Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q2 FY2017 Earnings Presentation
38 slides from Kotak Mahindra Bank's earnings presentation, 2016
Slide 1: Investor Presentation Q2FY17
INVESTOR PRESENTATION Q2FY17
Slide 2: Standalone Highlights Q2FY17
Standalone Highlights Q2FY17 PAT NIM LOANS NET NPA ` 813 cr 4.47% ` 126,015 cr 1.20% [ ` 570 cr] [4.30%] [ ` 111,662 cr] [1.05%] TOTAL CAR BRANCHES CASA ASSETS 16.8%# 39.0% [16.1%] ` 195,060 cr Tier I# 1,336 ` 55,041 cr [ ` 175,426 cr] 15.7% [1,269] [ ` 44,657 cr] [14.9%] Figures in [brackets] are Q
Slide 3: Profit and Loss Account
Profit and Loss Account ` cr Q2FY17 Q2FY16 Q1FY17 FY16 Net Interest Income 1,995 1,679 1,919 6,901 Other Income * 831 616 733 2,612 Net Total Income 2,826 2,295 2,652 9,513 Employee Cost # 699 623 667 2,804 Other Operating Expenses $ 687 627 670 2,668 Operating Expenditure 1,386 1,250 1,337 5,472 Op
Slide 4: Income and Asset Quality
Income and Asset Quality NII (` cr) and NIM Asset Quality Restructured loans considered standard ` 147 cr 0.12% of net advances (0.13% as on Jun-16) SMA2 outstanding - ` 419 cr 0.33% of net advances (0.39% as on Jun-16) During the quarter No CDR participation No transfer to ARC No conversi
Slide 5: Segment Performance
Segment Performance Bank Segmental PBT As per RBI (` cr) Q2FY17 Q2FY16 Q1FY17 FY16 Corporate/Wholesale Banking 621 530 601 2,030 Retail Banking 264 328 250 917 Treasury, BMU* & 357 11 285 177 Corporate Centre ** Total 1,242 869 1,136 3,124 * Balance Sheet Management Unit ** Integration costs are par
Slide 6: Advances & Investments
Advances & Investments 30-Sep-16 (` 126,015 cr) Advances ` cr 30-Sep-16 30-Sep-15 30-Jun-16 Corporate Banking 38,737 33,909 38,067 CV/CE 8,682 6,123 8,005 Agriculture Division 17,784 17,112 16,814 Business Banking 17,361 17,424 16,990 Home Loans and LAP 24,437 21,697 23,479 Small Business, PL & 15,8
Slide 7: Branches & Deposits
Branches & Deposits CASA (` cr) Highlights 1,336 branches as on 30th CASA % 39.0% 36.2% 37.4% 38.1% Sep, 2016 Plan to reach 1,400 branches by CY17 100+ branches to be relocated/ rationalised in FY17, 21 branches completed in H1FY17 CASA and TDs below ` 5 cr constitute 73% of total deposits
Slide 8: Balance Sheet
Balance Sheet ` cr 30-Sep-16 30-Sep-15 30-Jun-16 31-Mar-16 Networth 25,611 22,606 24,744 23,959 Deposits 141,045 123,211 140,028 138,643 CA 22,004 20,322 21,854 23,282 SA 33,037 24,335 30,564 29,495 Term Deposits 86,004 78,554 87,610 85,866 Of which: TD Sweep 9,087 6,629 8,691 6,947 Borrowings 19,81
Slide 9: Geographical Presence
Geographical Presence Branches 1,336 [No./%] North 2 390/29% 9 66 8 West East 42 415/31% 77/6% 98 1 63 53 4 South 12 1 454/34% 1 125 34 7 35 15 2 16 Branch Classification 282 83 6 108 153 No of ATMs IBU in GIFT City Dubai Rep office 32 78 2,044 9
Slide 10: Convenience Features
Best-in-class Transaction Experience on Mobile Highest rated banking app (4.4) in India Disruptive growth in digital payments Convenience Features Instant One Time Fund 118 % YOY growth in Transfer Mobile transaction volumes (Q2FY17) Special recharge plans, added recurring deposit, add beneficiary M
Slide 11: Digital Activity
Digital Activity Ecommerce now integrated in our digital Payments highlights (YoY) Ecommerce now integrated ` 3,500 Monthly transactions on Mobile in our digital platforms cr crossed (Sep’16) 95% Transactions Value growth Joined UPI group of issuers - Promote mobile app based payments 79% Payment Ga
Slide 12: Digital Activity
Digital Activity Digital Liabilities Acquisition Digital Lending – Salaried Personal Loan Digital contribution in overall sourcing one of the highest in the Industry Key focus to enhance customer experience & >60% Recurring Deposit sourced digitally increase throughput without proportionate increase
Slide 13: Digital Transformation Projects
Digital Transformation Projects Automation of Savings account onboarding process for TAB Banking corporate salary – 20% of corporate sourcing through TAB Instant processing by in-field scanning & digital document transfers End-to-end acquisition capture & monitoring – unified LMS Enhanced First Time
Slide 14: Digital Update - Subsidiaries
Digital Update - Subsidiaries Kotak Securities In Q2FY17, Mobile transactions volume > ` 8,000 cr per month Brokerage Contribution of Kotak Stock Trader app crossed 11% Launch of Digital insta KIT enabling experiencing all trading platforms while account opening is in process Social Contact
Slide 15: Consolidated Highlights Q2FY17
Consolidated Highlights Q2FY17 PAT CAR# LOANS BOOK VALUE PER SHARE 17.3% [16.5%] ` 1,202 cr Tier I # ` 154,078 cr ` 194.3 [ ` 942 cr] 16.5% [ ` 134,669 cr] [ ` 171.2 ] [15.5%] NIM NETWORTH NET NPA TOTAL ASSETS 4.46% ` 35,690 cr 1.05% ` 249,294 cr [4.38%] [ ` 31,333 cr] [0.93%] [ ` 219,527 cr] Figure
Slide 16: Consolidated Key Financials
Consolidated Key Financials Advances [` cr] Networth [` cr] Total Assets [` cr] PAT [` cr] 16
Slide 17: Consolidated Advances & Investments
Consolidated Advances & Investments 30-Sep-16 (` 154,078 cr) Advances & Investments ` cr 30-Sep-16 30-Sep-15 30-Jun-16 Corporate Banking 44,243 37,569 42,732 CV/CE 8,682 6,123 8,005 Agriculture 17,784 17,112 16,814 Division Business Banking 17,361 17,424 16,990 Auto loans 17,460 15,726 16,824 Home L
Slide 18: Consolidated PAT
Consolidated PAT ` cr Q2FY17 Q2FY16 Q1FY17 FY16 Kotak Mahindra Bank 813 570 742 2,090 Kotak Mahindra Prime 130 127 120 502 Kotak Mahindra Investments 53 36 40 154 Kotak Mahindra Old Mutual Life 63 48 71 251 Insurance Kotak AMC and TC 7 23 19 72 Kotak Securities 96 78 60 251 Kotak Mahindra Capital 5
Slide 19: Entity Wise Networth
Entity Wise Networth ` cr 30-Sep-16 30-Sep-15 30-Jun-16 31-Mar-16 Kotak Mahindra Bank 25,611 22,606 24,744 23,959 Kotak Mahindra Prime 3,962 3,596 3,832 3,852 Kotak Mahindra Investments 933 753 881 841 Kotak Mahindra Old Mutual Life 1,656 1,385 1,593 1,521 Insurance Kotak AMC and TC 199 144 192 173
Slide 20: Kotak Mahindra Prime
Kotak Mahindra Prime Customer Assets (` cr) & NNPA (%) ` cr Q2FY17 Q2FY16 Q1FY17 FY16 NII 247 237 242 967 Other Income 61 61 52 210 Total Income 308 298 294 1,177 Profit Before Tax 198 195 183 773 Profit After Tax 130 127 120 502 CAR (%) 18.2 ROA (%) - annualised 2.3 20
Slide 21: Kotak Mahindra Investments
Kotak Mahindra Investments Customer Assets (` cr) & NNPA (%) ` cr Q2FY17 Q2FY16 Q1FY17 FY16 NII 72 63 67 251 Other Income 21 5 5 29 Total Income 93 68 72 280 Profit Before Tax 76 55 61 236 Profit After Tax 53 36 40 154 CAR (%) 18.2 ROA (%) - annualised 3.4 21
Slide 22: Kotak Mahindra Old Mutual Life Insurance
Kotak Mahindra Old Mutual Life Insurance New Business Premium (` cr) Highlights 634 461 477 2,210 Individual Regular new business premium grew by 15% YoY Group business grew by 38%YoY Sum assured increased by 23% YoY Number of lives covered grew by 39% YoY Investment Performance of 100% of
Slide 23: Kotak Securities
Kotak Securities Market ADV (` ‘000 cr) ADV (` cr) - KS 401 281 318 285 ` cr Q2FY17 Q2FY16 Q1FY17 FY16 Total Income 294 270 238 975 Profit Before Tax 144 120 92 381 Profit After Tax 96 78 60 251 Market Share * (%) 2.3 2.7 2.4 2.6 *excluding BSE Derivative segment Kotak Securities services ~ 1.3 mill
Slide 24: Kotak Mahindra Capital Co.
Kotak Mahindra Capital Co. Advisory Equity Fairness opinion to Aditya Birla Nuvo for Initial Public Offering (IPO) of merger with Grasim Industries; followed Larsen & Toubro Infotech Limited ` 53,038 cr by demerger of Financial Services Business ` 1,236 cr Fairness opinion to HDFC Life for merger of
Slide 25: Asset Under Management
Asset Under Management Sep 30, 2016 Sep 30, 2015 AUM ` 120,705 cr AUM ` 96,037 cr 25
Slide 26: Kotak Mahindra AMC & Trustee Co
Kotak Mahindra AMC & Trustee Co Average Assets Under Management (`cr) - Overall Average Assets Under Management (`cr) - Equity Highlights ` cr Q2FY17 Q2FY16 Q1FY17 FY16 Pure Equity ranking moved to Profit Before Tax 11 24 29 90 10 in Q2 from 12 in Q1 PMS AUM grew 60% QoQ Profit After Tax 7 23 19
Slide 27: Kotak Investment Advisors Limited
Kotak Investment Advisors Limited Set up for a focused approach to investing in the Indian Private Equity, Real Estate, Infrastructure, Special Situations & Listed Strategies space Advises / manages an AUM of ` 10,870 cr with dedicated, independent and experienced investment teams Real Estate Pr
Slide 28: Group Profile
GROUP PROFILE
Slide 29: The Journey So far…
The Journey So far… Acquisition of BSS Microfinance Private Limited – Subject to RBI approval Kotak Mahindra Bank is the 4th Largest Private Sector Bank Rating for Bank, KMP, KMIL, KS 29
Slide 30: Organizational Overview
Organizational Overview () kotak KOTAK MAHINDRA BANK Commercial Bank & Holding Company + Car Finance + Other Lending Kotak Mahindra Old Mutual Life Insurance + Life Insurance Kotak Mahindra Financial Services + Advisory Services for Middle East Kotak Mahindra Investments + Investments + Lending Kota
Slide 31: Kotak Uniqueness
Kotak Uniqueness - Strong capital base: Bank’s - Ability to take advantage CRAR* - 16.8% as on 30th Sept 16 of opportunities & build - Strong on ground relationships profitable business models key contributor to achieve low risk & high return - Ability to gauge warning - Consistent stock performance
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 Company of the year 2016 The Economic Times Awards for Corporate Excellence Company with Great Managers The Great Managers Award 2016 by People Business and Times of India. Best Private Bank India Mr. Uday Kotak FinanceAsia Country Awards AIMA - JRD Tata Corporate 2016 Lead
Slide 34: Awards and Recognition
Awards and Recognition Ranked #2 Institutional Investor’s 2015 All-India Sales Team Asiamoney Brokers Poll 2015 • Ranked #1 in Overall Research for India • Ranked #1 in Execution for India • Ranked #2 for Most Independent Research Brokerage Best Broker in India IPO Dealmaker of the Year FinanceAsia
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 K.V.S.MANIAN Joined Kotak in 1995; First charge | Compliance, Kotak Mahindra Capital Company; Current charge | President – Corporate, Institutional & Investment Banking, Kotak Mahindra Bank On being a professional entrepreneur | After two years in Inv
Slide 38: 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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