Kotak Mahindra Bank Limited · NSE:KOTAKBANK

Kotak Mahindra Bank — Q3 FY2012 Earnings Presentation

34 slides from Kotak Mahindra Bank's earnings presentation, Jan 23, 2012

  1. Slide 1: Earnings Update

    Earnings Update Jan 23, 2012 1

  2. Slide 2: Financial Summary

    FINANCIAL SUMMARY

  3. Slide 3: Consolidated Highlights (Q3FY12)

    Consolidated Highlights (Q3FY12) PAT Loans Net NIM ` 463 cr (` 384 cr) ` 52,847 cr ( ` 40,096 cr) NPA * 4.7% (5.0%) Up 21% yoy Up 32% yoy 0.4% (0.5%) CAR** Tier 1 ** CASA 17.5% (20.4%) 15.6% (18.2%) ` 10,615 cr (` 7,868 cr) (as per Basel II) (as per Basel II) 27.7% of total deposits * Excluding acqu

  4. Slide 4: Consolidated Advances and Investments

    Consolidated Advances and Investments ` cr FY 11 Q2FY12 Q3FY11 Q3FY12 Commercial vehicles & Construction equipments 6,251 7,351 5,548 7,540 Agriculture Finance 4,220 4,248 3,753 4,894 Auto loans 8,550 9,858 7,993 9,771 Mortgage Loans 6,877 7,528 6,626 7,935 Personal loans 1,307 1,501 1,227 1,689 Cor

  5. Slide 5: Consolidated Revenues

    Consolidated Revenues ` cr FY11 9MFY11 9MFY12 Q2FY12 Q3FY11 Q3FY12 Financing activities 4,551 3,247 4,797 1,587 1,233 1,765 Fee Income* 1,452 1,069 1,022 360 347 338 Premium Income 2,940 1,877 1,795 664 605 631 Treasury & Investments – Others ** 1,530 1,101 1,427 461 419 539 Others 239 163 197 41 53

  6. Slide 6: Consolidated PAT

    Consolidated PAT ` cr FY11 9MFY11 9MFY12 Q2FY12 Q3FY11 Q3FY12 Kotak Mahindra Bank 818 570 788 260 188 276 Kotak Mahindra Prime 318 231 288 90 94 104 Kotak Securities 182 146 76 29 47 24 Kotak Mahindra Capital Company 52 22 1 (4) 8 4 Kotak Mahindra Old Mutual Life Insurance 101 30 146 53 24 47 Kotak

  7. Slide 7: Consolidated PAT – Quarterly Trend

    Consolidated PAT – Quarterly Trend 600 500 463 384 400 364 331 (` cr ) 300 170 131 200 100 - 2007 2008 2009 2,010 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 170 364 131 331 384 463 Q4 170 240 211 419 491 7

  8. Slide 8: Consolidated Profit (PBT) Mix

    Consolidated Profit (PBT) Mix `cr 1,883 2,274 545 631 673 6% 5% 3% 2% 14% 4% 4% 8% 7% 6% 6% 4% 15% 15% 23% 83% 85% 75% 76% 59% FY10 FY11 Q3FY11 Q2FY12 Q3FY12 Financing Capital Market Insurance Asset Management 8

  9. Slide 9: Consolidated Key Financials

    Consolidated Key Financials ` cr FY11 Q2FY12 Q3FY11 Q3FY12 Deposit 27,313 34,473 26,197 36,212 Borrowings 22,073 24,314 19,980 26,939 Advances 41,242 50,581 40,096 52,847 Total Assets 73,681 83,796 70,020 88,514 Networth 10,963 11,893 10,502 12,416 9

  10. Slide 10: Consolidated Key Ratios

    Consolidated Key Ratios FY11 Q2FY12 Q3FY11 Q3FY12 Return on average Assets (%) 2.4 2.1 2.4 2.2 Book value per share (`) 148.8 161.0 142.6 167.9 NIM (%) 5.2 4.8 5.0 4.7 RoE (%) 16.4 14.9 14.8 15.1 Gross NPA (` cr) * 469 471 603 504 Gross NPA (%) * 1.1 0.9 1.5 1.0 Net NPA (` cr) * 178 182 204 218 Net

  11. Slide 11: Business Overview

    BUSINESS OVERVIEW 11

  12. Slide 12: Financing Business

    Financing Business Advances ` cr Net NPA 50,581 52,847 2.1% 41,242 40,096 32% 1.7% 1.5% 29,724 1.1% 30% 1.0% 1.2% 0.7% 0.5% 0.4% 0.4% 0.4% 0.4% 38% Jun-09 Jun-10 Jun-11 Sep-09 Sep-10 Dec-09 Dec-10 Dec-11 Sep 11 Mar-09 Mar-10 Mar-11 FY10 FY11 Q2FY12 Q3FY11 Q3FY12 Consumer Commercial Corporate excl ac

  13. Slide 13: Financing Business

    Financing Business Net Interest Income ` cr 2,233 2,680 778 689 827 FY10 FY11 Q2FY12 Q3FY11 Q3FY12 PAT ` cr 1,160 762 353 383 285 FY10 FY11 Q2FY12 Q3FY11 Q3FY12 13

  14. Slide 14: Consumer Banking - Liabilities

    Consumer Banking - Liabilities Number of Branches & ATMs  Positive impact on 350 710 755 781 800 o savings balances 300 642 700 o number of savings 492 accounts 250 600 o customer 200 321 500 Branches 323 acquisition ATM s 400 150 298 330 249 300  Added over 1.5 lac 100 200 customers 50 100 - 0 

  15. Slide 15: Consumer Financing

    Consumer Financing Advances break up  Mortgages growth in 2% 2% select territories 10% 3% 8% 2% 8% 8% 8% 3%  Selective growth in 37% 40% 39% 41% 40% personal loans  Focus on SENP 50% 50% 51% 49% 49%  Continued low delinquencies FY10 FY11 Q2FY12 Q3FY11 Q3FY12 Car Mortgage PL Others ` cr 13,074 17

  16. Slide 16: Commercial Financing

    Commercial Financing Advances break up  Continued Growth 5% 8% 5% 9% 18% 14% 12% 17% 13%  Focus on Bharat 34% 33% 29% 31% 31% (semi urban / rural areas) 48% 48% 51% 47% 47%  Gold loans launched selectively FY10 FY11 Q2FY12 Q3FY11 Q3FY12 Others Capital Market Agri CE/CV ` cr 9,168 12,988 14,565 11

  17. Slide 17: Wholesale Financing

    Wholesale Financing  Largely Working Capital Funded & Non funded `cr  Focus on quality end of 16,379 16,697 credit curve  Continued focus on Trade 11,658 Finance and Transaction 10,916 Banking 8,229 8,344 -Vendor Financing, 7,325 CMS and Operative 6,490 5,451 Accounts. -Focus on FX flows 3,232 wi

  18. Slide 18: Bank – Profit and Loss

    Bank – Profit and Loss `cr FY11 9MFY11 9MFY12 Q2FY12 Q3FY11 Q3FY12 Net Interest Income 2,097 1,532 1,825 605 537 651 Other Income 781 533 723 213 200 282 Net Total Income 2,878 2,065 2,548 818 737 933 Employee Cost 751 533 647 215 199 226 Other Operating Expenses 802 575 691 222 223 264 Operating Ex

  19. Slide 19: Bank Segment Performance

    Bank Segment Performance Segmental PBT (`cr) FY11 9MFY11 9MFY12 Q2FY12 Q3FY11 Q3FY12 Corporate/Wholesale Banking 544 374 701 198 131 265 Retail Banking 339 240 445 165 84 145 Treasury & BMU* 305 199 13 19 57 3 Total 1,188 813 1,159 382 272 413 * Balance Sheet Management Unit 19

  20. Slide 20: Bank Advances

    Bank Advances Advances (` cr) FY11 Q2FY12 Q3FY11 Q3FY12 Commercial vehicles & Construction equipments 6,251 7,351 5,548 7,540 Agriculture Finance 4,220 4,248 3,753 4,894 Mortgage loans 6,877 7,528 6,626 7,935 Personal loans 1,305 1,501 1,221 1,689 Corporate Banking 9,417 14,900 10,522 15,492 Others

  21. Slide 21: Bank Balance Sheet

    Bank Balance Sheet ` cr FY11 Q2FY12 Q3FY11 Q3FY12 Net Worth 6,796 7,361 6,578 7,670 Deposits 29,261 36,390 28,288 38,385 CA 5,460 5,792 4,655 6,189 SA 3,331 3,564 3,213 4,426 Term Deposit 15,388 19,828 14,385 21,841 Certificate of Deposit 5,082 7,207 6,035 5,929 Borrowings 11,724 12,771 9,703 15,242

  22. Slide 22: Bank Key Ratios

    Bank Key Ratios FY11 Q2FY12 Q3FY11 Q3FY12 CAR % $ 19.9 17.8 20.4 17.5 Tier I (%) $ 18.0 15.9 18.2 15.6 Gross NPA (` cr) 362 378 484 439 Gross NPA (%) * 1.2 1.0 1.7 1.1 Net NPA (` cr) * 146 161 164 196 Net NPA (%) * 0.5 0.4 0.6 0.5 RoA (%) 1.8 1.8 1.5 1.8 $ Includes profits for 9M Excluding unaudited

  23. Slide 23: Kotak Mahindra Prime

    Kotak Mahindra Prime ` cr FY11 Q2FY12 Q3FY11 Q3FY12 Total income 1,365 424 384 474 Profit before tax 482 134 142 152 Profit after tax 318 90 94 104 ` cr FY11 Q2FY12 Q3FY11 Q3FY12 Total Advances 11,145 12,547 10,369 12,379 Car Advances 8,489 9,821 7,949 9,737 Net NPA* 30 22 39 23 Net NPA (%)* 0.3 0.2

  24. Slide 24: Life Insurance

    Life Insurance Gross Premium `cr  High capital efficiency  Product Mix reflects 1,534 1,722 426 413 421 companies focus on Longer tenure products . 221 188 288 280 82 57 53 2 72 925 40 685 135  Protection business has 65 97 shown an increase FY10 FY11 Q2FY12 Q3FY11 Q3FY12 Renewal Group Single Ind

  25. Slide 25: Life Insurance

    Life Insurance Sum Assured ` 000 cr AUM ` cr 8,270 8,164 8,284 7,842 142 147 130 6,461 122 92 FY10 FY11 Q2FY12 Q3FY11 Q3FY12 FY10 FY11 Q2FY12 Q3FY11 Q3FY12 Number of Branches PAT ` cr 214 202 202 203 204 101 69 53 47 24 FY10 FY11 Q2FY12 Q3FY11 Q3FY12 25 FY10 FY11 Q2FY12 Q3FY11 Q3FY12

  26. Slide 26: Kotak Securities

    Kotak Securities Market ADV ( ` 000 cr) ADV ` cr (KS) 146 150 142 135 5,340 96 86 4,648 78 101 100 4,261 35 4,160 3,925 38 43 39 31 30 23 19 14 21 12 FY10 FY11 Q2FY12 Q3FY11 Q3FY12 FY10 FY11 Q2FY12 Q3FY11 Q3FY12 Cash Future Option ` cr FY11 Q2FY12 Q3FY11 Q3FY12 Total income 738 152 196 134 Profit be

  27. Slide 27: Kotak Mahindra Capital

    Kotak Mahindra Capital Client Transaction Size (USD mn) Lead Manager to Long Term Infrastructure Bond – Tranch1 issue 97 Investment by Actis Private Equity 71 Open offer for INEOA ABS (India) Ltd. by Styrolution (Jersey) Ltd. 36 Acquisition of 100% stake in BS Ispat Ltd by Oriental Iron Casting Ltd

  28. Slide 28: Asset Management

    Asset Management ` 51,018 cr ` 48,669 cr 28

  29. Slide 29: Kotak Investment Advisors

    Kotak Investment Advisors Realty Funds Private Equity Funds  Corpus advised / managed –  Corpus advised / managed – ` 3,530 cr ` 2,098 cr  48 Investments; 9 full exits, 9 partial  33 Investments; 3 full exits, 1 partial exits exit Domestic realty funds raised during FY12 - committed corpus ` 509

  30. Slide 30: Geographical Presence

    Geographical Presence Wide National Footprint … .. With Multiple Points of Presence Business Branches (Dec, 11) Banking 330 Car Finance 68 Life Insurance 204 Securities 1,416 Mutual Fund 83 Total 2,101 ~ International offices situated in London, New York, California, Dubai, Abu Dhabi, Bahrain, Mauri

  31. Slide 31: Bank Awards & Recognition

    Bank Awards & Recognition Ranked # 10 in Asia Pacific Top 20 Companies for Leaders list, 2011 Mr. Uday Kotak was awarded “Financial Leadership Award” at NDTV Profit's Business Leadership Awards Awarded Hewitt Best Employers in India 2011 & 2009; only Bank to be in top 25 Awarded Silver Shield for fi

  32. Slide 32: 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 Ranked #

  33. Slide 33: Awards & Recognition

    Awards & Recognition Lipper Fund Award 2011 for Kotak Bond Regular – ‘Best Fund over 10 years Bond Indian Rupee’ 2011:Best Investment Bank in India (Sixth year in a row) Best Domestic 2011: Best Domestic Equity House Investment Bank 2011: Best Equity House (Fourth year in a row) 2011 (Second year in

  34. Slide 34: 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

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