Kotak Mahindra Bank Limited · NSE:KOTAKBANK

Kotak Mahindra Bank — Q2 FY2015 Earnings Presentation

44 slides from Kotak Mahindra Bank's earnings presentation, Oct 22, 2014

  1. Slide 1: Investor Presentation Q2FY15

    Investor Presentation Q2FY15 1 Oct 22, 2014

  2. Slide 2: Journey So Far

    Journey So Far…….. Anchor Investment in ACE ARC Alternate Assets BANK KS Life Insurance Mutual 641 Branches & Fund Celebrating 29th Year of Investment Banking success IPO Auto Finance Bill Discounting 1985 1990 1992 1995 1998 2000 2001 2003 2004 2008 2010 2012 2014 2

  3. Slide 3: Group Structure

    Group Structure Kotak Mahindra Bank • Commercial Bank & Holding Company Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Capital Kotak Securities Trustee Old Mutual Life Investments Prime AMC Pension Fund Company Company Insurance * • Investmen

  4. Slide 4: Geographical Presence

    Geographical Presence Wide National Footprint ….. ….. With Multiple Points of Presence Business Sep 30, 2014 Banking 641 Car Finance 74 Life Insurance 210 Securities 1,164 Mutual Fund 79 Total 2,168 International offices situated in Abu Dhabi, Dubai, London, Mauritius, New York and Singapore 4

  5. Slide 5: Consolidated Highlights – Q2FY15

    Consolidated Highlights – Q2FY15 Book PAT Networth RoA Value (per share) ` 718 cr ` 20,554 cr 2.2% (2.0%) ` 266.5 (` 583 cr) (` 17,868 cr) (` 232.6) Up 23% Total NIM Loans Assets Net ` 134,401 cr 5.0% (4.9%) ` 81,418 cr (` 68,226 cr) (` 114,631 cr) NPA Up 19%* 0.84% (0.80%) * Advances growth excludi

  6. Slide 6: Consolidated Key Financials

    Consolidated Key Financials Based on prices at NSE on the last working day of the financial year 6

  7. Slide 7: Consolidated Key Financials

    Consolidated Key Financials

  8. Slide 8: Consolidated PAT

    Consolidated PAT ` cr FY03 FY08 FY11 FY12 FY13 FY14 Kotak Mahindra Bank 45 294 818 1,085 1,361 1,503 Kotak Mahindra Prime 11 101 318 385 431 491 Kotak Mahindra Investments 15 43 24 15 33 42 Kotak Securities 24 409 182 126 114 * 160 Kotak Mahindra Capital Company 31 115 52 6 17 14 Kotak Mahindra Old

  9. Slide 9: Consolidated PAT – cont’d

    Consolidated PAT – cont’d ` cr Q1FY15 Q2FY14 Q2FY15 H1FY14 H1FY15 Kotak Mahindra Bank 430 353 445 756 875 Kotak Mahindra Prime 120 125 125 242 245 Kotak Mahindra Investments 17 11 25 15 42 Kotak Securities 68 40 66 71 134 Kotak Mahindra Capital Company (4) (2) (7) 2 (11) Kotak Mahindra Old Mutual Li

  10. Slide 10: Consolidated Profit (PBT) Mix

    Consolidated Profit (PBT) Mix 10

  11. Slide 11: Consolidated Profit and Loss

    Consolidated Profit and Loss ` cr FY03 FY08 FY11 FY12 FY13 FY14 Net Interest Income 246 1725 3,305 3,928 4,813 5,674 Other Income 279 4198 5,090 4,544 5,113 5,259 Net Total Income 525 5,923 8,395 8,472 9,926 10,933 Employee Cost 104 1,198 1,522 1,602 1,774 1,915 Other Operating Expenses 255 2,893 4,

  12. Slide 12: Consolidated Profit and Loss – cont’d

    Consolidated Profit and Loss – cont’d ` cr Q1FY15 Q2FY14 Q2FY15 H1FY14 H1FY15 Net Interest Income 1,510 1,416 1,584 2,790 3,094 Other Income 1,871 713 1,652 2,070 3,523 Net Total Income 3,381 2,130 3,236 4,860 6,617 Employee Cost 564 439 576 933 1,140 Other Operating Expenses 1,759 721 1,524 1,853 3

  13. Slide 13: Consolidated Balance Sheet

    Consolidated Balance Sheet Liabilities ` cr Mar-03 Mar-08 Mar-13 Mar-14 Jun-14 Sep-13 Sep-14 Capital 59 345 373 385 385 384 386 Reserves and Surplus 996 5,479 14,877 18,691 19,400 17,484 20,169 Policyholders’ Funds 27 2,842 10,077 11,015 11,754 10,038 12,166 Deposits 203 13,692 49,389 56,930 59,693

  14. Slide 14: Consolidated Advances and Investments

    Consolidated Advances and Investments ` cr Mar 31, 2014 Sep 30, 2013 Sep 30, 2014 YoY Growth Corporate Banking 17,319 17,245 24,845 44% CV/CE 5,441 6,781 5,062 (25%) Agriculture Division 10,468 7,910 10,137 28% Business Banking 5,388 5,308 5,655 7% Auto loans 13,223 13,094 13,893 6% Home Loans and L

  15. Slide 15: Entity wise Networth

    Entity wise Networth ` cr Mar 31, 2014 Sep 30, 2013 Sep 30, 2014 Kotak Mahindra Bank 12,275 11,553 13,199 Kotak Mahindra Prime 2,843 2,593 3,087 Kotak Mahindra Investments 436 360 553 Kotak Securities 2,094 2,005 2,228 Kotak Mahindra Capital Company 403 391 391 Kotak Mahindra Old Mutual Life Insuran

  16. Slide 16: Kotak Bank - Standalone Highlights – Q2FY15

    Kotak Bank - Standalone Highlights – Q2FY15 PAT RoA Loans NIM ` 445 cr ` 60,948 cr 5.0% 2.0% (1.7%) (` 353 cr) (` 50,609 cr) (4.9%) Up 26% Up 20%* Net CAR# CASA Branches 17.6% (19.4%) ` 21,165 cr 641 NPA (` 15,393 cr) (502) 1.0% (0.96%) Tier 1 16.6% (18.1%) Acquired 15% stake in Multi Commodity Exch

  17. Slide 17: Bank Profit & Loss

    Bank Profit & Loss ` cr FY14 Q1FY15 Q2FY14 Q2FY15 Net Interest Income 3,720 1,002 924 1,039 Other Income 1,400 400 297 466 Net Total Income 5,120 1,402 1,221 1,505 Employee Cost 1,159 348 265 355 Other Operating Expenses 1,384 388 350 416 Operating Expenditure 2,543 736 615 771 Operating Profit 2,57

  18. Slide 18: Bank Other Income

    Bank Other Income ` cr FY14 Q1FY15 Q2FY14 Q2FY15 Fee and Services 942 315 212 321 Treasury Income * 299 54 70 85 ARD Buyout Income 141 29 13 48 Others 18 2 2 12 Total 1,400 400 297 466 * Does not include provisions 18

  19. Slide 19: Bank Segmental Performance

    Bank Segmental Performance As per RBI (` cr) FY14 Q1FY15 Q2FY14 Q2FY15 Corporate/Wholesale Banking 1,301 291 307 335 Retail Banking 793 216 180 210 Treasury & BMU * 176 140 47 135 Unallocated Income 3 5 - - Total 2,273 652 534 680 * Balance Sheet Management Unit 19

  20. Slide 20: Bank Advances & Investments

    Bank Advances & Investments ` cr Mar 31, 2014 Sep 30, 2013 Sep 30, 2014 YoY Growth Corporate Banking 14,377 14,759 21,140 43% CV/CE 5,441 6,781 5,062 (25%) Agriculture Division 10,468 7,910 10,137 28% Business Banking 5,388 5,308 5,655 7% Home Loans and LAP 12,100 11,307 12,894 14% Small Business, P

  21. Slide 21: Bank Balance Sheet

    Bank Balance Sheet ` cr Mar 31, 2014 Sep 30, 2013 Sep 30, 2014 YoY Growth Net Worth 12,275 11,553 13,199 14% Deposits 59,072 52,642 68,103 29% CA 8,741 7,008 9,472 35% SA 10,087 8,385 11,693 39% Certificate of Deposit 5,726 4,536 4,653 3% Term Deposit Others 34,518 32,713 42,285 29% Borrowings 12,89

  22. Slide 22: Bank Key Ratios

    Bank Key Ratios Asset Quality Restructured loans considered standard ` 161.5 cr (0.26%) No CDR participation No transfer to ARC No conversion to off-Balance sheet 22

  23. Slide 23: Consumer Banking Liabilities

    Consumer Banking Liabilities  Plan to reach 1,000 No of Branches / ATM’s branches by calendar 2016  TD sweep to total deposit ratio at 8.1% (7.2% as on Sep-13)  CASA and TDs below ` 5 cr constitute 65% of total deposits (63% as on Sep-13)  TDs below ` 1 cr grew 31% yoy  Added ~ 2.1 lac customer

  24. Slide 24: Consumer Banking Asset - Bank

    Consumer Banking Asset - Bank Mar 31, Sep 30, Sep 30, YoY 2014 2013 2014 Growth Home Loans and LAP 12,100 11,307 12,894 14% Small Business, Personal loans & 4,632 4,099 5,301 29% Credit Cards Home Loans Others 162 149 113 (24%) and LAP Total Consumer 16,894 15,555 18,308 18% 72% Banking  Focus on S

  25. Slide 25: Commercial Banking Asset - Bank

    Commercial Banking Asset - Bank Mar 31, Sep 30, Sep 30, YoY 2014 2013 2014 Growth CV/CE 5,441 6,781 5,062 (25%) CV/CE Agri Division 10,468 7,910 10,137 28% 24% Business Banking 5,388 5,308 5,655 7% Others 270 125 379 - Total Commercial 21,567 20,124 21,233 6% Banking  Continued focus and growth in

  26. Slide 26: Wholesale Banking - Bank

    Wholesale Banking - Bank  Complete range of financial products in offer for diverse corporates Funded & Non funded (` cr)  Large and midmarket, PSUs, MNCs, financial market players  Focus on franchise establishment with large corporates and deepening mid market segment  Built-out corporate franc

  27. Slide 27: Kotak Mahindra Prime

    Kotak Mahindra Prime ` cr FY14 Q1FY15 Q2FY14 Q2FY15 NII 880 216 220 227 Other income 181 51 45 51 Total Income 1,061 267 265 278 Profit before tax 752 183 191 190 Profit after tax 491 120 125 125 ` cr Mar 31, 2014 Sep 30, 2013 Sep 30, 2014 Customer Assets 17,948 17,697 18,819 Car Advances 13,273 13,

  28. Slide 28: Kotak Mahindra Investments

    Kotak Mahindra Investments ` cr FY14 Q1FY15 Q2FY14 Q2FY15 NII 78 30 20 39 Other income 10 6 1 8 Total Income 88 36 21 47 Profit before tax 64 26 18 38 Profit after tax 42 17 11 25 ` cr Mar 31, 2014 Sep 30, 2013 Sep 30, 2014 Customer Assets 1,555 741 2,359 Net NPA 7 15 6 Net NPA (%) 0.5 2.0 0.2 CAR (

  29. Slide 29: Kotak Mahindra Life Insurance

    Kotak Mahindra Life Insurance Premium (` cr)  Individual Business grew by 7%  Agency’s Regular Business grew by 21%  On APE (Single @ 1/10th) Basis, Share of Kotak Bank for FY14 is at 28% ( PY – 25%)  Inforce Sum Assured has increased 24% from ` 2,361 bn to ` 2,926 bn ` cr FY14 Q1FY15 Q2FY14 Q2F

  30. Slide 30: Kotak Securities

    Kotak Securities Market ADV (` ‘000 cr) ADV (` cr) - KS ` cr FY14 Q1FY15 Q2FY14 Q2FY15 Total income 627 223 152 224 Profit before tax 234 103 60 100 Profit after tax 160 68 40 66 Market Share* (%) 2.3 2.9 2.4 2.7 *excluding BSE Derivative segment Kotak Securities services more than 9.9 lac secondary

  31. Slide 31: Kotak Mahindra Capital Co.

    Kotak Mahindra Capital Co. ` cr FY14 Q1FY15 Q2FY14 Q2FY15 Total income 84 12 12 11 Profit before tax 18 (6) (3) (7) Profit after tax 14 (4) (2) (7) 31

  32. Slide 32: Asset Under Management

    Asset Under Management AUM ` 60,450 cr AUM ` 65,657 cr Sep 30, 2013 Sep 30, 2014 32

  33. Slide 33: Kotak Mahindra AMC and Trustee Co.

    Kotak Mahindra AMC and Trustee Co. Average Assets Under Management ` cr  Agreed to acquire schemes of PineBridge Mutual Fund – AUM ` 660 cr ` cr # FY14 Q1FY15 Q2FY14 Q2FY15 Total income 177 29 51 36 Profit before tax 60 - 26 - Profit after tax 41 - 17 (1) Average AUM (` bn) 357 359 353 378 Average

  34. Slide 34: Kotak Investment Advisors

    Kotak Investment Advisors RE PE Infra Corpus ` 3,949 cr Corpus ` 1,686 cr Corpus ` 550 cr 56 Investments 41 Investments Total Corpus ` 6,185 cr ` cr FY14 Q1FY15 Q2FY14 Q2FY15 Total income 83 22 20 19 Profit before tax 25 9 7 6 Profit after tax 18 8 4 4 34

  35. Slide 35: Bank Awards and Recognition

    Bank Awards and Recognition Received in FY15 Kotak Wealth Management won the Best Private Bank – India by FinanceAsia Country Awards 2014 Kotak Jifi won the following awards at the Indian Digital Media Awards 2014: • Gold Award for Best Innovation – World’s first socially powered bank account • Gold

  36. Slide 36: Bank Awards and Recognition

    Bank Awards and Recognition Received in FY14 Best Medium Sized Bank of the Year Award by Businessworld Best Bank - Emerging Banks at Outlook Money Awards 2013 IR Global Ranking – one of the top 5 Best Ranked Companies for Corporate Governance Practices Kotak Junior ad, adjudged the Best Banking Ad W

  37. Slide 37: Awards and Recognition

    Awards and Recognition Investment Banking Corporate GLOBAL AWARDS 2014 Securities Advisory Firm of the Year in India Qreotax ENRNMnNny Best Investment Manager in India Asiamoney Brokers Poll 2013 Best Local Brokerage Eighth year ina row Among all domestic and foreign brokerages, ranked: #1 for Most

  38. Slide 38: Kotak Uniqueness

    Kotak Uniqueness The 5th Largest Bank by Market Capitalisation Integrated Financial ∞ Mature businesses across most financial services products Services Business ∞ Leading positions across Retail Banking, Private Banking, Insurance, Investment Banking, Model Institutional Brokerage and Asset Managem

  39. Slide 39: 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 2,100 retail distribution points across Banking, Broking, Mutual Fund Ag

  40. Slide 40: 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 Kot

  41. Slide 41: 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 at

  42. Slide 42: Talent…Professional Entrepreneurs at work

    Talent…Professional Entrepreneurs at work K.V.S. Manian  Joined Kotak in 1995; First charge | Compliance, Kotak Mahindra Capital Company;  Current charge | President –Wholesale Banking, Kotak Mahindra Bank  On being a professional entrepreneur | After two years in Investment Banking, I moved into

  43. Slide 43: 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

  44. Slide 44: 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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