Axis Bank Limited · NSE:AXISBANK
Axis Bank — Q3 FY2014 Earnings Presentation
34 slides from Axis Bank's earnings presentation, January 2014
Slide 1: Earnings Presentation
FY 2013-14 Third Quarter 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, Performance Overview, Business Overview
Introduction Performance Overview Business Overview 2
Slide 4: Overview
Overview Snapshot (As on December 31, 2013) Total Assets `3,59,450 crores Net Advances `2,11,467 crores Banking Treasury Total Deposits `2,62,398 crores Operations Net Profit (Q3FY14) `1,604 crores Net Profit (9MFY14) `4,375 crores Large & Mid Infrastructure Corporate Shareholders’ Funds `37,649 cro
Slide 5: Shareholding Pattern
Shareholding Pattern (As on December 31, 2013) Share Capital `469 crores Shareholders’ Funds ` 37,649 crores Book Value Per Share ` 802.32 Market Capitalisation ` 55,291 crores (as on January 15, 2013) 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 Q3FY14 9MFY14 Net Profit 19% YOY 21% YOY Net Interest Income 20% YOY 25% YOY Fee Income 4% YOY 8% YOY Operating Revenue 13% YOY 21% YOY Operating Profit 11% YOY 26% YOY Net Interest Margin 3.71% 3.78% CASA1 14% YOY CASA (Daily Average) 15% YOY Total Deposits1 7% YOY Total Adva
Slide 9: Highlights of Q3FY14
Highlights of Q3FY14 Retail Franchise continues to show traction • Savings Bank Deposits registered strong growth, rose 21% YOY to `69,627 crores as on December 31, 2013, and 18% YOY to `63,094 crores on daily average basis • Domestic Retail Term Deposits# grew 37% YOY, constituted 60% of Domestic T
Slide 10: Growing Net Interest Income
Growing Net Interest Income ` crores 20% YOY 25% YOY Trend in NIIs (`crores) FY10 5,004 FY11 6,563 FY12 8,018 FY13 9,666 CAGR 27% 9
Slide 11: Diversified Fee Income Profile
Diversified Fee Income Profile ` crores 4% YOY 8% YOY Q3FY14 9MFY14 10
Slide 12: Sustained Profitability Growth: Robust Operating Revenue
Sustained Profitability Growth: Robust Operating Revenue ` crores 19% YOY 11% YOY 13% YOY 21% YOY 26% YOY 21% YOY 11
Slide 13: Consistent Net Profit Growth
Consistent Net Profit Growth Quarterly Net Profits ` crores 12
Slide 14: Stable CASA Growth Underpins Low-Cost Deposit Franchise
Stable CASA Growth Underpins Low-Cost Deposit Franchise CASA and Retail Term Deposits (` crores) Growth (%) 1,93,870 1,77,350 1,73,455 1,66,107 Daily 1,57,478 As on 31st December End Day Average for 2013 the quarter Savings Bank 21 18 Current Accounts 5 9 CASA 14 15 • Share of Domestic Retail Term D
Slide 15: Strong CASA Franchise Supports Margin Stability
Strong CASA Franchise Supports Margin Stability CASA Deposits CASA Ratio (` crores) 1,12,100 1,09,459 1,11,699 97,757 1,01,096 Cost of Funds Net Interest Margin 14
Slide 16: Stable Asset Quality
Stable Asset Quality Loan Mix Asset Quality (As on 31st December 2013) Five Year NPA trend Provision coverage of 78% as on December 2013 including prudential write-offs (88% before accumulated write-offs) Net Cumulative restructured advances were `4,900 crores (2.06% of net customer assets) as o
Slide 17: Capital Adequacy: Well Positioned for Growth
Capital Adequacy: Well Positioned for Growth & & & * Considering unaudited Net Profit for the quarter / half year / nine-months & All ratios computed are based on Basel II norms Total CAR & Tier I CAR under Basel III norms would be 15.50% & 11.49% respectively (excludes unaudited Net Profit for 9MFY
Slide 18: Business Overview
Introduction Performance Overview Business Overview 17
Slide 19: Well distributed, countrywide network of Branches & ATMs
Well distributed, countrywide network of Branches & ATMs Multiple channels drive business growth Expanding footprint across centres Extensive use of technology to provide services Largest ATM network in the private sector Branches Domestic Branch network1 1,390 1,622 1,947 2,321 Call ATMs Ce
Slide 20: Retail Liabilities Exhibit Consistent Growth
Retail Liabilities Exhibit Consistent Growth Savings Bank Deposits Retail Deposits* (% of Total Deposits) (` crores) 21% YOY Retail Term Deposits (RTD) Share of Domestic RTD as % of Domestic Term Deposits (` crores) & # 38% YOY Domestic Retail Deposits* constitutes 61% of Total Domestic Deposits
Slide 21: Sustained Traction in Retail Assets
Sustained Traction in Retail Assets Key Highlights Composition of Domestic Retail Assets* Domestic Retail Assets constitute 30% Loan against Others 6% of the Bank’s Total Advances in Dec Property 9% 2013 against 27% in Dec 2012 Credit Cards Secured Loans make up 86% of 2% Domestic Retail Loans P
Slide 22: Growth in Retail Fees
Growth in Retail Fees Key Highlights (` crores) Focus on cross-selling to existing customers key driver for growth 3% YOY Third-party products sold include mutual funds, insurance, on-line broking, portfolio management services (non-discretionary) and gold coins Healthy retail asset growth p
Slide 23: Retail Payments Franchise
Retail Payments Franchise Key Highlights Number of Cards (in lacs) One of the largest issuers of debit cards Over 13 lac credit cards in circulation Credit card acquisition focused on large retail depositor base Travel Currency Cards in 11 foreign currencies Card Spends – USD, Euro, GBP, AUD
Slide 24: Corporate Banking Franchise
Corporate Banking Franchise Presence across the Value Chain End-to-End Player Investment Business Banking Credit Syndication Treasury Trustee Services Banking • Strong franchise spread across liability and asset businesses • Adopted value generating Originate and Distribute Model • Dominant player i
Slide 25: Business Banking
Business Banking Key Highlights Current Accounts ` crores • Strong transaction banking capabilities • Wide range of products with customised 5% YOY offerings for various business segments • Growth aided by “Club 50” and “Channel One” high-end premium products Current A/c Deposits (` crore) • Broad
Slide 26: Business Banking
Business Banking Government Business Cash Management Business • Collection of Central Government taxes on • Leading CMS provider in the country behalf of CBDT and CBEC, including through e- • Among few banks offering host to host payments transaction banking facility • Collection of state taxes on b
Slide 27: Large & Mid-Corporate Banking
Large & Mid-Corporate Banking Advances Fees (` crores) (` crores) 4% YOY (` crores) 4% YOY 3% YOY 26
Slide 28: Debt Capital Markets
Debt Capital Markets Key Highlights Placement & Syndication of Debt Issues ` crores Dominant player in placement and syndication of debt issuances Ranked No. 1 debt arranger by Prime Database for half year ended September 2013. Ranked No. 1 debt arranger by Bloomberg 16% YOY for calendar yea
Slide 29: SME and Agriculture Business
SME and Agriculture Business ` crores 31,594 25,295 13,310 11,561 25% 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 December 2013 29
Slide 31: Rating Distribution: SME
Rating Distribution: SME 81% of SME advances have rating of at least ‘SME3’ in December 2013 30
Slide 32: Industry-wise Distribution (Top 10)
Industry-wise Distribution (Top 10) Outstanding as on December 31, 2013 (%)1 Rank Sectors Non-fund Fund-based Total based 1. Infrastructure2 7.33 11.91 8.65 2. Power Generation & Distribution 5.54 15.12 8.28 3. Engineering & Electronics 3.59 14.64 6.76 4. Metal & Metal Products 4.70 7.71 5.56 5. Fin
Slide 33: International Presence
International Presence Branches at Singapore, Hong Kong, DIFC – Dubai , Colombo & Shanghai Representative offices at Dubai & Abu Dhabi Axis Bank UK Limited (a wholly owned subsidiary of the Bank) Business offerings include Corporate Loans, Trade Finance Products, Debt Syndication and Liability Busin
Slide 34: Thank You
Thank You 33 A