Axis Bank Limited · NSE:AXISBANK
Axis Bank — Q3 FY2010 Earnings Presentation
34 slides from Axis Bank's earnings presentation, January 2010
Slide 1: FY 2009-10 Third Quarter Results Investor Presentation
FY 2009-10 Third Quarter Results Investor Presentation
Slide 2: Performance Highlights
Performance Highlights Q3FY10 9MFY10 Net Profit 31% YOY 42% YOY Net Interest Income 45% YOY 34% YOY Fee Income 29% YOY 20% YOY Operating Revenue 41% YOY 39% YOY Operating Profit 51% YOY 49% YOY Net Interest Margin 4.00% 3.63% Cost of Funds 4.83% 5.43% 1
Slide 3: Shareholder Returns
Shareholder Returns FY05 FY06 FY07 FY08 FY09 9MFY10 391.4 1.60% 25.85% 1.44% 21.84% 1.24% 1.21% 19.93% 1.18% 284.5 19.47% 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 Q3FY10 Performance
Interpretation of Q3FY10 Performance • Growth in the Bank’s core businesses – Total Net Advances grew 13% yoy to Rs. 84,770 crores – Total Investments grew 17% yoy to Rs. 49,274 crores – Total Assets registered a 9% yoy growth, rising to Rs. 1,50,456 crores – Fees grew by 29% yoy, rising to Rs. 800
Slide 5: Profitability
Profitability Sustained Growth: Robust Core Revenues Q3FY09 Q3FY10 9MFY09 9MFY10 Amounts in Rupees Crores Amounts in Rupees Crores 2,337 6,557 2,168 5,837 1,662 4,705 1,548 4,497 1,205 3,137 795 2,379 656 1,750 501 1,234 Net Profit Core Operating Core Net Profit Core Operating Core Operating Revenue
Slide 6: Consistent Net Profit Growth
Consistent Net Profit Growth FY05 FY06 FY07 FY08 FY09 FY10 Amounts in Rupees Crores 656 582 562 532 501 403 361 330 307 228 212 175 185 142 152 121 132 109 117 93 101 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 3.34% 4.00% 6.91% 6.64% 3.37% 3.52% 6.09% 3.12% 5.41% 4.83% Q3FY09 Q4FY09 Q1FY10 Q2FY10 Q3FY10 Q3FY09 Q4FY09 Q1FY10 Q2FY10 Q3FY10 NIMs for the last 5 years FY05 2.90% FY06 2.85% FY07 2.74% FY08 3.47% FY09 3.33% 6
Slide 8: Growing Net Interest Income
Growing Net Interest Income Q3FY09 Q3FY10 9MFY09 9MFY10 Amounts in Rupees Crores Amounts in Rupees Crores 3,544 1,349 2,654 930 ↑ 45% YOY ↑ 34% YOY NIIs for the last 5 years FY05 731 FY06 1,078 FY07 1,468 FY08 2,585 FY09 3,686 CAGR (5 years) 45% 7
Slide 9: Growing Demand Deposits
Growing Demand Deposits YOY Growth in Daily Average Demand and Term Deposits Deposit Q3FY10 9MFY10 Savings 39% 35% Current 22% 19% Total Demand Deposits 31% 28% Total Deposits 9% 18% 40,146 51,909 (38%) (46%) Demand Deposits ↑ 29% YOY 65,570 61,944 Term Deposits ↓ 6% YOY (62%) (54%) 31st Dec'08 31st
Slide 10: Fees
Fees Q3FY09 Q3FY10 9MFY09 9MFY10 Amounts in Rupees Crores Amounts in Rupees Crores 800 2,145 1,783 619 ↑ 29% YOY ↑ 20% YOY Fees for the last 5 years FY05 366 FY06 558 FY07 890 FY08 1,495 FY09 2,447 CAGR (5 years) 65% 9
Slide 11: Fee Income Composition
Fee Income Composition Q3FY09 Q3FY10 246 Amounts in Rupees Crores 193 178 114 126 94 89 101 79 85 53 62 Large & Mid Treasury Agri & SME Business Capital Markets Retail Business Corporate Credit Banking Banking ↑ 69% YOY ↑ 33% YOY ↑ 18% YOY ↑ 13% YOY ↓ 16% YOY ↑ 38% YOY 9MFY09 9MFY10 664 541 483 Amou
Slide 12: Trading Profits
Trading Profits Trading Profit Volume % of Operating Revenue Amounts in Rupees Crores 170 7% 7% 114 Q3FY09 Q3FY10 Q3FY09 Q3FY10 ↑ 49% YOY 720 11% 208 4% 9MFY09 9MFY10 9MFY09 9MFY10 ↑ 246% YOY 11
Slide 13: Stressed Assets and Net NPA (%)
Stressed Assets and Net NPA (%) Gross NPAs Net NPAs Net NPA (%) Amounts in Rupees Crores 1,200 1,174 0.90% 1,132 0.80% 1,000 898 915 0.70% Net NPA as at year-end 788 800 0.60% FY05 1.07% FY06 0.75% 0.45% 0.46% 0.50% 600 0.41% FY07 0.61% 0.39% 0.35% 0.40% FY08 0.36% 417 430 367 FY09 0.35% 400 342 327
Slide 14: Business Overview
BUSINESS OVERVIEW A
Slide 15: Network
Network Increasing Reach 586 949 515 835 671 405 561 332 450 258 339 190 Branches + Extension Counters Centres Covered 4,055 3,595 Branch Demographics (Domestic) Branches Extn. Counters 2,764 2,341 Metro 301 6 1,891 Urban 367 2 1,599 Semi-urban 216 - Rural 57 - Total 941 8 ATMs Mar'05 Mar'06 Mar'07
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 – Mid Corporates – Structured Products • Rigorous and re
Slide 17: Distribution of Ratings
Distribution of Ratings (Large and Mid Corporate) 74% of corporate advances have rating of at least ‘A’ as at Dec’09 5% 4% 2% 6% 7% 22% 23% 19% 22% 19% AAA AA A 53% 49% 56% 54% 54% BBB <BBB or Unrated 19% 22% 15% 16% 18% 3% 3% 2% 3% 4% Dec'08 Mar'09 Jun'09 Sep'09 Dec'09 16
Slide 18: SME and Agri Business
SME and Agri Business 31st Dec'08 31st Dec'09 16,503 Amounts in Rupees Crores 14,146 7,767 5,599 SME Advances Agricultural Advances ↑ 17% YOY ↑ 39% YOY SME Centres 24 25 Agri Clusters 46 56 • Specialised SME Centres for SME • Specialised Clusters for Agricultural lending, appraisals, sanctions and p
Slide 19: Distribution of Ratings: SME
Distribution of Ratings: SME 74% of SME advances have rating of at least ‘SME3’ as at Dec’09 1% 1% 1% 1% 1% 11% 12% 10% 11% 11% SME 1 65% 63% 62% SME 2 67% 64% SME 3 SME 4 SME 5-8 15% 16% 17% 17% 14% 7% 8% 8% 8% 9% Dec'08 Mar'09 Jun'09 Sep'09 Dec'09 18
Slide 20: Top Sector Exposures
Top Sector Exposures Across Large Corporate, Mid Corporate, SME and Corporate Agri Exposure as on 31st Dec’09 Rank Sectors Non-fund Total Fund-based based 1. Infrastructure* 11.97% 8.32% 18.13% 2. Financial Companies** 10.51% 10.05% 11.28% 3. Metal & Metal Products 6.94% 5.70% 9.04% 4. Power Generat
Slide 21: Business Banking
Business Banking Cash Management Services and Government Business 31st Dec'08 31st Dec'09 • Collection of Central Government taxes on behalf of CBDT and CBEC 6,067 • Collection of State Government taxes on behalf of 8 State Governments and Union Territories • Collections and payments for Central 4,5
Slide 22: Business Banking
Business Banking Current Accounts Growth 31st Dec'08 31st Dec'09 Amounts in Rupees Crores 22,281 Current Account deposits 18,258 for the last 5 years (as on 31st March) Mar’05 7,155 Mar’06 7,970 Mar’07 11,304 Mar’08 20,045 Mar’09 24,822 Current Account Deposits CAGR (5 years) 36% ↑ 22% YOY • Wide ra
Slide 23: Treasury
Treasury 107,457 36.6 79.2 85,501 71.9 27.9 Q3FY09 Q3FY10 -2.2 Amounts in Rs Crores Forex Turnover Forex Trading SLR & Money Market Derivatives Trading ↑ 26% YOY ↑ 31% YOY Trading ↑ 10% YOY 380.4 289,208 101.4 -19.9 210,040 9MFY09 68.4 9MFY10 Amounts in 112.0 Rs Crores -6.5 Forex Turnover Forex Trad
Slide 24: Capital Markets
Capital Markets Q3FY09 Q3FY10 9MFY09 9MFY10 Amounts in Rupees Crores Amounts in Rupees Crores 18,525 44,810 13,753 36,980 ↓ 26% YOY Placement & Syndications ↑ 21% YOY (Debentures / Bonds) • A dominant player in placement and syndication of debt issues • Ranked No. 1 in Bloomberg league table for ‘In
Slide 25: Savings Bank Growth
Savings Bank Growth 31st Dec'08 31st Dec'09 Amounts in Rupees Crores 51,324 Savings Bank deposits for the last 5 years (as on 31st March) Mar’05 4,891 Mar’06 8,065 37,626 Mar’07 12,126 29,628 Mar’08 19,982 Mar’09 25,822 21,888 CAGR (5 years) 58% Savings Bank deposit growth led by: • Wide Network - B
Slide 26: Third Party Products Business
Third Party Products Business Q3FY09 Q3FY10 9MFY09 9MFY10 Amounts in Rupees Crores Amounts in Rupees Crores • Focus on cross-selling to 66 170 160 existing customers to generate 54 fee income • Third-party products sold include mutual funds, insurance, on-line broking, portfolio management services
Slide 27: Retail Assets
Retail Assets 31st Dec'08 31st Dec'09 Amounts in Rupees Crores 18,900 1,022,938 995,987 15,616 • Retail Assets constitute 22% of the bank’s total advances, as compared to 21% as at 31st Dec’08. • Growth driven through 58 Retail Asset Centres (RACs) Portfolio Size No of Accounts ↑ 21% YOY ↑ 3% YOY 26
Slide 28: Composition of Retail Assets
Composition of Retail Assets Product-wise composition of Retail Assets portfolio (31st Dec’09) Personal Loans 8% Cards 2% Non-Schematic 4% Passenger Cars 14% Auto loans 15% Commercial Vehicles 1% Housing Loans 71% 27
Slide 29: Cards Business
Cards Business Q3FY09 Q3FY10 9MFY09 9MFY10 Amounts in Rupees Crores 58 153 44 128 ↑ 32% YOY ↑ 20% YOY Fee Income • Issuance – Over 5,70,000 Credit Cards in force till 31st Dec‘09 – 1st Indian Bank to launch Travel Currency Cards in 9 currencies -US$, Euro, GBP, AUD, CAD, SGD, SEK, CHF, JPY – 1st Ind
Slide 30: ATM Channel
ATM Channel Dec'08 Dec'09 6,294 139 290 4,821 110 236 Intl. debit card base (lakhs) Monthly Cash Withdrawals No. of Monthly Transactions (Rs. Crore) (lakhs) ↑ 26% YOY ↑ 31% YOY ↑ 23% YOY • Pioneer in ATM sharing arrangements • Value added services such as bill payments, mutual fund investments, mobi
Slide 31: International Presence
International Presence • Branches at Singapore, Hong Kong and DIFC, Dubai • Representative offices at Shanghai and Dubai • Total assets overseas amounted to US$ 2.45 billion • Corporate Banking, Trade Finance products, Debt Syndication and Liability businesses 30
Slide 32: Shareholding
Shareholding Shareholding pattern (Dec’09) • Share Capital - Rs. 403.63 crores SUUTI 24.09% Others • Shareholders’ Funds - Rs. 15,797 crores 34.78% • Book Value per share - Rs. 391.37 LIC • Market Price as on 14/01/10 - Rs. 1,066.10 10.34% • Market Cap as on 14/01/10 - Rs. 43,031 crores FIIs (US $9.
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