PRESS RELEASE. Results at a Glance

Transcription

1 PRESS RELEASE AXIS BANK ANNOUNCES FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30 th SEPTEMBER 2018 Results at a Glance Imprved financial perfrmance driven by higher NII YOY: PAT fr Q2FY19 grew 83% YOY and std at `790 crres Cre perating prfit grew 16% YOY Net Interest Incme grew 15% YOY NIM fr Q2FY19 was 3.36%, up frm 3.29% in Q1 (adjusting fr recvery n an IBC list 1 accunt in Q1) Ttal prvisins std at `2,927 crres; de-grew 7% YOY Asset quality metrics have imprved Slippages declined 69% YOY t `2,777 crres The Bank s GNPA and NNPA std at 5.96% and 2.54%, dwn frm 6.52% and 3.09% QOQ Prvisin Cverage Rati f the Bank has imprved t 73% frm 69% 88% f crprate slippages in Q2 came frm previusly disclsed BB & Belw bk Outstanding BB & Belw crprate lans have reduced by 15% QOQ t `8,860 crres Dmestic lan grwth during the quarter std at 15% YOY driven by Retail and SME segments: Retail and SME lan bk grew 20% and 14% YOY, respectively Retail and SME lans cnstituted 62% f ttal lans Wrking capital lans in the crprate segment grew 21% Retail business mmentum remains healthy: Retail Fee Incme grew 24% and cnstituted 62% f Ttal Fee Incme YOY Retail Advances accunted fr 49% f Net Advances Saving depsits n a quarterly average balance (QAB) basis grew 17%. CASA depsits QAB basis grew 13% YOY and cnstituted 45% f ttal depsits. CASA rati n Quarter End basis stands at 48%. Amng the tp players in the digital space: Ranked #1 in Mbile Banking spends as per RBI data Market share in UPI transactins std at 8% fr Q2FY19 Mbile banking spends grew 106% YOY, Credit Card spends grew 44% YOY Freecharge cmpleted 1 yr as part f Axis: The agility f a Fintech, backed by the strength f a Bank Lan prducts launched n Freecharge platfrm in Q2 The Bank s Capital Adequacy Rati (CAR) remains healthy. Under Basel III, Ttal CAR & Tier I CAR (including net prfit fr H1FY18) std at 16.45% and 13.04%, respectively. The Bard f Directrs f Axis Bank Limited apprved the financial results fr the quarter and half-year ended 30 th September 2018 at its meeting held in Mumbai n Friday, 2 nd Nvember The Accunts have been subjected t a Limited Review by the Bank s Statutry Auditrs. Page 1 f 7

2 Prfit & Lss Accunt: Perid ended 30 th September 2018 Net Prfit and Cre Operating Prfit Net prfit fr Q2FY19 grew 83% YOY t `790 crres, fr H1FY19 Net prfit std at `1,491 crres. Cre perating prfit fr Q2FY19 grew by 16% YOY t `3,958 crres; fr H1FY19, the cre perating prfit was up 20%. Net Interest Incme and Net Interest Margin The Bank s Net Interest Incme (NII) grew 15% YOY t `5,232 crres during Q2FY19 frm `4,540 crres in Q2FY18. NII fr H1FY19 t rse 14% YOY t `10,399 crres frm `9,156 crres in H1FY18. Net interest margin fr Q2FY19 std at 3.36%, NIM fr H1FY19 std at 3.41%. Nn-Interest Incme Nn-Interest incme (excluding Trading Prfits) grew 15% YOY t `2,542 crres as against `2,208 crres during the same perid last year. Nn-Interest incme (cmprising fee, trading prfit and miscellaneus incme) fr Q2FY19 grew 4% YOY t `2,678 crres as against `2,586 crres during the same perid last year. Grwth was restricted, mainly due t lwer trading prfits during the quarter. Trading prfits fr the quarter declined by 64% t `136 crres cmpared t `377 crres in Q2FY18. Fee incme fr Q2FY19 grew 9% YOY t `2,376 crres. The key driver f fee incme grwth was Retail Banking, which grew strngly 24% YOY and cnstituted 62% f the Bank s ttal fee incme. Cards Fees grew 25% YOY. Transactin Banking fees grew 12% YOY and cnstituted 19% f the ttal fee incme f the Bank. During H1FY19, ther incme std at `5,603 crres, fee incme grew 8% YOY primarily driven by 21% YOY grwth in Retail fee and 11% YOY grwth in Transactin banking. Miscellaneus Incme fr the quarter std at `166 crres cmpared t `38 crres in Q2FY18. Balance Sheet: As n 30 th September 2018 The Bank s Balance Sheet grew 15% YOY and std at `7,30,546 crres as n 30 th September The Bank s Advances grew 11% YOY t `4,56,121 crres as n 30 th September Dmestic lans grew 15% while the verseas bk de-grew by 12%. Retail lans grew 20% YOY t `2,21,710 crres and accunted fr 49% f the Net Advances f the Bank. SME lans grew 14% YOY t `60,262 crres. Crprate lan bk cntinues t pivt twards wrking capital lans which grew 21% YOY. The bk value f the Bank s Investments prtfli as n 30 th September 2018, was `1,55,685 crres, f which `1,09,832 crres were in gvernment securities, while `30,647 crres were invested in crprate bnds and `15,206 crres in ther securities such as equities, preference shares, mutual funds, etc. Page 2 f 7

3 Savings Bank Depsits, n a quarterly average balance (QAB) basis grew by 17%. On QAB basis, CASA recrded a grwth f 13% YOY and cnstituted 45% as a prprtin f ttal depsits. Savings Accunt Depsits n perid end basis grew 14% YOY. CASA Depsits n a perid end basis grew 9% YOY and cnstituted 48% f ttal depsits as at the end f 30 th September The share f CASA and Retail Term Depsits in the Ttal Depsits std at 82% as n 30 th September Ttal Depsits grew 15% YOY. Capital Adequacy and Sharehlders Funds The sharehlders funds f the Bank grew 16% YOY and std at `65,059 crres as n 30 th September 2018.The Bank is well capitalised. Under Basel III, the Capital Adequacy Rati (CAR) and Tier I CAR (including net prfit fr H1FY19) as n 30 th September 2018 was 16.45% and 13.04% respectively. The Bank remains well capitalised t pursue grwth pprtunities. Asset Quality As n 30 th September 2018, the Bank s Grss NPA and Net NPA levels were 5.96% and 2.54% respectively, as against 6.52% and 3.09% respectively as n 30 th June The Bank has recgnised slippages f `2,777 crres during Q2FY19, cmpared t `4,337 crres in Q1FY19 and `8,936 crres in Q2 FY18. Crprate lending slippages std at `1,090 crres. 88% f this came frm disclsed BB & belw accunts. The Bank s BB and belw rated bk std at `8,860 crres. This is 1.7% f the Bank s Grss Custmer Assets, and is dwn t less than 1/4 th f the 7.3% peak reached in Jun-16. As n 30 th September 2018, the Bank s Grss NPA std at `30,938 crres and Net NPA std at `12,716 crres. Recveries and upgrades during the quarter were `2,186 crres while write-ffs were `2,315 crres. Net slippages (befre write-ffs) in Retail and SME std at `279 crres and `339 crres respectively. As n 30 th September 2018, the Bank s prvisin cverage, as a prprtin f Grss NPAs including prudential write-ffs, std at 73% up frm 69% in Q1FY19. Netwrk During Q2FY19, the Bank added 103 branches t its netwrk acrss the cuntry. As n 30 th September 2018, the Bank had a netwrk f 3,882 dmestic branches, extensin cunters and RACs situated in 2,269 centres cmpared t 3,485 dmestic branches, extensin cunters and RACs situated in 2,033 centres last year. As n 30 th September 2018, the Bank had 12,660 ATMs and 3,280 cash recyclers spread acrss the cuntry. Page 3 f 7

4 Digital Axis Bank is ranked #1 in the mbile banking spends and #3 in terms f transactin vlumes, as per the latest RBI data fr the mnth f January Mbile banking transactin vlumes surged by 267% YOY while the mbile spends in Q2 reprted a grwth f 106% YOY primarily led by surge in UPI (Unified Payment Interface) transactins. Axis Bank currently has a 26 millin registered UPI custmer base. During the quarter, Axis Bank prcessed ver 122 millin UPI transactins with ttal transactin value in Q2 grwing ver 22 times YOY t `13,320 crres. During the quarter, credit card usage witnessed significant grwth f 44% YOY in value terms. The share f digital transactins in the verall transactin mix fr the Bank remained strng at 72% as at end f September The Bank s wealth management business has seen strng grwth and is amng the largest in India with assets under management f `127,425 crres as at end f September The wealth management business Burgundy, currently has a base f 114,245 custmers, served by 506 relatinship managers and Investment cunsellrs. Freecharge Freecharge remains an imprtant cmpnent f the Bank s strategy in the Fintech and payment innvatin space. Since the cmpletin f acquisitin in Octber 2017, Freecharge s prgressin frm a payments platfrm twards a cmplete digital financial services platfrm has been extremely strng. During the quarter, the Bank started lending n this platfrm by ffering Instant paperless lans and EMI n Debit Cards. User base ver the last ne year is up 133%, spends per user is up 83% and ttal payments vlume is up 90%. New prduct launches, Awards & Recgnitin received during the quarter During the quarter, the Bank alng with Raipur Smart City Limited launched One Raipur Cmmn payment system. This all-in-ne digital payment slutin ffers a prepaid One Raipur smart card, mbile app and a web prtal which will enable citizens t make cashless payment fr varius services. The Bank als Intrduced Axis Tap & Pay, a mbile app, that will allw its custmers t make transactins by just tapping their NFC-enabled andrid mbile phnes n cntactless merchant terminals. During the quarter, the Bank wn awards fr the Best Prepaid card f the Year and the Best Cntactless Payments Prject f the Year at the 6 th editin f Payments & Cards Summit & Awards. Page 4 f 7

5 (` in crres) Financial Perfrmance Q2FY19 Q2FY18 % % H1FY19 H1FY18 Grwth Grwth Net Interest Incme 5,232 4,540 15% 10,399 9,156 14% Other Incme 2,678 2,586 4% 5,603 5, % - Fee Incme 2,376 2,170 9% 4,493 4,173 8% - Trading Incme (64%) 239 1,201 (80%) - Miscellaneus Incme % % Operating Revenue 7,910 7,125 11% 16,002 14,741 9% Cre Operating Revenue* 7,775 6,748 15% 15,764 13,540 16% Operating Expenses 3,816 3,348 14% 7,536 6,673 13% Operating Prfit 4,094 3,777 8% 8,466 8,068 5% Cre Operating Prfit* 3,958 3,400 16% 8,228 6,867 20% Net Prfit % 1,491 1,738 (14%) EPS Diluted (`) annualized Return n Average Assets (annualized) 0.43% 0.27% 0.41% 0.57% Return n Equity (annualized) 5.43% 3.34% 5.18% 6.82% *Excluding trading prfit fr all the perids. Cndensed Uncnslidated Balance Sheet CAPITAL AND LIABILITIES As n (` in crres) As n 30 th September th September 17 Capital Reserves & Surplus 64,545 55,692 Depsits 4,79,680 4,16,431 Brrwings 1,48,399 1,35,405 Other Liabilities and Prvisins 37,408 27,308 Ttal 7,30,546 6,35,316 ASSETS Cash and Balances with Reserve Bank f India and Balances with Banks and Mney at Call and Shrt Ntice 48,704 32,211 Investments 1,55,685 1,44,176 Advances 4,56,121 4,10,171 Fixed Assets 3,910 3,891 Other Assets 66,126 44,867 Ttal 7,30,546 6,35,316 Page 5 f 7

6 Business Perfrmance As n 30 th September 18 As n 30 th September 17 (` in crres) % Grwth Ttal Depsits (i)+(ii) 4,79,680 4,16,431 15% (i) Demand Depsits 2,28,870 2,10,057 9% - Savings Bank Depsits 1,48,742 1,30,265 14% - Current Accunt Depsits 80,128 79, % Demand Depsits as % f Ttal Depsits 48% 50% (ii) Term Depsits 2,50,810 2,06,374 22% - Retail Term Depsits 1,63,233 1,34,501 21% - Nn Retail Term Depsits 87,577 71,873 22% Demand Depsits n a Quarterly Average Basis (QAB) 1,98,615 1,75,945 13% Demand Depsits as % f Ttal Depsits (QAB) 45% 46% Net Advances (a) +(b) + (c) 4,56,121 4,10,171 11% (a) Crprate Credit 1,74,149 1,73, % (b) SME (incl. regulatry retail) 60,262 52,718 14% (c) Retail Advances 2,21,710 1,84,256 20% Investments 1,55,685 1,44,176 8% Balance Sheet Size 7,30,546 6,35,316 15% Grss NPA as % f Grss Custmer Assets 5.96% 5.90% Net NPA as % f Net Custmer Assets 2.54% 3.12% Equity Capital Sharehlders Funds 65,059 56,172 Capital Adequacy Rati (Basel III) 16.17% 15.97% - Tier I 12.76% 12.01% - Tier II 3.41% 3.96% Capital Adequacy Rati (Basel III) (including Net Prfit fr H1) 16.45% 16.32% - Tier I 13.04% 12.36% - Tier II 3.41% 3.96% Page 6 f 7

7 A presentatin fr investrs is being separately placed n the Bank's website: Fr press queries, please cntact Ms. Mittal Slanki at r Mittal.Slanki@axisbank.cm Fr investr queries, please cntact Mr. Abhijit Majumder at r Abhijit.Majumder@axisbank.cm Safe Harbr Except fr the histrical infrmatin cntained herein, statements in this release which cntain wrds r phrases such as will, aim, will likely result, wuld, believe, may, expect, will cntinue, anticipate, estimate, intend, plan, cntemplate, seek t, future, bjective, gal, strategy, philsphy, prject, shuld, will pursue and similar expressins r variatins f such expressins may cnstitute "frward-lking statements". These frward-lking statements invlve a number f risks, uncertainties and ther factrs that culd cause actual results t differ materially frm thse suggested by the frward-lking statements. These risks and uncertainties include, but are nt limited t ur ability t successfully implement ur strategy, future levels f nn-perfrming lans, ur grwth and expansin, the adequacy f ur allwance fr credit lsses, ur prvisining plicies, technlgical changes, investment incme, cash flw prjectins, ur expsure t market risks as well as ther risks. Axis Bank Limited undertakes n bligatin t update frward-lking statements t reflect events r circumstances after the date theref. Page 7 f 7