Axis Bank Limited · NSE:AXISBANK
Axis Bank — H1 FY2010 Earnings Presentation
34 slides from Axis Bank's earnings presentation, October 2009
Slide 1: FY 2009-10 First Half Results Investor Presentation
FY 2009-10 First Half Results Investor Presentation
Slide 2: Performance Highlights
Performance Highlights Q2FY10 H1FY10 Net Profit 32% YOY 49% YOY Net Interest Income 26% YOY 27% YOY Fee Income 15% YOY 16% YOY Operating Revenue 38% YOY 39% YOY Operating Profit 49% YOY 48% YOY Net Interest Margin 3.52% 3.43% Cost of Funds 5.41% 5.74% 1
Slide 3: Shareholder Returns
Shareholder Returns FY05 FY06 FY07 FY08 FY09 H1FY10 375.4 25.85% 1.54% 1.44% 284.5 21.84% 1.21% 1.24% 20.93% 1.18% 19.93% 245.1 18.44% 1.10% 16.09% 120.5 103.1 88.0 Book Value per Share (Rs.) Return on Equity (%) Return on Assets (%) 2
Slide 4: Interpretation of Q2FY10 Performance
Interpretation of Q2FY10 Performance • Growth in the Bank’s core businesses – Total Net Advances grew 18% yoy to Rs. 81,044 crores – Total Investments grew 37% yoy to Rs. 52,072 crores – Total Assets registered a 19% yoy growth, rising to Rs. 1,51,714 crores – Fees grew by 15% yoy, rising to Rs. 719
Slide 5: Profitability
Profitability Sustained Growth: Robust Core Revenues Q2FY09 Q2FY10 H1FY09 H1FY10 Amounts in Rupees Crores Amounts in Rupees Crores 4,219 2,215 1,991 3,669 3,043 2,950 1,608 1,572 1,082 1,932 838 1,583 1,094 532 403 733 Net Profit Core Operating Core Net Profit Core Operating Core Operating Revenue O
Slide 6: Consistent Net Profit Growth
Consistent Net Profit Growth FY05 FY06 FY07 FY08 FY09 FY10 Amounts in Rupees Crores 582 562 532 501 403 361 330 307 228 212 175 185 142 152 121 132 109 117 93 101 71 46 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarterly Net Profits 5
Slide 7: Net Interest Margin and Cost of Funds
Net Interest Margin and Cost of Funds Net Interest Margin Cost of Funds 3.51% 3.37% 3.52% 6.91% 6.64% 6.23% 6.09% 5.41% 3.34% 3.12% Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q2FY10 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q2FY10 NIMs for the last 5 years FY05 2.90% FY06 2.85% FY07 2.74% FY08 3.47% FY09 3.33% 6
Slide 8: Growing Net Interest Income
Growing Net Interest Income Q2FY09 Q2FY10 H1FY09 H1FY10 Amounts in Rupees Crores Amounts in Rupees Crores 2,195 1,150 1,724 913 ↑ 26% YOY ↑ 27% YOY NIIs for the last 5 years FY05 731 FY06 1,078 FY07 1,468 FY08 2,585 FY09 3,686 CAGR (5 years) 45% 7
Slide 9: Growing Demand Deposits
Growing Demand Deposits YOY Growth in Daily Average Demand and Term Deposits Deposit Q2FY10 H1FY10 Savings 33% 33% Current 21% 18% Total Demand Deposits 28% 26% Total Deposits 20% 23% 49,462 41,436 (43%) (40%) Demand Deposits ↑ 19% YOY 61,449 66,137 Term Deposits ↑ 8% YOY (60%) (57%) 30th Sep'08 30t
Slide 10: Fees
Fees Q2FY09 Q2FY10 H1FY09 H1FY10 Amounts in Rupees Crores Amounts in Rupees Crores 719 1,346 627 1,164 ↑ 15% YOY ↑ 16% YOY Fees for the last 5 years FY05 366 FY06 558 FY07 890 FY08 1,495 FY09 2,447 CAGR (5 years) 65% 9
Slide 11: Fee Income Composition
Fee Income Composition Q2FY09 Q2FY10 221 Amounts in Rupees Crores 200 160 119 111 107 88 88 72 76 48 56 Large & Mid Treasury Agri & SME Business Capital Markets Retail Business Corporate Credit Banking Banking ↑ 50% YOY ↑ 35% YOY ↑ 16% YOY ↑ 22% YOY ↓ 32% YOY ↑ 11% YOY H1FY09 H1FY10 418 Amounts in R
Slide 12: Trading Profits
Trading Profits Trading Profit Volume % of Operating Revenue Amounts in Rupees Crores 224 10% 36 2% Q2FY09 Q2FY10 Q2FY09 Q2FY10 ↑ 522% YOY 550 13% 93 3% H1FY09 H1FY10 H1FY09 H1FY10 ↑ 488% YOY 11
Slide 13: Stressed Assets and Net NPA (%)
Stressed Assets and Net NPA (%) Gross NPAs Net NPAs Net NPA (%) Amounts in Rupees Crores 1,200 1,132 0.90% 0.80% 1,000 898 915 0.70% Net NPA as at year-end 788 800 0.60% FY05 1.07% 710 FY06 0.75% 0.43% 0.45% 0.50% 600 0.41% FY07 0.61% 0.39% 0.35% 0.40% FY08 0.36% 417 FY09 0.35% 400 342 367 0.30% 337
Slide 14: Business Overview
BUSINESS OVERVIEW A
Slide 15: Network
Network Increasing Reach 564 916 515 835 671 405 561 332 450 258 339 190 Branches + Extension Counters Centres Covered 3,866 3,595 Branch Demographics (Domestic) 2,764 Branches Extn. Counters 2,341 Metro 293 6 1,891 Urban 356 2 1,599 Semi-urban 209 0 Rural 50 0 Total 908 8 ATMs Mar'05 Mar'06 Mar'07
Slide 16: Large and Mid Corporate Banking
Large and Mid Corporate Banking • Focus on quality of credit assets with stress on corporates having – Global competitive advantage in their businesses – Good corporate governance and management practices • Business Segments – Large Corporates – Mid Corporates – Structured Products • Rigorous and re
Slide 17: Distribution of Ratings
Distribution of Ratings (Large and Mid Corporate) 78% of corporate advances have rating of at least ‘A’ as at Sep’09 5% 4% 2% 8% 7% 22% 23% 18% 19% 22% AAA AA A 54% 53% 58% 56% 54% BBB <BBB or Unrated 15% 16% 18% 19% 13% 3% 3% 3% 2% 3% Sep'08 Dec'08 Mar'09 Jun'09 Sep'09 16
Slide 18: SME and Agri Business
SME and Agri Business 30th Sep'08 30th Sep'09 Amounts in Rupees Crores 15,860 13,109 7,098 5,134 SME Advances Agricultural Advances ↑ 21% YOY ↑ 38% YOY SME Centres 24 25 Agri Clusters 44 56 • Specialised SME Centres for SME • Specialised Clusters for Agricultural lending, appraisals, sanctions and p
Slide 19: Distribution of Ratings: SME
Distribution of Ratings: SME 75% of SME advances have rating of at least ‘SME3’ as at Sep’09 1% 1% 1% 1% 1% 14% 11% 12% 10% 11% SME 1 65% 63% SME 2 63% 67% 64% SME 3 SME 4 SME 5-8 15% 15% 16% 17% 14% 7% 7% 8% 8% 8% Sep'08 Dec'08 Mar'09 Jun'09 Sep'09 18
Slide 20: Top Sector Exposures
Top Sector Exposures Across Large Corporate, Mid Corporate, SME and Corporate Agri Exposure as on 30th Sep’09 Rank Sectors Non-fund Total Fund-based based 1. Infrastructure* 11.94% 8.82% 17.75% 2. Metal & Metal Products 7.99% 6.15% 11.40% 3. Financial Companies** 7.83% 9.54% 4.63% 4. Trade 5.47% 5.7
Slide 21: Business Banking
Business Banking Cash Management Services 30th Sep'08 30th Sep'09 • Collection of Central Government taxes on behalf of 5,545 CBDT and CBEC, including through e-payments • Collection of State Government taxes on behalf of seven State Governments and Union Territories 4,032 • Collections and payments
Slide 22: Business Banking
Business Banking Current Accounts Growth 30th Sep'08 30th Sep'09 Amounts in Rupees Crores 21,455 19,970 Current Account deposits for the last 5 years (as on 31st March) Mar’05 7,155 Mar’06 7,970 Mar’07 11,304 Mar’08 20,045 Mar’09 24,822 Current Account Deposits CAGR (5 years) 36% ↑ 7% YOY • Wide ran
Slide 23: Treasury
93,748 Treasury 35.5 146.5 73,679 25.9 Q2FY09 11.0 Q2FY10 Amounts in Rs Crores 11.5 Forex Turnover Forex Trading SLR & Money Market Derivatives Trading ↑ 27% YOY ↑ 37% YOY Trading ↓ 505% ↑ 1174% YOY YOY 181,751 64.8 301.2 -44.5 124,539 H1FY09 40.5 H1FY10 Amounts in 13.4 Rs Crores 40.2 Forex Turnover
Slide 24: Capital Markets
Capital Markets Q2FY09 Q2FY10 H1FY09 H1FY10 Amounts in Rupees Crores Amounts in Rupees Crores 19,800 29,519 14,583 18,455 ↑ 36% YOY Placement & Syndications ↑ 60% YOY (Debentures / Bonds) • A dominant player in placement and syndication of debt issues • Ranked No.1 in Bloomberg league table for ‘Ind
Slide 25: Savings Bank Growth
Savings Bank Growth 30th Sep'08 30th Sep'09 Amounts in Rupees Crores Savings Bank deposits 48,314 for the last 5 years (as on 31st March) Mar’05 4,891 Mar’06 8,065 35,605 Mar’07 12,126 Mar’08 19,982 28,007 Mar’09 25,822 21,466 CAGR (5 years) 58% Savings Bank deposit growth led by: • Wide Network - B
Slide 26: Third Party Products Business
Third Party Products Business Q2FY09 Q2FY10 H1FY09 H1FY10 Amounts in Rupees Crores Amounts in Rupees Crores • Focus on cross-selling to 114 existing customers to generate 69 fee income 91 52 • Third-party products sold include mutual funds, insurance, on-line broking, portfolio management services (
Slide 27: Retail Assets
Retail Assets 30th Sep'08 30th Sep'09 30th Sep'08 30th Sep'09 Amounts in Rupees Crores 1,084,536 17,984 16,777 989,671 • Retail Assets constitute 22% of the bank’s total advances, as compared to 24% as at 30th Sep’08. • Growth driven through 64 Retail Asset Centres (RACs) Portfolio Size No of Accoun
Slide 28: Composition of Retail Assets
Composition of Retail Assets Product-wise composition of Retail Assets portfolio (30th Sep’09) Personal Loans 10% Cards 3% Non-Schematic 6% Passenger Cars 13% Auto loans Commercial 14% Vehicles 1% Housing Loans 67% 27
Slide 29: Cards Business
Cards Business Q2FY09 Q2FY10 H1FY09 H1FY10 Amounts in Rupees Crores 51 96 44 83 ↑ 13% YOY ↑ 16% YOY Fee Income • Issuance – Over 5,52,000 Credit Cards in force till 30th Sep‘09 – 1st Indian Bank to launch Travel Currency Cards in 9 currencies -US$, Euro, GBP, AUD, CAD, SGD, SEK, CHF, JPY – 1st India
Slide 30: ATM Channel
ATM Channel Sep'08 Sep'09 132 6,194 300 105 4,494 222 Intl. debit card base (lakhs) Monthly Cash Withdrawals No. of Monthly Transactions (Rs. Crore) (lakhs) ↑ 26% YOY ↑ 38% YOY ↑ 35% YOY • Pioneer in ATM sharing arrangements • Value added services such as bill payments, mutual fund investments, mobi
Slide 31: International Presence
International Presence • Branches at Singapore, Hong Kong and DIFC, Dubai • Representative offices at Shanghai and Dubai • Total assets overseas amounted to US$ 2.28 billion as compared to US$ 1.95 billion as at end Sep’08, a growth of 17% yoy • Corporate Banking, Trade Finance products, Debt Syndic
Slide 32: Shareholding
Shareholding Shareholding pattern (Sep’09) SUUTI • Share Capital - Rs. 401.95 crores 24.19% Others • Shareholders’ Funds - Rs. 15,087 crores 35.70% • Book Value per share - Rs. 375.35 LIC • Market Price as on 09/10/09 - Rs. 998.00 10.39% • Market Cap as on 09/10/09 - Rs. 40,114 crores FIIs (US $8.34
Slide 33: Safe Harbor
Safe Harbor Except for the historical information contained herein, statements in this release which contain words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek to”, “futu
Slide 34: Thank You
Strongest Indian Bank and 5th in Asia-Pacific Best Private Sector FE best banks - Asian Banker 300 Best New Private Bank 2008 - NDTV award ’09 – Best Featured in Forbes A survey of Asia- sector bank in Profit Business Private Sector Asia ‘s list of FAB 50 Pacific’s Strongest India (2007-08) Leadersh