Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q3 FY2013 Earnings Presentation
42 slides from Kotak Mahindra Bank's earnings presentation, Jan 22, 2013
Slide 1: Investor Presentation Q3FY13
Investor Presentation Q3FY13 1 Jan 22, 2013
Slide 2: Journey So Far
Journey So Far……. Anchor Investment in ACE ARC Alternate Assets BANK KS Life Insurance Mutual 407th Branch & Fund Investment Celebrating 27th Banking Year of success IPO Auto Finance Bill Discounting 1985 1990 1992 1995 1998 2000 2001 2003 2004 2008 2010 2012 2
Slide 3: Group Structure
Group Structure Kotak Mahindra Bank •Consumer Banking •Commercial Banking •Treasury •Distressed Assets Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Securities Trustee Old Mutual Life Capital Company Investments Prime AMC Pension Fund
Slide 4: Geographical Presence
Geographical Presence Wide National Footprint ….. ….. With Multiple Points of Presence Business Dec 31, 2012 Banking 407 Car Finance 68 Life Insurance 196 Securities 1,358 Mutual Fund 79 Total 2,108 International offices situated in Abu Dhabi, Bahrain, California, Dubai, London, Mauritius New York a
Slide 5: Kotak Bank - Standalone Highlights
Kotak Bank - Standalone Highlights PAT Networth Loans Restructured Loans- standard ` 362 cr ` 8,992 cr ` 50,245 cr (` 39,772 cr) ` 9.7 cr (` 276 cr) (` 7,670 cr) up 26% yoy (` 25.1 cr) up 31% yoy Net CAR# RoA CASA NPA * 15.6% (17.5%) ` 13,359 cr Tier 1 1.8% (1.8%) (` 10,615 cr) Up 26% yoy 0.62% (0.4
Slide 6: Consolidated Highlights
Consolidated Highlights PAT Networth Loans Net ` 577 cr ` 14,568 cr ` 67,021cr (` 52,847 cr) NPA * (` 463 cr) (` 12,416 cr) up 25% yoy up 27% yoy 0.53% (0.41%) RoA Total Assets Book Value NIM ` 113,545 cr ` 195.8 per share 2.1% (2.1%) (` 88,514 cr) 4.6% (4.7%) (` 167.9 per share) up 28% yoy • Exclud
Slide 7: Consolidated Advances & Investments
Consolidated Advances & Investments YoY ` cr FY03 FY10 FY11 FY12 Q2FY13 Q3FY12 Q3FY13 Growth CV & CE 713 4,414 6,251 7,798 8,183 7,540 8,071 7% Agriculture Division - 3,089 4,220 5,714 6,419 4,894 7,310 49% Auto loans 1,772 6,542 8,550 10,600 11,748 9,771 12,217 25% Mortgage Loans - 4,765 6,877 8,33
Slide 8: Consolidated PAT
Consolidated PAT ` cr FY03 FY07 FY08 FY09 FY10 FY11 FY12 Kotak Mahindra Bank 45 141 294 276 561 818 1,085 Kotak Mahindra Prime 11 57 101 157 166 318 385 Kotak Securities 24 256 409 107 260 182 126 Kotak Mahindra Capital Company 31 68 115 13 24 52 6 Kotak Mahindra Old Mutual Life (42) (58) (72) 14 69
Slide 9: Consolidated PAT – cont'd
Consolidated PAT – cont’d ` cr Q2FY13 Q3FY12 Q3FY13 9MFY12 9MFY13 Kotak Mahindra Bank 280 276 362 788 924 Kotak Mahindra Prime 114 104 105 288 313 Kotak Securities 40 24 38 76 101 Kotak Mahindra Capital Company 4 4 2 1 12 Kotak Mahindra Old Mutual Life Insurance 47 47 53 146 132 Kotak Mahindra AMC &
Slide 10: Standalone PAT – Quarterly Trend
Standalone PAT – Quarterly Trend 400 362 350 300 276 250 (`cr ) 200 188 142 150 100 71 50 - 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 10
Slide 11: Consolidated PAT – Quarterly Trend
Consolidated PAT – Quarterly Trend 700 600 577 500 463 384 (`cr ) 400 331 300 200 131 100 - 2009 2010 2011 2012 2013 Q1 Q2 Q3 Q4 ` cr 2009 2010 2011 2012 2013 Q1 150 257 328 416 443 Q2 160 300 364 433 502 Q3 131 331 384 463 577 Q4 211 419 491 521 11
Slide 12: Consolidated Profit (PBT) Mix
Consolidated Profit (PBT) Mix PBT 773 1,424 1,033 1,883 2,274 2,673 1,923 2,220 `cr 6% 3% 3% 2% 13% 14% 7% 8% 6% 10% 4% 11% 2% 8% 8% 4% 6% 15% 18% 23% 53% 59% 82% 83% 84% 75% 67% 59% 43% 37% -6% FY07 -7% FY08 FY09 FY10 FY11 FY12 9MFY12 9MFY13 Financing Capital Market Insurance Asset Management PAT 5
Slide 13: Consolidated Key Financials
Consolidated Key Financials Total Assets (` cr) Networth (` cr) 113,545 102,258 13,943 14,568 92,349 88,514 12,901 12,416 73,681 10,963 55,115 7,911 4,681 1,056 FY03 FY10 FY11 FY12 Q2FY13Q3FY12Q3FY13 FY03 FY10 FY11 FY12 Q2FY13 Q3FY12 Q3FY13 Book Value per share (`) Market Cap (` cr) 187.6 195.8 48,2
Slide 14: Consolidated Key Ratios
Consolidated Key Ratios RoA (%) RoE (%) 18.2 2.7 16.4 16.1 15.4 15.1 14.6 2.4 2.2 2.1 2.1 2.1 2.0 7.2 FY03 FY10 FY11 FY12 Q2FY13 Q3FY12 Q3FY13 FY03 FY10 FY11 FY12 Q2FY13 Q3FY12 Q3FY13 NIM (%) NPA * (%) 2.2 * Excluding acquired stressed assets portfolio 5.8 5.2 1.1 5.0 1.1 1.1 1.1 1.0 4.8 4.7 4.7 1.0
Slide 15: Integrated Financial Services
Integrated Financial Services Banking Asset Life Insurance Management Capital Markets 15
Slide 16: Financing Business
Financing Business Advances (` cr) Net Interest Income (` cr) # 67,021 3,218 61,255 53,144 52,847 18,545 2,680 41,242 2,233 29,724 22,919 958 827 1,041 25,557 3,034 205 FY03 FY10 FY11 FY12 Q2FY13 Q3FY12 Q3FY13 FY03 FY10 FY11 FY12 Q2FY13 Q3FY12 Q3FY13 Consumer Commercial Corporate Net NPA (%)* PAT (`
Slide 17: Bank Key Ratios
Bank Key Ratios CAR & Tier I (%) NPA * (%) * Excluding acquired stressed assets portfolio 26.0% 2.4% 18.4% 19.9% 25.7% 17.5% 16.4% 17.5% 15.6% 1.3% 1.2% 1.2% 1.3% 1.2% 18.0% 1.1% 15.4% 15.7% 14.9% 15.6% 14.2% 0.8% 0.7% 0.6% 0.5% 0.6% 0.5% 0.1% FY03 FY10 FY11 FY12 Q2FY13^ Q3FY12^ Q3FY13 FY03 FY10 FY1
Slide 18: Bank Profit and Loss
Bank Profit and Loss ` cr FY03 FY07 FY08 FY09 FY10 FY11 FY12 Net Interest Income 87 605 1,147 1,452 1,780 2,097 2,512 Other Income 81 377 601 424 707 781 978 Net Total Income 168 982 1,748 1,876 2,486 2,878 3,490 Employee Cost 22 260 468 557 556 751 872 Other Operating Expenses 56 352 552 639 634 80
Slide 19: Bank Profit and Loss - Quarterly
Bank Profit and Loss - Quarterly YoY ` cr Q2FY13 Q3FY12 Q3FY13 9MFY12 9MFY13 Growth Net Interest Income 758 652 823 26% 1,825 2,302 Other Income 251 282 305 8% 723 797 Net Total Income 1,009 934 1,128 21% 2,548 3,099 Employee Cost 243 226 264 17% 647 764 Other Operating Expenses 284 264 291 10% 691
Slide 20: Bank Segment performance
Bank Segment performance ` cr FY03 FY07 FY08 FY09 FY10 FY11 FY12 Corporate/Wholesale Banking $ - 214 334 225 386 544 997 Retail Banking $ 58 (42) 62 71 61 339 566 Treasury & BMU* 14 31 (3) 130 367 305 35 Unallocated Income (2) - 5 - (3) - 2 Total 70 203 398 426 811 1,188 1,600 Bank Segment performan
Slide 21: Bank Advances & Investments
Bank Advances & Investments YoY ` cr FY03 FY10 FY11 FY12 Q2FY13 Q3FY12 Q3FY13 Growth Commercial vehicles & CE 713 4,414 6,251 7,798 8,183 7,540 8,071 7% Agriculture Finance - 3,089 4.220 5,714 6,419 4,894 7,310 49% Mortgage loans - 4,712 6,877 8,333 9,286 7,935 9,869 24% Personal loans 188 1,315 1,3
Slide 22: Bank Balance Sheet
Bank Balance Sheet YoY ` cr FY03 FY10 FY11 FY12 Q2FY13 Q3FY12 Q3FY13 Growth Net Worth 542 4,485 6,796 7,946 8,597 7,670 8,992 17% Deposits 257 23,886 29,261 38,537 45,463 38,385 51,524 34% CA 50 4,992 5,460 7,352 6,395 6,189 6,743 9% SA - 2,471 3,331 5,050 5,926 4,426 6,616 49% TD Sweep - 1,798 1,89
Slide 23: Consumer Banking - Liabilities
Consumer Banking - Liabilities No of Branches / ATM’s 500 Branches in CY13 450 907 1,000 848 866 400 900 781 Increased cross sell of 350 710 800 asset products 700 300 492 600 250 Savings balances 500 200 407 increased 49.5% yoy 355 389 400 150 321 330 249 300 Added around 2.1 lac 100 200 cu
Slide 24: Consumer Banking - Assets
Consumer Banking - Assets Advances break up Focus on SENP and cross sell to bank branch 10% 3% 3% 4% 3% 3% 4% 10% 8% 8% 9% 8% 9% Continued focus on Auto Sector 37% 39% 39% 39% 40% 39% Mortgages growth in select 90% territories 50% 50% 49% 49% 49% 48% Selective growth in personal loans Cont
Slide 25: Commercial Financing
Commercial Financing Advances break up Focus on Bharat (semi urban / rural areas) 14% 11% 15% 18% 22% 19% 22% 16% 13% Asset focused branches 11% 11% 10% 11% in rural areas 30% 29% 30% 28% 30% 32% Priority sector target met 86% consistently 43% 43% 42% Consistent growth in Agri 41% 38% 35% FY
Slide 26: Wholesale Banking
Wholesale Banking Funded & Non funded (` cr) Largely Working Capital 18,545 Continued focus on 15,893 YoY Transaction Banking 14,919 24% o Vendor Financing, CMS 12,508 and Operative Accounts 9,560 9,836 o Focus on FX flows with 8,990 8,344 8,207 increased treasury coverage 6,293 6,490 o Custody
Slide 27: Kotak Mahindra Prime
Kotak Mahindra Prime ` cr FY12 Q2FY13 Q3FY12 Q3FY13 NII and other income 816 225 231 244 Profit before tax 570 170 152 158 Profit after tax 385 114 104 105 ` cr FY03 FY10 FY11 FY12 Q2FY13 Q3FY12 Q3FY13 Total Advances 1,756 8,311 11,145 13,386 15,173 12,379 16,042 Car Advances 1,756 6,467 8,489 10,57
Slide 28: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance AUM (` cr) Sum Assured (` ‘000 cr) 192 198 9,783 10,143 9,293 164 8,592 8,284 147 130 6,710 92 115 2 FY03 FY10 FY11 FY12 Q2FY13 Q3FY12 Q3FY13 FY03 FY10 FY11 FY12 Q2FY13 Q3FY12 Q3FY13 ` cr FY03 FY10 FY11 FY12 Q2FY13 Q3FY12 Q3FY13 Capital 183 562 562 562 562 562 562 Solve
Slide 29: Kotak Securities
Kotak Securities Market ADV (` ‘000 cr) ADV (` cr) - KS 0.4 4,648 1 35 4,160 3,925 4,034 77 3,673 96 94 101 102 3,343 38 4 39 31 26 30 28 23 200 19 14 13 12 14 FY03 FY10 FY11 FY12 Q2FY13Q3FY12Q3FY13 FY03 FY10 FY11 FY12 Q2FY13 Q3FY12 Q3FY13 Cash Future Option ` cr FY12 Q2FY13 Q3FY12 Q3FY13 Total inco
Slide 30: Kotak Mahindra Capital Co.
Kotak Mahindra Capital Co. Size Client Deals – Q3FY13 (` cr) Initial Public Offerings (IPO) 4,173 Tax Free Bonds in the nature of secured, redeemable, non-convertible 2,017 debentures Qualified Institutional Program (QIP) 867 Offer for Sale on Stock Exchange (OFS) 810 Tax Free Bonds in the nature of
Slide 31: Kotak Mahindra Capital Co.
Kotak Mahindra Capital Co. Size Client Deals – Q3FY13 (` cr) Private equity investment led by Fidelity Growth Partners India NA Sale of controlling stake to Sutherland NA Delisting offer by Prolec-GE to shareholders of Indo Tech Transformer Ltd. NA Restructuring of Wipro Limited (demerger of Wipro’s
Slide 32: Asset Under Management
Asset Under Management AUM ` 48,669cr AUM ` 56,484 cr PMS PMS Insurance 2% Insurance 2% 17% 18% Offshore Domestic Offshore Domestic Funds MF Debt Funds MF Debt 15% 48% 17% 50% Alternate Alternate Asset Domestic Asset Domestic 12% MF Equity 8% MF Equity 6% 5% Dec 31, 2011 Dec 31, 2012 32
Slide 33: Kotak Mahindra AMC and Trustee Co.
Kotak Mahindra AMC and Trustee Co. Average Assets Under Management ` cr Over 8.8 lac folios 34,880 79 Branches 32,381 30,472 30,766 30,866 30,203 4 Kotak Equity Funds in quartile 1 of top performing equity funds FY10 FY11 FY12 Q2FY13 Q3FY12 Q3FY13 ` cr FY12 Q2FY13 Q3FY12 Q3FY13 Total income 12
Slide 34: Kotak Investment Advisors
Kotak Investment Advisors Realty Fund Private Equity Fund Corpus advised / managed – Corpus advised / managed – ` 2,791 cr ` 2,001 cr 55 Investments 35 Investments Propose to launch Infrastructure fund with SMBC and Brookfield ` cr FY12 Q2FY13 Q3FY12 Q3FY13 Total income 97 22 23 20 Profit be
Slide 35: 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 Kotak Mahindra Bank has made it once again in the list of the prestigious Forbes Asia’s Fab 50 Companies in 2012 for the 3rd consecutive year (2010-12) Ko
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
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