Axis Bank Limited · NSE:AXISBANK
Axis Bank — Q1 FY2011 Earnings Presentation
34 slides from Axis Bank's earnings presentation, July 2010
Slide 1: FY 2010-11 First Quarter Results Investor Presentation
FY 2010-11 2010 11 First Quarter Results Investor Presentation
Slide 2: Performance Highlights
Performance Highlights Q1FY11 Net Profit 32% YOY Net Interest Income 45% YOY Fee Income 19% YOY Operating Revenue 25% YOY Operating Profit 23% YOY Net Interest Margin 3.71% Cost of Funds 4.61% 1
Slide 3: Shareholder Returns
Shareholder Returns FY06 FY07 FY08 FY09 FY10 Q1FY11 1.67 414 52 414.52 1 63 1.63 395.99 21.84 19.93 19.89 1.44 18.44 18.80 1.18 1.24 284.50 16.09 1 10 1.10 245.14 120.50 103.06 Book Value per Share (Rs.) Return on Equity (%) Return on Assets (%) 2
Slide 4: Interpretation of Q1 FY11 Performance
Interpretation of Q1 FY11 Performance • Growth in the Bank’s core businesses – Total Net Advances grew 39% yoy to Rs. 1,08,609 crores – Total Investments grew 24% yoy to Rs. 57,540 crores – Total Assets registered a 34% yoy growth, rising to Rs. 1,89,459 crores – Fees grew by 19% yoy, rising to Rs.
Slide 5: Profitability
Profitability Sustained Growth: Robust Core Revenues Q1FY10 Q1FY11 2,515 Amounts in Rupees Crores 2,319 2,004 1,678 1,254 850 742 562 Net Profit Core Operating Operating Revenue Core Operating Profit Revenue ↑ 32% YOY ↑ 48% YOY ↑ 25% YOY ↑ 38% YOY Note: Core Operating Revenue / Profit excludes tradi
Slide 6: Consistent Net Profit Growth
Consistent Net Profit Growth FY05 FY06 FY07 FY08 FY09 FY10 FY11 764.9 741.9 Amounts in Rupees Crores 656.0 581.5 562.0 531.6 500.9 402.9 361.4 330.1 306.8 227.8 211.9 174.9 184.6 141.9 151.7 120.6 131.7 116.5 109.0 101.1 92.6 70.7 46.2 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 4 00% 4.00% 4 09% 4.09% 6.09% 3.52% 3.71% 3.34% 5.41% 4.83% 4.54% 4.61% Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 NIMs in the last 5 years: FY06 2.85% FY07 2.74% FY08 3.47% FY09 3.33% FY10 3.75% 6
Slide 8: Growing Net Interest Income
Growing Net Interest Income Q1FY10 Q1FY11 Amounts in Rupees Crores 1,514 NIIs for the last 5 years 1,046 FY06 1,078 , FY07 1,468 FY08 2,585 FY09 3,686 FY10 5,004 CAGR 47% Net Interest Income ↑ 45% YOY 7
Slide 9: Growing Demand Deposits
Growing Demand Deposits YOY Growth in Daily Average Demand and Term Deposits Deposit Q1FY11 Savings 39% Current 37% Total Demand Deposits 39% Total Deposits 29% 59,249 (40%) 44,176 Demand Deposits ↑ 34% YOY (40%) 88,230 Term Deposits 66 080 66,080 ↑ 34% YOY (60%) (60%) 30th June 2009 30th June 2010
Slide 10: Fees
Fees Q1FY10 Q1FY11 Amounts in Rupees Crores 743 627 Fees for the last 5 years FY06 558 FY07 890 FY08 1,495 FY09 2,447 FY10 2,925 CAGR 51% Fees ↑ 19% YOY 9
Slide 11: Fee Income Composition
Fee Income Composition Q1FY10 Q1FY11 228 Amounts in Rupees Crores 205 190 161 158 129 89 94 40 37 18 20 Large & Mid Treasury & Agri & SME Business Capital Retail Corporate DCM Banking Banking Markets Banking Credit ↑ 42% YOY ↑ 22% YOY ↓ 6% YOY ↑ 6% YOY ↑ 10% YOY ↑ 8% YOY Note: Previous year’s figure
Slide 12: Trading Profits
Trading Profits T di Profit Trading P fit % off O Operating ti Revenue R Amounts in Rupees Crores 326 16 3% 16.3% 196 7.8% Q1FY10 Q1FY11 Q1FY10 Q1FY11 ↓ 40% YOY 11
Slide 13: Stressed Assets and Net NPA (%)
Stressed Assets and Net NPA (%) Gross NPAs Net NPAs Net NPA (%) Amounts in Rupees Crores 1,400 1,318 1,341 0.90% 1,174 0.80% 1,200 1,132 0.70% Net NPA as at year-end 1,000 915 0 60% 0.60% FY06 0 75% 0.75% FY07 0.61% 800 0.50% 0.45% 0.46% FY08 0.36% 0.41% FY09 0.35% 600 36% 0.35% 0.36% 0 0 40% 0.40%
Slide 14: Business Overview
BUSINESS OVERVIEW A
Slide 15: Network
Network Increasing Reach 643 651 1035 1050 515 835 671 405 561 332 450 258 339 190 Branches + Extension Counters Centres Covered 4293 4474 3,595 Branch Demographics (Domestic) Branches Extn. Counters 2,764 Metro 321 6 2,341 1,891 Urban 395 2 1 599 1,599 Semi-urban 261 - Rural 65 - Total 1042 8 ATMs
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) 74% 4% off corporate advances have rating off at least ‘‘A’ as at June 2010 4% 2% 6% 9% 10% 22% 23% 19% 18% 19% AAA AA 49% A 54% 53% 47% 46% BBB <BBB or Unrated 22% 22% 23% 18% 19% 2% 3% 4% 3% 3% Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 16
Slide 18: SME and Agri Business
SME and Agri Business 30-Jun-09 30-Jun-10 16,818 Amounts in Rupees Crores 14,232 10 587 10,587 8,218 SME Advances Agricultural & Microfinance Advances ↑ 18% YOY ↑ 29% YOY SME Centres 25 26 Agri Clusters 49 64 • Specialised SME Centres for SME • Specialised Clusters for Agricultural lending, appraisa
Slide 19: Distribution of Ratings: SME
Distribution of Ratings: SME 77% of SME advances have rating of at least ‘SME3’ SME3 as at June 2010 1% 1% 1% 2% 2% 10% 11% 11% 13% 15% SME 1 65% 63% 62% SME 2 62% 60% SME 3 SME 4 SME 5-8 16% 17% 17% 13% 13% 8% 8% 9% 10% 9% Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 18
Slide 20: Sector Composition
Sector Composition Across Large Corporate, Mid Corporate, SME and Corporate Agri Outstanding as on 30 June 2010 (%) Rank Sectors Non-fund Total Fund-based Fund based based 1. Infrastructure* 11.43 9.10 15.82 2. Financial Companies** 10.56 9.46 12.64 3. Power Generation & Distribution 8.50 5.98 13.26
Slide 21: Business Banking
Business Banking Cash Management Services 30-Jun-09 30-Jun-10 • Collection of Central Government taxes on behalf of CBDT and CBEC, including 6,832 through e-payments • Collection of State Government taxes on behalf of 8 State Governments and UTs 5,089 • Collections and payments for Central Governmen
Slide 22: Business Banking
Business Banking Current Accounts Growth 30-Jun-09 30-Jun-10 Amounts in Rupees Crores 24,546 Current Account deposits 18,977 for the last 5 years (as on 31st March) Mar’06 7,970 Mar’07 11,304 Mar’08 20,045 Mar’09 24,822 Mar’10 32,168 C Current tAAccountt D Deposits it CAGR 42% ↑ 29% YOY • Wide range
Slide 23: Treasury
Treasury Q1FY10 Q1FY11 Amounts in Rupees Crores 100,097 155 88,003 48 29 17 8 ((2)) Forex Turnover Forex Trading SLR and Money Derivatives Market Trading Trading ↑ 14% YOY ↓ 72% YOY ↓ 69% YOY 22
Slide 24: Debt Capital Markets
Debt Capital Markets Q1FY10 Q1FY11 Amounts in Rupees Crores 22,033 14,630 Placements & Syndications ↑ 51% YOY • A dominant player in placement and syndication of debt issues • Ranked No. 1 Debt Arranger by Prime Database for the year ended 31st March 2010 • Ranked No.1 Debt Arranger by Bloomberg Und
Slide 25: Savings Bank Growth
Savings Bank Growth 30-Jun-09 30-Jun-10 Amounts in Rupees Crores 57,096 Savings Bank deposits for the last 5 years (as on 31st March) 44,230 Mar’06 8,065 Mar’07 12,126 34,703 Mar’08 19,982 Mar’09 25,822 25,199 Mar’10 33,862 CAGR 43% Savings Bank deposit growth led by: • Wide Network - Branch and ATM
Slide 26: Third Party Products Business
Third Party Products Business Q1FY10 Q1FY11 Amounts in Rupees Crores • Focus on cross-selling to existing customers to generate 40 fee income • Third-party products sold include 21 mutual funds, insurance, on-line broking, portfolio management services ((non-discretionary), y), gold g coins and depo
Slide 27: Retail Assets
Retail Assets 30-Jun-09 30-Jun-10 30-Jun-09 30-Jun-10 Amounts in Rupees Crores 1,117,734 , , 21,073 • Retail Assets grew by 26% YOY. 16,780 955,427 • Retail Assets constitute 19% of the bank’s total advances, as compared to 21% as at end June ’09. Portfolio Size No. of accounts ↑ 26% YOY ↑ 17% YOY 2
Slide 28: Composition of Retail Assets
Composition of Retail Assets Product wise composition of Retail Assets portfolio (June ’10) Product-wise Cards Non- 2% Schematic 4% Personal Loans 10% Auto loans 13% Housing Loans 71% 27
Slide 29: Cards Business
Cards Business Q1FY10 Q1FY11 Amounts in Rupees Crores • Issuance 65 – Over 5,49,000 Credit Cards in force till end June ‘10 10 – 1st Indian Bank to launch Travel Currency Cards in 9 currencies - US$, Euro, GBP, AUD, CAD, SGD, SEK, CHF, JPY – 1st Indian Bank to launch 44 Remittance Card and Meal Card
Slide 30: ATM Channel Migration
ATM Channel Migration Jun'09 Jun'10 152 6,693 309 124 5,536 273 Intl. debit card base (lakhs) Monthly Cash Withdrawals No. of Monthly Transactions (Rs. Crore) (lakhs) ↑ 23% YOY ↑ 21% YOY ↑ 13% YOY • Pioneer in ATM sharing arrangements • Value added services such as bill payments, mutual fund investm
Slide 31: International Presence
International Presence • Branches at Singapore, Hong Kong and DIFC, Dubai • Representative offices at Shanghai and Dubai • Total assets overseas amounted to US$ 3 3.45 45 billion as compared to US$ 2.26 billion as at end June ’09, a growth of 53% yoy • Corporate C t BBanking, ki T Trade d Fi Finance
Slide 32: Shareholding
Shareholding Shareholding pattern (Jun ’10) • Share Capital - Rs. 407.44 crores SUUTI Others 23.86% • Net Worth - Rs. 16,226 crores 30.23% • Book Value per share - Rs. 414.52 • Market Price as on 14/07/10 - Rs. 1,314.45 LIC 9.64% Market Cap as on 14/07/10 - Rs. 53,556 crores (US $ 11.49 billion) FII
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 ss ey XT