Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q1 FY2015 Earnings Presentation
43 slides from Kotak Mahindra Bank's earnings presentation, Jul 16, 2014
Slide 1: Investor Presentation Q1FY15
Investor Presentation Q1FY15 1 Jul 16, 2014
Slide 2: Journey So Far
Journey So Far…….. Anchor Investment in ACE ARC Alternate Assets BANK KS Life Insurance Mutual 614th Branch & 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 2
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 Jun 30, 2014 Banking 614 Car Finance 74 Life Insurance 206 Securities 1,147 Mutual Fund 79 Total 2,120 International offices situated in Abu Dhabi, Dubai, London, Mauritius, New York and Singapore 4
Slide 5: Consolidated Highlights – Q1FY15
Consolidated Highlights – Q1FY15 Book PAT Networth RoA Value (per share) ` 698 cr ` 19,785 cr 2.2% (2.2%) ` 256.8 (` 627 cr) (` 17,228 cr) (` 224.5) Total NIM Loans Assets Net ` 126,743 cr 5.0% (4.8%) ` 77,076 cr (` 68,418 cr) (` 117,284 cr) NPA 0.81% (0.80%) Figures in brackets are Q1FY14 numbers 5
Slide 6: Consolidated Key Financials
Consolidated Key Financials Advances (` cr) Networth (` cr) 77,076 71,693 68,418 19,785 66,258 19,076 17,228 15,250 21,985 5,824 3,034 1,055 Mar-03 Mar-08 Mar-13 Mar-14 Jun-13 Jun-14 Mar-03 Mar-08 Mar-13 Mar-14 Jun-13 Jun-14 Total Assets (` cr) Market Cap (` cr) 68,075 1,26,743 60,165 1,22,237 1,17,
Slide 7: Consolidated Key Financials
Consolidated Key Financials NII* (` cr) & NIM* (%) PAT (` cr) * Of the lending activities 4,715 7.0 5,000 6.5 4,021 2,465 6.0 4,000 6.0 2,188 5.5 5.0 5.0 5.0 3,000 4.8 5.0 1,725 2,000 991 4.5 4.7 1,143 1,252 698 4.0 627 1,000 3.5 205 73 3.0 - FY03 FY08 FY13 FY14 Q1FY14 Q1FY15 FY03 FY08 FY13 FY14 Q1F
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 Securities 24 409 182 126 114 * 160 Kotak Mahindra Capital Company 31 115 52 6 17 14 Kotak Mahindra Old Mutual Life Insurance (42) (72) 101 203 190 2
Slide 9: Consolidated PAT - Qtrly
Consolidated PAT - Qtrly ` cr Q4FY14 Q1FY14 Q1FY15 Kotak Mahindra Bank 407 403 430 Kotak Mahindra Prime 126 117 120 Kotak Securities 44 31 68 Kotak Mahindra Capital Company 5 4 (4) Kotak Mahindra Old Mutual Life Insurance 65 71 49 Kotak Mahindra AMC & Trustee Co 4 7 - International subsidiaries 6 (1
Slide 10: Consolidated Profit (PBT) Mix
Consolidated Profit (PBT) Mix 4% 8% 7% 10% 10% 10% 9% 8% 7% 6% 6% 9% 15% 53% 58% 82% 85% 84% 85% 84% 75% 68% 43% FY03 FY08 FY11 FY12 FY13 FY14 Q1FY14 Q1FY15 -26% Financing Capital Market Life Insurance & Asset Management 10
Slide 11: Consolidated Profit and Loss
Consolidated Profit and Loss ` cr FY03 FY08 FY11 FY12 FY13 FY14 Net Interest Income 246 1725 3,305 3,928 4,813 5,674 Other Income 279 4198 5,090 4,544 5,113 5,259 Net Total Income 525 5,923 8,395 8,472 9,926 10,933 Employee Cost 104 1,198 1,522 1,602 1,774 1,915 Other Operating Expenses 255 2,893 4,
Slide 12: Consolidated Profit and Loss - Qtrly
Consolidated Profit and Loss - Qtrly ` cr Q4FY14 Q1FY14 Q1FY15 Net Interest Income 1,484 1,374 1,510 Other Income 1,750 1,356 1,871 Net Total Income 3,234 2,730 3,381 Employee Cost 514 494 564 Other Operating Expenses 1,741 1,132 1,759 Operating Expenditure 2,255 1,626 2,323 Operating Profit 979 1,1
Slide 13: Consolidated Balance Sheet
Consolidated Balance Sheet Liabilities ` cr Mar-03 Mar-08 Mar-13 Mar-14 Jun-13 Jun-14 Capital 59 345 373 385 384 385 Reserves and Surplus 996 5,479 14,877 18,691 16,844 19,400 Policyholders’ Funds 27 2,842 10,077 11,015 10,266 11,754 Deposits 203 13,692 49,389 56,930 50,802 59,693 Borrowings 2,680 1
Slide 14: Consolidated Advances and Investments
Consolidated Advances and Investments ` cr Mar 31, 2014 Jun 30, 2013 Jun 30, 2014 YoY Growth Corporate Banking 17,319 17,202 21,770 27% CV/CE 5,441 7,508 5,104 (32%) Agriculture Division 10,468 7,841 9,941 27% Business Banking 5,388 5,188 5,568 7% Auto loans 13,223 13,020 13,363 3% Home Loans and LA
Slide 15: Entity wise Networth
Entity wise Networth ` cr Mar 31, 2014 Jun 30, 2013 Jun 30, 2014 Kotak Mahindra Bank 12,275 11,165 12,714 Kotak Mahindra Prime 2,843 2,469 2,963 Kotak Securities 2,094 1,965 2,162 Kotak Mahindra Capital Company 403 392 398 Kotak Mahindra Old Mutual Life Insurance 1,042 873 1,091 Kotak Mahindra AMC &
Slide 16: Kotak Bank – Standalone Highlights – Q1FY15
Kotak Bank – Standalone Highlights – Q1FY15 PAT RoA Loans NIM ` 430 cr ` 56,922 cr 5.0% 2.0% (1.9%) (` 403 cr) (` 50,539 cr) (4.8%) Net CAR# CASA Branches 19.1% (18.8%) ` 19,037 cr 614 NPA (` 15,132 cr) (445) 0.98% (0.98%) Tier 1 18.1% (17.5%) # As per Basel III, including profits. Excluding unaudit
Slide 17: Bank Profit & Loss
Bank Profit & Loss ` cr FY14 Q4FY14 Q1FY14 Q1FY15 Net Interest Income 3,720 967 917 1,002 Other Income 1,400 340 462 400 Net Total Income 5,120 1,307 1,379 1,402 Employee Cost 1,159 316 301 348 Other Operating Expenses 1,384 384 299 388 Operating Expenditure 2,543 700 600 736 Operating Profit 2,577
Slide 18: Bank Other Income
Bank Other Income ` cr FY14 Q4FY14 Q1FY14 Q1FY15 Fee and Services 942 276 229 315 Treasury Income * 299 12 164 54 ARD Buyout Income 141 46 62 29 Others 18 6 7 2 Total 1,400 340 462 400 * Does not include provisions 18
Slide 19: Bank Segmental Performance
Bank Segmental Performance As per RBI (` cr) FY14 Q4FY14 Q1FY14 Q1FY15 Corporate/Wholesale Banking 1,301 380 288 291 Retail Banking 793 226 180 216 Treasury & BMU * 176 7 139 140 Unallocated Income 3 - 3 5 Total 2,273 613 610 652 * Balance Sheet Management Unit 19
Slide 20: Bank Advances & Investments
Bank Advances & Investments ` cr Mar 31, 2014 Jun 30, 2013 Jun 30, 2014 YoY Growth Corporate Banking 14,377 14,849 18,568 25% CV/CE 5,441 7,508 5,104 (32%) Agriculture Division 10,468 7,841 9,941 27% Business Banking 5,388 5,186 5,568 7% Home Loans and LAP 12,100 11,030 12,312 12% Small Business, Pe
Slide 21: Bank Balance Sheet
Bank Balance Sheet ` cr Mar 31, 2014 Jun 30, 2013 Jun 30, 2014 YoY Growth Net Worth 12,275 11,165 12,714 14% Deposits 59,072 52,454 61,407 17% CA 8,741 7,075 8,024 13% SA 10,087 8,057 11,013 37% Certificate of Deposit 5,726 7,789 4,701 (40%) Term Deposit Others 34,518 29,533 37,669 28% Borrowings 12
Slide 22: Bank Key Ratios
Bank Key Ratios CAR & Tier I (%) – BASEL III Savings Account (` cr & % of deposits) ^ Including unaudited profits 10,087 8,057 11,013 18.8% 18.8% 19.1% 17.9% 17.8% 17.5% 18.1% 17.1% 15.4% Mar-14 Jun-13^ Jun-14^ CAR (%) Tier I (%) Mar-14 Jun-13 Jun-14 RoA (%) Asset Quality 1.9 1.9 2.0 Restructured lo
Slide 23: Consumer Banking Liabilities
Consumer Banking Liabilities Plan to reach 1,000 No of Branches / ATM’s branches by calendar 2016 1,123 1,103 650 1,100 Savings balances increased 961 967 1,000 37% yoy 848 520 900 800 TD sweep to total 700 390 deposit ratio at 8.3% 600 (7.3% as on Jun-13) 605 614 500 260 400 438 445 CASA an
Slide 24: Consumer Banking Asset - Bank
Consumer Banking Asset - Bank Mar 31, Jun 30, Jun 30, YoY 2014 2013 2014 Growth Home Loans and LAP 12,100 11,030 12,312 12% Small Business, Personal loans & 4,632 3,823 4,723 24% Credit Cards Home Loans Others 163 46 146 and LAP Total Consumer 16,895 14,899 17,181 15% 72% Banking Focus on SENP and
Slide 25: Commercial Banking Asset - Bank
Commercial Banking Asset - Bank Mar 31, Jun 30, Jun 30, YoY 2014 2013 2014 Growth CV/CE 5,441 7,508 5,104 (32%) Agri Division 10,468 7,841 9,941 27% Business Banking 5,388 5,186 5,568 7% Others 270 92 321 Total Commercial Agri Division 21,567 20,627 20,934 Banking 47% Focus on Bharat continued wit
Slide 26: Wholesale Banking - Bank
Wholesale Banking - Bank Increased presence in large corporate groups Funded & Non funded (` cr) Largely medium term finance & working capital 18,807 Stable growth in Trade 14,567 15,013 Credits & Export Finance Traction in supply chain 10,963 10,484 11,164 financing Traction in Transactio
Slide 27: Kotak Mahindra Prime
Kotak Mahindra Prime ` cr FY14 Q4FY14 Q1FY14 Q1FY15 NII 880 240 205 216 Other income 181 43 48 51 Total Income 1061 283 253 267 Profit before tax 752 192 179 183 Profit after tax 491 126 117 120 ` cr Mar 31, 2014 Jun 30, 2013 Jun 30, 2014 Total Customer Assets 17,948 17,963 18,518 Car Advances 13,27
Slide 28: Kotak Mahindra Investments
Kotak Mahindra Investments ` cr FY14 Q4FY14 Q1FY14 Q1FY15 NII 78 27 13 30 Other income 10 4 1 6 Total Income 88 31 14 36 Profit before tax 64 24 7 26 Profit after tax 42 16 4 17 ` cr Mar 31, 2014 Jun 30, 2013 Jun 30, 2014 Total Customer Assets 1,555 860 2,383 Net NPA 7 19 6 Net NPA (%) 0.5 2.2 0.3 C
Slide 29: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance Premium (` cr) Individual Business grew by 7% Agency’s Regular Business grew by 35% 1,590 1,429 On APE (Single @ 1/10th) Basis, Share of Kotak Bank for FY14 is at 24% ( PY – 21%) 500 629 Inforce Sum Assured has increased 18% 527 from ` 2,288 bn to ` 2,700 bn 255
Slide 30: Kotak Securities
Kotak Securities Market ADV (` ‘000 cr) ADV (` cr) - KS 6,053 3,903 3,946 3,692 134 122 116 127 52 32 33 29 13 14 13 23 FY14 Q4FY14 Q1FY14 Q1FY15 FY14 Q4FY14 Q1FY14 Q1FY15 Cash Future Option ` cr FY14 Q4FY14 Q1FY14 Q1FY15 Total income 627 160 147 223 Profit before tax 234 55 48 103 Profit after tax
Slide 31: Kotak Mahindra Capital Co.
Kotak Mahindra Capital Co. Client (Equity) Transactions Size (` cr) Provided Valuation Reports to Vodafone Group for the acquisition of stake 10,140 from minority shareholders Qualified Institutions Placement (QIP) 667 Institutional Placement Programme (IPP) 418 Qualified Institutions Placement (QIP
Slide 32: Asset Under Management
Asset Under Management AUM ` 62,759 cr AUM ` 66,575 cr PMS PMS Insurance 2% Insurance 1% 17% 18% Domestic Offshore Offshore MF Debt Funds Funds 47% 16% 18% Domestic MF Alternate Debt Alternate Asset 52% Asset 8% Domestic 9% Domestic MF Equity MF Equity 7% 5% Jun 30, 2013 Jun 30, 2014 32
Slide 33: Kotak Mahindra AMC and Trustee Co.
Kotak Mahindra AMC and Trustee Co. Average Assets Under Management ` cr 37,700 35,689 35,885 33,502 31,261 FY13 FY14 Q4FY14 Q1FY14 Q1FY15 ` cr # FY14 Q4FY14 Q1FY14 Q1FY15 Total income 177 42 37 29 Profit before tax 60 5 11 - Profit after tax 41 4 7 - Average AUM (` bn) 357 335 377 359 Average AUM -
Slide 34: Kotak Investment Advisors
Kotak Investment Advisors RE PE Infra Corpus ` 4,173cr Corpus ` 1,742 cr Corpus ` 536 cr 56 Investments 41 Investments Total Corpus ` 6,451 cr ` cr FY14 Q4FY14 Q1FY14 Q1FY15 Total income 83 18 22 22 Profit before tax 25 6 1 9 Profit after tax 18 5 1 8 34
Slide 35: Bank Awards and Recognition
Bank Awards and Recognition Kotak Mahindra Bank’s Board has been adjudged as one of the Best Managed Board in the Aon Hewitt-Mint study of 2012 IR Global Ranking – one of the top 5 Best Ranked Companies for Corporate Governance Practices Kotak Mahindra Annual Report 2012 – 2013 won the following awa
Slide 36: Bank Awards and Recognition
Bank Awards and Recognition Kotak Wealth Management Best Private Bank, India by World Finance Banking Awards, 2012 Outstanding Private Bank, South Asia - Private Banker International Global Wealth Awards 2012 Winner in multiple categories by Euromoney Private Banking Survey 2014: Second Best Famil
Slide 37: Awards and Recognition
Awards and Recognition Asiamoney Brokers Poll 2013 Best Local Brokerage Eighth year in a row Among all domestic and foreign brokerages,ranked: #1 for Most Independent Research Brokerage Securities Advisory #2 for Best Overall Country Research #2 for Best Analyst Firm of the Year in India Best Invest
Slide 38: 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 39: 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 40: Talent…Professional Entrepreneurs at work
Talent…Professional Entrepreneurs at work C. Jayaram Joined Kotak in 1990; First charge | Vice President, Kotak Mahindra Finance Current charge | Joint Managing Director, Kotak Mahindra Bank On being a professional entrepreneur | When I joined Kotak, I didn’t really foresee that I would be run
Slide 41: Talent…Professional Entrepreneurs at work
Talent…Professional Entrepreneurs at work Jaimin Bhatt Joined Kotak in 1995; First charge | Proprietary Investments Current charge | President & Group CFO On being a professional entrepreneur | My initial work at Kotak was in the area of Proprietary Investments, where I worked with Narayan (S.
Slide 42: 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 43: 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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