Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q3 FY2017 Earnings Presentation
37 slides from Kotak Mahindra Bank's earnings presentation, Jan 27, 2017
Slide 1: Kotak Mahindra Bank letter to exchanges
@ kotak Kotak Mahindra Bank = Sir BEST EMPLOYERS IN INDIA Consistently in 2007, 2009 & 2081 = Study by Aan Heit 27th January 2017 The Manager The Manager Corporate Relationship, National Stock Exchange of India Ltd. BSE Limited, Exchange Plaza, 1% Floor, New Trading Ring, 5" Floor, Rotunda Building,
Slide 2: Investor Presentation Q3FY17
INVESTOR PRESENTATION Q3FY17
Slide 3: Standalone Highlights Q3FY17
Standalone Highlights Q3FY17 PAT NIM LOANS NET NPA ` 880 cr 4.49% ` 129,261 cr 1.07% [ ` 635 cr] [4.34%] [ ` 115,345 cr] [0.96%] TOTAL CAR BRANCHES CASA ASSETS 17.6%# [16.2%] ` 201,786 cr Tier I# 1,348 42.0% [ ` 182,129 cr] 16.5% [1,298] [35.3%] [15.0%] Figures in [brackets] are Q3FY16 numbers # As
Slide 4: Profit and Loss Account
Profit and Loss Account ` cr Q3FY17 Q3FY16 Q2FY17 FY16 Net Interest Income 2,050 1,766 1,995 6,901 Other Income * 910 722 831 2,612 Net Total Income 2,960 2,488 2,826 9,513 Employee Cost # 697 618 699 2,804 Other Operating Expenses $ 735 665 687 2,668 Operating Expenditure 1,432 1,283 1,386 5,472 Op
Slide 5: Income and Asset Quality
Income and Asset Quality NII (` cr) and NIM Asset Quality Restructured loans considered standard ` 146 cr 0.11% of net advances (0.12% as on Sep-16) SMA2 outstanding - ` 242 cr 0.19% of net advances (0.33% as on Sep-16) During the quarter No CDR participation No transfer to ARC No conversi
Slide 6: Segment Performance
Segment Performance Bank Segmental PBT As per RBI (` cr) Q3FY17 Q3FY16 Q2FY17 FY16 Corporate/Wholesale Banking 712 547 621 2,030 Retail Banking 322 318 264 917 Treasury, BMU* & 302 105 357 177 Corporate Centre ** Total 1,336 970 1,242 3,124 * Balance Sheet Management Unit ** Integration costs are pa
Slide 7: Advances & Investments
Advances & Investments 31-Dec-16 (` 129,261 cr) Advances ` cr 31-Dec-16 31-Dec-15 30-Sep-16 Corporate Banking 42,578 34,440 38,737 CV/CE 9,645 6,909 9,167 Agriculture Division 16,519 16,452 17,299 Business Banking 16,628 18,052 17,361 Home Loans and LAP 25,046 22,327 24,437 Small Business, PL & 15,7
Slide 8: Branches & Deposits
Branches & Deposits CASA (` cr) Highlights 1,348 branches as on 31st CASA % 42.0% 35.3% 39.0% 38.1% Dec, 2016 Plan to reach 1,400 branches by CY17 100+ branches to be relocated/ rationalised in FY17, 24 branches completed in 9MFY17 CASA and TDs below ` 5 cr constitute 76% of total deposits
Slide 9: Balance Sheet
Balance Sheet ` cr 31-Dec-16 31-Dec-15 30-Sep-16 31-Mar-16 Networth 26,568 23,307 25,611 23,959 Deposits 149,352 130,939 141,045 138,643 CA 24,217 19,609 22,004 23,282 SA 38,566 26,579 33,037 29,495 Term Deposits 86,569 84,751 86,004 85,866 Of which: TD Sweep 10,941 7,556 9,087 6,947 Borrowings 18,1
Slide 10: Geographical Presence
Geographical Presence Branches 1,348 [No./%] North 2 Received RBI 395/29% approval for 10 overseas branch in 67 8 West East DIFC, Dubai 43 419/31% 78/6% 98 1 63 54 4 South 12 1 456/34% 1 126 34 7 35 16 2 17 Branch Classification 285 83 6 108 154 No of ATMs IBU in GIFT City Dubai Rep office 32 79 2,0
Slide 11: The Demonetization Effect – Significant increase in Payment Channels
The Demonetization Effect – Significant increase in Payment Channels No. of Transactions Value Growth % Growth % Mobile Banking Net Banking Debit 188 140 108% 52% Card Growth in Growth in Mobile First Net First Credit Time Login* Time Login* 48 31 Card Mobile 50 52 Banking Debit Card Customers Inter
Slide 12: Mobile App – The Best In Class Experience
Mobile App – The Best In Class Experience Highest rated banking app (4.4) in India Source: Google Play Store >55% Recurring Deposit % sourced digitally MOBILE BANKING GROWTH >60% Term Deposit sourced 24% 119% 32% 161% % digitally Value Value Volume Volume Digital Share of (QoQ) (YoY) (QoQ) (YoY) Sal
Slide 13: Lifestyle made easy with Mobile App & Payments
Lifestyle made easy with Mobile App & Payments Payments highlights (YoY) Book your Rs.4800 Monthly transactions on Mobile crossed Movie Tickets Cr (Dec’16) 94% Payment Gateway Transactions Value growth Kaypay – Pay Through UPI 88% Payment growth Gateway transactions 45% Payment Gateway transactions
Slide 14: Digital Update – Subsidiaries
Digital Update – Subsidiaries Kotak Securities Kotak Life Insurance Mobile volumes continued to be good & touched a peak of Rs. 8,300 cr during Q3FY17 Policies sourced in Q3FY17 through >11,750 Genie (Tablet based end to end sales Brokerage Contribution of Kotak Stock Trader app to overall online bu
Slide 15: Consolidated Highlights Q3FY17
Consolidated Highlights Q3FY17 PAT CAR# LOANS BOOK VALUE PER SHARE 18.0% [16.7%] ` 1,267 cr Tier I# ` 157,801 cr ` 201.4 [ ` 945 cr] 17.2% [ ` 141,136 cr] [ ` 176.5 ] [15.8%] NIM NETWORTH NET NPA TOTAL ASSETS 4.48% ` 37,047 cr 0.92% ` 259,949 cr [4.41%] [ ` 32,349 cr] [0.85%] [ ` 229,691 cr] Figures
Slide 16: Consolidated Key Financials
Consolidated Key Financials Advances [` cr] Networth [` cr] Total Assets [` cr] PAT [` cr] 15
Slide 17: Consolidated Advances & Investments
Consolidated Advances & Investments 31-Dec-16 (` 157,801 cr) Advances & Investments ` cr 31-Dec-16 31-Dec-15 30-Sep-16 Corporate Banking 48,186 39,189 44,243 CV/CE 9,645 6,909 9,167 Agriculture 16,519 16,452 17,299 Division Business Banking 16,628 18,052 17,361 Auto loans 17,567 16,410 17,460 Home L
Slide 18: Consolidated PAT
Consolidated PAT ` cr Q3FY17 Q3FY16 Q2FY17 FY16 Kotak Mahindra Bank 880 635 813 2,090 Kotak Mahindra Prime 133 126 130 502 Kotak Mahindra Investments 48 39 53 154 Kotak Mahindra Old Mutual Life 68 60 63 251 Insurance Kotak AMC and TC 16 4 7 72 Kotak Securities 85 55 96 251 Kotak Mahindra Capital 7 6
Slide 19: Entity wise Networth
Entity wise Networth ` cr 31-Dec-16 31-Dec-15 30-Sep-16 31-Mar-16 Kotak Mahindra Bank 26,568 23,307 25,611 23,959 Kotak Mahindra Prime 4,094 3,721 3,962 3,852 Kotak Mahindra Investments 981 791 933 841 Kotak Mahindra Old Mutual Life 1,723 1,445 1,656 1,521 Insurance Kotak AMC and TC 215 149 199 173
Slide 20: Kotak Mahindra Prime
Kotak Mahindra Prime Customer Assets (` cr) & NNPA (%) ` cr Q3FY17 Q3FY16 Q2FY17 FY16 NII 263 247 247 967 Other Income 47 50 61 210 Total Income 310 297 308 1,177 Profit Before Tax 203 193 198 773 Profit After Tax 133 126 130 502 CAR (%) 18.2 ROA (%) - annualised 2.3 19
Slide 21: Kotak Mahindra Investments
Kotak Mahindra Investments Customer Assets (` cr) & NNPA (%) ` cr Q3FY17 Q3FY16 Q2FY17 FY16 NII 74 70 72 251 Other Income 11 3 21 29 Total Income 85 73 93 280 Profit Before Tax 71 60 76 236 Profit After Tax 48 39 53 154 CAR (%) 18.2 ROA (%) - annualised 3.4 20
Slide 22: Kotak Mahindra Old Mutual Life Insurance
Kotak Mahindra Old Mutual Life Insurance New Business Premium (` cr) Highlights 567 441 634 2,210 Sum assured increased by 20% YoY Lives covered grew by 37% YoY Investment Performance of 100% of Equity Funds in Quartile 1 on one, three and five year basis Conservation ratio improved to 84.8%
Slide 23: Kotak Securities
Kotak Securities Market ADV (` ‘000 cr) ADV (` cr) - KS 432 245 401 285 ` cr Q3FY17 Q3FY16 Q2FY17 FY16 Total Income 287 228 294 975 Profit Before Tax 125 83 144 381 Profit After Tax 85 55 96 251 Market Share * (%) (YTD) 2.2 2.7 2.3 2.6 *excluding BSE Derivative segment Kotak Securities services ~ 1.
Slide 24: Kotak Mahindra Capital Company
Kotak Mahindra Capital Company Advisory Equity Divestment of 3.9% stake by SBI in Initial Public Offering (IPO) of SBI Life Insurance Company Limited to KKR and Temasek PNB Housing Finance Limited ` 1,794 cr ` 3,000 cr Divestment of 49% stake by Bharat Initial Public Offering (IPO) of Forge Limited
Slide 25: Assets Under Management
Assets Under Management Dec 31, 2016 Dec 31, 2015 AUM ` 133,078 cr AUM ` 95,735 cr 24
Slide 26: Kotak Mahindra AMC & Trustee Co.
Kotak Mahindra AMC & Trustee Co. Average Assets Under Management (`cr) - Overall Average Assets Under Management (`cr) - Equity Highlights ` cr Q3FY17 Q3FY16 Q2FY17 FY16 Overall AAUM ranking moved to Profit Before Tax 24 13 11 90 No. 7 in Q3, from No. 8 in Q2 Overall Market share rose to Profit
Slide 27: Group Profile
GROUP PROFILE
Slide 28: The Journey So far…
The Journey So far… Acquisition of BSS Microfinance Private Limited – Subject to RBI approval Kotak Mahindra Bank is the 4th Largest Private Sector Bank Rating for Bank, KMP, KMIL, KS 27
Slide 29: Organizational Overview
Organizational Overview KOTAK MAHINDRA BANK Commercial Bank & Holding Company Kotak Mahindra Kotak Mahindra Kotak Investment Kotak Mahindra Kotak Securities Prime Investments Advisors Capital Company • Car Finance • Investments • Alternate Assets • Investment • Stock Broking • Other Lending • Lendin
Slide 30: Kotak Uniqueness
Kotak Uniqueness - Strong capital base: Bank’s - Ability to take advantage CRAR* - 17.6% as on 31st Dec 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
Slide 31: 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 -
Slide 32: Bank Awards & Recognition
Bank Awards & Recognition Ms. Shanti Ekambaram One of the 50 Most Powerful Women in the country Fortune India Company with Great Managers The Great Managers Award 2016 by People Business & ToI Best Private Bank India Company of the Year 2016 FinanceAsia Country Awards The Economic Times Awards 2016
Slide 33: Awards and Recognition
Awards and Recognition The Asset Triple A Country Best Broker in India Business World Award Awards 2016, India FinanceAsia Country Awards Excellence in L&D for 2016 • Best Equity House for Achievement 2015 • Best IPO, QIP BSE recognised K-Sec (FY 15-16) • Best M&A Deal • Top 5 in Equity Retail Segme
Slide 34: 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
Slide 35: 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
Slide 36: 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
Slide 37: 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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