Axis Bank Limited · NSE:AXISBANK
Axis Bank — Q3 FY2013 Earnings Presentation
34 slides from Axis Bank's earnings presentation, January 2013
Slide 1: FY 2012-13 Third Quarter Results Earnings Presentation
FY 2012-13 Third Quarter 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 December 31, 2012) Total Assets `3,18,942 crores Banking Net Advances `1,79,504 crores Operations Treasury Total Deposits `2,44,501 crores Net Profit (Q3FY13) `1,347 crores Large & Mid Infrastructure Net Profit (9MFY13) `3,624 crores Corporate Shareholders’ Funds `27,027 cro
Slide 5: Shareholding Pattern
Shareholding Pattern (As on December 31, 2012) Share Capital `427 crores Shareholders’ Funds ` 27,027 crores Book Value Per Share ` 632.71 Market Capitalisation ` 59,208 crores (as on January 14, 2013) 4
Slide 6: High Shareholder Returns
High Shareholder Returns (`) 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 Q3FY13 9MFY13 Net Profit 22% YOY 22% YOY Net Interest Income 17% YOY 19% YOY Fee Income 15% YOY 15% YOY Operating Revenue 15% YOY 19% YOY Operating Profit 15% YOY 21% YOY Net Interest Margin 3.57% 3.47% CASA1 13% YOY Total Deposits1 17% YOY Total Advances1 21% YOY 1 As on 31st
Slide 9: Highlights of Q3FY13
Highlights of Q3FY13 Retail Franchise continues to show traction • Savings Bank Deposits registered strong growth, rose 22% YOY to ` 57,521 crores • Retail Term Deposits grew 30% YOY, constituted 39% of Total Term Deposits • CASA and Retail Term Deposits constituted 64% of Total Deposits • Retail As
Slide 10: Profitability
Profitability Sustained Growth: Robust Core Revenues ` crores 22% YOY 15% YOY 15% YOY 22% YOY 21% YOY 19% YOY 9
Slide 11: Consistent Net Profit Growth
Consistent Net Profit Growth Quarterly Net Profits ` crores 10
Slide 12: Stable CASA Growth Underpins Low-Cost Deposit Franchise
Stable CASA Growth Underpins Low-Cost Deposit Franchise CASA and Retail Term Deposits (` crores) YOY 1,51,923 1,55,558 As on 31st December, 2012 Growth 1,40,394 (%) 1,39,288 1,31,342 Savings Bank 22 Current Accounts 2 CASA 13 Retail Term Deposits 30 Wholesale Deposits 15 • Share of Retail Term Depos
Slide 13: Strong CASA Franchise Supports Margin Stability
Strong CASA Franchise Supports Margin Stability CASA Deposits CASA Ratio (` crores) 95,538 97,757 91,422 86,942 86,756 Cost of Funds Net Interest Margin 12
Slide 14: Growing Net Interest Income
Growing Net Interest Income ` crores 17% YOY 19% YOY NIIs for the last 5 years (`crores) FY08 2,585 FY09 3,686 FY10 5,004 FY11 6,563 FY12 8,018 CAGR 33% 13
Slide 15: Diversified Fee Income Profile
Diversified Fee Income Profile ` crores 15% YOY 15% YOY Q3FY13 9MFY13 14
Slide 16: Stable Asset Quality
Stable Asset Quality Loan Mix Asset Quality (As on 31st December 2012) Five Year NPA trend Provision coverage of 81% as on December 2012 including prudential write-offs (90% before accumulated write-offs) Cumulative restructured assets were `4,257 crores (2.06% of gross customer assets) as on De
Slide 17: Efficient Use Of Capital
Efficient Use Of Capital * Includes unaudited profits 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 and ATMs
Well distributed, countrywide network of Branches and ATMs Multiple channels drive business growth Expanding footprint across centres Extensive use of technology to provide services One of the largest ATM networks in the country Branches Domestic Branch network1 983 1,390 1,622 1,787 Call AT
Slide 20: Retail Liabilities
Retail Liabilities Savings Bank Deposits Retail Deposits* (% of Total Deposits) (` crores) 22% YOY Retail Term Deposits (RTD) Share of RTD as % of Term Deposits (` crores) 30% YOY Retail Deposits* constitutes 47% of Total Deposits * Retail Deposits include Savings Bank and Retail Term Deposits 1
Slide 21: Retail Assets
Retail Assets Key Highlights Composition of Retail Advances Retail assets constitute 27% of the Bank’s total advances in Dec’12 against 22% in Dec’11 Secured loans make up 87% of retail loans Home Loans account for 68% of retail loans 117 Asset Sales Centres (ASCs) with standardized appraisa
Slide 22: Retail Fees
Retail Fees (` crores) Key Highlights Focus on cross-selling to existing customers key driver for growth 35% YOY Third-party products sold include mutual funds, insurance, on-line broking, portfolio management services (non-discretionary) and gold coins. Healthy retail asset growth providing
Slide 23: Retail Payments Business
Retail Payments Business Key Highlights Number of Cards (in lacs) One of the largest issuers of debit cards Over 10 lac credit cards in circulation Credit card acquisition focused on large retail depositor base Travel Currency Cards in 11 foreign currencies Card Spends – USD, Euro, GBP, AUD,
Slide 24: Corporate Banking Franchise
Corporate Banking Franchise Presence across the Value Chain End to End Player Investment Business Banking Credit Syndication Treasury Trustee Services Banking • Strong franchise spread across liability and asset businesses • Adopted value generating Originate and Distribute Model • Dominant player i
Slide 25: Business Banking
Business Banking Current Accounts Key Highlights ` crores • Strong Transaction Banking capabilities driving growth 2% YOY • Wide range of products with customised offerings for various business segments • Growth aided by “Club 50” and “Channel One” high-end premium products Current A/c Deposits (`
Slide 26: Business Banking
Business Banking Government Business Cash Management Business • Collection of Central Government taxes on • Leading CMS provider in the country behalf of CBDT and CBEC, including • Among few banks offering host to host through e-payments transaction banking facility • Collection of local taxes on be
Slide 27: Large and Mid-Corporate Banking
Large and Mid-Corporate Banking Advances Fees (` crores) (` crores) 3% YOY (` crores) 3% YOY 12% YOY 26
Slide 28: Debt Capital Markets
Debt Capital Markets Key Highlights Placement & Syndication of Debt Issues ` crores Dominant player in placement and syndication of debt issuances Ranked Best Domestic Debt House – India 2012 by Asset Triple A Country Awards Ranked Best India Bond House – 2012 by 15% YOY IFR Asia Ranked No
Slide 29: SME and Agriculture Business
SME and Agriculture Business ` crores 25,295 20,692 11,561 10,700 22% YOY 8% YOY 28
Slide 30: Rating Distribution: LC & MC
Rating Distribution: LC & MC 61% of corporate advances have rating of at least ‘A’ in December 2012 29
Slide 31: Rating Distribution: SME
Rating Distribution: SME 82% of SME advances have rating of at least ‘SME3’ in December 2012 30
Slide 32: Industry-wise Distribution (Top 10)
Industry-wise Distribution (Top 10) Outstanding as on December 31, 2012 (%)1 Rank Sectors Non-fund Fund-based Total based 1. Power Generation & Distribution 5.11 19.01 9.83 2. Infrastructure2 8.17 11.35 9.25 3. Financial Companies3 6.92 8.48 7.45 4. Engineering & Electronics 3.54 10.86 6.03 5. Metal
Slide 33: International Presence
International Presence Branches at Singapore, Hong Kong, DIFC – Dubai & Colombo Representative offices at Shanghai, Dubai & Abu Dhabi Axis U.K. Limited incorporated as a subsidiary Business offerings include Corporate Loans, Trade Finance Products, Debt Syndication and Liability Business Total Asset
Slide 34: Thank You
Thank You 33 A