Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q2 FY2020 Earnings Presentation
35 slides from Kotak Mahindra Bank's earnings presentation, Oct 23, 2019
Slide 1: Exchange filing cover letter
kotak Kotak Mahindra Bank 23•·d October 2019 The Manager The Manager · Corporate Relationship, National Stock Exchange of India Ltd. ESE Limited, Exchange Plaza, 1st Floor, New Trading Ring, . 5th Floor, Rotunda Building, Plot No.C/1, G Block, . ; Phiroze J eejeebhoy Towers, BandracKurla Complex, Da
Slide 2: Investor Presentation Q2FY20
INVESTOR PRESENTATION Q2FY20
Slide 3: Standalone Highlights Q2FY20
Standalone Highlights Q2FY20 PAT NIM* LOANS NET NPA ` 1,724 cr 4.61% ` 213,299 cr 0.85% [` 1,142 cr] [4.19%] [` 184,940 cr] [0.81%] TOTAL CAR BRANCHES CASA ASSETS 18.2% [18.0%] Tier I 1,512 ` 316,890 cr 17.6% [1,425] 53.6% [` 288,836 cr] [50.2%] [17.4%] Figures in [brackets] are Q2FY19 numbers * Doe
Slide 4: Profit and Loss Account
Profit and Loss Account ` cr Q2FY20 Q2FY19 Q1FY20 FY19 Net Interest Income 3,350 2,676 3,161 11,206 Other Income 1,224 1,218 1,317 4,657 Fee and Services 1,162 1,032 1,162 4,287 Others 62 186 155 370 Net Total Income 4,574 3,894 4,478 15,863 Employee Cost 915 745 902 3,159 Other Operating Expenses 1
Slide 5: Advances
Advances 30-Sep-19 (` 213,299 cr) Advances ` cr 30-Sep-19 30-Sep-18 30-Jun-19 Corporate & Business 82,374 76,647 81,418 Banking CV/CE 19,688 17,048 19,910 Agriculture Division 27,068 22,425 25,986 Home Loans and LAP 44,371 36,064 42,243 Small Business, PL & 34,852 29,039 33,719 Credit Cards Others 4
Slide 6: Asset Quality & Specific Sectors Exposure
Asset Quality & Specific Sectors Exposure Asset Quality ` cr 30-Sep-19 30-Sep-18 30-Jun-19 SMA2 outstanding - ` 431 cr GNPA 5,034 4,033 4,614 0.20% of net advances NNPA 1,811 1,501 1,524 GNPA (%) 2.32% 2.15% 2.19% NNPA (%) 0.85% 0.81% 0.73% PCR (excl technical w/off) 64.0% 62.8% 67.0% Specific S
Slide 7: Deposits
Deposits CASA (` cr) Highlights CASA 53.6% 50.2% 50.7% 52.5% % CASA and TDs below ` 5 cr constitute 86% (PY: 79%) of total deposits TDs below ` 1 cr were ` 62,430 cr (PY: ` 49,743 cr) TD Sweep: 7.1% (PY: 6.6%) of total deposits Cost of SA for Q2FY20: 5.37% (Q2FY19: 5.65%) 1,512 branches as
Slide 8: Balance Sheet
Balance Sheet ` cr 30-Sep-19 30-Sep-18 30-Jun-19 Capital & Reserves and Surplus 45,912 40,103 44,290 Deposits 233,071 205,830 232,931 CA 38,200 30,796 36,543 SA 86,712 72,606 81,580 Term Deposits 108,159 102,428 114,808 Of which: TD Sweep 16,548 13,541 16,375 Borrowings 26,665 32,584 27,242 Other Li
Slide 9: Digital Platforms
Digital Platforms New Features Q2FY20 • Tracking of deliverables i.e. chequebooks, Credit/Debit Cards, PINs etc. through Keya Chatbot • Recurring Deposit 91% sourced digitally • Cardless Cash Withdrawal (IMT) option through Net & Mobile • Fixed Deposit sourced • Cab booking through OLA on Mobile ban
Slide 10: Digital Payments, API Banking & Partnerships
Digital Payments, API Banking & Partnerships Key Highlights Key Trends Open Banking has enabled 49 new API relationships YTD Q2FY20 2.3X growth of volumes over Q2FY19 Consumer UPI P2M (Peer to ~10X growth of registered UPI Merchant) Checkouts merchant base in Q2FY20 v/s have grown 6.4X in Q2FY19 Q2F
Slide 11: Digital Update – Subsidiaries
Digital Update – Subsidiaries Kotak Securities 110% 53% growth 12% growth growth YoY in YoY in Online YoY in Mobile Mobile Total Total ADV Cash ADV ADV Kotak Life Insurance Kotak General Insurance 90% Individual Policies sourced in Q2FY20 through Genie (Tablet based end to end sales solution) 37% 95
Slide 12: Consolidated Highlights Q2FY20
Consolidated Highlights Q2FY20 PAT CAR LOANS BOOK VALUE 19.1% PER EQ. [18.7%] SHARE ` 2,407 cr Tier I ` 248,740 cr ` 324.9 [` 1,747 cr] 18.7% [` 222,172 cr] [` 282.4] [18.2%] NIM* CAPITAL & NET NPA TOTAL RESERVES ASSETS 4.56% ` 62,563 cr 0.82% ` 400,342 cr [4.09%] [` 54,349 cr] [0.73%] [` 363,229 cr
Slide 13: Consolidated PAT
Consolidated PAT ` cr Q2FY20 Q2FY19 Q1FY20 FY19 Kotak Mahindra Bank 1,724 1,142 1,360 4,865 Kotak Mahindra Prime 172 157 153 599 Kotak Mahindra Investments 67 45 63 207 Kotak Securities 149 112 110 452 Kotak Mahindra Capital 1 14 45 63 Kotak Mahindra Life Insurance 144 127 134 507 Kotak AMC and TC 8
Slide 14: Entity wise Capital & Reserves and Surplus
Entity wise Capital & Reserves and Surplus ` cr 30-Sep-19 30-Sep-18 30-Jun-19 Kotak Mahindra Bank 45,912 40,103 44,290 Kotak Mahindra Prime 5,740 5,112 5,568 Kotak Mahindra Investments 1,719 1,476 1,652 Kotak Securities 4,238 3,768 4,089 Kotak Mahindra Capital 589 548 588 Kotak Mahindra Life Insuran
Slide 15: Consolidated Advances
Consolidated Advances 30-Sep-19 (` 248,740 cr) Consolidated Advances ` cr 30-Sep-19 30-Sep-18 30-Jun-19 Corporate & 93,113 85,894 92,092 Business Banking CV/CE 19,688 17,048 19,910 Agriculture 27,068 22,425 25,986 Division Auto loans 19,055 20,784 19,574 Home Loans and 44,371 36,064 42,243 LAP Small
Slide 16: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance Gross Written Premium (` cr) Highlights 2,190 1,718 1,640 8,168 Gross Written Premium growth 27.5% YoY Renewal Premium growth 21.7% YoY AUM as on Sep 30, 2019: ` 30,358 cr, growth of 26.4% YoY 13th & 61st Month persistency increased to 88.1% and 61.5% respective
Slide 17: Capital Markets & Advisory
Capital Markets & Advisory Kotak Securities (` cr) Q2FY20 Q2FY19 Q1FY20 FY19 Total Income 407 407 411 1,582 Profit Before Tax 181 169 168 680 Profit After Tax 149 112 110 452 Market Share* (%) (YTD) 1.7 2.5 1.7 2.6 *excluding BSE Derivative segment Market Share in Cash Segment H1FY20 – 9.4% (H1FY19
Slide 18: AUM & RV
AUM & RV Sep 30, 2019 Sep 30, 2018 21% AUM ` 242,025 cr AUM ` 199,382 cr Relationship Value of Wealth + Priority as at Sep 30, 2019 ~ ` 295,000 cr (PY: ~ ` 248,000 cr) 17
Slide 19: Kotak Mahindra AMC & Trustee Co.
Kotak Mahindra AMC & Trustee Co. Average Assets Under Management (` cr) - Overall Average Assets Under Management (` cr) - Equity ` cr Q2FY20 Q2FY19 Q1FY20 FY19 Highlights Overall Ranking on AAUM improved to Profit Before Tax 104 79 111 388 6th in Q2FY20 (Q2FY19: 7 th) Profit After Tax 85 52 73 25
Slide 20: Kotak Mahindra Prime
Kotak Mahindra Prime Customer Assets* (` cr) & NNPA (%) ` cr Q2FY20 Q2FY19 Q1FY20 FY19 NII 305 266 299 1,104 Other Income 64 87 63 288 NII and Other Income 369 355 362 1,392 Profit Before Tax 234 238 235 905 Profit After Tax 172 157 153 599 CAR (%) (incl unaudited profits) 21.0 ROA (%) - annualised
Slide 21: Kotak Mahindra Investments
Kotak Mahindra Investments Customer Assets* (` cr) & NNPA (%) ` cr Q2FY20 Q2FY19 Q1FY20 FY19 NII 89 60 86 290 Other Income 23 25 28 97 NII and Other Income 112 85 114 387 Profit Before Tax 87 70 94 316 Profit After Tax 67 45 63 207 CAR (%) (incl unaudited profits) 22.4 ROA (%) - annualised 2.8 * Inc
Slide 22: Geographical Presence
Geographical Presence 2 Branches 1,512 [No./%] North 11 455/30% 82 10 66 98 West East 1 468/31% 117/8% 77 64 5 22 1 South 145 9 1 472/31% 45 39 21 Branch Classification 2 18 314 86 7 161 106 No of ATMs 87 2,429 32 1st International Branch in DIFC, Dubai 21
Slide 23: Group Profile
GROUP PROFILE
Slide 24: 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 1993 2000 2003 2008 2015 Auto IPO Life BANK ARC ING Vysya Finance Insurance Merger Kotak Mahindra General In
Slide 25: 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 26: 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 27: 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, ∞ Despite of bei
Slide 28: 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 29: Bank Awards & Recognition
Bank Awards & Recognition Banker’s Choice Awards - Best Cash Mgt Bank India Banking Summit & - Best Supplier Awards 2019 Relationship Mgt - Best product Innovator - Best E-commerce of the year for Initiative, Application Whatsapp Banking or Programme: “Kotak - Best Customer Service Magna Awards 2019
Slide 30: Awards and Recognition
Awards and Recognition Thomson Reuters Lipper India 2019 fund Awards – India Fund Award for Kotak Equity Arbitrage Fund Euromoney Private Banking and Regular Plan–Growth Option (5 yrs & 10 yrs) Wealth Management Survey, 2019 Ranked #1 CNBC TV 18 for the year 2018: - Best Private Banking Services 201
Slide 31: 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 entrepr eneur | I used to be an engineer and then a consultant. My first job
Slide 32: 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 - Group Chief Risk Officer, Kotak Mahindra Bank On being a professional entr epreneur Came from corporate finance background &
Slide 33: 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, Kotak Mahindra Bank On being a professional entrepren eur | My initial work at Kotak was in the area of Proprietary Investments, where I
Slide 34: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work NILESH SHAH Joined Kotak in 2015; First charge | Managing Director – Kotak Mahindra Asset Management Co. Ltd. Current charge | Managing Director – Kotak Mahindra Asset Management Co. Ltd. On being a professional entr epreneur |We are in the business o
Slide 35: 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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