Axis Bank - Quarterly Results 2023-24 (2024)

  • Q3 FY24
  • Quarter-3 Results 2023-24

open,

to win

together.

Axis Bank - Quarterly Results 2023-24 (2)

Axis Bank - Quarterly Results 2023-24 (3)

Axis Bank - Quarterly Results 2023-24 (4)

Axis Bank - Quarterly Results 2023-24 (5)

Axis Bank - Quarterly Results 2023-24 (6)

Axis Bank - Quarterly Results 2023-24 (7)

Axis Bank - Quarterly Results 2023-24 (8)

Axis Bank - Quarterly Results 2023-24 (9)

Major Highlights of

Q3FY24

Q3FY24 operating profit `9,141 crores, up 6% QOQ, PAT at ``6,071 crores up 4% QOQ; Consolidated ROE at 18.61%, aided by a balanced sequential deposit and loan growth of 5% and 4% respectively

Healthy operating performance

  • Net Interest Income grew 9% YOY and 2% QOQ, Net Interest Margin at 4.01%
  • Fee income grew 29% YOY and 4% QOQ, granular fee constituted 93% of overall fees, Retail fee grew 36% YOY and 6% QOQ
  • Core operating revenue up 14% YOY and 2% QOQ, operating profit grew 6% QOQ
  • Consolidated ROA (annualized) at 1.84%, with subsidiaries contributing 9 bps

Strong loan growth delivered across all business segments

  • Advances grew 22% YOY and 4% QOQ; Advances (gross of loans sold under IBPC) grew by 23% YOY and 4% QOQ
  • Retail loans grew 27% YOY and 5% QOQ of which Rural loans grew 34% YOY and 7% QOQ, SBB1 book grew 40% YOY and 6% QOQ
  • Corporate loans (gross of IBPC sold) up 15% YOY & 3% QOQ, Mid-Corporate (MC) up 30% YOY & 6% QOQ, SME loans up 26% YOY & 4% QOQ
  • SBB+SME+MC mix at ₹1,986 bn | 21% of total loans, up ~620 bps in last 3 years

Retail term deposits gaining traction, CASA ratio among the best in the industry

  • On MEB basis, total deposits up 18% YOY & 5% QOQ; On QAB basis, total deposits grew 18% YOY & 4% QOQ
  • On MEB basis, retail term deposits (RTD) grew 17% YOY & 2% QOQ, SA grew 16% YOY, CA grew 5% YOY
  • On QAB basis, RTD grew 15% YOY & 3% QOQ, SA grew by 16% YOY, CA grew 5% YOY & 4% QOQ
  • CASA ratio on both QAB and MEB basis stood at ~42%, among the best in the industry
  • Average LCR during Q3FY24 was ~118%, Average LCR Outflow rates improved by ~600 bps in last 2 years

Well capitalized with self-sustaining capital structure; adequate liquidity buffers

  • Self sustaining capital structure with net organic accretion to CET-1* of 39 bps in 9MFY24, negative impact of regulatory changes on CET-1 of 70 bps
  • Overall capital adequacy ratio (CAR*) stood at 16.63% with CET 1* ratio of 13.71%
  • `5,012 crores of COVID provisions not considered for CAR calculation, provides cushion of 43 bps over the reported CAR
  • Excess SLR of `72,674 crores

Continue to maintain strong position in Payments and Digital space

  • Largest player in Merchant Acquiring business in India with terminal market share of ~19%, incremental share of ~26% in last one year2
  • 1.26 million credit cards acquired in Q3FY24, CIF market share of 14%2
  • Axis Mobile app is the world’s highest 3 rated mobile banking app on Google Play store with ratings of 4.8 and ~13 million MAU
  • 400+ APIs hosted on Bank’s API Developer Portal with 285+ Retail APIs

Declining slippages, gross NPA and credit cost

  • GNPA at 1.58% declined by 80 bps YOY and 15 bps QOQ, NNPA at 0.36% declined 11 bps YOY, PCR healthy at 78%
  • Coverage4 ratio at 153%, Standard Covid-19 restructuring implemented loans at 0.16% of GCA and declined 14 bps YOY
  • Net slippage ratio (annualized) at 0.50% declined 43 bps YOY and 9 bps QOQ, Gross slippage ratio (annualized) at 1.62% declined 40 bps YOY
  • Annualized credit cost at 0.28%, declined 37 bps YOY and 14 bps QOQ

Key subsidiaries continue to deliver steady performance

  • Total 9MFY24 PAT of domestic subsidiaries at `1108 crs, up 17% YOY; Return on investments in domestic subsidiaries at 50%
  • Axis Finance 9MFY24 PAT up 25% YOY, ROE at 16.4%, total CAR healthy at 18.8%, asset quality metrics improve with GNPA declining 31 bps YOY to 0.50%
  • Axis AMC’s 9MFY24 PAT at `297 crores, Axis Securities 9MFY24 PAT up 31% YOY
  • Axis Capital 9MFY24 PAT stood at ₹108 crores and executed 71 investment banking deals in 9MFY24

9MFY24 PAT at `17,732 crores up 16% YOY, consolidated ROE at 18.86% up 82 bps YOY

IBPC: Inter Bank Participation Certificates
QAB: Quarterly Average Balance
MAU: Monthly Active Users engaging in financial and non-financial transactions
1 SBB : Small Business Banking
2 Based on RBI data as of Nov'23
3 across 64 global banks, 82 fintechs and 9 neo banks with 2.4 mn+ reviews
4 Coverage Ratio = Aggregate provisions (specific + standard + additional + Covid) / IRAC GNPA
* including profits for 9MFY24, net organic accretion = capital accreted – capital consumed (excluding consumption for regulatory changes in risk weights)

Axis Bank - Quarterly Results 2023-24 (10)

Key Metrics for Q3FY24

Snapshot (As on December 31st, 2023) (in ` Crores)

Profit & Loss Absolute (in ` Crores) QOQ YOY Growth
Q3FY24 Q2FY24 9MFY24 Q3FY24 Q3FY24 9MFY24
Net Interest Income 12,532 12,315 36,805 2% 9% 18%
Fee Income 5,169 4,963 14,620 4% 29% 29%
Operating Expenses 8,946 8,717 25,894 3% 32% 32%
Operating Profit 9,141 8,632 26,587 6% (1%) 16%
Core Operating Profit 8,850 8,733 25,878 1% - 12%
Profit after Tax 6,071 5,864 17,732 4% 4% 16%
Balance Sheet Absolute (in ` Crores) YOY Growth
Q3FY24
Total Assets 13,98,541 14%
Net Advances 9,32,286 22%
Total Deposits 10,04,900 18%
Shareholders' Funds 1,42,984 9%
Key Ratios Absolute (in ` Crores)
Q3FY24 / 9MFY24 Q3FY23 / 9MFY23
Diluted EPS (Annualised in `) 77.86 / 76.10 74.60 / 65.90
Book Value per share (in `) 464 425
Standalone ROA (Annualised) 1.75% / 1.77% 1.92% / 1.73%
Standalone ROE (Annualised) 18.07% / 18.46% 19.34% / 17.58%
Cons ROA (Annualised) 1.84% / 1.80% 2.00% / 1.76%
Cons ROE (Annualised) 18.61% / 18.86% 19.81% / 18.04%
Gross NPA Ratio 1.58% 2.38%
Net NPA Ratio 0.36% 0.47%
Basel III Tier I CAR ^ 14.18% 16.15%
Basel III Total CAR ^ 16.63% 19.51%

^ including profit after tax for 9M

Deposits Axis Bank - Quarterly Results 2023-24 (11) 18% YOY (a) Axis Bank - Quarterly Results 2023-24 (12) 18% YOY (b)

Axis Bank - Quarterly Results 2023-24 (13)

Axis Bank - Quarterly Results 2023-24 (14) CASA

Axis Bank - Quarterly Results 2023-24 (15) 12% YOY (a) | Axis Bank - Quarterly Results 2023-24 (16) 13% YOY (b)

(a) Period end balances (b) Quarterly average balance

Advances Axis Bank - Quarterly Results 2023-24 (17) 22% YOY (c) Axis Bank - Quarterly Results 2023-24 (18) 23% YOY (d)

Axis Bank - Quarterly Results 2023-24 (19)

Axis Bank - Quarterly Results 2023-24 (20) Retail

Axis Bank - Quarterly Results 2023-24 (21) SME

Axis Bank - Quarterly Results 2023-24 (22) Corporate

Axis Bank - Quarterly Results 2023-24 (23) 27% YOY | Axis Bank - Quarterly Results 2023-24 (24) 26% YOY | Axis Bank - Quarterly Results 2023-24 (25) 13% YOY (c) Axis Bank - Quarterly Results 2023-24 (26) 15% YOY (d)

(c) Overall (d) Overall (gross of IBPC sold)

Operating Profit (in ` Crores)Axis Bank - Quarterly Results 2023-24 (27) 16% YOY

  • 9MFY24

    26,587

  • 9MFY23

    22,881

Profit After Tax (in ` Crores)Axis Bank - Quarterly Results 2023-24 (28) 16% YOY

  • 9MFY24

    17,732

  • 9MFY23

    15,308

We have a very well distributed branch network;
added 350 branches in 9MFY24 of which 100 in Q3FY24

Domestic Branch Network*

  • Dec-23

    5,252

  • Mar-23

    4,903

  • Mar-22

    4,758

  • Mar-21

    4,594

  • Mar-20

    4,528

* Includes extension counters

Axis Bank - Quarterly Results 2023-24 (29)

Axis Bank - Quarterly Results 2023-24 (30)

Performance at a Glance

Healthy operating performance

  • Net Interest Income grew 9% YOY and 2% QOQ, Net Interest Margin at 4.01%
  • Core Operating revenues grew 14% YOY and 2% QOQ, operating profit grew 6% QOQ
  • Consolidated ROE | ROA at 18.61% | 1.84%, subsidiaries contributed 54 bps | 9 bps respectively

Strong loan growth delivered across all business segments

  • Advances (gross of IBPC sold) up 23% | 4%, Rural loans grew 34% YOY & 7% QOQ
  • Small Business Banking loans grew 40% YOY & 6% QOQ, Mid-Corporate (MC) book grew 30% YOY
  • SBB + SME + MC mix at ₹1,98,553 crores | 21% of loans, up ~620 bps in last 3 years

Retail term deposits gaining traction, CASA ratio among the best in the industry

  • On a QAB1 basis, RTD grew 15% YOY & 3% QOQ, total deposits grew by 18% YOY & 4% QOQ
  • On QAB,CASA grew 13% YOY and 1% QOQ, CASA ratio stood at 42%
  • Average LCR2during Q3FY24 was ~118%, outflow rates improved ~ 600 bps over last 2 years

Well capitalized with self-sustaining capital structure

  • Overall capital adequacy ratio (CAR) including profit stood at 16.63% with CET 1 ratio of 13.71%
  • Self-sustaining capital structure with net organic accretion to CET-1 of 39 bps in 9MFY24
  • COVID provisions of `5,012 crores, not in CAR calculation provides additional cushion of ~43 bps

Continue to maintain strong position in Payments and Digital Banking

  • Axis Mobile & Axis Pay have ~10 mn non-Axis Bank customers
  • 100+ digital partnerships across platforms and ecosystems; ~18.8 mn customers on WhatsApp banking
  • Axis Mobile remains the world’s3 highest rated MB app on Google Play store with rating of 4.8; On the iOS app store our ratings increased from 4.6 to 4.7 during the quarter; ~13 mn MAU4
  • Credit card CIF market share at 14%, Retail Card spends grew 88% YOY and 13% QOQ

Declining slippages, gross NPA and credit cost

  • PCR healthy at 78%; On an aggregated basis5, Coverage ratio at 153%
  • Net slippage ratio6 at 0.50% declined 43 bps YOY & 9 bps QOQ, Gross slippage ratio6 at 1.62%, declined 41 bps YOY
  • Q3FY24 net credit cost6 at 0.28%, declined 14 bps QOQ

Key domestic subsidiaries7 continue to deliver steady performance

  • 9MFY24 profit at `1,108 crores up 17% YOY, with a return on investment in domestic subsidiaries of 50%
  • Axis Finance 9MFY24 PAT grew 25% YOY to `425 crores; asset quality metrics improve, ROE at 16.4%
  • Axis AMC 9MFY24 PAT stood at `297 crores, Axis Securities 9MFY24 PAT grew 31% YOY to `198 crores
  • Axis Capital 9MFY24 PAT stood at `108 crores and executed 71 investment banking deals in 9MFY24

1 QAB – Quarterly Average Balance,
2 Liquidity Coverage Ratio,
3 across 64 global banks, 82 fintechs and 9 neo banks with 2.4 mn+ reviews
4 Monthly active users, engaging in financial and non-financial transactions,
5 (specific+ standard+ additional + COVID)
6 Annualized
7 Figures of subsidiaries are as per Indian GAAP, as used for consolidated financial statements of the Group

Copyright 2024 Axis Bank, India.

As an expert in the field of financial analysis and banking, I can confidently decipher the provided information on Q3 FY24 Quarter-3 Results 2023-24 for Axis Bank. Let me break down the key concepts and metrics used in the article:

  1. Operating Performance:

    • Net Interest Income (NII) grew by 9% YoY and 2% QoQ, with a Net Interest Margin (NIM) at 4.01%.
    • Fee income increased by 29% YoY and 4% QoQ, with granular fees constituting 93% of overall fees.
    • Core operating revenue was up by 14% YoY, and operating profit increased by 6% QoQ.
  2. Loan Growth:

    • Advances grew by 22% YoY and 4% QoQ.
    • Retail loans increased by 27% YoY, of which Rural loans grew by 34% YoY.
    • Small Business Banking (SBB1) book grew by 40% YoY.
  3. Deposit Growth and CASA Ratio:

    • Total deposits increased by 18% YoY.
    • Retail term deposits (RTD) grew by 15% YoY, and Current Account Savings Account (CASA) ratio stood at ~42%.
  4. Capital Structure and Liquidity:

    • Capital Adequacy Ratio (CAR) was at 16.63%, with CET-1 ratio at 13.71%.
    • Self-sustaining capital structure with net organic accretion to CET-1 of 39 bps in 9MFY24.
    • Liquidity Coverage Ratio (LCR) during Q3FY24 was ~118%, with improved outflow rates by ~600 bps in the last 2 years.
  5. Digital Banking and Payments:

    • Axis Mobile app is the world’s highest-rated mobile banking app on Google Play store.
    • The bank maintains a strong position in the Payments and Digital space with various digital partnerships and a significant customer base on Axis Mobile and Axis Pay.
  6. Asset Quality and Credit Metrics:

    • Gross Non-Performing Assets (GNPA) at 1.58%, declined by 80 bps YoY.
    • Net Non-Performing Assets (NNPA) at 0.36%, declined by 11 bps YoY.
    • Provision Coverage Ratio (PCR) healthy at 78%, with a declining trend in slippages, gross NPA, and credit cost.
  7. Subsidiary Performance:

    • Key subsidiaries, including Axis Finance, Axis AMC, Axis Securities, and Axis Capital, have shown steady performance.
    • Total 9MFY24 PAT of domestic subsidiaries at `1,108 crores, up 17% YoY.
  8. Key Financial Metrics:

    • Profit after Tax (PAT) for Q3FY24 at `6,071 crores, up 4% QoQ.
    • Consolidated Return on Equity (ROE) at 18.61% and Consolidated Return on Assets (ROA) at 1.84%.
    • Diluted Earnings Per Share (EPS) and Book Value per share are provided.
  9. Branch Network Expansion:

    • The bank has a well-distributed branch network, adding 350 branches in 9MFY24.
  10. Miscellaneous:

    • IBPC: Inter Bank Participation Certificates
    • QAB: Quarterly Average Balance
    • MAU: Monthly Active Users
    • SBB: Small Business Banking
    • CASA: Current Account Savings Account

This comprehensive overview showcases Axis Bank's robust financial performance, strategic growth in loans and deposits, strong digital presence, and effective management of asset quality.

Axis Bank - Quarterly Results 2023-24 (2024)
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