Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q2 FY2018 Earnings Presentation
39 slides from Kotak Mahindra Bank's earnings presentation, 2017
Slide 1: Investor Presentation Q2FY18
INVESTOR PRESENTATION Q2FY18
Slide 2: Consolidated Highlights Q2FY18
Consolidated Highlights Q2FY18 PAT CAR LOANS BOOK VALUE 19.2%# PER SHARE [17.3%] ` 1,441 cr Tier I ` 187,758 cr ` 246.7 [` 1,202 cr] 18.6%# [` 154,078 cr] [` 194.3] [16.5%] NIM NETWORTH NET NPA TOTAL ASSETS 4.30% ` 46,975 cr 1.08% ` 304,883 cr [4.46%] [` 35,690 cr] [1.05%] [` 249,294 cr] Figures in
Slide 3: Consolidated Key Financials
Consolidated Key Financials Advances [` cr] Networth [` cr] Total Assets [` cr] PAT [` cr] 3
Slide 4: Consolidated Customer Assets
Consolidated Customer Assets 30-Sep-17 (` 187,758 cr) Customer Assets ` cr 30-Sep-17 30-Sep-16 30-Jun-17 Corporate Banking 56,493 44,243 52,479 CV/CE 12,205 9,167 11,442 Agriculture 19,741 17,299 18,563 Division Business Banking 18,113 17,361 17,527 Auto loans 19,900 17,460 18,488 Home Loans and 29,
Slide 5: Consolidated PAT
Consolidated PAT ` cr Q2FY18 Q2FY17 Q1FY18 FY17 Kotak Mahindra Bank 994 813 913 3,411 Kotak Mahindra Prime 150 130 132 515 Kotak Mahindra Investments 55 53 45 196 Kotak Securities 118 96 125 361 Kotak Mahindra Capital (1) 5 5 46 Kotak Mahindra Old Mutual Life 100 63 103 303 Insurance Kotak AMC and T
Slide 6: Entity wise Networth
Entity wise Networth ` cr 30-Sep-17 30-Sep-16 30-Jun-17 31-Mar-17 Kotak Mahindra Bank 35,206 25,611 34,318 27,616 Kotak Mahindra Prime 4,509 3,962 4,359 4,227 Kotak Mahindra Investments 1,137 933 1,082 1,038 Kotak Securities 3,239 2,791 3,121 2,996 Kotak Mahindra Capital 497 475 499 493 Kotak Mahind
Slide 7: Standalone Highlights Q2FY18
Standalone Highlights Q2FY18 PAT NIM LOANS NET NPA ` 994 cr 4.33% ` 152,574 cr 1.26% [` 813 cr] [4.47%] [` 126,015 cr] [1.20%] TOTAL CAR BRANCHES CASA ASSETS 19.4%# [16.8%] Tier I ` 236,970 cr 18.7%# 1,362 47.8% [` 195,060 cr] [1,336] [39.0%] [15.7%] Figures in [brackets] are Q2FY17 numbers # As per
Slide 8: Profit and Loss Account
Profit and Loss Account ` cr Q2FY18 Q2FY17 Q1FY18 FY17 Net Interest Income 2,313 1,995 2,246 8,126 Other Income 954 831 907 3,477 Net Total Income 3,267 2,826 3,153 11,603 Employee Cost 723 699 706 2,745 Other Operating Expenses 819 687 851 2,873 Operating Expenditure 1,542 1,386 1,557 5,618 Operati
Slide 9: Income and Asset Quality
Income and Asset Quality NII (` cr) and NIM Asset Quality Restructured loans considered standard ` 65 cr; 0.04% of net advances SMA2 outstanding - ` 250 cr 0.16% of net advances GNPA: 2.47% NNPA: 1.26% Other Income (` cr) Q2FY18 Q2FY17 Q1FY18 FY17 Fee and Services 810 630 805 2,677 Others
Slide 10: Segment Performance
Segment Performance Bank Segmental PBT As per RBI (` cr) Q2FY18 Q2FY17 Q1FY18 FY17 Corporate/Wholesale Banking 685 621 732 2,695 Retail Banking 341 265 279 1,195 Treasury, BMU* & 482 356 381 1,258 Corporate Centre Total 1,508 1,242 1,392 5,148 * Balance Sheet Management Unit 10
Slide 11: Customer Assets
Customer Assets 30-Sep-17 (` 152,574 cr) Customer Assets ` cr 30-Sep-17 30-Sep-16 30-Jun-17 Corporate Banking 48,995 38,738 46,046 CV/CE 12,205 9,167 11,442 Agriculture Division 19,741 17,299 18,563 Business Banking 18,113 17,361 17,527 Home Loans and LAP 29,429 24,437 27,459 Small Business, PL & 20
Slide 12: Branches & Deposits
Branches & Deposits CASA (` cr) Highlights CASA % 47.8% 39.0% 43.9% 44.0% 1,362 branches as on 30th Sep, 2017 Plan to reach around 1,400 branches by FY18 CASA and TDs below ` 5 cr constitute 77% of total deposits TDs below ` 1 cr were ` 41,157 cr TD Sweep deposits 7.0% of the total deposit
Slide 13: Balance Sheet
Balance Sheet ` cr 30-Sep-17 30-Sep-16 30-Jun-17 31-Mar-17 Networth 35,206 25,611 34,318 27,616 Deposits 165,671 141,045 163,518 157,426 CA 25,731 22,004 27,742 27,761 SA 53,490 33,037 44,026 41,504 Term Deposits 86,450 86,004 91,750 88,161 Of which: TD Sweep 11,559 9,087 11,126 10,079 Borrowings 25
Slide 14: Digital – Best In Class Experience
Digital – Best In Class Experience Q2FY18 Mobile Banking app rated 4.5 on Google Play Store Recurring Deposit 77% sourced digitally New Website – Customer Centric; Mobile-first % Fixed Deposit MOBILE BANKING GROWTH 60% sourced digitally 96% 125% Value Volume Digital Share of 29% Salaried Personal (Y
Slide 15: Lifestyle made easy with Payments
Lifestyle made easy with Payments Payments highlights 811 – Account Opening through Monthly transactions on Mobile MB 147% Volume Growth (Sept’17 v/s Sept’16) Payment Gateway transactions 68% Value growth (Sept’17 v/s UPI Sept’16) 20% Payment Gateway volume growth (Sept’17 v/s Sept’16) Scan & Pay On
Slide 16: Transformation
Transformation Service Requests • Real-time Instant Processing • Omni Channel Approach • Biometric Authentication @ Branches Robotics Process Automation • 90%+ reduction in Turnaround time for major processes and less human intervention • Eliminates manual risk and provides volume processing and sca
Slide 17: The Customer
The 811 Customer 45% Of 811 91% Customers are Customers are Salaried between 18- employees 82% 40 yrs of age 63% Of 811 Around 10.5Mn Total Customers come from customers top 20 Cities of the Bank 17
Slide 18: Digital Update – Subsidiaries
Digital Update – Subsidiaries Kotak Securities Kotak Life Insurance Individual Policies sourced Growth in Mobile average in Q2FY18 through Genie daily volumes over Q2FY17 (Tablet based end to end sales solution) Launched New Margin Business (sales in Q2) comes Trading facility across all through Gen
Slide 19: Kotak Mahindra Prime
Kotak Mahindra Prime Customer Assets* (` cr) & NNPA (%) ` cr Q2FY18 Q2FY17 Q1FY18 FY17 NII 276 247 272 1,017 Other Income 64 61 57 225 NII and Other Income 340 308 329 1,242 Profit Before Tax 229 198 203 788 Profit After Tax 150 130 132 515 CAR (%) 17.2 ROA (%) - annualised 2.0 * Includes loans and
Slide 20: Kotak Mahindra Investments
Kotak Mahindra Investments Customer Assets* (` cr) & NNPA (%) ` cr Q2FY18 Q2FY17 Q1FY18 FY17 NII 76 63 73 270 Other Income 24 31 7 81 NII and Other Income 100 94 80 351 Profit Before Tax 84 76 69 290 Profit After Tax 55 53 45 196 CAR (%) 16.8 ROA (%) - annualised 3.1 * Includes loans and credit subs
Slide 21: Kotak Securities
Kotak Securities Market ADV (` ‘000 cr) ADV (` cr) - KS 673 401 567 407 ` cr Q2FY18 Q2FY17 Q1FY18 FY17 Total Income 351 294 365 1,184 Profit Before Tax 177 144 187 543 Profit After Tax 118 96 125 361 Market Share * (%) (YTD) 1.9 2.3 1.9 2.2 *excluding BSE Derivative segment ~ 1.5 million secondary m
Slide 22: Kotak Mahindra Old Mutual Life Insurance
Kotak Mahindra Old Mutual Life Insurance New Business Premium (` cr) Highlights 687 589 482 2,278 Individual Regular NBP grew at 31% YoY Individual renewal premium grew 26.7% YoY Investment Performance of 100% Equity Funds in Quartile 1 on three and five year basis H1FY18 conservation ratio
Slide 23: Kotak Mahindra Capital Company
Kotak Mahindra Capital Company Advisory Deals completed in Q3 Buyback of equity shares via tender # Initial Public Offering offer route ` 13,000 cr ` 11,400 cr Financial Advisor for Series A fund raise # Qualified Institutional Placement Undisclosed ` 1,500 cr Equity # Initial Public Offering Initia
Slide 24: Assets Under Management
Assets Under Management Sep 30, 2017 Sep 30, 2016 AUM ` 169,214 cr AUM ` 120,705 cr 24
Slide 25: Kotak Mahindra AMC & Trustee Co.
Kotak Mahindra AMC & Trustee Co. Average Assets Under Management (` cr) - Overall Average Assets Under Management (` cr) - Equity ` cr Q2FY18 Q2FY17 Q1FY18 FY17 Highlights Equity (incl arbitrage) ranking Profit Before Tax 34 11 21 84 improved to 8th in Q2FY18 (Q1FY18: 9th) Profit After Tax 23 7 15
Slide 26: Geographical Presence
Geographical Presence 2 Branches 1,362 [No./%] 9 North 68 402/30% 8 47 98 1 West East 54 64 4 423/31% 82/6% 14 1 127 36 8 1 South 16 36 455/33% 17 2 Branch Classification 288 83 6 No of ATMs 108 155 77 2,164 32 26
Slide 27: Group Profile
GROUP PROFILE
Slide 28: The Journey So far…
The Journey So far… Acquired Acquired Bill Investment Mutual Alternate Scheme of BSS Discount Banking Fund Securities Assets Pinebridge MF Microfinance 1985 1991 1998 2001 2004 2014 2017 1990 1992 2000 2003 2008 2015 Auto IPO Life BANK ARC ING Vysya Finance Insurance Merger Kotak Mahindra General In
Slide 29: Kotak - Concentrated India; Diversified Financial Services
Kotak - Concentrated India; Diversified Financial Services KOTAK MAHINDRA BANK Commercial Bank & Holding Company Kotak Kotak Mahindra Kotak Investment Kotak Mahindra Mahindra Kotak Securities Investments Advisors Capital Company Prime ∞ Car Finance ∞ Investments ∞ Alternate Assets ∞ Investment ∞ Sto
Slide 30: Present Across the Entire Value Chain
Present Across the Entire Value Chain Platform with Wide Product Portfolio Corporate Banking Commercial Banking Consumer Banking Non-Banking ∞ Corporate Loans ∞ Agriculture Finance ∞ Auto Loans ∞ Mutual Funds ∞ Trade Finance ∞ Tractor Finance ∞ Home loans, LAP ∞ Alternate Assets ∞ Commercial Real Es
Slide 31: Kotak Uniqueness – Strengths
Kotak Uniqueness – Strengths An integrated Ability to Prudent risk Strong brand Strong and identify and management and governance diversified capitalise on capabilities leadership in culture with business opportunities various experienced model businesses management ∞ Balance sheet, ∞ Relative ∞ Gui
Slide 32: The Path of Leadership
The Path of Leadership Attract & Retain Talent - High degree of stability within Risks Management the management team, many Strong Capital Position have been with the Group for - Extensive on-the-ground over 15 years - Capital adequacy amongst the presence and superior highest in the Indian banking
Slide 33: Bank Awards & Recognition
Bank Awards & Recognition Best Corporate & Investment Bank for India Asiamoney Best Bank Awards 2017 - India Fastest Growing Midsized Bank 2017 Business Today-Money Today Financial Awards Best Growing Mid-Size Bank Businessworld Magna Best Banks Awards 2017 Company of the Year 2016 Best Savings Bank
Slide 34: Awards and Recognition
Awards and Recognition Most Innovative Bank Asia Pacific award by The Banker Business World Award Magazine Best Campaign Management Excellence in L&D for 2016 Award (Gold Medal) for the Securities Advisory Firm of the Agar Magar Jigar campaign Year in India Corporate Intl Global Awards – DMAsia 2017
Slide 35: 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 a
Slide 36: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work D.KANNAN Joined Kotak in 1991; First charge | Assistant Manager, Kotak Mahindra Finance Current charge | Group Head, Commercial Banking, Kotak Mahindra Bank On being a professional entrepreneur | Joined Kotak Mahindra Finance as Assistant Manger and w
Slide 37: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work JAIDEEP HANSRAJ Joined Kotak in 1993; First charge | Assistant Manager, Kotak Mahindra Finance Current charge |CEO – Wealth Management and Priority Banking, Kotak Mahindra Bank On being a professional entrepreneur My first job at Kotak was to garner l
Slide 38: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work MOHAN SHENOI Joined Kotak in 2002; Current charge | President & Chief Operating Officer, Kotak Mahindra Bank On being a professional entrepreneur | Very few in the banking industry have the experience of starting a new bank. I had this rare privilege
Slide 39: 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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