Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q3 FY2012 Earnings Presentation
41 slides from Kotak Mahindra Bank's earnings presentation, Jan 23, 2012
Slide 1: Investor Presentation Q3 FY12
i INVESTOR PRESENTATION Q3 FY12 Jan 23, 2012
Slide 2: Company history timeline
€) kotak’ Ii 1990 Car Finance © g2008 2003 Became the first NBFC to convert into a commercial bank 2008 ARC 1985 Started Bill Discounting Investment Banking Yo Ooo Of Life Insurance KS becomes Subsidiary
Slide 3: Geographical Presence
Geographical Presence Wide National Footprint … ... With Multiple Points of Presence Business Branches (Dec, 11) Banking 330 Car Finance 68 Life Insurance 204 Securities 1,416 Mutual Fund 83 Total 2,101 International offices situated in London, New York, California, Dubai, Abu Dhabi, Bahrain, Maurit
Slide 4: 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 Kotak Securities Trustee Old Mutual Life Capital Company Investments Prime AMC Pension Fund Company Insurance * •Investment
Slide 5: Financial Summary
FINANCIAL SUMMARY @ kotak’
Slide 6: Consolidated Highlights (Q3FY12)
Consolidated Highlights (Q3FY12) PAT Loans Net NIM ` 463 cr ` 52,847 cr 4.7% (` 384 cr) ( ` 40,096 cr) NPA * (5.0%) Up 21% yoy Up 32% yoy 0.4% (0.5%) CAR** Tier 1 ** CASA 17.5% (20.4%) 15.6% (18.2%) ` 10,615 cr (` 7,868 cr) (as per Basel II) (as per Basel II) 27.7% of total deposits * Excluding acqu
Slide 7: Consolidated Advances and Investments
Consolidated Advances and Investments ` cr FY 11 Q2FY12 Q3FY11 Q3FY12 Commercial vehicles & Construction equipments 6,251 7,351 5,548 7,540 Agriculture Finance 4,220 4,248 3,753 4,894 Auto loans 8,550 9,858 7,993 9,771 Mortgage Loans 6,877 7,528 6,626 7,935 Personal loans 1,307 1,501 1,227 1,689 Cor
Slide 8: Consolidated Revenue
Consolidated Revenue ` cr FY11 9MFY11 9MFY12 Q2FY12 Q3FY11 Q3FY12 Financing activities 4,551 3,247 4,797 1,587 1,233 1,765 Fee Income* 1,452 1,069 1,022 360 347 338 Premium Income 2,940 1,877 1,795 664 605 631 Treasury & Investments – Others ** 1,530 1,101 1,427 461 419 539 Others 239 163 197 41 53
Slide 9: Consolidated PAT
Consolidated PAT ` cr FY07 FY08 FY09 FY10 FY11 9MFY11 9MFY12 Kotak Mahindra Bank 141 294 276 561 818 570 788 Kotak Mahindra Prime 57 101 157 166 318 231 288 Kotak Securities 256 409 107 260 182 146 76 Kotak Mahindra Capital Company 68 115 13 24 52 22 1 Kotak Mahindra Old Mutual Life (58) (72) 14 69
Slide 10: Consolidated PAT – Quarterly
Consolidated PAT – Quarterly ` cr FY11 Q2FY12 Q3FY11 Q3FY12 Kotak Mahindra Bank 818 260 188 276 Kotak Mahindra Prime 318 90 94 104 Kotak Securities 182 29 47 24 Kotak Mahindra Capital Company 52 (4) 8 4 Kotak Mahindra Old Mutual Life Insurance 101 53 24 47 Kotak Mahindra AMC & Trustee Co 17 7 7 3 In
Slide 11: Consolidated PAT – Quarterly Trend
Consolidated PAT – Quarterly Trend 600 500 463 384 400 364 331 (` cr ) 300 170 131 200 100 ‐ 2007 2008 2009 2,010 2011 2012 Q1 Q2 Q3 Q4 ` cr 2007 2008 2009 2010 2011 2012 Q1 104 146 150 257 328 416 Q2 94 242 161 300 364 433 Q3 170 364 131 331 384 463 Q4 170 240 211 419 491 11
Slide 12: Consolidated Profit (PBT) Mix
Consolidated Profit (PBT) Mix `cr 773 1,424 1,033 1,883 2,274 1,564 1,923 12
Slide 13: Consolidated Profit (PBT) Mix - Quarterly
Consolidated Profit (PBT) Mix ‐ Quarterly `cr 1,883 2,274 545 631 673 6% 5% 3% 2% 14% 4% 4% 8% 7% 6% 6% 4% 15% 15% 23% 83% 85% 75% 76% 59% FY10 FY11 Q3FY11 Q2FY12 Q3FY12 Financing Capital Market Insurance Asset Management 13
Slide 14: Consolidated Key Financials
Consolidated Key Financials ` cr FY11 Q2FY12 Q3FY11 Q3FY12 Deposit 27,313 34,473 26,197 36,212 Borrowings 22,073 24,314 19,980 26,939 Advances 41,242 50,581 40,096 52,847 Total Assets 73,681 83,796 70,020 88,514 Networth 10,963 11,893 10,502 12,416 14
Slide 15: Consolidated Key Ratios
Consolidated Key Ratios FY11 Q2FY12 Q3FY11 Q3FY12 Return on average Assets (%) 2.4 2.1 2.4 2.2 Book value per share (`) 148.8 161.0 142.6 167.9 NIM (%) 5.2 4.8 5.0 4.7 RoE (%) 16.4 14.9 14.8 15.1 Gross NPA (` cr) * 469 471 603 504 Gross NPA (%) * 1.1 0.9 1.5 1.0 Net NPA (` cr) * 178 182 204 218 Net
Slide 16: Business Overview
BUSINESS OVERVIEW 16
Slide 17: Financing Business
Financing Business Advances ` cr Net NPA 52,847 2.1% 1.7% 1.5% 1.1% 1.0% 1.2% 0.7% 0.5% 0.4% 0.4% 0.4% 0.4% Jun‐09 Jun‐10 Jun‐11 Sep‐09 Sep‐10 Dec‐09 Dec‐10 Dec‐11 Mar‐09 Mar‐10 Mar‐11 Sep 11 excl acquired stressed assets Asset Quality •Gross restructured loans •Dec 2010 ‐ ` 114 cr •Sep 2011 ‐ ` 72
Slide 18: Financing Business
Financing Business Net Interest Income ` cr 2,233 2,680 778 689 827 FY10 FY11 Q2FY12 Q3FY11 Q3FY12 PAT ` cr 18
Slide 19: Consumer Banking - Liabilities: Branches
Consumer Banking ‐ Liabilities Number of Branches & ATMs Positive impact on 350 710 755 781 800 o savings balances 642 300 700 o number of savings 492 accounts 250 600 o customer 200 321 500 Branches 323 acquisition ATM s 400 150 298 330 249 300 Added over 1.5 lac 100 200 customers 50 100 ‐ 0
Slide 20: Consumer Financing
Consumer Financing Advances break up Mortgages growth in 2% 2% 2% 3% select territories 10% 3% 8% 8% 8% 8% Selective growth in 37% 40% 39% 41% 40% personal loans Focus on SENP 50% 50% 51% 49% 49% Continued low delinquencies FY10 FY11 Q2FY12 Q3FY11 Q3FY12 Car Mortgage PL Others ` cr 13,074 17
Slide 21: Commercial Financing
Commercial Financing Advances break up Continued Growth Focus on Bharat (semi urban / rural areas) Gold loans launched selectively ` cr 9,168 12,988 14,565 11,955 15,919 21
Slide 22: Wholesale Financing
Wholesale Financing Funded & Non funded `cr Largely Working Capital Focus on quality end of credit curve Continued focus on Trade Finance and Transaction Banking ‐Vendor Financing, CMS and Operative Accounts. ‐Focus on FX flows with increased treasury coverage Continued to deepen franchise i
Slide 23: Bank – Profit and Loss
Bank – Profit and Loss `cr FY11 9MFY11 9MFY12 Q2FY12 Q3FY11 Q3FY12 Net Interest Income 2,097 1,532 1,825 605 537 651 Other Income 781 533 723 213 200 282 Net Total Income 2,878 2,065 2,548 818 737 933 Employee Cost 751 533 647 215 199 226 Other Operating Expenses 802 575 691 222 223 264 Operating Ex
Slide 24: Bank Segment Performance
Bank Segment Performance Segmental PBT (`cr) FY11 9MFY11 9MFY12 Q2FY12 Q3FY11 Q3FY12 Corporate/Wholesale Banking 544 374 701 198 131 265 Retail Banking 339 240 445 165 84 145 Treasury & BMU* 305 199 13 19 57 3 Total 1,188 813 1,159 382 272 413 * Balance Sheet Management Unit 24
Slide 25: Bank Advances
Bank Advances Advances (` cr) FY11 Q2FY12 Q3FY11 Q3FY12 Commercial vehicles & Construction equipments 6,251 7,351 5,548 7,540 Agriculture Finance 4,220 4,248 3,753 4,894 Mortgage loans 6,877 7,528 6,626 7,935 Personal loans 1,305 1,501 1,221 1,689 Corporate Banking 9,417 14,900 10,522 15,492 Others
Slide 26: Bank Balance Sheet
Bank Balance Sheet ` cr FY11 Q2FY12 Q3FY11 Q3FY12 Net Worth 6,796 7,361 6,578 7,670 Deposits 29,261 36,390 28,288 38,385 CA 5,460 5,792 4,655 6,189 SA 3,331 3,564 3,213 4,426 Term Deposit 15,388 19,828 14,385 21,841 Certificate of Deposit 5,082 7,207 6,035 5,929 Borrowings 11,724 12,771 9,703 15,242
Slide 27: Bank Key Ratio
Bank Key Ratio FY11 Q2FY12 Q3FY11 Q3FY12 CAR % $ 19.9 17.8 20.4 17.5 Tier I (%) $ 18.0 15.9 18.2 15.6 Gross NPA (` cr) 362 378 484 439 Gross NPA (%) * 1.2 1.0 1.7 1.1 Net NPA (` cr) * 146 161 164 196 Net NPA (%) * 0.5 0.4 0.6 0.5 RoA (%) 1.8 1.8 1.5 1.8 $ Includes profits for 9M Excluding unaudited
Slide 28: Kotak Mahindra Prime
Kotak Mahindra Prime ` cr FY11 Q2FY12 Q3FY11 Q3FY12 Total income 1,365 424 384 474 Profit before tax 482 134 142 152 Profit after tax 318 90 94 104 ` cr FY11 Q2FY12 Q3FY11 Q3FY12 Total Advances 11,145 12,547 10,369 12,379 Car Advances 8,489 9,821 7,949 9,737 Net NPA* 30 22 39 23 Net NPA (%)* 0.3 0.2
Slide 29: Life Insurance
Life Insurance Gross Premium `cr High capital efficiency Product Mix reflects 1,534 1,722 companies focus on Longer tenure products . 221 188 288 280 925 Protection business has 685 shown an increase FY10 FY11 Renewal Group Single Individual Regular 2,868 2,976 676 611 639 ` cr FY11 Q2FY12 Q3F
Slide 30: Life Insurance
Life Insurance Sum Assured ` 000 cr AUM ` cr 142 147 8,270 8,164 8,284 7,842 130 122 6,461 92 FY10 FY11 Q2FY12 Q3FY11 Q3FY12 FY10 FY11 Q2FY12 Q3FY11 Q3FY12 Number of Branches PAT ` cr 214 202 202 203 204 101 69 53 47 24 30 FY10 FY11 Q2FY12 Q3FY11 Q3FY12 FY10 FY11 Q2FY12 Q3FY11 Q3FY12
Slide 31: Kotak Securities
Kotak Securities Market ADV ( ` 000 cr) ADV ` cr (KS) 146 150 142 135 96 86 78 101 100 35 38 43 39 31 30 23 19 14 21 12 FY10 FY11 Q2FY12 Q3FY11 Q3FY12 Cash Future Option ` cr FY11 Q2FY12 Q3FY11 Q3FY12 Total income 738 152 196 134 Profit before tax 272 44 71 37 Profit after tax 182 29 47 24 Market Sh
Slide 32: Kotak Mahindra Capital
Kotak Mahindra Capital Client Transaction Size (USD mn) Lead Manager to Long Term Infrastructure Bond – Tranch1 issue 97 Investment by Actis Private Equity 71 Open offer for INEOA ABS (India) Ltd. by Styrolution (Jersey) Ltd. 36 Acquisition of 100% stake in BS Ispat Ltd by Oriental Iron Casting Ltd
Slide 33: Asset Management
Asset Management ` 51,018 cr ` 48,669 cr Insurance PMS PMS 17% 2% Insurance 4% Domestic MF 15% Debt 48% Domestic MF Offshore Debt Offshore Funds 45% Funds 15% 17% Alternate Alternate Asset Asset Domestic MF Domestic MF 12% 10% Equity Equity 6% 9% Dec 31, 2010 Dec 31, 2011 33
Slide 34: Kotak Investment Advisors
Kotak Investment Advisors Realty Funds Private Equity Funds Corpus advised / managed – Corpus advised / managed – ` 3,530 cr ` 2,098 cr 48 Investments; 9 full exits, 9 partial 33 Investments; 3 full exits, 1 partial exits exit Domestic realty funds raised during FY12 ‐ committed corpus ` 509
Slide 35: Bank Awards & Recognition
Bank Awards & Recognition Ranked # 10 in Asia Pacific Top 20 Companies for Leaders list, 2011 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 #2 in India for companies with “Best Corpor
Slide 36: Bank Awards & Recognition
Bank Awards & Recognition Kotak Bank Annual Report 2010‐11 was awarded Platinum ‐ “Best among Banking, APAC” and Gold in the “Most Creative Report, APAC” in the LACP Vision Awards, USA Awarded Bronze in the “Best Local Trade Bank in India” category of Trade and Forfaiting Review Awards 2011 Ranked #
Slide 37: Awards & Recognition
Awards & Recognition Lipper Fund Award 2011 for Kotak Bond Regular – ‘Best Fund over 10 years Bond Indian Rupee’ 2011:Best Investment Bank in India (Sixth year in a row) Best Domestic 2011: Best Domestic Equity House Investment Bank 2011: Best Equity House (Fourth year in a row) 2011 (Second year in
Slide 38: 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 39: Talent…Professional Entrepreneurs at work
Talent…Professional Entrepreneurs at work Gaurang Shah Joined Kotak in 1996; First charge | Chief Operating Officer, Kotak Mahindra Primus; Current charge | President – Asset Management and Life Insurance On being a professional entrepreneur | I came from a corporate finance background and joi
Slide 40: Talent…Professional Entrepreneurs at work
Talent…Professional Entrepreneurs at work Shanti Ekambaram Joined Kotak in 1991; First charge | Senior Manager – Bill Discounting; Current charge | President – Wholesale Banking, Kotak Mahindra Bank On being a professional entrepreneur | I joined Kotak from a foreign bank. Since financial serv
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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