Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q3 FY2011 Earnings Presentation
37 slides from Kotak Mahindra Bank's earnings presentation, December 2010
Slide 1: Group Overview Dec 2010
Group Overview Dec 2010 1
Slide 2: Table of Content
Table of Content Kotak Mahindra Section I Financial Summary Section II Overview of Kotak Group Businesses Section III 2
Slide 3: Kotak Mahindra
a Kotak Mahindra |
Slide 4: Vision Statement
Vision Statement World class financial services brand Most trusted financial services institution Most preferred employer in financial services Value creation not size alone 4
Slide 5: The Journey of 25 years
The Journey of 25 years… Pension Funds Restructured JVs BANK Life Insurance San Francisco Old Mutual JV Stock Broking Singapore Mutual Fund Ford Credit JVs Goldman Sachs JVs IPO Investment New York Banking Auto Dubai Finance London Trade Finance 1986 1990 1991 1992 1995 1996 1998 2001 2003 2006 2007
Slide 6: Journey so far
Journey so far… 1985 2003 Kotak Mahindra KMFL converted to a Finance (KMFL) Bank – 1st Indian established Company to convert into a Bank 2010 25th Year 6
Slide 7: Group Structure
Group Structure Corporate Banking Treasury Retail Branch Banking Retail Lending Wealth Management *100% *100% 100% *100% 100% *100% 100% *74% Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Kotak Mahindra Kotak Mahindra Asset Kotak Mahindra Capital Trustee Old Mutual Life Secu
Slide 8: Geographical Presence
Geographical Presence Wide National Footprint… …with Multiple Points of Presence Branch Business Dec 10 Banking 298 Securities 1,358 Life Insurance 203 Mutual Fund & Others 140 Total 1,999 ~ 8.3 mn customer accounts ~ 20,000 employees 8
Slide 9: Financial Summary
a Financial Summary |
Slide 10: Group Highlights – 9MFY11
Group Highlights – 9MFY11 Consolidated PAT for 9MFY11 up 21% to ` 10,754 mn financing businesses share, a significant portion Consolidated advances up 37% to ` 401 bn NIM at 5.4% Consolidated Capital Adequacy 17.6% Asset managed / advised by the Group at ` 510bn 10
Slide 11: Consolidated – Profit Mix
Consolidated – Profit Mix PBT Mix 6% 8% 13% 14% 2% 16% 11% 2% 4% 17% 2% 20% 26% 29% 58% 59% 75% 65% 57% 53% 37% 39% FY07 -7% FY08 -5% FY09 FY10 9MFY11 9MFY10 Financing Capital Market Insurance Asset Managem ent 11
Slide 12: Consolidated PAT
Consolidated PAT ` mn FY07 FY08 FY09 FY10 9MFY11 9MFY10 Kotak Mahindra Bank 1,414 2,939 2,761 5,611 5,695 3,586 Kotak Mahindra Prime 573 1,006 1,570 1,664 2,310 1,078 Kotak Securities 2,557 4,087 1,065 2,601 1,458 2,093 Kotak Mahindra Capital Company 679 1,153 128 239 219 106 Kotak Mahindra Life Ins
Slide 13: Consolidated PAT - Quarterly
Consolidated PAT - Quarterly ` mn Q3FY11 Q3FY10 Kotak Mahindra Bank 1,879 1,424 Kotak Mahindra Prime 937 494 Kotak Securities 466 592 Kotak Mahindra Capital Company 76 16 Kotak Mahindra Life Insurance 236 193 Kotak Mahindra AMC & Trustee Company 72 229 International subsidiaries 82 226 Kotak Investm
Slide 14: Consolidated - Ratios
Consolidated - Ratios ` mn FY08 FY09 FY10 9MFY11 9MFY10 NIM 5.6% 6.1% 6.3% 5.4%# 6.2%# Book value per share (`) 84.5 94.3 113.6 142.6 108.0 Return on average Net worth 22.3% 10.5% 18.2% 15.6% 16.9% Group CAR 20.2% 22.8% 19.3% 17.6% 18.3% CAR % (standalone) 18.7% 19.9% 18.4% 18.7% 17.0% Tier I (stand
Slide 15: Bank Highlights – 9MFY11
Bank Highlights – 9MFY11 Standalone Bank PAT for 9MFY11 up 59% to ` 5,695 mn NII up 22% to ` 16,235 mn Deposits up 28% at ` 283 bn; CASA at 28% Advances up 35% to ` 289 bn Net NPAs* - 0.57% Provision Coverage Ratio – 72% Bank Capital Adequacy 18.7% ; Tier I 16.5% Stressed assets carrying value ` 2,2
Slide 16: Financial results – Bank Standalone
Financial results – Bank Standalone ` mn FY07 FY08 FY09 FY10 9MFY11 9MFY10 Net Interest Income 6,199 12,258 15,185 18,581 16,235 13,321 Other Income 3,187 4,634 2,736 6,282 4,417 3,767 Net Total Income 9,386 16,892 17,921 24,864 20,652 17,088 Employee Cost 2,697 4,839 5,568 5,558 5,329 3,818 Other O
Slide 17: Segment results – Bank Standalone
Segment results – Bank Standalone ` mn FY07 FY08 FY09 FY10 9MFY11 9MFY10 Treasury & BMU* 236 (58) 1,293 3,675 1,984 2,655 Corporate/Wholesale Banking 1,096 3,365 2,253 3,855 3,742 2,280 Retail Banking (i) Lending 1,124 2,167 3,664 3,775 4,882 2,421 (ii) Branch Banking (423) (1,467) (2,253) (1,890) (
Slide 18: Bank Awards & Recognition
Bank Awards & Recognition Awarded Hewitt Best Employers in India 2009 Best companies to work for - 2009 – by Great places to work Institute India Ranked No. 2 in India - companies with “Best Corporate Governance Practices” - IR Global Rankings 2010 Ranked no. 1 in eight categories including range of
Slide 19: Business Overview
Business Overview 19
Slide 20: Branch Banking
Branch Banking Number of Branches and ATMs Sweep Deposits -8% of total deposits – not part of CASA 350 642 700 Assets advised as on Dec 10 492 300 445 600 ` 177 bn 387 250 313 500 Increased cross sell of asset Branches 200 400 products ATMs 150 300 320 branches by Mar 11 100 200 Around 500 by Dec 12
Slide 21: Financing
Financing Consolidated Advances ` bn 401 297 293 220 225 156 104 71 Mar 05 Mar 06 Mar 07 Mar 08 Mar 09 Mar 10 Dec-10 Dec-09 Share of Retail 75 72 68 72 72 65 61 59 Continuing growth momentum Grew 37% over Dec 2009 21
Slide 22: NPA peaking out
NPA peaking out 2.5% 2.1% 2.0% 1.7% 1.5% 1.5% 1.2% 1.0% 1.1% 1.0% 1.0% 0.7% 0.5% 0.5% 0.5% 0.5% 0.0% Dec-08 Dec-09 Dec-10 Jun-08 Jun-09 Jun-10 Sep-08 Sep-09 Sep-10 Mar-09 Mar-10 Consol Net NPA Excl Stressed Assets 22
Slide 23: Retail Lending
Retail Lending ` bn Sharp drop in PL 162 163 247 174 Focus on Cars, CVs, Mortgages 15% 16% 15% 14% Priority Sector 20% 27% 23% Advances 25% 15% 9% target met 7% 5% 29% 33% 32% 34% 21% 19% 21% 20% Mar-09 Mar-10 Dec-10 Dec-09 CV/CE Car PL Mortgage Agri 23
Slide 24: Wholesale Lending
Wholesale Lending Funded and Non Funded ` bn Funded grew 30% over Dec 2009 Non - funded grew 128% over Dec Funded Non Funded 116 2009 89 Added > 200 Customers in YTD- 72 55 FY11 42 36 31 24 Continued focus on Trade Finance 12 18 Surge in Cash Management Volumes Mar 08 Mar 09 Mar 10 Dec-10 Dec-09 Con
Slide 25: Life Insurance
Life Insurance Adjusted Premium Equivalent (APE) ` bn 26 23 Individual Group Renew al 17 18 15.4 17 10.0 5.9 1.2 11.8 10.1 1.3 1.7 11.8 1.0 0.7 9.5 9.4 5.3 5.8 FY 08 FY 09 FY10 Dec 10 Dec 09 Branches 150 197 214 203 214 Capital ` bn 5.3 5.6 5.6 5.6 5.6 25
Slide 26: Broking
Broking Branches & Franchisee Average Daily Volumes ` bn 1,358 53 46 1,113 40 1,000 39 877 33 783 Mar 08 Mar 09 Mar 10 Dec-10 Dec-09 Mar 08 Mar 09 Mar 10 Dec-10 Dec-09 Over 1.2 mn secondary market customers Best Broker in India 2010 Markets getting more fragmented Market volumes growth shift to F&O
Slide 27: Investment Banking
Investment Banking Client Transaction Size (USD mn) Coal India Limited Initial Public Offering 3,434 Adani Enterprises Limited Qualified Institutional Placement 870 Buyback of equity shares 551 Indian Depository Receipts 518 Initial Public Offering 507 Ispat Industries Exclusive Advisor to ISPAT Ind
Slide 28: Investment Banking awards
Investment Banking Best Investment Bank in India Best Investment Bank in India Best Domestic Equity House 2010 2010 2010 Best Equity House in India 2010 Award for Excellence Best Bank for Equity Finance in Best Domestic Investment Bank India (Real Estate) 2010 2010 28
Slide 29: Asset Management
Asset Management Segment summary Over ` 510 bn of assets managed / advised through mutual funds, insurance, portfolio management, alternate assets & offshore funds Q3FY11 – ` 510 bn Q3FY10 – ` 524 bn PMS 4% PMS 5% Insurance Insurance 11% 15% Dom estic MF Debt Dom estic 45% Offshore MF Debt Offshore
Slide 30: Mutual Fund
Mutual Fund Asset Under Management – ` Bn Equity Debt Over 940,000 folios 256 82 branches 191 228 111 131 51 49 44 53 28 FY08 FY09 FY10 Dec-10 Dec-09 AMCTC PAT ` Mn 79 161 725 137 577 Lipper Fund Award 2010 for Kotak Bond Regular – ‘Best Fund over 10 years Bond Indian Rupee’ Best Debt Fund House of
Slide 31: International Subsidiaries
International Subsidiaries PAT ` mn Business India-centric 803 Investment Management & 645 664 Advisory Debt - Sales & Distribution 361 243 Mar 08 Mar 09 Mar 10 Dec-10 Dec-09 Assets managed/advised: ` 87 bn Including SICAV funds & Shariah compliant funds One Luxembourg-domiciled Indian equity funds
Slide 32: 25 years
25 years ` mn FY87 FY92 FY03 FY10 Dec 2010 Consolidated 10 610 30,340 297,243 400,964 Advances Consolidated PAT 3 220 733 13,070 10,754 Consolidated Net 10 410 10,560 79,109 105,024 Worth Market Capitalisation - 342* 9,356 265,000 305,639 * at issue price ` 100,000 invested at startup (1985) – now w
Slide 33: 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 | Executive Director, Kotak Mahindra Bank ∞ On being a professional entrepreneur | When I joined Kotak, I didn’t really foresee that I would be running
Slide 34: Talent… Professional Entrepreneurs at work
Talent… Professional Entrepreneurs at work Jaimin Bhatt ∞ Joined Kotak in 1995; First charge | Proprietary Investments; Current charge | 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.A.). Around
Slide 35: Talent… Professional Entrepreneurs at work
Talent… Professional Entrepreneurs at work Shanti Ekambaram ∞ Joined Kotak in 1991; First charge | Senior Manager – Bill Discounting; Current charge | Group Head – Corporate & Institutional Banking, Kotak Mahindra Bank ∞ On being a professional entrepreneur | I joined Kotak from a foreign bank. Sinc
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Slide 37: 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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