📊 Results Roundup: Q4 FY24-25 — April 19
Q4 FY24-25 Earnings Report Roundup: HDFC Bank, ICICI Bank, and Yes Bank
As earnings season wraps up, the results from HDFC Bank, ICICI Bank, and Yes Bank reflect varying levels of performance, with some showing steady growth while others are navigating challenges. Here’s a detailed breakdown of each bank’s results:
🏦 HDFC Bank
Rating: ⭐⭐⭐ (3/5) — Solid performance with minor asset quality concerns
Key Metrics:
- Net Profit: ₹17,616 crore (▲6.7% YoY)
- Net Interest Income (NII): ₹32,066 crore (▲10.3% YoY)
- Gross NPA: 1.33% (▲0.09% YoY)
- Net NPA: 0.43% (▲0.1% YoY)
- Capital Adequacy Ratio: 19.6%
What’s Working:
- Strong growth in NII and net profit. The bank’s revenue growth was bolstered by an increase in interest income, which rose by ₹6,000 crore YoY.
- The bank's dividend payout of ₹22 per equity share (2200%) reflects strong cash reserves.
What’s Not:
- The slight increase in NPAs indicates minor asset quality deterioration, with both gross and net NPAs rising in comparison to the previous year.
Future Outlook:
- With the ongoing merger with HDFC, the bank is well-positioned to benefit from a larger loan portfolio. However, the pressure on deposit growth continues to be a challenge. The recent savings rate cut could also boost margins in future quarters.
🏦 ICICI Bank
Rating: ⭐⭐⭐⭐ (4/5) — Robust growth and strong asset quality
Key Metrics:
- Net Profit: ₹9,121 crore (▲18% YoY)
- Net Interest Income (NII): ₹42,430.8 crore (▲11.8% YoY)
- Gross NPA: 1.67% (▼0.49% YoY)
- Net NPA: 0.39% (▼0.03% YoY)
- Provision for Bad Loans: ₹890.7 crore (▲24% YoY)
- Dividend: ₹11 per equity share (subject to AGM approval)
What’s Working:
- Strong growth in both net profit and NII, supported by robust asset quality improvements. The reduction in NPAs signals strong risk management.
- The bank’s substantial provision allocation reflects its proactive approach to managing potential loan losses.
What’s Not:
- While the bank’s NPAs have improved, the increase in provisions indicates a cautious stance on future asset quality.
Future Outlook:
- The 31.83% YoY return on shares is a testament to ICICI Bank’s growing market presence. Moving forward, it will continue to benefit from improved asset quality and expanding services.
🏦 Yes Bank
Rating: ⭐⭐⭐ (3/5) — Strong turnaround, but challenges remain
Key Metrics:
- Net Profit: ₹738 crore (▲63.3% YoY)
- Net Interest Income (NII): ₹2,276 crore (▲5.7% YoY)
- Gross NPA: 1.6% (Unchanged YoY)
- Net NPA: 0.3% (▼0.2% YoY)
- Non-interest Income: ₹1,739 crore (▲10.9% YoY)
- Dividend: To be announced at the AGM
What’s Working:
- A significant jump in net profit, with a 92.3% rise in overall profits for FY25, showing a strong recovery from past financial challenges.
- The improvement in NPA figures highlights Yes Bank’s better credit risk management.
What’s Not:
- Despite the YoY profit growth, NII’s modest rise and steady GNPAs suggest that there are still underlying concerns in the bank’s loan book and profitability metrics.
Future Outlook:
- The bank’s strong deposit growth and improved asset quality provide a solid foundation for long-term growth. Continued monitoring of credit quality and profitability will be essential for sustaining growth.
📊 Final Word
The Q4 FY24-25 earnings reports from HDFC Bank, ICICI Bank, and Yes Bank show positive strides in the banking sector. While HDFC Bank and ICICI Bank demonstrate consistent growth with minor challenges related to asset quality, Yes Bank’s turnaround story is noteworthy. The latter’s impressive profit growth signals a recovery, although cautious monitoring of its asset quality and NII performance is essential.
The outlook for these banks looks promising, with potential for growth driven by stronger deposit mobilization and improved asset quality management. As always, prudent monitoring of financial and operational metrics will be key to assessing their future performance in the competitive banking landscape.