Axis Bank Q1FY23 PAT up 85.86% yoy at Rs4,381 crore on sharp fall in loan loss provisioning

26 Jul 2022 , 11:24 AM

Axis Bank Ltd, reported 13.12% growth in sales revenues yoy for the Q1FY23 quarter on consolidated basis at Rs22,686 crore. On a sequential basis, revenues were lower for the quarter by -1.37%.

For Q1FY23, the company saw robust growth in top line from retail and wholesale banking. However, amidst rising bond yields, the treasury revenues fell sharply.

In terms of segmental profits, treasury saw operating profits fall by 44% while profits in wholesale banking more than doubled. Retail banking saw profits turnaround in Q1.

Net interest income (NII) was up 21% yoy while fee income was up 34% yoy. Retail loans were up 25% yoy in the quarter while SME loans grew 27%. Both the number of savings accounts and current accounts grew by 15-16% in the quarter.

The consolidated net profit for Q1FY23 was up 85.86% yoy at Rs4,380.59 crore while it was down on a sequential basis by -0.84%.

The sharp yoy growth was due to lower provisions. Net interest margins (NIM) improved by 14 bps to 3.60%. while core operating profits grew 17% yoy and 5% sequentially to Rs4,125 crore. The ROE was sharply up by 587 bps at 15.66% in the quarter.

The big story was the sharp decline in the gross NPA levels to 2.76% from 3.85% in the year ago period. In the credit cards business, Axis Bank had 17% market share of incremental credit cards issued Net margins were 19.31% in Q1FY23 quarter compared to 11.75% in Q1FY22. NPM was flat compared to 11.21% in Q4FY22.

Financial highlights for Jun-22 compared yoy and sequentially

	Axis Bank
Rs in Crore	Jun-22	Jun-21	YOY	Mar-22	QOQ
Total Income (Rs cr)	₹ 22,686.46	₹ 20,055.70	13.12%	₹ 23,000.69	-1.37%
Net Profit (Rs cr)	₹ 4,380.59	₹ 2,356.90	85.86%	₹ 4,417.73	-0.84%
Diluted EPS (Rs)	₹ 14.23	₹ 7.67		₹ 14.36
Net Margins	19.31%	11.75%		19.21%