Axis Bank Limited · NSE:AXISBANK
Axis Bank — H1 FY2013 Earnings Presentation
34 slides from Axis Bank's earnings presentation, October 2012
Slide 1: FY 2012-13 First Half Results Earnings Presentation
FY 2012-13 First Half Results Earnings Presentation
Slide 2: 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 3: Introduction
Introduction Performance Overview Business Overview 2
Slide 4: Overview
Overview Snapshot (As on September 30, 2012) Total Assets `3,02,681 crores Banking Net Advances `1,72,132 crores Operations Treasury Total Deposits `2,35,619 crores Net Profit (Q2FY13) `1,124 crores Large & Mid Infrastructure Net Profit (H1FY13) `2,277 crores Corporate Shareholders’ Funds `25,234 cr
Slide 5: Shareholding Pattern
Shareholding Pattern (As on September 30, 2012) Share Capital `415 crores Shareholders’ Funds ` 25,234 crores Book Value Per Share ` 608.74 Market Capitalisation ` 46,415 crores (as on October 12, 2012) 4
Slide 6: High Shareholder Returns
High Shareholder Returns (`) A strong franchise demonstrating consistent value creation over time 5
Slide 7: Performance Overview
Introduction Performance Overview Business Overview 6
Slide 8: Performance Highlights
Performance Highlights Q2FY13 H1FY13 Net Profit 22% YOY 22% YOY Net Interest Income 16% YOY 21% YOY Fee Income 20% YOY 15% YOY Operating Revenue 21% YOY 21% YOY Operating Profit 23% YOY 24% YOY Net Interest Margin 3.46% 3.42% Cost of Funds 6.54% 6.62% 7
Slide 9: Highlights of Q2FY13
Highlights of Q2FY13 Retail Franchise continues to show traction • Savings Bank Deposits registered strong growth, rose 20% YOY to ` 56,189 crores • Retail Term Deposits grew 39% YOY, constituted 40% of Total Term Deposits • CASA and Retail Term Deposits constituted 64% of Total Deposits • Retail As
Slide 10: Profitability
Profitability Sustained Growth: Robust Core Revenues ` crores 22% YOY 23% YOY 21% YOY 22% YOY 24% YOY 21% YOY 9
Slide 11: Consistent Net Profit Growth
Consistent Net Profit Growth Quarterly Net Profits ` crores 10
Slide 12: Strong CASA franchise supports margin stability
Strong CASA franchise supports margin stability CASA Deposits CASA Ratio (` crores) 95,538 91,422 86,756 86,942 82,140 39,349 39,754 34,165 35,354 39,459 51,668 52,777 56,189 46,786 47,297 Sep '11 Dec '11 Mar '12 Jun '12 Sep '12 Savings Account Deposits Current Account Deposits Cost of Funds Net Int
Slide 13: Stable CASA growth underpins Low-Cost Deposit Franchise
Stable CASA growth underpins Low-Cost Deposit Franchise CASA and Retail Term Deposits (` crores) 1,51,923 Deposits (H1FY13) YOY Growth (%) 1,39,288 1,40,394 1,31,342 1,22,838 Savings Bank 20 56,385 47,866 53,452 44,586 40,698 Current Accounts 11 CASA 16 51,668 56,189 47,297 52,777 46,786 Retail Term
Slide 14: Growing Net Interest Income
Growing Net Interest Income ` crores 4,507 2,327 2,007 3,731 Q2FY12 Q2FY13 H1FY12 H1FY13 16% YOY 21% YOY NIIs for the last 5 years (`crores) FY08 2,585 FY09 3,686 FY10 5,004 FY11 6,563 FY12 8,018 CAGR 33% 13
Slide 15: Diversified Fee Income Profile
Diversified Fee Income Profile ` crores 20% YOY 15% YOY Q2FY13 H1FY13 14
Slide 16: Stable Asset Quality
Stable Asset Quality Segmental Loan Mix Asset Quality (As on September 2012) Five Year NPA trend Provision coverage of 80% as on September 2012 including prudential write-offs (90% before accumulated write-offs) Cumulative restructured assets were `4,068 crores (2.04% of gross customer assets) a
Slide 17: Capital Strength
Capital Strength Comfortable Capital Adequacy Ratio * Includes unaudited profits for the quarter / half year 16
Slide 18: Business Overview
Introduction Performance Overview Business Overview 17
Slide 19: Well distributed, countrywide network of Branches and ATMs
Well distributed, countrywide network of Branches and ATMs Multiple channels drive business growth Expanding footprint across centres Extensive use of technology to provide services One of the largest ATM networks in the country Branches Domestic Branch network1 983 1,390 1,622 1,741 7% 8% 1
Slide 20: Retail Liabilities
Retail Liabilities Savings Bank Deposits Retail Deposits* (% of Total Deposits) (` crores) 20% YOY Retail Term Deposits (RTD) Share of RTD as % of Term Deposits (` crores) 39% YOY Retail Deposits * constitutes 48% of Total Deposits * Retail Deposits include Savings Bank and Retail Term Deposits
Slide 21: Retail Assets
Retail Assets Key Highlights Composition of Retail Advances Retail assets constitute 26% of the Bank’s total advances in Sep’12 against 21% in Sep’11 Secured loans make up 87% of retail loans Home Loans account for 68% of retail loans 111 Asset Sales Centres (ASCs) with standardized appraisa
Slide 22: Retail Fees
Retail Fees (` crores) Key Highlights Focus on cross-selling to existing customers key driver for growth 43% YOY Third-party products sold include mutual funds, insurance, on-line broking, portfolio management services (non-discretionary) and gold coins. Healthy retail asset growth providing
Slide 23: Retail Payments Business
Retail Payments Business Key Highlights Card Spends Number of Cards (in lacs) (` crores) One of the largest issuers of 133 debit cards 110 Over 9 lac credit cards in circulation Credit card acquisition focused 58 on large retail depositor base 53% YOY 43 Travel Currency Cards in 12 currenc
Slide 24: Corporate Banking Franchise
Corporate Banking Franchise Presence across the Value Chain End to End Player Investment Non-Bank Business Credit Syndication Treasury Banking Units Banking • Strong franchise spread across liability and asset businesses • Adopted value generating Originate and Distribute Model • Dominant player in
Slide 25: Business Banking
Business Banking Current Accounts Key Highlights ` crores • Strong Transaction Banking capabilities driving growth 11% YOY • Wide range of products with customised offerings for various business segments • Growth aided by “Club 50” and “Channel One” High-end premium products Current A/c Deposits (
Slide 26: Business Banking
Business Banking Cash Management Services & Government Business Key Highlights 13,441 • Collection of Central Government taxes on behalf of CBDT and CBEC, including through e-payments 9,505 • Collection of local taxes on behalf of 10 State Governments and UTs • Collections and payments for Central G
Slide 27: Large and Mid-Corporate Banking
Large and Mid-Corporate Banking Advances Fees (` crores) (` crores) 15% YOY (` crores) 7% YOY 16% YOY 26
Slide 28: Debt Capital Markets
Debt Capital Markets Key Highlights Placement & Syndication of Debt Issues ` crores Dominant player in placement and 31,666 32,375 syndication of debt issuances Ranked No. 1 debt arranger by Bloomberg for nine month period ended September 2012. 2% YOY Ranked No. 1 debt arranger by Prime Data
Slide 29: SME and Agriculture Business
SME and Agriculture Business ` crores 14% YOY 15% YOY 28
Slide 30: Rating Distribution: LC & MC
Rating Distribution: LC & MC 62% of corporate advances have rating of at least ‘A’ in September 2012 29
Slide 31: Rating Distribution: SME
Rating Distribution: SME 82% of SME advances have rating of at least ‘SME3’ in September 2012 30
Slide 32: Industry-wise Distribution (Top 10)
Industry-wise Distribution (Top 10) Outstanding as on September 30, 2012 (%)1 Rank Sectors Non-fund Fund-based Total based 1. Power Generation & Distribution 4.88 20.35 10.06 2. Infrastructure2 8.75 12.22 9.91 3. Financial Companies3 6.92 8.84 7.57 4. Metal & Metal Products 5.11 8.49 6.24 5. Enginee
Slide 33: International Presence
International Presence Branches at Singapore, Hong Kong, DIFC – Dubai & Colombo Representative offices at Shanghai, Dubai & Abu Dhabi Axis U.K. Limited incorporated as a subsidiary Business offerings include Corporate Loans, Trade Finance Products, Debt Syndication and Liability Business Total Asset
Slide 34: Thank You
Thank You 33 A