Axis Bank Limited · NSE:AXISBANK
Axis Bank — H1 FY2012 Earnings Presentation
34 slides from Axis Bank's earnings presentation, October 2011
Slide 1: FY 2011-12 First Half Results Investor Presentation
FY 2011-12 First Half Results Investor Presentation
Slide 2: Performance Highlights
Performance Highlights Q2FY12 H1FY12 Net Profit 25% YOY 26% YOY Net Interest Income 24% YOY 19% YOY Fee Income 32% YOY 37% YOY Operating Revenue 22% YOY 19% YOY Operating Profit 19% YOY 14% YOY Net Interest Margin 3.78% 3.53% Cost of Funds 6.19% 6.16% 1
Slide 3: Shareholder Returns
Shareholder Returns FY07 FY08 FY09 FY10 FY11 H1FY12 1.68 1.67 509.05 1.57 21.84 19.93 19.89 20.13 19.47 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
Slide 4: Interpretation of Q2FY12 Performance
Interpretation of Q2FY12 Performance • Growth in the Bank‟s core businesses – Total Net Advances grew 27% YOY to `1,40,089 crores – Total Investments grew 37% YOY to `85,016 crores – Total Assets registered a 25% YOY growth, rising to `2,50,611 crores – Fees grew by 32% YOY, rising to `1,121 crores
Slide 5: Profitability
Profitability Sustained Growth: Robust Core Revenues Q2FY11 Q2FY12 H1FY11 H1FY12 Amounts in `Crores Amounts in `Crores 3,242 3,215 6,134 6,036 2,648 5,163 2,540 4,859 1,748 3,236 1,378 2,632 920 1,863 735 1,477 Net Profit Core Operating Core Net Profit Core Operating Core Operating Revenue Operating
Slide 6: Consistent Net Profit Growth
Consistent Net Profit Growth FY07 FY08 FY09 FY10 FY11 FY12 Amounts in ` Crores 1020 942 920 891 765 742 735 656 562 582 532 501 403 361 330 307 228 212 175 185 142 121 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarterly Net Profits 5
Slide 7: Net Interest Margin and Cost of Funds
Net Interest Margin and Cost of Funds Net Interest Margin Cost of Funds 3.81% 6.13% 6.19% 3.78% 3.68% 5.56% 4.75% 4.79% 3.44% 3.28% Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 NIMs for the last 5 years FY07 2.74% FY08 3.47% FY09 3.33% FY10 3.75% FY11 3.65% 6
Slide 8: Growing Net Interest Income
Growing Net Interest Income Q2FY11 Q2FY12 H1FY11 H1FY12 Amounts in ` Crores Amounts in ` Crores 3,731 2,007 3,129 1,615 24% YOY 19% YOY NIIs for the last 5 years (` crore) FY07 1,468 FY08 2,585 FY09 3,686 FY10 5,004 FY11 6,563 CAGR 45% 7
Slide 9: Growing Demand Deposits
Growing Demand Deposits YOY Growth in Daily Average Demand Deposits and Total Deposits Deposit Q2FY12 H1FY12 Savings 20% 21% Current 19% 17% Total Demand Deposits 20% 20% Total Deposits 22% 26% Amounts in ` Crores 82,140 65,186 (42%) Demand Deposits 26% YOY (42%) 112,315 Term Deposits 22% YOY 91
Slide 10: Fees
Fees Q2FY11 Q2FY12 H1FY11 H1FY12 Amounts in ` Crores Amounts in ` Crores 1,121 2,178 849 1,592 32% YOY 37% YOY Fees for the last 5 years (` crore) FY07 890 FY08 1,495 FY09 2,447 FY10 2,925 FY11 3,790 CAGR 44% 9
Slide 11: Fee Income Composition
379 Fee Income Composition Q2FY11 Q2FY12 298 Amounts in ` Crores 291 274 210 185 92 97 64 48 16 15 Large & Mid Treasury & DCM Agri & SME Business Banking Capital Markets Retail Business Corporate Credit Banking 27% YOY 48% YOY 33% YOY 5% % YOY 6% YOY 39% YOY 793 H1FY11 H1FY12 Amounts in
Slide 12: Trading Profits
Trading Profits Trading Profits % of Operating Revenue Amounts in ` Crores 108 4% 28 1% Q2FY11 Q2FY12 Q2FY11 Q2FY12 75% YOY 304 6% 98 2% H1FY11 H1FY12 H1FY11 H1FY12 68 % YOY 11
Slide 13: Stressed Assets and Net NPA (%)
Stressed Assets and Net NPA (%) Gross NPAs Net NPAs Net NPA (%) Amount ` Crore Net NPA as at year-end 1,800 1,744 0.90% FY07 0.61% 1,599 1,573 FY08 0.36% 1,600 1,483 0.75% FY09 0.35% 1,400 1,362 FY10 0.36% FY11 0.26% 1,200 0.60% 1,000 Cumulative Restructured Assets: `2,410 0.45% crore (1.49% of gros
Slide 14: Business Overview
BUSINESS OVERVIEW AXIS BANK AXIS BANK
Slide 15: Network
Network Increasing Reach 1,446 921 953 1,390 983 643 792 515 644 405 544 332 Branches + Extension Counters* Centres Covered 7,594 6,270 Branch Demographics (Domestic) Branches Extn. Counters 4,293 3,595 Metro 390 6 2,764 Urban 457 2 2,341 Semi-urban 470 - Rural 121 - Total 1438 8 ATMs March 2007 Mar
Slide 16: Large and Mid Corporate Banking
Large and Mid Corporate Banking • Focus on quality of credit assets with stress on corporates having – Global competitive advantage in their businesses – Good corporate governance and management practices • Business Segments – Large Corporates – Infrastructure – Mid Corporates • Rigorous and regular
Slide 17: Distribution of Ratings
Distribution of Ratings (Large and Mid Corporate) 73% of corporate advances have rating of at least „A‟ as at Sep 2011 8% 8% 7% 8% 7% 22% 24% 25% 26% 24% AAA AA 44% 42% A 41% 43% 41% BBB <BBB or unrated 23% 25% 23% 23% 24% 3% 2% 2% 2% 3% Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 16
Slide 18: SME and Agri Business
SME and Agri Business 30th Sep'10 30th Sep'11 Amounts ` Crore 20,755 16,812 10,616 9,073 SME Advances Agricultural & Microfinance Advances 23% YOY 17% YOY SME Centres 26 32 Agri Clusters 66 85 • Specialised SME Centres for SME • Specialised Clusters for Agricultural lending, appraisals, sanction
Slide 19: Distribution of Ratings: SME
Distribution of Ratings: SME 79% of SME advances have rating of at least „SME3‟ as at Sep 2011 2% 2% 5% 5% 5% 17% 17% 18% 20% 18% SME 1 SME 2 60% 59% 59% 55% 56% SME 3 SME 4 SME 5-8 12% 12% 13% 11% 12% 9% 10% 7% 8% 8% Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 18
Slide 20: Industry-wise Distribution (Top 10)
Industry-wise Distribution (Top 10) Outstanding as on 30 September 2011 (%)& Rank Sectors Non-fund Total Fund-based based 1. Financial Companies** 10.58 10.66 10.44 2. Power Generation & Distribution 9.23 5.05 16.62 3. Infrastructure* 9.23 7.08 13.02 4. Engineering & Electronics 6.53 3.34 12.15 5. M
Slide 21: Business Banking
Business Banking Cash Management Services & Government Business 30th Sep'10 30th Sep'11 9,505 • Collection of Central Government taxes on behalf of CBDT and CBEC, including through e-payments 7,325 • Collection of State Government taxes on behalf of 8 State Governments and UTs • Collections and paym
Slide 22: Business Banking
Business Banking Current Accounts Growth 30-Sep-10 30-Sep-11 30-Sep-10 30-Sep-11 Amount ` Crore Amount ` Crore 26,247 35,354 22,082 27,374 Period End Balance Daily Average Balance (Q2) 29% YOY 19% YOY • Wide range of products Current Account deposits (` Crore) for the last 5 years (as on 31st Ma
Slide 23: Treasury
Treasury Q2FY11 Q2FY12 Q2FY11 Q2FY12 131,214 Amount ` Crore Amount ` Crore 101,810 42.4 13.9 31.3 Q2FY11 8.2 Q2FY12 SLR & Money Market FX & Derivatives Forex Turnover Trading Trading 22% YOY 41% YOY 35% YOY 231,311 H1FY11 H1FY12 H1FY11 H1FY12 Amount ` Crore 182,377 Amount ` Crore 93.4 62.2 H1F
Slide 24: Debt Capital Markets
Debt Capital Markets Q2FY11 Q2FY12 H1FY11 H1FY12 Amount ` Crore Amount ` Crore 50,809 31,666 48,612 26,763 18% YOY Placement & Syndications 5% YOY (Debentures / Bonds) • A dominant player in placement and syndication of debt issues • Ranked No. 1 Debt Arranger by Prime Database for the year ende
Slide 25: Retail Deposits
Retail Deposits Savings Deposits Savings & Retail Term Deposits Amount ` Crore Amount ` Crore 46,786 87,484 42,675 67,918 37,812 35,592 30-Sep-10 30-Sep-10 30-Sep-11 30-Sep-11 Period End Balance Daily average Period End Balance balance (Q2) 24% YOY 20% YOY 29% YOY Savings Bank deposits (` Cror
Slide 26: Third Party Products Business
Third Party Products Business Q2FY11 Q2FY12 H1FY11 H1FY12 Amount ` Crores Amount ` Crores 70 • Focus on cross-selling to 124 existing customers to generate fee income • Third-party products sold include mutual funds, insurance, on-line 36 broking, portfolio management 54 services (non-discretionary)
Slide 27: Retail Assets
Retail Assets 30th Sep'10 30th Sep'11 30th Sep'10 30th Sep'11 Amount ` Crores 1,448,500 29,328 1,190,603 • Retail Assets constitute 21% of the bank‟s total 20,997 advances, as compared to 19% as on 30th September 2010 • Growth driven through 78 Asset Sales Centres (ASCs) Portfolio Size No of Account
Slide 28: Composition of Retail Assets
Composition of Retail Assets Product-wise composition of Retail Assets portfolio (30th Sep‟11) Cards Non-Schematic 2% 5% Personal Loans 4% Auto loans 13% Housing Loans 76% 27
Slide 29: Cards, Retail Forex & Remittances Business
Cards, Retail Forex & Remittances Business Q2FY11 Q2FY12 H1FY11 H1FY12 Amounts in ` Crores 190 101 121 64 57% YOY 57% YOY Fee Income • Issuance – Over 6.82 lac Credit Cards in force till end September „11 – Travel Currency Cards in 11 currencies -USD, Euro, GBP, AUD, CAD, SGD, SEK, CHF, JPY, AED,
Slide 30: ATM Channel Migration
ATM Channel Migration Sep'10 Sep'11 9,308 110 420 91 7,051 323 Intl. debit card base (lakhs) Monthly Cash Withdrawals No. of Monthly Transactions (lakhs) `crore 21% YOY 32% YOY 30% YOY • Pioneer in ATM sharing arrangements • Value added services such as bill payments, mutual fund investments,
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$ 5.24 billion as compared to US$ 3.79 billion as at end September ‟10, a
Slide 32: Shareholding
Shareholding Shareholding pattern (Sep ‟11) • Share Capital - `412.33 crore • Net Worth - `20,074.25 crore SUUTI Others 23.58% • Book Value per share - `509.05 34.97% • Market Price as on 21/10/11 - `1,132.75 LIC 9.53% • Market Cap as on 21/10/11 - `46,076 crore (US $ 9.50 billion) FIIs 31.92% 31
Slide 33: 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
Slide 34: Thank You
Thank You 33 A