Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q3 FY2015 Earnings Presentation
41 slides from Kotak Mahindra Bank's earnings presentation, Jan 20, 2015
Slide 1: Investor Presentation Q3FY15
Investor Presentation Q3FY15 1 Jan 20, 2015
Slide 2: Journey So Far
Journey So Far…….. Anchor Investment in ACE ARC Alternate Assets BANK KS Life Insurance Mutual 661 Branches & Fund Celebrating 29th Year of Investment Banking success IPO Auto Finance Bill Discounting 1985 1990 1992 1995 1998 2000 2001 2003 2004 2008 2010 2012 2014 In Nov-14, announced merger with I
Slide 3: Group Structure
Group Structure Kotak Mahindra Bank • Commercial Bank & Holding Company Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Capital Kotak Securities Trustee Old Mutual Life Investments Prime AMC Pension Fund Company Company Insurance * • Investmen
Slide 4: Geographical Presence
Geographical Presence Wide National Footprint ….. ….. With Multiple Points of Presence Business Dec 31, 2014 Banking 661 Car Finance 76 Life Insurance 209 Securities 1,160 Mutual Fund 79 Total 2,185 International offices situated in Abu Dhabi, Dubai, London, Mauritius, New York and Singapore 4
Slide 5: Consolidated Highlights – Q3FY15
Consolidated Highlights – Q3FY15 Book PAT Networth RoA Value (per share) ` 717 cr ` 21,299 cr 2.1% (2.0%) ` 276.0 (` 591 cr) (` 18,455 cr) (` 239.9 ) Up 21% Total NIM Loans Assets Net ` 142,784 cr 4.7% (4.9%) ` 86,058 cr (` 71,041 cr) (` 117,141 cr) NPA Up 21% 0.83% (0.92%) Announced entry in genera
Slide 6: Consolidated Key Financials
Consolidated Key Financials Advances (` cr) Networth (` cr) 86,058 21,299 71,693 19,076 18,455 71,041 66,258 15,250 21,985 5,824 3,034 1,055 Mar-03 Mar-08 Mar-13 Mar-14 Dec-13 Dec-14 Mar-03 Mar-08 Mar-13 Mar-14 Dec-13 Dec-14 Total Assets (` cr) Market Cap (` cr) 1,42,784 97,539 1,15,835 1,22,237 1,1
Slide 7: Consolidated Key Financials
Consolidated Key Financials NII* (` cr) & NIM* (%) PAT (` cr) 4,715 2,465 7.0 * Of the lending activities 5,000 4,500 2,188 2,133 6.5 4,021 3,901 6.0 4,000 6.0 3,474 1,802 3,500 5.5 5.0 5.0 3,000 5.0 2,500 1,725 991 4.5 4.9 4.9 2,000 4.7 1,500 4.0 1,000 3.5 205 500 73 3.0 - FY03 FY08 FY13 FY14 9MFY1
Slide 8: Consolidated PAT
Consolidated PAT ` cr FY03 FY08 FY11 FY12 FY13 FY14 Kotak Mahindra Bank 45 294 818 1,085 1,361 1,503 Kotak Mahindra Prime 11 101 318 385 431 491 Kotak Mahindra Investments 15 43 24 15 33 42 Kotak Securities 24 409 182 126 114 * 160 Kotak Mahindra Capital Company 31 115 52 6 17 14 Kotak Mahindra Old
Slide 9: Consolidated PAT – cont'd
Consolidated PAT – cont‟d ` cr Q2FY15 Q3FY14 Q3FY15 9MFY14 9MFY15 Kotak Mahindra Bank 445 340 465 1,095 1,339 Kotak Mahindra Prime 125 123 120 365 365 Kotak Mahindra Investments 25 11 24 26 66 Kotak Securities 66 46 60 117 193 Kotak Mahindra Capital Company (7) 7 (6) 9 (17) Kotak Mahindra Old Mutual
Slide 10: Consolidated Profit (PBT) Mix
Consolidated Profit (PBT) Mix 4% 8% 6% 10% 10% 10% 10% 7% 9% 8% 6% 7% 15% 53% 58% 82% 85% 84% 83% 85% 75% 68% 43% FY03 FY08 FY11 FY12 FY13 FY14 9MFY14 9MFY15 -26% Financing Capital Market Life Insurance & Asset Management 10
Slide 11: Consolidated Advances and Investments
Consolidated Advances and Investments ` cr Mar 31, 2014 Dec 31, 2013 Dec 31, 2014 YoY Growth Corporate Banking 17,319 19,426 25,933 33% CV/CE 5,441 6,005 5,027 (16%) Agriculture Division 10,468 9,023 10,849 20% Business Banking 5,388 5,246 6,079 16% Auto loans 13,223 13,022 14,196 9% Home Loans and
Slide 12: Entity wise Networth
Entity wise Networth ` cr Mar 31, 2014 Dec 31, 2013 Dec 31, 2014 Kotak Mahindra Bank 12,275 11,896 13,682 Kotak Mahindra Prime 2,843 2,717 3,207 Kotak Mahindra Investments 436 420 577 Kotak Securities 2,094 2,051 2,288 Kotak Mahindra Capital Company 403 397 385 Kotak Mahindra Old Mutual Life Insuran
Slide 13: Kotak Bank - Standalone Highlights – Q3FY15
Kotak Bank - Standalone Highlights – Q3FY15 PAT RoA Loans NIM ` 465 cr ` 64,641 cr 4.7% 1.9% (1.6%) (` 340 cr) (` 53,149 cr) (4.8%) Up 37% Up 22% Net CAR# CASA Branches 17.7% (19.2%) ` 23,050 cr 661 NPA (` 16,261 cr) (533) 0.97% (1.10%) Tier 1 Up 42% 16.7% (17.9%) Announced merger with ING Vysya Ban
Slide 14: Bank Profit & Loss
Bank Profit & Loss ` cr FY14 Q2FY15 Q3FY14 Q3FY15 Net Interest Income 3,720 1,039 913 1,060 Other Income 1,400 466 300 494 Net Total Income 5,120 1,505 1,213 1,554 Employee Cost 1,159 355 277 368 Other Operating Expenses 1,384 416 351 448 Operating Expenditure 2,543 771 628 816 Operating Profit 2,57
Slide 15: Bank Other Income
Bank Other Income ` cr FY14 Q2FY15 Q3FY14 Q3FY15 Fee and Services 942 321 226 328 Treasury Income 299 85 53 118 ARD Buyout Income 141 48 18 46 Others 18 12 3 2 Total 1,400 466 300 494 15
Slide 16: Bank Segmental Performance
Bank Segmental Performance As per RBI (` cr) FY14 Q2FY15 Q3FY14 Q3FY15 Corporate/Wholesale Banking 1,301 335 326 338 Retail Banking 793 210 207 240 Treasury & BMU * 176 135 (18) 130 Unallocated Income 3 - - - Total 2,273 680 515 708 * Balance Sheet Management Unit 16
Slide 17: Bank Advances & Investments
Bank Advances & Investments ` cr Mar 31, 2014 Dec 31, 2013 Dec 31, 2014 YoY Growth Corporate Banking 14,377 16,621 22,044 33% CV/CE 5,441 6,005 5,027 (16%) Agriculture Division 10,468 9,023 10,849 20% Business Banking 5,388 5,246 6,079 16% Home Loans and LAP 12,100 11,454 13,738 20% Small Business,
Slide 18: Bank Balance Sheet
Bank Balance Sheet ` cr Mar 31, 2014 Dec 31, 2013 Dec 31, 2014 YoY Growth Net Worth 12,275 11,896 13,682 15% Deposits 59,072 54,671 73,066 34% CA 8,741 7,155 10,696 49% SA 10,087 9,106 12,354 36% Certificate of Deposit 5,726 5,958 5,206 (13%) Term Deposit Others 34,518 32,452 44,810 38% Borrowings 1
Slide 19: Bank Key Ratios
Bank Key Ratios CAR & Tier I (%) – BASEL III Savings Account (` cr & % of deposits) ^ Including unaudited profits 10,087 9,106 12,354 18.8% 19.2% 17.7% 17.1% 16.7% 16.9% 17.8% 17.9% 16.7% Mar-14 Dec-13^ Dec-14^ CAR (%) Tier I (%) Mar-14 Dec-13 Dec-14 RoA (%) Asset Quality 2.0 Restructured loans cons
Slide 20: Consumer Banking Liabilities
Consumer Banking Liabilities No of Branches / ATM‟s CA grew 49% yoy and SA grew 36% yoy 1,195 1,200 1,103 1,100 1,036 600 TD sweep to total 961 1,000 848 500 deposit ratio at 7.7% 900 800 (8.0% as on Dec-13) 400 700 600 661 CASA and TDs below ` 5 cr 500 605 533 300 constitute 65% of total 400
Slide 21: Consumer Banking Asset - Bank
Consumer Banking Asset - Bank Mar 31, Dec 31, Dec 31, YoY ` cr 2014 2013 2014 Growth Home Loans and LAP 12,100 11,454 13,738 20% Small Business, Personal loans & 4,632 4,311 5,929 38% Credit Cards Home Loans andLoans Home LAP Others 162 130 130 - and69% LAP Total Consumer 16,894 15,895 19,797 25% 72
Slide 22: Commercial Banking Asset - Bank
Commercial Banking Asset - Bank Mar 31, Dec 31, Dec 31, YoY ` cr 2014 2013 2014 Growth CV/CE 5,441 6,005 5,027 (16%) CV/CE CV/CE 22% Agri Division 10,468 9,023 10,849 20% 24% Business Banking 5,388 5,246 6,079 16% Others 270 176 432 - Total Commercial 21,567 20,450 22,387 9% Banking High focus on
Slide 23: Wholesale Banking - Bank
Wholesale Banking - Bank Significant growth in corporate Funded & Non funded (` cr) loans particularly in working capital 22,457 related businesses Complete range of financial 16,804 products in offer for diverse 14,567 13,806 corporates 10,963 11,166 Large and midmarket, PSUs, MNCs, financial
Slide 24: Kotak Mahindra Prime
Kotak Mahindra Prime ` cr FY14 Q2FY15 Q3FY14 Q3FY15 NII 880 227 215 220 Other income 181 51 45 48 Total Income 1,061 278 260 268 Profit before tax 752 190 190 183 Profit after tax 491 125 123 120 ` cr Mar 31, 2014 Dec 31, 2013 Dec 31, 2014 Customer Assets 17,948 17,500 19,073 Car Advances 13,273 13,
Slide 25: Kotak Mahindra Investments
Kotak Mahindra Investments ` cr FY14 Q2FY15 Q3FY14 Q3FY15 NII 78 39 19 44 Other income 10 8 4 3 Total Income 88 47 23 47 Profit before tax 64 38 16 37 Profit after tax 42 25 11 24 ` cr Mar 31, 2014 Dec 31, 2013 Dec 31, 2014 Customer Assets 1,555 1,174 3,020 Net NPA 7 11 5 Net NPA (%) 0.5 1.0 0.2 CAR
Slide 26: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance Premium (` cr) Individual Business grew by 17% 2,702 668 599 668 Agency‟s Regular Business grew by 33% On APE (Single @ 1/10th) Basis, Share of 337 350 1,430 334 Kotak Bank for 9MFY15 is at 29% ( PY – 28%) Inforce Sum Assured has increased 25% 629 170 127 159 fr
Slide 27: Kotak Securities
Kotak Securities Market ADV (` „000 cr) ADV (` cr) - KS 7,378 6,621 174 191 3,903 3,720 122 112 50 48 32 33 13 20 13 20 FY14 Q2FY15 Q3FY14 Q3FY15 Cash Future Option FY14 Q2FY15 Q3FY14 Q3FY15 ` cr FY14 Q2FY15 Q3FY14 Q3FY15 Total income 627 224 168 223 Profit before tax 234 100 71 91 Profit after tax
Slide 28: Kotak Mahindra Capital Co.
Kotak Mahindra Capital Co. ` cr FY14 Q2FY15 Q3FY14 Q3FY15 Total income 84 11 26 13 Profit before tax 18 (7) 8 (6) Profit after tax 14 (7) 7 (6) 28
Slide 29: Asset Under Management
Asset Under Management AUM ` 59,909 cr AUM ` 71,404 cr Dec 31, 2013 Dec 31, 2014 29
Slide 30: Kotak Mahindra AMC and Trustee Co.
Kotak Mahindra AMC and Trustee Co. Average Assets Under Management ` cr 39,085 Equity flows better than current 35,689 37,763 36,228 market share. The drop in profits is largely on account of the upfront commissions on fresh asset acquisitions FY14 Q2FY15 Q3FY14 Q3FY15 ` cr # FY14 Q2FY15 Q3FY14
Slide 31: Kotak Investment Advisors
Kotak Investment Advisors RE PE Infra Corpus ` 3,922 cr Corpus ` 1,672 cr Corpus ` 558 cr 57 Investments 41 Investments Total Corpus ` 6,152 cr ` cr FY14 Q2FY15 Q3FY14 Q3FY15 Total income 83 19 23 15 Profit before tax 25 6 12 2 Profit after tax 18 4 7 2 31
Slide 32: Bank Awards and Recognition
Bank Awards and Recognition Received in FY15 Best Bank in 2014 by Business India #2 best midsized bank in the BW-PWC Best Bank Survey 2014 #3 fastest growing midsized bank in the BW-PWC Best Bank Survey 2014 Excellence in Security under 'Security in Bank' category at Data Security Council of India E
Slide 33: Bank Awards and Recognition
Bank Awards and Recognition Received in FY14 Best Medium Sized Bank of the Year Award by Businessworld Best Bank - Emerging Banks at Outlook Money Awards 2013 IR Global Ranking – one of the top 5 Best Ranked Companies for Corporate Governance Practices Kotak Junior ad, adjudged the Best Banking Ad W
Slide 34: Awards and Recognition
Awards and Recognition Asiamoney Brokers Poll 2014 Best Local Brokerage Ninth year in a row Best Brokerage House - India - The Among all domestic and foreign brokerages,ranked: Securities Advisory Asset Triple A Country Awards 2014 #2 for Most Independent Research Brokerage #2 for Best Overall Count
Slide 35: Kotak Uniqueness
Kotak Uniqueness The 5th Largest Bank by Market Capitalisation Integrated Financial ∞ Mature businesses across most financial services products Services Business ∞ Leading positions across Retail Banking, Private Banking, Insurance, Investment Banking, Model Institutional Brokerage and Asset Managem
Slide 36: 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 37: Talent…Professional Entrepreneurs at work
Talent…Professional Entrepreneurs at work Arvind Kathpalia Joined Kotak in 2003; First charge | Group Head , Operations, Technology & Finance, Kotak Mahindra Finance Current charge | President and Group Chief Risk Officer, Kotak Mahindra Bank On being a professional entrepreneur | I joined Kot
Slide 38: 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 at
Slide 39: 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 –Wholesale Banking, Kotak Mahindra Bank On being a professional entrepreneur | After two years in Investment Banking, I moved into
Slide 40: 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 41: 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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