Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q3 FY2009 Earnings Presentation
32 slides from Kotak Mahindra Bank's earnings presentation, January 2009
Slide 1: January 2009
January 2009 1
Slide 2: Table of Contents
Table of Contents ∞ Overview of Kotak Group Section I ∞ Overview of Kotak Group Businesses Section II ∞ Financial Summary Section III 2
Slide 3: Section I: Overview of Kotak Group
Section SectionII::Overview Overview of of Kotak KotakGroup Group 3
Slide 4: Journey so far..
Journey so far.. Restructuring Ford & Goldman JVs BANK Life Insurance San Old Mutual JV Francisco Stock Broking Singapore Mutual Fund Ford Credit JVs Goldman Sachs JVs IPO Investment New York Banking Auto Dubai Finance London Trade Finance 1986 1990 1991 1992 1995 1996 1998 2001 2003 2006 2007 2008
Slide 5: Group Structure
Group Structure…. Corporate Banking Treasury Retail Liabilities & Branch Banking Wealth Management Retail Lending *100% *100% 100% *100% 100% 100% *74% Kotak Kotak Mahindra Kotak Kotak Kotak Kotak Asset Mahindra Old Mahindra Kotak Mahindra Mahindra Mahindra Management Mutual Life Capital Securities
Slide 6: Integrated Financial Services
Integrated Financial Services Retail Bank Investment Life Insurance Services Corporate & Investment Bank 6
Slide 7: Business Overview
Business BusinessOverview Overview 7
Slide 8: Lending
Lending Total Retail Advances (Rs bn) ∞ Retail & commercial lending 250 196 200 200 185 Over 80% of advances (Q2FY09 88% of 150 132 (Rs. Bn) advances). 100 91 62 Going slow on retail advances 50 0 More focus on corporate. FY0 5 FY0 6 FY0 7 FY0 8 YTD FY0 8 YTD FY0 9 ∞ YTDFY09 NIM - 6% (Among the high
Slide 9: Retail Liabilities: Branches and ATMs Footprint
Retail Liabilities Footprint ∞ Concentrated ∞ Concentrated focus focus on on Top Top cities cities 200 Branches 375 400 45% 45% of of branches branches are are in in the the top top 10 10 cities cities 180 ATMs 350 ATM ATM expansion expansion concentrated concentrated in in 55 cities cities 160 313
Slide 10: Retail Liabilities (Cont'd.)
Retail Liabilities (Cont’d.) Deposit Accounts CA / SA Balance* 1,100,000 1,031,000 30,000 Savings Account Balance 1,000,000 Current Account Balance 27,335 900,000 25,000 800,000 749,000 23,105 700,000 15,919 20,000 15,175 (Nos.) 600,000 (Nos.) 500,000 15,000 400,000 350,000 8,877 13,600 300,000 10,0
Slide 11: Asset Management: Segment Overview
Asset Management Segment Overview ∞ Over US$ 6.6 bn of assets managed / advised through mutual funds, insurance, portfolio management & offshore funds (including alternate assets) – 58% in equity Alternate Assets commitments - US$1.3 bn Assets Under Management* Equity AUM – December 08 10.0 8.8 Insu
Slide 12: Mutual Fund
Mutual Fund ∞ AUM as on December 2008 ~ Rs Assets Under Management (Rs bn) 138 bn 180 Equity Debt 150 ∞ Equity AUM of Rs 28 bn 120 111 (Rs bn) ∞ 1,155,000 investors. 90 110 95 73 60 ∞ 89 branches 54 30 51 31 27 28 13 - FY05 FY06 FY07 FY08 YTDFY09 Investment Services 12
Slide 13: Portfolio Management Services
Portfolio Management Services ∞ AUM as on December 2008 ~ Assets Under Management (Rs bn) Rs 23 bn 40 35 ∞ Caters to middle and high 30 networth clientele 25 (Rs. Bn) 20 34 ∞ Awarded "Best Provider of 15 26 23 23 Portfolio Management : 10 18 Equities" by Euromoney for 5 the year 2007, 2006 0 FY05 FY
Slide 14: Alternate Assets
Alternate Assets Total commitments - US$ 1.3 bn (Rs. 62 bn) Private Equity Funds Realty Funds ∞ India Growth Fund ∞ Kotak India Real Estate Fund – I Commitments - Rs 7.1bn Commitments - Rs 4.6 bn Invested in 15 companies Invested in 11 companies ∞ Kotak India Venture Fund I (Focused on ∞ Kotak Alter
Slide 15: International Subsidiaries
International Subsidiaries Global Presence ∞ Business Investment management / advisory Financial intermediary Management of GDR, ADR and FCCB San Francisco London ∞ Equity assets managed / advised: US$ 1.3 bn New York Singapore Including an Australian listed fund, SICAV fund and Shariah compliant fu
Slide 16: Broking
Broking Total Income Net Profit 14,000 13,300 4,500 4,087 12,000 4,000 3,500 10,000 8,339 3,000 2,557 (Rs. mn) (Rs. mn) 8,000 2,500 2,155 6,207 6,000 5,246 2,000 1,500 1,056 4,000 3,297 885 1,000 2,000 500 - - FY05 FY06 FY07 FY08 YTDFY09 FY05 FY06 FY07 FY08 YTDFY09 Networth ∞ Best Local Brokerage Fi
Slide 17: Broking: Volumes and Research Coverage
Broking Average Daily Volumes (Rs bn) 60 53 ∞ Market share 5.5% of total 50 average daily volumes– 40 37 35 (Rs. bn) YTDFY09 30 24 20 ∞ Average Daily volume for 10 7 11 YTDFY09 ~ Rs 35.2 billion 2 - FY03 FY04 FY05 FY06 FY07 FY08 YTDFY09 ∞ Around 4,80,000 secondary Research Coverage market customers
Slide 18: Broking - Footprint
Broking - Footprint Branches & Franchisee ∞ Operating through a branch and 1,000 877 franchisee model 900 813 800 744 700 660 600 ∞ As on December 08 (Nos.) 500 500 400 276 300 Branches – 227 200 100 - FY04 FY05 FY06 FY07 FY08 YTDFY09 Franchisee - 517 Cities covered 350 309 299 300 277 250 232 200 (
Slide 19: Corporate Banking: An Integrated Approach
Corporate Banking An “integrated” approach K N BA NT ∞ Investment Banking products – Equity and M&A ∞ Treasury solutions – Fixed Income, Structured products ME Super ∞ Investment products ST Large ∞ Supply chain solutions E INV ∞ I-Banking products ∞ Investment products TE Large ∞ Treasury solutions
Slide 20: Investment Banking – Equity Capital Markets
Investment Banking – Equity Capital Markets India Domestic IPOs (No. 1 for FY 08) ∞ Won “India Equity House of the year 2008” award from IFR Asia. 350 325 19 ∞ Won “Best Domestic Investment Bank 300 275 Issues 2008” award from Triple A Country 250 232 Awards. 214 210 (Rs. bn) 200 ∞ Named “Best Inves
Slide 21: Dominant Equity Franchise
Dominant Equity Franchise Kotak was involved in 13 out of 20 largest Indian Offerings from FY 2000 till Date 180.00 167.0 Kotak Lead Managed Equity Offerings 160.00 140.00 115.6 120.00 105.4 100.6 (Rs. bn) 100.00 91.9 80.00 57.9 57.5 54.2 53.7 60.00 39.7 40.00 32.5 31.2 29.8 27.0 24.4 21.8 21.0 19.0
Slide 22: Investment Banking – Mergers & Acquisitions
Investment Banking – Mergers & Acquisitions #1 in value of announced M&A Transactions in Major Announced Deals in FY08 India – Indata* for CY07 16.0 Rs. 33,000 mn Rs 21,000 mn 14.2 14.0 12.2 12.0 11.2 10.0 (US$ bn) Acquisition of 50% stake in My Home Demutualization of Bombay Stock 8.0 Industries Ex
Slide 23: Strong Focus on Financial Sponsors
Strong Focus on Financial Sponsors Transaction Client Transaction Investors size PE investment Various entities US$500 mn Majority buyout Goldman Sachs US$172 mn Buyout, open offer Blackstone US$165 mn Private placement Morgan Stanley Real Estate US$ 152 mn Preferential allotment Blackstone US$150 m
Slide 24: Life Insurance
Life Insurance ∞ Total premium up to Rs 5,116 mn in Q3FY09 from Rs 4,181 mn in Q3FY08. ∞ First year regular premium income was Rs 2,670 mn in Q3FY09. ∞ Group synergies contribute to growth. ∞ Capability 5,500 employees 44,400 life advisors 100 corporate agents; 160 brokers; 200 direct sales agents ∞
Slide 25: Life Insurance (Cont'd.)
Life Insurance (Cont’d.) Premium Income No. of Branches 18,000 First year regular premium 250 16,000 Single Premium Renewal Premium 197 14,000 200 12,000 10,456 150 (Rs. mn) 10,000 8,304 150 (Nos.) 8,000 5,530 100 6,000 610 5,234 418 74 4,000 3,427 44 45 1,893 619 354 50 534 5,845 5,651 2,000 1,847
Slide 26: Financial Summary
Financial FinancialSummary Summary 26
Slide 27: Financial Snapshot
Financial Snapshot Consolidated Net Profit (Rs mn) Consolidated Net Worth (Rs mn) 12,000 70,000 63,266 9,912 58,239 10,000 60,000 8,000 50,000 (Rs. mn) (Rs. mn) 40,000 6,000 5,382 32,330 4,417 30,000 3,425 22,471 4,000 20,000 14,668 1,742 1,709 12,334 2,000 10,000 - - FY04 FY05 FY06 FY07 FY08 YTDFY0
Slide 28: Key Metrics & Ratios - Consolidated
Key Metrics & Ratios - Consolidated Q3FY09 Q2FY09 YTDFY09 Q3FY08 YTDFY08 FY08 Rs mn (3m) (2m) (9m) (3m) (9m) (12m) PBT** 2,604 3,256 9,416 5,890 12,725 16,322 PBT 2,028 2,505 6,859 5,167 10,640 14,079 PAT 1,309 1,610 4,417 3,637 7,511 9,912 AUM (Rs bn) 319 372 319 460 460 365 Advances 238,652 240,26
Slide 29: Consolidated PAT
Consolidated PAT Q3FY09 Q2FY09 YTDFY09 Q3FY08 YTDFY08 FY08 Rs mn (3m) (3m) (9m) (3m) (9m) (12m) Kotak Mahindra Bank 711 479 1,735 1,017 2,247 2,939 Kotak Mahindra Prime 333 354 1,100 374 703 1,006 Kotak Mahindra Capital Company (19) 89 167 216 900 1,153 Kotak Securities 40 410 885 1,467 3,076 4,087
Slide 30: Key Metrics – Bank Standalone
Key Metrics – Bank Standalone Q3FY09 Q2FY09 YTDFY09 Q3FY08 YTDFY08 Rs mn FY08 (3m) (3m) (9m) (3m) (9M) Net Interest Income 3,826 3,655 11,006 3,474 8,350 12,258 PBT 1,093 747 2,659 1,413 3,162 3,978 PAT 711 479 1,735 1,017 2,247 2,939 Rs % December 31, 2008 September 30, 2008 December 31, 2007 March
Slide 31: Bank Standalone – Segmental
Bank Standalone – Segmental Q3FY09 Q2FY09 YTDFY09 Q3FY08 YTDFY08 FY08 Rs mn (3m) (3m) (9m) (3m) (9m) (12m) Lending 589 1,018 2,934 1,163 2,198 3,477 Credit Cards (147) (217) (488) - - (77) Corporate Banking 508 437 1,252 527 1,481 2,026 Retail Liabilities (532) (597) (1,847) (517) (1,356) (1,467) Tr
Slide 32: 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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