Axis Bank Limited · NSE:AXISBANK
Axis Bank — H1 FY2016 Earnings Presentation
37 slides from Axis Bank's earnings presentation, October 2015
Slide 1: Earnings Presentation FY 2015-16 First Half Results
FY 2015-16 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, Performance Overview, Business Overview
Introduction Performance Overview Business Overview 2
Slide 4: Overview
Overview Snapshot (As on September 30, 2015) Total Assets `4,72,725 crores Net Advances `2,98,066 crores Banking Treasury Total Deposits `3,24,101 crores Operations Net Profit (Q2FY16) `1,916 crores Net Profit (H1FY16) `3,894 crores Corporate Credit Shareholders’ Funds `48,892 crores Diluted EPS (an
Slide 5: Shareholding Pattern
Shareholding Pattern (As on September 30, 2015) Others SUUTI 15.30% 11.56% & Life Insurance GDR Corporation & its 3.87% group entities 14.14% Indian Institutions 9.16% General Insurance Corp & others 3.84% Foreign Institutional investors 42.13% Share Capital `475.59 crores Shareholders’ Funds `4
Slide 6: High Shareholder Returns
High Shareholder Returns 20.51 205.61 1.83 1.78 18.23 18.57 1.70 1.71 188.47 17.37 162.69 141.50 BVS Return onon Equity (%) (%) Return on on Assets (%) Book Value Per Share (`) Return Equity Return Assets (%) FY13 FY14 FY15 H1FY16 A strong franchise demonstrating consistent value creation over time
Slide 7: Performance Overview
Introduction Performance Overview Business Overview 6
Slide 8: Performance Highlights
Performance Highlights Q2FY16 H1FY16 Net Profit 19% YOY 19% YOY Net Interest Income 15% YOY 19% YOY Fee Income 14% YOY 13% YOY Core Operating Revenue 15% YOY 17% YOY Core Operating Profit 21% YOY 26% YOY CASA1 13% YOY CASA (Daily Average) 14% YOY Total Deposits1 14% YOY Total Advances1 23% YOY 1 As
Slide 9: Key Financial Highlights
Key Financial Highlights Retail Franchise continues to show traction • Daily Average CASA Deposits in Q2FY16 grew 14% YOY and constituted 40% of Total Deposits • Retail Term Deposits grew 18% YOY and constituted 64% of Term Deposits • CASA and Retail Term Deposits constituted 80% of Total Deposits •
Slide 10: Growing Net Interest Income
Growing Net Interest Income ` crores 4,062 8,118 3,525 6,835 15% YOY 19% YOY Q2FY15 1 Q2FY16 H1FY151 H1FY16 Trend in NIIs (` crores) FY12 8,018 FY13 9,666 FY14 11,952 FY15 14,224 CAGR 21% 9
Slide 11: Diversified Fee Income Profile
Diversified Fee Income Profile ` crores 1,813 3,363 1,591 2,969 14% YOY 13% YOY Q2FY151 Q2FY16 H1FY151 H1FY16 Q2FY16 H1FY16 Retail Corporate Corporate Business Credit Retail Credit 40% 26% Business 25% 39% Treasury & Treasury & DCM DCM 10% 12% SME SME Transaction 5% Transaction 5% Banking Bankin
Slide 12: Sustained Profitability Growth: Robust Operating Revenue
Sustained Profitability Growth: Robust Operating Revenue ` crores 5,936 11,644 5,171 9,913 3,460 6,906 2,861 5,496 1,916 3,894 1,611 3,277 Net Profit Core Operating Core Operating Net Profit Core Operating Core Operating Profit Revenue Profit Revenue Q2FY15 Q2FY16 H1FY15 H1FY16 19% YOY 21% YOY
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 (%) 258,602 Daily 250,981 241,668 As on September 30, Average for 223,674 227,492 End Day 2015 the half year 106,581 115,194 Savings Bank 12 13 97,307 101,906 110,054 88,292 89,717 CASA 13 13 79,8
Slide 15: Strong CASA Franchise Supports Margin Stability
Strong CASA Franchise Supports Margin Stability CASA Deposits CASA Ratio (` crores) 45% 45% 44% 43% 43% 144,400 143,408 126,367 125,586 131,614 88,292 89,717 79,875 79,953 84,776 46,492 45,633 56,108 46,838 53,691 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 CA Deposits SB D
Slide 16: Stable Asset Quality
Stable Asset Quality Loan Mix Asset Quality (As on September 30, 2015) NPA trend Provision coverage of 78% as on 30th September 2015 including prudential write-offs (87% before accumulated write-offs) Net Cumulative restructured advances were `8,426 crores (2.65% of net customer assets) as on 30
Slide 17: Capital Adequacy: Well Positioned for Growth
Capital Adequacy: Well Positioned for Growth 15.90% 15.64% 15.42% 15.09% 15.05% 3.33% 3.20% 3.21% 3.02% 2.90% 12.57% 12.44% 12.07% 12.15% 12.21% Sep-14* Dec-14* Mar-15 Jun '15* Sep '15* Tier 1 CAR Tier 2 CAR Total CAR * Considering unaudited Net Profit for the quarter / half year / nine-months 16
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 One of the largest ATM networks in the industry Branches Domestic Branch network1 1,947 2,402 2,589 2,743 Call A
Slide 20: Retail Liabilities Exhibit Consistent Growth
Retail Liabilities Exhibit Consistent Growth Savings Bank Deposits Retail Deposits* (% of Total Deposits) (` crores) 62 63 89,717 79,875 Sep '141 Sep '15 Sep '141 Sep '15 12% YOY Retail Term Deposits (RTD) RTD as % of Term Deposits (` crores) 115,194 64 62 97,307 Sep '14 1 Sep '15 Sep '141 Sep '15
Slide 21: Sustained Traction in Retail Assets
Sustained Traction in Retail Assets Key Highlights Composition of Retail Advances Maintained focus on secured Non-schematic loans & others lending with greater emphasis on Loan against 11% Property mining existing liability customers 8% Personal Loans Integrated strategy for tapping into & Credi
Slide 22: Growth in Retail Fees
Growth in Retail Fees Key Highlights (` crores) 718 604 Focus on cross-selling to existing customers is the key driver for growth 19% YOY Third-party products sold include mutual Q2FY151 Q2FY16 funds, insurance, on-line broking, portfolio management services (non-discretionary) 1,326 and gold
Slide 23: Retail Payments Franchise
Retail Payments Franchise Key Highlights Number of Cards 141 (in lacs) 130 One of the largest issuers of debit cards Over 19 lac credit cards in circulation 15 20 Credit card acquisition focused on large retail depositor base Debit Card Credit Card Sep '14 Sep '15 Multi Currency Forex Cards
Slide 24: Digital Banking
Digital Banking Channel Mix – Q2FY16 Digital Ecosystem Branch 11% Axis Mobile 2.0 Branch Analytics Digital Ping Pay Sales force tracker Internet Banking 47% Tablet Applications Social ATM 42% Customers Employees YOY growth 21% Branches Processes Self Service Kiosks Express Branches
Slide 25: Mobile Banking Solutions
Mobile Banking Solutions Axis Mobile App Our Mobile App is smarter with 60+ features Locker on Mobile Instant Personal Loan Conversion to EMI 2.3 Mn `21,629 Cr 414% users overall spends growth in spends For 6 month period ended September 30, 2015 YOY growth as on September 30, 2015 Lime… The first i
Slide 26: Corporate Banking Franchise
Corporate Banking Franchise Presence across the Value Chain End-to-End Player Transaction Investment Trustee Credit Syndication Treasury Banking Banking Services • Strong franchise spread across liability and asset businesses • Adopted value generating Originate and Distribute Model • Dominant playe
Slide 27: Transaction Banking
Transaction Banking Key Highlights Current Accounts ` crores 53,691 • Strong transaction banking capabilities 46,492 • Wide range of products with customised 15% YOY offerings for various business segments Sep '141 Sep '15 • Growth aided by “Club 50” and “Channel One” high-end premium products Cur
Slide 28: Transaction Banking
Transaction Banking Government Business Cash Management Business • Collection of Central Govt. taxes on behalf of • Leading CMS provider in the country CBDT and CBEC, including through e-payments • Among few banks offering host to host • Collection of state taxes & collections under E- transaction b
Slide 29: Corporate Banking
Corporate Banking Advances Fees (` crores) (` crores) 470 470 138,549 111,186 1 Q2FY15 Q2FY16 806 840 1 Sep '14 Sep '15 25% YOY 4% YOY 1 H1FY15 H1FY16 28
Slide 30: Debt Capital Markets
Debt Capital Markets Key Highlights Placement & Syndication of Debt Issues Dominant player in placement and syndication of debt issuances (` crores) Ranked No. 1 debt arranger by Prime 67,225 64,967 Database for quarter ended June 2015 Ranked No. 1 underwriter for ` Denominated 3% YOY Bonds
Slide 31: SME Banking
SME Banking Advances Fees (` crores) (` crores) 94 86 39,702 8% YOY 35,771 1 Q2FY15 Q2FY16 11% YOY & 152 136 Sep '14 1 Sep '15 12% YOY 1 H1FY15 H1FY16 & SME loans (including non-retail agriculture loans) grew 9% YOY 30
Slide 32: Rating Distribution: Corporate Banking
Rating Distribution: Corporate Banking 61% of corporate advances have rating of at least ‘A’ in September 2015 31
Slide 33: Rating Distribution: SME
Rating Distribution: SME 85% of SME advances have rating of at least ‘SME3’ in September 2015 32
Slide 34: Industry-wise Distribution (Top 10)
Industry-wise Distribution (Top 10) Outstanding as on September 30, 2015 (%)1 Rank Sectors Non-fund Fund-based Total based 1. Infrastructure2 7.20 10.23 7.95 2. Engineering & Electronics 3.25 16.96 6.67 3. Metal & Metal Products 6.18 6.10 6.16 4. Financial Companies3 4.80 10.51 6.22 5. Power Generat
Slide 35: 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 Busine
Slide 36: Some Awards & Recognition
Some Awards & Recognition Ranked amongst the Top 75 safest banks in the world by The Banker Axis Bank brand awarded title of Superbrand 2014-2015 Best Smartphone Mobile Banking App in India by Forrester Research Mobile Banking Initiative of the Year - India, Asian Banking and Finance (ABF) Retail Ba
Slide 37: Thank You
Thank You 36 A