Kotak Mahindra Bank Limited · NSE:KOTAKBANK

Kotak Mahindra Bank — Q1 FY2012 Earnings Presentation

39 slides from Kotak Mahindra Bank's earnings presentation, Jul 21, 2011

  1. Slide 1: Quarterly Results Q1 FY12

    QUARTERLY RESULTS Q1 FY12 JULY 21 2011

  2. Slide 2: Kotak history and milestones

    @ kotak” 52004 2003 Became the first Alternate a NBFC to convert into a commercial @ bank Started Bill 0 Discounting @ 1990 Car Finance Investment Banking Life Insurance I KS becomes Subsidiary

  3. Slide 3: Geographical Presence

    Geographical Presence Wide National Footprint … .. With Multiple Points of Presence Business Branches (Jun, 11) Banking 323 Car Finance 57 Life Insurance 202 Securities 1,442 Mutual Fund 84 Total 2,108 ~ International offices situated in London, New York, California, Dubai, Abu Dhabi, Bahrain, Mauri

  4. Slide 4: Group Structure

    Group Structure Kotak Mahindra Bank • Commercial Bank & Holding Company Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Securities Trustee Old Mutual Life Capital Company Investments Prime AMC Pension Fund Company Insurance * •Investment

  5. Slide 5: Financial Summary

    FINANCIAL SUMMARY

  6. Slide 6: Consolidated Highlights (Q1 FY12)

    Consolidated Highlights (Q1 FY12) PAT Loans Net NIM 416 `cr (328 `cr) 44,699 `cr (32,978 `cr) NPA ** 5.0% Up 27% yoy Up 36% yoy 0.41% (0.95%) (5.4%) CAR Tier 1 * AUM 18.4% (16.9%) 16.9% (15.1%) 51,661 `cr (as per Basel II) (as per Basel II) (47,979 `cr) CASA 8,254 `cr (6,657 `cr) 27% of total deposi

  7. Slide 7: Consolidated Revenues

    Consolidated Revenues ` cr FY11 Q4 FY11 Q1 FY11 Q1 FY12 Financing Activities 4,551 1,304 950 1,445 Fee Income * 1,452 383 363 324 Premium Income 2,940 1,063 546 500 Treasury – Others ** 1,530 429 314 427 Others 239 76 58 83 Total Revenues 10,712 3,255 2,231 2,780 * Fee income is net of sub brokerage

  8. Slide 8: Consolidated Advances & Investments

    Consolidated Advances & Investments ` cr FY11 Jun10 Jun11 Commercial Vehicles & Construction Equipments 6,251 4,402 6,771 Agriculture Finance 4,220 2,925 4,356 Auto Loans 8,550 7,064 8,978 Mortgage Loans 6,877 5,299 7,077 Personal Loans 1,307 1,193 1,360 Corporate Banking 10,916 9,325 12,630 Others

  9. Slide 9: Consolidated PAT

    Consolidated PAT ` cr FY11 Q4 FY11 Q1 FY11 Q1 FY12 Kotak Mahindra Bank 818 249 187 252 Kotak Mahindra Prime 318 87 76 94 Kotak Securities 182 36 47 23 Kotak Mahindra Capital Company 52 30 7 1 Kotak Mahindra Old Mutual Life Insurance 101 71 (7) 46 Kotak Mahindra AMC & Trustee Co 17 4 9 9 Internationa

  10. Slide 10: Consolidated PAT – Quarterly Trend

    Consolidated PAT – Quarterly Trend 600 500 416 400 328 (`cr ) 300 257 200 146 150 104 100 - 2007 2008 2009 2010 2011 2012 Q1 Q2 Q3 Q4 ` cr 2007 2008 2009 2010 2011 2012 Q1 104 146 150 257 328 416 Q2 94 242 161 300 364 Q3 170 364 131 331 384 Q4 170 240 211 419 491 10

  11. Slide 11: Consolidated Profit (PBT) Mix

    Consolidated Profit (PBT) Mix `cr 1,883 2,273 711 504 619 6% 4% 4% 14% 4% 9% 7% 10% 4% 6% 15% 15% 14% 23% 83% 75% 72% 77% 59% -1% FY10 FY11 Q4FY11 Q1FY11 Q1FY12 Financing Capital Market Insurance Asset Management 11

  12. Slide 12: Consolidated Key Financials

    Consolidated Key Financials ` cr FY11 Q1 FY11 Q1 FY12 Deposit 27,313 22,288 29,397 Borrowings 22,073 19,241 24,620 Advances 41,242 32,978 44,699 Total Assets 73,681 61,776 78,542 Networth 10,963 8,264 11,406 AUM 47,850 47,979 51,661 12

  13. Slide 13: Consolidated Key Ratios

    Consolidated Key Ratios FY11 Q1 FY11 Q1 FY12 Return on average assets (%, not annualised) 2.39 0.56 0.55 Book value per share (`) 148.8 118.5 154.6 NIM (% - YTD annualised) @ 5.2 5.4 5.0 Group CAR (%) – $ excl. unaudited profits 19.5 16.9 $ 18.4 $ Tier I(%) - $ excl. unaudited profits 18.1 15.1 $ 16

  14. Slide 14: Business Overview

    BUSINESS OVERVIEW 14

  15. Slide 15: Financing Business

    Financing Business Advances Net Interest Income 44,699 3,000 41,242 40,000 2,500 32,978 29,724 2,000 2,233 30,000 (`cr) 1,500 (` cr) 2,680 20,000 1,000 10,000 500 725 614 742 - - FY10 FY11 Q4FY11 Q1FY11 Q1FY12 FY10 FY11 Q1FY11 Q1FY12 NII Net NPA PAT 2.5% 1,200 1,160 2.1% 2.0% 1,000 1.7% 1.5% 762 1.5

  16. Slide 16: Consumer Banking - Liabilities

    Consumer Banking - Liabilities Number of Branches & ATMs 500 Branches in CY13 350 710 725 800 300 552 700 Increased cross sell of 250 492 600 asset products 500 321 Branches 200  ATM s 323 400 150 Added close to 1 lac. 249 262 300 customer accounts 100 200 50 100 Focus on affluent - 0 segment F

  17. Slide 17: Consumer Financing

    Consumer Financing Advances break up Continue focus on 3% 3% 3% 3% Auto Sector 10% 8% 8% 7% Focus on SENP 37% 39% 38% 40% Mortgage – healthy growth over the years; present in 14 cities 50% 50% 51% 50% Unsecured loans degrown in last 3 yrs; see opportunities in FY10 FY11 Q1FY11 Q1FY12 select segm

  18. Slide 18: Commercial Financing

    Commercial Financing Advances break up Renewed growth in CE/CV 5% 4% 7% 18% 15% 19% 13% Consistent growth in 34% Agri 32% 31% 31% Priority sector target met consistently 48% 48% 46% 49% Limited exposure to MFI, 0.08% of consol FY10 FY11 Q1FY11 Q1FY12 advances CE/CV Agri Capital Market Others ` c

  19. Slide 19: Wholesale Financing

    Wholesale Financing Funded & Non funded `cr Leverage on Group relationships 12,630 10,916 Continued focus on 9,325 Trade Finance & 7,325 Transaction Banking 6,490 6,786 3,591 Continue strong 3,232 presence in debt capital markets Deepen franchise of FY10 FY11 Q1FY11 Q1FY12 large corporates & wid

  20. Slide 20: Bank – Profit and Loss

    Bank – Profit and Loss ` Cr FY11 Q4FY11 Q1FY11 Q1FY12 Net Interest Income 2,097 565 483 568 Other Income 781 248 162 229 Net Total Income 2,878 813 645 797 Employee Cost 751 218 166 206 Other Operating 802 Expenses 227 164 204 Operating Expenditure 1,553 445 330 410 Operating Profit 1,325 368 315 38

  21. Slide 21: Bank Segment Performance

    Bank Segment Performance Segmental PBT (`cr) FY11 Q4 FY11 Q1 FY11 Q1 FY12 Corporate/Wholesale Banking 544 170 105 238 Retail Banking 339 99 68 135 Treasury & BMU* 305 106 86 (9) Total 1,188 375 259 364 * Balance Sheet Management Unit 21

  22. Slide 22: Bank Advances & Investments

    Bank Advances & Investments ` cr FY11 Q1 FY11 Q1FY12 Commercial Vehicles & Construction Equipments 6,251 4,402 6,771 Agriculture Finance 4,220 2,925 4,356 Mortgage Loans 6,877 5,247 7,077 Personal Loans 1,305 1,170 1,359 Corporate Banking 9,417 8,500 11,214 Others 1,259 945 1,562 Total Advances 29,3

  23. Slide 23: Bank Balance Sheet

    Bank Balance Sheet Liabilities ` cr FY11 Q1 FY11 Q1 FY12 Net Worth 6,796 4,693 7,077 Deposits 29,261 24,058 31,047 CA 5,460 3,953 4,947 SA 3,331 2,704 3,307 Term Deposit 15,388 12,537 16,819 Certificate of Deposit 5,082 4,864 5,974 Borrowings 11,724 11,126 13,863 Other Liabilities and Provisions 3,0

  24. Slide 24: Bank Key Ratios

    Bank Key Ratios ` cr FY11 Q1 FY11 Q1 FY12 CAR % – $ 19.9 16.8$ 18.2$ Tier I (%) – $ 18.0 14.2$ 16.1$ Gross NPA (` cr) * 362 514 377 Gross NPA (%) * 1.2 2.2 1.2 Net NPA (` cr) * 146 228 157 Net NPA (%) * 0.5 1.0 0.5 RoA (% - not annualised) 1.8 0.5 0.5 $ excl. unaudited profits * Excluding acquired s

  25. Slide 25: Kotak Mahindra Prime

    Kotak Mahindra Prime ` cr FY11 Q4 FY11 Q1 FY11 Q1 FY12 Total Income 1,365 365 300 396 Profit before tax 482 129 115 141 Profit after tax 318 87 76 93 ` cr FY11 Q1 FY11 Q1 FY12 Total Advances 11,145 9,053 11,569 Car Advances 8,489 7,000 8,938 Net NPA$ 31 84 26 Car Business Net NPA 0.3 0.3 0.2 CAR (%)

  26. Slide 26: Life Insurance

    Life Insurance Capital efficiency among Gross Premium `cr the highest in the industry Adjusting with the new Renewal product mix; Group 1,534 1,722 330 Single 346 FY12 as another year of 221 288 Individual consolidation; 188 280 Regular 62 17 60 conservatism has helped so 925 685 925 40 far 65 FY

  27. Slide 27: Life Insurance

    Life Insurance Sum Assured AUM 9,000 8,270 8,692 138 129 7,500 6,797 6,461 120 103 6,000 92 (`cr '000) (`cr) 80 4,500 3,000 40 1,500 - - FY10 FY11 Q1FY11 Q1FY12 FY10 FY11 Q1FY11 Q1FY12 Number of Branches PAT 250 214 214 202 202 110 101 200 69 150 70 (` Cr) (No.) 46 100 30 50 (10) 0 (7) FY10 FY11 Q1F

  28. Slide 28: Kotak Securities

    Kotak Securities Market ADV ( ` 000 cr) ADV ` cr (KS) 4,800 4,648 4,600 78 4,400 89 35 56 4,200 3,925 4,000 (`cr) 3,800 38 3,582 39 37 3,600 30 3,400 23 19 18 14 3,200 FY10 FY11 Q1FY11 Q1FY12 3,000 Cash Future Option Mar-11 Jun-10 Jun-11 ` cr FY11 Q4 FY11 Q1 FY11 Q1 FY12 Total income 738 169 174 145

  29. Slide 29: Kotak Mahindra Capital

    Kotak Mahindra Capital Client Transaction Size (USD mn) Initial Public Offering 204 Initial Public Offering 169 Growth equity investment by KKR & IFC 97 Pre-IPO Placement to Avigo & Sabre 30 Joint Venture between Kokuyo and Camlin Limited 91 Open offer for Kemrock Industries and Exports Limited by 4

  30. Slide 30: Asset Management

    Asset Management ` 47,979 cr ` 51,661cr Q1 FY11 Q1 FY12 PMS 5% Insurance PMS 14% 3% Domestic MF Insurance Domestic Debt 16% MF Debt 45% 50% Offshore Offshore Funds 15% Funds 14% Alternate Asset 11% Alternate Domestic MF Asset Equity 10% Domestic 10% MF Equity 7% 30

  31. Slide 31: Mutual Fund

    Mutual Fund Average Assets Under Management `cr Close to 9.8 lac folios Regulatory challenges 84 Branches 34,880 34,482 34,167 30,472 FY10 FY11 QTDJUN10 QTDJUN11 ` cr FY11 Q4 FY11 Q1 FY11 Q1 FY12 Total income 119 33 40 37 Profit before tax 25 5 13 13 Profit after tax 17 4 9 9 Average AUM (` bn) 3

  32. Slide 32: Kotak Investment Advisors

    Kotak Investment Advisors Realty Funds Private Equity Funds  Corpus advised / managed –  Corpus advised / managed – ` 2,894cr ` 2,051 cr  Propose to launch $300 mn Infrastructure fund with SMBC and Brookfield  KIREF IV Closing done on 14th July 2011 with Corpus Rs. 454 cr. ` cr FY11 Q4FY11 Q1FY1

  33. Slide 33: International Subsidiaries

    International Subsidiaries ` cr FY11 Q4 FY11 Q1 FY11 Q1 FY12 Total income 139 36 32 21 Profit before tax 54 15 19 (5) Profit after tax 51 15 16 (3) As on Jun 30, 2011 assets managed / advised by international subsidiaries were USD 1.7 bn. 33

  34. Slide 34: Bank Awards & Recognition

    Bank Awards & Recognition Kotak Bank Annual Report 2010-11 was awarded Platinum - “Best among Banking, APAC” and Gold in the “Most Creative Report, APAC” in the LACP Vision Awards, USA Awarded Bronze in the “Best Local Trade Bank in India” category of Trade and Forfaiting Review Awards 2011 Awarded

  35. Slide 35: Awards & Recognition

    Awards & Recognition Lipper Fund Award 2011 for Kotak Bond Regular – ‘Best Fund over 10 years Bond Indian Rupee’ Best Debt Fund House of the year 2009 Outlook Money NDTV Profit Awards 2009 & 2010 Best Broker in India 2010 2011:Best Investment Bank in India (Sixth year in a row) 2011: Best Domestic E

  36. Slide 36: Talent…Professional Entrepreneurs at work

    Talent…Professional Entrepreneurs at work C. Jayaram  Joined Kotak in 1990; First charge | Vice President, Kotak Mahindra Finance  Current charge | Joint Managing Director, Kotak Mahindra Bank  On being a professional entrepreneur | When I joined Kotak, I didn’t really foresee that I would be run

  37. Slide 37: Talent…Professional Entrepreneurs at work

    Talent…Professional Entrepreneurs at work Gaurang Shah  Joined Kotak in 1996; First charge | Chief Operating Officer, Kotak Mahindra Primus;  Current charge | President – Asset Management and Life Insurance  On being a professional entrepreneur | I came from a corporate finance background and joi

  38. Slide 38: Talent…Professional Entrepreneurs at work

    Talent…Professional Entrepreneurs at work Shanti Ekambaram  Joined Kotak in 1991; First charge | Senior Manager – Bill Discounting;  Current charge | President – Wholesale Banking, Kotak Mahindra Bank  On being a professional entrepreneur | I joined Kotak from a foreign bank. Since financial serv

  39. 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

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