Axis Bank Limited · NSE:AXISBANK
Axis Bank — FY2011 Earnings Presentation
34 slides from Axis Bank's earnings presentation, April 2011
Slide 1: FY 2010-11 Annual Results Investor Presentation
FY 2010-11 2010 11 Annual Results Investor Presentation
Slide 2: Performance Highlights
Performance Highlights Q4 FY11 12M FY11 Net Profit 33%YOY 35% YOY Net Interest Income 17% YOY 31% YOY Fee Income 58% YOY 30% YOY Operating Revenue 32% YOY 25% YOY Operating Profit 32% YOY 22% YOY Net Interest Margin 3.44% 3.65% Cost of Funds 5.56% 4.96% 1
Slide 3: Shareholder Returns
Shareholder Returns FY06 FY07 FY08 FY09 FY10 FY11 462.77 1 67 1.68 1.67 1 68 21.84 395.99 19.93 19.89 20.13 1.44 18.44 1.18 1.24 16 09 16.09 1.10 284.50 245.14 120.50 103.06 Book Value per share (`) Return on Equity (%) Return on Assets (%) 2
Slide 4: Interpretation of Q4 FY11 Performance
Interpretation of Q4 FY11 Performance • Growth in the Bank’s core businesses – Total Net Advances grew 36% YOY to `1,42,408 crores grew 29% YOY to `71,992 – Total Investments g , crores – Total Assets registered a 34% YOY growth, rising to `2,42,713 crores – Fees grew by 58% YOY, rising to `1,231 cr
Slide 5: Profitability
Profitability Sustained Growth: Robust Core Revenues Q4 FY10 Q4 FY11 FY10 FY11 Amounts in ` crores Amounts in ` crores 11,195 3,151 3,093 10,698 8,950 2,394 8,128 2,291 1,763 5,919 1,281 4,418 1,020 3,388 765 2,515 Net Profit Core Operating Core Net Profit Core Operating Core Operating Revenue Opera
Slide 6: Consistent Net Profit Growth
Consistent Net Profit Growth FY06 FY07 FY08 FY09 FY10 FY11 Amounts in ` crores 1020 891 765 742 735 656 562 582 532 501 403 361 330 307 228 212 175 185 142 132 152 121 109 93 Quarter 1 Q Quarter 2 Q Quarter 3 Q Quarter 4 Q 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 4.09% 5.56% 3.81% 4.61% 4.75% 4.79% 3.71% 3.68% 4.54% 3.44% Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 NIM for the last 5 years FY07 2 74% 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 Q4 FY10 Q4 FY11 FY10 FY11 Amounts in ` crores Amounts in ` crores 6,563 1,701 5,004 , 1,460 ↑ 17% YOY ↑ 31% YOY NII for the last 5 years (` crores) FY07 1,468 FY08 2 585 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 and Term Deposits Deposit Q4 FY11 FY11 Savings 30% 36% Current 13% 28% Total Demand Deposits 23% 33% Total Deposits 40% 36% 77,767 (41%) 66,030 Demand Deposits ↑ 18% YOY (47%) 111,471 Term Deposits ↑ 48% YOY 75 270 75,270 (59%) (53%) 31st Ma
Slide 10: Fees
Fees Q4 FY10 Q4 FY11 FY10 FY11 Amounts in ` crores Amounts in ` crores 3,790 1,231 2 925 2,925 780 ↑58 % YOY* ↑ 30% YOY Fees for the last 5 years (` crores) FY07 890 FY08 1,495 FY09 2 447 2,447 FY10 2,925 FY11 3,790 CAGR 44% Note: Fee income adjusted for change in accounting policy for BG commission
Slide 11: Fee Income Composition
438 Fee Income Composition Q4 FY10 Q4 FY11 Amounts in ` crores 312 260 255 215 143 100 89 107 69 3 19 Large & Mid Treasury Agri & SME Business Banking Capital Markets Retail Business Corporate Credit ↑ 68% YOY ↑ 78% YOY ↑ 45% YOY ↑ 20% YOY ↑ 533% YOY ↑ 45% YOY 1,315 FY10 FY11 Amounts in ` crores 1,0
Slide 12: Trading Profits
Trading Profits Trading Profit Volume % of Operating Revenue Amounts in ` crores 103 4% 58 2% Q4 FY10 Q4 FY11 Q4 FY10 Q4 FY11 ↓ 44% YOY 9% 822 497 9 4% FY10 FY11 FY10 FY11 ↓ 40% YOY 11
Slide 13: Stressed Assets and Net NPA (%)
Stressed Assets and Net NPA (%) Net NPA as at year-end Gross NPAs Net NPAs Net NPA (%) FY07 0.61% 1,700 Amounts in ` crores 0.90% FY08 0.36% 1,599 1,483 FY09 0 35% 0.35% 1,500 0.80% 1,341 1,362 FY10 0.36% 1,318 1,300 0.70% FY11 0.26% 1,100 0.60% • Cash recoveries & upgrades rise 43% YOY to `499 cror
Slide 14: Business Overview
BUSINESS OVERVIEW A
Slide 15: Network
Network Increasing Reach 1,390 921 983 643 792 515 644 405 544 332 441 258 Branches + Extension Counters * Centres Covered 6,270 Branch Demographics (Domestic) 4,293 Branches Extn. Counters 3,595 Metro 370 6 2,764 Urban 448 2 2,341 1 891 1,891 Semi-urban 448 - Rural 116 - Total 1,382 8 ATMs Mar'06 M
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 – Structured Products
Slide 17: Distribution of Ratings
Distribution of Ratings (Large and Mid Corporate) 75% of corporate advances have rating of at least ‘A’ as at Mar’11 10% 9% 8% 8% 7% 18% 19% 22% 24% 25% AAA AA A 47% 46% 44% 41% 43% BBB <BBB or Unrated 22% 23% 23% 25% 23% 3% 3% 3% 2% 2% Mar'10 Jun'10 Sep'10 Dec'10 Mar'11 16
Slide 18: SME and Agri Business
SME and Agri Business 31st Mar'10 31st Mar'11 21,406 Amounts in ` crores 18,269 17,320 12 747 12,747 SME Advances Agricultural Advances ↑ 17% YOY ↑36 % YOY SME Centres 25 26 Agri Clusters 56 69 • Specialised SME Centres for SME • Specialised Clusters for Agricultural lending, appraisals, sanctions a
Slide 19: Distribution of Ratings: SME
Distribution of Ratings: SME 82% of SME advances have rating of at least ‘SME3’ SME3 as at Mar Mar’11 11 2% 2% 2% 2% 5% 13% 15% 17% 17% 18% SME 1 SME 2 62% 60% 60% 59% 59% SME 3 SME 4 SME 5-8 13% 13% 12% 12% 11% 10% 9% 9% 10% 7% Mar-10 Jun-10 Sep'10 Dec'10 Mar-11 18
Slide 20: Industry-wise Distribution
Industry-wise Distribution Across Large Corporate, Mid Corporate, SME & Corporate Agri Outstanding as on 31st Mar’11 (%) Rank Sectors Non-fund Total Fund based Fund-based based 1. Financial Companies* 13.31% 14.28% 11.48% 2. Infrastructure Construction 10.45% 8.16% 14.75% 3. Power Generation & Distr
Slide 21: Business Banking
Business Banking Cash Management Services 31st Mar'10 31st Mar'11 8,465 , • Collection of Central Government taxes on behalf of 6,614 CBDT and CBEC, including through e-payments • Collection of State Government taxes on behalf of 8 State Governments and UT • Collections and payments for Central Gove
Slide 22: Business Banking
Business Banking Current Accounts Growth 31st Mar'10 31st Mar'11 Amounts in ` crores 36,917 Current Account deposits p 32 168 32,168 for the last 5 years (as on 31st March) Mar’07 11,304 Mar’08 20,045 M ’09 Mar’09 24 822 24,822 Mar’10 32,168 Mar’11 36,917 CAGR 34% C Current tAAccountt D Deposits it
Slide 23: Treasury
Treasury 32 27 Q4FY10 128,855 49 Q4FY11 Amounts in ` crores 112,826 11.0 19 7 Forex Turnover Forex Trading SLR & Money Market Trading Derivatives Trading ↑14% YOY ↑ 354% YOY ↓ 61%YOY ↓ 59%YOY 155 FY10 429 504,945 FY11 Derivatives Trading 402,034 108 Amounts in ` crores 111 F Forex Turnover T Forex T
Slide 24: Capital Markets
Capital Markets Q4 FY10 Q4 FY11 FY10 FY11 Amounts in ` crores Amounts in ` crores 24,658 83,025 68,891 13,382 ↓ 46% YOY Placement & Syndications ↑ 21% YOY (Debentures / Bonds) • A dominant player in placement and syndication of debt issues • Ranked No. 1 Debt Arranger by Prime Database for the perio
Slide 25: Savings Bank & Retail Term Deposit Growth
Savings Bank & Retail Term Deposit Growth 31st Mar'10 31st Mar'11 Savings Bank deposits for the last 5 years (as on 31st March) 74,307 Mar’07 12,126 Mar’08 19,982 60 710 60,710 Mar’09 Mar 09 25 822 25,822 Mar’10 33,862 Mar’11 40,850 CAGR 35% 40 850 40,850 Savings Bank deposit growth led by: 33,862 •
Slide 26: Third Party Products Business
Third Party Products Business Q4 FY10 Q4 FY11 FY10 FY11 Amounts in ` crores ou ts in ` c Amounts crores o es 103 • Focus on cross-selling to existing 228 customers to generate fee income • Third-party products sold include 186 mutual funds, insurance, on-line broking, portfolio management services (
Slide 27: Retail Assets
Retail Assets 31st Mar'10 31st Mar'11 Amounts in ` crores 1,514,935 27,759 1,117,734 • Retail Assets constitute 20,821 19.49% of the bank’s total advances, as compared to 19.95% as at 31st Mar’10. • Growth driven through 58 Retail Asset Centres (RACs) Portfolio Size No of Accounts ↑ 33% YOY ↑ 36% YO
Slide 28: Composition of Retail Assets
Composition of Retail Assets Product wise composition of Retail Assets portfolio (31st Mar Product-wise Mar’11) 11) Cards Non-Schematic 2% 5% Personal Loans 14% Auto loans Housing Loans 11% 68% 27
Slide 29: Cards, Retail Forex & Remittances Business
Cards, Retail Forex & Remittances Business Q4 FY10 Q4 FY11 FY10 FY11 Amounts in ` crores Amounts in ` crores 85 286 64 217 ↑ 33% YOY O ↑3 32% % YOY O Fee Income • Issuance – Over 6 lac Credit Cards in force till 31st Mar‘11 – Travel Currency Cards in 11 currencies -US$, Euro, GBP, AUD, CAD, SGD, SEK
Slide 30: ATM Channel
ATM Channel Mar'10 Mar'11 8,538 373 100 6,834 , 86 314 Intl. debit card base (lakhs) Monthly cash withdrawals No. of Monthly Transactions ` crores (lac) ↑ 16% YOY ↑25 % YOY ↑19 %YOY • Pioneer in ATM sharing arrangements • Value added services such as bill payments, mutual fund investments, mobile to
Slide 31: International Presence
International Presence • Branches at Singapore, Hong Kong and DIFC, Dubai • Representative offices at Shanghai, Dubai and Abu Dhabi • Ltd. incorporated as a subsidiary on 7th March 2011 Axis UK Ltd • Total assets overseas amounted to US$ 4.99 billion as compared to USD 33.10 10 billi billion as att
Slide 32: Shareholding
Shareholding Shareholding pattern (Mar’11) SUUTI • Share Capital - `410.55 crores 23.68% • Shareholders’ Funds - `18,999 crores Others 29.08% • Book Value per share - ` 462.77 LIC 2011 `1,448 • Market Price as on 21st April, 2011- 9.56% FIIs • Market Cap as on 21st April, 2011 - `59,429 crores 37.68
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 A