Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — FY2013 Earnings Presentation
42 slides from Kotak Mahindra Bank's earnings presentation, May 2, 2013
Slide 1: Investor Presentation FY13
Investor Presentation FY13 1 May 02, 2013
Slide 2: Journey So Far
Journey So Far…….. Anchor Investment in ACE ARC Alternate Assets BANK KS Life Insurance Mutual 437th Branch & Fund Celebrating 27th Year of Investment Banking success IPO Auto Finance Bill Discounting 1985 1990 1992 1995 1998 2000 2001 2003 2004 2008 2010 2012 2013 2
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
Slide 4: Geographical Presence
Geographical Presence Wide National Footprint ….. ….. With Multiple Points of Presence Business Mar 31, 2013 Banking 437 Car Finance 70 Life Insurance 199 Securities 1,330 Mutual Fund 79 Total 2,115 International offices situated in Abu Dhabi, Dubai, London, Mauritius New York and Singapore 4
Slide 5: Kotak Bank - Standalone Highlights – FY13
Kotak Bank - Standalone Highlights – FY13 PAT Networth Loans Restructured Loans- standard ` 1,361 cr ` 9,447 cr ` 48,469 cr ` 10.7 cr (` 1,085 cr) (` 7,946 cr) (` 39,079 cr) (` 20.0 cr) up 25% yoy up 24% yoy Net CAR RoA CASA NPA * 16.0% (17.5%) 1.8% (1.8%) ` 14,918 cr Tier 1 (` 12,402 cr) 0.63% (0.5
Slide 6: Consolidated Highlights – FY13
Consolidated Highlights – FY13 PAT Networth Loans Net ` 2,188 cr (` 1,832 cr) ` 15,250 cr ` 66,258 cr (` 53,144 cr) NPA * (` 12,901 cr) up 19% yoy up 25% yoy 0.53% (0.49%) RoA Total Assets Book Value NIM ` 115,835 cr ` 204.3 per share 2.1 (2.2%) (` 92,349 cr) up 4.7% (4.8%) (` 174.2 per share) 25% y
Slide 7: Consolidated Advances & Investments
Consolidated Advances & Investments ` cr FY03 FY09 FY10 FY11 FY12 FY13 Dec -12 Corporate Banking 213 3,526 6,161 9,393 12,321 14,535 18,291 Commercial vehicles & Construction 831 4,100 4,414 6,251 7,798 7,805 8,071 equipment Agriculture Division - 2,365 3,089 4,220 5,714 8,356 7,310 Business Banking
Slide 8: Consolidated PAT
Consolidated PAT ` cr FY03 FY09 FY10 FY11 FY12 FY13 Kotak Mahindra Bank 45 276 561 818 1,085 1,361 Kotak Mahindra Prime 11 157 166 318 385 431 Kotak Securities 24 107 260 182 126 114 * Kotak Mahindra Capital Company 31 13 24 52 6 17 Kotak Mahindra Old Mutual Life Insurance (42) 14 69 101 203 190 Kot
Slide 9: Consolidated PAT – Quarterly
Consolidated PAT – Quarterly ` cr Q3FY13 Q4FY12 Q4FY13 Kotak Mahindra Bank 362 297 436 Kotak Mahindra Prime 105 97 119 Kotak Securities 38 50 13 * Kotak Mahindra Capital Company 2 5 4 Kotak Mahindra Old Mutual Life Insurance 53 57 58 Kotak Mahindra AMC & Trustee Co 11 3 2 International subsidiaries
Slide 10: Consolidated PAT – Quarterly Trend
Consolidated PAT – Quarterly Trend 666 521 491 419 (`cr ) 211 2009 2010 2011 2012 2013 Q1 Q2 Q3 Q4 ` cr 2009 2010 2011 2012 2013 Q1 150 257 328 416 443 Q2 160 300 364 432 502 Q3 131 331 384 463 577 Q4 211 419 491 521 666 10
Slide 11: Consolidated Profit (PBT) Mix
Consolidated Profit (PBT) Mix PBT 151 1,033 1,883 2,274 2,673 3,136 `cr 6% 3% 2% 13% 14% 4% 8% 6% 2% 4% 7% 7% 2% 15% 18% 23% 58% 82% 85% 75% 67% 59% 68% FY03 FY09 FY10 FY11 FY12 FY13 -28% Financing Capital Market Insurance Asset Management PAT 73 652 1,307 1,567 1,832 2,188 `cr 11
Slide 12: Consolidated Key Financials
Consolidated Key Financials Total Assets (` cr) Networth (` cr) 115,835 15,250 12,901 92,349 10,963 73,681 7,911 56,677 6,523 40,658 4,681 1,056 FY03 FY09 FY10 FY11 FY12 FY13 FY03 FY09 FY10 FY11 FY12 FY13 Book Value per share (`) Market Cap (` cr) 204.3 48,754 174.2 148.8 40,394 33,738 113.6 26,046
Slide 13: Integrated Financial Services
Integrated Financial Services Banking Asset Life Insurance Management Capital Markets 13
Slide 14: Financing Business
Financing Business Advances (` cr) NPA * (%) 2.3 * Excluding acquired 66,258 2.2 stressed assets portfolio 53,144 14,794 41,242 1.2 1.1 29,724 24,130 1.1 1.1 1.1 22,498 0.7 0.5 0.4 0.5 3,034 0.3 27,334 FY03 FY09 FY10 FY11 FY12 FY13 FY03 FY09 FY10 FY11 FY12 FY13 Consumer Commercial Corporate Gross NP
Slide 15: Bank Key Ratios
Bank Key Ratios RoA (%) NPA * (%) * Excluding acquired 2.5 stressed assets portfolio 3.0% 2.5% 2.4% 1.7 1.8 1.8 1.8 2.5% 2.0% 1.0 1.3% 1.3% 1.3% 1.2% 1.2% 1.5% 0.8% 0.6% 0.6% 1.0% 0.5% 0.1% 0.5% 0.0% FY03 FY09 FY10 FY11 FY12 FY13 FY03 FY09 FY10 FY11 FY12 FY13 Gross NPA (%) Net NPA (%) CAR & Tier I (
Slide 16: Bank Profit and Loss
Bank Profit and Loss ` cr FY03 FY09 FY10 FY11 FY12 FY13 YoY Net Interest Income 87 1,452 1,780 2,097 2,512 3,206 28% Other Income 81 340 707 781 978 1,161 19% Net Total Income 168 1,792 2,487 2,878 3,490 4,367 25% Employee Cost 22 557 556 751 872 1,051 21% Other Operating Expenses 56 639 634 802 963
Slide 17: Bank Profit and Loss - Quarterly
Bank Profit and Loss - Quarterly ` cr Q3FY13 Q4FY12 Q4FY13 YoY Net Interest Income 823 688 903 31% Other Income 305 254 364 43% Net Total Income 1,128 942 1,267 35% Employee Cost 264 225 288 28% Other Operating Expenses 291 272 326 20% Operating Expenditure 555 497 614 24% Operating Profit 573 445 6
Slide 18: Standalone PAT – Quarterly Trend
Standalone PAT – Quarterly Trend 436 297 (`cr ) 249 203 103 2009 2010 2011 2012 2013 Q1 Q2 Q3 Q4 ` cr 2009 2010 2011 2012 2013 Q1 55 90 187 252 282 Q2 47 126 194 260 280 Q3 71 142 188 276 362 Q4 103 203 249 297 436 18
Slide 19: Bank Segment performance
Bank Segment performance ` cr FY03 FY09 FY10 FY11 FY12 FY13 Corporate/Wholesale Banking $ - 225 386 544 997 1,211 Retail Banking $ 58 71 61 339 566 614 Treasury & BMU* 14 130 367 305 35 146 Unallocated Income (2) - (3) - 2 1 Total 70 426 811 1,188 1,600 1,972 Bank Segment performance - Quarterly ` c
Slide 20: Bank Advances & Investments
Bank Advances & Investments ` cr FY03 FY09 FY10 FY11 FY12 FY13 Dec-12 Corporate Banking 210 3,176 5,552 7,900 10,942 12,291 16,325 Commercial vehicles & Construction equipment 831 4,100 4,414 6,251 7,798 7,805 8,071 Agriculture Division - 2,365 3,089 4.220 5,714 8,356 7,310 Business Banking - 674 1,
Slide 21: Bank Balance Sheet
Bank Balance Sheet ` cr FY03 FY09 FY10 FY11 FY12 FY13 Dec-12 Net Worth 542 3,814 4,485 6,796 7,946 9,447 8,992 Deposits 257 15,645 23,886 29,261 38,537 51,029 51,524 CA 50 3,418 4,992 5,460 7,352 7,650 6,743 SA - 1,701 2,471 3,331 5,050 7,268 6,616 Certificate of Deposit - 1,768 4,386 5,082 3,604 8,
Slide 22: Consumer Banking - Liabilities
Consumer Banking - Liabilities Plan to cross 550 No of Branches / ATM’s branches by March 14 1000 961 500 900 848 450 83 branches added 800 710 400 during the year 700 350 Increased cross sell of 600 492 300 asset products 500 387 250 437 400 200 355 Savings balances 300 321 150 increased 44
Slide 23: Consumer Banking - Assets
Consumer Banking - Assets Focus on SENP and cross Advances break up sell to bank branch 4% 4% 3% 3% 4% 4% 10% 8% 9% Continued focus on Auto 11% 22% Sector 36% 40% 39% 38% Mortgages growth in select 30% territories 96% Selective growth in personal 50% 50% 49% 47% loans 44% Continued low del
Slide 24: Commercial Financing
Commercial Financing Advances break up Focus on Bharat (semi urban / rural areas) 14% 7% 13% 10% 11% 9% 16% 11% 15% 18% 22% # 1 tractor financing bank 31% 30% 29% 30% Asset focused branches 35% 86% in rural areas 53% 43% 43% 41% Consistent growth in Agri 32% Slow down in CV/CEs FY03 FY09 F
Slide 25: Wholesale Banking
Wholesale Banking Increased presence in large Funded & Non funded (` cr) corporate groups Largely medium term finance & working capital 14,794 Stable growth in Trade Credits & Export Finance 12,508 YoY 18% Traction in supply chain financing 9,561 9,510 8,207 Traction in Transaction Banking
Slide 26: Kotak Mahindra Prime
Kotak Mahindra Prime ` cr Q3FY13 Q4FY12 Q4FY13 FY12 FY13 NII and other income 244 187 240 816 913 Profit before tax 158 143 174 570 641 Profit after tax 105 97 119 385 431 ` cr FY03 FY09 FY10 FY11 FY12 FY13 Total Advances 1,756 5,571 8,311 11,145 13,386 17,022 Car Advances 1,756 4,677 6,467 8,489 10
Slide 27: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance Gross Premium (` cr) All past losses recovered now 51 - 1,000 Shift in focus to traditional 104 1,534 1,722 1,590 1,773 products 148 19 Healthy solvency ratio 221 188 288 248 354 500 280 Focus on long term savings 1,176 374 255 and protection 925 685 436 434 FY0
Slide 28: Kotak Securities
Kotak Securities Market ADV (` ‘000 cr) ADV (` cr) - KS 0.4 4,648 16 35 1 3,925 4,034 77 3,293 3,532 96 101 29 38 4 39 31 27 16 23 200 19 14 13 FY03 FY09 FY10 FY11 FY12 FY13 FY03 FY09 FY10 FY11 FY12 FY13 Cash Future Option ` cr Q3FY13 Q4FY12 Q4FY13 FY12 FY13 Total income 147 178 163 610 599 Profit b
Slide 29: Kotak Mahindra Capital Co.
Kotak Mahindra Capital Co. Size Client Transaction (` cr) Offer for Sale (OFS) 11,469 Offer for Sale (OFS) 3,145 Offer for Sale (OFS) 1,516 Qualified Institutional Placement (QIP) 300 Offer for Sale (OFS) 92 Advisor to committee of independent directors for making recommendation to 4,805 shareholder
Slide 30: Kotak Mahindra Capital Co.
Kotak Mahindra Capital Co. Size Client Transaction (` cr) Indian Railway Finance Corp. Tax Free Bonds in the nature of secured, redeemable, non-convertible debentures 5,803 Ltd. Housing & Urban Development Tax Free Bonds in the nature of secured, redeemable, non-convertible debentures 2,194 Corp. Lt
Slide 31: Kotak Mahindra Asset Management
Kotak Mahindra Asset Management AUM ` 45,547 cr AUM ` 55,243 cr PMS PMS Insurance 2% Insurance 3% 19% 20% Domestic MF Debt Domestic Offshore MF Debt 41% Offshore Funds 48% Funds 18% 17% Alternate Alternate Domestic MF Domestic Asset Equity Asset MF Equity 11% 7% 8% 5% Mar 31, 2012 Mar 31, 2013 31
Slide 32: Kotak Mahindra AMC and Trustee Co.
Kotak Mahindra AMC and Trustee Co. Average Assets Under Management ` cr 8.7 lac folios 34,880 30,472 30,766 31,261 79 Branches Regulatory challenges 18,127 FY09 FY10 FY11 FY12 FY13 • Lipper Fund Award 2012 for Kotak Bond Regular Plan Growth – ‘Best Fund over 10 years Bond Indian Rupee’ • Best
Slide 33: Kotak Investment Advisors
Kotak Investment Advisors Realty Fund Private Equity Fund Corpus – ` 2,705 cr Corpus – ` 1,570 cr 58 Investments 35 Investments Infra Fund Corpus – ` 484 cr ` cr Q3FY13 Q4FY12 Q4FY13 FY12 FY13 Total income 20 24 22 97 85 Profit before tax 9 14 11 52 43 Profit after tax 6 10 8 36 31 33
Slide 34: Bank Awards and Recognition
Bank Awards and Recognition Kotak Mahindra Bank’s Board has been adjudged as one of the ‘Best Managed Board’ in the Aon Hewitt-Mint study of 2012 Best Private Bank by Finance Asia Country Awards 2012 Kotak Mahindra Bank has made it once again in the list of the prestigious Forbes Asia’s Fab 50 Compa
Slide 35: Bank Awards and Recognition
Bank Awards and Recognition Kotak Mahindra Bank’s 6% campaign featuring Subbu won the Silver Effie - a prestigious advertising effectiveness award in the financial services category Best Local Cash Management Bank In India, as voted by corporates for Small companies (turnover < US$ 100 Mn) by Asiamo
Slide 36: Awards and Recognition
Awards and Recognition Asiamoney Brokers Poll 2012 Businessworld India’s Best Local Brokerage Best Dealmakers 2012 Among all domestic and foreign brokerages, ranked: 2012: Deal Maker of the year - QIP #2 for Best Overall Country Research 2012: Deal of the year for the M&M #2 for Best Execution Finan
Slide 37: Kotak Uniqueness
Kotak Uniqueness The 5th Largest Bank by Market Capitalisation ∞ 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 Management, M
Slide 38: 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
Slide 39: 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 40: 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 41: 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 42: 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