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Axis Bank Q4FY22 Result Analysis & Conference Call Highlights | 54% YoY Fall in Provisions in Q4 FY22 led Axis Bank to post 54% rise in Net Profit in Q4 FY22, PAT at 4,118 Crores in Q4 FY22

Axis Bank Q4FY22 Result Analysis & Conference Call Highlights | 54% YoY Fall in Provisions in Q4 FY22 led Axis Bank to post 54% rise in Net Profit in Q4 FY22, PAT at 4,118 Crores in Q4 FY22

Published on 29 April 2022 .Views 6 .Comments 0

Business Highlights:

Added 24 Lakh new liability relationships in Q4, up 30% YOY & 11% QOQ, 86 Lakh for FY22, up 29% YOY.
2nd largest player in Merchant Acquiring with 9.52 lakh terminals all over India.
The Board of Directors has recommended a dividend of `1 per equity share of the face value of `2 per equity share for the year ended 31st March 2022.
Added 7500 people as the workforce during FY22.

Deposits Growth

Deposits on a QAB1 basis grew by 19% YOY.
CASA deposits grew 16% YOY & 7% QOQ; the CASA ratio stood at 45%.

Profitability Numbers:

Net profit at 4,118 crores, up 54% YOY & 14% QOQ.
Operating profit at 6,466 crores grew 13% YOY & 5% QOQ.
Net Interest Income at 8,819 crores grew 17% YOY & 2% QOQ,
Net Interest Margin stood at 3.49%

Credit Cards:

11 lakh new credit cards has been issued in the Q4 FY22 quarter.
Holds a market share of FY22 12% and 6MFY22 17% in credit card banking.
Entered into partnership with Airtel to launch new type of credit cards.
2nd largest player in Merchant Acquiring with the market share of 16%, the incremental share of 42% in 8M FY22.
15% market share in UPI transactions and 20% in UPI P2M acquiring.
The Bank's digital auto loans and personal loans went live on the account aggregator framework.

Asset Quality:

Net slippage ratio (annualized) at 0.13%, improved 42 bps QOQ
Annualized credit cost for Q4FY22 at 0.32%, declined by 116 bps YOY & 12 bps QOQ, PCR healthy at 75%
GNPA at 2.82% declined by 88 bps YOY & 35 bps QOQ, NNPA at 0.73% declined 32 bps YOY & 18 bps QOQ,
Liquidity Coverage ratio at 116%, grew by 115bps Q-o-Q.

Bharat Bank progress:

Bharat Bank Initiative shown 34% Q-o-Q growth in loan disbursements.

Operating Expenses:

Operating Expenses are 6576 crores grew by 23% YoY AND 4% Q-o-Q.
Technology spends grew by 56% YoY and it is 8% of operating expenses.
Staff cost grew by 13% YoY and declined by 3% Q-o-Q.
Other Operating Expenses grew by 27% YoY and 7% Q-o-Q

Loan Book:

Loan Book grew by 15% YoY and 6% Q-o-Q.
Retail loans grew 21% YOY and 9% QOQ, SBB and Rural loans grew 60% YOY and 29% YOY respectively
SME loans grew 26% YOY and 13% QOQ
Mid-corporate book grew 45% YOY & 13% QOQ

Digital Banking:

15% market share in UPI transactions.
Among the highest rated mobile apps with ratings of 4.6*, mobile banking market share stood at 14%.
68% of Fixed Deposits are opened digitally during this quarter.
56 lakh non-axis bank customers are using Axis mobile and Axis Pay apps.
122% - YOY growth in total UPI transaction value in Q4FY22.
97% - YOY growth in mobile banking transaction volumes in Q4FY22, with market share of 14%
91% - Share of digital transactions in the Bank’s total financial transactions by individual customers in FY22
70% - SA accounts opened through tab banking in FY22
68% - Retail term deposits (by volume) opened digitally in FY22
46% - New mutual fund SIPs sourced (by volume) through digital channels in FY22

Subsidiaries Performance:

Axis AMC: Axis AMC’s average AUM for the quarter grew by 32% YOY to 2,59,818 crores. Its FY22 PAT grew 47% YOY to 357 crores from 242 crores in FY21.
Axis Finance: Retail book constituted 33% of total loans while the focus in wholesale business continues to be on well rated companies and cash flow backed transactions.
 Axis Finance remains well capitalized with Capital Adequacy Ratio of 20%. The asset quality metrics remain stable with net NPA at 0.46% with near zero restructuring.
 Axis Finance Q4FY22 PAT was 113 crores, up 56% YOY. FY22 PAT grew 72% YOY to 364 crores from 211 crores in FY21.
Axis Capital: Axis Capital completed 44 ECM transactions in FY22. It’s PAT for FY22 grew by 20% YOY.
Axis Securities: Axis Securities’ broking revenues for Q4FY22 & FY22 grew 36% and 56% YOY to `179 crores 662 crores respectively,
 Net profit for Q4FY22 & FY22 grew by 21% and 40% YOY to 58 crores and 232 crores respectively.

Burgandy private:

Total AUMs over 2,60,000 crores, up 22% YOY with Burgundy Private AUMs at 86,959 crores up 74% YOY.
Burgundy Private now covers over 3,490 families up from 1,666 families in last one year

Please find attached for detailed analysis.
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