Axis Bank Limited · NSE:AXISBANK
Axis Bank — Q4 FY2023 Earnings Presentation
102 slides from Axis Bank's earnings presentation, Apr 27, 2023
Slide 1: Exchange filing cover letter
AXIS/CO/CS/54/2023-24 April 27, 2023 Listing & Compliance Department Listing Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor 1st Floor, P. J. Towers, Bandra-Kurla Complex Dalal Street Bandra (E), Mumbai 400 051 Fort, Mumbai 400 001 NSE Symbol: AXISBANK BSE S
Slide 2: Press release: financial results for quarter and year ended 31 March 2023
PRESS RELEASE AXIS BANK ANNOUNCES FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31st MARCH 2023 For Q4FY23 (excluding exceptional items*) - PAT at `6,625 crores up 61% YOY, consolidated ROA (annualized) at 2.18%, and consolidated ROE (annualized) at 21.58%, driven by strong all round operating pe
Slide 3: Performance at a Glance
Performance at a Glance FY23 o NIM at 4.02%, improved by 55 bps YOY o NII grew 30% YOY; Fee income grew 25% YOY, Core operating profit grew 40% YOY o PAT (excluding exceptional items) at `21,933 crores, up 68% YOY o Consolidated ROE (excluding exceptional items) at 18.84%, up 517 bps YOY, subsidiari
Slide 4: Profit & Loss Account: Period ended 31st March 2023
Profit & Loss Account: Period ended 31st March 2023 Core Operating Profit and Net Profit The Bank’s core operating profit for the quarter grew 46% YOY to `9,084 crores. Operating profit for Q4FY23 grew 42% YOY to `9,168 crores. Net profit (excluding exceptional items) at `6,625 crores in Q4FY23 grew
Slide 5: Balance Sheet: As on 31st March 2023
30% YOY to `32,048 crores from `24,742 crores. Total provisions for FY23 stood at `2,653 crores, down 64% over the same period last fiscal. Net Profit for FY23 (excluding exceptional items) grew 68% to `21,933 crores from `13,025 crores in FY22. Reported net profit for FY23 de-grew by 26% YOY to `9,
Slide 6: Digital focus and partnerships
• 70% - SA accounts opened through tab banking in Q4FY23 • 70% - Retail term deposits (by volume) opened digitally in Q4FY23 The Bank’s focus remains on reimagining end-to-end journeys and transforming the core and becoming a partner of choice for ecosystems. Axis Mobile is among the world’s* highes
Slide 7: Asset quality, network and provisions
Gross slippages during the quarter were `3,375 crores, compared to `3,807 crores in Q3FY23 and `3,981 crores in Q4FY22. Recoveries and upgrades from NPAs during the quarter were `2,699 crores. The Bank in the quarter wrote off NPAs aggregating `2,429 crores. As on 31st March, 2023, the Bank’s provis
Slide 8: Financial Performance Q4FY23
` crore Financial Performance Q4FY23 Q4FY22 % Growth FY23 FY22 % Growth Net Interest Income 11,742 8,819 33% 42,946 33,132 30% Other Income 4,895 4,223 16% 16,501 15,221 8% - Fee Income 4,676 3,758 24% 16,216 13,001 25% - Trading Income 83 231 (64%) (242) 1,626 - - Miscellaneous Income 136 234 (42%)
Slide 9: Business Performance
` crore As on As on Business Performance % Growth 31st March’23 31st March’22 Total Deposits (i)+(ii)** 9,46,945 8,21,972 15% (i) CASA Deposits 4,46,536 3,70,006 21% - Savings Bank Deposits 2,97,416 2,42,449 23% - Current Account Deposits 1,49,120 1,27,557 17% CASA Deposits as % of Total Deposits 47
Slide 10: Safe Harbor
A presentation for investors is being separately placed on the Bank's website: www.axisbank.com. For press queries, please contact Ms Piyali Reddy at 91-22-24252021 or email: Piyali.Reddy@axisbank.com Safe Harbor Except for the historical information contained herein, statements in this release whic
Slide 11: Investor Presentation
Investor Presentation Quarterly Results Q4FY23 NSE: AXISBANK BSE: 532215 LSE (GDR): AXB
Slide 12: Axis Bank at a glance
Axis Bank at a glance 3rd 41 mn+ ~91,900 4,903 Axis Bank largest Private Bank in Customers Employees Branches* India Traditional Banking Segment Digital Banking Segment Market Share 5.4% 5.1% 6.0% 18% 17% 14% 3 Assets 1 Deposits 2 Advances 2 UPI Mobile 3 Credit Cards ^^ Profitability 4.22% 2.25% 2.9
Slide 13: Three core areas of execution to move forward on our GPS strategy
Three core areas of execution to move forward on our GPS strategy A Deepening a performance driven culture i. Lifted the growth trajectory across business segments ii. Improving profitability metrics iii. Fostering a winning mindset B Strengthening the core i. Built a strong balance sheet ii. Buildi
Slide 14: Surpassed our aspirational ROE target and structurally improved NIMs
A Surpassed our aspirational ROE target and have structurally improved NIMs to deliver stronger, consistent and sustainable earnings in the last 4 years 0.39% 81% 14.02% Strengthened the Net PCR^ NPA CET 1 Bank significantly 2.06% 62% 11.27% 18.84% 4.02% Core Op 19% Improved profitability Cons. NIM
Slide 15: Lifted growth trajectory across business segments
A Lifted growth trajectory across business segments CASA deposits Loan growth Credit cards Market Share Burgundy AUM Rs Tn In Mn 37% YOY 21% YOY 4 4yryrCAGR^ CAGR Rs Tn 3.57 16% CAGR^ 4.5 28% CAGR^ 14.2% 2.61 3.7 20.8% 12.7% 2.13 12.3% 3.2 14.9% 1.47 11.5% 1.33 2.6 9.5% 2.4 Mar'19 Mar'20 Mar'21 Mar'
Slide 16: Our winning mindset is reflected in multiple awards and recognitions
A Our winning mindset is reflected in multiple awards and recognitions… Won “Best Private Bank for Client Won “Retail Banker’s International Won “Finnoviti Award for Project Best BFSI Customer Customer engagement initiative Acquisition, Asia”, 5th Annual Asia Trailblazer”, for use of AI & ML Maximus
Slide 17: Many 'all-time highs' across different segments
…substantiated by many ‘all-time highs’ across different segments New savings account opened New credit cards issued Overall retail disbursements (in mn) (in mn) (indexed) 8% YOY 57% YOY 14% YOY 4.20 4.68 4.34 211 3.55 185 2.67 2.95 2.84 1.96 1.94 125 125 100 0.99 FY19 FY20 FY21 FY22 FY23 FY19 FY20
Slide 18: Strong momentum in Retail Bank across all businesses
A Strong momentum in Retail Bank across all businesses Deposits^^ Burgundy Wealth Cards and Payments management ^^ Retail loans^^ Bharat Banking • 15% YOY growth in overall • 3.6 trillion Burgundy • 22% YOY growth in retail • 17% incremental market • 26% YOY growth in MEB total deposits assets under
Slide 19: Comprehensive Wholesale Banking franchise for our customers
A Amongst the best and most comprehensive Wholesale Banking franchise for our customers Growth in focus Project Neo Transaction Banking Leadership in DCM One Axis segments Digital transformation • 24% YOY growth in • 11.1% Foreign LC • 18% market share in • Deliver One Axis by being • Market leading
Slide 20: Self sustaining capital structure, asset quality adequately dealt with
B Self sustaining capital structure, asset quality adequately dealt with Includes 44 bps 2.65% 1.96% 0 towards assets acquired 81% 75% 1.91% 72% 69% 15.24% PCR 62% 14.02% 5.26% 4.86% 3.70% 2.82% 2.06% 2.02% 1.56% 1.05% 0.73% 0.39% CET-1 Mar'22 Accretion Consumption CB Acquisition CET-1 Mar'23 Mar-19
Slide 21: Building next generation technology architecture
B Building next generation technology architecture ▪ Cloud-first, Cloud-native architecture leading to leadership in Cloud adoption with 76 apps on Cloud Modernizing the Core ▪ 38% increase in new apps adopting cloud in FY23; 100+ containerized environments for micro services ▪ Reduction in infra p
Slide 22: Cloud adoption leading to significant outcomes
B Cloud adoption leading to significant outcomes Architecture & Security 38% 3000+ Increase in new apps adopting Virtual Machines running across cloud in FY22-23 multiple operating system 50+ 10+ Reference architecture created Standard Security Document created 96%+ 98%+ for Cloud services with S
Slide 23: Organization wide transformation projects have accelerated our GPS journey
B Organization wide transformation projects have accelerated our GPS journey Triumph (Liabilities) Zenith (Credit Cards) Unnati ( Retail Assets) 870 bps 4.2 mn 2.1 times YOY improvement in Credit Cards issued in FY23 Retail disbursements in FY23 by premium retail SA mix value as compared to that in
Slide 24: Digital: Early traction visible, our relentless focus continues
C Digital: Early traction visible, our relentless focus continues We are investing heavily in building capabilities… …and introduced re-imagined customer journeys …that has led to improvement in digital adoption and new innovative offerings … Digital transactions * (%) 95% 91% 1,750+ 390+ 88% People
Slide 25: 'Bharat Banking' strategy has been scaling up well
C ‘Bharat Banking’ strategy has been scaling up well Customer centric framework that is connecting all parts of the Bank Drive higher business growth and increase market share in Rural and Semi Urban markets through asset led liability strategy • Lending opportunities in RuSu markets to complement t
Slide 26: ESG has Bank-wide sponsorship
C ESG has Bank-wide sponsorship Our Purpose Statement: Banking that leads to a more inclusive and equitable economy, thriving community and a healthier planet Steady Performance on Global ESG Benchmarks Environmental Social Governance Above 80th percentile among global banks on DJSI in 2022 ~14,600
Slide 27: Subsidiaries' Performance
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment Performance Asset Quality Sustainability Subsidiaries’ Performance Other Important Information Quarterly Results Q4FY23 17
Slide 28: Major highlights
Major highlights Q4FY23 (excluding Exceptional Items*) – PAT at `6,625 crores, up 61% YOY, consolidated ROA at 2.18%, consolidated ROE at 21.58%, driven by strong all round operating performance • Net Interest Income grew 33% YOY and 2.5% QOQ, Net Interest Margin at 4.22%, up by 73 bps YOY Strong op
Slide 29: Key metrics for Q4FY23
Key metrics for Q4FY23 Snapshot (As on 31st March 2023) Absolute (` Cr) QOQ | YOY Growth Deposits** 15% YOY Advances 19% YOY Q4FY23 Q3FY23 FY23 Q4FY23 Q4FY23 FY23 23%YOY1 Net Interest Income 11,742 11,459 42,946 2% 33% 30% Fee Income 4,676 4,101 16,216 14% 24% 25% Operating Expenses 7,470 6,847 27,3
Slide 30: Consistent improvement in shareholder return metrics
We have delivered consistent and robust improvement in the shareholder return metrics… Trend in Consolidated ROA and ROE Trend in Consolidated ROA and ROE (excluding Exceptional Items*) (Reported) 1.8% 1.4 0% 1.3% 2.0 0% 1.2 0% 0.9% 1.8 0% Consolidated ROA 1.6 0% 1.3% 1.0 0% 0.7% 1.4 0% 0.8 0% 0.7%
Slide 31: Financial Highlights
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment Performance Asset Quality Sustainability Subsidiaries’ Performance Other Important Information Quarterly Results Q4FY23 21
Slide 32: Deposit and Loan growth performance
Deposit and Loan growth performance All figures in ₹ Billion Deposit* mix (QAB)^ Segment loan* mix YOY QOQ Domestic loan growth at 23% YOY & 13% QOQ YOY QOQ 8,453 19% 11% 11% 6% 8,524 7,623 7,833 7,847 8,034 7,079 7,311 7,664 7,013 2,650 14% 6% 1,816 24% 13% (31%) 1,546 1,608 (21%) 2,506 NRTD 1,470
Slide 33: Trend in CASA growth
Trend in CASA growth Average QAB CASA growth (YOY) ** 18% 19% 12% 12% 13% 16% CAGR# 374,131 330,227 276,756 120,015 235,177 104,544 16% CAGR# 209,676 87,846 74,312 66,709 15% CAGR# 225,683 254,116 160,865 188,910 142,967 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 SA QAB CA QAB #Mar-19 to Mar-23 CA QAB as %
Slide 34: Core operating profit up 46% YOY, PAT up 61% YOY
Core operating profit up 46% YOY, PAT (excluding exceptional items) up 61% YOY All figures in ₹ Crores Operating revenue Operating expense Opex to Assets 2.25% annualized 2.17% 2.24% 2.25% 2.24% YOY QOQ 16,125 16,637 28% 3% 32% Opex YOY 23% 14% 14% 14,301 growth 8% 13,042 12,383 4,666 4,895 (a) 7,47
Slide 35: Net interest margin improved 73 bps YOY
Net interest margin improved 73 bps YOY Advances mix by rate type Cost of Funds MCLR Duration Split 32% (Mar-23) 2% ~ 68% of loans floating 4.75% 1%4% 1M 2% 20% 3M, 2% 4.34% 4.10% 4.09% 6M, 5% 3.97% 3.87% 3.83% 3.89% 3.77% 41% 12M, 11% Repo linked MCLR linked Other EBLR* Base Rate linked Q4FY21 Q1FY
Slide 36: NIM improvement led by structural drivers
NIM improvement led by structural drivers across the businesses 1 Improvement in balance sheet mix 2 Reducing share of low yielding RIDF bonds 3 Improvement in composition reflected through improvement in average CASA % Retail & SME as % of loan book 69% As a % to total assets 67% 5.1% 4.7% 64% 3.5%
Slide 37: Strong growth in fees; granularity built across segments
Strong growth in fees; granularity built across our business segments All figures in ₹ Crores Retail Banking fees Retail fee mix 31% YOY 14% QOQ 43% 42% 37% 3,227 26% 2,612 2,819 19% 22% ^ 19% 18% 18% 18% 20% 18% 2,463 2,375 TPP Retail Cards & Payments Retail Assets excl cards & Retail Liabilities &
Slide 38: Cost growth at 14% YoY
Cost growth at 14% YoY; integration expenses contribute 2% to YoY growth; continue to invest in technology and growth related businesses; YoY Incremental Opex in Q4FY23 was led by volume linked 28% 34% 22% 16% expenses and Growth Business 199 142 305 Incremental YOY cost break up 248 (Rs 893 Crore)
Slide 39: Capital and Liquidity Position
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment Performance Asset Quality Sustainability Subsidiaries’ Performance Other Important Information Quarterly Results Q4FY23 29
Slide 40: Strong capital position with adequate liquidity
Strong capital position with adequate liquidity Bank’s Capital Adequacy Ratio Liquidity Coverage Ratio (consolidated) 140% 129% 130% 19.12% 121% 121% 18.54% 17.64% 120% 116% 115% 116% 117% 116% 17.53% 114% 15.84% 3.72% 3.30% 4.19% 3.62% 110% 15.40% 15.24% 4.57% 100% 14.02% 13.34% 90% 11.27% 80% 70%
Slide 41: Business Segment Performance
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment Performance Asset Quality Sustainability Subsidiaries’ Performance Other Important Information Quarterly Results Q4FY23 31
Slide 42: Retail Banking
Retail Banking ~29 Mn 4th `3.57 Tn SA customers Largest issuer of AUM in wealth Credit Cards management 22% 26% 58% YOY growth in YOY growth in Share of Retail advances** Rural advances Advances~ 23% 47% 69% YOY Growth in SA CASA ratio Share in MEB* deposits** (MEB*) total fee^ ~ share in Bank’s tot
Slide 43: Our deposit franchise continues to grow faster than the industry
Our Deposit franchise continues to grow faster than the industry 15% Continue to focus on improving the franchise quality further 10% 1 “Right fit” customers to accelerate ‘Premiumization’ • ~870 bps YOY increase in share of Premium segment in Retail SA portfolio 2 Higher digital channel contributio
Slide 44: Steady growth in SA deposits with premium segment mix
Steady growth in SA deposits with 870 YOY bps increase in premium segment mix • Continue to maintain sharp focus on quality of NTB2 acquisitions; Branch channel continued its focus on deepening ETB2 relationships • Premiumization strategy focuses on improving account quality of overall balances whil
Slide 45: Rs 4.9 trillion Retail loan book remains well diversified
Rs 4.9 trillion Retail loan book remains well diversified ~ 78% of our retail book is secured in Rs Crores Mar-23** QOQ YOY % Prop Retail book** (in ₹ Billion) Home Loans 1,57,392 7% 10% 32% Rural loans 70,918 19% 26% 15% Disbursement mix in retail 25% 22% loans 23% Personal loans 54,561 8% 21% 11%
Slide 46: Small Business Banking segment is well diversified
Small Business Banking segment is well diversified and continues to grow strongly… SBB portfolio (Cr.) Well diversified customer 50% YOY • ~`43,000 crores overall book with Business base 12% QoQ Loan book of +`10,300 crores 42,982 • 78% value contribution from Secured products (working capital, over
Slide 47: Led by innovative product offerings and transformation initiatives
…led by our innovative product offerings and transformation initiatives One Axis approach • Platinum & Bharat Bank franchise driving branch growth ‘SBB Sankalp’ project to further improve efficiencies and deliver superior TATs • Synergies with Merchant Acquiring by re-imagining and digitizing underw
Slide 48: Rural portfolio is well diversified
Rural portfolio is well diversified, offering holistic and integrated financial solutions by leveraging technology and partnerships Well diversified rural lending portfolio with … focused on capitalizing opportunities Higher in customer engagement led to broad base growth from ETB relationships … an
Slide 49: Highest ever number of Credit Cards issued during the quarter
Highest ever number of Credit Card’s issued during the quarter Increase in Cards in force (CIF) market share with increasing card issuances aided by KTB^ partnerships ~1mn cards issued for 5th consecutive quarter 32% share of KTB1 sourcing to total card issuances in FY23 1.11 1.13 2 1.04 1.04 0.99 1
Slide 50: Flipkart Axis Bank Credit Card
End to End Digital KTB acquisition journey with best in class early activation and spend metrics for Flipkart Axis Bank Credit Card Customer clicks on Customer fills up the Flipkart Axis Bank form and submits the Credit card banner application and can view details 3.58 mn CIF for Flipkart Axis Bank
Slide 51: Retail spends market share up ~200 bps YOY
Retail spends market share up ~200 bps YOY, with spends up 76% YOY All figures In ₹ Cr ‘GRAB DEALS’, Axis Bank's exclusive shopping platform has scaled up significantly 40% YOY increase in GMV (Q4FY23) 23% YOY growth in Q4FY23 transactions Trend in Credit Card spends market share Trend in Debit Card
Slide 52: 2nd largest Merchant Acquiring Bank
We are the 2nd largest Merchant Acquiring Bank led by ‘One Axis’ focus, improved product capabilities and partnerships Market share in POS terminals One Axis approach – Taking Bank to Merchant Curated solution offerings : Payment solutions, Deposits, Business loans, Rank 2nd 2nd 2nd 2nd 2nd Credit C
Slide 53: Digital Dukaan and MicroPay POS Solution
Empowering merchants through Integrated Ecosystem solutions DIGITAL DUKAAN MicroPay POS Solution Android POS with advanced solutions Features • Easy Store Management • Accepts Visa, MasterCard, RuPay Cards and Bharat QR(including UPI) • Generate Bills • Multiple Payment Modes • Accepts Contactless w
Slide 54: Leading player in India's Wealth Management space
The Bank is a leading player in India’s Wealth Management space All figures In ₹ Cr Overall Burgundy AUM^ has grown steadily ** 29% CAGR* 37% YOY 357,447 Burgundy Private adjudged as “Best 260,768 Private Bank” for 213,085 Client Acquisition, 147,002 Asia 123,298 132,702 79,127 Mar-17 Mar-18 Mar-19
Slide 55: Very well distributed branch network
We have a very well distributed branch network Domestic branch network* Branch presence across categories Axis Virtual Centre 4,903 4,758 4,528 4,594 16% 31% ~8.1 mn 6 Customer Centers connect ^ 30% 1500+ 23% Virtual RMs Mar-20 Mar-21 Mar-22 Mar-23 Metro Urban Semi-Urban Rural * Includes extension c
Slide 56: Corporate & Commercial Banking
Corporate & Commercial Banking 24% 23% 38% YOY growth in YOY growth in YOY growth in Domestic corporate SME loan book Mid Corporate book loans 29% 89% 89% Share of short Share of corporate Incremental sanctions term loans to overall advances to clients to A-and above** corporate loans rated A-and ab
Slide 57: Recognized as the 2022 Greenwich Quality Leader
Recognized as the ‘2022 Greenwich Quality Leader’ for 2nd consecutive year 2022 Greenwich Excellence Awards for 2022 Greenwich Excellence Awards for Indian Market Penetration - Local Banks Indian Indian Large Corporate Banking Middle Market Banking Middle Market Banking • Ease of Doing Business • Fr
Slide 58: Relationship led franchise driving synergies across One Axis entities
Strong relationship led franchise driving synergies across One Axis entities… We have re-oriented the organisation structure in Corporate & Commercial Banking for delivering execution excellence • Segregated the responsibilities of coverage and product groups to ensure sharper focus • Corporate & Co
Slide 59: 89% of the book rated A- and above
…with 89% of the book rated A- and above All figures in ₹ Crores Incremental sanctions to corporates 89% of the corporate loan book is rated A- & above rated A- or better 17% 15% 12% 11% 67% of book as on 65% of sanctions 31.03.2023 is rated were to those rated AA- & above AA- & above 95% 94% 92% 83
Slide 60: Overseas Corporate loan book is 96% India linked
Overseas Corporate loan book is 96% India linked • The Bank’s International strategy is to focus on Indian corporates that have global operations • We have consolidated our overseas business through branches in Dubai, Singapore and Gift City, India Overseas corporate loan book Funding is primarily f
Slide 61: Strengthened proposition as a Transaction Bank
We have strengthened our proposition as a Transaction Bank Current Account Digital Adoption 73% Current Account customers 17% YoY growth in Current Account Balances registered for internet/mobile banking Foreign LC Market Share Forex Turnover Market Share Increase in Market Share Increase in Market
Slide 62: Well placed to benefit from a vibrant Corporate Bond market
We remain well placed to benefit from a vibrant Corporate Bond market All figures in ₹ Crores Placement & Syndication of Debt Issues Movement in corporate bonds 22% Amount mobilized / arranged^ Market share and Rank* 20% 20% 21% 19% 56,051 54,977 34% YOY 1st 1st 45,144 44,990 41,784 103,058 76,899 1
Slide 63: Project NEO launches demonstrate strong product-market fit
Project NEO launches continue to demonstrate strong product- market fit across customer adoption and market recognition APIs power multiple archetypes of integration & continue to grow 3x TRANSACTION Large complex VOLUME ▪ Market leading depth and breadth of organizations Transaction Banking APIs ▪
Slide 64: Industry-wise Distribution (Top 10)
Industry-wise Distribution (Top 10) All figures in ` Crores Outstanding1 as on 31st Mar’23 Total Non-fund Rank Advances Investments based Sectors Value (in % terms) 1. Financial Companies2 57,928 30,453 20,312 1,08,693 10.30% 2. Engineering & Electronics 17,479 1,861 36,143 55,483 5.26% 3. Infrastru
Slide 65: Business Performance: Commercial Banking
Business Performance Commercial Banking
Slide 66: Strong growth in SBB+SME+MC book
Strong growth in SBB+SME+MC book despite tightening our risk standards 20% 18% 15% 14% 30% CAGR* 30% CAGR in combined MSME, MC and SBB segment since Mar’20 36,512 41% CAGR* 26,481 22% CAGR* 17,148 92,723 13,117 75,223 59,034 15.5% 51,620 46% CAGR* Axis Bank’s Incremental MSME 42,982 17,859 28,617 ma
Slide 67: Commercial Banking benefitting from technology led transformation
Commercial Banking business benefitting from technology led transformation • One of the most profitable segments of the Bank with high PSL coverage • Data driven credit decisions, minimal documentation, simplified products and digitized operations aiding higher business growth CBG Advances New to Ba
Slide 68: SME lending book is well diversified
SME lending book is well diversified Book by Loan size Well diversified Geographical mix Well diversified Sectoral mix 17% 14% 26% 26% 23% 2% 9% 31% 16% 2% 8% 10% 3% 17% 3% 7% 2% 3% 12% 15% 4% 5% 29% 4% 4% 4% 4% Trade Retail and Wholesale Food and Beverages West 1 West 2 Textile Engineering Others L
Slide 69: Digital Banking
Digital Banking 95% 82% 76% 70% 70% 58% 4.8 @ Digital Credit cards New MF SIP New SA Individual RTDs PL disbursed Mobile App transactions^^ issued** (Q4FY23) acquisition* (end-to-end digital) D2C products volume (Q4FY23) volume (Q4FY23) (in Q4FY23) ratings 250+ 18% 17% ~12 Mn 113100+ ~2990 300+ Serv
Slide 70: Our digital strategy is aligned with our GPS strategy
Our digital strategy is aligned with our GPS strategy A B C Reimagine Customer Transform Build Future-ready Proposition the Core Capabilities Digital-first products Ops excellence & institutionalization of Data architecture 3.0; moving embedding design thinking data & tech enabled operating rhythm b
Slide 71: New products driven by our OPEN philosophy
We continue to introduce and scale new products driven by our OPEN philosophy Our product portfolio Recent launches in last few quarters Buy Now Paylater Merchant Cash Advance Cards lifecycle Auto loan O/W Remittance GrabDeals Insurance 2.0 CA Sole Propreitor 0-based redesign; Ecosystems capable; Nu
Slide 72: We are investing heavily in building capabilities
We are investing heavily in building capabilities Building the right talent Enabling the team through technology • 1750+ people dedicated to technology agenda • Fully cloud ready: new customer facing applications as cloud native • ~390 member full service inhouse team: • CI-CD pipeline in place; usi
Slide 73: Leadership in technology with several industry firsts
Leadership in technology with several industry firsts 1st 1st Cloud 1st 800 Indian Bank to be Bank to hollow the Only among peers to Best-in-class member of core for elite have 3 Enterprise BitSight* rating in BFSI, merchants on UPI grade landing zones better than 90% of the Banking Industry Finance
Slide 74: Best-in-class personalization and alternate data
Built best-in-class personalization capability and are leveraging alternate data to scale up our customer centric franchise Building data stack 3.0 for next level of analytics and have created service data lake for enhanced customer experience Data Stack 3.0 - Cloud Personalization – 10k+ nudge vari
Slide 75: World's highest rated Mobile Banking App
World’s highest rated Mobile Banking App, doubling up as our largest branch Bank on-the-go with Axis Mobile App Store Rating Hyper personalized | Intuitive | Seamless 4.8 Highest rating of 4.8 on Google Play Store with 2 mn+ reviews across 59 4.6 global banks, 8 global neo banks and 50 Indian fintec
Slide 76: UPI has scaled up tremendously
UPI has scaled up tremendously to become a key channel for customer transactions We have developed best-in-class UPI stack that enables us to offer cutting edge customized solutions across SDK, Intent, Collect and Pay offerings apart from new use cases like UPI AutoPay Dedicated IT cloud infrastruct
Slide 77: Partnerships as a channel to expand customer base
Partnerships as a channel has significant potential to expand our customer base We have 95+ Partnerships across Platforms and Ecosystems Product Specific (API banking) Transaction banking (White-labelled banking) • Channel to acquire & service customers, complete customer ownership with Bank • Banki
Slide 78: Asset Quality
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment Performance Asset Quality Sustainability Subsidiaries’ Performance Other Important Information Quarterly Results Q4FY23 68
Slide 79: Stable asset quality visible across all segments
Stable asset quality visible across all segments GNPA at 2.02% & NNPA at 0.39% Segmental composition improving sequentially and YOY Retail CBG WBG Total 66%^ 71%^ 91%^ 81%^ 2.82% 2.76% 2.50% 2.38% 2.02% 3.23% 0.73% 0.64% 1.44% 2.02% 0.51% 0.47% 0.39% 1.12% 0.49% 0.33% 0.31% 0.39% Q4FY22 Q1FY23 Q2FY2
Slide 80: Legacy asset quality issues adequately addressed
Legacy asset quality issues adequately addressed Overall Credit Costs: FY10 to FY23 3.57% 3.53% Trend in BB corporate book Credit Cost 7.29% (Fund based as % of GCA) 2.82% Net Credit Cost 2.78% 2.15% 1.32% 1.91% 1.87% 0.38% 1.89% 1.35% 1.56% 1.68% Jun'16 Mar'19 Mar'23 Long term (FY03 to FY22) 1.11%
Slide 81: Detailed walk of NPAs over recent quarters
Detailed walk of NPAs over recent quarters All figures in ₹ Crores Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Gross NPAs - Opening balance A 23,301 21,822 21,037 19,894 19,961 Gross NPAs acquired from Citi B - - - - 396 Fresh slippages C 3,981 3,684 3,383 3,807 3,375$ Upgradations & Recoveries D 3,763 2,957
Slide 82: Sustainability
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment Performance Asset Quality Sustainability Subsidiaries’ Performance Other Important Information Quarterly Results Q4FY23 72
Slide 83: Committed to Positive Climate Action and Achieving the SDGs
Committed to Positive Climate Action and Achieving the SDGs • Axis Bank is the first Indian Bank to constitute a standalone ESG Committee of the Board • In September 2021, the Bank announced commitments aimed at supporting India’s low-carbon and equitable economic transition • The Bank’s commitments
Slide 84: Striving for Operational Excellence
Striving for Operational Excellence Committed to reducing our operational carbon footprint The Bank’s 3 largest offices in Mumbai and Bangalore are running on 100% renewable power 7.05 MW functional captive solar power capacity at close to 250 locations*, helping avoid approximately 3,066 tCO2e annu
Slide 85: Subsidiaries' Performance
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment Performance Asset Quality Sustainability Subsidiaries’ Performance Other Important Information Quarterly Results Q4FY23 75
Slide 86: Significant value creation in key group entities
Significant value creation happening in our key group entities Detailed One Axis presentation Link Invst Banking Consumer Retail Fintech Asset Management Trustee TReDS platform Insurance & Inst Equities focused NBFC Brokerage platform One of the fastest Leadership position in AAA rated NBFC with 3rd
Slide 87: Axis Finance: PAT up 30% YOY, Retail book up 67% YOY
Axis Finance : PAT up 30% YOY, Retail book up 67% YOY All figures in ₹ Crores Growth in AUM 43% CAGR** Major Highlights 35% YOY 22,529 • 67% YOY growth in Retail book, retail mix up ~796 bps YOY to 41% as of Mar’23 17,059 9,495 5,694 (41%) • 18.6% YOY growth in Wholesale loan book 7,816 11,089 251 1
Slide 88: Axis AMC: PAT up 16% YOY
Axis AMC : PAT up 16% YOY All figures in ₹ Crores Overall QAAUM Equity QAAUM 28% CAGR* 32% CAGR* 259,818 241,415 143,546 137,074 196,549 98,822 138,402 89,720 61,968 44,486 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 * CAGR for period Mar-19 to Marc-23 66% CAGR* Trend in PA
Slide 89: Axis Capital: Volatile markets weighed on deal activity
Axis Capital : Volatile markets weighed on deal activity FY23 Ranking* (includes IPO, FPO, QIP, REIT, OFS & Rights) Major Highlights Rank Banker No of Deals* • 42 IB deals closed in FY23 that include 11 IPOs, 2 QIPs, 4 SF 1 Axis Capital 18 Syndication, 6 M&A and 3 Private Equity 2 Peer 1 16 • ~12.2%
Slide 90: Axis Securities: Strong growth in new customer additions
Axis Securities : Strong growth in new customer additions Total customer base (in mn) 17% YOY 3rd largest bank led retail brokerage in terms of customer base 23% CAGR* Major Highlights 4.86 4.17 • 28% YOY growth in new clients added during FY23 3.63 • 59% of the volumes in FY23 was from Mobile tradi
Slide 91: A.TREDS: Invoicemart setting a new benchmark in TReDS
A.TREDS: Invoicemart setting a new benchmark in TReDS A.TREDS is one of the three entities allowed by RBI to set up the Trade Receivables Discounting System (TReDS), an electronic platform for facilitating cash flows for MSMEs The TReDS platform connects MSME sellers and their corporate buyers to mu
Slide 92: Freecharge: Merchant Business and Payments continue to deliver strong growth
Freecharge: Merchant Business and Payments continue to deliver strong growth; lending products ready to scale up Freecharge continues to evolve from a payments company to a lending and payments fintech with a host of lending products for both consumers and merchants DTH, UTILITIES MOBILE LOANS CARDS
Slide 93: Other Important Information
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment Performance Asset Quality Sustainability Subsidiaries’ Performance Other Important Information Quarterly Results Q4FY23 83
Slide 94: Shareholding Pattern (as on March 31, 2023)
Shareholding Pattern (as on March 31, 2023) Life Insurance Corporation Others 7.96% 7.62% GDR's 2.42% Foreign Institutional Investors 50.70% Indian Institutions 31.30% ▪ Share Capital `615 crores ▪ Shareholders’ Funds `124,993 crores ▪ Book Value Per Share `406 ▪ Diluted EPS (Q4 FY23) #* `86.31 ▪ Ma
Slide 95: Financial Performance
Financial Performance Financial Performance (` crores) Q4FY23 Q4FY22 % Growth FY23 FY22 % Growth Interest Income A 23,970 17,776 35% 85,164 67,377 26% Other Income B = C+D+E 4,895 4,224 16% 16,501 15,221 8% - Fee Income C 4,676 3,759 24% 16,216 13,001 25% - Trading Income D 83 231 (64%) (242) 1,627
Slide 96: Financial Performance ($ mn)
Financial Performance Financial Performance ($ mn) Q4FY23 Q4FY22 % Growth FY23 FY22 % Growth Interest Income A 2,917 2,163 35% 10,364 8,200 26% Other Income B = C+D+E 596 514 16% 2,008 1,852 8% - Fee Income C 569 457 24% 1,973 1,582 25% - Trading Income D 10 28 (64%) (29) 198 - - Miscellaneous Incom
Slide 97: Balance Sheet
Balance Sheet Balance Sheet As on 31st Mar’23 As on 31st Mar’22 As on 31st Mar’23 As on 31st Mar’22 % Growth CAPITAL AND LIABILITIES In ` Crores In ` Crores in $ Mn in $ Mn Capital 615 614 75 75 0.2% Reserves & Surplus 1,24,378 1,14,411 15,137 13,924 9% ESOP Outstanding 424 149 51 18 185% Deposits 9
Slide 98: Bridge to operating expenses and provision numbers
Bridge to operating expenses and provision numbers as reported in annual financial statements format Rs. in crores except % Q4FY23 FY23 Financial Performance Reported One time / Non Annual FS Reported One time / Non Annual FS (` crores) (A) recurring (B) (A+B) (A) recurring (B) (A+B) Interest Income
Slide 99: Details of key Business metrics
Details of key Business metrics Axis Bank (Reported) Axis Bank (excl. Citi portfolio) Balance sheet YOY Growth QoQ Growth YOY Growth QoQ Growth (in Rs Crore) Q4FY23 Q4FY23 (%) (%) (%) (%) Total deposits 9,46,945 15% 12% 9,05,623 10% 7% - Current Account 1,49,120 17% 18% 1,47,300 15% 16% - Savings Ac
Slide 100: Limited restructuring, largely secured and well provided
Limited restructuring, largely secured and well provided; Declining BB & Below Book All figures in ₹ Crores Bank’s Net NPA* and Fund based BB and Below* portfolio Update on restructured book PCR (excluding technical write offs) up 6 bps QoQ at 81%; Outstanding Covid (1+2) restructuring as on 31.03.2
Slide 101: Safe Harbor
Safe Harbor Except for the historical information contained herein, statements in this release which contain words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek to”, “futu
Slide 102: Thank You
Thank You Quarterly Results Q4FY23 92