Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — FY2012 Earnings Presentation
40 slides from Kotak Mahindra Bank's earnings presentation, 2012
Slide 1: Investor Presentation FY12
Investor Presentation FY12
Slide 2: 2
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Slide 3: Geographical Presence
Geographical Presence Wide National Footprint ….. ….. With Multiple Points of Presence Business Mar - 2012 Banking 355 Car Finance 66 Life Insurance 204 Securities 1,365 Mutual Fund 83 Total 2,073 International offices situated in London, New York, California, Dubai, Abu Dhabi, Bahrain, Mauritius &
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 Capital Kotak Securities Trustee Old Mutual Life Investments Prime AMC Pension Fund Company Company Insurance * • Investmen
Slide 5: Kotak Bank - Standalone Highlights (FY12)
Kotak Bank - Standalone Highlights (FY12) FY12 PAT Networth Loans Net ` 1,085 cr (` 818 cr) ` 7,946 cr ` 39,079 cr (` 29,329 cr) NPA * (` 6,796 cr) up 33% yoy up 33% yoy 0.57% (0.50%) Restructured Loans - Net CAR Tier 1 CASA ` 30 cr ` 12,402 cr 17.5% (19.9%) 15.7% (18.0%) (` 67 cr) (` 8,791 cr) 0.08
Slide 6: Consolidated Highlights (FY12)
Consolidated Highlights (FY12) FY12 PAT Networth Loans Net ` 1,832 cr (` 1,567 cr) ` 12,901 cr ` 53,144 cr (` 41,242 cr) NPA * (` 10,963 cr) up 17% yoy up 29% yoy 0.49% (0.43%) NIM RoA Total Assets Book Value ` 92,349 cr ` 174.2 per share 4.8% (5.2%) 2.2% (2.4%) (` 73,681 cr) (` 148.8 per share) up
Slide 7: Consolidated Advances & Investments
Consolidated Advances & Investments ` cr FY03 FY07 FY08 FY09 FY10 FY11 FY12 Commercial vehicles & Construction 713 2,988 3,629 3,335 4,414 6,251 7,798 equipment Agriculture Finance - 678 1,664 2,365 3,089 4,220 5,714 Auto loans 1,772 3,540 4,735 4,774 6,542 8,550 10,600 Mortgage Loans - 1,753 2,640
Slide 8: Consolidated PAT
Consolidated PAT ` cr FY03 FY07 FY08 FY09 FY10 FY11 FY12 Kotak Mahindra Bank 45 141 294 276 561 818 1,085 Kotak Mahindra Prime 11 57 101 157 166 318 385 Kotak Securities 24 256 409 107 260 182 126 Kotak Mahindra Capital Company 31 68 115 13 24 52 6 Kotak Mahindra Old Mutual Life (42) (58) (72) 14 69
Slide 9: Consolidated PAT – Quarterly
Consolidated PAT – Quarterly ` cr Q3FY12 Q4FY11 Q4FY12 Kotak Mahindra Bank 276 249 297 Kotak Mahindra Prime 104 87 97 Kotak Securities 24 36 50 Kotak Mahindra Capital Company 4 30 5 Kotak Mahindra Old Mutual Life Insurance 47 71 57 Kotak Mahindra AMC & Trustee Co 3 3 3 International subsidiaries (4)
Slide 10: Consolidated PAT – Quarterly Trend
Consolidated PAT – Quarterly Trend 600 521 491 500 419 400 (`cr ) 300 240 211 200 100 - 2008 2009 2010 2011 2012 Q1 Q2 Q3 Q4 ` cr 2008 2009 2010 2011 2012 Q1 146 150 257 328 416 Q2 242 160 300 364 432 Q3 363 131 331 384 463 Q4 240 211 419 491 521 10
Slide 11: Consolidated Profit (PBT) Mix
Consolidated Profit (PBT) Mix PBT 151 773 1,424 1,033 1,883 2,274 2,673 `cr 6% 3% 13% 14% 4% 8% 11% 10% 2% 4% 7% 2% 15% 18% 23% 58% 53% 59% 82% 75% 67% 59% 68% 43% 37% FY03 FY07 -7% FY08 -6% FY09 FY10 FY11 FY12 -28% Financing Capital Market Insurance Asset Management PAT 73 538 991 652 1,307 1,567 1
Slide 12: Consolidated Profit (PBT) Mix - Quarterly
Consolidated Profit (PBT) Mix - Quarterly PBT 673 711 751 `cr 2% 4% 3% 7% 8% 10% 6% 10% 14% 85% 79% 72% Q3FY12 Q4FY11 Q4FY12 Financing Capital Market Insurance Asset Management PAT 463 491 521 `cr 12
Slide 13: Consolidated Key Financials
Consolidated Key Financials Total Assets (` cr) Networth (` cr) 92,349 12,901 73,681 10,963 55,115 7,911 40,597 40,234 6,523 5,824 28,631 3,233 4,681 1,056 FY03 FY07 FY08 FY09 FY10 FY11 FY12 FY03 FY07 FY08 FY09 FY10 FY11 FY12 Book Value per share (`) Market Cap (` cr) 174.2 40,394 148.8 33,738 113.6
Slide 14: Consolidated Key Ratios
Consolidated Key Ratios RoA (%) RoE (%) 19.6 22.3 2.9 2.3 2.4 16.4 2.7 2.2 18.2 15.4 2.1 1.6 10.5 7.2 FY03 FY07 FY08 FY09 FY10 FY11 FY12 FY03 FY07 FY08 FY09 FY10 FY11 FY12 NIM (%) NPA * (%) 2.3 5.8 2.2 * Excluding acquired 5.2 stressed assets portfolio 4.9 5.8 5.2 4.8 5.0 1.2 1.1 1.1 0.9 0.7 1.1 0.5
Slide 15: Integrated Financial Services
Integrated Financial Services Banking Asset Life Insurance Management Capital Markets 15
Slide 16: Financing Business
Financing Business Advances (` cr) Net NPA (%)* * Excluding acquired 53,144 2.1% stressed assets portfolio 41,242 27% 29,724 1.1% 32% 21,985 22,498 1.2% 15,573 0.5% 0.4% 41% 3,034 Mar-09 Mar-10 Mar-11 Mar-12 Jun-09 FY03 FY07 FY08 FY09 FY10 FY11 FY12 Consumer Commercial Corporate Net Interest Income
Slide 17: Bank Key Ratios
Bank Key Ratios RoA (%) NPA * (%) 2.5% * Excluding acquired 2.5% 2.4% stressed assets portfolio 1.8% 1.8% 1.7% 1.2% 1.2% 1.0% 1.1% 0.8% 1.3% 1.3% 0.9% 1.0% 0.5% 0.4% 0.5% 0.6% 0.1% 0.2% FY03 FY07 FY08 FY09 FY10 FY11 FY12 FY03 FY07 FY08 FY09 FY10 FY11 FY12 Gross NPA (%) Net NPA (%) CAR & Tier I (%) A
Slide 18: Bank Profit and Loss
Bank Profit and Loss ` cr FY03 FY07 FY08 FY09 FY10 FY11 FY12 Net Interest Income 87 605 1,147 1,452 1,780 2,097 2,512 Other Income 81 377 601 424 707 781 978 Net Total Income 168 982 1,748 1,876 2,486 2,878 3,490 Employee Cost 22 260 468 557 556 751 872 Other Operating Expenses 56 352 552 639 634 80
Slide 19: Bank Profit and Loss - Quarterly
Bank Profit and Loss - Quarterly ` cr Q3FY12 Q4FY11 Q4FY12 Net Interest Income 651 565 688 Other Income 282 248 254 Net Total Income 933 813 942 Employee Cost 226 218 225 Other Operating Expenses 263 227 272 Operating Expenditure 489 445 497 Operating Profit 444 368 445 Provision & contingencies 31
Slide 20: Bank Segment performance
Bank Segment performance ` cr FY03 FY07 FY08 FY09 FY10 FY11 FY12 Corporate/Wholesale Banking $ - 214 334 225 386 544 997 Retail Banking $ 58 (42) 62 71 61 339 566 Treasury & BMU* 14 31 (3) 130 367 305 35 Unallocated Income (2) - 5 - (3) - 2 Total 70 203 398 426 811 1,188 1,600 Bank Segment performan
Slide 21: Bank Advances & Investments
Bank Advances & Investments ` cr FY03 FY07 FY08 FY09 FY10 FY11 FY12 Commercial vehicles & Construction equipment 713 2,578 3,629 3,335 4,414 6,251 7,798 Agriculture Finance - 678 1,664 2,365 3,089 4.220 5,714 Mortgage loans - 1,753 2,640 3,300 4,712 6,877 8,333 Personal loans 188 1,955 2,896 2,262 1
Slide 22: Bank Balance Sheet
Bank Balance Sheet ` cr FY03 FY07 FY08 FY09 FY10 FY11 FY12 Net Worth 542 1,633 3,536 3,814 4,485 6,796 7,946 Deposits 257 11,000 16,425 15,645 23,886 29,261 38,537 CA 50 2,109 3,152 3,418 4,992 5,460 7,352 SA - 887 1,518 1,701 2,471 3,331 5,050 Term Deposit 207 5,106 8,701 8,758 12,037 15,388 22,531
Slide 23: Consumer Banking - Liabilities
Consumer Banking - Liabilities No of Branches / ATM’s 500 Branches in CY13 400 848 900 350 710 800 Increased cross sell of 700 300 asset products 492 600 250 387 500 313 Savings account interest 200 355 400 deregulation positive 150 321 impact 135 249 300 100 217 o savings balances 178 200 o n
Slide 24: Consumer Banking - Assets
Consumer Banking - Assets Advances break up Focus on SENP and cross 1% 1% 4% 3% 3% 4% sell to bank branch 10% 8% 10% 8% 27% 29% 22% Continued focus on Auto Sector 37% 39% 39% 24% 30% 25% Mortgages growth in select 90% territories Selective growth in personal 48% 50% 50% 49% 45% 44% loans C
Slide 25: Commercial Financing
Commercial Financing Advances break up Focus on Bharat 6% 8% 5% 14% 15% 10% (semi urban / rural areas) 18% 17% 15% 12% 24% 34% Asset focused branches in rural areas 34% 32% 33% Priority sector target met 86% consistently 77% 61% 58% 48% 48% 45% Consistent growth in Agri Gold loans launched
Slide 26: Wholesale Banking
Wholesale Banking Funded & Non funded (` cr) Largely Working Capital 14,354 YoY Focus on quality end of credit 11,084 30% curve 8,207 Continued focus on 7,482 6,490 Transaction Banking o Vendor Financing, CMS 4,316 4,393 4,594 and Operative Accounts 3,232 o Focus on FX flows with 1,819 927 inc
Slide 27: Kotak Mahindra Prime
Kotak Mahindra Prime ` cr Q3FY12 Q4FY11 Q4FY12 FY11 FY12 Total income 474 365 470 1,373 1,805 Profit before tax 152 130 143 482 570 Profit after tax 104 87 97 318 385 ` cr FY03 FY07 FY08 FY09 FY10 FY11 FY12 Total Advances 1,756 4,093 5,903 5,571 8,311 11,145 13,386 Car Advances 1,756 3,326 4,736 4,6
Slide 28: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance Gross Premium (` cr) All past losses recovered now 51 357 585 1,000 104 1,534 1,722 Traditional / ULIP a healthy 1,773 47 132 mix now 32 148 19 221 188 288 Healthy solvency ratio 248 499 943 280 354 1,176 374 925 Focus on long term savings 685 436 and protection
Slide 29: Kotak Mahindra Life Insurance cont’d
Kotak Mahindra Life Insurance cont’d PAT (` cr) AUM (` cr) 203 9,724 8,592 101 6,710 69 3,941 14 3,011 1,766 FY03 FY07 FY08 FY09 FY10 FY11 FY12 115 (42) (58) (72) FY03 FY07 FY08 FY09 FY10 FY11 FY12 Branches Sum Assured (` ‘000 cr) 214 164 197 202 204 130 150 92 74 74 42 30 24 2 FY03 FY07 FY08 FY09 F
Slide 30: Kotak Securities
Kotak Securities Market ADV (` ‘000 cr) ADV (` cr) - KS 0.4 4 7 5,301 16 4,648 1 35 77 3,925 4,034 96 3715 26 45 3,293 29 38 4 39 31 12 20 16 23 19 14 200 FY03 FY07 FY08 FY09 FY10 FY11 FY12 Cash Future Option FY03 FY07 FY08 FY09 FY10 FY11 FY12 ` cr Q3FY12 Q4FY11 Q4FY12 FY11 FY12 Total income 134 169
Slide 31: Kotak Mahindra Capital Co.
Kotak Mahindra Capital Co. Client Transaction Size (USD mn) Institutional Placement Programme (IPP) 94 Private equity investment by Wolfensohn Capital and FMO 26 Lead Managers to Tax Free Bond issues ND Lead Manager to Tax Free Bond issue ND Sale of block in Kotak Mahindra Bank 280 ` cr Q3FY12 Q4FY1
Slide 32: Kotak Mahindra Asset Management
Kotak Mahindra Asset Management AUM ` 47,850 cr AUM ` 45,977 cr PMS PMS Insurance 4% Insurance 3% 17% Domestic 21% Domestic MF Debt MF Debt Offshore 43% 41% Funds Offshore 18% Funds 17% Alternate Domestic Alternate Domestic Asset MF Equity Asset MF Equity 11% 7% 10% 8% Mar 31, 2011 Mar 31, 2012 32
Slide 33: Kotak Mahindra AMC and Trustee Co.
Kotak Mahindra AMC and Trustee Co. Average Assets Under Management ` cr Close to 9.6 lac folios 34,880 30,472 30,766 83 Branches 19,740 18,127 Regulatory challenges 12,835 FY07 FY08 FY09 FY10 FY11 FY12 ` cr # Q3FY12 Q4FY11 Q4FY12 FY11 FY12 Total income 27 33 27 119 125 Profit before tax 4 5 4
Slide 34: Kotak Investment Advisors
Kotak Investment Advisors Reality Fund Private Equity Fund Corpus advised / managed – Corpus advised / managed – ` 2,981 cr ` 2,030 cr 49 Investments 33 Investments Domestic realty funds raised during FY12 - committed corpus ` 509 cr Propose to launch Infrastructure fund with SMBC and Brookf
Slide 35: Bank Awards & Recognition
Bank Awards & Recognition Best Companies to work for 2010& 2009 by Great places to work Institute India Best Private Bank by Finance Asia Country Best Local Cash Management Bank Asia Money 2011 and 2010 “The ingenious 100” Award by IDG India’s CIO Magazine for Storage Virtualization & Ingenious Tech
Slide 36: Awards & Recognition
Awards & Recognition Lipper Fund Award 2011 for Kotak Bond Regular – ‘Best Fund over 10 years Bond Indian Rupee’ Best Debt Fund House of the year 2009 Outlook Money NDTV Profit Awards 2009 & 2010 Best Broker in India 2010 2011:Best Investment Bank in India (Sixth year in a row) 2011: Best Domestic E
Slide 37: 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 38: 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 39: 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 40: 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