Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q3 FY2021 Earnings Presentation
34 slides from Kotak Mahindra Bank's earnings presentation, Jan 26, 2021
Slide 1: Cover letter to stock exchanges: Investor Presentation Q3 FY21
January 26, 2021 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 Jeejeebhoy Towers, Bandra-Kurla Complex, Dalal Street, Bandra (East), Mumbai 400
Slide 2: Investor Presentation Q3FY21
INVESTOR PRESENTATION Q3FY21 Presentation on financial results for the period ended 31st December, 2020 25th January, 2021
Slide 3: Standalone highlights Q3FY21
Standalone highlights Q3FY21 PPOP PAT NII Total Assets ` 4,007 cr [` 3,430 cr] ` 3,083 cr ` 1,854 cr NIM ` 389,026 cr [` 2,388 cr] [` 1,596 cr] 4.51%^ [` 323,481 cr] [4.69%] Net NPA CAR# Loans CASA 23.6% [18.2%] ` 214,103 cr 0.50%^ Tier I# [` 216,774 cr] 58.9% [0.89%] 23.0% [17.7%] [53.7%] Figures i
Slide 4: Profit and Loss Account
Profit and Loss Account ` cr Q3FY21 Q3FY20 Q2FY21 FY20 Notes Net Interest Income 4,007 3,430 3,913 13,500 Provision includes amounts (incl. Other Income 1,334 1,341 1,452 5,372 interest accrued but not collected for the entire period, Fee and Services 1,170 1,136 1,058 4,731 with moratorium) with
Slide 5: Fees & Services
Fees & Services ` cr Q3FY21 Q3FY20 Q2FY21 FY20 Distribution & Syndication Income 178 128 172 590 General Banking Fees 962 978 854 4,021 Others 30 30 32 120 Fees and Services 1,170 1,136 1,058 4,731 4
Slide 6: Asset Quality
Asset Quality Asset Quality ` cr 31-Dec-20 31-Dec-19 30-Sep-20 • No sale to ARCs GNPA 4,928 5,413 5,336 NNPA 1,064 1,925 1,304 • Approved restructuring SMA2^ outstanding - ` 654 cr, GNPA (%) 2.26% 2.46% 2.55% 0.28% of net advances 0.31% of net advances NNPA (%) 0.50% 0.89% 0.64% PCR (excl standard a
Slide 7: Balance Sheet
Balance Sheet ` cr 31-Dec-20 31-Dec-19 30-Sep-20 Capital & Reserves and Surplus 61,914 47,606 59,923 Deposits 265,304 239,354 261,564 CA 43,975 36,788 40,454 SA 112,199 91,729 108,990 Term Deposits 109,130 110,837 112,120 Of which: TD Sweep 21,601 17,656 20,184 Borrowings 48,223 26,465 41,789 Other
Slide 8: Digital Highlights
Digital Highlights Enabling Assets Scaling Digital Banking Capabilities Mobile Banking - Continues to be 5th* in industry with 5% share Digi Home Loans 2.0 – Instant digital credit assessment and of transaction value; Transaction volume up 73% & value up in-principal sanction letter 40% annually New
Slide 9: Digital Channels
Digital Channels Mobile Banking has 180+ features and Net Banking 250+ across product categories Banking & Servicing Loans & Cards New & improved credit card overview section on Mobile eStatement download of last 5 years in Mobile App Banking Capturing Customer consent on MB for receiving Ca
Slide 10: Digital Engagements
Digital Engagements 811 – Share in Digital Engagement Digital payments MB 30 day unique Logins 57% Key Highlights Key Trends UPI transactions 62% Digital payment* checkout modes contribute to 85%+ of monthly transaction share in Dec’20 2.1X growth of consumer ~2.35X growth in Consumer Secured
Slide 11: Deposit
Deposit CASA (` cr) Cost of SA CASA % 58.9% 53.7% 57.1% 56.2% 3.81% [5.27%] Wholesale floating rate SA CASA & TDs below ` 5 cr, as % of total deposits Fixed rate SA TD Sweep as % of 92% [87%] total deposits 8.1% [7.4%] Certificate of CA Deposits at ` 699 cr Lower YoY by 91% YoY % YoY % 29% 22% Avg S
Slide 12: Customer Assets
Customer Assets 31-Dec-20 (` 228,809 cr) Customer Assets ` cr 31-Dec-20 31-Dec-19 30-Sep-20 Home Loans & LAP 49,977 47,585 47,732 Consumer Bank WC (Secured) 20,548 19,859 19,562 PL, BL and Consumer Durables 7,528 9,839 8,177 Credit Cards 4,557 4,885 4,378 CV/CE 18,685 18,993 18,363 Agriculture Divis
Slide 13: Specific Sectors Exposure
Specific Sectors Exposure Specific Sectors as per Basel III Outstanding* (` cr) 31-Dec-20 % 31-Dec-19 % 30-Sep-20 % NBFCs 14,169 4.9% 11,756 4.2% 12,248 4.5% :Of which HFC 6,174 2.1% 4,311 1.5% 5,025 1.8% CRE (excl LRD) 5,572 1.9% 5,844 2.1% 5,661 2.1% LRD 4,104 1.4% 4,521 1.6% 4,363 1.6% Total incl
Slide 14: Consolidated Highlights Q3FY21
Consolidated Highlights Q3FY21 CAR# Customer PAT 24.9% Total Assets Assets [19.4%] ` 2,602 cr Tier I# ` 255,786 cr ` 477,293 cr [` 2,349 cr] 24.3% [` 261,410 cr] [` 407,816 cr] [19.0%] Capital & NIM Net NPA Book Value Reserves per Eq. share 4.58%^ ` 82,116 cr 0.53%^ ` 412 [4.66%] [` 65,018 cr] [0.87
Slide 15: Consolidated PAT
Consolidated PAT ` cr Q3FY21 Q3FY20 Q2FY21 FY20 Notes Pre tax profit for bank and Kotak Mahindra Bank 1,854 1,596 2,184 5,947 subsidiaries grew at 19.5% YoY Kotak Mahindra Prime 149 187 133 673 Kotak Mahindra Investments 68 64 74 270 Kotak Securities 184 128 199 550 Kotak Mahindra Capital 38 40 14
Slide 16: Entity-wise Capital & Reserves and Surplus
Entity-wise Capital & Reserves and Surplus ` cr 31-Dec-20 31-Dec-19 30-Sep-20 Kotak Mahindra Bank 61,914 47,606 59,923 Kotak Mahindra Prime 6,439 5,927 6,289 Kotak Mahindra Investments 2,044 1,783 1,976 Kotak Securities 5,081 4,366 4,897 Kotak Mahindra Capital 680 629 642 Kotak Mahindra Life Insuran
Slide 17: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance ` cr Q3FY21 Q3FY20 Q2FY21 FY20 Gross Written Premium (` cr) Capital 562 562 562 562 2,623 2,645 2,401 10,340 Other Reserves and Surplus 3,291 2,627 3,124 2,791 Total Premium 2,623 2,645 2,401 10,340 Profit After Tax 167 166 171 608 (Shareholders’) Solvency Ratio (x) 3.0
Slide 18: KLI – Update on Digitization
KLI – Update on Digitization Focus continues on empowering distribution, energizing employees and superior customer experience Digital onboarding of customers through Genie, continues to remain above 95% Smart Nudges to improve customer engagement and performance were launched in Boost for Empow
Slide 19: Kotak Securities
Kotak Securities ` cr Q3FY21 Q3FY20 Q2FY21 FY20 Market ADV* (` ‘000 cr) Total Income 474 409 516 1,690 1,695 967 1,261 967 Profit Before Tax 245 171 266 738 Profit After Tax 184 128 199 550 Market Share* (%) 2.0% Market Share* in Cash Segment 9MFY21: 9.1% (9MFY20: 10.0%) 1,528 branches, franchises a
Slide 20: Kotak Mahindra Capital Company
Kotak Mahindra Capital Company Equity Advisory Gland Pharma Limited Buyside Advisor to Embassy REIT. Acquisition of # Initial Public Offer (IPO) Embassy Tech Village ` 6,480 cr ` 9,782 cr Embassy Office Parks REIT Fairness Opinion Provider for # Institutional Placement Sale of Indo Gulf Fertilizers
Slide 21: Kotak Mahindra Prime
Kotak Mahindra Prime ` cr Q3FY21 Q3FY20 Q2FY21 FY20 Customer Assets* (` cr) NII 320 313 301 1,234 Other Income 66 65 53 291 NII and Other Income 386 378 354 1,525 Profit Before Tax 201 250 179 923 Profit After Tax 149 187 133 673 NNPA (%) 0.9% 0.6% 1.3% 0.6% CAR (incl unaudited profits) (%) 29.7% RO
Slide 22: Kotak Mahindra AMC & Trustee Co.
Kotak Mahindra AMC & Trustee Co. Average Assets Under Management (` cr) - Overall ` cr Q3FY21 Q3FY20 Q2FY21 FY20 Profit Before Tax 122 122 113 454 Profit After Tax 91 91 84 337 Highlights Overall Ranking basis the AMFI AAUM improved to 5 in Average Assets Under Management (` cr) - Equity Q3FY21 (6
Slide 23: Assets Under Management and Relationship Value
Assets Under Management and Relationship Value 31st December, 2020 31st December, 2019 20% (Total: ` 314,833 cr) (Total: ` 263,256 cr) AUM crossed ` 3 lac Relationship Value of Wealth + Priority + Investment Advisory crore as on 31st Dec, 2020 ~` 375,000 cr (PY: ~` 306,000 cr) 22
Slide 24: Key Awards
Key Awards Best Private Banking The Best bank India Best Private Banks for Best Private Bank in Services Overall award for the fourth HNWIs India The 2021 Euromoney year The Asset Triple A Global Private Banking Private Banking and Asset Triple A Country Private Capital Awards Awards 2020 Wealth Man
Slide 25: Geographical presence
Geographical presence Branches 1,603* [No./%] North Branches distributed 485 / 30% across various geographies West East 496 / 31% 122 / 8% South 500 / 31% Branch Classification No. of ATMs 2,573 24 * Does not include branches in DIFC, Dubai & GIFT city, Gujarat
Slide 26: Group Profile
GROUP PROFILE
Slide 27: The Journey So far…
The Journey So far… ∞ First International Ability to Identify and Capitalize on Opportunities Branch ∞ Microfinance 2019 ARC 2013 ∞ Digital Bank - 811 BANK ∞ Kotak IDF 2020 2008 2008 ∞ Digital 2017 2011 Video Life 2012 KYC Insurance 2003 2002 Auto Finance 2000 2013 2006 2004 2014 2010 Alternate ∞ IN
Slide 28: Kotak – Diversified and integrated financial services
Kotak – Diversified and integrated financial services Kotak Mahindra Bank Commercial Bank & Parent Company Kotak Mahindra Kotak Mahindra Kotak Investment Kotak Mahindra Kotak Securities Prime Investments Advisors Capital Company ∞ Car Finance ∞ Investments ∞ Alternate Assets ∞ Investment Banking ∞ S
Slide 29: Present Across the Entire Value Chain
Present Across the Entire Value Chain Platform with Wide Product Portfolio Wholesale Banking Commercial Banking Consumer Banking Other Financial Services ∞ Corporate Loans ∞ Agriculture Finance ∞ Branch Banking ∞ Wealth Management ∞ Trade Finance ∞ Tractor Finance ∞ 811 ∞ Car and 2W Loans ∞ Business
Slide 30: Our Strengths
Our Strengths An integrated ∞ Balance Sheet, Market & Knowledge driven businesses encompassing all customer & geographic segments financial services conglomerate with a ∞ Wide spectrum of financial products and services help to balance against market cycles, hedge against downturns in specific diver
Slide 31: Our Strategy
Our Strategy ∞ To be amongst the most trusted financial services conglomerates in India Enhance Customer ∞ Enhance customer experience backed by wide spectrum of products, and using cost efficient, convenient delivery channels including digital Experience & Trust and technological initiatives ∞ Stre
Slide 32: The Path of Leadership
The Path of Leadership Attract & Retain Talent - High degree of stability within the Risks Management management team, many have been Strong Capital Position with the Group for over 15 years - Extensive on-the-ground - Capital adequacy amongst the - Preferred Employer status in the presence and supe
Slide 33: Strong and Committed Leadership Team
Strong and Committed Leadership Team Senior Leadership Team with Long Vintage Dipak Gupta Gaurang Shah KVS Manian D Kannan Shanti Jt. MD WTD WTD Ekambaram 29 Years 24 Years 25 Years 29 Years 29 Years Compliance, IT, HR & Credit, ARD, Asset Corporate, Marketing, Digital, Mgmt, Alternate Institutional
Slide 34: 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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