Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Investor Presentation (2011)
34 slides from Kotak Mahindra Bank's investor presentation, 2011
Slide 1: Group Overview 2011
Group Overview 2011 CZ kotak
Slide 2: Group milestones timeline
| @kotak: f@) 1990 52004 2003 Became the first Altemate Assels NBFC to convert 3 into a commercial Started Bill Discounting Investment Banking Life Insurance KS becomes Subsidiary
Slide 3: Geographical Presence
Geographical Presence Wide National Footprint… …with Multiple Points of Presence Business Branch Mar 11 Banking 321 Car Finance 57 Life Insurance 202 Securities 1,413 Mutual Fund 84 Total 2,077 ~~8.8 8.8mn mncustomer customeraccounts accounts ~~20,000 20,000employees employees 3
Slide 4: Group Structure
Group Structure Note: •All companies are fully owned subsidiaries excepting KM Old Mutual which is held 74% 4
Slide 5: 25 yrs.. A snapshot
25 yrs.. A snapshot PAT Advances 1,600 1,567 42,000 41,242 35,000 1,200 28,000 (` cr) (` cr) 800 21,000 538 15,573 14,000 400 7,000 73 3,034 22 36 754 35 - - FY 92 FY 97 FY 03 FY 07 FY 11 FY 92 FY 97 FY 03 FY 07 FY 11 Networth Market Capitalization 35,000 12,000 10,963 30,580 30,000 10,000 25,000 8,
Slide 6: Financial Summary
Financial Summary 6
Slide 7: Highlights Consolidated – FY11
Highlights Consolidated – FY11 ∞ PAT for FY11 up 20% to ` 1,567 cr, 5 years CAGR of 36% ∞ Advances up 39% to ` 41,242 cr ∞ NIM at 5.6% ∞ Capital Adequacy 19.5% ∞ Net NPA 0.43%* ∞ Asset managed / advised at ` 47,850 cr * Excl acquired stressed assets 7
Slide 8: Consolidated PAT
Consolidated PAT ` cr FY07 FY08 FY09 FY10 FY11 Kotak Mahindra Bank 141 294 276 561 818 Kotak Mahindra Prime 57 101 157 166 318 Kotak Mahindra Investments 27 43 14 34 24 Kotak Securities 256 409 107 260 182 Kotak Mahindra Capital Company 68 115 13 24 52 Kotak Mahindra Old Mutual Life Insurance (58) (
Slide 9: Consolidated – Profit Mix
Consolidated – Profit Mix PBT Mix ` cr 773 1,424 1,033 1,883 2,274 6% 10% 13% 14% 4% 11% 2% 4% 15% 18% 23% 59% 53% 75% 67% 59% 37% 43% FY07 -7% FY08 -6% FY09 FY10 FY11 Financing Capital Market Insurance Asset Managem ent 9
Slide 10: Consolidated PAT - Quarterly
Consolidated PAT - Quarterly ` cr Q4FY10 Q3FY11 Q4FY11 Kotak Mahindra Bank 203 188 249 Kotak Mahindra Prime 58 94 87 Kotak Mahindra Investments 7 3 6 Kotak Securities 51 47 36 Kotak Mahindra Capital Company 13 8 30 Kotak Mahindra Old Mutual Life Insurance 44 24 71 Kotak Mahindra AMC & Trustee Compan
Slide 11: Consolidated - Ratios
Consolidated - Ratios FY07 FY08 FY09 FY10 FY11 Advances (` cr) 15,573 21,985 22,498 29,724 41,242 Total Assets (` cr) 28,631 40,597 40,234 55,115 73,681 AUM (` cr) 23,570 36,507 33,909 45,224 47,850 NIM 5.2% 5.6% 6.1% 6.1% 5.6% Book value per share (`) 49.6 84.5 94.3 113.6 148.8 Group CAR 15.6% 20.2
Slide 12: Standalone Bank Highlights – FY11
Standalone Bank Highlights – FY11 ∞ PAT for FY11 up 46% to ` 818 cr; 5 years CAGR of 47% ∞ NII up 21% to ` 2,245 cr ∞ Capital Adequacy 19.9% ; Tier I 18.0% ∞ Deposits up 23% at ` 29,261 cr; CASA at 30% ∞ Advances up 41% to ` 29,329 cr – Net NPA – 0.5% * – Restructured assets ` 60 cr – Provision Cove
Slide 13: Financial results – Bank Standalone
Financial results – Bank Standalone ` cr Q4FY10 Q4FY11 FY10 FY11 Net Interest Income 526 622 1,858 2,245 Other Income 252 191 628 633 Net Total Income 778 813 2,486 2,878 Employee Cost 174 218 556 751 Other Operating Expenses 168 227 633 802 Operating Expenditure 342 445 1,189 1.553 Operating Profit
Slide 14: Standalone - Ratios
Standalone - Ratios FY07 FY08 FY09 FY10 FY11 Deposits (` cr) 11,000 16,424 15,644 23,886 29,261 Advances (` cr) 10,924 15,552 16,625 20,775 29,329 Total Assets (` cr) 19,915 28,312 28,712 37,436 50,850 CAR % 13.5% 18.7% 20.0% 18.4% 19.9% Tier I 8.8% 14.5% 16.1% 15.4% 18.0% Net NPA (%) * 0.18% 0.38%
Slide 15: Business Overview
Business Overview 15
Slide 16: Integrated Financial Services
Integrated Financial Services Financing Asset Life Insurance Management Capital Markets 16
Slide 17: Financing Business
Financing Business NII & NIM PAT 3,500 8.0% 1,200 CAGR 40% CAGR 47% 3,000 1,000 2,500 6.0% 800 2,000 (` cr) (` cr) 4.0% 1,500 600 1,000 400 2.0% 500 200 - 0.0% - FY07 FY08 FY09 FY10 FY11 FY07 FY08 FY09 FY10 FY11 NII NIM Net NPA Advances 1.4% 50,000 CAGR 32% 1.2% 40,000 1.0% 30,000 (` cr) 0.8% 20,000
Slide 18: Consumer Banking - Advances
Consumer Banking - Advances ` cr 7,357 10,600 10,876 13,074 17,170 1% 1% 4% 4% 3% ∞∞ Focus Focuson onSENP SENP 8% 27% 22% 10% ∞∞ Continue ContinueFocus Focus 29% on onAuto AutoSector Sector ∞∞ Mortgage Mortgage- - 36% 41% healthy healthygrowth growth 24% over 25% 30% overthe theyears; years; present
Slide 19: Consumer Banking - Liabilities
Consumer Banking - Liabilities Number of Branches and ATMs 350 800 710 ∞∞ 500 500Branches BranchesininCY13 CY13 300 700 ∞∞ Increased Increasedcross crosssell sellof of 600 asset 250 492 assetproducts products 387 500 ∞∞ Added Addedclose closeto to500,000 500,000 Branches 200 313 customer accounts AT
Slide 20: Commercial Banking
Commercial Banking ` cr 3,900 6,992 7,028 9,168 12,988 6% 14% 8% 14% ∞∞ Renewed Renewedgrowth growth 18% in 17% inCE/CV CE/CV ∞∞ Consistent Consistent 24% 34% growth growthin inAgri Agri 33% 34% ∞∞ Priority PrioritySector Sector target targetmet met consistently consistently 77% ∞∞ Limited Limited 6
Slide 21: Wholesale Banking
Wholesale Banking ∞ Added > 250 Customers in FY11 Funded and Non Funded ` cr 11,084 ∞ Continued focus on Trade Finance and Transaction Banking 7,482 6,500 – Import/Export financing – Foreign Exchange 4,316 4,393 4,594 3,092 – Cash Management 1,819 1,239 400 ∞ Continue strong presence in debt FY07 FY
Slide 22: Life Insurance
Life Insurance Gross Premium ` cr 972 1,691 2,343 2,868 2,976 ∞∞ Capital Capitalefficiency efficiency among amongthe thehighest highestin in the theindustry industry ∞∞ AUM AUM~~``8,300 8,300crcr 1,534 1,722 1,000 ∞∞ Solvency Solvencyratio ratio––2.7 2.7 585 14 8 221 ∞∞ FY12 FY12another anotheryear
Slide 23: Life Insurance
Life Insurance Sum Assured PAT 120 120 100 80 (` cr '000) 80 40 (` Cr) 60 - 40 20 (40) - (80) FY 07 FY 08 FY 09 FY10 FY11 FY 07 FY 08 FY 09 FY10 FY11 Number of Branches Capital 250 600 200 150 400 (No.) (` Cr) 100 200 50 0 0 FY 07 FY 08 FY 09 FY10 FY11 FY 07 FY 08 FY 09 FY10 FY11 23
Slide 24: Broking
Broking Market ADV ` cr (‘000) ADV ` cr (KS) 5,300 140 4,600 120 3,900 3,700 100 3,300 78 80 7 35 60 16 4 40 45 38 39 29 20 26 20 16 23 19 12 - FY07 FY08 FY09 FY10 FY11 FY07 FY08 FY09 FY10 FY11 Cash Future Option Branches & Franchisee 1,413 ∞∞ Market Marketvolume volumeshift shiftto toOptions Option
Slide 25: Investment Banking
Investment Banking #1 Book Running Lead Manager in Equity Offerings (IPOs + FPOs') between FY07 – FY11 KOTAK 1,032 55 deals I-SEC 797 44 deals 17 deals ∞∞ No No11ininlead leadmanaging managingequity equity ENAM offerings offerings(IPO+FPO) (IPO+FPO)for forcumulative 780 57 deals cumulative CITIGROUP
Slide 26: Investment Banking
Investment Banking Client Transaction Size (USD mn) Coal India Limited Initial Public Offering 3,434 Lead Manager to Debt Issue 1,444 Adani Enterprises Limited Qualified Institutional Placement 870 Follow-on Public Offering 766 Buyback of equity shares 551 Indian Depository Receipts 518 Initial Publ
Slide 27: Asset Management
Asset Management Segment Summary ∞ ` 47,850 cr of assets managed / advised through mutual funds, insurance, portfolio management, alternate assets & offshore funds FY10 – ` 45,224 cr FY11 – ` 47,850 cr Insurance PMS 5% Insurance PMS 4% 14% Dom estic 17% Domestic MF Debt MF Debt 42% 42% Offshore Fund
Slide 28: Mutual Fund
Mutual Fund Asset Under Management Industry - ` cr (‘000) 614 592 505 417 326 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 ∞∞ Close Closeto to10 10lac lacfolios folios ∞∞ 84 84branches branches Kotak MF - ` cr 24,071 24,455 ∞∞ Regulatory Regulatorychallenges challenges 16,136 15,979 12,125 Mar 07 Mar 08 Mar 0
Slide 29: Alternate Assets
Alternate Assets Realty Funds ∞∞ KIREF KIREF- -I;I;first firstrealty realtyfund fundin inIndia Indiato to return return100% 100%of ofcapital capitalto toinvestors investors ∞∞ Corpus managed- -``3,146 Corpusmanaged 3,146crcr ∞∞ 40 40Investments; Investments;44full fullexits, exits,99partial partiale
Slide 30: Bank Awards & Recognition
Bank Awards & Recognition ∞ Awarded Hewitt Best Employers in India 2011 & 2009, only Bank to be in top 25 ∞ Best companies to work for –2010 & 2009 – by Great places to work Institute India ∞ Ranked No. 2 in India - companies with “Best Corporate Governance Practices” - IR Global Rankings 2010 ∞ Ran
Slide 31: Awards & Recognition
Awards & Recognition ∞ Lipper Fund Award 2010 for Kotak Bond Regular – ‘Best Fund over 10 years Bond Indian Rupee’ ∞ Best Debt Fund House of the year 2009 Outlook Money NDTV Profit Awards 2009 & 2010 ∞ ∞ Best Best Broker Broker in in India India 2010 2010 2010: Best Equity House & Best Investment Ba
Slide 32: 25 yrs.. A snapshot
25 yrs.. A snapshot PAT Networth 1,800 12,000 11,004 1,567 1,600 1,400 10,000 1,200 8,000 (` cr) 1,000 (` cr) 800 6,000 538 600 4,000 3,233 400 200 73 2,000 1,056 22 36 465 41 - - FY 92 FY 97 FY 03 FY 07 FY 11 FY 92 FY 97 FY 03 FY 07 FY 11 Market Capitalization 35,000 30,580 30,000 ``100,000 100,000
Slide 33: Group milestones timeline
| @kotak: f@) 1990 52004 2003 Became the first Altemate Assels NBFC to convert 3 into a commercial Started Bill Discounting Investment Banking Life Insurance KS becomes Subsidiary 33
Slide 34: 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