Axis Bank Limited · NSE:AXISBANK
Axis Bank — Q3 FY2011 Earnings Presentation
34 slides from Axis Bank's earnings presentation, January 2011
Slide 1: FY 2010-11 Third Quarter Results Investor Presentation
FY 2010-11 2010 11 Third Quarter Results Investor Presentation
Slide 2: Performance Highlights
Performance Highlights Q3 FY11 9M FY11 Net Profit 36% YOY 35% YOY Net Interest Income 28% YOY 37% YOY Fee Income 21% YOY 19% YOY Operating Revenue 23% YOY 23% YOY Operating Profit 21% YOY 19% YOY Net Interest Margin 3.81% 3.74% Cost of Funds 4.79% 4.73% 1
Slide 3: Shareholder Returns
Shareholder Returns FY06 FY07 FY08 FY09 FY10 9M FY11 1 67 1.67 454.32 1.63 21.84 395.99 19.93 19.89 1.44 18.44 18.90 1.18 1.24 16 09 16.09 1.10 284.50 245.14 120.50 103.06 Book Value per Share (Rs) Return on Equity (%) Return on Assets (%) 2
Slide 4: Interpretation of Q3 FY11 Performance
Interpretation of Q3 FY11 Performance • Growth in the Bank’s core businesses – Total Net Advances grew 46% yoy to `1,23,547 crores grew 21% yyoyy to `59,623 – Total Investments g , crores – Total Assets registered a 37% yoy growth, rising to `2,06,706 crores – Fees grew by 21% yoy, rising to `968 cr
Slide 5: Profitability
Profitability Sustained Growth: Robust Core Revenues Q3 FY10 Q3 FY11 9M FY10 9M FY11 Amounts in ` crores Amounts in ` crores 8,044 7 605 7,605 2,881 2,746 6,557 2,337 5,837 2,168 4,156 1,524 1,205 3,137 891 2 368 2,368 656 1,750 Net Profit Core Operating Core Net Profit Core Operating Core Operating
Slide 6: Consistent Net Profit Growth
Consistent Net Profit Growth FY06 FY07 FY08 FY09 FY10 FY11 Amounts in ` crores 891 765 742 735 656 582 562 62 532 501 403 361 330 307 228 212 175 185 142 152 121 132 93 109 Quarter 1 Q Quarter 2 Q Quarter 3 Q Quarter 4 Q Quarterly Net Profits 5
Slide 7: Net Interest Margin and Cost of Funds
Net Interest Margin and Cost of Funds Net Interest Margin Cost of Funds 4 09% 4.09% 4 83% 4.83% 4.79% 4.00% 4.75% 3.81% 4 61% 4.61% 3.71% 3.68% 4.54% Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 NIMs for the last 5 years FY06 2 85% 2.85% FY07 2.74% FY08 3.47% FY09
Slide 8: Growing Net Interest Income
Growing Net Interest Income Q3 FY10 Q3 FY11 9M FY10 9M FY11 Amounts in ` crores Amounts in ` crores 1,733 4,862 1 349 1,349 3,544 ↑ 28% YOY ↑ 37% YOY NIIs for the last 5 years (` crores) FY06 1,078 FY07 1 468 1,468 FY08 2,585 FY09 3,686 0 FY10 5,004 5,00 7
Slide 9: Growing Demand Deposits
Growing Demand Deposits YOY Growth in Daily Average Demand and Term Deposits Deposit Q3 FY11 9M FY11 Savings 35% 38% Current 38% 34% Total Demand Deposits 36% 37% Total Deposits 39% 35% 65,931 (42%) Demand Deposits ↑ 27% YOY 51,909 (46%) 89,880 Term Deposits ↑ 45% YOY 61 944 61,944 (58%) (54%) 31st
Slide 10: Fees
Fees Q3 FY10 Q3 FY11 9M FY10 9M FY11 Amounts in ` crores Amounts in ` crores 968 2,559 800 2,145 ↑ 21% YOY ↑ 19% YOY Fees for the last 5 years (` crores) FY06 558 FY07 890 FY08 1,495 FY09 2,447 FY10 2,925 9
Slide 11: Fee Income Composition
352 Fee Income Composition Q3 FY10 Q3 FY11 285 258 Amounts in ` crores 235 162 129 100 95 62 58 16 15 Large & Mid Treasury Agri & SME Business Banking Capital Markets Retail Business Corporate Credit Banking ↑ 37% YOY ↑ 25% YOY ↓ 6% YOY ↓ 5% YOY ↓ 5% YOY ↑ 21% YOY 878 9M FY10 9M FY11 Amounts in ` cr
Slide 12: Trading Profits
Trading Profits Trading Profit Volume % of Operating Revenue Amounts in ` crores 170 7% 135 5% Q3 FY10 Q3 FY11 Q3 FY10 Q3 FY11 ↓ 21% YOY 720 11% 439 5% 9M FY10 9M FY11 9M FY10 9M FY11 ↓ 39% YOY 11
Slide 13: Stressed Assets and Net NPA (%)
Stressed Assets and Net NPA (%) Gross NPAs Net NPAs Net NPA (%) Amounts in ` crores 1,483 1,500 0.90% 1,341 , 1,362 1 318 1,318 1,300 0.80% 1,174 0.70% 1,100 Net NPA as at year-end 0 60% FY06 0.60% 0 75% 0.75% 900 FY07 0.61% 0.46% 0.50% 700 FY08 0.36% 0.36% 0 35% 0.35% 0 40% FY09 0.40% 0 35% 0.35% 0
Slide 14: Business Overview
BUSINESS OVERVIEW A
Slide 15: Network
Network Increasing Reach 734 1,120 643 983 515 792 644 405 544 332 441 258 Branches + Extension Counters * Centres Covered 5,303 4 293 4,293 Branch Demographics (Domestic) 3,595 Branches Extn. Counters Metro 310 6 2,764 2,341 Urban 404 2 1,891 Semi-urban 314 - Rural 84 - Total 1,112 8 ATMs Mar'06 Ma
Slide 16: Large and Mid Corporate Banking
Large and Mid Corporate Banking • Focus on quality of credit assets with stress on corporates having – Global competitive advantage in their businesses – Good corporate governance and management practices • Business Segments – Large Corporates – Mid Corporates – Structured Products • Rigorous and re
Slide 17: Distribution of Ratings
Distribution of Ratings (Large and Mid Corporate) 73% of corporate advances have rating of at least ‘A’ as at Dec’10 6% 10% 9% 8% 8% 19% 18% 19% 22% 24% AAA AA A 49% 47% 46% 44% 41% BBB <BBB or Unrated 22% 22% 23% 23% 25% 4% 3% 3% 3% 2% Dec'09 Mar'10 Jun'10 Sep'10 Dec'10 16
Slide 18: SME and Agri Business
SME and Agri Business 31st Dec'09 31st Dec'10 17,053 Amounts in ` crores 15,582 10 772 10,772 8,688 SME Advances Agricultural Advances ↑ 9% YOY ↑ 24% YOY SME Centres 25 26 Agri Clusters 56 69 • Specialised SME Centres for SME • Specialised Clusters for Agricultural lending, appraisals, sanctions and
Slide 19: Distribution of Ratings: SME
Distribution of Ratings: SME 78% of SME advances have rating of at least ‘SME3’ SME3 as at Dec’10 Dec 10 1% 2% 2% 2% 2% 11% 13% 15% 17% 17% SME 1 62% SME 2 62% 60% 60% 59% SME 3 SME 4 SME 5-8 17% 13% 13% 12% 12% 9% 10% 9% 9% 10% Dec'09 Mar-10 Jun-10 Sep'10 Dec'10 18
Slide 20: Industry-wise Distribution of Corporate Advances
Industry-wise Distribution of Corporate Advances Across Large Corporate, Mid Corporate, SME & Corporate Agri Outstanding as on 31st Dec’10 (%) Rank Sectors Non-fund Total Fund based Fund-based based 1. Financial Companies* 12.72 13.32 11.69 2. Infrastructure Construction 11.63 9.49 15.32 3. Power Ge
Slide 21: Business Banking
Business Banking Cash Management Services 31st Dec'09 31st Dec'10 7,789 • Collection of Central Government taxes on behalf of CBDT and CBEC, including through e-payments 6 067 6,067 • Collection of State Government taxes on behalf of 8 State Governments and UT • Collections and payments for Central
Slide 22: Business Banking
Business Banking Current Accounts Growth 31st Dec'09 31st Dec'10 Amounts in ` crores 26,799 Current Account deposits 22,282 for the last 5 years (as on 31st March) Mar’06 7,970 Mar’07 11,304 M ’08 Mar’08 20 045 20,045 Mar’09 24,822 Mar’10 32,168 C Current tAAccountt D Deposits it ↑ 20% YOY • Wide ra
Slide 23: Treasury
Treasury 144,655 47.3 79.2 Derivatives Trading Q3 FY10 36.6 107,457 Q3 FY11 -2.3 30 2 30.2 Amounts in ` crores Forex Turnover Forex Trading SLR & Money Market Trading ↑35% YOY ↑ 29% YOY -17.0 ↓ 62%YOY 123.0 380.4 376,090 9M FY10 101.4 9M FY11 289,208 Derivatives Trading Amounts in ` crores 92.4 -36.
Slide 24: Capital Markets
Capital Markets Q3 FY10 Q3 FY11 9M FY10 9M FY11 Amounts in ` crores Amounts in ` crores 20,330 69,127 13,923 44,234 ↑ 46% YOY Placement & Syndications ↑ 56% YOY (Debentures / Bonds) • A dominant player in placement and syndication of debt issues • Ranked No. 1 Debt Arranger by Prime Database for the
Slide 25: Savings Bank Growth
Savings Bank Growth 31st Dec'09 31st Dec'10 Savings Bank deposits for the last 5 years (as on 31st March) Amounts in ` crores Mar’06 8,065 61,454 Mar’07 12,126 Mar’08 19,982 51,324 Mar’09 25,822 Mar’10 33,862 39 132 39,132 29,628 Savings Bank deposit growth led by: • Wide Network - Branch and ATM Ch
Slide 26: Third Party Products Business
Third Party Products Business Q3 FY10 Q3 FY11 9M FY10 9M FY11 Amounts in ` crores ou ts in ` c Amounts crores o es 63 64 • Focus on cross-selling to existing 154 customers to generate fee income 125 • Third-party products sold include mutual funds, insurance, on-line broking, portfolio management se
Slide 27: Retail Assets
Retail Assets 31st Dec'09 31st Dec'10 Amounts in ` crores 1,443,079 25,204 • Retail Assets constitute 20% 1,022,938 of the bank’s total 18 900 18,900 advances, as compared to 22% as at 31st Dec’09. • Growth driven through 58 Retail Asset Centres (RACs) Portfolio Size No of Accounts ↑ 33% YOY ↑ 41% Y
Slide 28: Composition of Retail Assets
Composition of Retail Assets Product wise composition of Retail Assets portfolio (31st Dec Product-wise Dec’10) 10) Cards Non-Schematic 2% 4% Personal Loans 16% Housing Loans Auto loans 67% 11% % 27
Slide 29: Cards, Retail Forex & Remittances Business
Cards, Retail Forex & Remittances Business Q3 FY10 Q3 FY11 9M FY10 9M FY11 Amounts in ` crores Amounts in ` crores 90 225 58 153 ↑ 55% YOY O ↑ 47% % YOY O Fee Income • Issuance – Over 6,11,000 Credit Cards in force till 31st Dec‘10 – 1st Indian Bank to launch Travel Currency Cards in 9 currencies -U
Slide 30: ATM Channel
ATM Channel Dec'09 Dec 09 Dec'10 Dec 10 7850 348 96 6294 290 85 Intl. debit card base (lakhs) Monthly Cash Withdrawals No. of Monthly Transactions ` crores (lakhs) ↑ 13% YOY ↑ 25% YOY ↑ 20%YOY • Pioneer in ATM sharing arrangements • Value added services such as bill payments, mutual fund investments
Slide 31: International Presence
International Presence • Branches at Singapore, Hong Kong and DIFC, Dubai • Representative offices at Shanghai and Dubai • Total assets overseas amounted to US$ 4 4.59 59 billion as compared to US$ 2.51 billion as at end Dec’09, a growth of 83% yoy • Corporate C t BBanking, ki T Trade d Fi Finance p
Slide 32: Shareholding
Shareholding Shareholding pattern (Dec’10) SUUTI • Share Capital - ` 409.9 crores 23.72% • Shareholders’ Funds - ` 18,622 crores Others 30.14% • Book Value per share - ` 454.32 LIC 9.58% • Market Price as on 14/01/11 - ` 1,201.60 FIIs • Market Cap as on 14/01/11 - ` 49,254 crores 36.56% (US$ 10 10.8
Slide 33: 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 34: Thank You
AXIS BANK 2009 - 10 Thank You ee , AXIS BANK