Axis Bank Limited · NSE:AXISBANK
Axis Bank — Q1 FY2012 Earnings Presentation
34 slides from Axis Bank's earnings presentation, July 2011
Slide 1: FY 2011-12 First Quarter Results Investor Presentation
FY 2011-12 First Quarter Results Investor Presentation
Slide 2: Performance Highlights
Performance Highlights Q1FY12 Net Profit 27% YOY Net Interest Income 14% YOY Fee Income 42% YOY Operating Revenue 15% YOY Operating Profit 7% YOY Net Interest Margin 3.28% Cost of Funds 6.13% 1
Slide 3: Shareholder Returns
Shareholder Returns OFYO7 w@FY08 OFYOS @FY10 OFY11 OQt1FY12 1.68 1.67 1.61 485.98 21.84 462.77 49.93 19-89 20.13 20.31 6.09 Book Value per Share (®) Return on Equity (%) Return on Assets (%) 2 A
Slide 4: Interpretation of Q1 FY12 Performance
Interpretation of Q1 FY12 Performance • Growth in the Bank‟s core businesses – Total Net Advances grew 21% YOY to `1,31,900 crore – Total Investments grew 31% YOY to `75,307 crore – Total Assets registered a 23% YOY growth, rising to `2,33,141 crore – Fees grew by 42% YOY, rising to `1,057 crore – S
Slide 5: Profitability
Profitability Sustained Growth: Robust Core Revenues Amount ` in Crore 27% YOY 19% YOY 15% YOY 22% YOY Note: Core Operating Revenue and Profit excludes trading gains / losses 4
Slide 6: Consistent Net Profit Growth
Consistent Net Profit Growth Amount ` in Crore Quarterly Net Profits 5
Slide 7: Net Interest Margin and Cost of Funds
Net Interest Margin and Cost of Funds NIMs in the last 5 years: FY07 2.74% FY08 3.47% FY09 3.33% FY10 3.75% FY11 3.65% 6
Slide 8: Growing Net Interest Income
Growing Net Interest Income Amount ` in Crore NIIs for the last 5 years (` Crore) FY07 1,468 FY08 2,585 FY09 3,686 FY10 5,004 FY11 6,563 CAGR 45% 14% YOY 7
Slide 9: Growing Demand Deposits
Growing Demand Deposits YOY Growth in Daily Average Demand and Term Deposits Deposit Q1FY12 Savings 22% Current 16% Total Demand Deposits 20% Total Deposits 30% Amount ` in Crore (41%) (40%) 26% YOY 24% YOY (60%) (59%) 8
Slide 10: Fees
Fees Amount ` in Crore Fees for the last 5 years (` Crore) FY07 890 FY08 1,495 FY09 2,447 FY10 2,925 FY11 3,790 CAGR 44% 42% YOY 9
Slide 11: Fee Income Composition
Fee Income Composition Amount ` in Crore 81% YOY 24% YOY 14% YOY 4% YOY 19% YOY 42% YOY Note: Previous year‟s figures have been restated pursuant to a realignment of the organisation structure 10
Slide 12: Trading Profits
Trading Profits Trading Profit % of Operating Revenue Amount ` in Crore 64% YOY 11
Slide 13: Stressed Assets and Net NPA (%)
Stressed Assets and Net NPA (%) Amount ` in Crore Net NPA as at year-end FY07 0.61% FY08 0.36% FY09 0.35% FY10 0.36% FY11 0.26% Cumulative Restructured Assets: `2,151 crore (1.44% of gross customer assets) as on 30th June 2011 • Of which, `1,763 crore restructured prior to Q1FY11 continued to be cla
Slide 14: Business Overview
BUSINESS OVERVIEW AXIS BANK A
Slide 15: Network
Network Increasing Reach Branch Demographics (Domestic) Branches Extn. Counters Metro 377 6 Urban 453 2 Semi-urban 455 - Rural 118 - Total 1403 8 *Excludes service branches and credit processing centres 14
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 – Infrastructure – Mid Corporates • Rigorous and regular
Slide 17: Distribution of Ratings
Distribution of Ratings (Large and Mid Corporate) 75% of corporate advances have rating of at least „A‟ as at June 2011 16
Slide 18: SME and Agri Business
SME and Agri Business Amount ` in Crore 18% YOY 39% YOY SME Centres 26 32 Agri Clusters 64 85 • Specialised SME Centres for SME • Specialised Clusters for Agricultural lending, appraisals, sanctions and post- coordinating appraisals, sanctions and post- sanction monitoring sanction monitoring •
Slide 19: Distribution of Ratings: SME
Distribution of Ratings: SME 80% of SME advances have rating of at least „SME3‟ as at June 2011 18
Slide 20: Industry-wise Distribution
Industry-wise Distribution Across Large Corporate, Mid-Corporate, SME & Corporate Agriculture Outstanding as on 30 June 2011 (%) Rank Sectors Non-fund Total Fund-based based 1. Financial Companies** 11.84 12.21 11.25 2. Infrastructure* 11.11 8.61 15.15 3. Power Generation & Distribution 9.81 5.54 16
Slide 21: Business Banking
Business Banking Cash Management Services & Government Business 30-Jun-10 30-Jun-11 • Collection of Central Government taxes on behalf of CBDT and CBEC, including through 8,755 e-payments • Collection of State Government taxes on 6,832 behalf of 8 State Governments and UTs • Collections and payments
Slide 22: Business Banking
Business Banking Current Accounts Growth Amount ` in crore Current Account deposits (` Crore) for the last 5 years (as on 31st March) Mar‟07 11,304 Mar‟08 20,045 Mar‟09 24,822 Mar‟10 32,168 Mar‟11 36,917 CAGR 34% 28% YOY • Wide range of products • Customised offerings for various business segments
Slide 23: Treasury
Treasury Amount ` in Crore Forex Forex SLR & Money Derivatives Turnover Trading Market trading trading 20% YOY 349% YOY 11% YOY 22
Slide 24: Debt Capital Markets
Debt Capital Markets Amount in ` crore Placements & Syndication 12% YOY • A leading player in placement and syndication of debt issues • Ranked No. 1 Debt Arranger by Prime Database for the year ended 31st March 2011 • Ranked No.1 Debt Arranger by Bloomberg for quarter ended June 2011 & YTD 2011 •
Slide 25: Retail Deposits
Retail Deposits Savings Bank deposits (` Crore) for the last 5 years (as on 31st March) Mar‟07 12,126 Mar‟08 19,982 Mar‟09 25,822 Mar‟10 33,862 Mar‟11 40,850 CAGR 35% Term deposit portfolio as on 30th June 2011 • TD (upto `1crore) : `29,796 • TD (>1crore & <=5crore) : ` 7,265 • Others : `72,122 Savi
Slide 26: Third Party Products Business
Third Party Products Business Amount ` in Crore • Focus on cross-selling to existing customers • Third-party products sold include mutual funds, insurance, on-line broking, portfolio management services (non-discretionary) and gold coins • Systematic customer segmentation 202% YOY 25
Slide 27: Retail Assets
Retail Assets Amount ` in Crore • Retail Assets grew by 28% YOY • Retail Assets constitute 20% of the bank‟s total advances, as compared to 19% as at end June ‟10. 28% YOY 18% YOY 26
Slide 28: Composition of Retail Assets
Composition of Retail Assets Product-wise composition of Retail Assets portfolio (June ‟11) 27
Slide 29: Cards, Retail Forex & Remittances Business
Cards, Retail Forex & Remittances Business Q1FY11 Q1FY12 Amount ` in Crore • Issuance 81 – Over 6.48 lac Credit Cards in force till end June „11 57 – 1st Indian Bank to launch Travel Currency Cards in 11 currencies - USD, Euro, GBP, AUD, CAD, SGD, SEK, CHF, JPY, AED, SAR – 1st Indian Bank to launch
Slide 30: ATM Channel Migration
ATM Channel Migration `crore 21% YOY 29% YOY 24% YOY • Pioneer in ATM sharing arrangements • Value added services such as bill payments, mutual fund investments, mobile top-ups and VISA money transfer services 29
Slide 31: International Presence
International Presence • Branches at Singapore, Hong Kong and DIFC, Dubai • Representative offices at Shanghai, Dubai and Abu Dhabi • Axis U.K. Ltd. Incorporated as a subsidiary • Total assets overseas amounted to US$ 4.52 billion as compared to US$ 3.45 billion as at end June ‟11, a growth of 31% Y
Slide 32: Shareholding
Shareholding Shareholding pattern (Jun ‟11) • Share Capital - `411.88 crore • Net Worth - `19,151.27 crore • Book Value per share - `485.98 • Market Price as on 21/07/11 - `1,239.60 • Market Cap as on 21/07/11 - `51,057crore (US $ 11.47 billion) 31
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
Thank You 33 AXIS BANK A