Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q4 FY19 Earnings Presentation
39 slides from Kotak Mahindra Bank's earnings presentation, May 2, 2019
Slide 1: Cover letter to stock exchanges
ekotak Kotak Mahindra Bank 2'dMay 2019 The Manager The Manager Corporate Relationship, National Stock Exchange of India Ltd. ESE Limited, Exchange Plaza, 1'' Floor, New Trading Ring, 5th Floor, Rotunda Building, Plot No.C/1, G Block, Phiroze ,Jeejeebhoy Towers, Bandra-Kurla Complex, Dalal Street, Ba
Slide 2: Investor Presentation Q4FY19
INVESTOR PRESENTATION Q4FY19
Slide 3: Standalone Highlights Q4FY19
Standalone Highlights Q4FY19 PAT NIM* LOANS NET NPA ` 1,408 cr 4.48% ` 205,695 cr 0.75% [` 1,124 cr] [4.33%] [` 169,718 cr] [0.98%] TOTAL CAR BRANCHES CASA ASSETS 17.5% [18.2%] Tier I ` 312,172 cr 16.9% 1,500 52.5% [` 264,933 cr] [1,388] [50.8%] [17.6%] Figures in [brackets] are Q4FY18 numbers * Doe
Slide 4: Profit and Loss Account
Profit and Loss Account ` cr Q4FY19 Q4FY18 Q3FY19 FY19 FY18 Net Interest Income 3,048 2,580 2,939 11,259 9,532 Other Income 1,270 1,151 964 4,604 4,052 Fee and Services 1,187 1,009 1,038 4,233 3,454 Others 83 142 (74) 371 598 Net Total Income 4,318 3,731 3,903 15,863 13,584 Employee Cost 857 766 837
Slide 5: Presentation in P&L of Investment Depreciation
Presentation in P& L of Investment Depreciation In accordance with RBI communication, provision for mark-to-market depreciation on AFS and HFT investments continue to be presented under Provisions & Contingencies ` cr (As reported) Q4FY19 Q4FY18 Q3FY19 FY19 FY18 Other Income 1,270 1,151 964 4,604 4,
Slide 6: Advances
Advances 31-Mar-19 (` 205,695 cr) Advances ` cr 31-Mar-19 31-Mar-18 31-Dec-18 Corporate Banking 61,889 52,133 62,972 CV/CE 19,706 15,202 17,999 Agriculture Division 26,991 22,916 23,742 Business Banking 18,215 18,269 18,012 Home Loans and LAP 40,722 32,429 38,305 Small Business, PL & 33,164 25,129 3
Slide 7: Asset Quality & Specific Sectors Exposure
Asset Quality & Specific Sectors Exposure Asset Quality ` cr 31-Mar-19 31-Mar-18 31-Dec-18 SMA2 outstanding - ` 138 cr GNPA 4,468 3,825 4,129 0.07% of net advances NNPA 1,544 1,665 1,397 GNPA (%) 2.14% 2.22% 2.07% NNPA (%) 0.75% 0.98% 0.71% PCR (excl technical w/off) 65.4% 56.5% 66.2% (%) Specif
Slide 8: Deposits
Deposits CASA (` cr) Highlights CASA 52.5% 50.8% 50.7% % CASA and TDs below ` 5 cr constitute 81% (PY: 77%) of total deposits TDs below ` 1 cr were ` 55,279 cr (PY: ` 41,934 cr) TD Sweep: 6.5% (PY: 6.2%) of total deposits Cost of SA for Q4FY19: 5.66% 1,500 branches as on 31st Mar, 2019 YoY
Slide 9: Balance Sheet
Balance Sheet ` cr 31-Mar-19 31-Mar-18 31-Dec-18 Capital & Reserves and Surplus 42,898 37,482 41,426 Deposits 225,880 192,643 213,804 CA 38,901 32,246 31,745 SA 79,685 65,529 76,679 Term Deposits 107,294 94,868 105,380 Of which: TD Sweep 14,777 11,910 14,423 Borrowings 32,249 25,154 29,129 Other Lia
Slide 10: 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) Q4FY19 New Features Enhanced User Interface for Keya chat bot & handling • Recurring Deposit 86% sourced digitally queries for Personal Loan, Bill Payment, and F
Slide 11: Digital Payments & Open Banking
Digital Payments & Open Banking Key Highlights : Key Trends : ~100Mn transactions processed in Q4’19 Open Banking has enabled 5X growth over Q4’18 70+ API relationships in FY19 ~12Mn AEPS transactions processed in 1st year of launch with GTV of 800Cr+ More than 50% Partners are LIVE and transacting
Slide 12: Digital Lending Business – Consumer
Digital Lending Business – Consumer Credit Card 2.4x YOY increase for digital card acquisition 1.5x YOY increase for digital salaried personal loan disbursed Personal Loan 32% Total digital contribution of salaried personal loans Home Loan 5x YOY increase in acquiring home loans digitally Business L
Slide 13: Digital Update – Subsidiaries
Digital Update – Subsidiaries Kotak Securities 121% 58% growth 29% growth growth YoY in YoY in Online YoY in Mobile Mobile Total Total ADV Cash ADV ADV Kotak Life Insurance Kotak General Insurance 88% Individual Policies sourced in Q4FY19 through Genie (Tablet based end to end sales solution) 123% 2
Slide 14: Consolidated Highlights Q4FY19
Consolidated Highlights Q4FY19 PAT CAR LOANS BOOK VALUE 17.9% PER EQ. [18.4%] SHARE ` 2,038 cr Tier I ` 243,462 cr ` 302.7 [` 1,789 cr] 17.4% [` 205,997 cr] [` 264.9] [17.8%] NIM* CAPITAL & NET NPA TOTAL RESERVES ASSETS 4.46% ` 58,280 cr 0.70% ` 395,171 cr [4.29%] [` 50,486 cr] [0.86%] [` 337,720 cr
Slide 15: Consolidated PAT
Consolidated PAT ` cr Q4FY19 Q4FY18 Q3FY19 FY19 FY18 Kotak Mahindra Bank 1,408 1,124 1,291 4,865 4,084 Kotak Mahindra Prime 164 160 139 599 590 Kotak Mahindra Investments 73 95 40 207 245 Kotak Securities 111 134 99 452 531 Kotak Mahindra Capital 21 25 3 63 65 Kotak Mahindra Life Insurance 138 114 1
Slide 16: Entity wise Capital & Reserves and Surplus
Entity wise Capital & Reserves and Surplus ` cr 31-Mar-19 31-Mar-18 31-Dec-18 Kotak Mahindra Bank 42,898 37,482 41,426 Kotak Mahindra Prime 5,416 4,816 5,251 Kotak Mahindra Investments 1,590 1,382 1,516 Kotak Securities 3,979 3,527 3,867 Kotak Mahindra Capital 572 559 551 Kotak Mahindra Life Insuran
Slide 17: Consolidated Advances
Consolidated Advances 31-Mar-19 (` 243,462 cr) Consolidated Advances ` cr 31-Mar-19 31-Mar-18 31-Dec-18 Corporate Banking 72,058 60,420 72,355 CV/CE 19,706 15,202 17,999 Agriculture 26,991 22,916 23,742 Division Business Banking 18,215 18,269 18,012 Auto loans 20,297 20,175 20,225 Home Loans and 40,
Slide 18: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance ` cr FY19 Individual New Business FY19 Indian Embedded Value (IEV)* 7,306 Product Mix# 799 Participating Products 35% Value of New Business (VNB) VNB Margin (%) 36.9% Non-Participating Products 40% ULIP 25% Highlights Channel Mix FY19 Individual Conservation ratio: 86
Slide 19: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance New Business Premium (` cr) Highlights 1,604 1,404 890 3,977 3,404 Gross Total Premium up 23.7% over FY18 Renewal Premium up 31.2% over FY18 AUM as on 31st Mar 19: 28,000 cr, a growth of 21% YoY 13th & 61st Month persistency increased to 87.2% and 62.1% respecti
Slide 20: Kotak Securities
Kotak Securities Market ADV (` ‘000 cr) ADV (` cr) - KS 1,049 864 1,019 993 704 ` cr Q4FY19 Q4FY18 Q3FY19 FY19 FY18 Total Income 396 448 363 1,582 1,655 Profit Before Tax 165 201 149 680 796 Profit After Tax 111 134 99 452 531 Market Share* (%) (YTD) 2.6 1.9 2.9 2.6 1.9 *excluding BSE Derivative seg
Slide 21: Kotak Mahindra Capital Company
Kotak Mahindra Capital Company Equity Advisory EMBASSY OFFICE PARKS REIT Buyback Offer to the shareholders of # Initial Public Offering Infosys ` 3,874 cr ` 8,260 cr DLF LTD. Buyback Offer to the shareholders of # Qualified Institutions Placement Tech Mahindra ` 3,173 cr ` 1,956 cr WIPRO LIMITED Sal
Slide 22: Assets Under Management
Assets Under Management Mar 31, 2019 Mar 31, 2018 23% AUM ` 225,274 cr AUM ` 182,519 cr 21
Slide 23: Kotak Mahindra AMC & Trustee Co.
Kotak Mahindra AMC & Trustee Co. Average Assets Under Management (` cr) - Overall Average Assets Under Management (` cr) - Equity ` cr Q4FY19 Q4FY18 Q3FY19 FY19 FY18 Highlights Equity AAUM market share rose to Profit Before 116 58 115 388 170 5.52% in Q4FY19 (Q4FY18: 4.88%) Tax Profit After Over
Slide 24: Kotak Mahindra Prime
Kotak Mahindra Prime Customer Assets* (` cr) & NNPA (%) ` cr Q4FY19 Q4FY18 Q3FY19 FY19 FY18 NII 292 280 274 1,104 1,115 Other Income 85 74 56 288 256 NII and Other Income 377 354 330 1,392 1,371 Profit Before Tax 240 244 213 905 902 Profit After Tax 164 160 139 599 590 CAR (%) 19.4 ROA (%) - annuali
Slide 25: Kotak Mahindra Investments
Kotak Mahindra Investments Customer Assets* (` cr) & NNPA (%) ` cr Q4FY19 Q4FY18 Q3FY19 FY19 FY18 NII 92 78 68 293 304 Other Income 43 75 12 94 122 NII and Other Income 135 153 78 387 426 Profit Before Tax 111 138 61 316 367 Profit After Tax 73 95 40 207 245 CAR (%) 18.4 ROA (%) - annualised 3.1 * I
Slide 26: Geographical Presence
Geographical Presence Branches 1,500 [No./%] 2 North 10 478/32% 82 10 64 West East 98 463/31% 88/6% 1 76 63 4 22 1 South 471/31% 1 142 45 9 39 21 Branch Classification 3 18 312 85 7 107 No of ATMs 161 86 2,352 32
Slide 27: Group Profile
GROUP PROFILE
Slide 28: 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 29: 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 30: 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 31: 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 32: 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 33: Bank Awards & Recognition
Bank Awards & Recognition IAMAI 9th India Digital Euromoney Awards for Awards Excellence 2018 Best Digital API – Open - India’s Best Bank Banking - Best Bank in the Emerging The Asset Triple A Digital Markets in the Euromoney Awards Regional Awards Voice Bot (Keya) one of the - Most Innovative Banke
Slide 34: Awards and Recognition
Awards and Recognition 2018 DMAI Asia Echo : • Best Use of Direct Mail Diwali – Beejbox wali Kotak Mutual Fund (Silver) Euromoney Private Banking Early adopter of Analytics CNBC TV 18 for the year 2018: and Wealth Management Machine conference 2018 • Best Mutual Fund House Survey, 2019 Ranked #1 Asi
Slide 35: 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 36: 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 37: 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 38: 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 39: 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