Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q4 FY2023 Earnings Presentation
50 slides from Kotak Mahindra Bank's earnings presentation, Apr 29, 2023
Slide 1: Exchange filing cover letter
April 29, 2023 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza, Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Dalal Street, Bandra (East), Mumbai 400 001 Mumbai 400 051 BSE Scrip 500247, 715026, 958687, NSE KOTAKBANK, KM
Slide 2: Q4FY23 Presentation on financial results
Q4FY23 Presentation on financial results for the period ended 31st March, 2023 29th April, 2023
Slide 3: Consolidated Highlights FY23
Consolidated Highlights FY23 Q4FY23 PAT ROA ROE ₹ 4,566 cr 3.06% 16.88% FY23 PAT ROA ROE ₹ 14,925 cr 2.62% 14.36% As at Mar’23 Customer Assets* CAR CET I Book Value / Share ₹ 393,882 cr 23.3% 22.3% ₹ 563 * Customer Assets comprise Advances (incl. IBPC & BRDS) and Credit Substitutes 2
Slide 4: Consolidated PAT
Consolidated PAT ₹ cr Q4FY23 Q4FY22 Q3FY23 FY23 FY22 YoY Bank & Subsidiaries Contribution Kotak Mahindra Bank 3,496 2,767 2,792 10,939 8,573 28% Bank Kotak Mahindra Prime 224 313 225 829 886 -6% Other Lending Related Kotak Mahindra Investments 100 101 86 326 371 -12% 73% Entities BSS Microfinance 89
Slide 5: Entity-wise Capital and Reserves & Surplus
Entity-wise Capital and Reserves & Surplus ₹ cr 31-Mar-23 31-Mar-22 31-Dec-22 Kotak Mahindra Bank 83,460 72,456 79,936 Kotak Mahindra Prime 8,306 7,494 8,081 Kotak Mahindra Investments 2,815 2,489 2,715 BSS Microfinance 627 329 537 Consolidated Capital and Reserves & Surplus (₹ cr) Kotak Securities
Slide 6: Standalone Highlights FY23
Standalone Highlights FY23 Q4FY23 PAT NII NIM ROA ₹ 3,496 cr ₹ 6,103 cr 5.75% 3.00% FY23 PAT NII NIM ROA ₹ 10,939 cr ₹ 21,552 cr 5.33% 2.47% As at Mar’23 Customer Assets* Net NPA CASA Ratio CAR CET I ₹ 352,652 cr 0.37% 52.8% 21.8% 20.6% *Customer Assets comprise Advances (incl. IBPC & BRDS) and Cred
Slide 7: Profit and Loss Account
Profit and Loss Account ₹ cr Q4FY23 Q4FY22 Q3FY23 FY23 FY22 Notes for Q4FY23 Net Interest Income 6,103 4,521 5,653 21,552 16,818 Trading and MTM hit* Q4FY23: ₹ 1 cr; Other Income 2,186 1,705 1,948 7,083 5,986 (Q4FY22: ₹ 302 cr, Q3FY23: ₹ 51 cr, FY23: ₹ 973 cr, FY22: ₹ 1,165) Fee and Services 1,928 1
Slide 8: Asset Quality
Asset Quality ₹ cr 31-Mar-23 31-Mar-22 31-Dec-22 GNPA 5,768 6,470 5,995 NNPA 1,193 1,737 1,345 ₹ 823 cr (0.3% of Net Advances), GNPA (%) 1.78% 2.34% 1.90% 24 bps (incl std prov; excl (₹ 748 cr Q3FY23), reversal of COVID & NNPA (%) 0.37% 0.64% 0.43% restructuring) Of ₹ 823 cr, ₹ 218 cr got (Q3FY23: 2
Slide 9: Balance Sheet
Balance Sheet ₹ cr 31-Mar-23 31-Mar-22 31-Dec-22 ₹ cr 31-Mar-23 31-Mar-22 31-Dec-22 Capital & Reserves and Surplus 83,460 72,456 79,936 Cash, Bank and Call 32,542 42,924 26,136 Deposits 363,096 311,684 344,666 Investments 121,404 100,580 112,219 CA 70,030 64,662 63,601 Fixed rate SA 111,400 117,908
Slide 10: Customer Assets
Customer Assets ₹ cr 31-Mar-23 31-Mar-22 31-Dec-22 YoY QoQ Composition of Net Advances 31-Mar-23 Home Loans & LAP 92,731 76,077 89,112 22% 4% Floating 70% Consumer Bank WC (Secured) 30,343 26,382 28,940 15% 5% EBLR (repo-linked) 57% PL, BL and Consumer Durables 15,773 10,133 14,542 56% 8% MCLR/Base
Slide 11: Deposits
Deposits Avg Q4FY23 YoY % Q4FY22 CASA (₹ cr) 15% Current Account 58,415 50,874 CASA % 52.8% 60.7% 53.3% -4% Fixed rate SA 109,957 114,260 10,385 6,564 5,906 35% Term Deposit 166,644 123,580 111,400 114,072 117,908 70,030 Cost of SA CASA & TDs < 5 cr, Customers as on 64,662 63,601 as % of total FY23
Slide 12: Investing in Technology Backbone
Investing in Technology Backbone Architecture && Infrastructure Infrastructure Data Analytics, DIY Journeys & Architecture Talent & Culture Risk and security Automation Architecture review board established to Joint prioritization across business 15- 20 % Lift in the digital lending ensure strategic
Slide 13: Digital Highlights
Digital Highlights Lending Payments Adoption & Cross-sell API Banking YoY Growth in Digitally YoY growth in Share of Digital in new Partner and API count Sourced Business transaction volume product sales in Q4 FY23 89% of RDs and 79% of FDs 1.3x personal loan value 1.7x UPI in-app volume 59 new part
Slide 14: Digital Channels
Digital Channels Conversational Keya WhatsApp Kotak Mobile Banking App SuperAppfor all financial needs Banking Chatbot Banking Types of Service Requests / Enquiries enabled Key launches in the app in Q4 YoY queries handled successfully RM connect Web Experiences YoY Non-Financial Transactions on Net
Slide 15: Q4 launches for Merchants and Business Banking
Q4 launches for Merchants and Business Banking kotak.biz - Enriched Version Enhancing Merchant Experience Multi users functionality Merchant rewards program for POS Merchants • Simultaneous access for 6 users under the owner Vouchers/cashbacks for each goal achieved • Encourage digital payment accep
Slide 16: Kotak Securities
Kotak Securities Market ADV* (₹ ‘000 cr) ₹ cr Q4FY23 Q4FY22 Q3FY23 FY23 FY22 9,497 4,782 7,732 7,723 3,552 Total Income 581 661 646 2,474 2,502 36 42 41 48 51 76 79 82 Profit Before Tax 242 335 319 1,150 1,334 100 89 Profit After Tax 182 252 241 865 1,001 9,386 7,611 7,101 4,634 Market Share Cash* (
Slide 17: Kotak Mahindra AMC & Trustee Co.
Kotak Mahindra AMC & Trustee Co. ₹ cr Q4FY23 Q4FY22 Q3FY23 FY23 FY22 Average Assets Under Management (₹ cr) - Overall Profit Before Tax 235 136 192 713 601 Profit After Tax 192 102 150 555 454 291,595 286,478 288,669 287,058 272,938 Notes Q4FY23 Q4FY22 Q3FY23 FY23 FY22 Investment profit Equity(Ex ET
Slide 18: Assets Under Management
Assets Under Management Total: ₹ 420,880 cr Total: ₹ 382,709 cr 10% Domestic MF Equity, Domestic MF Equity, 156,382 146,062 Domestic MF Debt, Domestic MF Debt, 132,298 124,762 37% 38% 30% 35% Offshore PMS & Others, Funds, 30,057 PMS & Others, Offshore Funds, 4,452 3,809 28,456 7% 1% 1% 7% Alternate
Slide 19: Kotak Mahindra Prime
Kotak Mahindra Prime ₹ cr Q4FY23 Q4FY22 Q3FY23 FY23 FY22 Customer assets* (₹ cr) NII 438 427 420 1,695 1,457 Other Income 95 76 105 352 331 23,178 21,431 NII and Other Income 533 503 525 2,048 1,788 18,137 Profit Before Tax 300 416 302 1,110 1,180 5,614 6,093 5,552 Profit After Tax 224 313 225 829 8
Slide 20: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance ₹ cr FY23 Individual New Business Product Mix# FY23 Indian Embedded Value (IEV)* 12,511 Participating Products 29.6% Value of New Business (VNB) * 1,373 Non-Participating Products 39.7% VNB Margin (%)* 38.8% ULIP 17.5% Annuity Products 13.2% Highlights Embedded value gr
Slide 21: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance ₹ cr Q4FY23 Q4FY22 Q3FY23 FY23 FY22 Gross written premium (₹ cr) 6,189 5,329 3,623 15,320 13,015 Capital 562 562 562 562 562 Other Reserves and Surplus 4,765 3,827 4,560 4,765 3,827 3,106 2,732 1,754 7,324 6,461 Total Premium 6,189 5,329 3,623 15,320 13,015 1,370 1,169
Slide 22: Geographical presence
Geographical presence Branches distributed across various geographies Jammu & Kashmir 03 Himachal Pradesh 13 Punjab 96 Meghalaya 01 Uttarakhand 11 Haryana 82 Assam 05 Sikkim 02 Delhi 103 Uttar Pradesh 107 Branches Branch No. of ATMs# Rajasthan 77 1,780* [No./%] Classification Bihar 24 Tripura 01 Mad
Slide 23: 811 Annual Update
811 Annual Update 29 April 2023
Slide 24: Elon Musk quote on Henry Ford
“When Henry Ford made cheap, reliable cars, people said, ‘Nah, what’s wrong with a horse?’ That was a huge bet he made, and it worked.” Elon Musk 23
Slide 25: Kotak811 overview
Quick P Kotak811 RECA India’s first downloadable, 3 minute bank accoun No minimum balance, unbundled offering A semi-autonomous, tech-powered unit, focused on exponential growth 24
Slide 26: Kotak811 Scale
Kotak811 Scale Savings Accounts 17.5 mn Paid Debit Cards 9.4 mn Mobile App MAU 8.5 mn Transaction Volume 4.0 bn 25
Slide 27: FY'23 Snapshot
FY’23 Snapshot ₹ 107 bn Savings Book Value (AMB) ₹ 7,728 bn Transaction Throughput 32% YoY* (Credit + Debit). 81% YoY 5.2 mn 3.2 mn 2.5 mn 91% Funded New Savings Accounts Paid Debit Cards Asset Units 29% YoY 46% YoY 113% YoY 26
Slide 28: 811 deposit franchise is granular & retail in nature
811 deposit franchise is granular & retail in nature 87% of deposits less than ₹500K 64% less than ₹100k Cost of SA: ~3.51% 27
Slide 29: 811's contribution to Kotak Bank's growth by volume
New Savings Account 72% UPI 72% By Volume Recurring Deposits 64% 811’s contribution to Kotak Bank’s growth in FY’23 Credit Cards 62% Debit Card 62% Trading Account 57% Insurance Policies (Non-life) 56% Personal Loan, Business Loan & Consumer Finance 55% 28
Slide 30: 811's contribution to Kotak Bank's growth by value
UPI 60% By Value Recurring Deposits 39% 811’s contribution to Kotak Bank’s growth in FY’23 Insurance Premium (Non-life) 36% Debit Card Spends 34% Personal Loan, Business Loan & Consumer Finance 32% 29
Slide 31: Fully costed Breakeven per Savings Account
Fully costed Breakeven per Savings Account has been improving along with rapid scale up of acquisition 9.4 years 7.3 years 6. 1 years 5.2 years 3.5 years FY’18 FY’19 FY’20 FY’21 FY’22 FY’23 30
Slide 32: Banking meets Technology
Banking meets Technology 8:11 Operating Framework Full stack, symbiotic, in-house English 8:11 product & engineering. Credit Card on the Fly DIY cards co-sourced with savings account, ~40% of offered Hindi customer apply. Rebuilt Cloud Acquisition Stack Intuitive, multilingual, seamless, ~20% increa
Slide 33: Business Metrics
Business Metrics
Slide 34: On-boarding (Monthly avg. in '000s)
On-boarding (Monthly avg. in ‘000s) Acquisition Full KYC Saving Accounts 628 K 527 K 367 K 342 K 435 K 243 K 338 K 203 K 212 K 191 K 168 K 136 K FY’18 FY’19 FY’20 FY’21 FY’22 FY’23 33
Slide 35: Engagement (Monthly avg. in '000s)
Engagement (Monthly avg. in ‘000s) First Funded Accounts Paid Debit Cards units Total Cross Sell units (excl. paid debit cards) 445 K 355 K 354 K 199 K 205 K 269 K 178 K 132 K 185 K 98 K 93 K 77 K 59 K 42 K 87 K 67 K 19 K 46 K FY’18 FY’19 FY’20 FY’21 FY’22 FY’23 34
Slide 36: Asset Units
Asset Units (Annual numbers in ‘000s) FY’18 70 K FY’19 251 K FY’20 254 K FY’21 228 K FY’22 1,163 K FY’23 2,473 K 35
Slide 37: Savings Book Value – AMB
Savings Book Value – AMB (March nos. in ₹ billion) 107 bn* 81 bn* 48 bn 32 bn 20 bn 8 bn MAR’18 MAR’19 MAR’20 MAR’21 MAR’22 MAR’23 36
Slide 38: March - Transaction Throughput (Credit + Debit)
March - Transaction Throughput (Credit + Debit) (In ₹ billion) 47 K Monthly Throughput / Savings A/C 42 K Monthly Throughput / Savings A/C 819 bn 520 bn 22 K Monthly Throughput / Savings A/C 255 bn 134 bn 106 bn 34 bn MAR’18 MAR’19 MAR’20 MAR’21 MAR’22 MAR’23 37
Slide 39: Kotak811 Notes
Kotak811 NOTES This presentation shows metrics for all customers with a live 811 account, including high value customers who have been “upgraded Such grouping represents a holistic picture of 811’s business impac 811 P&L accounts for these “upgraded” customers via a migration process, with an associ
Slide 40: The Transformation Continues...
The Transformation Continues... Source: Carthrottle.com 39
Slide 41: Kotak811, digital banking for a billion Indians
Kotak811, digital banking for a billion Indians 40
Slide 42: Group Profile
GROUP PROFILE 22 41
Slide 43: The Journey So far…
The Journey So far… Ability to Identify and Capitalize on Opportunities 2003 Bill Discount Auto Finance Investment IPO Mutual Funds Life Insurance* Securities BANK Banking Cherry Kotak Fyn Digital Video First Microfinance ING Vysya Merger ARC Alternate KYC International Assets Digital Bank - 811 Gen
Slide 44: Kotak - Diversified and integrated financial services
Kotak - Diversified and integrated financial services Commercial Bank & Parent Company Car Finance | Other Lending Advisory Services for Middle East Investments | Lending Advisory Services | Investments Alternate Assets Distribution Investment Banking Asset Management Stock Broking | Commodity Broki
Slide 45: Present Across the Entire Value Chain
Present Across the Entire Value Chain Deposits across all customer segments Wholesale Banking Commercial Banking Corporate & Institutional • Corporate Loans • Agriculture Finance • Trade Finance • Tractor Finance Very Large • Investment Banking • Business Banking • Commercial Vehicles • Commercial R
Slide 46: Our Strengths
Our Strengths An integrated financial Healthy asset Digital & Ability to identify Strong brand Strong governance services conglomerate quality & prudent technological and capitalize on and leadership culture and an with a diversified risk management capabilities opportunities across businesses exper
Slide 47: Our Strategy
Our Strategy Keep customer at the core of the Investing in technology (both infrastructure Continue journey on best in class digital business in order to provide and applications), with a dual objective – processes and interface at speed a positive experience and build ‘run the Bank’ and ‘change the
Slide 48: The Path of Leadership
The Path of Leadership Strong Capital Position Multiple Growth Engines Risks Management Attract & Retain Talent Cross Sell Opportunities Capital adequacy amongst A stable annuity flow driven Extensive on-the-ground High degree of stability Robust bank platform and the highest in the Indian business
Slide 49: Strong and Committed Leadership Team
Strong and Committed Leadership Team Senior Leadership Team with Long Vintage Dipak Gupta KVS Manian WTD Shanti Ekambaram Virat Diwanji Jaimin Bhatt Paul Parambi 31 Years 28 Years 32 Years 19 Years 28 Years 31 Years Joint Managing Whole-time Director Consumer Banking Group CFO Chief Risk Officer Who
Slide 50: Disclaimer
Disclaimer This presentation is for information purposes only and Equity 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 connect
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