Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q3 FY2016 Earnings Presentation
40 slides from Kotak Mahindra Bank's earnings presentation, 2016
Slide 1: Investor Presentation Q3FY16
INVESTOR PRESENTATION Q3FY16
Slide 2: Standalone Highlights Q3FY16
Standalone Highlights Q3FY16 PAT NIM LOANS NET NPA ` 635 cr 4.3% ` 115,345 cr 0.96% [4.7%] [ ` 64,641 cr] [0.97%] [ ` 465 cr] TOTAL CAR # BRANCHES CASA ASSETS 16.2% 35% [17.7%] ` 182,129 cr Tier I 1,298 ` 46,188 cr [ ` 102,235 cr] 15.0% [661] [ ` 23,050 cr] [16.7%] Figures in [brackets] are Q3FY15 n
Slide 3: Merger Integration update
Merger Integration update Integration broadly on schedule Based on current progress, we expect complete integration by April / May 2016 We are in the final stage of two major pieces: • Technology • Organization structure 3
Slide 4: Synergy Update
Synergy Update Revenue Synergy 6% impact helping SA growth in eIVBL network • Average SA at eIVBL branches grew 31% YoY, Kotak branches at 41% Continuing with momentum on customer acquisition • adding ~ 100,000 customers a month Average CA grew 32% YoY on a combined basis Insurance X-sell ha
Slide 5: Provisions and costs arising post merger
Provisions and costs arising post merger Stressed Book Bad Bank formed in Q1FY16 (~6% of funded and non funded book of eIVBL) under experienced asset reconstruction team Most of the stressed assets being managed by this team Continue with our estimate of credit cost of ~ 80 – 85 bps on combine
Slide 6: Digital Focus @ Bank
Digital Focus @ Bank Mobility Top rated mobile app with > 80 features in Mobile banking Bill pymts, TD, RD, MF & Fund Transfers Bus booking (besides flight and Hotel booking) thru Mobile Banking and Net Banking Bharat banking App – Internet-free multilingual app with 25 Banking transactions incl. sm
Slide 7: Digital Update
Digital Update Kotak Mahindra Bank Mobile Transactions over ` 2,300 cr per month in December 2015 6.8% (Nov-15) share in value of mobile banking transactions; while share of industry advances & deposits is 1.6% & 1.4% resp. – RBI data 50% of TDs are booked Online Ranked No. 5 in terms of val
Slide 8: Digital Update - Subsidiaries
Digital Update - Subsidiaries Kotak Securities Mobile transaction volume crossed over ` 4,000 cr per month No. of trades on mobile app crossed over 3 lacs pm Contribution of Kotak Stock Trader app to overall brokerage crossed 7% Launched TradeSmart Insights and Derivatives - advance analytic
Slide 9: Profit and Loss Account
Profit and Loss Account ` cr Q3FY16 Q2FY16 Q3FY15 FY15 Net Interest Income 1,766 1,679 1,060 4,224 Other Income * 722 616 494 2,028 Net Total Income 2,488 2,295 1,554 6,252 Employee Cost 618 623 368 1,450 Other Operating Expenses# 665 627 448 1,805 Operating Expenditure 1,283 1,250 816 3,255 Operati
Slide 10: Income and Asset Quality
Income and Asset Quality NII (` cr) and NIM Asset Quality Restructured loans considered standard ` 346 cr (0.3%) of which ` 202 cr from eIVBL portfolio Post merger No CDR participation No transfer to ARC No conversion to off-balance sheet No 5/25 loans No rectification Other Income (` cr) Q3FY16
Slide 11: Segment Performance
Segment Performance Bank Segmental PBT As per RBI (` cr) Q3FY16 Q2FY16 Q3FY15 FY15 Corporate/Wholesale Banking 547 530 338 1,402 Retail Banking 318 328 240 957 Treasury, BMU* & 105 11 130 468 Corporate Centre ** Unallocated Income - - - 6 Total 970 869 708 2,833 *Balance Sheet Management Unit ** int
Slide 12: Advances & Investments
Advances & Investments 31-Dec-15 [` 115,345 cr] ` cr 31-Dec-15 30-Sep-15 31-Dec-14 31-Mar-15 Corporate Banking 35,239 33,909 22,044 20,299 CV/CE 6,550 6,123 5,027 5,204 Agriculture Division 16,811 17,112 10,849 12,106 Business Banking 23,382 22,616 6,079 6,422 Home Loans and LAP 22,327 21,697 13,738
Slide 13: Balance Sheet
Balance Sheet ` cr 31-Dec-15 30-Sep-15 31-Dec-14 31-Mar-15 Networth 23,307 22,606 13,682 14,141 Deposits 130,939 123,211 73,066 74,860 CA 19,609 20,322 10,696 13,181 SA 26,579 24,335 12,354 14,036 Certificate of Deposit 11,505 8,987 5,206 3,785 Term Deposit Others 73,246 69,567 44,810 43,858 Borrowi
Slide 14: Branches & Deposits
Branches & Deposits No of Branches Highlights Dec-15 Dec-14 Mar-15 Plan to reach 1,400 branches by CY 2017 1,298 661 684 CASA and TDs below ` 5 cr constitute 69% of total deposits (65% as on Dec- 14) CASA (` cr) TDs below ` 1 cr were ` 35,214 cr (` 18,360 cr as on Dec-14) TD sweep were ` 7,5
Slide 15: Geographical Presence
Geographical Presence Branches 1,298 [28] [No./%] 366/28% North West East 404/31% 74/6% South 454/35% No of ATMs 1,987 Bank has a Rep office in Dubai 15
Slide 16: Consolidated Highlights Q3FY16
Consolidated Highlights Q3FY16 PAT CAR # LOANS BOOK VALUE PER SHARE 16.7% [17.9%] ` 945 cr Tier I # ` 141,136 cr ` 177 [ ` 86,058 cr] [ ` 717 cr] 15.8% [ ` 138* ] [17.1%] NIM NETWORTH NET NPA TOTAL ASSETS 4.4% ` 32,349 cr 0.85% ` 229,691 cr [4.7%] [ ` 21,299 cr] [0.83%] [ ` 142,784 cr] Figures in [b
Slide 17: Consolidated Key Financials
Consolidated Key Financials Advances [` cr] Networth [` cr] Total Assets [` cr] PAT [` cr] 2,29,691 2,19,527 945 942 717 1,42,784 1,48,576 Dec-15 Sep-15 Dec-14 Mar-15 Q3FY16 Q2FY16 Q3FY15 Merger of ING Vysya Bank effective April 1, 2015. Previous year periods not comparable 17
Slide 18: Consolidated Advances & Investments
Consolidated Advances & Investments 31-Dec-15 (` 141,136 cr) ` cr 31-Dec-15 30-Sep-15 31-Dec-14 31-Mar-15 Corporate Banking 39,988 37,569 25,933 24,546 CV/CE 6,550 6,123 5,027 5,204 Agriculture 16,811 17,112 10,849 12,106 Division Business Banking 23,382 22,616 6,079 6,422 Auto loans 16,410 15,726 1
Slide 19: Consolidated PAT
Consolidated PAT ` cr Q3FY16 Q2FY16 Q3FY15 9MFY16 9MFY15 FY15 Kotak Mahindra Bank 635 570 465 1,394 1,339 1,866 Kotak Mahindra Prime 126 127 120 372 365 507 Kotak Mahindra 39 36 24 104 66 106 Investments Kotak Life Insurance 60 48 51 174 153 229 Kotak AMC and TC 4 23 (10) 47 (11) (29) Kotak Securiti
Slide 20: Entity Wise Networth
Entity Wise Networth ` cr 31-Dec-15 30-Sep-15 31-Dec-14 31-Mar-15 Kotak Mahindra Bank 23,307 22,606 13,682 14,141 Kotak Mahindra Prime 3,721 3,596 3,207 3,350 Kotak Mahindra Investments 791 753 577 617 Kotak Life Insurance 1,445 1,385 1,194 1,291 Kotak AMC and TC 149 144 115 102 Kotak Securities 2,5
Slide 21: Kotak Mahindra Prime
Kotak Mahindra Prime Customer Assets (`cr) & NPA (%) ` cr Q3FY16 Q2FY16 Q3FY15 FY15 NII 247 237 220 915 Other Income 50 61 48 206 Total Income 297 298 268 1,121 Profit Before Tax 193 195 183 774 Profit After Tax 126 127 120 507 CAR (%) 18.3 ROA (%) - annualised 2.5 21
Slide 22: Kotak Mahindra Investment
Kotak Mahindra Investment Customer Assets (`cr) & NPA (%) ` cr Q3FY16 Q2FY16 Q3FY15 FY15 NII 70 63 44 164 Other Income 3 5 3 37 Total Income 73 68 47 201 Profit Before Tax 60 55 37 158 Profit After Tax 39 36 24 106 CAR (%) 18.3 ROA (%) - annualised 5.0 22
Slide 23: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance New Business Premium (` cr) Highlights 441 461 318 1,540 Individual regular business grew by 78% against private insurance industry growth of 13% Group business grew by 50% On APE basis, Kotak Bank share for Q3FY16 is 48% (PY – 34%) for first year individual premi
Slide 24: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance 13th Month Persistency* & Conservation Ratio Surrenders and AUM (` cr) * The 13th Month persistency is after a time lag of 45 days from quarter end, accordingly the current number is of Q2FY16 KLI has shown improvement in Conservation ratio and persistency Policyhol
Slide 25: Kotak Mahindra AMC & Trustee Co
Kotak Mahindra AMC & Trustee Co Average Assets Under Management (`cr) - Overall Average Assets Under Management (`cr) - Equity ` cr Q3FY16 Q2FY16 Q3FY15 FY15 Highlights Total Income 59 59 32 137 On Avg AUM basis, ranked No. 8 in Q3FY16 (No. 9 - Profit Before Tax 13 24 (9) (25) Q2FY16) Profit After
Slide 26: Asset Under Management
Asset Under Management Dec 31, 2015 Dec 31, 2014 AUM ` 95,735 cr AUM ` 71,404 cr 26
Slide 27: Kotak Securities
Kotak Securities Market ADV (` ‘000 cr) ADV (` cr) - KS 245 281 259 250 ` cr Q3FY16 Q2FY16 Q3FY15 FY15 Total Income 228 270 223 960 Profit Before Tax 83 120 91 441 Profit After Tax 55 78 60 290 Market Share * (%) (YTD) 2.7 2.7 2.8 2.8 *excluding BSE Derivative segment Kotak Securities services more
Slide 28: Kotak Mahindra Capital Co.
Kotak Mahindra Capital Co. ` cr Q3FY16 Q2FY16 Q3FY15 FY15 Total Income 28 29 13 89 Profit Before Tax 8 12 (6) 16 Profit After Tax 6 7 (6) 12 28
Slide 29: Group Profile
GROUP PROFILE
Slide 30: The Journey So far…
The Journey So far… Proposed Invt. In Airtel Payments Bank Kotak Mahindra Bank is the 4th Largest Private Sector Bank Rating for Bank, KMP, KMIL, KS 30
Slide 31: Organizational Overview
Kotak Mahi Prime + Car Finance + Other Lending Kotak Mahindra Old Mutual Life Insurance + Life Insurance Kotak Mahindra Financial Services + Advisory Services for Middle East Organizational Overview KOTAK MAHINDRA BANK Commercial Bank & Holding Company Kotak Mahindra Investments + Investments + Alte
Slide 32: Kotak Uniqueness
Kotak Uniqueness - Strong capital base: Bank’s - Ability to take advantage CRAR* -16.2% as on 31st Dec 15 of opportunities & build - Strong on ground relationships profitable business models key contributor to achieve low risk & high return - Ability to gauge warning - Consistent stock performance s
Slide 33: 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 34: Bank Awards & Recognition
Bank Awards & Recognition Best Private Bank in India Euromoney Awards for Excellence, Asia 2015 Best Private Bank India FinanceAsia Country Awards 2015 Best Retail Growth Performance Dun & Bradstreet Awards 2015 Best Private Bank India DataQuest Business Excellent Performance Mr. Uday Kotak Global P
Slide 35: Awards and Recognition
Awards and Recognition Best Broker in India Best Domestic Equity House Ranked #1 across domestic & FinanceAsia Country Awards for Asiamoney – 2015 foreign brokerages Achievement 2015 Institutional Investor’s 2015 SKOCH BSE Aspiring All-India Research Team Best SEO for Website, India Nation Award 201
Slide 36: 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 37: 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 Ko
Slide 38: 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 39: 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 s
Slide 40: 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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