Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q2 FY2019 Earnings Presentation
37 slides from Kotak Mahindra Bank's earnings presentation, 2018
Slide 1: Investor Presentation Q2FY19
INVESTOR PRESENTATION Q2FY19
Slide 2: Consolidated Highlights Q2FY19
Consolidated Highlights Q2FY19 PAT CAR LOANS BOOK VALUE 18.7%# PER EQ. [19.2%] SHARE ` 1,747 cr Tier I ` 222,172 cr ` 282.4 [` 1,441 cr] 18.2%# [` 187,758 cr] [` 246.7] [18.6%] NIM* CAPITAL & NET NPA TOTAL RESERVES ASSETS 4.1% ` 54,349 cr 0.73% ` 363,229 cr [4.3%] [` 46,975 cr] [1.08%] [` 304,883 cr
Slide 3: Consolidated PAT
Consolidated PAT ` cr Q2FY19 Q2FY18 Q1FY19 FY18 Kotak Mahindra Bank 1,142 994 1,025 4,084 Kotak Mahindra Prime 157 150 139 590 Kotak Mahindra Investments 45 55 48 245 Kotak Securities 112 118 130 531 Kotak Mahindra Capital 14 (1) 25 65 Kotak Mahindra Life Insurance 127 100 117 413 Kotak AMC and TC 5
Slide 4: Entity wise Capital & Reserves and Surplus
Entity wise Capital & Reserves and Surplus ` cr 30-Sep-18 30-Sep-17 30-Jun-18 Kotak Mahindra Bank 40,103 35,206 38,538 Kotak Mahindra Prime 5,112 4,509 4,955 Kotak Mahindra Investments 1,476 1,137 1,431 Kotak Securities 3,768 3,239 3,656 Kotak Mahindra Capital 548 497 534 Kotak Mahindra Life Insuran
Slide 5: Consolidated Advances
Consolidated Advances 30-Sep-18 (` 222,172 cr) Consolidated Advances ` cr 30-Sep-18 30-Sep-17 30-Jun-18 Corporate Banking 67,319 56,493 66,178 CV/CE 17,048 12,205 16,024 Agriculture 22,425 19,741 21,249 Division Business Banking 18,575 18,113 18,116 Auto loans 20,696 19,900 20,365 Home Loans and 36,
Slide 6: Standalone Highlights Q2FY19
Standalone Highlights Q2FY19 PAT NIM* LOANS NET NPA ` 1,142 cr 4.2% ` 184,940 cr 0.81% [` 994 cr] [4.4%] [` 152,574 cr] [1.26%] TOTAL CAR BRANCHES CASA ASSETS 18.0%# 1,425 [19.4%] [1,362] Tier I CUSTOMERS ` 288,836 cr 17.4%# > 16 mn 50.2% [` 236,970 cr] [47.8%] [18.7%] [~ 10.5 mn] Figures in [bracke
Slide 7: Profit and Loss Account
Profit and Loss Account ` cr Q2FY19 Q2FY18 Q1FY19 FY18 Net Interest Income 2,689 2,313 2,583 9,532 Other Income 1,205 954 1,165 4,052 Net Total Income 3,894 3,267 3,748 13,584 Employee Cost 745 723 720 2,930 Other Operating Expenses 1,054 819 995 3,496 Operating Expenditure 1,799 1,542 1,715 6,426 O
Slide 8: Segment Performance and Other Income
Segment Performance and Other Income Bank Segmental PBT As per RBI (` cr) Q2FY19 Q2FY18 Q1FY19 FY18 Corporate/Wholesale Banking 796 685 645 2,984 Retail Banking 520 341 543 1,511 Treasury, BMU* & 425 482 375 1,723 Corporate Centre Total 1,741 1,508 1,563 6,218 * Balance Sheet Management Unit Advance
Slide 9: Advances
Advances 30-Sep-18 (` 184,940 cr) Advances ` cr 30-Sep-18 30-Sep-17 30-Jun-18 Corporate Banking 58,072 48,995 57,683 CV/CE 17,048 12,205 16,024 Agriculture Division 22,425 19,741 21,249 Business Banking 18,575 18,113 18,116 Home Loans and LAP 36,064 29,429 34,005 Small Business, PL & 29,039 20,876 2
Slide 10: Deposits
Deposits CASA (` cr) Highlights CASA 50.2% 47.8% 50.3% 50.8% % CASA and TDs below ` 5 cr constitute 79% of total deposits TDs below ` 1 cr were ` 49,743 cr TD Sweep: 6.6% of total deposits Cost of SA for Q2FY19: 5.65% 1,425 branches as on 30th Sep, 2018 YoY % Avg SA 43% (Qtr) 68,630 48,127
Slide 11: Balance Sheet
Balance Sheet ` cr 30-Sep-18 30-Sep-17 30-Jun-18 Capital & Reserves and Surplus 40,103 35,206 38,538 Deposits 205,830 165,671 189,744 CA 30,796 25,731 28,742 SA 72,606 53,490 66,621 Term Deposits 102,428 86,450 94,381 Of which: TD Sweep 13,541 11,559 13,111 Borrowings 32,584 25,923 33,494 Other Liab
Slide 12: Digital Platforms
Digital Platforms Highest Rated Banking App in India (4.8 in Apple Store & 4.5 in Google Playstore) Q2FY19 90% Conversational Recurring 69% Banking 250% Deposit Fixed sourced Deposit Mobile Keya Chatbot for digitally sourced Banking Online customer digitally growth YoY* service (volume) Whatsapp Ban
Slide 13: 811 Digital Bank Account - Highlights
811 Digital Bank Account - Highlights #IndiaInvited: Scaled new heights with ‘811 is for everyone’ campaign running successfully across platforms 43% salaried while 28% self-employed 91% of customers are 18-40 years of age 58% of customers are from the top 20 cities Group Personal Accident Cover jou
Slide 14: Payment and Digital Lending Solutions
Payment and Digital Lending Solutions Highlights: Payment Gateway Volume growth 45% (Sep’18 vs Sep’17) Kotak amongst 3 Banks to Volume crosses 2mn mark in Sep’18 perform a LIVE Demo of UPI 2.0 @ 16th August 2018 UPI 2.0 Launch Growth in UPI transactions – Launched Industry First UPI 2.0 25x Fund Tra
Slide 15: Digital Lending Business
Digital Lending Business – Credit Card, Personal Loan, Home Loan, Business Loan 1.8x YOY increase for digital card acquisition Credit Card 17% Contribution of 811 customers to the overall digital credit card acquisition 1.5x YOY increase for digital salaried personal loan disbursed Personal Loan 32%
Slide 16: Digital Update – Subsidiaries
Digital Update – Subsidiaries Kotak Securities 91% growth YoY in 205% growth YoY in Mobile Total ADV Mobile Cash ADV Kotak Life Insurance Kotak General Insurance Individual Policies sourced 77% 70% 89% in Q2FY19 through Genie (Tablet based end to end sales solution) YoY growth in YoY growth in volum
Slide 17: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance New Business Premium (` cr) Highlights 824 642 659 3,404 ULIP Mix H1FY19: 25% (FY18: 36%) Individual renewal premium grew 31% over Q2FY18 13th Month Persistency YTD Jun18: 84.6% Claims settlement ratio FY18: 99.3% ` cr Q2FY19 Q2FY18 Q1FY19 FY18 Capital 562 562 5
Slide 18: Kotak Securities
Kotak Securities Market ADV (` ‘000 cr) ADV (` cr) - KS 1,040 673 871 704 ` cr Q2FY19 Q2FY18 Q1FY19 FY18 Total Income 407 366 415 1,655 Profit Before Tax 169 177 196 796 Profit After Tax 112 118 130 531 Market Share* (%) (YTD) 2.5 1.9 1.7 1.9 *excluding BSE Derivative segment Market Share in Cash Se
Slide 19: Kotak Mahindra Capital Company
Kotak Mahindra Capital Company Advisory Equity Merger of Excel Cropcare with Sumitomo HDFC ASSET MANAGEMENT CO.LIMITED Chemical # Initial Public Offering ` 3,593 cr ` 2,800 cr Sale of stake in SBI General Insurance by CREDITACCESS GRAMEEN LIMITED SBI to Axis AIF and PremjiInvest # Initial Public Off
Slide 20: Assets Under Management
Assets Under Management Sep 30, 2018 Sep 30, 2017 18% AUM ` 199,382 cr AUM ` 169,214 cr 20
Slide 21: Kotak Mahindra AMC & Trustee Co.
Kotak Mahindra AMC & Trustee Co. Average Assets Under Management (` cr) - Overall Average Assets Under Management (` cr) - Equity ` cr Q2FY19 Q2FY18 Q1FY19 FY18 Highlights Equity AAUM market share rose to Profit Before Tax 79 34 77 170 3.96% in Q2FY19 (Q2FY18: 3.60%) Overall Market share on AAUM
Slide 22: Kotak Mahindra Prime
Kotak Mahindra Prime Customer Assets* (` cr) & NNPA (%) ` cr Q2FY19 Q2FY18 Q1FY19 FY18 NII 266 276 271 1,115 Other Income 89 64 57 256 NII and Other Income 355 340 328 1,371 Profit Before Tax 238 229 214 902 Profit After Tax 157 150 139 590 CAR (%) (incl unaudited profits) 18.2% ROA (%) - annualised
Slide 23: Kotak Mahindra Investments
Kotak Mahindra Investments Customer Assets* (` cr) & NNPA (%) ` cr Q2FY19 Q2FY18 Q1FY19 FY18 NII 61 76 72 304 Other Income 24 24 16 122 NII and Other Income 85 100 88 426 Profit Before Tax 70 84 74 367 Profit After Tax 45 55 48 245 CAR (%) (incl unaudited profits) 20.7% ROA (%) - annualised 2.0% * I
Slide 24: Geographical Presence
Geographical Presence Branches 1,425 [No./%] 2 North 10 435/31% 74 9 58 West East 97 444/31% 86/6% 1 68 59 4 17 1 South 1 460/32% 135 39 9 19 36 Branch Classification 2 17 301 83 6 No of ATMs 107 158 80 2,236 32 24
Slide 25: Group Profile
GROUP PROFILE
Slide 26: 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 1992 2000 2003 2008 2015 Auto IPO Life BANK ARC ING Vysya Finance Insurance Merger Kotak Mahindra General In
Slide 27: 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 28: 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 29: 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 30: 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 31: Bank Awards & Recognition
Bank Awards & Recognition Voice Bot (Keya) one of Euromoney Awards for the Best 50 Innovative Excellence 2018 Applications in AI - India’s Best Bank NASSCOM AI Game - Best Bank in the Emerging Changer Awards 2018 Markets in the Euromoney Kotak Wealth Mgt- Best Regional Awards Performing Private Bank
Slide 32: Awards and Recognition
Awards and Recognition Investment Bank of the Early adopter of Analytics Business World Award year – M&A Award Machine conference 2018 Excellence in L&D for 2016 VC Circle Asiamoney Best Bank Awards 2018 The Asset Triple A Country (India) Awards 2017, India • Best for Overall Country • Best IPO Rese
Slide 33: 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 34: 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 35: 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 36: 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 37: 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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