Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q2 FY2013 Earnings Presentation
41 slides from Kotak Mahindra Bank's earnings presentation, Oct 25, 2012
Slide 1: Investor Presentation Q2FY13
Investor Presentation Q2FY13 1 Oct 25,2012
Slide 2: i @) 1990
i @) 1990
Slide 3: Group Structure
Group Structure Kotak Mahindra Bank •Consumer Banking •Commercial Banking •Treasury •Distressed Assets Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Securities Trustee Old Mutual Life Capital Company Investments Prime AMC Pension Fund
Slide 4: Geographical Presence
Geographical Presence Wide National Footprint ….. ….. With Multiple Points of Presence Business Sep 30, 2012 Banking 389 Car Finance 68 Life Insurance 199 Securities 1,346 Mutual Fund 79 Total 2,081 International offices situated in London, New York, California, Dubai, Abu Dhabi, Bahrain, Mauritius
Slide 5: Kotak Bank - Standalone Highlights
Kotak Bank - Standalone Highlights PAT Networth Loans Restructured Loans- standard ` 280 cr ` 8,597 cr ` 45,443 cr ` 8 cr (` 260 cr) (` 37,349 cr) (` 31 cr) (` 7,361 cr) up 22% yoy Net CAR# CASA SA NPA * 16.4% (17.8%) ` 12,321 cr ` 5,926 cr (` 3,564 cr) Tier 1 (` 9,356 cr) Up 66% yoy 0.73% (0.43%) 1
Slide 6: Consolidated Highlights
Consolidated Highlights PAT Networth Loans Net ` 502 cr ` 13,943 cr ` 61,255 cr (` 50,851 cr) NPA * (` 433 cr) (` 11,893 cr) up 21% yoy 0.61% (0.36%) RoA Total Assets Book Value NIM ` 102,258 cr ` 187.6 per share 2.0% (2.1%) (` 83,796 cr) 4.7% (4.8%) (` 161.0 per share) up 22% yoy Consolidated Asset
Slide 7: Consolidated Advances & Investments
Consolidated Advances & Investments ` cr FY03 FY10 FY11 FY12 Q1FY13 Q2FY12 Q2FY13 Commercial vehicles & Construction 713 4,414 6,251 7,798 8,015 7,351 8,183 equipment Agriculture Finance - 3,089 4,220 5,714 6,108 4,248 6,419 Auto loans 1,772 6,542 8,550 10,600 11,161 9,858 11,748 Mortgage Loans - 4,
Slide 8: Consolidated PAT
Consolidated PAT ` cr FY03 FY07 FY08 FY09 FY10 FY11 FY12 Kotak Mahindra Bank 45 141 294 276 561 818 1,085 Kotak Mahindra Prime 11 57 101 157 166 318 385 Kotak Securities 24 256 409 107 260 182 126 Kotak Mahindra Capital Company 31 68 115 13 24 52 6 Kotak Mahindra Old Mutual Life (42) (58) (72) 14 69
Slide 9: Consolidated PAT – cont’d
Consolidated PAT – cont’d ` cr Q1FY13 Q2FY12 Q2FY13 H1FY12 H1FY13 Kotak Mahindra Bank 282 260 280 512 562 Kotak Mahindra Prime 94 90 114 184 208 Kotak Securities 23 29 40 52 63 Kotak Mahindra Capital Company 6 (4) 4 (3) 10 Kotak Mahindra Old Mutual Life Insurance 32 53 47 99 79 Kotak Mahindra AMC &
Slide 10: Consolidated PAT – Quarterly Trend
Consolidated PAT – Quarterly Trend 600 502 500 433 400 364 (`cr ) 300 300 200 161 100 - 2009 2010 2011 2012 2013 Q1 Q2 Q3 Q4 ` cr 2009 2010 2011 2012 2013 Q1 150 257 328 416 443 Q2 160 300 364 433 502 Q3 131 331 384 462 Q4 211 419 491 521 10
Slide 11: Consolidated Profit (PBT) Mix
Consolidated Profit (PBT) Mix PBT 151 773 1,424 1,033 1,883 2,274 2,673 `cr 6% 3% 13% 14% 4% 7% 11% 10% 2% 4% 8% 2% 15% 18% 23% 58% 53% 59% 82% 75% 67% 59% 68% 43% 37% FY03 FY07 -7% FY08 -6% FY09 FY10 FY11 FY12 -28% Financing Capital Market Insurance Asset Management PAT 73 538 991 652 1,307 1,567 1
Slide 12: Consolidated Profit (PBT) Mix - Quarterly
Consolidated Profit (PBT) Mix - Quarterly PBT 648 631 732 1,250 1,381 `cr 2% 3% 2% 3% 2% 5% 8% 7% 6% 8% 6% 8% 6% 9% 6% 86% 83% 82% 83% 84% Q1FY13 Q2FY12 Q2FY13 H1FY12 H1FY13 Financing Capital Market Insurance Asset Management PAT 443 433 502 849 945 `cr 12
Slide 13: Consolidated Key Financials
Consolidated Key Financials Total Assets (` cr) Networth (` cr) 102,258 13,943 92,349 96,842 12,901 13,430 11,893 83,796 10,963 73,681 7,911 55,115 1,056 4,681 FY03 FY10 FY11 FY12 Q1FY13 Q2FY12 Q2FY13 FY03 FY10 FY11 FY12 Q1FY13 Q2FY12 Q2FY13 Book Value per share (`) Market Cap (` cr) 180.9 187.6 48,
Slide 14: Consolidated Key Ratios
Consolidated Key Ratios RoA (%) RoE (%) 2.7 18.2 2.4 16.4 15.4 14.9 2.1 2.2 2.1 14.6 2.0 13.5 1.9 7.2 FY03 FY10 FY11 FY12 Q1FY13Q2FY12Q2FY13 FY03 FY10 FY11 FY12 Q1FY13Q2FY12Q2FY13 NIM (%) NPA * (%) 5.8 * Excluding acquired 2.2 stressed assets portfolio 5.0 5.2 4.8 4.7 4.8 4.7 1.1 1.1 1.2 1.1 1.1 0.9
Slide 15: Integrated Financial Services
Integrated Financial Services Banking Asset Life Insurance Management Capital Markets 15
Slide 16: Financing Business
Financing Business Advances (` cr) Net Interest Income (` cr) # 57,049 3,218 53,144 61,255 50,581 41,242 2,680 15,893 2,233 29,724 21,329 897 778 958 24,033 3,034 205 FY03 FY10 FY11 FY12 Q1FY13 Q2FY13 Q2FY13 FY03 FY10 FY11 FY12 Q1FY13 Q2FY12 Q2FY13 Consumer Commercial Corporate Net NPA (%)* PAT (` c
Slide 17: Bank Key Ratios
Bank Key Ratios CAR & Tier I (%) NPA * (%) * Excluding acquired stressed assets portfolio 26.0% 2.4% 18.4% 19.9% 25.7% 17.5% 17.1% 17.8% 16.4% 1.3% 1.4% 1.3% 1.2% 1.2% 18.0% 1.0% 15.4% 15.7% 15.5% 15.9% 14.9% 0.8% 0.8% 0.7% 0.5% 0.6% 0.4% 0.1% FY03 FY10 FY11 FY12 Q1FY13^ Q2FY12 Q2FY13^ FY03 FY10 FY1
Slide 18: Bank Profit and Loss
Bank Profit and Loss ` cr FY03 FY07 FY08 FY09 FY10 FY11 FY12 Net Interest Income 87 605 1,147 1,452 1,780 2,097 2,512 Other Income 81 377 601 424 707 781 978 Net Total Income 168 982 1,748 1,876 2,486 2,878 3,490 Employee Cost 22 260 468 557 556 751 872 Other Operating Expenses 56 352 552 639 634 80
Slide 19: Bank Profit and Loss - Quarterly
Bank Profit and Loss - Quarterly ` cr Q1FY13 Q2FY12 Q2FY13 H1FY12 H1FY13 Net Interest Income 721 605 758 1,173 1,479 Other Income 241 213 251 441 492 Net Total Income 962 818 1,009 1,614 1,971 Employee Cost 257 215 243 421 500 Other Operating Expenses 257 223 284 427 541 Operating Expenditure 514 43
Slide 20: Bank Segment performance
Bank Segment performance ` cr FY03 FY07 FY08 FY09 FY10 FY11 FY12 Corporate/Wholesale Banking $ - 214 334 225 386 544 997 Retail Banking $ 58 (42) 62 71 61 339 566 Treasury & BMU* 14 31 (3) 130 367 305 35 Unallocated Income (2) - 5 - (3) - 2 Total 70 203 398 426 811 1,188 1,600 Bank Segment performan
Slide 21: Bank Advances & Investments
Bank Advances & Investments ` cr FY03 FY10 FY11 FY12 Q1FY13 Q2FY12 Q2FY13 Commercial vehicles & CE 713 4,414 6,251 7,798 8,015 7,351 8,183 Agriculture Finance - 3,089 4.220 5,714 6,108 4,248 6,419 Mortgage loans - 4,712 6,877 8,333 8,757 7,528 9,286 Personal loans 188 1,315 1,305 1,868 1,990 1,500 2
Slide 22: Bank Balance Sheet
Bank Balance Sheet ` cr FY03 FY10 FY11 FY12 Q1FY13 Q2FY12 Q2FY13 Net Worth 542 4,485 6,796 7,946 8,288 7,361 8,597 Deposits 257 23,886 29,261 38,537 41,632 36,390 45,463 CA 50 4,992 5,460 7,352 5,514 5,792 6,395 SA - 2,471 3,331 5,050 5,540 3,564 5,926 TD Sweep - 1,798 1,897 2,710 3,254 2,289 3,332
Slide 23: Consumer Banking - Liabilities
Consumer Banking - Liabilities No of Branches / ATM’s 500 Branches in CY13 450 848 858 866 1,000 400 710 900 755 Increased cross sell of 350 800 asset products 700 300 492 600 250 Positive impact of 500 savings account interest 200 389 355 366 400 deregulation 150 321 323 249 300 o savings bal
Slide 24: Consumer Banking - Assets
Consumer Banking - Assets Advances break up Focus on SENP and cross 3% 3% 4% 3% 2% 3% sell to bank branch 10% 8% 9% 8% 9% 10% 8% Continued focus on Auto 39% 39% 39% 39% 39% Sector 37% Mortgages growth in select 90% territories 50% 50% 49% 49% 51% 49% Selective growth in personal loans Cont
Slide 25: Commercial Financing
Commercial Financing Advances break up Focus on Bharat 14% 11% 15% (semi urban / rural areas) 18% 19% 17% 22% 16% 13% 11% 10% 11% 10% Asset focused branches in rural areas 30% 29% 26% 30% 31% 30% Priority sector target met 86% consistently 43% 43% 46% Consistent growth in Agri 41% 40% 38% FY
Slide 26: Wholesale Banking
Wholesale Banking Funded & Non funded (` cr) Largely Working Capital 15,893 14,550 14,951 Continued focus on Transaction Banking 12,508 o Vendor Financing, CMS and Operative Accounts 9,560 9,121 8,990 o Focus on FX flows with 8,207 8,229 increased treasury 6,293 6,490 coverage o Custody & Transa
Slide 27: Kotak Mahindra Prime
Kotak Mahindra Prime ` cr FY12 Q1FY13 Q2FY12 Q2FY13 Total income 1,805 510 430 551 Profit before tax 570 139 134 170 Profit after tax 385 94 90 114 ` cr FY03 FY10 FY11 FY12 Q1FY13 Q2FY12 Q2FY13 Total Advances 1,756 8,311 11,145 13,386 14,114 12,547 15,173 Car Advances 1,756 6,467 8,489 10,577 11,154
Slide 28: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance AUM (` cr) Sum Assured (` ‘000 cr) 9,783 192 9,293 9,240 174 8,592 8,163 164 142 6,710 130 92 115 2 FY03 FY10 FY11 FY12 Q1FY13 Q2FY12 Q2FY13 FY03 FY10 FY11 FY12 Q1FY13 Q2FY12 Q2FY13 ` cr FY03 FY10 FY11 FY12 Q1FY13 Q2FY12 Q2FY13 Capital 183 562 562 562 562 562 562 Solven
Slide 29: Kotak Securities
Kotak Securities Market ADV (` ‘000 cr) ADV (` cr) - KS 0.4 4,648 1 35 4,261 3,925 4,034 77 96 95 101 94 3,300 3,343 38 4 39 31 27 31 26 23 200 19 14 12 14 13 FY03 FY10 FY11 FY12 Q1FY13Q2FY12Q2FY13 FY03 FY10 FY11 FY12 Q1FY13 Q2FY12 Q2FY13 Cash Future Option ` cr FY12 Q1FY13 Q2FY12 Q2FY13 Total incom
Slide 30: Kotak Mahindra Capital Co.
Kotak Mahindra Capital Co. Size Client Deals - Q2FY13 (` cr) Qualified Institutional Placement (QIP) + Preferential Allotment 350 Gujarat Pipavav Port Limited Institutional Placement Programme (IPP) 371 Acquisition of Hutchison Global Services by Tech Mahindra ~487 Open Offer for Sunshield Chemicals
Slide 31: Asset Under Management
Asset Under Management AUM ` 50,467 cr AUM ` 55,850 cr PMS Insurance PMS Insurance 3% 17% 2% 16% Offshore Domestic Offshore Domestic Funds MF Debt Funds MF Debt 18% 48% 15% 49% Alternate Alternate Domestic Asset Domestic Asset MF Equity 9% MF Equity 11% 6% 6% Sep 30, 2011 Sep 30, 2012 31
Slide 32: Kotak Mahindra AMC and Trustee Co.
Kotak Mahindra AMC and Trustee Co. Average Assets Under Management ` cr Over 9 lac folios 34,880 32,444 79 Branches 30,472 30,766 30,866 25,842 4 Kotak Equity Funds in quartile 1 of top performing equity funds FY10 FY11 FY12 Q1FY13 Q2FY12 Q2FY13 ` cr FY12 Q1FY13 Q2FY12 Q2FY13 Total income 125
Slide 33: Kotak Investment Advisors
Kotak Investment Advisors Realty Fund Private Equity Fund Corpus advised / managed – Corpus advised / managed – ` 2,772 cr ` 2,025 cr 49 Investments 35 Investments Propose to launch Infrastructure fund with SMBC and Brookfield ` cr FY12 Q1FY13 Q2FY12 Q2FY13 Total income 97 22 24 22 Profit be
Slide 34: Bank Awards & Recognition
Bank Awards & Recognition Best Private Bank by Finance Asia Country Awards 2012 Best Local Cash Management Bank In India, as voted by corporates for Small companies (turnover < US$ 100 Mn) by Asiamoney in 2012 Kotak Mahindra Bank has made it once again in the list of the prestigious Forbes Asia’s Fa
Slide 35: Awards & Recognition
Awards & Recognition Best Investment Manager in India 2012:Best Investment Bank in India (Seventh year in a row) 2011: Best Domestic Equity House (Fourth year in a row) Best Broker in India 2012 2012: Best Equity House (Third year in a row) ACQ Global Awards 2012 2011: Best Domestic Investment Bank
Slide 36: Kotak Uniqueness
Kotak Uniqueness The 4th Largest Banking & Financial Services Conglomerate* ∞ Mature businesses across most financial services products Integrated Financial ∞ Leading positions across Retail Banking, Private Banking, Insurance, Investment Banking, Services Business Institutional Brokerage and Asset
Slide 37: The Path of Leadership
The Path of Leadership Strong Capital ∞ Capital adequacy amongst the highest in the Indian banking sector Position ∞ Provides the basis for growth ∞ Robust bank platform and retail distribution network ∞ Pan-India reach of over 2,000 retail distribution points across Banking, Broking, Mutual Fund Ag
Slide 38: 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 39: 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 40: 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 and Capital Markets, Kotak Mahindra Bank On being a professional entrepreneur | In 1996, br
Slide 41: 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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