Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q1 FY2020 Earnings Presentation
36 slides from Kotak Mahindra Bank's earnings presentation, Jul 23, 2019
Slide 1: Cover letter to stock exchanges
e kotak Kotak Mahindra Bank 23rd July 2019 The Manager The Manager Corporate Relationship, National Stock Exchange of India Ltd. BSE Limited, Exchange Plaza, 1st Floor, New Trading Ring, 5th Floor, Rotunda Building, Plot No.C/1, G Block, Phiroze J eejeebhoy Towers, Bandr:a-Kurla Complex, Dalal Stree
Slide 2: Investor Presentation Q1FY20
INVESTOR PRESENTATION Q1FY20
Slide 3: Standalone Highlights Q1FY20
Standalone Highlights Q1FY20 PAT NIM* LOANS NET NPA ` 1,360 cr 4.49% ` 208,030 cr 0.73% [` 1,025 cr] [4.28%] [` 176,927 cr] [0.86%] TOTAL CAR BRANCHES CASA ASSETS 17.8% [18.3%] Tier I 1,503 ` 315,109 cr 17.3% [1,391] 50.7% [` 271,489 cr] [50.3%] [17.6%] Figures in [brackets] are Q1FY19 numbers * Doe
Slide 4: Profit and Loss Account
Profit and Loss Account ` cr Q1FY20 Q1FY19 Q4FY19 FY19 Net Interest Income 3,173 2,583 3,048 11,259 Other Income 1,305 1,165 1,270 4,604 Fee and Services 1,150 989 1,187 4,233 Others 155 176 83 371 Net Total Income 4,478 3,748 4,318 15,863 Employee Cost 902 720 857 3,159 Other Operating Expenses 1,1
Slide 5: Advances
Advances 30-Jun-19 (` 208,030 cr) Advances ` cr 30-Jun-19 30-Jun-18 31-Mar-19 Corporate & Business 81,418 75,799 80,104 Banking CV/CE 19,910 16,024 19,706 Agriculture Division 25,986 21,249 26,991 Home Loans and 42,243 34,005 40,722 LAP Small Business, PL & 33,719 26,210 33,164 Credit Cards Others 4
Slide 6: Asset Quality & Specific Sectors Exposure
Asset Quality & Specific Sectors Exposure Asset Quality ` cr 30-Jun-19 30-Jun-18 31-Mar-19 SMA2 outstanding - ` 332 cr GNPA 4,614 3,899 4,468 0.16% of net advances NNPA 1,524 1,527 1,544 GNPA (%) 2.19% 2.17% 2.14% NNPA (%) 0.73% 0.86% 0.75% PCR (excl technical w/off) 67.0% 60.8% 65.4% Specific S
Slide 7: Deposits
Deposits CASA (` cr) Highlights CASA 50.7% 50.3% 52.5% % CASA and TDs below ` 5 cr constitute 82% (PY: 79%) of total deposits TDs below ` 1 cr were ` 60,003 cr (PY: ` 46,347 cr) TD Sweep: 7.0% (PY: 6.9%) of total deposits Cost of SA for Q1FY20: 5.51% 1,503 branches as on 30th Jun, 2019 YoY
Slide 8: Balance Sheet
Balance Sheet ` cr 30-Jun-19 30-Jun-18 31-Mar-19 Capital & Reserves and Surplus 44,290 38,538 42,898 Deposits 232,931 189,744 225,880 CA 36,543 28,742 38,901 SA 81,580 66,621 79,685 Term Deposits 114,808 94,381 107,294 Of which: TD Sweep 16,375 13,111 14,777 Borrowings 27,242 33,494 32,249 Other Lia
Slide 9: Digital Platforms
Digital Platforms Kotak mobile banking App one of the top rated among banking Apps in India (4.8 in Apple Store & 4.5 in Google Playstore) New Features Q1FY20 • Customer Support for Delivery tracking on Keya Chatbot • Recurring Deposit • Siri integration in Mobile Banking for checking Account Balanc
Slide 10: Digital Payments & Open Banking
Digital Payments & Open Banking Key Highlights Key Trends Open Banking has enabled 34 API relationships ~3X growth of volumes over Q1FY19 in Q1FY20 Recognised as a WINNER for Best Digital API by IAMAI 20% growth of registered AEPS Agent base in Q1FY20 v/s Q4FY19 Consumer UPI P2M (Peer to Merchant) C
Slide 11: Digital Update – Subsidiaries
Digital Update – Subsidiaries Kotak Securities 121% 168% growth YoY in 55% growth growth YoY in YoY in Mobile Mobile Total Online Total Cash ADV ADV ADV Kotak Life Insurance Kotak General Insurance 82% Individual Policies sourced in Q1FY20 through Genie (Tablet based end to end sales solution) Lau
Slide 12: Consolidated Highlights Q1FY20
Consolidated Highlights Q1FY20 PAT CAR LOANS BOOK VALUE 18.4% PER EQ. [18.5%] SHARE ` 1,932 cr Tier I ` 244,990 cr ` 312.8 [` 1,574 cr] 17.9% [` 213,362 cr] [` 273.5] [18.0%] NIM* CAPITAL & NET NPA TOTAL RESERVES ASSETS 4.44% ` 60,231 cr 0.71% ` 398,665 cr [4.23%] [` 52,124 cr] [0.77%] [` 345,021 cr
Slide 13: Consolidated PAT
Consolidated PAT ` cr Q1FY20 Q1FY19 Q4FY19 FY19 Kotak Mahindra Bank 1,360 1,025 1,408 4,865 Kotak Mahindra Prime 153 139 164 599 Kotak Mahindra Investments 63 48 73 207 Kotak Securities 110 130 111 452 Kotak Mahindra Capital 45 25 21 63 Kotak Mahindra Life Insurance 134 117 138 507 Kotak AMC and TC
Slide 14: Entity wise Capital & Reserves and Surplus
Entity wise Capital & Reserves and Surplus ` cr 30-Jun-19 30-Jun-18 31-Mar-19 Kotak Mahindra Bank 44,290 38,538 42,898 Kotak Mahindra Prime 5,568 4,955 5,416 Kotak Mahindra Investments 1,652 1,431 1,590 Kotak Securities 4,089 3,656 3,979 Kotak Mahindra Capital 588 534 572 Kotak Mahindra Life Insuran
Slide 15: Consolidated Advances
Consolidated Advances 30-Jun-19 (` 244,990 cr) Consolidated Advances ` cr 30-Jun-19 30-Jun-18 31-Mar-19 Corporate & 92,092 84,294 90,273 Business Banking CV/CE 19,910 16,024 19,706 Agriculture 25,986 21,249 26,991 Division Auto loans 19,574 20,431 20,297 Home Loans and 42,243 34,005 40,722 LAP Small
Slide 16: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance Gross Written Premium (` cr) Highlights 1,640 1,188 3,427 8,168 Gross Written Premium growth 38.1% YoY New Business Premium growth 42.3% YoY Renewal Premium growth 32.8 YoY AUM (incl shareholders’) as on Jun 30, 2019: ` 31,920 cr, growth of 23.6% YoY 13th & 61
Slide 17: Kotak Securities
Kotak Securities Market ADV (` ‘000 cr) ADV (` cr) - KS 1,269 871 1,049 993 ` cr Q1FY20 Q1FY19 Q4FY19 FY19 Total Income 411 415 396 1,582 Profit Before Tax 168 196 165 680 Profit After Tax 110 130 111 452 Market Share* (%) (YTD) 1.7 1.7 2.6 2.6 *excluding BSE Derivative segment Market Share in Cash
Slide 18: Kotak Mahindra Capital Company
Kotak Mahindra Capital Company Equity Advisory VODAFONE IDEA LIMITED Sale of Cancer Treatment Services # Rights Issue International by AHH to Varian Medical Systems ` 25,000 cr ` 1,980 cr GODREJ PROPERTIES LIMITED Acquisition of Praxair's eastern India # Qualified Institutional Placement business by
Slide 19: AUM & RV
AUM & RV Jun 30, 2019 Jun 30, 2018 19% AUM ` 236,798 cr AUM ` 199,193 cr Relationship Value of Wealth + Priority as at Jun 30, 2019 ~ ` 280,000 cr (PY: ~ ` 254,000 cr) 18
Slide 20: Kotak Mahindra AMC & Trustee Co.
Kotak Mahindra AMC & Trustee Co. Average Assets Under Management (` cr) - Overall Average Assets Under Management (` cr) - Equity ` cr Q1FY20 Q1FY19 Q4FY19 FY19 Highlights Overall Ranking on AAUM improved to Profit Before Tax 111 77 116 388 6th in Q1FY20 (Q1FY19: 7th) Profit After Tax 73 51 75 255
Slide 21: Kotak Mahindra Prime
Kotak Mahindra Prime Customer Assets* (` cr) & NNPA (%) ` cr Q1FY20 Q1FY19 Q4FY19 FY19 NII 299 272 292 1,104 Other Income 63 57 85 288 NII and Other Income 362 329 377 1,392 Profit Before Tax 235 214 240 905 Profit After Tax 153 139 164 599 CAR (%) (incl unaudited profits) 20.1% ROA (%) - annualised
Slide 22: Kotak Mahindra Investments
Kotak Mahindra Investments Customer Assets* (` cr) & NNPA (%) ` cr Q1FY20 Q1FY19 Q4FY19 FY19 NII 87 72 92 293 Other Income 27 16 43 94 NII and Other Income 114 88 135 387 Profit Before Tax 94 74 111 316 Profit After Tax 63 48 73 207 CAR (%) (incl unaudited profits) 19.4% ROA (%) - annualised 2.5% *
Slide 23: Geographical Presence
Geographical Presence Branches 1,503 [No./%] 2 North 10 479/32% 82 10 65 West East 98 465/31% 88/6% 1 76 63 4 22 1 South 471/31% 1 143 45 9 39 21 Branch Classification 2 18 313 86 7 106 No of ATMs 161 86 2,394 32 22
Slide 24: Group Profile
GROUP PROFILE
Slide 25: The Journey So far…
The Journey So far… Acquired Acquired Bill Investment Mutual Alternate Scheme of BSS Discount Banking Fund Securities Assets Pinebridge MF Microfinance 1985 1991 1998 2001 2004 2014 2017 1990 1993 2000 2003 2008 2015 Auto IPO Life BANK ARC ING Vysya Finance Insurance Merger Kotak Mahindra General In
Slide 26: Kotak - Concentrated India; Diversified Financial Services
Kotak - Concentrated India; Diversified Financial Services KOTAK MAHINDRA BANK Commercial Bank & Holding Company Kotak Kotak Mahindra Kotak Investment Kotak Mahindra Mahindra Kotak Securities Investments Advisors Capital Company Prime ∞ Car Finance ∞ Investments ∞ Alternate Assets ∞ Investment ∞ Sto
Slide 27: Present Across the Entire Value Chain
Present Across the Entire Value Chain Platform with Wide Product Portfolio Corporate Banking Commercial Banking Consumer Banking Non-Banking ∞ Corporate Loans ∞ Agriculture Finance ∞ Auto Loans ∞ Mutual Funds ∞ Trade Finance ∞ Tractor Finance ∞ Home loans, LAP ∞ Alternate Assets ∞ Commercial Real Es
Slide 28: Kotak Uniqueness – Strengths
Kotak Uniqueness – Strengths An integrated Ability to Prudent risk Strong brand Strong and identify and management and governance diversified capitalise on capabilities leadership in culture with business opportunities various experienced model businesses management ∞ Balance sheet, ∞ Relative ∞ Gui
Slide 29: 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 30: Bank Awards & Recognition
Bank Awards & Recognition Banker’s Choice Awards 811 & Biometric-Most - Best Cash Mgt Bank Innovative Product - Best Supplier IBAs Banking Technology Relationship Mgt Awards 2018 - Best E-commerce Initiative, Application Voice Bot (Keya) one of the or Programme: “Kotak Best 50 Innovative ALLPAY” Mag
Slide 31: Awards and Recognition
Awards and Recognition Thomson Reuters Lipper India 2019 fund Awards – India Fund Award for Kotak Equity Arbitrage Fund Regular Plan–Growth Option (5 yrs & 10 yrs) Euromoney Private Banking CNBC TV 18 for the year 2018: and Wealth Management 2019 Finance Asia Country Awards • Best Mutual Fund House
Slide 32: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work DIPAK GUPTA Joined Kotak in 1992; First charge | Senior Manager, Kotak Mahindra Finance Current charge | Joint Managing Director, Kotak Mahindra Bank On being a professional entrepreneur | I used to be an engineer and then a consultant. My first job a
Slide 33: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work D.KANNAN Joined Kotak in 1991; First charge | Assistant Manager, Kotak Mahindra Finance Current charge | President - Commercial Banking, Kotak Mahindra Bank On being a professional entrepreneur | Joined Kotak Mahindra Finance as Assistant Manger and w
Slide 34: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work JAIDEEP HANSRAJ Joined Kotak in 1993; First charge | Assistant Manager, Kotak Mahindra Finance Current charge |CEO – Wealth Management & Priority Banking, Kotak Mahindra Bank On being a professional entrepreneur My first job at Kotak was to garner lia
Slide 35: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work NARAYAN S.A. Joined Kotak in 1991; First charge | Associate Vice President, Kotak Mahindra Finance (Operations); Current charge | President – Group Treasury, Kotak Mahindra Bank On being a professional entrepreneur | In 1996, broking was largely seen
Slide 36: 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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