Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — FY2015 Earnings Presentation
35 slides from Kotak Mahindra Bank's earnings presentation, May 5, 2015
Slide 1: Investor Presentation FY15
Investor Presentation FY15 1 May 05, 2015
Slide 2: Kotak Bank - Standalone Highlights – FY15
Kotak Bank - Standalone Highlights – FY15 PAT RoA Loans Branches ` 1,866 cr ` 66,161 cr 2.0% (1.8%) 684 (` 1,503 cr) (` 53,028 cr) Up 24% Up 25% (605) NIM CAR Net CASA 17.2% (18.8%) ` 27,217 cr 4.87% NPA (` 18,828 cr) (4.90%) Tier 1 0.92% (1.08%) Up 45% 16.2% (17.8%) Merger with ING Vysya Bank effec
Slide 3: Bank Profit & Loss
Bank Profit & Loss ` cr Q3FY15 Q4FY14 Q4FY15 FY14 FY15 Net Interest Income 1,060 967 1,123 3,720 4,224 Other Income 494 340 668 1,400 2,028 Net Total Income 1,554 1,307 1,791 5,120 6,252 Employee Cost 368 316 379 1,159 1,450 Other Operating Expenses* 448 384 552 1,384 1,805 Operating Expenditure 816
Slide 4: Bank Performance
Bank Performance Other Income (` cr) Q3FY15 Q4FY14 Q4FY15 FY14 FY15 Fee and Services 328 276 389 942 1,353 Treasury Income 118 12 164 299 421 ARD Buyout Income 46 46 116 141 239 Others 2 6 (1) 18 15 Total 494 340 668 1,400 2,028 Bank Segmental Performance As per RBI (` cr) Q3FY15 Q4FY14 Q4FY15 FY14
Slide 5: Bank Advances & Investments
Bank Advances & Investments Mar 31, Mar 31, Mar-15 (` 66,161 cr) ` cr 2014 2015 Corporate Banking 14,377 20,299 CV/CE 5,441 5,204 Agriculture Division 10,468 12,106 Business Banking 5,388 6,422 Home Loans and LAP 12,100 14,709 Small Business, Personal loans & 4,632 6,263 Credit Cards Others 622 1,15
Slide 6: Bank Balance Sheet
Bank Balance Sheet ` cr Mar 31, 2014 Mar 31, 2015 YoY Growth Net Worth 12,275 14,141 15% Deposits 59,072 74,860 27% CA 8,741 13,181 51% SA 10,087 14,036 39% Certificate of Deposit 5,726 3,785 (34%) Term Deposit Others 34,518 43,858 27% Borrowings 12,896 12,150 (6%) Other Liabilities and Provisions 3
Slide 7: Bank Key Ratios
Bank Key Ratios CAR & Tier I (%) Savings Account (` cr & % of deposits) ^ as per BASEL III - 1,518 10,087 14,036 RoA (%) Asset Quality Restructured loans considered standard ` 158.1 cr (0.24%) No CDR participation No transfer to ARC No conversion to off-Balance sheet 7
Slide 8: Consumer Banking Liabilities
Consumer Banking Liabilities No of Branches / ATM‟s CA grew 51% yoy and SA grew 39% yoy TD sweep to total deposit ratio at 7.3% (7.2% as on Mar-14) CASA and TDs below ` 5 cr constitute 70% of total deposits (63% as on Mar-14) CASA (` cr) TDs below ` 1 cr grew 34% yoy CASA 19% 28% 32% 36% A
Slide 9: Consolidated Highlights – FY15
Consolidated Highlights – FY15 Total PAT Networth Assets Loans ` 3,045 cr ` 22,153 cr ` 88,632 cr (` 2,465 cr) (` 19,076 cr) ` 148,576 cr (` 71,693 cr) Up 24% (` 122,237 cr) Up 24% Book Value RoA NIM Net 2.3% (2.1%) 4.93% (4.97%) (per share) ` 286.8 NPA (` 247.6) 0.79% (0.88%) Figures in brackets ar
Slide 10: Consolidated Key Financials
Consolidated Key Financials Advances (` cr) Networth (` cr) Total Assets (` cr) PAT (` cr) 10
Slide 11: Consolidated Advances and Investments
Consolidated Advances and Investments Mar -15 (` 88,632 cr) Mar 31, Mar 31, ` cr 2014 2015 Corporate Banking 17,319 24,546 CV/CE 5,441 5,204 Agriculture Division 10,468 12,106 Business Banking 5,388 6,422 Auto loans 13,223 14,691 Home Loans and LAP 12,100 14,709 Small Business, Personal loans & 4,66
Slide 12: Consolidated PAT
Consolidated PAT ` cr FY03 FY08 FY14 FY15 YoY% Kotak Mahindra Bank 45 294 1,503 1,866 24% Kotak Mahindra Prime 11 101 491 507 3% Kotak Mahindra Investments 15 43 42 106 153% Kotak Securities 24 409 160 290 81% Kotak Mahindra Capital Company 31 115 14 12 (13%) Kotak Mahindra Old Mutual Life Insurance
Slide 13: Consolidated PAT – cont'd
Consolidated PAT – cont‟d ` cr Q3FY15 Q4FY14 Q4FY15 QoQ% YoY% Kotak Mahindra Bank 465 407 527 13% 29% Kotak Mahindra Prime 120 126 143 19% 13% Kotak Mahindra Investments 24 16 40 66% 158% Kotak Securities 60 44 96 62% 121% Kotak Mahindra Capital Company (6) 5 30 Kotak Mahindra Old Mutual Life Insura
Slide 14: Entity Wise Networth
Entity Wise Networth ` cr Mar 31, 2003 Mar 31, 2008 Mar 31, 2014 Mar 31, 2015 Kotak Mahindra Bank 541 3,536 12,275 14,141 Kotak Mahindra Prime 416 708 2,843 3,350 Kotak Mahindra Investments 66 180 436 617 Kotak Securities 108 1,142 2,094 2,384 Kotak Mahindra Capital Company 196 401 403 415 Kotak Mah
Slide 15: Consolidated Profit (PBT) Mix
Consolidated Profit (PBT) Mix 15
Slide 16: Kotak Mahindra Prime
Kotak Mahindra Prime Customer Assets (` cr) & NPA (%) ` cr Q3FY15 Q4FY14 Q4FY15 FY14 FY15 NII 220 240 252 880 915 Other income 48 43 57 181 206 Total Income 268 283 309 1,061 1,121 Profit before tax 183 192 218 752 774 Profit after tax 120 126 143 491 507 CAR (%) 17.7 18.3 ROA (%) - annualised 2.6 2
Slide 17: Kotak Mahindra Investment
Kotak Mahindra Investment Customer Assets (` cr) & NPA (%) ` cr Q3FY15 Q4FY14 Q4FY15 FY14 FY15 NII 44 27 50 78 164 Other income 3 4 21 10 37 Total Income 47 31 71 88 201 Profit before tax 37 24 57 64 158 Profit after tax 24 16 40 42 106 CAR (%) 26.3 18.3 ROA (%) - annualised 4.2% 5.0% 17
Slide 18: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance Premium (` cr) Individual Business grew by 35% against industry degrowth of 11% 668 1,006 1,246 2,701 3,038 On APE (Single @ 1/10th) Basis, Share of Kotak Bank* for FY15 is at 40% ( PY – 36%) for first year individual premium Group Business grew by 26 % In force
Slide 19: Kotak Securities
Kotak Securities Market ADV (` „000 cr) ADV (` cr) - KS 259 163 292 167 251 ` cr Q3FY15 Q4FY14 Q4FY15 FY14 FY15 Total income 223 160 289 627 960 Profit before tax 91 55 147 234 441 Profit after tax 60 44 96 160 290 Market Share* (%) 2.8 2.4 2.9 2.3 2.8 *excluding BSE Derivative segment Kotak Securit
Slide 20: Kotak Mahindra Capital Co.
Kotak Mahindra Capital Co. Client (M&A) Announced Transactions Size (` cr) Financial Advisor to TPG Capital for acquisition of significant minority stake in Manipal 900 Health Enterprises Private Limited Financial Advisor to SVB, USA for sale of 100% shareholding in SVB India to Temasek 280 Financia
Slide 21: Asset Under Management
Asset Under Management AUM ` 56,564 cr AUM ` 80,635 cr Mar 31, 2014 Mar 31, 2015 21
Slide 22: Kotak Mahindra AMC and Trustee Co.
Kotak Mahindra AMC and Trustee Co. Average Assets Under Management ` cr Equity AAUM doubled during FY15 Loss largely on account of higher equity asset acquisition costs Pine Bridge schemes acquisition completed in Jan 2015 ` cr # Q3FY15 Q4FY14 Q4FY15 FY14 FY15 Total income 32 42 38 177 137 Pro
Slide 23: Kotak Investment Advisors Limited
Kotak Investment Advisors Limited • Set up in 2005 for a focused approach to investing in the Indian Private Equity & Real Estate space • Advises /manages an AUM of ` 5,919 cr with dedicated, independent and experienced investment teams Real Estate Private Equity Infrastructure • AUM - ` 3,788 cr •
Slide 24: Geographical Presence
Geographical Presence Strong Regional Presence * Wider Coverage and Balanced Footprint ING Kotak Branches * Kotak North Vysya (Merged) 11 Branches 28% West 13% 46% 31% 43 2 North 22% 33% 28% 1944 9 34 South 61% 15% 36% 28 69 25 1 East 4% 6% 5% 6 29 22 3 1 40 1 6 2 Total 577 684 1,261 2 1 5 15 Busine
Slide 25: Journey so far
Journey so far……. ING Vysya Merger Pinebridge MF acquired ARC Alternate Assets BANK Securities Life Insurance Mutual Bank, KMP, KMIL, KS Fund Rated AAA Investment Banking IPO Auto Finance Bill Discounting 1985 1990 1992 1995 1998 2000 2001 2003 2004 2008 2014 2015 General Insurance - awaiting approv
Slide 26: Group Structure
Group Structure Kotak Mahindra Bank • Commercial Bank & Holding Company Kotak Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Capital Old Mutual Life Trustee Prime Investments Securities AMC Pension Fund Company Insurance Company • Car Finance
Slide 27: Bank Awards and Recognition
Bank Awards and Recognition Excellence in Security under 'Security in Best Private Bank 2015 by Euromoney Best Bank in 2014 by Business India Bank' category at Data Security Council of India Excellence Awards 2014 IR Global Ranking – one of the top 5 Best Special Award for Innovation (IMPS) at Best
Slide 28: Awards and Recognition
Awards and Recognition Asiamoney Brokers Poll 2014 Best Local Brokerage Ninth year in a row Best Brokerage House - India - The Among all domestic and foreign brokerages,ranked: Securities Advisory Asset Triple A Country Awards 2014 #2 for Most Independent Research Brokerage #2 for Best Overall Count
Slide 29: Kotak Uniqueness
Kotak Uniqueness 4th Largest Private Sector Bank 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 Management, ∞ Strong
Slide 30: 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 2,700 retail distribution points across Banking, Broking, Mutual Fund Ag
Slide 31: 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 32: Talent…Professional Entrepreneurs at work
Talent…Professional Entrepreneurs at work Arvind Kathpalia Joined Kotak in 2003; First charge | Group Head , Operations, Technology & Finance, Kotak Mahindra Finance Current charge | President and Group Chief Risk Officer, Kotak Mahindra Bank On being a professional entrepreneur | I joined Kot
Slide 33: 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 34: 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, Kotak Mahindra Bank On being a professional entrepreneur | In 1996, broking was largely se
Slide 35: 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