Yes Bank, on Saturday, announced its third-quarter results for the period ending December 2024, posting a remarkable 164.5 per cent year-on-year increase in profit after tax (PAT) to ₹612.27 crore, along with a 10.2 per cent year-on-year growth in net interest income (NII).
The NII stood at ₹2,224 crore, with net interest margins (NIMs) remaining unchanged at 2.4 per cent year-on-year and quarter-on-quarter.
Yes Bank's interest income amounted to ₹7,829.13 crore, reflecting a 12 per cent year-on-year increase. At the same time, the bank's interest expenses rose to ₹5,605.62 crore, a 12.8 per cent increase from ₹4,967.96 crore in the corresponding period last year.
“Q3FY25 is the fifth quarter in a row where the Bank has demonstrated sustained sequential expansion in profitability. The RoA of the Bank has also expanded to 0.6% from 0.5%, reported over the last 3 quarters. It is quite encouraging that we have also started seeing expansion in our Operating Profitability," said Prashant Kumar, Managing Director & CEO at Yes Bank.
Yes Bank's operating expenses increased by 13.2 per cent year-on-year, showing a modest rise of just 0.9 per cent compared to the previous quarter. Despite this growth in expenses, the bank’s cost-to-income ratio has improved for the second consecutive quarter, falling to 71.1 per cent from 73.1 per cent in Q3FY24 and 73.0 per cent in Q2FY25. This sequential decrease highlights the bank's ongoing efforts to enhance efficiency and manage costs effectively.
“Two distinct trends which I think are important to highlight in terms of trajectory of the Bank’s profitability going forward are, 1) reduction in balances of deposits placed in lieu of PSL shortfalls to 8.5% of Assets this quarter, from 10.4% of Assets in Q2FY25, and 2) fresh slippages in Retail Segment remaining flat on Q-o-Q basis. Both of these are in line with our earlier guidance, and while one of the factors is likely to aid expansion in Net Interest Margins and Operating Profits, the other may likely result in reduction of gross credit costs,” Kumar added.
Yes Bank's Q3 asset quality
There was a continued improvement in asset quality metrics for the quarter. The Gross Non-Performing Asset (GNPA) ratio decreased year-over-year (YoY), reaching 1.6 per cent in Q3 FY25, down from 2 per cent in Q3 FY24. On a sequential quarter-on-quarter (QoQ) basis, the GNPA ratio remained largely unchanged.
The Net Non-Performing Asset (NNPA) ratio also improved, falling to 0.5 per cent in Q3 FY25 from 0.9 per cent in Q3 FY24. The NNPA ratio remained consistent with the previous quarter (Q2 FY25) at 0.5 per cent.
The CASA ratio increased to 33.1 per cent in Q3 FY25, compared to 29.7 per cent in the same quarter of the previous fiscal year.
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