  31. Slide 31: International Presence

    International Presence • Branches at Singapore, Hong Kong, DIFC - Dubai and Colombo • Representative offices at Shanghai, Dubai and Abu Dhabi • Axis U.K. Ltd. incorporated as a subsidiary • Total assets overseas amounted to US$ 6.35 billion as compared to US$ 5.30 billion as at end March ‟11, a grow

  32. Slide 32: Shareholding

    Shareholding Shareholding pattern (Mar ‟12) • Share Capital - `413.20 crore • Net Worth - `21,781.09 crore SUUTI Others 23.53% • Book Value per share - `552 33.84% • Market Price as on 26/04/12 - `1,086.65 LIC 9.69% • Market Cap as on 26/04/12 - `44,900 crore (US $8.54 billion) FIIs 32.94% 31

  33. Slide 33: Accolades in FY11-12

    Accolades in FY11-12 Bank of the Year Best Bank Best Bank Best Domestic (India) (Private Sector) - Outlook Money Bank (India) - The Banker Awards - NDTV Profit Business Awards - Asset Triple A Country Leadership Awards Awards Most Consistent Fastest Growing Most Productive 3rd Strongest Large Bank B

  34. Slide 34: Safe Harbor

    Safe Harbor Except for the historical information contained herein, statements in this release which contain words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek to”, “futu

  35. Slide 35: Thank You

    Thank You 34 A

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