Axis Bank Limited · NSE:AXISBANK
Axis Bank — FY2010 Earnings Presentation
34 slides from Axis Bank's earnings presentation, April 2010
Slide 1: FY 2009-10 Annual Results Investor Presentation
FY 2009-10 Annual Results Investor Presentation
Slide 2: Performance Highlights
Performance Highlights Q4FY10 FY10 Net Profit 32% YOY 39% YOY Net Interest Income 41% YOY 36% YOY Fee Income 17% YOY 20% YOY Operating Revenue 27% YOY 36% YOY Operating Profit 22% YOY 41% YOY Net Interest Margin 4.09% 3.75% Cost of Funds 4.54% 5.20% 1
Slide 3: Shareholder Returns
Shareholder Returns FY05 FY06 FY07 FY08 FY09 FY10 1.67% 396.0 25.85% 1.44% 21.84% 1.24% 1.21% 19.93% 19.89% 1.18% 284.5 1.10% 18.44% 245.1 16.09% 120.5 103.1 88.0 Book Value per Share (Rs.) Return on Equity Return on Assets 2
Slide 4: Interpretation of Q4 FY10 Performance
Interpretation of Q4 FY10 Performance • Growth in the Bank’s core businesses – Total Net Advances grew 28% yoy to Rs. 1,04,343 crores – Total Investments grew 21% yoy to Rs. 55,975 crores – Total Assets registered a 22% yoy growth, rising to Rs. 1,80,648 crores – Fees grew by 17% yoy, rising to Rs.
Slide 5: Profitability
Profitability Sustained Growth: Robust Core Revenues Q4FY09 Q4FY10 FY09 FY10 Amounts in Rupees Crores Amounts in Rupees Crores 8,950 2,394 8,128 2,291 6,583 1,878 6,209 1,712 1,281 4,418 972 3,351 765 2,515 581 1,815 Net Profit Core Operating Core Net Profit Core Operating Core Operating Revenue Ope
Slide 6: Consistent Net Profit Growth
Consistent Net Profit Growth FY05 FY06 FY07 FY08 FY09 FY10 Amounts in Rupees Crores 765 656 582 562 532 501 403 361 330 307 228 212 175 185 142 152 121 132 109 101 117 93 71 46 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarterly Net Profits 5
Slide 7: Net Interest Margin and Cost of Funds
Net Interest Margin and Cost of Funds Net Interest Margin Cost of Funds 6.64% 4.00% 4.09% 6.09% 3.37% 3.34% 3.52% 5.41% 4.83% 4.54% Q4FY09 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q4FY09 Q1FY10 Q2FY10 Q3FY10 Q4FY10 NIMs for the last 5 years FY06 2.85% FY07 2.74% FY08 3.47% FY09 3.33% FY10 3.75% 6
Slide 8: Growing Net Interest Income
Growing Net Interest Income Q4FY09 Q4FY10 FY09 FY10 Amounts in Rupees Crores Amounts in Rupees Crores 1,461 5,004 1,033 3,686 ↑ 41% YOY ↑ 36% YOY NIIs for the last 5 years FY06 1,078 FY07 1,468 FY08 2,585 FY09 3,686 FY10 5,004 CAGR 47% 7
Slide 9: Growing Demand Deposits
Growing Demand Deposits YOY Growth in Daily Average Demand and Term Deposits Deposit Q4FY10 FY10 Savings 40% 36% Current 42% 25% Total Demand Deposits 41% 31% Total Deposits 16% 17% 66,030 50,644 (47%) Demand Deposits ↑ 30% YOY (43%) 75,270 Term Deposits ↑ 13% YOY 66,730 (57%) (53%) 31st March 2009
Slide 10: Fees
Fees Q4FY09 Q4FY10 FY09 FY10 Amounts in Rupees Crores Amounts in Rupees Crores 780 2,925 664 2,447 ↑ 17% YOY* ↑ 20% YOY* Fees for the last 5 years FY06 558 FY07 890 FY08 1,495 FY09 2,447 FY10 2,925 CAGR 51% * During the quarter, the Bank changed its accounting policy to recognise fee income on bank
Slide 11: Fee Income Composition
Fee Income Composition 237 Q4FY09 Q4FY10 230 233 Amounts in Rupees Crores 112 120 100 73 85 78 69 63 42 Large & Mid Treasury Agri & SME Business Capital Markets Retail Business Corporate Credit Banking Banking ↑ 112% YOY ↑ 20% YOY ↓ 6% YOY ↓ 8% YOY ↓ 34% YOY ↑ 2% YOY FY09 FY10 897 Amounts in Rupees
Slide 12: Trading Profits
Trading Profits Trading Profit % of Operating Revenue Amounts in Rupees Crores 166 8.85% 103 4.29% Q4FY09 Q4FY10 Q4FY09 Q4FY10 ↓ 38% YOY 9.19% 822 5.68% 374 FY09 FY10 FY09 FY10 ↑ 120% YOY 11
Slide 13: Stressed Assets and Net NPA (%)
Stressed Assets and Net NPA (%) Gross NPAs Net NPAs Net NPA (%) Amounts in Rupees Crores 1,350 1,318 0.90% 1,174 1,132 0.80% 0.70% Net NPA as at year-end 898 915 900 0.60% FY06 0.75% FY07 0.61% 0.45% 0.46% 0.50% 0.41% FY08 0.36% 0.35% 0.36% 0.40% FY09 0.35% 417 430 419 FY10 0.36% 450 367 0.30% 327 0
Slide 14: Business Overview
BUSINESS OVERVIEW A
Slide 15: Network
Network Increasing Reach 643 1035 515 835 405 671 561 332 450 258 339 190 Branches + Extension Counters Centres Covered 4,293 3,595 Branch Demographics (Domestic) Branches Extn. Counters 2,764 2,341 Metro 320 6 1,891 Urban 387 2 1,599 Semi-urban 256 - Rural 64 - Total 1,027 8 ATMs March 2005 March 2
Slide 16: Large and Mid Corporate Banking
Large and Mid Corporate Banking • Focus on quality of credit assets with stress on corporates having – Global competitive advantage in their businesses – Good corporate governance and management practices • Business Segments – Large Corporates – Infrastructure – Mid Corporates – Structured Products
Slide 17: Distribution of Ratings
Distribution of Ratings (Large and Mid Corporate) 75% of corporate advances have rating of at least ‘A’ as at March 2010 5% 4% 2% 6% 10% 22% 23% 22% 19% 18% AAA AA A 53% 49% 47% 54% 54% BBB <BBB or Unrated 19% 22% 22% 16% 18% 3% 2% 3% 4% 3% March 2009 June 2009 Sept. 2009 Dec. 2009 March 2010 16
Slide 18: SME and Agri Business
SME and Agri Business 31st March 2009 31st March 2010 Amounts in Rupees Crores 19,483 16,077 11,534 8,217 SME Advances Agricultural Advances ↑ 21% YOY ↑ 40% YOY SME Centres 24 25 Agri Clusters 46 56 • Specialised SME Centres for SME • Specialised Clusters for Agricultural lending, appraisals, sancti
Slide 19: Distribution of Ratings: SME
Distribution of Ratings: SME 77% of SME advances have rating of at least ‘SME3’ as at March 2010 1% 1% 1% 1% 2% 12% 10% 11% 11% 13% SME 1 65% 63% 62% SME 2 64% 62% SME 3 SME 4 SME 5-8 15% 16% 17% 17% 13% 8% 8% 8% 9% 10% March 2009 June 2009 Sept. 2009 Dec. 2009 March 2010 18
Slide 20: Sector Composition
Sector Composition Across Large Corporate, Mid Corporate, SME and Corporate Agri Outstanding as on 31st March 2010 Rank Sectors Non-fund Total Fund-based based 1. Financial Companies* 12.16 10.96 14.92 2. Infrastructure** 11.86 8.22 20.28 3. Power Generation & Distribution 7.19 5.13 11.96 4. Metal &
Slide 21: Business Banking
Business Banking Cash Management Services and Government Business 31st March 2009 31st March 2010 • Collection of Central Government taxes on behalf of 6,614 CBDT and CBEC • Collection of State Government taxes on behalf of 8 State Governments and Union Territories 4,852 • Collections and payments f
Slide 22: Business Banking
Business Banking Current Accounts Growth 31st March 2009 31st March 2010 Amounts in Rupees Crores 32,168 Current Account deposits 24,822 for the last 5 years (as on 31st March) Mar’06 7,970 Mar’07 11,304 Mar’08 20,045 Mar’09 24,822 Mar’10 32,168 Current Account Deposits CAGR 42% ↑ 30% YOY • Wide ran
Slide 23: Treasury
112,826 Treasury 112.5 16.5 26.7 85,736 Q4FY09 48.7 Q4FY10 7.0 6.9 Amounts in Rs Crores Forex Turnover Forex Trading SLR & Money Market Derivatives Trading ↑ 32% YOY ↓ 58% YOY Trading ↓ 57% YOY ↑ 287% YOY 108.3 FY09 402,034 429.1 FY10 85.0 295,776 Amounts in Rs Crores 224.5 0.4 (22.2) Forex Turnover
Slide 24: Placement and Syndication
Placement and Syndication Q4FY09 Q4FY10 FY09 FY10 Amounts in Rupees Crores Amounts in Rupees Crores 69,077 24,642 59,680 19,457 ↑ 27% YOY Placement & Syndications ↑ 16% YOY (Debentures / Bonds) • Ranked No. 1 by Prime Database for the 9-month period ended December 31st, 2009 • Ranked No.1 for the In
Slide 25: Savings Bank Growth
Savings Bank Growth 31st March 2009 31st March 2010 Amounts in Rupees Crores 55,138 Savings Bank deposits for the last 5 years (as on 31st March) Mar’06 8,065 42,501 Mar’07 12,126 33,862 Mar’08 19,982 Mar’09 25,822 25,822 Mar’10 33,862 CAGR 43% Savings Bank deposit growth led by: • Wide Network - Br
Slide 26: Third Party Products Business
Third Party Products Business Q4FY09 Q4FY10 FY09 FY10 Amounts in Rupees Crores Amounts in Rupees Crores • Focus on cross-selling to 87 existing customers to generate 255 fee income 186 • Third-party products sold include mutual funds, insurance, on-line 33 broking, portfolio management services (non
Slide 27: Retail Assets
Retail Assets 31st March 2009 31st March 2010 Amounts in Rupees Crores 1,117,734 20,823 992,286 • Retail Assets constitute 16,052 20% of the bank’s total advances, at the same level as at 31st Mar’09. • Growth driven through 58 Retail Asset Centres (RACs) Portfolio Size No of Accounts ↑ 30% YOY ↑ 13
Slide 28: Composition of Retail Assets
Composition of Retail Assets Product-wise composition of Retail Assets portfolio (31st March 2010) Personal Loans 9.5% Cards 2.2% Non-Schematic 4.2% Passenger Cars 13.0% Auto Loans 13.3% Commercial Vehicles 0.3% Housing Loans 70.8% 27
Slide 29: Cards Business
Cards Business Q4FY09 Q4FY10 FY09 FY10 Amounts in Rupees Crores 64 217 50 178 ↑ 28% YOY ↑ 22% YOY Fee Income • Issuance – Over 5,50,000 Credit Cards in force till 31st Mar’10 – 1st Indian Bank to launch Travel Currency Cards in 9 currencies -US$, Euro, GBP, AUD, CAD, SGD, SEK, CHF, JPY – 1st Indian
Slide 30: ATM Channel
ATM Channel March 2009 March 2010 147 6,834 314 118 243 4,828 Intl. debit card base (lacs) Monthly Cash Withdrawals No. of Monthly Transactions (Rs. Crore) (lacs) ↑ 25% YOY ↑ 42% YOY ↑ 29% YOY • Pioneer in ATM sharing arrangements • Value added services such as bill payments, mutual fund investments
Slide 31: International Presence
International Presence • Branches at Singapore, Hong Kong and DIFC, Dubai • Representative offices at Shanghai and Dubai • Total assets overseas amounted to US$ 3.10 billion • Corporate Banking, Trade Finance products, Debt Syndication and Liability businesses 30
Slide 32: Shareholding
Shareholding Shareholding pattern (31st March 2010) • Share Capital - Rs. 405.17 crores SUUTI Others 24.00% • Shareholders’ Funds - Rs. 16,045 crores 32.60% • Book Value per share - Rs. 395.99 LIC • Market Price as on 19th April 2010 - Rs. 1,159.30 10.27% • Market Cap as on 19th April 2010 - Rs. 46,
Slide 33: 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 34: Thank You
— TALISMA Ny, Customer Apprecation Award 2009 a . Thank You ey XS