Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q3 FY22 Earnings Presentation
38 slides from Kotak Mahindra Bank's earnings presentation, Jan 28, 2022
Slide 1: Exchange filing cover letter for investor presentation
e kotak Kotak Mahindra Bank J anuary 28, 20 22 BSELimited National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, Plot No.C/ 1, G Block, Phiroze J eejeebhoy Towers, Bandra-Kurla Complex, Dalal Street, Bandra (East), Mumbai 400 001 Mumbai 400 051 BSE Scrip Code: 50
Slide 2: Investor Presentation Q3FY22
Investor Presentation Q3FY22 Presentation on financial results for the period ended 31st December, 2021 28th January, 2022
Slide 3: Consolidated Highlights Q3FY22
Consolidated Highlights Q3FY22 PAT Customer Return on Assets* Assets ` 3,403 cr ` 309,042 cr 2.60% [` 2,602 cr] [` 255,768 cr] [2.21%] CAR# Return on Book Value 24.5% Equity per Eq. share [24.9%] Tier I# 14.8% ` 467 23.7% [12.8%] [` 412] [24.3%] Figures in [brackets] are Q3FY21 numbers # As per Base
Slide 4: Consolidated PAT
Consolidated PAT ` cr Q3FY22 Q3FY21 Q2FY22 FY21 PAT Contribution Kotak Mahindra Bank 2,131 1,854 2,032 6,965 Kotak Mahindra Prime 254 149 240 535 Kotak Mahindra Investments 111 68 89 258 Kotak Securities 270 184 243 793 Kotak Mahindra Capital 103 38 58 82 Kotak Mahindra Life Ins 247 167 155 692 Kota
Slide 5: Entity-wise Capital & Reserves and Surplus
Entity-wise Capital & Reserves and Surplus ` cr 31-Dec-21 31-Dec-20 30-Sep-21 Kotak Mahindra Bank 69,617 61,914 67,376 Kotak Mahindra Prime 7,182 6,439 6,928 Kotak Mahindra Investments 2,388 2,044 2,277 Kotak Securities 6,039 5,081 5,769 Kotak Mahindra Capital 873 680 769 Kotak Mahindra Life Insuran
Slide 6: Standalone Highlights Q3FY22
Standalone Highlights Q3FY22 PAT NII No. of CASA Ratio ` 4,334 cr Customers [` 3,876 cr] ` 2,131 cr NIM 30.7 mn 59.9% [` 1,854 cr] 4.62% [58.9%] [25.0 mn] [4.36%] Customer Net NPA ROA CAR# Assets* 2.0% 23.3% [1.9%] 4.39% [23.6%] [4.72%] ` 274,569 cr 0.79% ROE Tier TierI#I# [` 228,791 cr] [1.24%^] 12
Slide 7: Profit and Loss Account
Profit and Loss Account ` cr Q3FY22 Q3FY21 Q2FY22 FY21 Notes Net Interest Income 4,334 3,876 4,021 15,340 COVID-19 provision reversed in Q3: ` 279 cr, Other Income 1,364 1,291 1,812 5,006 continue to carry: ` 1,000 cr Fee and Services 1,496 1,121 1,419 4,331 Family pension consequent to 11th Bi-
Slide 8: Fees & Services
Fees & Services ` cr Q3FY22 Q3FY21 Q2FY22 FY21 Distribution & Syndication Income 230 178 312 785 General Banking Fees 1,221 913 1,064 3,396 Others 45 30 43 150 Fees and Services 1,496 1,121 1,419 4,331 7
Slide 9: Asset Quality
Asset Quality 31-Dec-20 ` cr 31-Dec-21 30-Sep-21 Slippage for the quarter Proforma GNPA 6,983 7,126 7,658 ` 750 cr (0.3%of Advances); NNPA 2,004 2,646 2,491 Credit cost on advances for Recoveries and upgrades – ` GNPA (%) 2.71% 3.27% 3.19% 1,086 cr Q3FY22: 35 bps annualised NNPA (%) 0.79% 1.24% 1.06
Slide 10: Balance Sheet
Balance Sheet ` cr 31-Dec-21 31-Dec-20 30-Sep-21 Capital & Reserves and Surplus 69,617 61,914 67,376 Deposits 305,286 265,304 291,711 CA 57,097 43,975 53,280 SA 125,822 112,199 123,479 Term Deposits 122,367 109,130 114,952 Of which: TD Sweep 23,111 21,601 24,151 Borrowings 27,560 48,223 32,838 Other
Slide 11: Customer Assets
Customer Assets 31-Dec-21 (` 274,569 cr) Customer Assets ` cr 31-Dec-21 31-Dec-20 30-Sep-21 YoY QoQ Home Loans & LAP 68,871 49,977 61,479 38% 12% Consumer Bank WC 24,080 20,548 23,079 17% 4% (Secured) PL, BL and Consumer 8,554 7,525 7,260 14% 18% Durables Credit Cards 4,948 4,557 4,363 9% 13% CV/CE
Slide 12: Deposit
Deposit CASA (` cr) Cost of SA CASA % 59.9% 58.9% 60.6% 3.51% [3.81%] Floating rate SA CASA & TDs below ` 5 cr, as % of total deposits Fixed rate SA TD Sweep as % of 88% [92%] total deposits 7.6% [8.1%] CA Branch Count (excl GIFT & DIFC) 1,647 [1,603] YoY % 32% Avg CA (YTD) 49,417 37,533 11% Avg SA
Slide 13: Investing in Technology Backbone
Investing in Technology Backbone For Acquisition, Engagement, Experience INFRASTRUCTURE CORE APPLICATIONS DIGITAL CHANNELS BUILD RESILIENCY & DIY JOURNEY, REINFORCE CORE SYSTEMS GO TO CLOUD STP & AUTOMATION Micro ATM Personal Loans DIY Oracle Cloud Infrastructure (OCI) Lead Mgt, LOS - Phase
Slide 14: Kotak MB: SuperApp for all financial needs
Kotak MB: SuperApp for all financial needs Bank Pay Shop Key Launches in Q3 Invest Protect Billpay & Loans Forex All New Loans Smart EMI Kotak UPI Payment APY on Recharge card Convenience via Other Apps Mobile section • 50+ Products • Wide range of payment options - Pay your contact, Scan & Pay, Sen
Slide 15: Retail Assets
Key Launches in Q3 Mobile-first Retail Assets Building digital engagement journeys Revamped Dedicated Credit Card Loans Section Overview on on MB App MB App Existing to New to Co - Bank Bank origination Customer Categories DIY Assisted Net Banking Mobile App Branches Sales App Channels Home Buying P
Slide 16: Digitizing Merchant Offerings
Digitizing Merchant Offerings 3X UPI Transactions via Kotak Mobile App (Dec vs Apr’21) 31% 54% 48% Augment Core Payment Stack and kotak.biz Enrich with VAS through partnerships Enriched Version Jun Sep Dec Launched in Q3 (QoQ Txn volume growth incl. P2P and P2M) Live Key launches Empower merchant to
Slide 17: Ecosystems
Ecosystems Partnerships and Fintechs Kotak-orchestrated Ecosystem: Kaymall in-app shopping API Banking 12 partners LIVE (4 new in Q3) 298 partners registered (incl. 70 WIP) 390+ APIs live Connected Banking 2 partners LIVE Account Aggregator OCEN Leveraging Regulatory GeM Sahay for flow based lending
Slide 18: CMS Platform
Transaction Banking Creating the Best Experience for our Customers Voice of the Customer “One of the best Portals for current features compared to others” Paperless, Seamless, End to End, Digital “Good Features - Simple and Convenient Trade Portal – End to End - Flows very well” “Very smooth and wou
Slide 19: Business Banking
Business Banking Transforming Transaction Banking Corporate BBPS ClickPay CMS 24x7 Paperless Supply Reporting Module Whitelabel SCM Mobility 2.0 Faster transaction 24x7 RTGS Chain Financing Robust, DIY, Hybrid Supply Enhanced processing with a NEFT API based on E-way Bill Scalable and Chain + Trade
Slide 20: Digital Highlights
Digital Highlights Netbanking WhatsApp Banking 58% YoY growth in Logins, Q3FY22 vs Q3FY21 62% YoY growth Monthly Active Users, Dec ‘21 vs Dec ‘20 Traditional 33% YoY growth in 90-day active user base, Q3FY22 vs Q3FY21 Emerging 40+ Services live, 2 new added in Q3 Digital 26% YoY growth in
Slide 21: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance ` cr Q3FY22 Q3FY21 Q2FY22 FY21 Gross Written Premium (` cr) Capital 562 562 562 562 3,108 2,623 2,915 11,100 Other Reserves and 3,560 3,291 3,313 3,483 Surplus Total Premium 3,108 2,623 2,915 11,100 Profit After Tax 247 167 155 692 (Shareholders’) Solvency Ratio (x) 2.6
Slide 22: Kotak Securities
Kotak Securities ` cr Q3FY22 Q3FY21 Q2FY22 FY21 Market ADV* (` ‘000 cr) Total Income 656 474 613 2,020 3,875 1,695 3,171 1,530 Profit Before Tax 359 245 325 1,057 Profit After Tax 270 184 243 793 Market Share Cash* - (%) 10.4 9.4 11.0 9.3 Overall Market Share* Q3FY22: 3.0% (Q3FY21: 2.0%) 1,596 branc
Slide 23: Kotak Securities - Digital Update
Kotak Securities - Digital Update 316% 416% growth YoY growth YoY in in Internet Mobile Trading ADV Trading ADV Enhanced • Seamless account opening Launched new trading website under 6 minutes New DIY Account - latest technology stack with • Capability to offer multiple trading Opening cutting edge
Slide 24: Kotak Mahindra Capital Company
Kotak Mahindra Capital Company Equity Advisory Bharti Airtel Ltd. Macrotech Developers Ltd. Financial Advisor for preferential allotment in IRB # Rights Issue # QIP Infrastructure Developers Limited ` 20,987 cr ` 4,000 cr ` 5,437 cr Star Health & Allied Indian Hotels Co. Ltd. Insurance Ltd. Fairness
Slide 25: Kotak Mahindra Investments
Kotak Mahindra Investments ` cr Q3FY22 Q3FY21 Q2FY22 FY21 Customer Assets* (` cr) NII 109 86 100 354 Other Income 59 23 42 74 NII and Other Income 168 109 142 428 Profit Before Tax 148 91 119 346 Profit After Tax 111 68 89 258 NNPA (%) 0.4% 0.8% 0.6% 0.6% CAR (%) (incl unaudited profits) 32.7% ROA (
Slide 26: Kotak Mahindra Prime
Kotak Mahindra Prime ` cr Q3FY22 Q3FY21 Q2FY22 FY21 Customer Assets* (` cr) NII 378 306 345 1,212 Other Income 118 72 90 220 NII and Other Income 496 378 435 1,432 Profit Before Tax 337 201 320 720 Profit After Tax 254 149 240 535 NNPA (%) 2.1% 0.9% 1.8% 1.8% CAR (%) (incl unaudited profits) 28.8% R
Slide 27: Kotak Mahindra AMC & Trustee Co.
Kotak Mahindra AMC & Trustee Co. Average Assets Under Management (` cr) - Overall ` cr Q3FY22 Q3FY21 Q2FY22 FY21 Profit Before Tax 192 122 130 465 Profit After Tax 149 91 97 346 Notes Average Assets Under Management (` cr) - Equity Overall Market share on AAUM increased to 7.4% in Q3FY22 (Q3FY21:
Slide 28: Assets Under Management and Relationship Value
Assets Under Management and Relationship Value 31st December, 2021 31st December, 2020 23% (Total: ` 386,465 cr) (Total: ` 314,833 cr) * Includes undrawn commitments, Relationship Value of Wealth + Priority + Investment Advisory as on wherever applicable 31st Dec, 2021 ~ ` 649,000 cr (PY: ~ ` 375,00
Slide 29: Geographical presence
Geographical presence 3 Branches 1,647* [No./%] 11 North Branches distributed 495 / 30% 91 11 across various geographies 72 102 West East 1 516 / 31% 127 / 8% 89 68 5 22 1 South 509 / 31% 1 165 48 9 42 27 Branch Classification 2 19 342 90 7 109 184 90 34 No. of ATMs 2,609 * Does not include branches
Slide 30: Group Profile
GROUP PROFILE
Slide 31: The Journey So far…
The Journey So far… ∞ First International Ability to Identify and Capitalize on Opportunities Branch ∞ Microfinance 2019 ARC 2013 ∞ Digital Bank - 811 BANK ∞ Kotak IDF 2020 2008 2008 ∞ Digital 2017 2011 Video Life Insurance* KYC 2003 2002 Auto Finance 2000 2013 2006 2004 2014 2010 Alternate ∞ ING Vy
Slide 32: Kotak – Diversified and integrated financial services
Kotak – Diversified and integrated financial services Kotak Mahindra Bank Commercial Bank & Parent Company Kotak Mahindra Kotak Mahindra Kotak Investment Kotak Mahindra Kotak Securities Prime Investments Advisors Capital Company ∞ Car Finance ∞ Investments ∞ Alternate Assets ∞ Investment Banking ∞ S
Slide 33: Present Across the Entire Value Chain
Present Across the Entire Value Chain Platform with Wide Product Portfolio Wholesale Banking Commercial Banking Consumer Banking Other Financial Services ∞ Corporate Loans ∞ Agriculture Finance ∞ Branch Banking ∞ Wealth Management ∞ Trade Finance ∞ Tractor Finance ∞ 811 ∞ Car and 2W Loans ∞ Business
Slide 34: Our Strengths
Our Strengths An integrated ∞ Balance Sheet, Market & Knowledge driven businesses encompassing all customer & geographic segments financial services conglomerate with a ∞ Wide spectrum of financial products and services that help to provide balance in market cycles, hedge against downturns in divers
Slide 35: Our Strategy
Our Strategy Keeping Technology at Leadership in digital Customer Centricity the Core capabilities Keep customer at the core of the Investing in technology (both business in order to provide a positive infrastructure and applications), with a Continue journey on best in class digital experience and
Slide 36: The Path of Leadership
The Path of Leadership Attract & Retain Talent - High degree of stability within the Risks Management kotak leadership team, with an Strong Capital Position average tenure of 20+ years with - Extensive on-the-ground the Group - Capital adequacy amongst the presence and superior sponsor / highest in
Slide 37: Strong and Committed Leadership Team
Strong and Committed Leadership Team Senior Leadership Team with Long Vintage Dipak Gupta Gaurang Shah KVS Manian D Kannan Shanti Jt. MD WTD WTD Ekambaram 30 Years 25 Years 26 Years 30 Years 30 Years Compliance, IT, HR & Credit, ARD, Asset Corporate, Marketing, Digital, Mgmt, Alternate Institutional
Slide 38: 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