Axis Bank Q4 Results Update

On 28th April 2022, Axis Bank announced its quarterly results for the last quarter of FY2022. And on Friday, Axis Bank share price dropped by 4.28%.

Key Highlights:

 Axis Bank Q4 Results for FY22 Declared
 

Profit & Loss Account:

Q4FY22:

- The Bank’s operating profit for the quarter grew by 13% YoY and 5% QoQ to Rs.6,466 crores. Net profit grew by 54% from Rs.2,677 crores in Q4FY21 to Rs.4,118 crores in Q4FY22.

- The Bank’s Net Interest Income (NII) grew by 17% YoY and 2% QoQ to Rs.8,819 crores. Net interest margin (NIM) for Q4FY22 stood at 3.49%

- Fee income for Q4FY22 was up by 11% YoY and 12% QoQ to Rs.3,758 crores. 

- Specific loan loss provisions for Q4FY22 were Rs.602 crores compared to Rs.790 crores in Q3FY22. 

FY22:

- Net Interest Income for FY22 grew by 13% YoY to Rs.33,132 crores from Rs.29,239 crores. 

- Fee income grew by 22% YoY to Rs.13,001 crores. 

- Operating profit up by 7% to Rs.24,742 crores from Rs.23,128 crores in FY21. 

- Total provisions for FY22 stood at Rs.7,359 crores, down 49% over the same period last fiscal. 

- Net Profit for FY22 up by 98% to Rs.13,025 crores from Rs.6,588 crores in FY21.

Balance sheet:

- Axis Bank’s balance sheet grew by 19% YoY and stood at Rs.11,75,178 crores as of 31 st March 2022. 

- The total deposits grew by 19% YoY on a quarterly average balance (QAB) basis and 18% YoY on a period-end basis.

- The Bank’s advances grew 15% YoY and 6% QoQ to Rs.7,07,696 crores as of 31st March 2022. 

- The Bank’s loan to deposit ratio stood at 86%. Retail loans grew by 21% YoY and 9% QoQ to Rs.3,99,891 crores and accounted for 57% of the net advances of the Bank.

- The book value of the Bank’s Investments portfolio as of 31st March 2022, was Rs.2,75,597 crores, of which Rs.2,24,763 crores were in government securities, while Rs.45,143 crores were invested in corporate bonds and Rs.5,691 crores in other securities such as equities, mutual funds, etc.
 

Asset Quality:

- As of 31st March 2022, the Bank’s reported Gross NPA and Net NPA levels were 2.82% and 0.73% respectively as against 3.17% and 0.91% as of 31st December 2021. 

- Recoveries and upgrades from NPAs during the quarter were Rs.3,763 crores. Consequently, the net slippages in NPAs (before write-offs) for the quarter of Rs.218 crores as compared to Rs.860 crores in Q3FY22 and Rs.1,822 crores in Q4FY21. 

- The net slippages in retail were Rs.193 crores, commercial banking was Rs.85 crores and wholesale banking was negative Rs.60 crores. 

- As of 31st March 2022, the Bank’s provision coverage, as a proportion of Gross NPAs stood at 75%, as compared to 72% as of 31st March 2021 and 72% as of 31st December 2021. 
 

Wealth Management Business – Burgundy:

The Bank’s wealth management business has seen strong growth and is among the largest in India with assets under management (AUM) of over Rs.2,60,768 crores as at end of 31st March 2022. Burgundy Private for the high and ultra-high net worth clients, covers over 3,490 families from 1,666 families in the last one year. The AUM for Burgundy Private increased 74% YoY to Rs.86,959 crores.

The Board of Directors has recommended a dividend of Rs.1 per equity share of the face value of Rs.2 per equity share for the year ended 31st March 2022. 

Amitabh Chaudhry, MD&CEO, Axis Bank said, “We have made steady progress across all dimensions of our business. Considerable work has gone into strengthening our core, building granularity while at the same time ensuring that we are well-positioned to grow and leverage the opportunities opening up, hopefully with the pandemic behind us. The Citi deal is one of its kind and should pivot us into a premium franchise in line with our strategic objectives. With smart products, services, partnerships, and talent on our side, we look forward to further building on our performance in the new financial year.”