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Lower Provisions, Improving Asset Quality helps Axis Bank to post 91% YoY Growth in Net Profit in Q1 FY23

Lower Provisions, Improving Asset Quality helps Axis Bank to post 91% YoY Growth in Net Profit in Q1 FY23

Published on 26 July 2022 .Views 6 .Comments 0
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Axis Bank Q1 FY23 Results | Earnings Call Highlights 

Balance Sheet Growth:

  • Balance Sheet Size at 11,52,580 Crores vs 10,12,050 Crores. A 14% YoY growth in the overall Balance Sheet Size.

Deposits Growth:

  • Total Deposits at 8,03,571 Crores as of 30 June 2022.
  • CASA deposits grew 16% YOY & 6% QOQ; the CASA ratio stood at 43%.
  • CASA In absolute numbers stood at 3,34,376 Crores.

Advances Growth:

  • Total Advances stand at 7,01,129 Crores as of the end of the June 2022 quarter.
  • Retail Loans comprise 59% of the total advances, the SME sector comprises 10% and Corporate advances are 31% of the total advances.
  • The corporate loan book stands at 2,16,475 Crores as of the end of the June 2022 quarter. Out of the total corporate loan book, 1,77,547 is for Domestic and 38,928 Crores is overseas Loan book.

 

Profitability Numbers:

  • Net profit at 4,125 crores, up 91% YOY & 1% QOQ.
  • Operating profit at 5,887 crores de-grew 5% YOY & 9% QOQ.
  • Net Interest Income at 9,384 crores grew 21% YOY & 6% QOQ,
  • Net Interest Margin stood at 3.60% vs 3.49% QoQ.

Provisions and Contingencies:

  • Specific loan loss provisions for Q1FY23 were 777 crores in Q1 FY23 compared to 602 crores in Q4FY22.
  • The Bank holds cumulative provisions (standard + additional other than NPA) of 11,830 crores at the end of Q1FY23.

 

Credit Cards:

  • 9.9 lakh new credit cards has been issued in the Q1 FY23 quarter.
  • The bank has an incremental market share of 17% vs 12.3% YoY.

 

Asset Quality:

  • Net slippage ratio (annualized) at 0.13%, improved 42 bps QOQ
  • The credit costs for the quarter ended 30 June 2022 is at 0.41%.
  • Gross NPA at 2.76% vs 2.82% QoQ.
  • Net NPA at 0.64% vs 0.73% QoQ.
  • The Provision Coverage Ratio is at 77% vs 75% QoQ.
  • The liquidity Coverage ratio at 116% stands unchanged QoQ.

Branches and Employees:

  • The Bank has 4,759 Branches and 10,161 ATMs as of the end of the June 2022 quarter. The bank has 86,400+ Employees as of 30 June 2022.

 

Operating Expenses:

  • Operating Expenses are 6,496 crores which grew by ~30% YoY.
  • Opex to Assets Ratio at 2.24% which was 2.05% YoY and 2.17% QoQ.

 

Digital Banking:

  • 16% market share in UPI transactions.
  • 113% YoY growth in UPI Transactions value in Q1 FY23.
  • 123% YoY Growth in Mobile Banking Transactions volume.  Market Share in Mobile Banking is of 15%
  • 68% of Savings Accounts opened through tab banking in Q1FY23.
  • 68% of Retail term deposits (by volume) opened digitally in Q1FY23.
  • The bank’s mobile banking app has monthly active users of 97 Lakhs and 60 Lakh Non-Axis Customers use Axis Mobile and Axis Pay Apps.

Subsidiaries Performance:

Axis AMC:
  • Axis AMC’s average AUM for the quarter grew by 18% YOY to 2,45,510 crores.
  • Q1FY23 PAT grew 20% YOY to 88 crores from 73 crores in Q1FY22.

Axis Finance:
  • Retail book grew over 3 times and constituted 36% of total loans, up from 4% in the last two years.
  • Axis Finance remains well capitalized with a Capital Adequacy Ratio of 19%.
  • Cumulative stage 3 loans net of provisions stood at 69 crores or 0.36% of loans.
  • Axis Finance Q1FY23 PAT was 95 crores, up 59% YOY from 60 crores in Q1FY22.

Axis Capital: PAT for Q1FY23 stood at 34 crores.

Axis Securities:
  • Axis Securities broking revenues for Q1FY23 grew 7% YOY to 158 crores.
  • Q1FY23 PAT stood at 39 crores.

Burgandy private:

AUM of Burgandy Private is at 85,649 crores, up 35% YOY.

Burgundy Private now covers over 3,875 families up from 2,093 families in the last one year.

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