Results     24-Jul-22
Analysis
Yes Bank
Showing improvement on various parameters
Yes Bank has reported 50% growth in net profit at Rs 310.63 crore for the quarter ended June 2022 (Q1FY2023). The bank has posted healthy 32% growth in net interest income (NII), while the core fee income of the bank also improved 31% in Q1FY2023. The Net Interest Margin (NIM) of the bank improved to 2.40% in Q1FY2023 compared to 2.10% in the corresponding quarter of previous year.

On business front, the bank as has posted 16% growth in business with strong 14% surge in loan book. The asset quality of the bank was stable in Q1FY2023. Bank has substantially reduced the credit to deposit ratio to 96.4% at end June 2022 from 100.2% at end June 2021. CASA ratio of the bank has increased to 30.8% at end June 2022 from 27.4% at end June 2021.

Asset quality improves: The bank has continued to improve asset quality in Q1FY2023.

The fresh slippages of loans stood at Rs 1072 crore in Q1FY2023 compared with Rs 2233 crore in the corresponding quarter last year.

The recoveries of NPAs stood at Rs 890 crore, upgradations at Rs 195 crore and the write-off of loans was at Rs 217 crore in Q1FY2023.

The standard restructured loan book of the bank stood at Rs 6453 crore end June 2022.

Provision coverage ratio rose to 82.30% at end June 2022 compared to 81.50% a quarter ago and 79.30% a year ago.

The capital adequacy ratio of the bank stood at 17.5% with Tier I ratio at 11.9% at end June 2022.

Asset Quality Indicators: Yes Bank

 

Jun-22

Mar-22

Dec-21

Sep-21

Jun-21

Variation

QoQ

YoY

Gross NPA (Rs Crore)

27746.75

27975.98

28654.49

28740.59

28505.95

-1

-3

Net NPA (Rs Crore)

7765.01

8204.53

9323.34

9586.25

9454.94

-5

-18

% Gross NPA

13.45

13.93

14.65

14.97

15.60

-48

-215

% Net NPA

4.17

4.53

5.29

5.55

5.78

-36

-161

% PCR

82.30

81.50

79.40

78.90

79.30

80

300

% CRAR - Basel III

17.50

17.40

17.70

17.60

17.80

10

-30

% CRAR - Tier I - Basel III

11.90

11.60

11.60

11.50

11.60

30

30

Variation in basis points for figures given in percentages and in % for figures in Rs crore

Business Highlights:

Business growth improving: The business of the bank has increased 16% YoY to Rs 379608 crore end June 2022, driven by 14% surge in advances to Rs 186367 crore. Deposits increased 18% to Rs 193241 crore at end June 2022.

CASA deposits ratio rises: The CASA deposits of the bank jumped 33% YoY to Rs 59544 crore at end June 2022. The CASA ratio improved to 30.8% at end June 2022 compared to 27.4% at end June 2021, while eased from 31.1% a quarter ago.

Strong loan growth: Advances growth was driven by retail loans rising 21% YoY to Rs 71379 crore at end June 2022, while credit to MSME moved up 23% to Rs 44728 crore at end June 2022. The corporate credit has declined 9% to Rs 69888 crore end June 2022.

Investment book of the bank increased 26% YoY to Rs 58678.86 crore at end June 2022. The SLR book was at Rs 50869 crore non SLE at Rs 7810 crore end June 2022.

Margins improve: The bank has showed sharp 60 bps YoY decline in cost of deposits to 5.10%, while yield on advances decline only 10 bps YoY to 8.10% in Q1FY2023. Thus, the NIM has improved 30 bps YoY to 2.40%.

Branch expansion: The bank has added 18 branches and 29 ATMs in in Q1FY2023, taking overall tally to 1140 branches and 1273 ATM`s end June 2022.

Book value of the bank stood at Rs 13.6 per share at end June 2022, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 10.3 per share at end June 2022.

Quarterly Performance

NII rises as NIM improves: Bank has recorded 13% increase in the interest earned at Rs 5134.85 crore, while interest expenses rose 5% to Rs 3284.57 crore in Q1FY2023. NII improved 32% to Rs 1850.28 crore in the quarter ended June 2022.

Healthy growth in the core fee income: Bank has posted strong 31% growth in core fee income to Rs 659 crore, while the forex income 58% to Rs 160 crore. However, the treasury segment recorded losses of Rs 37 crore, causing 10% dip in the overall non-interest income to Rs 781.43 crore in the quarter ended June 2022.

Expenses ratio rises: The operating expenses of the bank increased 33% to Rs 2041.88 crore, as other expenses moved up 36% to Rs 1214.75 crore, while employee expenses jumped 28% to Rs 827.13 crore in Q1FY2023. Cost to income ratio was higher at 77.6% in Q1FY2023 compared with 67.7% in Q1FY2022, causing 20% decline in the Operating Profit to Rs 589.83 crore.

Provisions and contingencies decline: The bank has showed 62% decline in provisions to Rs 174.73 crore. The loan loss provisions declined 63% to Rs 148.00 crore, while the bank has written back standard asset provisions of Rs 53.00 crore and other provisions of Rs 7.00 crore. Investment provisions increased to Rs 87.00 crore.

Effective tax rate was steady at 25.2% in Q1FY2023 from 25.0% in Q1FY2022. Net Profit rose by 50% YoY to Rs 310.63 crore during quarter ended June 2022.

Financial Performance FY2022:

Bank has rebound in net profit to Rs 1066.21 crore for the year ended March 2022 (FY2022). The net interest income declined 13% to Rs 6497.85 crore, while non-interest income moved up 8% to Rs 3262.47 crore. Net total income fell by 7% to Rs 9760.32 crore in FY2022.

The operating expenses increased 18% to Rs 6844.39 crore, while provision and contingencies dipped 84% to Rs 1480.08 crore, allowing profit before tax to rebound to Rs 1435.85 crore in FY2022. The cost-to-income ratio increased to 70.1% in FY2022 compared to 55.5% in FY2021. An effective tax rate declined to 25.7% in FY2022 compared to 26.9% in FY2021. The net profit has increased to Rs 1066.21 crore in FY2022.

 

Yes Bank: Results

Particulars

2206 (3)

2106 (3)

Var %

2203 (12)

2103 (12)

Var %

Interest Earned

5134.85

4525.42

13

19023.51

20041.84

-5

Interest Expended

3284.57

3123.27

5

12525.66

12613.23

-1

Net Interest Income

1850.28

1402.15

32

6497.85

7428.61

-13

Other Income

781.43

869.02

-10

3262.47

3011.69

8

Net Total Income

2631.71

2271.17

16

9760.32

10440.30

-7

Operating Expenses

2041.88

1538.30

33

6844.39

5792.01

18

Operating Profits

589.83

732.87

-20

2915.93

4648.29

-37

Provisions & Contingencies

174.73

457.03

-62

1480.08

9383.36

-84

Profit Before Tax

415.10

275.84

50

1435.85

-4735.07

LP

Provision for tax

104.47

69.00

51

369.64

-1272.84

PL

PAT

310.63

206.84

50

1066.21

-3462.23

LP

EPS*(Rs)

0.5

0.3

 

0.4

-1.4

 

Adj BV (Rs)

10.3

9.3

 

9.9

9.3

 

* Annualized on current equity of Rs 5011 crore. Face Value: Rs 10, Figures in Rs crore

PL: Profit to loss, LP: Loss to Porfit

Source: Capitaline Corporate Database

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