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FY 2014-15
Annual Results
Earnings Presentation
1
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”, “future”, “objective”, “goal”, “strategy”, “philosophy”,
“project”, “should”, “will pursue” and similar expressions or variations of such
expressions may constitute "forward-looking statements". These forward-looking
statements involve a number of risks, uncertainties and other factors that could
cause actual results to differ materially from those suggested by the forward-looking
statements. These risks and uncertainties include, but are not limited to our ability to
successfully implement our strategy, future levels of non-performing loans, our
growth and expansion, the adequacy of our allowance for credit losses, our
provisioning policies, technological changes, investment income, cash flow
projections, our exposure to market risks as well as other risks. Axis Bank Limited
undertakes no obligation to update forward-looking statements to reflect events or
circumstances after the date thereof.
2
Introduction
Performance Overview
Business Overview
3
Overview
Snapshot (As on March 31, 2015)
Total Assets `4,61,932 crores
Net Advances `2,81,083 crores
Total Deposits `3,22,442 crores
Net Profit (Q4FY15) `2,181 crores
Net Profit (FY15) `7,358 crores
Shareholders‟ Funds `44,677 crores
Diluted EPS (annualized) `30.85
ROA (FY15) 1.83%
ROE (FY15) 18.57%
Net NPA Ratio 0.44%
Basel III Tier I CAR 12.07%
Basel III Total CAR 15.09%
Saving Bank Accounts (No.) 149 lac
Branches2 2,589
International Presence3 8
ATMs 12,355
Banking
Operations
Corporate
Credit Infrastructure
Others
SME1
Retail
Banking
Business
Banking
Treasury
1 Small and Medium Enterprises
2 Includes extension counters 3 Includes overseas subsidiary in UK
Basel II Tier-I CAR 11.xx%
Basel II Total CAR 16.xx%
SME1 and
Agriculture
4
Shareholding Pattern (As on March 31, 2015)
Share Capital ` 474.10 crores
Shareholders‟ Funds ` 44,677 crores
Book Value Per Share ` 188.47
Diluted EPS (annualised) ` 30.85
Market Capitalisation ` 1,26,974 crores (as on April 28, 2015)
Share Count xxx mn
GDRs Issued xxx mn
Investible Headroom (GDR) 40 mn (as on March 31,
2014)
& 1GDR = 5 shares
As on March 31, 2015, against GDR& issuance of 62.7 mn, outstanding GDRs stood at 17.6 mn
&
SUUTI 11.59% Life Insurance
Corporation & its group entities
12.49%
General Insurance Corp & others
3.85%
Foreign Institutional investors 46.64%
Indian Institutions 6.62%
GDR 3.72%
Others 15.09%
5
High Shareholder Returns
A strong franchise demonstrating consistent value creation over time
110.40
141.50
162.69
188.47
1Book Value Per Share (`)
21.22 20.51
18.23 18.57
1Return on Equity (%)
FY12 FY13 FY14 FY15
1.68 1.70 1.78
1.83
1Return on Assets (%)
6
Introduction
Performance Overview
Business Overview
7
Performance Highlights
Q4FY15 FY15
Net Profit 18% YOY 18% YOY
Net Interest Income 20% YOY 19% YOY
Fee Income 19% YOY 13% YOY
Operating Revenue 21% YOY 17% YOY
Operating Profit 24% YOY 17% YOY
CASA1 14% YOY
CASA (Daily Average) 15% YOY
Total Deposits1 15% YOY
Total Advances1 22% YOY
1 As on 31st March 2015
8
Key Financial Highlights
Retail Franchise continues to show traction
• CASA Deposits in FY15 on daily average basis grew 15% YOY of which Savings Bank
Deposits grew 17% & Current Account Deposits grew 11%; Daily Average CASA constitutes
40% of Total Deposits
• Retail Term Deposits grew 27% YOY and constitutes 60% of Term Deposits
• CASA and Retail Term Deposits constituted 78% of Total Deposits
• Retail Advances grew 27% YOY and accounted for 40% of Net Advances
• Retail Fee Income grew 30% YOY and constitutes 38% of Total Fee Income
Stable Earnings Profile
• Core Operating Revenue in Q4FY15 grew 21% YOY and stood at `6,056 crores
• Core Operating Profit in Q4FY15 rose to `3,582 crores, registered growth of 24% YOY
• Return on Assets & Return on Equity for FY15 stood at 1.83% and 18.57% respectively
Well positioned for future growth with Tier I CAR of 12.07% & Total CAR of 15.09%
under Basel III
Overall, a Bank with consistently superior returns and healthy capital position
# Includes Foreign Currency Non-Resident – B deposits (FCNR –B); Excluding FCNR-B deposits, Domestic Retail Term Deposit growth was 21% YOY, constituting 57% of Domestic
Term Deposits
& Considering unaudited Net Profit for 9MFY14
* Excludes unaudited Net Profit for 9MFY14
& Includes profits for the nine months
9
20% YOY
Growing Net Interest Income
Trend in NIIs (`crores)
FY12 8,018
FY13 9,666
FY14 11,952
FY15 14,224
CAGR 21%
` crores
19% YOY
3,166
3,799
1Q4FY14 Q4FY15
11,952
14,224
1FY14 FY15
10
19% YOY
Diversified Fee Income Profile ` crores
13% YOY
Q4FY15 FY15
1,618
1,780
1Q4FY13 Q4FY14
5,521 5,985
1FY13 FY14
Large & Mid
Corporate Credit 30%
Treasury & DCM 20%
Agri & SME 9%
Business Banking
7%
Retail Business
34%
Large & Mid
Corporate Credit 30%
Treasury & DCM 23%
Agri & SME 7%
Business Banking
8%
Retail Business
32%
1,780
2,124
1Q4FY14 Q4FY15
5,985 6,779
1FY14 FY15
Corporate Credit 28%
Treasury & DCM 20%
SME 6%
Business Banking
7%
Retail Business
39% Corporate
Credit 27%
Treasury & DCM 21% SME
6%
Business Banking
8%
Retail Business
38%
11 18% YOY
Sustained Profitability Growth: Robust Operating Revenue
24% YOY 21% YOY 18% YOY 18% YOY 17% YOY
` crores
6,218
10,211
18,112
7,358
12,064
21,268
Net Profit Core OperatingProfit
Core OperatingRevenue
FY14 FY15
1,842
2,888
5,019
2,181
3,582
6,056
Net Profit Core Operating Profit Core OperatingRevenue
Q4FY14 Q4FY15
12
Consistent Net Profit Growth
Quarterly Net Profits
` crores
CASA and Retail Term Deposits (` crores)
Stable CASA Growth Underpins Low-Cost Deposit Franchise
13
• Share of Retail Term Deposits to Total Term Deposits stood at 60%
• CASA + Retail Term Deposits constitute 78% of Total Deposits
Growth (%)
As on March 31 2015 End Day
Daily
Average for
the year
Savings Bank 14 17
CASA 14 15
48,686 40,659 46,492 45,633 56,108
77,776 74,583
79,875 79,953 88,292
84,233 93,406
97,307 101,906
106,581
210,695 208,648 223,674 227,492
250,981
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15
CA Deposits SB Deposits Retail TDs
14
CASA Deposits (` crores)
CASA Ratio
Cost of Funds Net Interest Margin
Strong CASA Franchise Supports Margin Stability
91,422 86,942
51,668 52,777 56,189 57,521 63,778
39,754 34,165 39,349 40,236
48,322
Mar '12 Jun '12 Sep '12 Dec '12 Mar '13
Savings Account Deposits Current Account Deposits
48,686 40,659 46,492 45,633 56,108
77,776 74,583
79,875 79,953 88,292
126,462 115,242
126,367 125,586
144,400
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15CA Deposits SB Deposits
45%
42%
45% 43%
45%
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15
3.89% 3.88% 3.97% 3.93% 3.81%
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15
6.20% 6.21% 6.19% 6.17% 6.26%
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15
15
Stable Asset Quality Asset Quality Loan Mix
(As on March 31 2015)
NPA trend
Provision coverage of 78% as on March 2015 including
prudential write-offs (87% before accumulated write-offs)
Net Cumulative restructured advances were `8,166 crores
(2.71% of net customer assets) as on March 2015
`1,540 crores of loans were restructured during the
quarter
Restructuring position
(Rs bn)
Opening Balance – 40.00
Add:
New Restructuring – 34.56
Subtotal 74.56
Less:
NPA 2.58
Mvt. In Balance 1.78
Closing Balance 70.20
Provision Held 4.40
Net Position 65.80
Less:FITL 5.00
Disclosed Position 60.79
FITL is recognised as a reversal of interest
income
Other Banks highlight this separately as a
provision
Capital Adequacy: Well Positioned for Growth
* Considering unaudited Net Profit for the quarter / half year / nine-months
16
& & &
#
Basel III Norms
# Capital Adequacy computation under Basel III norms & All ratios computed are based on Basel II norms
12.62% 12.64% 12.57% 12.44% 12.07%
3.45% 3.45% 3.33% 3.20% 3.02%
16.07% 16.09% 15.90% 15.64% 15.09%
Mar-14 Jun-14* Sep-14* Dec-14* Mar-15
Tier 1 CAR Tier 2 CAR Total CAR
17
Introduction
Performance Overview
Business Overview
18
Customer
Touch Points
Call
Centre
ATMs
Mobile Banking Point of
Sale
Internet Banking
Branches
Traditional Channels Electronic Channels
Well distributed, countrywide network of Branches & ATMs
Expanding footprint across centres
One of the largest ATM network in the industry
Mar‟12 Mar‟13 Mar‟14 Mar‟15
ATMs 9,924 11,245 12,922 12,355
Centers Covered 1,050 1,263 1,636 1,714
Employees 31,738 37,901 42,420 42,230
1 Including extension counters
Domestic Branch network1
1,622 1,947 2,402 2,589
Multiple channels drive business growth
Extensive use of technology to provide services
19
Retail Liabilities Exhibit Consistent Growth Savings Bank Deposits
(` crores)
Share of Domestic RTD as % of Domestic Term Deposits Retail Term Deposits (RTD) (` crores)
Domestic Retail Deposits* constitutes xx% of Total Domestic Deposits
* Retail Deposits include Savings Bank and Retail Term Deposits
Retail Deposits* (% of Total Deposits)
14% YOY
27% YOY
&
#
& RTD as at end December 2013 includes FCNR – B deposits; Excluding FCNR- B
deposits, RTD growth was 21% YOY # Share of Retail Term Deposits excluding FCNR – B deposits at end December 2013 stood
at 57%
77,776
88,292
1Mar '14 Mar '15
84,233
106,581
1Mar '14 Mar '15
58 60
1Mar '14 Mar '15
59 61
1Mar '14 Mar '15
20
Sustained Traction in Retail Assets
Maintain focus on secured lending
with greater emphasis on mining
existing liability customer base
Integrated strategy for tapping into
consumer lending opportunity in
rural markets
Retail Advances constitute 40% of
Bank‟s Net Advances in March
2015
Secured Loans make up 87% of
Retail Loans
Housing Loans account for 48% of
Retail Loans
Composition of Retail Advances Key Highlights
Portfolio Size: `1,11,932 crores
27% YOY
Housing Loans 48%
Retail agricultural
loans 16%
Auto Loans 8%
Personal Loans &
Credit Cards 9%
Loan against Property
7%
Non-schematic
loans & others 12%
21
Growth in Retail Fees
Focus on cross-selling to existing
customers key driver for growth
Third-party products sold include mutual
funds, insurance, on-line broking, portfolio
management services (non-discretionary)
and gold coins
Healthy retail asset growth provides
momentum to asset linked fees 30% YOY
(` crores) Key Highlights
29% YOY
637
819
1Q4FY14 Q4FY15
2,008
2,603
1FY14 FY15
22
Retail Payments Franchise
Key Highlights
One of the largest issuers of debit cards
Over 17 lac credit cards in circulation
Credit card acquisition focused on large retail
depositor base
Multi Currency Forex Cards in 15 currencies –
USD, Euro, GBP, AUD, CAD, SGD, SEK, CHF,
JPY, AED, SAR, THB, NZD, HKD & ZAR; INR
(for foreign nationals and NRIs)
Prominent player in merchant acquiring
business
Number of Cards (in lacs)
Card Spends
(` crores)
35% YOY
4,970
6,694
1Q4FY14 Q4FY15
133
14
143
17
Debit Card Credit Card
Mar '14 Mar '15
23
Corporate Banking Franchise
End-to-End Player
Business
Banking Credit
Investment
Banking Syndication Treasury
Trustee
Services
• Strong franchise spread across liability and asset businesses
• Adopted value generating Originate and Distribute Model
• Dominant player in placement and syndication of debt / loans
• Focus on building out a high quality portfolio of credit assets
• Rigorous and regular risk assessment of accounts
Presence across the Value Chain
24
Business Banking
• Strong transaction banking capabilities
• Wide range of products with customised
offerings for various business segments
• Growth aided by “Club 50” and “Channel
One” high-end premium products
• Broad-based sales strategy
• Focused approach for Corporates, Financial
Institutions and Government
15% YOY
Current A/c Deposits (` crore)
FY12 39,754
FY13 48,322
FY14 48,686
FY15 56,108
CAGR 12%
` crores
Key Highlights Current Accounts
48,686
56,108
1Mar '14 Mar '15
25
Business Banking
22% YOY
• Collection of Central Govt. taxes on behalf of
CBDT and CBEC, including through e-payments
• Collection of state taxes & collections under E-
governance on behalf of 15 & 10 State Govt. and
Union Territories respectively
• Collections and payments for Central Govt
ministries - Railways, MOF, Urban Development
and Housing & Urban Poverty Alleviation
• NPS Trustee Bank & Collection Bankers for
subscriptions through all Branches
• Appointed as Centralised Clearing House for
Electronic Toll collection based on RFID tags by
a subsidiary of NHAI
• Leverage 50 authorized branches as Hubs and
source PPF accounts from all branches.
CMS Accounts
Government Business Cash Management Business
• Leading CMS provider in the country
• Among few banks offering host to host
transaction banking facility
20,719
25,335
1Mar '14 Mar '15
26
Corporate Banking
Advances Fees
23% YOY
(` crores) (` crores)
(` crores)
3% YOY
10% YOY
102,238
126,184
1
Mar '14 Mar '15
538 591
1Q4FY14 Q4FY15
1,793 1,803
1FY14 FY15
1% YOY
27
Debt Capital Markets Key Highlights Placement & Syndication of Debt Issues
Dominant player in placement and
syndication of debt issuances
Ranked No. 1 debt arranger by Prime
Database for nine months ended December
2014
Ranked No. 1 underwriter for Rupee
Denominated Bonds by Bloomberg for year
ended March 2015.
Awarded „Best DCM House‟ 2014 by Finance
Asia
Ranked No.1 Top Bank in the secondary
market in Asian currency bonds for corporate
bonds – India , by Asset Research
` crores
Overall industry volumes shrunk 12% for calendar year ended
December 2013 - Source: Bloomberg
79% YOY 30,503
54,545
1Q4FY14 Q4FY15
28
SME Banking
Advances^
13% YOY
Fees
14% YOY
15% YOY&
(` crores) (` crores)
(` crores)
^ Excludes non-retail agricultural loans amounting to `4,298
crores as on 31st March 2014 & `2,316 crores as on 31st March
2015
121 137
1Q4FY14 Q4FY15
320 366
1FY14 FY15&SME loans including non-retail agriculture loans grew 8% YOY
35,502
40,651
1Mar-14 Mar-15
29
Rating Distribution: Corporate Banking
62% of corporate advances have rating of at least ‘A’ in March 2015
30
Rating Distribution: SME
84% of SME advances have rating of at least ‘SME3’ in March 2015
31
Industry-wise Distribution (Top 10)
Rank Sectors
Outstanding as on March 31, 2015 (%)1
Fund-based Non-fund
based Total
1. Infrastructure2 7.18 9.79 7.88
2. Power Generation & Distribution 5.95 7.66 6.41
3. Metal & Metal Products 5.88 6.17 5.96
4. Financial Companies3 4.71 9.30 5.94
5. Engineering & Electronics 3.19 12.99 5.81
6. Trade 3.37 4.98 3.80
7. Real Estate 3.16 1.82 2.80
8. Food Processing 3.06 2.37 2.88
9. Telecommunication Services 0.52 8.18 2.57
10. Petroleum & Petroleum Products 0.54 6.05 2.01
1 Percentages stated above are on the total fund and non-fund based outstanding across all loan segments 2 Financing of projects (roads, ports, airports etc)
3 Includes Housing Finance Companies and other NBFCs
32
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 Business
Total Assets overseas stood at USD 7.86 billion
33
Thank You