Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q1 FY16 Earnings Presentation
41 slides from Kotak Mahindra Bank's earnings presentation, Jul 30, 2015
Slide 1: Investor Presentation Q1FY16
INVESTOR PRESENTATION Q1FY16 July 30, 2015
Slide 2: Standalone Highlights Q1FY16
Standalone Highlights Q1FY16 PAT 4.2% ` 103,614 cr 1.04% ` 190 cr [5.0%] [ ` 56,922 cr] [ ` 430 cr] [0.98%] TOTAL ASSETS CAR # 16.5% [19.1%] 34% ` 166,874 cr 1,260 [ ` 89,134 cr] Tier I ` 40,115 cr 15.3% [614] [ ` 19,037 cr] [18.1%] Figures in [brackets] are Q1FY15 numbers # As per Basel III, includ
Slide 3: Merger Accounting
Merger Accounting RBI approved merger of ING Vysya Bank with Kotak Mahindra Bank wef April 1, 2015 The results for the quarter ended June 30, 2015 include those of erstwhile ING Vysya Bank Limited (eIVBL) The merger has been done as per “The Pooling of Interests Method” in accordance with Accoun
Slide 4: Significant Provisions Arising Post Merger
Significant Provisions Arising Post Merger Q1FY16 results include impact of the following: Retiral benefits of eIVBL ` 339 cr (` 32 cr for Q1FY15) Provisions and contingencies in Q1FY16 ` 305 cr, of which a significant portion is from eIVBL. – Provisions and contingencies for Kotak Mahindra Bank
Slide 5: Merger implementation plan
Merger implementation plan Planning AO DO Merger Kotak & ING Competition Reserve announce- shareholders commission of Bank of ment; approvals; India India Nov 20, 2014 Jan 7, 2015 approval; approval; Feb 20, 2015 Apr 1, 2015 Implementation 2016 Full integration around April Day 0 2016 April 1, 2015
Slide 6: Integration Journey
Integration Journey Progress and Plan • Wholesale and Treasury businesses already merged • Support functions integration to be completed in Q2 FY16 • Retail Asset businesses to be integrated during Q3/Q4 FY16 • Branch Banking business to be integrated around Apr‟16 Process & Others: • Product harmon
Slide 7: Steps to unlocking merger value
Steps to unlocking merger value Transformational Changes Best Practices Productivity Best in class Synergies industry New Customer Strong Credit and benchmarks Segments Risk Management Digital Rationalisation Sweating the practices transformation Synergies eIVBL branch Efficient Create i
Slide 8: eIVBL Stressed book
eIVBL Stressed book About 6% of the eIVBL book (funded and non-funded) is in various forms of stress (i.e. about 2.5% of the combined book). This includes – NPAs – Assets Sold to ARCs; – Assets under CDRs; Restructured assets; – Standard, but under “Watchlist” Primarily Corporate Book – SME; Ret
Slide 9: Profit and Loss Q1FY16
Profit and Loss Q1FY16 ` cr Q4FY15 Q1FY15 Q1FY16 FY15 Net Interest Income 1,123 1,002 1,598 4,224 Other Income 668 400 593 2,028 Net Total Income 1,791 1,402 2,191 6,252 Employee Cost 379 348 929 1,450 Other Operating Expenses* 552 388 665 1,805 Operating Expenditure 931 736 1594 3,255 Operating Pro
Slide 10: Performance Q1FY16
Performance Q1FY16 NII (` cr) and NIM Other Income (` cr) Q4FY15 Q1FY15 Q1FY16 FY15 Fee and Services 389 315 418 1,353 Treasury Income 164 54 138 421 ARD Buyout Income 116 29 36 239 Others (1) 2 1 15 Total 668 400 593 2,028 10 Merger of ING Vysya Bank effective April 1, 2015. Previous periods not co
Slide 11: Segment Performance Q1FY16
Segment Performance Q1FY16 Bank Segmental PBT As per RBI (` cr) Q4FY15 Q1FY15 Q1FY16 FY15 Corporate/Wholesale Banking 438 291 369 1,402 Retail Banking # 292 216 12 957 Treasury, BMU* & Corporate 63 140 (89) 468 Centre ** Unallocated Income 1 5 - 6 Total 794 652 292 2,833 # A large part of retiral co
Slide 12: Advances & Investments
Advances & Investments 30-Jun-15 [` 103,614 cr] ` cr 31-Mar-15 30-Jun-14 30-Jun-15 Corporate Banking 20,299 18,568 31,205 CV/CE 5,204 5,104 5,626 Agriculture Division 12,106 9,941 15,268 Business Banking 6,422 5,568 21,476 Home Loans and LAP 14,709 12,312 20,756 Small Business, Personal 6,263 4,723
Slide 13: Balance Sheet
Balance Sheet ` cr 31-Mar-15 30-Jun-14 30-Jun-15 Net Worth 14,141 12,714 21,887 Deposits 74,860 61,407 116,812 CA 13,181 8,024 17,385 SA 14,036 11,013 22,730 Certificate of Deposit 3,785 4,701 11,074 Term Deposit Others 43,858 37,669 65,623 Borrowings 12,150 11,296 21,435 Other Liabilities and Provi
Slide 14: Key Ratios
Key Ratios CAR & Tier I (%) Savings Account (` cr & % of deposits) CAR(%) Tier I(%) ^ including unaudited profits 14,036 11,013 22,730 19.1% 17.2% 16.5% 19.5% 18.1% 16.2% 18.7% 15.3% 17.9% Mar-15 Jun-14^ Jun-15^ Mar-15 Jun-14 Jun-15 GNPA and NNPA (%) Asset Quality 2.3% Restructured loans considere
Slide 15: Consumer Banking Liabilities
Consumer Banking Liabilities No of Branches Highlights Mar-15 Jun-14 Jun-15 CASA and TDs below ` 5 cr constitute 70% of total 684 614 1,260 deposits (65% as on Jun- 14) No of ATMs TDs below ` 1 cr were Mar-15 Jun-14 Jun-15 ` 32,611 cr (` 15,624 cr as on Jun-14) 1,273 1,123 1,942 Added ~ 2.7 la
Slide 16: Geographical Presence
Geographical Presence Branches 1,260 [28] [No./%] 2 356/28% North 9 63 West East 7 37 388/31% 63/5% 94 1 46 51 South 453/36% 4 8 1 1 114 26 7 34 No of ATMs 13 2 15 266 1,942 83 Bank has a Rep office in Dubai 6 108 153 77 32 16
Slide 17: Digital Focus @ Kotak
Digital Focus @ Kotak Mobility Highlights Integrated M-store In Mobile App , Bharat banking App 800 + Campaigns Launched Over 80 features in Mobile banking Bill payments, TD, RD & Fund Transfers Kotak Bharat- first multilingual/ no data Digital Acquisition connectivity App Recommendations based
Slide 18: Consolidated Highlights Q1FY16
Consolidated Highlights Q1FY16 PAT CAR # BOOK VALUE* 17.2% PER SHARE [18.8%] ` 517 cr Tier I # ` 125,522 cr ` 166 [ ` 77,076 cr] [ ` 128 ] [ ` 698 cr] 16.1% [17.9%] NETWORTH TOTAL ASSETS 4.3% ` 30,226 cr 0.93% ` 209,689 cr [5.0%] [ ` 19,785 cr] [0.81%] [ ` 126,743 cr] Figures in [brackets] are Q1FY1
Slide 19: Consolidated Key Financials
Consolidated Key Financials Advances [` cr] Networth [` cr] 1,25,522 30,226 88,632 22,153 77,076 19,785 Mar-15 Jun-14 Jun-15 Mar-15 Jun-14 Jun-15 Total Assets [` cr] PAT [` cr] 2,09,689 913 1,48,576 698 1,26,743 517 Mar-15 Jun-14 Jun-15 Q4FY15 Q1FY15 Q1FY16 19 Merger of ING Vysya Bank effective Apri
Slide 20: Consolidated Advances & Investments
Consolidated Advances & Investments 30-Jun-15 (` 125,522 cr) ` cr 31-Mar-15 30-Jun-14 30-Jun-15 Corporate Banking 24,546 21,770 34,837 CV/CE 5,204 5,104 5,626 Agriculture Division 12,106 9,941 15,268 Business Banking 6,422 5,568 21,476 Auto loans 14,691 13,363 15,039 Home Loans and LAP 14,709 12,312
Slide 21: Consolidated PAT
Consolidated PAT ` cr Q4FY15 Q1FY15 Q1FY16 FY15 Kotak Mahindra Bank 527 430 190 1,866 Kotak Mahindra Prime 143 120 119 507 Kotak Mahindra Investments 40 17 30 106 Kotak Securities 96 68 67 290 Kotak Mahindra Capital 30 (4) 3 12 Company Kotak Mahindra Old Mutual Life 76 49 66 229 Insurance Kotak Mahi
Slide 22: Entity Wise Networth
Entity Wise Networth ` cr 31-Mar-15 30-Jun-14 30-Jun-15 Kotak Mahindra Bank 14,141 12,714 21,887 Kotak Mahindra Prime 3,350 2,963 3,469 Kotak Mahindra Investments 617 528 717 Kotak Securities 2,384 2,162 2,451 Kotak Mahindra Capital Company 415 398 418 Kotak Mahindra Old Mutual Life 1,291 1,091 1,33
Slide 23: Kotak Mahindra Prime
Kotak Mahindra Prime Customer Assets (`cr) & NPA (%) 25,000 0.5% 0.5% 0.5% 0.4% 20,000 0.4% 4,981 5,100 4,658 0.4% 15,000 0.3% 0.3% 0.3% 10,000 0.2% 14,726 13,418 15,070 0.2% 5,000 0.1% 0.1% 0 0.0% Mar-15 Jun-14 Jun-15 Others Car Net NPA (%) ` cr Q4FY15 Q1FY15 Q1FY16 FY15 NII 252 216 235 915 Other i
Slide 24: Kotak Mahindra Investment
Kotak Mahindra Investment Customer Assets (`cr) & NPA (%) 4,000 0.3% 3,431 0.4% 3,500 3,268 0.3% 3,000 0.3% 2,383 2,500 0.2% 2,000 0.1% 0.2% 1,500 0.1% 1,000 0.1% 500 0.1% 0 0.0% Mar-15 Jun-14 Jun-15 Customer Assets Net NPA (%) ` cr Q4FY15 Q1FY15 Q1FY16 FY15 NII 50 30 48 164 Other income 21 6 8 37 T
Slide 25: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance New Business Premium (` cr) Highlights Individual business grew by 115% against private insurance industry growth of 14% 328 791 On APE (Single @ 1/10th) basis, 134 248 Kotak Bank share for Q1FY16 is 48% (PY – 27%) for first year 46 147 individual premium 26 16 Gr
Slide 26: Kotak Securities
Kotak Securities Market ADV (` ‘000 cr) ADV (` cr) - KS 8,372 23 21 7,813 7,107 55 51 21 6,053 23 51 52 214 218 178 134 Q4FY15 Q1FY15 Q1FY16 FY15 Q4FY15 Q1FY15 Q1FY16 FY15 Option Future Cash ` cr Q4FY15 Q1FY15 Q1FY16 FY15 Total Income 289 223 250 960 Profit before tax 147 103 102 441 Profit after ta
Slide 27: Kotak Mahindra Capital Co.
Kotak Mahindra Capital Co. Announced Transactions (` cr) Completed Transactions (` cr) Exclusive Financial Advisor to Rights Issue Bandhan Financial Services Limited – Investment by GIC, IFC and SIDBI `1,600 cr ` 7,498 cr Buyback of equity shares by CRISIL Initial Public Offerings (IPOs) Limited ` 1
Slide 28: Asset Under Management
Asset Under Management June 30, 2014 June 30, 2015 401 361 11,965 14,242 1% 18% 1% 15% 39,093 47% 31,435 41% 18% 11,822 21,392 23% 9% 6% 7% 14% 6,451 5,882 4,501 13,255 Domestic MF Debt Domestic MF Equity Alternate Asset Offshore Funds Insurance PMS AUM ` 66,575 cr AUM ` 94,225 cr 28
Slide 29: Kotak Mahindra AMC & Trustee Co
Kotak Mahindra AMC & Trustee Co Average Assets Under Management (`cr) Highlights Closing equity market share Jun-15 at 3.22% up 48,337 from 2.59% in Mar 15 41,652 14% growth in overall 38,600 35,885 AAUM in Q1FY16 vs Q4FY15 against an industry AAUM growth of 3% Q1FY16 PBT primarily increased d
Slide 30: Group Profile
GROUP PROFILE
Slide 31: The Journey So far…
The Journey So far… Kotak Mahindra Bank is the 4th Largest Private Sector Bank Rating for Bank, KMP, KMIL, KS 31
Slide 32: Organizational Overview
Organizational Overview 32 + Car Finance + Other Lending Kotak Mahindra Old Mutual Life Insurance + Life Insurance Kotak Mahindra Financial Services + Advisory Services for Middle East KOTAK MAHINDRA BANK Commercial Bank & Holding Company Kotak Mah Investments + Investments + Lending Kotak Mahindra
Slide 33: Kotak Uniqueness
Kotak Uniqueness - Strong capital base: Bank‟s - Ability to take advantage CRAR* -16.5% as on 30 Jun 15 of opportunities & build - Strong on ground relationships profitable business models key contributor to achieve low risk & high return - Ability to gauge warning - Consistent stock performance sig
Slide 34: The Path of Leadership
The Path of Leadership Attract & Retain Talent - High degree of stability within Risks Management the management team, many Strong Capital Position have been with the Group for - Extensive on-the-ground over 15 years Capital adequacy amongst the presence and superior highest in the Indian banking -
Slide 35: Bank Awards & Recognition
Bank Awards & Recognition Best Private Bank 2015 by Euromoney Best Bank in 2014 by Business India Received EMC Transformers award for innovative use of storage technology Awarded Best Excellence in performer in Demat Security under Banker of the Year 2014 ‘Most Imminent Bank Account Growth Rate 'Sec
Slide 36: Awards and Recognition
Awards and Recognition Best Investment Bank in Best Brokerage House - India - Best Broker in India, FinanceAsia India, FinanceAsia Country The Asset Triple A Country Country Awards for Achievement Awards for Achievement Awards 2014 2015 2014 Ranked #1 on a weighted Best SEO for Website, India Best E
Slide 37: 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 38: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work ARVIND KATHPALIA Joined Kotak in 2003; First charge | Group Head , Operations, Technology & Finance, Kotak Mahindra Finance Current charge | President and Group Chief Risk Officer, Kotak Mahindra Bank On being a professional entrepreneur | I joined Ko
Slide 39: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work JAIMIN BHATT Joined Kotak in 1995; First charge | Proprietary Investments Current charge | President & Group CFO On being a professional entrepreneur | My initial work at Kotak was in the area of Proprietary Investments, where I worked with Narayan (S
Slide 40: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work NARAYAN S.A. Joined Kotak in 1992; First charge | Associate Vice President, Kotak Mahindra Finance (Operations); Current charge | President – Commercial Banking, Kotak Mahindra Bank On being a professional entrepreneur | In 1996, broking was largely s
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