Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q2 FY2016 Earnings Presentation
40 slides from Kotak Mahindra Bank's earnings presentation, 2015
Slide 1: Investor Presentation Q2FY16
INVESTOR PRESENTATION Q2FY16
Slide 2: Standalone Highlights Q2FY16
Standalone Highlights Q2FY16 PAT NIM LOANS NET NPA ` 570 cr 4.3% ` 111,662 cr 1.05% [5.0%] [ ` 60,948 cr] [1.00%] [ ` 445 cr] TOTAL CAR # BRANCHES CASA ASSETS 16.1% 36% [17.6%] ` 175,426 cr Tier I 1,269 ` 44,657 cr [ ` 95,430 cr] 14.9% [641] [ ` 21,165 cr] [16.6%] Figures in [brackets] are Q2FY15 nu
Slide 3: Integration Update
Integration Update Jun-15 Sep-15 Dec-15 E Apr-16 E Wholesale Bkg • Private Banking • Mortgages • Branch Banking Treasury • Currency Chest • Call Center • Business Banking Wholesale Credit • Branch Infra • Personal Loan • Agri Tax • Services • Cons. Finance Ops • RL Ops Compliance • NR & Sy
Slide 4: Synergy Update
Synergy Update Revenue Synergy SA growth has boosted, impact of 6% visible in eIVBL network • 23% YoY growth in average balances in eIVBL branches Overall customer acquisition has gained momentum • Combined bank adding ~ 100,000 customers a month Recruitment to drive acquisition & product x-se
Slide 5: Provisions and costs arising post merger
Provisions and costs arising post merger Stressed Book Bad Bank formed in Q1FY16 (~6% of funded and non funded book of eIVBL) under experienced asset reconstruction team Most of the stressed assets being managed by this team At Q1FY16, we estimated additional provision of 0.5% of combined book
Slide 6: Profit and Loss Q2FY16
Profit and Loss Q2FY16 ` cr Q1FY16 Q2FY15 Q2FY16 FY15 Net Interest Income 1,598 1,039 1,679 4,224 Other Income 593 466 616 2,028 Net Total Income 2,191 1,505 2,295 6,252 Employee Cost* 929 355 623 1,450 Other Operating Expenses# 665 416 627 1,805 Operating Expenditure 1,594 771 1,250 3,255 Operating
Slide 7: Income Q2FY16
Income Q2FY16 NII (` cr) and NIM 5,000 5.0% 5.2% 4.9% 5.0% 4,000 4,224 4.8% 3,000 4.6% 4.3% 4.4% 2,000 4.2% 4.2% 1,598 1,679 4.0% 1,000 1,039 3.8% - 3.6% Q1FY16 Q2FY15 Q2FY16 FY15 NII NIM Other Income (` cr) Q1FY16 Q2FY15 Q2FY16 FY15 Fee and Services 418 321 457 1,353 Treasury Income 138 85 91 421 A
Slide 8: Segment Performance Q2FY16
Segment Performance Q2FY16 Bank Segmental PBT As per RBI (` cr) Q1FY16 Q2FY15 Q2FY16 FY15 Corporate/Wholesale Banking 369 335 530 1,402 Retail Banking # 12 210 328 957 Treasury, BMU* & (89) 135 11 468 Corporate Centre ** Unallocated Income - - - 6 Total 292 680 869 2,833 # Q1FY16 included retiral be
Slide 9: Advances & Investments
Advances & Investments 30-Sep-15 [` 111,662 cr] ` cr 31-Mar-15 30-Sep-14 30-Sep-15 Corporate Banking 20,299 21,140 33,909 CV/CE 5,204 5,062 6,123 Others Small Business, Personal Agriculture Division 12,106 10,137 17,112 loans & Credit Cards 2% 7% Corporate Business Banking 6,422 5,655 22,616 Banking
Slide 10: Balance Sheet
Balance Sheet ` cr 31-Mar-15 30-Jun-15 30-Sep-14 30-Sep-15 Networth 14,141 21,887 13,199 22,606 Deposits 74,860 116,812 68,103 123,211 CA 13,181 17,385 9,472 20,322 SA 14,036 22,730 11,693 24,335 Certificate of Deposit 3,785 11,074 4,653 8,987 Term Deposit Others 43,858 65,623 42,285 69,567 Borrowin
Slide 11: Key Ratios
Key Ratios CAR & Tier I (%) Savings Account (` cr & % of deposits) ^ including unaudited profits CAR (%) Tier I (%) 14,036 22,730 11,693 24,335 17.2% 17.6% 19.8% 16.5% 16.1% 19.5% 18.7% 16.2% 15.3% 16.6% 14.9% 17.2% Mar-15 Jun-15^ Sep-14^ Sep-15^ Mar-15 Jun-15 Sep-14 Sep-15 GNPA and NNPA (%) Asset Q
Slide 12: Branches & Deposits
Branches & Deposits No of Branches Highlights Plan to reach 1400 Mar-15 Sep-14 Sep-15 branches by March 2017 641 1,269 CASA and TDs below ` 5 cr 684 constitute 72% of total deposits (65% as on Sep- 14) No of ATMs Mar-15 Sep-14 Sep-15 TDs below ` 1 cr were ` 34,105 cr (` 16,983 cr as on Sep-14)
Slide 13: Digital Focus @ Kotak
Digital Focus @ Kotak Mobility Top rated mobile app with > 80 features in Mobile banking Bill pymts, TD, RD, MF & Fund Transfers Simplified registration process Billpay reminders via Google Now Bharat banking App – Internet-free multilingual app with 25 Banking transactions incl. small-value Fund Tr
Slide 14: Digital Focus @ Kotak
Digital Focus @ Kotak Highlights 8% (Jul-15) share in value of mobile banking transactions; while share of industry advances & deposits is 1.6% & 1.3% resp (Jun-15) – RBI data Ranked at No. 5 with highest growth of 81% from Apr-15 to Jul-15 in terms of value of mobile banking transactions across
Slide 15: Geographical Presence
Geographical Presence Branches 1,269 [28] [No./%] 2 361/28% North 9 63 West East 7 37 391/31% 64/5% 94 1 46 54 South 453/36% 4 9 1 1 114 27 7 35 No of ATMs 13 2 15 269 1,934 83 Bank has a Rep office in Dubai 6 108 153 77 32 15
Slide 16: Consolidated Highlights Q2FY16
Consolidated Highlights Q2FY16 PAT CAR # LOANS BOOK VALUE PER SHARE 16.5% [17.9%] ` 942 cr Tier I # ` 134,669 cr ` 171 [ ` 81,418 cr] [ ` 718 cr] 15.5.% [ ` 133* ] [17.1%] NIM NETWORTH NET NPA TOTAL ASSETS 4.4% ` 31,333 cr 0.93% ` 219,527 cr [5.0%] [ ` 20,554 cr] [0.84%] [ ` 134,401 cr] Figures in [
Slide 17: Consolidated Key Financials
Consolidated Key Financials Advances [` cr] Networth [` cr] 125,522 134,669 31,333 30,226 88,632 81,418 22,153 20,554 Mar-15 Jun-15 Sep-14 Sep-15 Mar-15 Jun-15 Sep-14 Sep-15 Total Assets [` cr] PAT [` cr] 208,689 219,527 942 148,576 134,401 718 517 Q1FY16 Q2FY15 Q2FY16 Mar-15 Jun-15 Sep-14 Sep-15 17
Slide 18: Consolidated Advances & Investments
Consolidated Advances & Investments 30-Sep-15 (` 134,669 cr) ` cr 31-Mar-15 30-Sep-14 30-Sep-15 Corporate Banking 24,546 24,845 37,569 Small Business, Personal loans & Others CV/CE 5,204 5,062 6,123 Credit Cards 4% Agriculture Division 12,106 10,137 17,112 6% Corporate Business Banking 6,422 5,655 2
Slide 19: Consolidated PAT
Consolidated PAT ` cr Q1FY16 Q2FY15 Q2FY16 H1FY15 H1FY16 FY15 Kotak Mahindra Bank 190 445 570 875 759 1,866 Kotak Life Insurance 66 52 48 101 114 229 Kotak AMC and TC 20 (1) 23 (1) 43 (29) Kotak Securities 67 66 78 134 145 290 Kotak Mahindra Capital 3 (7) 7 (11) 10 12 Kotak Mahindra Prime 119 125 12
Slide 20: Entity Wise Networth
Entity Wise Networth ` cr 31-Mar-15 30-Jun-15 30-Sep-14 30-Sep-15 Kotak Mahindra Bank 14,141 21,887 13,199 22,606 Kotak Life Insurance 1,291 1,337 1,143 1,385 Kotak AMC and TC 102 121 125 144 Kotak Securities 2,384 2,451 2,228 2,529 Kotak Mahindra Capital 415 418 391 425 Kotak Mahindra Prime 3,350 3
Slide 21: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance New Business Premium (` cr) Highlights 387 331 461 1,540 Individual regular business grew by 93% against private insurance industry growth of 15% Group business grew by 60% 170 239 791 247 On APE basis, Kotak Bank share for Q2FY16 is 48% (PY – 33%) for 20 147 firs
Slide 22: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance 13th Month Persistency* & Conservation Ratio Surrenders and AUM (` cr) 85% 16,000 762 792 14,483 900 14,000 800 12,413 700 12,000 10,231 10,000 600 79% 631 500 77.6% 78.0% 8,000 400 6,000 300 4,000 200 2,000 100 - - LY CY H1FY14 H1FY15 H1FY16 7.4% 6.4% 4.4% 13th Month P
Slide 23: Kotak Mahindra AMC & Trustee Co
Kotak Mahindra AMC & Trustee Co Average Assets Under Management (`cr) Highlights Closing equity market 56,751 share in Sep-15 at 3.35% up from 2.59% in Mar 15 48,337 80% of equity AUM in 37,763 38,600 Quartile 1 15% growth in overall AAUM in Q2FY16 vs Q1FY16 against an industry AAUM growth of
Slide 24: Asset Under Management
Asset Under Management Sep 30, 2014 Sep 30, 2015 326 354 14,483 12,413 1% 1% 15% 19% 37,205 39% 28,590 43% 25% 19% 23,672 12,252 9% 6% 14% 9% 5,847 6,184 14,476 5,892 Domestic MF Debt Domestic MF Equity Alternate Asset Offshore Funds Insurance PMS AUM ` 65,657 cr AUM ` 96,037 cr 24
Slide 25: Kotak Securities
Kotak Securities Market ADV (` ‘000 cr) ADV (` cr) - KS 290 244 281 250 21 21 51 20 52 21 7,813 7,593 50 51 7,107 6,621 218 174 208 178 Q1FY16 Q2FY15 Q2FY16 FY15 Q1FY16 Q2FY15 Q2FY16 FY15 Option Future Cash ` cr Q1FY16 Q2FY15 Q2FY16 FY15 Total Income 250 224 270 960 Profit Before Tax 102 100 120 441
Slide 26: Kotak Mahindra Capital Co.
Kotak Mahindra Capital Co. Advisory Equity Divestment of controlling Qualified Institutional Placement interest in National Collateral (QIP of NCD + Warrants) Management Services to Fairfax ` 5,435 cr* Warrants + ` 5,000 cr NCDs ` 876 cr * Assuming full conversion of warrants Acquisition of controll
Slide 27: Kotak Mahindra Prime
Kotak Mahindra Prime Customer Assets (`cr) & NPA (%) 25,000 0.6% 0.5% 0.4% 0.4% 0.5% 20,000 0.4% 15,000 0.3% 14,726 15,754 0.3% 15,070 13,946 10,000 0.2% 5,000 0.1% 4,981 4,658 4,873 4,259 0 0.0% Mar-15 Jun-15 Sep-14 Sep-15 Car Others Net NPA (%) ` cr Q1FY16 Q2FY15 Q2FY16 FY15 NII 235 227 237 915 Ot
Slide 28: Kotak Mahindra Investment
Kotak Mahindra Investment Customer Assets (`cr) & NPA (%) 4,500 4,024 0.3% 0.2% 4,000 3,500 3,268 3,431 0.2% 3,000 2,359 0.2% 2,500 0.1% 0.1% 0.1% 2,000 0.1% 1,500 1,000 0.1% 500 0 0.0% Mar-15 Jun-15 Sep-14 Sep-15 Customer Assets Net NPA (%) ` cr Q1FY16 Q2FY15 Q2FY16 FY15 NII 48 39 63 164 Other Inco
Slide 29: Group Profile
GROUP PROFILE
Slide 30: The Journey So far
The Journey So far… Kotak Mahindra Bank is the 4th Largest Private Sector Bank Rating for Bank, KMP, KMIL, KS 30
Slide 31: Organizational Overview
Organizational Overview @) kotak KOTAK MAHINDRA BANK Commercial Bank & Holding Company Kotak Mahindra Prime + Car Finance + Other Lending Kotak Mahindra Old Mutual Life Insurance + Life Insurance Kotak Mahindra Financial Services + Advisory Services for Middle East Kotak Mahi Investments + Investmen
Slide 32: Kotak Uniqueness
Kotak Uniqueness - Strong capital base: Bank’s - Ability to take advantage CRAR* -16.1% as on 30 Sep 15 of opportunities & build - Strong on ground relationships profitable business models key contributor to achieve low risk & high return - Ability to gauge warning - Consistent stock performance sig
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 Bank in India Euromoney Awards for Excellence, Asia 2015 Best Private Bank India FinanceAsia Country Awards 2015 Best Retail Growth Performance Dun & Bradstreet Awards 2015 Most Imminent Bank 2014 DataQuest Business Excellence in Security Mr. Uday Kotak by Outlook Mone
Slide 35: Awards and Recognition
Awards and Recognition Best Brokerage House - India - Best Broker in India Best Domestic Equity House The Asset Triple A Country FinanceAsia Country Awards for Asiamoney – 2015 Awards 2014 Achievement 2015 SKOCH BSE Aspiring Ranked #1 on a weighted formula Best SEO for Website, India Nation Award 20
Slide 36: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work C JAYARAM Joined Kotak in 1990; First charge | Vice President, Kotak Mahindra Finance Current charge | Joint Managing Director, Kotak Mahindra Bank On being a professional entrepreneur | When I joined Kotak, I didn’t really foresee that I would be run
Slide 37: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work ARVIND KATHPALIA Joined Kotak in 2003; First charge | Group Head , Operations, Technology & Finance, Kotak Mahindra Finance Current charge | President and Group Chief Risk Officer, Kotak Mahindra Bank On being a professional entrepreneur | I joined Ko
Slide 38: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work JAIMIN BHATT Joined Kotak in 1995; First charge | Proprietary Investments Current charge | President & Group CFO On being a professional entrepreneur | My initial work at Kotak was in the area of Proprietary Investments, where I worked with Narayan (S
Slide 39: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work NARAYAN S.A. Joined Kotak in 1992; First charge | Associate Vice President, Kotak Mahindra Finance (Operations); Current charge | President – Commercial Banking, Kotak Mahindra Bank On being a professional entrepreneur | In 1996, broking was largely s
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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