Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q4 FY2018 Earnings Presentation
39 slides from Kotak Mahindra Bank's earnings presentation, 2018
Slide 1: Investor Presentation Q4FY18
INVESTOR PRESENTATION Q4FY18
Slide 2: Consolidated Highlights Q4FY18
Consolidated Highlights Q4FY18 PAT CAR LOANS BOOK VALUE 18.4% PER SHARE [17.2%] ` 1,789 cr Tier I ` 205,997 cr ` 264.9 [` 1,404 cr] 17.8% [` 167,125 cr] [` 209.1] [16.5%] NIM NETWORTH NET NPA TOTAL ASSETS 4.30% ` 50,486 cr 0.86% ` 337,720 cr [4.61%] [` 38,491 cr] [1.09%] [` 276,188 cr] Figures in [b
Slide 3: Consolidated PAT
Consolidated PAT ` cr Q4FY18 Q4FY17 Q3FY18 FY18 FY17 Kotak Mahindra Bank 1,124 976 1,053 4,084 3,411 Kotak Mahindra Prime 160 133 148 590 515 Kotak Mahindra Investments 95 56 50 245 196 Kotak Securities 134 121 154 531 361 Kotak Mahindra Capital 25 11 36 65 46 Kotak Mahindra Life Insurance 114 101 9
Slide 4: Entity wise Networth
Entity wise Networth ` cr 31-Mar-18 31-Mar-17 31-Dec-17 Kotak Mahindra Bank 37,482 27,616 36,297 Kotak Mahindra Prime 4,816 4,227 4,657 Kotak Mahindra Investments 1,382 1,038 1,187 Kotak Securities 3,527 2,996 3,393 Kotak Mahindra Capital 559 493 533 Kotak Mahindra Life Insurance 2,238 1,825 2,124 K
Slide 5: Consolidated Customer Assets
Consolidated Customer Assets 31-Mar-18 (` 205,997 cr) Customer Assets ` cr 31-Mar-18 31-Mar-17 31-Dec-17 Corporate Banking 60,420 48,220 58,182 CV/CE 15,202 10,827 13,251 Agriculture 22,916 18,969 20,550 Division Business Banking 18,269 17,884 18,017 Auto loans 20,115 18,330 20,005 Home Loans and 32
Slide 6: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance ` cr FY18 Product Mix# FY18 Indian Embedded Value (IEV)* 5,824 Participating Products 35% Value of New Business (VNB) 522 Non-Participating Products 29% VNB Margin (%) 29.3% ULIP 36% Highlights Channel Mix FY18 5th rank among private insurance 53% Bancassurance compan
Slide 7: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance New Business Premium (` cr) Highlights 1,404 1,128 831 3,404 2,680 Individual Regular NBP grew 30% YoY (FY18); ULIP Mix 34% Individual renewal premium grew 32% YoY (FY18) Sum assured increased by 25% YoY ` cr Q4FY18 Q4FY17 Q3FY18 FY18 FY17 Capital 562 562 562 562
Slide 8: Standalone Highlights Q4FY18
Standalone Highlights Q4FY18 PAT NIM LOANS NET NPA ` 1,124 cr 4.35% ` 169,718 cr 0.98% [` 976 cr] [4.63%] [` 136,082 cr] [1.26%] TOTAL CAR BRANCHES CASA ASSETS 18.2% [16.8%] Tier I ` 264,933 cr 17.6% 1,388 50.8% [` 214,590 cr] [1,369] [44.0%] [15.9%] Figures in [brackets] are Q4FY17 numbers 8
Slide 9: Profit and Loss Account
Profit and Loss Account ` cr Q4FY18 Q4FY17 Q3FY18 FY18 FY17 Net Interest Income 2,580 2,161 2,394 9,532 8,126 Other Income 1,151 1,003 1,040 4,052 3,477 Net Total Income 3,731 3,164 3,434 13,584 11,603 Employee Cost 766* 681 734 2,930* 2,745 Other Operating Expenses 947 781 880 3,496 2,873 Operating
Slide 10: Income and Asset Quality
Income and Asset Quality GNPA and NNPA Asset Quality SMA2 outstanding - ` 72 cr 0.04% of net advances GNPA: 2.22% NNPA: 0.98% Other Income (` cr) Q4FY18 Q4FY17 Q3FY18 FY18 FY17 Fee and Services 1,010 757 829 3,454 2,677 Others 141 246 211 598 800 Total 1,151 1,003 1,040 4,052 3,477 10
Slide 11: Segment Performance
Segment Performance Bank Segmental PBT As per RBI (` cr) Q4FY18 Q4FY17 Q3FY18 FY18 FY17 Corporate/Wholesale Banking 784 744 784 2,984 2,695 Retail Banking 500 358 391 1,511 1,195 Treasury, BMU* & 427 333 432 1,723 1,258 Corporate Centre Total 1,711 1,435 1,607 6,218 5,148 * Balance Sheet Management
Slide 12: Customer Assets
Customer Assets 31-Mar-18 (` 169,718 cr) Customer Assets ` cr 31-Mar-18 31-Mar-17 31-Dec-17 Corporate Banking 52,133 41,703 49,961 CV/CE 15,202 10,827 13,251 Agriculture Division 22,916 18,969 20,550 Business Banking 18,269 17,884 18,017 Home Loans and LAP 32,429 26,121 30,944 Small Business, PL & 2
Slide 13: Deposits
Deposits CASA (` cr) Highlights CASA % 50.8% 44.0% 46.7% CASA and TDs below ` 5 cr constitute 77% of total deposits TDs below ` 1 cr were ` 41,934 cr TD Sweep deposits 6.2% of the total deposits Cost of SA for Q4FY18 – 5.61% 1,388 branches as on 31st Mar, 2018 YoY % 58% Avg SA (Qtr) 61,223
Slide 14: Balance Sheet
Balance Sheet ` cr 31-Mar-18 31-Mar-17 31-Dec-17 Networth 37,482 27,616 36,297 Deposits 192,643 157,426 180,826 CA 32,246 27,761 25,927 SA 65,529 41,504 58,459 Term Deposits 94,868 88,161 96,440 Of which: TD Sweep 11,910 10,079 11,532 Borrowings 25,154 21,095 23,193 Other Liabilities and Provisions
Slide 15: Wealth + Priority
Wealth + Priority Wealth – HNIs : entrepreneurs, business families & employed professionals Priority: Mass Affluent • Consistently featured as the Best Private Bank, India across multiple Banking Surveys – Euromoney Private Banking Survey 2018 | Finance Asia Country Awards 2016 – Finance Asia Countr
Slide 16: Digital – Best In Class Experience
Digital – Best In Class Experience Q4FY18 88% Biometric Authentication Recurring 69% for Scan n Pay 32% < ` 2,000 Deposit Fixed sourced Deposit Digital share New Instant online digitally sourced of Salaried Age remittance digitally Personal thru Forex Loan (Value) Banking Portal ‘Kotak Remit’ Online
Slide 17: Digital: Other Highlights
Digital: Other Highlights Payments highlights Conversational Banking thru Total Payment Gateway Artificial 76% transactions Value growth (Mar’18 Intelligence v/s Mar’17) Phygital Approach- Digital mStore transactions Volume branches with 402% growth (Mar’18 v/s Mar’17) e-lobbies Kotak amongst the To
Slide 18: 811 Highlights
811 Highlights 44% of 811 customers – Salaried employees Offer Free Credit score for 90% Customers the 811 between 18-40 customers 82% years of age Customers open account 24x7 >13 Mn Total across over customers of the Bank 6,700 pincodes 65% of 811 Customers come from top 20 cities 18
Slide 19: Digital Update – Subsidiaries
Digital Update – Subsidiaries Kotak Securities Kotak Life Insurance Individual Policies sourced 171% growth YoY 86% in Q4FY18 through Genie (Tablet based end to end sales solution) in Mobile Cash ADV 93% Business (sales in Q4FY18) comes through Genie for BANCA channel 156% growth YoY in Mobile Total
Slide 20: Kotak Securities
Kotak Securities Market ADV (` ‘000 cr) ADV (` cr) - KS 864 476 717 704 407 ` cr Q4FY18 Q4FY17 Q3FY18 FY18 FY17 Total Income 448 386 463 1,655 1,239 Profit Before Tax 201 182 231 796 543 Profit After Tax 134 121 154 531 361 Market Share#* (%) (YTD) 1.9 2.2 2.0 1.9 2.2 *excluding BSE Derivative segme
Slide 21: Kotak Mahindra Capital Company
Kotak Mahindra Capital Company Equity Advisory TATA STEEL LIMITED Financial Advisor to Birlasoft and CK Birla Group for the acquisition of ITSS business # Rights Issue ` 3,600 cr of KPIT through merger and demerger ` 12,704 cr Acquisition of 26% shareholding in KPIT BANDHAN BANK LIMITED KPIT Promote
Slide 22: Assets Under Management
Assets Under Management Mar 31, 2018 Mar 31, 2017 29% AUM ` 182,519 cr AUM ` 141,336 cr 22
Slide 23: Kotak Mahindra AMC & Trustee Co.
Kotak Mahindra AMC & Trustee Co. Average Assets Under Management (` cr) - Overall Average Assets Under Management (` cr) - Equity ` cr Q4FY18 Q4FY17 Q3FY18 FY18 FY17 Highlights Equity AAUM market share for FY18 Profit Before Tax 58 20 57 170 84 at 4.63% Vs 3.67% for FY17 Profit After AAUM market
Slide 24: Kotak Mahindra Prime
Kotak Mahindra Prime Customer Assets* (` cr) & NNPA (%) ` cr Q4FY18 Q4FY17 Q3FY18 FY18 FY17 NII 280 265 286 1,115 1,017 Other Income 74 65 61 256 225 NII and Other Income 354 330 347 1,371 1,242 Profit Before Tax 244 203 226 902 788 Profit After Tax 160 133 148 590 515 CAR (%) 17.7 ROA (%) - annuali
Slide 25: Kotak Mahindra Investments
Kotak Mahindra Investments Customer Assets* (` cr) & NNPA (%) ` cr Q4FY18 Q4FY17 Q3FY18 FY18 FY17 NII 78 77 77 304 270 Other Income 75 23 16 122 81 NII and Other Income 153 99 93 426 351 Profit Before Tax 138 83 77 367 290 Profit After Tax 95 56 50 245 196 CAR (%) 18.9 ROA (%) - annualised 4.5 * Inc
Slide 26: Geographical Presence
Geographical Presence Branches 1,388 [No./%] 2 North 10 418/30% 72 9 52 West East 97 430/31% 85/6% 1 67 56 4 16 1 South 1 455/33% 129 37 9 16 36 Branch Classification 2 17 293 82 6 No of ATMs 107 155 79 2,199 32 26
Slide 27: Group Profile
GROUP PROFILE
Slide 28: 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 29: 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 30: 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 31: 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 32: 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 33: Bank Awards & Recognition
Bank Awards & Recognition 811 & Biometric-Most Innovative Product IBAs Banking Technology Awards 2018 Best Mid-Size Bank Businessworld Magna Awards 2018 Best Mid-Size Bank Business Today Best Banks Awards 2018 Company of the Year 2016 Best Savings Bank Product Excellence in Financial Best Cash Manag
Slide 34: Awards and Recognition
Awards and Recognition Investment Bank of the Asiamoney Best Bank Awards 2018 Business World Award year – M&A Award (India) Excellence in L&D for 2016 VC Circle • Best for Overall Country The Asset Triple A Country Research (Brokers Poll) Awards 2017, India • Best Local Brokerage (Brokers • Best IPO
Slide 35: 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 36: 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 37: 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 38: 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 and Global Markets, Kotak Mahindra Bank On being a professional entrepreneur | In 1996, brokin
Slide 39: 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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