Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q1 FY2018 Earnings Presentation
40 slides from Kotak Mahindra Bank's earnings presentation, 2017
Slide 1: Investor Presentation Q1FY18
INVESTOR PRESENTATION Q1FY18
Slide 2: Consolidated Highlights Q1FY18
Consolidated Highlights Q1FY18 PAT CAR LOANS BOOK VALUE PER SHARE 19.5%# [17.3%] ` 1,347 cr Tier I ` 175,474 cr ` 239.7 [` 1,067 cr] 18.8%# [` 147,004 cr] [` 187.6] [16.5%] NIM NETWORTH NET NPA TOTAL ASSETS 4.4% ` 45,632 cr 1.07% ` 290,178 cr [4.4%] [` 34,443 cr] [1.06%] [` 240,175 cr] Figures in [b
Slide 3: Updates
Updates • Raised ` 5,803 cr through a QIP Issuance at ` 936 per share • Agreed to acquire Old Mutual 26% Stake in Kotak Life, awaiting regulatory approvals • Regulatory approvals received to acquire BSS Microfinance • KMP launched consumer durable financing business • KIDF (Infra development fund) c
Slide 4: Consolidated Key Financials
Consolidated Key Financials Advances [` cr] Networth [` cr] Total Assets [` cr] PAT [` cr] 4
Slide 5: Consolidated Customer Assets
Consolidated Customer Assets 30-Jun-17 (` 175,474 cr) Customer Assets ` cr 30-Jun-17 30-Jun-16 31-Mar-17 Corporate Banking 52,479 42,732 48,220 CV/CE 11,442 8,454 10,827 Agriculture 18,563 16,365 18,969 Division Business Banking 17,527 16,990 17,884 Auto loans 18,488 16,824 18,330 Home Loans and 27,
Slide 6: Consolidated PAT
Consolidated PAT ` cr Q1FY18 Q1FY17 Q4FY17 FY17 Kotak Mahindra Bank 913 742 976 3,411 Kotak Mahindra Prime 132 120 133 515 Kotak Mahindra Investments 45 40 56 196 Kotak Securities 125 60 121 361 Kotak Mahindra Capital 5 23 11 46 Kotak Mahindra Old Mutual Life 103 71 101 303 Insurance Kotak AMC and T
Slide 7: Entity wise Networth
Entity wise Networth ` cr 30-Jun-17 30-Jun-16 31-Mar-17 Kotak Mahindra Bank 34,318 24,744 27,616 Kotak Mahindra Prime 4,359 3,832 4,227 Kotak Mahindra Investments 1,082 881 1,038 Kotak Securities 3,121 2,694 2,996 Kotak Mahindra Capital 499 470 493 Kotak Mahindra Old Mutual Life Insurance 1,927 1,59
Slide 8: Standalone Highlights Q1FY18
Standalone Highlights Q1FY18 PAT NIM LOANS NET NPA ` 913 cr 4.5% ` 142,359 cr 1.25% [` 742 cr] [4.4%] [ ` 120,765 cr] [1.21%] TOTAL CAR BRANCHES CASA ASSETS 19.7%# [16.8%] ` 226,385 cr Tier I 1,362 43.9% [ ` 189,820 cr] 18.9%# [1,333] [37.4%] [15.8%] Figures in [brackets] are Q1FY17 numbers # As per
Slide 9: Profit and Loss Account
Profit and Loss Account ` cr Q1FY18 Q1FY17 Q4FY17 FY17 Net Interest Income 2,246 1,919 2,161 8,126 Other Income 907 733 1,003 3,477 Net Total Income 3,153 2,652 3,164 11,603 Employee Cost 706 667 681 2,745 Other Operating Expenses 851* 670 781 2,873 Operating Expenditure 1,557 1,337 1,462 5,618 Oper
Slide 10: Income and Asset Quality
Income and Asset Quality NII (` cr) and NIM Asset Quality Restructured loans considered standard ` 80 cr; 0.06% of net advances SMA2 outstanding - ` 305 cr 0.21% of net advances Bank has total exposure of ` 236 cr to 4 of 12 accounts identified by RBI for insolvency proceedings All 4 accou
Slide 11: Segment Performance
Segment Performance Bank Segmental PBT As per RBI (` cr) Q1FY18 Q1FY17 Q4FY17 FY17 Corporate/Wholesale Banking 724 601 738 2,670 Retail Banking 279 250 358 1,195 Treasury, BMU* & 389 285 339 1,283 Corporate Centre Total 1,392 1,136 1,435 5,148 * Balance Sheet Management Unit 11
Slide 12: Customer Assets
Customer Assets 30-Jun-17 (` 142,359 cr) Customer Assets ` cr 30-Jun-17 30-Jun-16 31-Mar-17 Corporate Banking 46,046 38,067 41,703 CV/CE 11,442 8,454 10,827 Agriculture Division 18,563 16,365 18,969 Business Banking 17,527 16,990 17,884 Home Loans and LAP 27,459 23,479 26,121 Small Business, PL & 18
Slide 13: Branches & Deposits
Branches & Deposits CASA (` cr) Highlights CASA % 43.9% 37.4% 44.0% 1,362 branches as on 30th Jun, 2017 Plan to reach ~1,400 branches by FY18 CASA and TDs below ` 5 cr constitute 74% of total deposits TDs below ` 1 cr were ` 41,456 cr TD Sweep deposits 6.8% of the total deposits Cost of
Slide 14: Balance Sheet
Balance Sheet ` cr 30-Jun-17 30-Jun-16 31-Mar-17 Networth 34,318 24,744 27,616 Deposits 163,518 140,028 157,426 CA 27,742 21,854 27,761 SA 44,026 30,564 41,504 Term Deposits 91,750 87,610 88,161 Of which: TD Sweep 11,126 8,691 10,079 Borrowings 19,696 17,063 21,095 Other Liabilities and Provisions 8
Slide 15: The Customer
The 811 Customer 47% Of 811 82% Customers are Customers are between Salaried 18-35 yrs of employees 82% age 63% Of 811 9M+ Total Customers customers of come from the bank top 20 Cities exceed 9 mn 15
Slide 16: Digital – Best In Class Experience
Digital – Best In Class Experience Q1FY18 Mobile Banking app rated 4.5 on Google Play Store Recurring Deposit 69% sourced digitally MOBILE BANKING GROWTH % Term Deposit 134% 117% 59% sourced digitally Value Volume (QnQ) (QnQ) Digital Share of 21% Salaried Personal Loan June’17 55% of Bank Mobile Ban
Slide 17: Lifestyle made easy with Mobile App & Payments
Lifestyle made easy with Mobile App & Payments Payments highlights 811 – Monthly transactions on Mobile was Account Opening 115% ` 6,075 cr in June’17 (Jun’17 v/s through Jun’16) MB Payment Gateway transactions 89% Value growth (Jun’17 v/s Jun’16) UPI 32% Payment Gateway volume growth (Jun’17 v/s Ju
Slide 18: Transformation
Transformation Service Requests • Digitized scan workflow • TAT of 4 hours • 90% SR’s Processed in 0-1 Day Robotics Process Automation • Significant reduction in Turn around time for majority of the projects • Towards Error Free and provides scalability, 24X7 Customer Experience and Journey - Prime
Slide 19: Digital Update – Subsidiaries
Digital Update – Subsidiaries Kotak Securities Kotak Life Insurance Individual Policies sourced Growth in Mobile average in Q1FY18 through Genie daily volumes over Q1FY17 (Tablet based end to end sales solution) Launch of Mutual Fund (Sales in Q1) of business investment platform on comes through Gen
Slide 20: Kotak Mahindra Prime
Kotak Mahindra Prime Customer Assets* (` cr) & NNPA (%) ` cr Q1FY18 Q1FY17 Q4FY17 FY17 NII 272 242 265 1,017 Other Income 57 52 65 225 Total Income 329 293 330 1,242 Profit Before Tax 203 183 203 788 Profit After Tax 132 120 133 515 CAR (%) 17.2 ROA (%) - annualised 2.0 * Customer Assets includes lo
Slide 21: Kotak Mahindra Investments
Kotak Mahindra Investments Customer Assets* (` cr) & NNPA (%) ` cr Q1FY18 Q1FY17 Q4FY17 FY17 NII 73 60 77 270 Other Income 7 12 23 81 NII and Other Income 80 72 100 351 Profit Before Tax 69 61 83 290 Profit After Tax 45 40 56 196 CAR (%) 16.8 ROA (%) - annualised 3.1 * Customer Assets includes loans
Slide 22: Kotak Securities
Kotak Securities Market ADV (` ‘000 cr) ADV (` cr) - KS 567 318 476 407 ` cr Q1FY18 Q1FY17 Q4FY17 FY17 Total Income 365 238 366 1,184 Profit Before Tax 187 92 182 543 Profit After Tax 125 60 121 361 Market Share * (%) (YTD) 1.9 2.4 2.2 2.2 *excluding BSE Derivative segment Kotak Securities services
Slide 23: Kotak Mahindra Old Mutual Life Insurance
Kotak Mahindra Old Mutual Life Insurance New Business Premium (` cr) Highlights 482 384 981 2,278 Individual Regular NBP grew at 31% YoY. of which ULIP is 33% Sum assured increased by 22% YoY Investment Performance of 100% Equity Funds in Quartile 1 on three and five year basis KLI Individua
Slide 24: Kotak Mahindra Capital Company
Kotak Mahindra Capital Company Advisory Equity Financial Advisor to Kotak Qualified Institutional Placement of Mahindra Bank for acquisition of State Bank of India 26% stake in Kotak Life from Old ` 15,000 cr ` 1,293 cr Mutual Plc Qualified Institutional Placement of Kotak Mahindra Bank Limited Buyb
Slide 25: Assets Under Management
Assets Under Management Jun 30, 2017 Jun 30, 2016 AUM ` 152,209 cr AUM ` 110,926 cr 25
Slide 26: Kotak Mahindra AMC & Trustee Co.
Kotak Mahindra AMC & Trustee Co. Average Assets Under Management (` cr) - Overall Average Assets Under Management (` cr) - Equity Highlights AAUM crossed ` 100,000 cr during qtr ` cr Q1FY18 Q1FY17 Q4FY17 FY17 Equity (ex-arbitrage) AAUM grew 118% Profit Before Tax 21 29 20 84 Vs Industry growth o
Slide 27: Geographical Presence
Geographical Presence 2 Branches 1,362 [No./%] 9 North 69 403/30% 8 47 98 1 West East 54 64 4 423/31% 82/6% 14 1 127 36 8 1 South 16 36 454/33% 17 2 Branch Classification 288 83 6 No of ATMs 108 154 77 2,173 32 27
Slide 28: Group Profile
GROUP PROFILE
Slide 29: The Journey So far…
The Journey So far… Acquired Bill Investment Mutual Alternate Scheme of Discount Banking Fund Securities Assets Pinebridge MF 1985 1991 1998 2001 2004 2014 1990 1992 2000 2003 2008 2015 Auto IPO Life BANK ARC ING Vysya Finance Insurance Merger Kotak Mahindra General Insurance 2016 – Acquisition of B
Slide 30: 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 31: 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 32: 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 33: 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 34: Bank Awards & Recognition
Bank Awards & Recognition Best Corporate & Investment Bank for India Asiamoney Best Bank Awards 2017 - India Fastest Growing Midsized Bank 2017 Business Today-Money Today Financial Awards Best Growing Mid-Size Bank Businessworld Magna Best Banks Awards 2017 Company of the Year 2016 The Economic Time
Slide 35: Awards and Recognition
Awards and Recognition Best Broker in India Business World Award Securities Advisory Firm of the FinanceAsia Country Awards Year in India Excellence in L&D for 2016 for Achievement 2015 Corporate Intl Global Awards – 2017, 2016, 2014, 2012 BSE recognised K-Sec (FY 15-16) The Asset Triple A Country •
Slide 36: 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 37: 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 | Group Head, Commercial Banking, Kotak Mahindra Bank On being a professional entrepreneur | Joined Kotak Mahindra Finance as Assistant Manger and w
Slide 38: 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 and Priority Banking, Kotak Mahindra Bank On being a professional entrepreneur My first job at Kotak was to garner l
Slide 39: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work MOHAN SHENOI Joined Kotak in 2002; Current charge | President & Chief Operating Officer, Kotak Mahindra Bank On being a professional entrepreneur | Very few in the banking industry have the experience of starting a new bank. I had this rare privilege
Slide 40: 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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