Kotak Mahindra Bank Limited · NSE:KOTAKBANK

Kotak Mahindra Bank — Q1 FY2017 Earnings Presentation

39 slides from Kotak Mahindra Bank's earnings presentation, 2016

  1. Slide 1: Investor Presentation Q1FY17

    INVESTOR PRESENTATION Q1FY17

  2. Slide 2: Standalone Highlights Q1FY17

    Standalone Highlights Q1FY17 PAT NIM LOANS NET NPA ` 742 cr 4.37% ` 120,765 cr 1.21% [ ` 190 cr] [4.18%] [ ` 103,614 cr] [1.04%] TOTAL CAR BRANCHES CASA ASSETS 16.8%# 37.4% [16.5%] ` 189,820 cr Tier I# 1,333 ` 52,418 cr [ ` 166,874 cr] 15.8% [1,260] [ ` 40,115 cr] [15.3%] Figures in [brackets] are Q

  3. Slide 3: Merger Update

    Merger Update  Technology integration across all platforms, channels and systems completed as of Jun’16 • Down-time limited to minimise migration impact • Focussed on uniform customer experience across the entire network  People and Process integration largely completed; 15 months from RBI approva

  4. Slide 4: Profit and Loss Account

    Profit and Loss Account ` cr Q1FY17 Q1FY16 Q4FY16 FY16 Net Interest Income 1,919 1,598 1,857 6,901 Other Income * 733 593 682 2,612 Net Total Income 2,652 2,191 2,539 9,513 Employee Cost # 667 929 634 2,804 Other Operating Expenses $ 670 665 711 2,668 Operating Expenditure 1,337 1,594 1,345 5,472 Op

  5. Slide 5: Income and Asset Quality

    Income and Asset Quality NII (` cr) and NIM Asset Quality  Restructured loans considered standard ` 160 cr  0.13% of net advances (0.26% as on Mar-16)  SMA2 outstanding - ` 474 cr  0.39% of net advances (0.13% as on Mar-16)  During the quarter No CDR participation No transfer to ARC No conversi

  6. Slide 6: Segment Performance

    Segment Performance Bank Segmental PBT As per RBI (` cr) Q1FY17 Q1FY16 Q4FY16 FY16 Corporate/Wholesale Banking 601 369 585 2,030 Retail Banking 250 12 260 917 Treasury, BMU* & 285 (89) 149 177 Corporate Centre ** Total 1,136 292 994 3,124 *Balance Sheet Management Unit ** integration costs are part

  7. Slide 7: Advances & Investments

    Advances & Investments 30-Jun-16 [` 120,765 cr] Advances ` cr 30-Jun-16 30-Jun-15 31-Mar-16 Corporate Banking 38,067 31,205 34,970 Small Business, PL and CV/CE 8,005 5,626 7,463 Credit Cards 12% Agriculture Division 16,814 15,268 17,993 Business Banking 16,990 16,522 17,997 Home Loans and LAP 23,479

  8. Slide 8: Balance Sheet

    Balance Sheet ` cr 30-Jun-16 30-Jun-15 31-Mar-16 Networth 24,744 21,887 23,959 Deposits 140,028 116,812 138,643 CA 21,854 17,385 23,282 SA 30,564 22,730 29,495 Certificate of Deposit 9,298 11,074 5,639 Term Deposit Others 78,312 65,623 80,227 Borrowings 17,063 21,435 20,975 Other Liabilities and Pro

  9. Slide 9: Branches & Deposits

    Branches & Deposits CASA (` cr) Highlights CASA % 37.4% 34.3% 38.1%  1,333 branches as on 30th Jun, 2016  Plan to reach 1,400 branches by CY 2017  CASA and TDs below ` 5 cr constitute 70% of total deposits  TDs below ` 1 cr were ` 37,177 cr  TD Sweep deposits 6.2% of the total deposits YoY % 

  10. Slide 10: Geographical Presence

    Geographical Presence Branches 1,333 [No./%] North 2 389/29% 9 66 8 West East 42 413/31% 77/6% 98 1 62 53 4 South 12 1 454/34% 1 123 34 7 35 15 2 16 Branch Classification 282 83 6 108 153 No of ATMs IBU in GIFT City Dubai Rep office 32 78 2,034 10

  11. Slide 11: Being future ready

    Being future ready A key focus area Delighting the internal and external Initiatives customers ) Tab Banking Innovation Lab Savings account onboarding process for Incubation Center for fintech corporate salary segment innovation Design thinking & thought leadership Improve customer experience on Inn

  12. Slide 12: Convenience

    Best in class transaction experience on mobile Enhancing our enjoyment with customers Highest rated banking app (4.4) in India Disruptive growth in digital payments Integrated with Google Amongst top 5 banks in mobile transactions Now Features added 97% of - Both in volume & value Convenience rating

  13. Slide 13: Digital Activity

    Digital Activity Digital Activity Digital Payments Monthly transaction on Mobile crossed Rs. 3,000 cr Digital Payments YOY growth in absolute transaction Share of digital transactions in overall Fund transfer ~ 60% Mobile only customer usage showing growing trends with ~ 12% customers using Net Bank

  14. Slide 14: Digital Update - Subsidiaries

    Digital Update - Subsidiaries Kotak Securities  Mobile transaction volume crossed over ` 6,000 cr per month  No. of trades on mobile app crossed over 4.5 lacs pm  Brokerage Contribution of Kotak Stock Trader app crossed 10%  Launch of New version of Keat pro (EXE); Launch of new products  Socia

  15. Slide 15: Consolidated Highlights Q1FY17

    Consolidated Highlights Q1FY17 PAT CAR# LOANS BOOK VALUE PER SHARE 17.3% [17.2%] ` 1,067 cr Tier I # ` 147,004 cr ` 187.6 [ ` 517 cr] 16.5% [ ` 125,522 cr] [ ` 165.6 ] [16.1%] NIM NETWORTH NET NPA TOTAL ASSETS 4.38% ` 34,443 cr 1.06% ` 240,175 cr [4.29%] [ ` 30,226 cr] [0.93%] [ ` 209,689 cr] Figure

  16. Slide 16: Consolidated Key Financials

    Consolidated Key Financials Advances [` cr] Networth [` cr] Total Assets [` cr] PAT [` cr] 16

  17. Slide 17: Consolidated Advances & Investments

    Consolidated Advances & Investments 30-Jun-16 (` 147,004 cr) Advances & Investments ` cr 30-Jun-16 30-Jun-15 31-Mar-16 Small Business, PL and Corporate Banking 42,732 34,837 39,946 Credit Cards 10% CV/CE 8,005 5,626 7,463 Agriculture 16,814 15,268 17,993 Division Business Banking 16,990 16,522 17,99

  18. Slide 18: Consolidated PAT

    Consolidated PAT ` cr Q1FY17 Q1FY16 Q4FY16 FY16 Kotak Mahindra Bank 742 190 696 2,090 Kotak Mahindra Prime 120 119 130 502 Kotak Mahindra Investments 40 30 50 154 Kotak Mahindra Old Mutual Life 71 66 77 251 Insurance Kotak AMC and TC 19 20 25 72 Kotak Securities 60 67 51 251 Kotak Mahindra Capital 2

  19. Slide 19: Entity Wise Networth

    Entity Wise Networth ` cr 30-Jun-16 30-Jun-15 31-Mar-16 Kotak Mahindra Bank 24,744 21,887 23,959 Kotak Mahindra Prime 3,832 3,469 3,852 Kotak Mahindra Investments 881 717 841 Kotak Mahindra Old Mutual Life Insurance 1,593 1,337 1,521 Kotak AMC and TC 192 121 173 Kotak Securities 2,694 2,451 2,635 Ko

  20. Slide 20: Kotak Mahindra Prime

    Kotak Mahindra Prime Customer Assets (` cr) & NNPA (%) ` cr Q1FY17 Q1FY16 Q4FY16 FY16 NII 242 235 247 967 Other Income 52 42 57 210 Total Income 293 277 304 1,177 Profit Before Tax 183 183 201 773 Profit After Tax 120 119 130 502 CAR (%) 18.2 ROA (%) - annualised 2.3 20

  21. Slide 21: Kotak Mahindra Investment

    Kotak Mahindra Investment Customer Assets (` cr) & NNPA (%) ` cr Q1FY17 Q1FY16 Q4FY16 FY16 NII 67 48 71 251 Other Income 5 8 14 29 Total Income 72 56 85 280 Profit Before Tax 61 46 75 236 Profit After Tax 40 30 50 154 CAR (%) 18.2 ROA (%) - annualised 3.4 21

  22. Slide 22: Kotak Mahindra Old Mutual Life Insurance

    Kotak Mahindra Old Mutual Life Insurance New Business Premium (` cr) Highlights 477 387 921 2,210  Group business grew by 23% YoY  Sum assured increased by 21%. YoY  Number of lives covered grew by 39% YoY  Investment Performance of 100% of Equity Funds in Quartile 1 on five years basis ` cr Q1F

  23. Slide 23: Kotak Mahindra Old Mutual Life Insurance

    Kotak Mahindra Old Mutual Life Insurance 13th Month Persistency* & Conservation Ratio AUM and Surrenders (` cr) * The 13th Month persistency is after a time lag of 45 days from quarter end, accordingly the current number is of FY16  KLI has shown improvement in 13th month persistency  Policyholder

  24. Slide 24: Kotak Mahindra AMC & Trustee Co

    Kotak Mahindra AMC & Trustee Co Average Assets Under Management (`cr) - Overall Average Assets Under Management (`cr) - Equity Highlights ` cr Q1FY17 Q1FY16 Q4FY16 FY16  Pure Equity closing Market share Profit Before Tax 29 21 32 90 at 2.49% as on Jun-16 vs 2.37% as on Mar-16 Profit After Tax 19 20

  25. Slide 25: Asset Under Management

    Asset Under Management Jun 30, 2016 Jun 30, 2015 AUM ` 110,926 cr AUM ` 94,242 cr 25

  26. Slide 26: Kotak Investment Advisors Limited

    Kotak Investment Advisors Limited  Set up for a focused approach to investing in the Indian Private Equity, Real Estate, Infrastructure, Special Situations & Listed Strategies space  Advises / manages an AUM of ` 11,446 cr with dedicated, independent and experienced investment teams Real Estate Pr

  27. Slide 27: Kotak Securities

    Kotak Securities Market ADV (` ‘000 cr) ADV (` cr) - KS 318 290 322 285 ` cr Q1FY17 Q1FY16 Q4FY16 FY16 Total Income 238 250 225 975 Profit Before Tax 92 102 75 381 Profit After Tax 60 67 51 251 Market Share * (%) 2.4 2.7 2.3 2.6 *excluding BSE Derivative segment Kotak Securities services > 1.2 milli

  28. Slide 28: Kotak Mahindra Capital Co.

    Kotak Mahindra Capital Co. Advisory Equity Manager to the Buyback Offer Initial Public Offering (IPO) of Mahanagar Gas Limited ` 2,000 cr ` 1,039 cr Placement of 15.7% of AU Financiers to domestic investors Initial Public Offering (IPO) of ` 751 cr Ujjivan Financial Services Limited ` 883 cr Sale of

  29. Slide 29: Group Profile

    GROUP PROFILE

  30. Slide 30: The Journey So far…

    The Journey So far… Kotak Mahindra Bank is the 4th Largest Private Sector Bank Rating for Bank, KMP, KMIL, KS 30

  31. Slide 31: Organizational Overview

    Organizational Overview + Car Finance + Other Lending Kotak Mahindra Old Mutual Life Insurance + Life Insurance Kotak Mahindra Financial Services + Advisory Services for Middle East KOTAK MAHINDRA BANK Commercial Bank & Holding Company Kotak Mahindra Investments Kotak Investment Advisors + Investmen

  32. Slide 32: Kotak Uniqueness

    Kotak Uniqueness - Strong capital base: Bank’s - Ability to take advantage CRAR* - 16.8% as on 30th Jun 16 of opportunities & build - Strong on ground relationships profitable business models key contributor to achieve low risk & high return - Ability to gauge warning - Consistent stock performance

  33. Slide 33: The Path of Leadership

    The Path of Leadership Attract & Retain Talent - High degree of stability within Risks Management the management team, many Strong Capital Position have been with the Group for - Extensive on-the-ground over 15 years Capital adequacy amongst the presence and superior highest in the Indian banking -

  34. Slide 34: Bank Awards & Recognition

    Bank Awards & Recognition Best Private Bank in India Euromoney Awards for Excellence, Asia 2015 Best Private Bank India FinanceAsia Country Awards 2015 Best Private Bank India Global Private Banking Awards Mr. Uday Kotak 2015 Best Transformational Leader Award 2015 Best Retail Growth Asian Centre fo

  35. Slide 35: Awards and Recognition

    Awards and Recognition Ranked #2 Institutional Investor’s 2015 All-India Sales Team Asiamoney Brokers Poll 2015 • Ranked #1 in Overall Research for India • Ranked #1 in Execution for India • Ranked #2 for Most Independent Best Broker in India Research Brokerage IPO Dealmaker of the Year FinanceAsia

  36. Slide 36: 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 a

  37. Slide 37: Talent: Professional Entrepreneurs at work

    Talent: Professional Entrepreneurs at work D.KANNAN  Joined Kotak in 1991; First charge | Assistant Manager, Kotak Mahindra Finance  Current charge | Group Head, Commercial Banking, Kotak Mahindra Bank  On being a professional entrepreneur | Joined Kotak Mahindra Finance as Assistant Manger and w

  38. Slide 38: 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 – Corporate, Institutional & Investment Banking, Kotak Mahindra Bank  On being a professional entrepreneur | After two years in Inv

  39. Slide 39: 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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