Axis Bank Limited · NSE:AXISBANK
Axis Bank — FY2015 Earnings Presentation
34 slides from Axis Bank's earnings presentation, Aug 6, 2015
Slide 1: FY 2014-15 Annual Results Earnings Presentation
FY 2014-15 Annual Results Earnings Presentation
Slide 2: Safe Harbor
Safe Harbor Except for the historical information contained herein, statements in this release which contain words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek to”, “futu
Slide 3: Introduction
Introduction Performance Overview Business Overview 2
Slide 4: Overview
Overview Snapshot (As on March 31, 2015) Total Assets `4,61,932 crores Net Advances `2,81,083 crores Banking Treasury Total Deposits `3,22,442 crores Operations Net Profit (Q4FY15) `2,181 crores Net Profit (FY15) `7,358 crores Corporate Credit Shareholders‟ Funds `44,677 crores Diluted EPS (annualiz
Slide 5: Shareholding Pattern
Shareholding Pattern (As on March 31, 2015) SUUTI Others 11.59% Life Insurance 15.09% GDR& Corporation & its 3.72% group entities Indian Institutions 12.49% 6.62% General Insurance Corp & others 3.85% Foreign Institutional investors 46.64% Share Capital ` 474.10 crores Shareholders‟ Funds ` 44,6
Slide 6: High Shareholder Returns
High Shareholder Returns 188.47 1.83 1.78 1.68 1.70 162.69 21.22 20.51 141.50 18.23 18.57 110.40 1 1 Equity (%) Return on Return 1on Assets (%) Book Value Per Share (`) FY12 FY13 FY14 FY15 A strong franchise demonstrating consistent value creation over time 5
Slide 7: Performance Overview
Introduction Performance Overview Business Overview 6
Slide 8: Performance Highlights
Performance Highlights Q4FY15 FY15 Net Profit 18% YOY 18% YOY Net Interest Income 20% YOY 19% YOY Fee Income 19% YOY 13% YOY Operating Revenue 21% YOY 17% YOY Operating Profit 24% YOY 17% YOY CASA1 14% YOY CASA (Daily Average) 15% YOY Total Deposits1 15% YOY Total Advances1 22% YOY 1 As on 31st Marc
Slide 9: Key Financial Highlights
Key Financial Highlights Retail Franchise continues to show traction • CASA Deposits in FY15 on daily average basis grew 15% YOY of which Savings Bank Deposits grew 17% & Current Account Deposits grew 11%; Daily Average CASA constitutes 40% of Total Deposits • Retail Term Deposits grew 27% YOY and c
Slide 10: Growing Net Interest Income
Growing Net Interest Income ` crores 3,799 14,224 3,166 11,952 20% YOY 19% YOY Q4FY14 1 Q4FY15 FY141 FY15 Trend in NIIs (`crores) FY12 8,018 FY13 9,666 FY14 11,952 FY15 14,224 CAGR 21% 9
Slide 11: Diversified Fee Income Profile
Diversified Fee Income Profile ` crores 2,124 6,779 5,985 1,780 1 FY141 FY15 Q4FY14 Q4FY15 19% YOY 13% YOY Q4FY15 FY15 Retail Corporate Business Corporate Credit Retail 39% Credit 28% Business 27% 38% Treasury & Treasury & Business Business DCM DCM Banking SME Banking 20% SME 21% 7% 6% 8% 6% 10
Slide 12: Sustained Profitability Growth: Robust Operating Revenue
Sustained Profitability Growth: Robust Operating Revenue ` crores 6,056 21,268 5,019 18,112 3,582 12,064 2,888 10,211 2,181 7,358 1,842 6,218 Net Profit Core Operating Profit Core Operating Net Profit Core Operating Core Operating Revenue Profit Revenue Q4FY14 Q4FY15 FY14 FY15 18% YOY 24% YOY
Slide 13: Consistent Net Profit Growth
Consistent Net Profit Growth Quarterly Net Profits ` crores 12
Slide 14: Stable CASA Growth Underpins Low-Cost Deposit Franchise
Stable CASA Growth Underpins Low-Cost Deposit Franchise CASA and Retail Term Deposits (` crores) Growth (%) 250,981 223,674 227,492 Daily 210,695 208,648 As on March 31 2015 End Day Average for the year 106,581 84,233 97,307 101,906 Savings Bank 14 17 93,406 88,292 CASA 14 15 77,776 79,875 79,953 74
Slide 15: Strong CASA Franchise Supports Margin Stability
Strong CASA Franchise Supports Margin Stability CASA Deposits CASA Ratio (` crores) 144,400 45% 45% 45% 43% 126,462 126,367 125,586 42% 115,242 88,292 77,776 79,875 79,953 74,583 48,686 46,492 45,633 56,108 40,659 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 CA Deposits SB D
Slide 16: Stable Asset Quality
Stable Asset Quality Loan Mix Asset Quality (As on March 31 2015) NPA trend Provision coverage of 78% as on March 2015 including prudential write-offs (87% before accumulated write-offs) Net Cumulative restructured advances were `8,166 crores (2.71% of net customer assets) as on March 2015 `1,
Slide 17: Capital Adequacy: Well Positioned for Growth
Capital Adequacy: Well Positioned for Growth 16.07% 16.09% 15.90% 15.64% 15.09% 3.45% 3.45% 3.33% 3.20% 3.02% 12.62% 12.64% 12.57% 12.44% 12.07% Mar-14 Jun-14* Sep-14* Dec-14* Mar-15 Tier 1 CAR Tier 2 CAR Total CAR * Considering unaudited Net Profit for the quarter / half year / nine-months 16
Slide 18: Business Overview
Introduction Performance Overview Business Overview 17
Slide 19: Well distributed, countrywide network of Branches & ATMs
Well distributed, countrywide network of Branches & ATMs Multiple channels drive business growth Expanding footprint across centres Extensive use of technology to provide services One of the largest ATM network in the industry Branches Domestic Branch network1 1,622 1,947 2,402 2,589 Call AT
Slide 20: Retail Liabilities Exhibit Consistent Growth
Retail Liabilities Exhibit Consistent Growth Savings Bank Deposits Retail Deposits* (% of Total Deposits) (` crores) 58 60 88,292 77,776 Mar '141 Mar '15 Mar '141 Mar '15 14% YOY Retail Term Deposits (RTD) Share of Domestic RTD as % of Domestic Term Deposits (` crores) 106,581 61 59 84,233 Mar '14
Slide 21: Sustained Traction in Retail Assets
Sustained Traction in Retail Assets Key Highlights Composition of Retail Advances Maintain focus on secured lending Non- schematic with greater emphasis on mining loans & Loan against existing liability customer base Property others 12% 7% Integrated strategy for tapping into Personal Housing co
Slide 22: Growth in Retail Fees
Growth in Retail Fees Key Highlights (` crores) 819 Focus on cross-selling to existing 637 customers key driver for growth 29% YOY Third-party products sold include mutual funds, insurance, on-line broking, portfolio 1 management services (non-discretionary) Q4FY14 Q4FY15 and gold coins 2,603
Slide 23: Retail Payments Franchise
Retail Payments Franchise Key Highlights Number of Cards 143 (in lacs) 133 One of the largest issuers of debit cards Over 17 lac credit cards in circulation 17 Credit card acquisition focused on large retail 14 depositor base Debit Card Credit Card Mar '14 Mar '15 Multi Currency Forex Cards
Slide 24: Corporate Banking Franchise
Corporate Banking Franchise Presence across the Value Chain End-to-End Player Business Investment Trustee Credit Syndication Treasury Banking Banking Services • Strong franchise spread across liability and asset businesses • Adopted value generating Originate and Distribute Model • Dominant player i
Slide 25: Business Banking
Business Banking Key Highlights Current Accounts ` crores 56,108 • Strong transaction banking capabilities 48,686 • Wide range of products with customised 15% YOY offerings for various business segments 1 Mar '14 Mar '15 • Growth aided by “Club 50” and “Channel One” high-end premium products Curre
Slide 26: Business Banking
Business Banking Government Business Cash Management Business • Collection of Central Govt. taxes on behalf of • Leading CMS provider in the country CBDT and CBEC, including through e-payments • Among few banks offering host to host • Collection of state taxes & collections under E- transaction bank
Slide 27: Corporate Banking
Corporate Banking Advances Fees (` crores) (` crores) 591 126,184 538 102,238 10% YOY 1 Q4FY14 Q4FY15 (` crores) 1,793 1,803 1 Mar '14 Mar '15 23% YOY 1% YOY 1 FY14 FY15 26
Slide 28: Debt Capital Markets
Debt Capital Markets Key Highlights Placement & Syndication of Debt Issues Dominant player in placement and syndication of debt issuances ` crores Ranked No. 1 debt arranger by Prime 54,545 Database for nine months ended December 2014 30,503 79% YOY Ranked No. 1 underwriter for Rupee Denomin
Slide 29: SME Banking
SME Banking Advances^ Fees (` crores) (` crores) 137 40,651 121 35,502 13% YOY 15% YOY& Q4FY14 1 Q4FY15 (` crores) 366 320 1 Mar-14 Mar-15 14% YOY ^ Excludes non-retail agricultural loans amounting to `4,298 crores as on 31st March 2014 & `2,316 crores as on 31st March 2015 FY14 1 FY15 & SME lo
Slide 30: Rating Distribution: Corporate Banking
Rating Distribution: Corporate Banking 62% of corporate advances have rating of at least ‘A’ in March 2015 29
Slide 31: Rating Distribution: SME
Rating Distribution: SME 84% of SME advances have rating of at least ‘SME3’ in March 2015 30
Slide 32: Industry-wise Distribution (Top 10)
Industry-wise Distribution (Top 10) Outstanding as on March 31, 2015 (%)1 Rank Sectors Non-fund Fund-based Total based 1. Infrastructure2 7.18 9.79 7.88 2. Power Generation & Distribution 5.95 7.66 6.41 3. Metal & Metal Products 5.88 6.17 5.96 4. Financial Companies3 4.71 9.30 5.94 5. Engineering &
Slide 33: International Presence
International Presence Branches at Singapore, Hong Kong, DIFC – Dubai , Colombo & Shanghai Representative offices at Dubai & Abu Dhabi Axis Bank UK Limited (a wholly owned subsidiary of the Bank) Business offerings include Corporate Loans, Trade Finance Products, Debt Syndication and Liability Busin
Slide 34: Thank You
Thank You 33 A