Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q2 FY12 Earnings Presentation
41 slides from Kotak Mahindra Bank's earnings presentation, Oct 25, 2011
Slide 1: Investor Presentation Q2 FY12
INVESTOR PRESENTATION Q2 FY12 Oct 25, 2011
Slide 2: Kotak company history milestones
@ kotak’ 12004 2003 Became the first Alternate Assets NBFC to convert into a commercial bank 1990 Car Finance e Investment Banking 2001@ KS becomes Subsidiary Life Insurance
Slide 3: Geographical Presence
Geographical Presence Wide National Footprint … .. With Multiple Points of Presence Business Branches (Sep, 11) Banking 323 Car Finance 69 Life Insurance 202 Securities 1,429 Mutual Fund 84 Total 2,107 ~ International offices situated in London, New York, California, Dubai, Abu Dhabi, Bahrain, Mauri
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 Kotak Securities Trustee Old Mutual Life Capital Company Investments Prime AMC Pension Fund Company Insurance * •Investment
Slide 5: Financial Summary
FINANCIAL SUMMARY 5
Slide 6: Consolidated Highlights (Q2 FY12)
Consolidated Highlights (Q2 FY12) PAT Loans Net NIM 433 `cr 50,581 `cr 4.8% (364 `cr) (37,515 `cr) NPA * (5.2%) Up 19% yoy Up 35% yoy 0.4% (0.7%) CAR** Tier 1 ** AUM 17.8% (19.4%) 15.9% (17.2%) 50,467 `cr (as per Basel II) (as per Basel II) (49,709 `cr) CASA$ 9,247 `cr (7,779 `cr) 26% of total depos
Slide 7: Consolidated Advances & Investments
Consolidated Advances & Investments As on As on As on As on ` cr Mar 31, 2011 Jun 30,2011 Sep 30, 2010 Sep 30, 2011 Commercial vehicles & Construction equipments 6,251 6,771 4,955 7,351 Agriculture Finance 4,220 4,356 3,328 4,248 Auto loans 8,550 8,978 7,847 9,858 Mortgage Loans 6,877 7,077 5,983 7,
Slide 8: Consolidated Revenues
Consolidated Revenues ` cr FY11 Q1FY12 Q2FY11 Q2FY12 Financing activities 4,551 1,445 1,064 1,587 Fee Income* 1,452 324 359 360 Premium Income 2,940 500 726 664 Treasury – Others ** 1,530 427 368 461 Others 239 84 52 41 Total Revenues** 10,712 2,780 2,569 3,113 * Fee income is net of sub brokerage *
Slide 9: Consolidated PAT
Consolidated PAT ` cr FY07 FY08 FY09 FY10 FY11 H1FY11 H1FY12 Kotak Mahindra Bank 141 294 276 561 818 382 512 Kotak Mahindra Prime 57 101 157 166 318 137 184 Kotak Securities 256 409 107 260 182 99 52 Kotak Mahindra Capital Company 68 115 13 24 52 14 (3) Kotak Mahindra Old Mutual Life (58) (72) 14 69
Slide 10: Consolidated PAT – Quarterly
Consolidated PAT – Quarterly ` cr FY11 Q1FY12 Q2FY11 Q2FY12 Kotak Mahindra Bank 818 252 195 260 Kotak Mahindra Prime 318 94 61 90 Kotak Securities 182 23 52 29 Kotak Mahindra Capital Company 52 1 7 (4) Kotak Mahindra Old Mutual Life Insurance 101 46 13 53 Kotak Mahindra AMC & Trustee Co 17 9 (2) 7 I
Slide 11: Consolidated PAT – Quarterly Trend
Consolidated PAT – Quarterly Trend 600 500 433 400 364 300 (` cr ) 300 242 200 161 94 100 - 2007 2008 2009 2010 2011 2012 Q1 Q2 Q3 Q4 ` cr 2007 2008 2009 2010 2011 2012 Q1 104 146 150 257 328 416 Q2 94 242 161 300 364 433 Q3 170 364 131 331 384 Q4 170 240 211 419 491 11
Slide 12: Consolidated Profit (PBT) Mix
Consolidated Profit (PBT) Mix `cr 773 1,424 1,033 1,883 2,274 1,019 1,250 12
Slide 13: Consolidated Profit (PBT) Mix
Consolidated Profit (PBT) Mix `cr 1,883 2,274 619 515 631 6% 4% 4% 3% 14% 7% 3% 8% 4% 4% 6% 17% 6% 15% 23% 83% 83% 75% 76% 59% FY10 FY11 Q1FY12 Q2FY11 Q2FY12 Financing Capital Market Insurance Asset Management 13
Slide 14: Consolidated Key Financials
Consolidated Key Financials As on As on As on As on ` cr Mar 31, 2011 Jun 30, 2011 Sep 30, 2010 Sep 30, 2011 Deposit 27,313 29,397 26,409 34,473 Borrowings 22,073 24,620 17,313 24,314 Advances 41,242 44,699 37,515 50,581 Total Assets 73,681 78,542 67,149 83,796 Networth 10,963 11,406 10,060 11,893 A
Slide 15: Consolidated Key Ratios
Consolidated Key Ratios FY11 Q1FY12 Q2FY11 Q2FY12 Return on average Assets 2.39 2.19 2.26 2.13 (%,annualised) Book value per share (`) 148.8 154.6 137.2 161.0 NIM (%, YTD annualised) 5.2 5.0 5.2 4.8 RoE (%, annualised) 16.4 14.9 15.8 14.9 Gross NPA (` cr) * 469 479 639 471 Gross NPA (%) * 1.1 1.1 1.
Slide 16: Business Overview
BUSINESS OVERVIEW 16
Slide 17: Financing Business
Financing Business Advances ` cr Net NPA 50,581 44,699 2.1% 41,242 37,515 1.7% 29,724 1.5% 1.1% 1.0% 1.2% 0.7% 0.5% 0.4% 0.4% 0.4% Mar-09 Sep-09 Dec-09 Mar-10 Sep-10 Dec-10 Mar-11 Sep 11 Jun-09 Jun-10 Jun-11 FY10 FY11 Q1FY12 Q2FY11 Q2FY12 excl acquired stressed assets portfolio Asset Quality •Gross
Slide 18: Financing Business
Financing Business Net Interest Income ` cr 2,233 2,680 742 652 778 FY10 FY11 Q1FY12 Q2FY11 Q2FY12 PAT ` cr 1,160 762 349 353 264 FY10 FY11 Q1FY12 Q2FY11 Q2FY12 18
Slide 19: Consumer Banking - Liabilities
Consumer Banking - Liabilities Number of Branches & ATMs 500 Branches in CY13 350 725 710 755 800 300 Increased cross sell of 585 700 492 asset products 250 600 500 Branches 200 321 323 ATM s Added more than 1 150 323 400 lac customer accounts 249 267 300 100 200 Focus on affluent 50 100 seg
Slide 20: Consumer Financing
Consumer Financing Advances break up Continue focus on 3% 2% 2% 2% 2% 8% 8% 8% 8% Auto Sector 10% 39% 39% Focus on SENP 37% 40% 40% Mortgage – healthy growth over the years; present in 14 50% 50% 50% 51% 51% cities Selectively growing FY10 FY11 Q1FY12 Q2FY11 Q2FY12 personal loans Car Mortgag
Slide 21: Commercial Financing
Commercial Financing Advances break up 5% 7% 4% 8% 18% 15% 13% 19% 12% Renewed growth in CE/CV 34% 32% 31% 29% 31% Priority sector target met consistently 48% 48% 49% 46% 51% Limited exposure to MFI, 0.04% of consol advances FY10 FY11 Q1FY12 Q2FY11 Q2FY12 CE/CV Agri Capital Market Others ` cr
Slide 22: Wholesale Financing
Wholesale Financing Focus on quality end of Funded & Non funded `cr credit curve 16,379 Continued focus on Trade Finance & 12,630 Transaction Banking 10,916 11,121 -Vendor Financing, CMS and Operative 8,229 7,325 Accounts. 6,490 6,786 -Focus on FX flows 4,503 with increased 3,232 treasury covera
Slide 23: Bank – Profit and Loss
Bank – Profit and Loss ` cr FY11 Q1FY12 Q2FY11 Q2FY12 Net Interest Income 2,097 568 512 605 Other Income 781 229 171 213 Net Total Income 2,878 797 683 818 Employee Cost 751 206 169 215 Other Operating Expenses 802 204 188 222 Operating Expenditure 1,553 410 356 437 Operating Profit 1,325 386 327 38
Slide 24: Bank Segment Performance
Bank Segment Performance Segmental PBT ` cr FY11 Q1FY12 Q2FY11 Q2FY12 Corporate/Wholesale Banking 544 238 138 198 Retail Banking 339 135 88 165 Treasury & BMU* 305 (9) 55 19 Total 1,188 364 281 382 * Balance Sheet Management Unit 24
Slide 25: Bank Advances & Investments
Bank Advances & Investments As on As on As on As on Advances ` Cr Mar 31, 2011 Jun 30, 2011 Sep 30, 2010 Sep 30, 2011 Commercial vehicles & Construction 6,251 6,771 4,955 7,351 equipments Agriculture Finance 4,220 4,356 3,328 4,248 Mortgage loans 6,877 7,077 5,983 7,528 Personal loans 1,305 1,359 1,
Slide 26: Bank Balance Sheet
Bank Balance Sheet As on As on As on As on ` Cr Mar 31, 2011 Jun 30, 2011 Sep 30, 2010 Sep 30, 2011 Net Worth 6,796 7,077 6,328 7,361 Deposits 29,261 31,047 28,287 36,390 CA 5,460 4,947 5,875 5,792 SA 3,331 3,307 3,143 3,564 Term Deposit 15,388 16,819 14,536 19,827 Certificate of Deposit 5,082 5,974
Slide 27: Bank Key Ratios
Bank Key Ratios FY11 Q1FY12 Q2FY11 Q2FY12 CAR % 19.9 18.2 $ 19.4 $ 17.8 Tier I (%) 18.0 16.1 $ 17.2 $ 15.9 Gross NPA (` cr) * 362 377 487 378 Gross NPA (%) * 1.2 1.2 1.8 1.0 Net NPA (` cr) * 146 157 180 161 Net NPA (%) * 0.5 0.5 0.7 0.4 RoA (%) - Annualised 1.8 1.9 1.8 1.8 $ excl. unaudited profits
Slide 28: Kotak Mahindra Prime
Kotak Mahindra Prime ` cr FY11 Q1FY12 Q2FY11 Q2FY12 Total income 1,365 396 316 424 Profit before tax 482 141 96 134 Profit after tax 318 94 61 90 ` cr FY11 Q1FY12 Q2FY11 Q2FY12 Total Advances 11,145 11,569 10,029 12,547 Car Advances 8,489 8,938 7,797 9,821 Net NPA 31 27 78 22 Net NPA (%) 0.3 0.2 0.8
Slide 29: Life Insurance
Life Insurance Capital efficiency among Gross Premium `cr the highest in the industry 425 Adjusting with the new 1,534 1,722 426 product mix 346 221 54 188 288 13 280 82 FY12 as another year of 925 60 78 244 consolidation; 685 40 90 65 conservatism has helped so far FY10 FY11 Q1FY12 Q2FY11 Q2F
Slide 30: Life Insurance
Life Insurance Sum Assured ` 000 cr AUM ` cr 8,270 8284 8,163 138 142 7,557 129 114 6,461 92 FY10 FY11 Q1FY12 Q2FY11 Q2FY12 FY10 FY11 Q1FY12 Q2FY11 Q2FY12 Number of Branches PAT ` cr 214 214 202 202 202 101 69 53 46 13 FY10 FY11 Q1FY12 Q2FY11 Q2FY12 30 FY10 FY11 Q1FY12 Q2FY11 Q2FY12
Slide 31: Kotak Securities
Kotak Securities Market ADV ( ` 0 cr) ADV ` cr (KS) 4,648 4522 4261 78 101 89 64 3925 35 3582 38 39 38 30 31 23 19 14 19 14 FY10 FY11 Q1FY12 Q2FY11 Q2FY12 FY10 FY11 Q1FY12 Q2FY11 Q2FY12 Cash Future Option ` cr FY11 Q1FY12 Q2FY11 Q2FY12 Total income 738 145 198 152 Profit before tax 272 36 77 44 Prof
Slide 32: Kotak Mahindra Capital
Kotak Mahindra Capital Clientc Transaction Size (USD mn) Initial Public Offering 204 Initial Public Offering 169 Growth equity investment by KKR & IFC 97 Joint Venture between Kokuyo and Camlin Limited 91 Open offer for Kemrock Industries and Exports Limited by RPM 45 International Inc. Joint ventur
Slide 33: Asset Management
Asset Management ` 49,709 cr ` 50,467 cr PMS PMS Insurance 4% Insurance 3% 15% 16% Domestic MF Debt Domestic MF 43% Debt Offshore 48% Offshore Funds Funds 18% 15% Alternate Alternate Asset Domestic MF Asset Domestic MF 11% Equity 11% Equity 9% 7% Sep 30, 2010 Sep 30, 2011 33
Slide 34: Kotak Mahindra AMC & Trustee Company
Kotak Mahindra AMC & Trustee Company Average Assets Under Management `cr Close to 9.8 lac folios 34,880 34,167 32444 30,472 27,590 84 Branches FY10 FY11 Q1FY12 Q2FY11 Q2FY12 ` cr FY11 Q1FY12 Q2FY11 Q2FY12 Total income 119 37 19 33 Profit before tax 25 13 (4) 10 Profit after tax 17 9 (2) 7 Average
Slide 35: Kotak Investment Advisors
Kotak Investment Advisors Realty Funds Private Equity Funds Corpus advised / managed – Corpus advised / managed – ` 3,404cr ` 2,065 cr 42 Investments; 8 full exits, 10 32 Investments; 3 full exits, 1 partial partial exits exits ` cr FY11 Q1FY12 Q2FY11 Q2FY12 Total income 96 25 24 24 Profit b
Slide 36: Bank Awards & Recognition
Bank Awards & Recognition Kotak Bank Annual Report 2010-11 was awarded Platinum - “Best among Banking, APAC” and Gold in the “Most Creative Report, APAC” in the LACP Vision Awards, USA Awarded Bronze in the “Best Local Trade Bank in India” category of Trade and Forfaiting Review Awards 2011 Awarded
Slide 37: 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 38: 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 39: 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 | Head of Asset Management businesses across the mutual fund, PMS and life insurance On being a professional entrepreneur | I came from a c
Slide 40: Talent…Professional Entrepreneurs at work
Talent…Professional Entrepreneurs at work Shanti Ekambaram Joined Kotak in 1991; First charge | Senior Manager – Bill Discounting; Current charge | Group Head – Corporate & Institutional Banking, Kotak Mahindra Bank On being a professional entrepreneur | I joined Kotak from a foreign bank. Sin
Slide 41: 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