Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q1 FY25 Earnings Presentation
27 slides from Kotak Mahindra Bank's earnings presentation, Jul 20, 2024
Slide 1: Exchange filing cover letter for investor presentation
July 20, 2024 KMBL/062/2024-25 BSE Limited National Stock Exchange of India Limited Corporate Relationship, Exchange Plaza, Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Dalal Street, Bandra (East), Mumbai 400 001 Mumbai 400 051 BSE Scrip Code: 500247, 958687, 974396, NSE S
Slide 2: Transforming for scale
Transforming for scale Investor Presentation Q1FY25 Presentation on financial results for the Period ended 30th June, 2024 20th July, 2024
Slide 3: Key Updates for Q1FY25
Consolidated • PAT: ₹ 7,448 cr • ROE: 22.04% • ROA: 3.87% Bank • PAT: ₹ 6,250 cr • Customer Assets: Up 20% YoY • NIM: 5.02% • Avg Deposits: Up 21% YoY Key Updates • CASA Ratio: 43.4% • NNPA: 0.35% for Q1FY25 Subsidiaries • Kotak Securities: YoY growth PAT: 83%; Cash ADV: 100% • Kotak AMC: YoY growth
Slide 4: Kotak's predominance in its businesses
Kotak’s predominance in its businesses Bank’s milestones Subsidiaries highlights Customer reach #4 Private Sector Bank in India Kotak Securities – Strong Retail & 5.1 cr (Balance sheet size as at Mar’24) Institutional Broking Business Bank Customers Overall market share of 11.4% in Q1FY25 ₹ 3.58 trn
Slide 5: Update on RBI Supervisory Action
Update on RBI Supervisory Action Order and Impact assessment Update on action taken Business & Financial Impact Reserve Bank of India (“RBI”) order of 24th External auditor appointed and scope of audit finalized in Potential financial impact continues April 2024, directs the Bank to cease and consul
Slide 6: Divestment of stake in Kotak General Insurance
Divestment of stake in Kotak General Insurance Zurich highlights Transaction rationale Value creation Founded in 1872 (150+ years ago) The alliance brings together Zurich’s global Zurich has acquired5 70% stake in KGI for Market cap1: $78bn insurance leadership and scale with Kotak’s ~₹5,560 Cr by w
Slide 7: Consolidated Highlights
Consolidated Highlights PAT ROA ROE Q1FY25 ₹ 7,448 cr 3.87% 22.04% excl. gain on KGI divestment ₹ 4,435 cr 7% 2.30% 13.12%^ Q1FY24 ₹ 4,150 cr 2.63% 14.62% As at Jun’24 Customer Assets* CAR CET-I Book Value / Share ₹ 494,105 cr 22% 22.8% 21.9% ₹ 710 As at Jun’23 ₹ 405,775 cr 23.3% 22.3% ₹ 584 ^ROE: 1
Slide 8: Kotak Group PAT
Kotak Group PAT ₹ cr Q1FY25 Q1FY24 Q4FY24 YoY PAT Contribution^ Kotak Mahindra Bank 3,520 3,452 4,133 2% Kotak Mahindra Prime 232 218 223 6% Q1FY25 Kotak Mahindra Investments 138 102 129 35% Kotak Infrastructure Debt Fund 11 11 11 5% 82% 87% BSS Microfinance 50 95 76 (47%) Sonata Finance (13) - (14)
Slide 9: Kotak Group Networth & ROE
Kotak Group Networth & ROE ₹ cr PAT Q1FY25 Networth Jun’24 ROE Networth Contribution Kotak Mahindra Bank 6,250 106,308^ Kotak Mahindra Prime 232 9,384 Kotak Mahindra Investments 138 3,467 Kotak Infrastructure Debt Fund 11 531 85% BSS Microfinance 50 1,060 Sonata Finance (13) 377 4% Jun’24 Bank & Oth
Slide 10: Bank Highlights
Bank Highlights PAT NIM Cost / Income ROA Q1FY25 ₹ 6,250 cr 5.02% 34.10% 4.22% excl. gain on KGI divestment ₹ 3,520 cr 2% 5.02% 46.23% 2.38% Q1FY24 ₹ 3,452 cr 5.57% 44.49% 2.81% Customer Assets* Net NPA CASA Ratio CAR CET-I As at Jun’24 ₹ 435,827 cr 20% 0.35% 43.4% 22.4% 21.3% As at Jun’23 ₹ 362,204
Slide 11: Profit and Loss Account
Profit and Loss Account ₹ cr Q1FY25 Q1FY24 Q4FY24 YoY FY24 Notes Net Interest Income 6,842 6,234 6,909 10% 25,993 Other Income 2,929 2,683 2,979 9% 10,273 Q4FY24 PBT includes: Fee and Services 2,240 1,827 2,467 23% 8,464 -Interest on income tax refunds: ₹142 cr -Reversal of AIF provision ₹ 157 cr Tr
Slide 12: Balance Sheet
Balance Sheet ₹ cr 30-Jun-24 30-Jun-23 31-Mar-24 ₹ cr 30-Jun-24 30-Jun-23 31-Mar-24 Capital & Reserves and Surplus 106,308 87,011 96,639 Cash, Bank and Call 37,161 44,136 52,788 Deposits 447,418 386,254 448,954 Investments 162,578 123,873 155,404 of which, CASA 194,222 189,289 204,304 Net Advances 3
Slide 13: Deposits
Deposits CASA (EOP) (₹ cr) Averages Q1FY25 YoY % Q1FY24 43.4% 49.0% 45.5% CASA % Total Deposits 435,603 361,295 21% 18,730 13,073 20,017 Floating rate SA Current Account 62,200 5% 59,431 105,348 109,079 111,494 Fixed rate SA CA Savings Account 122,105 2% 119,817 70,144 64,722 75,208 Term Deposit 251
Slide 14: Customer Assets
Customer Assets ₹ cr 30-Jun-24 30-Jun-23 31-Mar-24 YoY QoQ Advance Mix Home Loans & LAP 110,850 95,147 1,06,726 17% 4% Business Banking 37,591 29,906 35,997 26% 4% 2% Consumer PL, BL and Consumer Durables 20,317 16,692 20,049 22% 1% 7% Commercial Credit Cards 14,644 11,360 14,505 29% 1% Consumer 183
Slide 15: Asset Quality
Asset Quality ₹ cr Q1FY25 Q1FY24 Q4FY24 ₹ cr 30-Jun-24 30-Jun-23 31-Mar-24 Opening GNPA 5,275 5,768 6,302 GNPA (%) 1.39% 1.77% 1.39% Fresh Slippages 1,358 1,205 1,305 NNPA (%) 0.35% 0.40% 0.34% Upgradations & Recoveries 586 692 772 PCR (%) 75% 78% 76% Write-offs 570 372 1,560 GNPA 5,477 5,909 5,275
Slide 16: Kotak Securities
Kotak Securities ₹ cr Q1FY25 Q1FY24 Q4FY24 FY24 Total Income 1,298 805 1,216 3,982 KS Cash ADV (₹ cr) Profit After Tax 400 219 378 1,226 Market Share Cash* (%) 10.1 10.5 10.2 10.2 8,556 7,858 Derivative Market Share* (%) 12.1 13.1 12.0 12.6 5,820 4,268 Overall Market Share*(%) 11.4 12.2 11.4 11.8 Q1
Slide 17: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance ₹ cr Q1 FY25 Q1 FY24 Q4 FY24 FY24 Gross written premium (₹ cr) Capital 562 562 562 562 2,857 2,639 7,478 17,708 Other Reserves and Surplus 5,245 4,806 5,301 5,301 1,201 1,106 3,793 8,736 Total Premium 2,857 2,639 7,478 17,708 Profit After Tax 1,038 1,036 1,648 4,713 174
Slide 18: Kotak Mahindra Prime
Kotak Mahindra Prime ₹ cr Q1 FY25 Q1 FY24 Q4 FY24 FY24 NII 503 443 493 1,870 Customer assets* (₹ Cr.) Other Income 153 107 126 500 Total Income 656 550 619 2,370 Operating Expenses 270 223 268 1,000 30,835 29,784 24,630 Provisions (Net) 77 35 54 182 Profit After Tax 232 218 223 888 5,058 4,945 4,697
Slide 19: Kotak Mahindra AMC & Trustee Co.
Kotak Mahindra AMC & Trustee Co. Average Assets Under Management (₹ cr) - Overall ₹ cr Q1FY25 Q1FY24 Q4FY24 FY24 Profit After Tax 175 106 150 525 421,655 384,007 Other Highlights 346,589 312,199 • Launched equity NFO ‘Kotak Special Opportunities Fund’ in Jun-24: Amount collected ₹ 2,237 cr Q1FY25 Q1
Slide 20: Assets Under Management
Assets Under Management Total: Total: ₹ 636,311 ₹ 560,140 Cr. cr 36% Total: ₹ 466,878 cr Total: ₹ 420,880 Cr. Domestic MF Equity 293,167 Domestic MF Equity 178,471 Domestic MF Debt Domestic MF Debt 46% 38% 151,626 136,260 24% 29% Offshore Funds 30th Jun, 30th Jun, 38,357 2024 Offshore Funds 8% NPS &
Slide 21: Geographical presence
Geographical presence Group Branches distributed across various geographies Bank Branch* Classification (No. | %) Metro 896 | 45% Network in India Branches Urban 430 | 22% Semi Urban 311 | 16% 1,965 Kotak Bank* 1,965 Rural 328 | 17% Kotak Mahindra Prime 154 Kotak Life Insurance 293 Kotak Securities#
Slide 22: Strategy to transform for scale
Strategy to transform for scale Our Enablers 21
Slide 23: Creating value for our stakeholders
Creating value for our stakeholders Customers: The Heart of Our Business Getting it right by our customers by understanding their needs and building appropriate propositions for them and thus being the right partner to them. This will help us scale our business and expand market share. 1 Customers D
Slide 24: Kotak's unique financial conglomerate structure
Kotak’s unique financial conglomerate structure Parent Company Kotak Mahindra Bank Kotak Securities Bank Stock Broking Kotak Mahindra Prime Kotak Mahindra Capital Company Car and Two-Wheeler Loans Banking & Capital Investment Banking Other Markets Kotak Mahindra Investments Lending & Investments Len
Slide 25: Delivering value to our customers through the power of 'One Kotak'
Delivering value to our customers through the power of ‘One Kotak’ Individuals Corporate & Institutional Public Institutional Conglomerates UHNI Central Govt. Institutional NRI Clients State Govt. Affluent Large Corporates Public Sector Core* Mid Markets/SME Enterprises Public Sector Financial Inclu
Slide 26: Strong and committed leadership team
Strong and committed leadership team Ashok Vaswani Shanti Ekambaram Devang Gheewalla Paul Parambi Milind Nagnur Virat Diwanji Manish Kothari <1 Year 33 Years 20 Years 33 Years 2 Years 21 Years 29 Years Managing Deputy Managing Group Chief Risk CTO & Chief Commercial Group CFO Consumer Banking Direct
Slide 27: Disclaimer
Disclaimer This presentation is for information purposes only and Equity 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 connect