Axis Bank Share Q3 Results

Axis Bank Ltd

Corporate Action
by 5paisa Research Team Last Updated: 2022-08-08T18:44:57+05:30

Axis Bank saw a sharp 3-fold rise in profits for the Dec-21 quarter largely on the back of lower provisioning for loan losses in the quarter. However, the bigger narrative for Axis Bank was that it had seen all-round growth across various verticals like treasury, retail banking and corporate banking.


Axis Bank Financials Numbers
 

Rs in Crore

Dec-21

Dec-20

YOY

Sep-21

QOQ

Total Income

₹ 22,091

₹ 18,991

16.32%

₹ 20,967

5.36%

Operating Profit

₹ 6,665

₹ 5,563

19.80%

₹ 6,304

5.72%

Net Profit

₹ 3,957

₹ 1,318

200.24%

₹ 3,388

16.80%

Diluted EPS

₹ 12.86

₹ 4.30

 

₹ 11.02

 

Operating Margins

30.17%

29.29%

 

30.07%

 

Net Margins

17.91%

6.94%

 

16.16%

 

Gross NPA Ratio

3.17%

3.44%

 

3.53%

 

Net NPA Ratio

0.91%

0.74%

 

1.08%

 

Return on Assets (Ann)

1.30%

0.48%

 

1.19%

 

Capital Adequacy

17.44%

18.68%

 

19.23%

 

 

For the Dec-21 quarter, India’s third largest private sector bank, Axis Bank, reported 16.32% rise in total revenues on a YoY basis at Rs.22,091 crore. In terms of top line revenues various verticals, Axis Bank saw all round growth across treasury, wholesale banking and retail banking. Revenues of Axis Bank were up 5.36% on a sequential basis, showing that short term momentum and long term growth were favouring Axis Bank in Q3.

Operating profits saw a spike in profits in the corporate banking and treasury vertical. On the other hand, the retail banking vertical turned around from operating losses to operating profits on reduced asset quality stress. The provisions for doubtful assets in the Dec-21 quarter at Rs.1,363 crore was 64% lower and made a big difference to profit growth. Operating margin expanded from a level of 29.29% in Dec-20 to 30.17% in Dec-21 quarter.

If you look at the operating profits reported overall, it was up 19.80% at Rs.6,665 crore on a YoY basis. The all-important Net interest income or NII rallied by 17% YoY and 10% sequentially to Rs.8,653 crore. Spread captured by the Net interest margins or NIM improved 14 bps sequentially to 3.53%. The NIMs are improving but now overall NIMs are still about 50 bps lower compared to ICICI Bank and HDFC Bank.

The non-interest income also added substantially to the revenue growth traction of Axis Bank. Fee income grew 15% YoY at Rs.3,344 crore while retail fees grew 16% YoY and retail card fees grew 21%. Non-interest income was up 31% YoY at Rs.3,840 crore. But the biggest boost to the bottom line actually came from the loan loss provisions narrowing from Rs.3,779 Cr to Rs.1,363 Cr in the Dec-21 quarter on a YoY basis.

Net profits for the Dec-21 quarter were up by 200% at Rs.3,957 crore and this positive performance was triggered by better interest spreads, higher non-interest income and lower provisioning for doubtful debts. That is the summary of Axis Bank in Q3. As a result, net profit margins improved from 6.94% to 17.91% in the same period. Gross NPAs at 3.17% are well under check and net NPAs of 0.91% indicate losses largely provisioned for.

Also Read:-

ICICI Bank Share Q3 Results

HDFC Bank Quarterly Results


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