Axis Bank Limited · NSE:AXISBANK
Axis Bank — Q3 FY2012 Earnings Presentation
34 slides from Axis Bank's earnings presentation, January 2012
Slide 1: FY 2011-12 Third Quarter Results Investor Presentation
FY 2011-12 Third Quarter Results Investor Presentation
Slide 2: Performance Highlights
Performance Highlights Q3FY12 9MFY12 Net Profit 24% YOY 25% YOY Net Interest Income 23% YOY 21% YOY Fee Income 26% YOY 33% YOY Operating Revenue 24% YOY 21% YOY Operating Profit 24% YOY 17% YOY Net Interest Margin 3.75% 3.61% Cost of Funds 6.34% 6.22% 1
Slide 3: Shareholder Returns
Shareholder Returns FY07 FY08 FY09 FY10 FY11 9MFY12 1.68 536.50 1.67 1.61 21.84 19.93 19.89 20.13 20.04 1.44 462.77 395.99 1.24 16.09 1.10 284.50 245.14 120.50 Book Value per Share (`) Return on Equity (%) Return on Assets (%) 2
Slide 4: Interpretation of Q3FY12 Performance
Interpretation of Q3FY12 Performance • Growth in the Bank‟s core businesses – Total Net Advances grew 20% YOY to `1,48,739 crores – Total Investments grew 51% YOY to `90,263 crores – Total Assets registered a 30% YOY growth, rising to `2,69,310 crores – Fees grew by 26% YOY, rising to `1,223 crores
Slide 5: Profitability
Profitability Sustained Growth: Robust Core Revenues Q3FY11 Q3FY12 9MFY11 9MFY12 Amounts in `Crores Amounts in `Crores 3,570 3,452 9,704 9,489 2,881 8,044 2,746 7,605 1,942 5,178 1,524 4,156 1,102 2,965 891 2,368 Net Profit Core Operating Core Net Profit Core Operating Core Operating Revenue Operati
Slide 6: Consistent Net Profit Growth
Consistent Net Profit Growth FY07 FY08 FY09 FY10 FY11 FY12 Amounts in ` Crores 1102 1020 942 920 891 742 765 735 656 562 582 532 501 403 361 330 307 228 212 175 185 121 142 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 3.78% 3.81% 6.13% 6.19% 6.34% 3.44% 3.75% 5.56% 4.79% 3.28% Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 NIMs for 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 Q3FY11 Q3FY12 9MFY11 9MFY12 Amounts in ` Crores Amounts in ` Crores 5,872 2,140 4,862 1,733 21% YOY 23% YOY NIIs for the last 5 years (` crore) FY07 1,468 FY08 2,585 FY09 3,686 FY10 5,004 FY11 6,563 CAGR 45% 7
Slide 9: Growing Demand Deposits
Growing Demand Deposits YOY Growth in Daily Average Demand Deposits and Total Deposits Deposit Q3FY12 9MFY12 Savings 19% 20% Current 4% 12% Total Demand Deposits 13% 17% Total Deposits 25% 25% Amounts in ` Crores 86,756 (42%) Demand Deposits 32% YOY 65,931 (42%) 1,21,937 Term Deposits 36% YOY 89
Slide 10: Fees
Fees Q3FY11 Q3FY12 9MFY11 9MFY12 Amounts in ` Crores Amounts in ` Crores 1,223 3,400 968 2,559 26% YOY 33% YOY Fees for the last 5 years (` crore) FY07 890 FY08 1,495 FY09 2,447 FY10 2,925 FY11 3,790 CAGR 44% 9
Slide 11: Fee Income Composition
Fee Income Composition 473 Q3FY11 Q3FY12 Amounts in ` Crores 352 328 261 232 186 95 109 58 66 15 13 Large & Mid Treasury & DCM Agri & SME Business Banking Capital Markets Retail Business Corporate Credit Banking 34% YOY 25% YOY 13% YOY 15% % YOY 12% YOY 26% YOY 1266 9MFY11 9MFY12 Amounts
Slide 12: Trading Profits
Trading Profits Trading Profits % of Operating Revenue Amounts in ` Crores 135 5% 3% 118 Q3FY11 Q3FY12 Q3FY11 Q3FY12 13% YOY 5% 439 216 2% 9MFY11 9MFY12 9MFY11 9MFY12 51 % YOY 11
Slide 13: Stressed Assets and Net NPA (%)
Stressed Assets and Net NPA (%) Gross NPAs Net NPAs Net NPA (%) Amount ` Crore Net NPA as at year-end 2,100 0.90% FY07 0.61% 1,915 FY08 0.36% 1,800 1,744 0.75% FY09 0.35% 1,599 1,573 FY10 0.36% 1,483 1,500 FY11 0.26% 0.60% 1,200 Cumulative Restructured Assets: `2,701 0.39% 0.45% crore (1.55% of gros
Slide 14: Business Overview
BUSINESS OVERVIEW AXIS BANK AXIS BANK
Slide 15: Network
Network Increasing Reach 1,493 971 1,390 921 983 643 792 515 644 405 544 332 Branches + Extension Counters* Centres Covered 8,324 Branch Demographics (Domestic) 6,270 Branches Extn. Counters Metro 417 6 4,293 3,595 Urban 464 3 2,764 2,341 Semi-urban 480 - Rural 123 - Total 1,484 9 ATMs March 2007 Ma
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) 70% of corporate advances have rating of at least „A‟ as at Dec 2011 8% 7% 8% 7% 6% 24% 23% 24% 25% 26% AAA AA 41% A 41% 43% 42% 41% BBB <BBB or unrated 25% 24% 27% 23% 23% 2% 2% 2% 3% 3% Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 16
Slide 18: SME and Agri Business
SME and Agri Business 31st Dec'10 31st Dec'11 Amounts ` Crore 20,692 17,053 10,771 10,700 SME Advances Agricultural & Microfinance Advances 21% YOY 1% YOY SME Centres 26 32 Agri Clusters 69 85 • Specialised SME Centres for SME • Specialised Clusters for Agricultural lending, appraisals, sanction
Slide 19: Distribution of Ratings: SME
Distribution of Ratings: SME 80% of SME advances have rating of at least „SME3‟ as at Dec 2011 2% 5% 5% 5% 6% 17% 18% 20% 18% 18% SME 1 SME 2 59% 59% 55% 56% 55% SME 3 SME 4 SME 5-8 12% 13% 12% 11% 12% 10% 7% 8% 8% 9% Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 18
Slide 20: Industry-wise Distribution (Top 10)
Industry-wise Distribution (Top 10) Outstanding as on 31 December 2011 (%)& Rank Sectors Non-fund Total Fund-based based 1. Power Generation 10.29 5.15 19.39 2. Infrastructure Construction* 9.24 7.23 12.79 3. Financial Companies** 8.92 7.98 10.59 4. Engineering & Electronics 6.34 3.33 11.69 5. Metal
Slide 21: Business Banking
Business Banking Cash Management Services & Government Business 31st Dec'10 31st Dec'11 • Collection of Central Government taxes on 10,347 behalf of CBDT and CBEC, including through e-payments 7,789 • Collection of State Government taxes on behalf of 8 State Governments and UTs • Collections and pay
Slide 22: Business Banking
Business Banking Current Accounts Growth 31-Dec-10 31-Dec-11 31-Dec-10 31-Dec-11 Amount ` Crore Amount ` Crore 39,459 25,167 26,158 26,799 Period End Balance Daily Average Balance (Q3) 47% YOY 4% YOY • Wide range of products Current Account deposits (` Crore) for the last 5 years (as on 31st Mar
Slide 23: Treasury
Treasury Q3FY11 Q3FY12 Q3FY11 Q3FY12 143,645 Amount ` Crore 127.9 30.2 75,252 18.9 Q3FY11 Q3FY12 30.3 Forex Turnover SLR & Money Market FX & Derivatives Trading Trading 48% YOY 37% YOY 322% YOY 374,620 9MFY11 9MFY12 9MFY11 9MFY12 221.2 Amount ` Crore 257,630 92.4 9MFY11 9MFY12 86.3 10.5 Forex
Slide 24: Debt Capital Markets
Debt Capital Markets Q3FY11 Q3FY12 9MFY11 9MFY12 Amount ` Crore Amount ` Crore 30,297 81,106 20,846 69,458 45% YOY Placement & Syndications 17% YOY (Debentures / Bonds) • A dominant player in placement and syndication of debt issues • Ranked No.1 Debt Arranger by Bloomberg for calendar year ende
Slide 25: Retail Deposits
Retail Deposits Savings Deposits Savings & Retail Term Deposits Amount ` Crore Amount ` Crore 91,883 47,297 45,046 69,311 39,132 37,732 31-Dec-10 31-Dec-10 31-Dec-11 31-Dec-11 Period End Balance Daily average Period End Balance balance (Q3) 21% YOY 19% YOY 33% YOY Savings Bank deposits (` Cror
Slide 26: Third Party Products Business
Third Party Products Business Q3FY11 Q3FY12 9MFY11 9MFY12 Amount ` Crores Amount ` Crores 234 • Focus on cross-selling to 98 existing customers to generate fee income • Third-party products sold include 65 mutual funds, insurance, on-line 119 broking, portfolio management services (non-discretionary
Slide 27: Retail Assets
Retail Assets 31st Dec'10 31st Dec'11 31st Dec'10 31st Dec'11 Amount ` Crores 33,264 1,560,053 1,443,079 • Retail Assets constitute 22% 25,191 of the bank‟s total advances, as compared to 20% as on 31st December 2010 • Growth driven through 95 Asset Sales Centres (ASCs) Portfolio Size No. of Account
Slide 28: Composition of Retail Assets
Composition of Retail Assets Product-wise composition of Retail Assets portfolio (31st Dec‟11) Cards Non-Schematic 1% 5% Personal Loans 6% Auto loans 13% Housing Loans 75% 27
Slide 29: Cards, Retail Forex & Remittances Business
Cards, Retail Forex & Remittances Business Q3FY11 Q3FY11 9MFY11 9MFY12 Amounts in ` Crores Amounts in ` Crores 111 301 80 201 39% YOY 50% YOY Fee Income • Issuance – Over 7.23 lac Credit Cards in force till end December „11 – Travel Currency Cards in 12 currencies -USD, Euro, GBP, AUD, CAD, SGD,
Slide 30: ATM Channel Migration
ATM Channel Migration Dec'10 Dec'11 114 10,994 96 478 7,850 348 Intl. debit card base (lakhs) Monthly Cash Withdrawals No. of Monthly Transactions (lakhs) `crore 19% YOY 40% YOY 37% YOY • Pioneer in ATM sharing arrangements • Value added services such as bill payments, mutual fund investments,
Slide 31: International Presence
International Presence • Branches at Singapore, Hong Kong, DIFC - Dubai and Colombo • Representative offices at Shanghai, Dubai and Abu Dhabi • Axis U.K. Ltd. incorporated as a subsidiary • Total assets overseas amounted to US$ 5.42 billion as compared to US$ 4.99 billion as at end December ‟10, a g
Slide 32: Shareholding
Shareholding Shareholding pattern (Dec ‟11) • Share Capital - `412.57 crore • Net Worth - `21,161.26 crore SUUTI Others 23.57% • Book Value per share - `536.50 35.25% • Market Price as on 19/01/12 - `955.05 LIC 9.80% • Market Cap as on 19/01/12 - `39,403 crore (US $ 7.84 billion) FIIs 31.38% 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 A