LIC Housing Finance Q2 Profit Surpasses Expectations on Strong Housing Loan Demand

2 Nov 2023 , 01:29 PM

LIC Housing Finance reported a Q2 profit that exceeded analyst estimates due to strong demand for housing loans.  The company, a unit of Life Insurance Corp of India, saw its after-tax profit more than triple to Rs 1,188 crore ($142.72 million) for the quarter ending on September 30.

LIC Housing reported an 83% increase in net interest income, reaching Rs 2,107 crore for the quarter. The net interest margin, a critical measure of profitability, stood at 3.04%, up from 1.78% in the previous year. The company’s total expenses rose by 12%, including a finance cost increase of about 18%.

LIC Housing CEO Tribhuwan Adhikari cited robust demand, driven by a healthy overall economy and stable interest rates. Rival PNB Housing Finance also reported a significant increase in Q2 profit the previous week, benefiting from strong demand for home loans and improved asset quality.

LIC Housing’s shares closed 0.4% lower prior to the results announcement on Wednesday. The stock has gained approximately 10% year-to-date, compared to a nearly 1% rise in the Nifty Financial Services index.

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