• Q4 FY23
  • Quarter-4 Results 2022-23

Axis Bank - Quarter 4 Results 2022-23


Major Highlights of

Q4FY23

Q4FY23 (excluding Exceptional Items*) – PAT at `6,625 crores, up 61% YOY, consolidated ROA at 2.18%, consolidated ROE at 21.58%, driven by strong all round operating performance

Strong operating performance


  • Net Interest Income grew 33% YOY and 2.5% QOQ, Net Interest Margin at 4.22%, up by 73 bps YOY
  • Fee income grew 24% YOY and 14% QOQ, granular fee constituted 92% of overall fees, Retail fee grew 31% YOY and 14% QOQ
  • Core operating profit grew 46% YOY and 3% QOQ, Operating profit grew 42% YOY and de-grew 1% QOQ
  • Consolidated ROA (annualized, excluding EI*) at 2.18%, up 64 bps YOY & 18 bps QOQ, with subsidiaries contributing 8 bps

Robust loan growth delivered across all business segments

  • Advances** grew 19% YOY and 11% QOQ; Domestic loan** book grew 23% YOY and 13% QOQ
  • Retail** loans grew 22% YOY & 14% QOQ of which Rural loans grew 26% | 19%, Card advances grew 97% | 53% on YOY | QOQ basis
  • Domestic Corporate loans grew 24% YOY and 11% QOQ, Mid-Corporate (MC) up 38% YOY, SME loans grew 23% YOY
  • SBB1 book grew 50% YOY & 12% QOQ, SBB+SME+MC mix at `1,722 bn | 20% of total loans, up ~629 bps in last 3 years

Steady growth in granular deposits, improving quality visible

  • On MEB basis, deposits** grew by 15% YOY & 12% QOQ; SA grew by 23% YOY & 18% QOQ, CA grew 17% YOY & 18% QOQ
  • On MEB basis, term deposits** grew by 11% YOY & 6% QOQ, CASA** ratio stood at 47%, up 215 bps YOY and 261 bps QOQ
  • On QAB basis, deposits grew by 11% YOY & 6% QOQ; QAB SA grew 13% YOY & 4% QOQ, QAB CA grew 15% YOY & 9% QOQ
  • Average LCR during Q4FY23 was ~129%, growing 13% QOQ and YOY

Well capitalized with self-sustaining capital structure; adequate liquidity buffers

  • Excluding EI, net accretion to CET-1 69 bps in FY23, self-sustaining capital structure for FY23
  • Overall capital adequacy ratio (CAR) stood at 17.64% with CET 1 ratio of 14.02%
  • `5,012 crores of COVID provisions not considered for CAR calculation, provides cushion of 51 bps over the reported CAR
  • Excess SLR of `75,071 crores

Continue to maintain strong position in Payments and Digital space

  • 1.13 million credit cards acquired in Q4FY23, incremental CIF market share of ~17% in last six months2
  • 2nd largest player in Merchant Acquiring with terminal market share of 19%, incremental share of 26% in last one year
  • Axis Mobile app is the world’s highest3 rated mobile banking app on Google Play store with ratings of 4.8 and ~12 million MAU
  • 400+ APIs hosted on Bank's API Developer Portal with 285 Retail APIs, Ranked 2nd in NEFT market share

Declining NPAs and slippages, moderate credit costs

  • GNPA at 2.02% declined by 80 bps YOY & 36 bps QOQ, NNPA at 0.39% declined 34 bps YOY & 8 bps QOQ, PCR healthy at 81%
  • Coverage4 ratio at 145%, Standard Covid-19 restructuring implemented loans at 0.22% of GCA
  • Gross slippage ratio (annualized) at 1.76%, declined 62 bps YOY & 27 bps QOQ, Net slippage ratio (annualized) at 0.38%, declining 55 bps QOQ
  • Annualized credit cost at 0.22%, declined 10 bps YOY and 43 bps QOQ

Key subsidiaries continue to deliver steady performance

  • Total FY23 PAT of domestic subsidiaries at `1,304 crs, up 9% YOY; Return on investments in subsidiaries at 50%
  • Axis Finance FY23 PAT grew 30% YOY, ROE at 17.9%, asset quality metrics improve with net NPA 0.36%
  • Axis AMC's FY23 PAT grew 16% YOY
  • Axis Capital FY23 PAT at `441 crores
  • Axis Securities FY23 revenue up 9% YOY, customer base up 17% YOY

Q4 FY23 Consolidated ROE (annualized, excluding EI) at 21.58%, up 500 bps YOY and 177 bps QOQ, with subsidiaries contributing 46 bps

* : Exceptional Items (EI) for Q4FY23 comprise of (i) full amortization of Intangibles and Goodwill (ii) impact of policy harmonization on operating expenses and provisions; and (iii) one-time stamp duty costs
** : Not strictly comparable as it includes acquired Citibank India Consumer Business ('CICB'). For details of growth without CICB, see slide 89 of this presentation
1. SBB : Small Business Banking
2. Based on RBI data from Oct'22 to Mar'23
3. across 59 global banks, 8 global neo banks and 50 Indian fintech apps with 2 mn+ reviews
4. Coverage Ratio = Aggregate provisions (specific + standard + additional + COVID) / IRAC GNPA
QAB: Quarterly Average Balance
MAU: Monthly Active Users

Key Metrics

for Q4FY23

Snapshot (As on March 31st, 2023) (in ` Crores)

Profit & Loss Absolute (in ` Crores) QOQ YOY Growth
  Q4FY23 Q3FY23 FY23 Q4FY23 Q4FY23 FY23
Net Interest Income 11,742 11,459 42,946 2% 33% 30%
Fee Income 4,676 4,101 16,216 14% 24% 25%
Operating Expenses 7,470 6,847 27,398 9% 14% 16%
Operating Profit 9,168 9,277 32,048 (1%) 42% 30%
Core Operating Profit 9,084 8,850 32,291 3% 46% 40%
PBT (excluding EI) 8,862 7,840 29,396 13% 62% 69%
Profit excluding EI 6,625 5,853 21,933 13% 61% 68%
Exceptional items (EI) 12,490 - 12,490 - - -
Profit after Tax (PAT) (5,728) 5,853 9,580 - - (26%)
Balance Sheet Absolute (in ` Crores) YOY Growth
  Q4FY23    
Total Assets 13,17,326   12%
Net Advances ** 8,45,303   19%
Total Deposits^ ** 9,46,945   15%
Shareholders' Funds 1,24,993   9%

^ period end balances
*Exceptional Items (EI) for Q4FY23 and FY23 comprise of (i) full amortization of Intangibles and Goodwill (ii) impact of policy harmonization on operating expenses and provisions; and (iii) one-time stamp duty costs
**Not strictly comparable as it includes acquired Citibank India Consumer Business ('CICB'). For details of growth without CICB, see slide 89 of this presentation

Key Ratios Absolute (in ` Crores)
  Q4FY23 FY23 Q4FY22 FY22
  Excl EI Reported Excl EI Reported    
Diluted EPS (Annualised in `) 86.31 (75.53) 71.03 31.02 54.27 42.35
Book Value per share (in `) 446 406 446 406 375 375
ROA (Annualised) 2.10% (1.83%) 1.82% 0.80% 1.46% 1.21%
ROE (Annualised) 21.12% (19.20%) 18.38% 8.47% 15.87% 12.91%
Consol ROA (Annualised) 2.18% (1.68%) 1.82% 0.85% 1.54% 1.29%
Consol ROE (Annualised) 21.58% (17.37%) 18.84% 9.26% 16.58% 13.67%
Gross NPA Ratio 2.02% 2.02% 2.82%
Net NPA Ratio 0.39% 0.39% 0.73%
Basel III Tier I CAR 14.57% 14.57% 16.34%
Basel III Total CAR 17.64% 17.64% 18.54%
Deposits** 15% YOY
CASA

21% YOY (MEB) | 13% YOY (QAB#)

#QAB - Quarterly Average Balance
** Not strictly comparable as it includes acquired Citibank India Consumer Business (‘CICB’). For details of growth without CICB, see slide 89 of this presentation

Advances 19% YOY   23% YOY1
Retail
SME
Corporate

22% YOY | 23% YOY | 14% YOY     24% YOY1

1 domestic loans

Core Operating Profit
excluding exceptional items
(in ` Crores) 40% QOQ
  • FY23
    32,291
  • FY22
    23,094
Profit After Tax
excluding exceptional items
(in ` Crores) 68% YOY
  • FY23
    21,933
  • FY22
    13,025

 

Performance at a Glance

FY23

  • NIM at 4.02%, improved by 55 bps YOY
  • NII grew 30% YOY; Fee income grew 25% YOY, Core operating profit grew 40% YOY
  • PAT (excluding exceptional items) at `21,933 crores, up 68% YOY
  • Consolidated ROE (excluding exceptional items) at 18.84%, up 517 bps YOY, subsidiaries contribute 46 bps

Healthy loan growth delivered across all business segments

  • SBB grew 50% YOY & 12% QOQ, Rural loans grew 26% YOY and 19% QOQ
  • Mid-Corporate (MC) book up 38% YOY and 10% QOQ
  • SBB + SME + MC mix at `1,72,216 crores | 20% of loans, up ~629 bps in last 3 years
  • Personal loans** grew 21% YOY & 8% QOQ, Credit Card advances** grew 97% YOY

Steady growth in granular deposits, early visibility of improving quality

  • On MEB basis, total deposits grew 15% YOY & 12% QOQ, SA grew 23% YOY & 18% QOQ, CA grew 17% YOY & 18% QOQ, term deposits grew 11% YOY & 6% QOQ
  • On QAB1 basis, total deposits grew 11% YOY & 6% QOQ, SA grew 13% YOY & 4% QOQ, CA grew 15% YOY & 9% QOQ, term deposits grew 10% YOY & 6% QOQ
  • Average LCR2 during Q4FY23 was ~129%, improving by 13% QOQ and YOY

Well capitalized with self-sustaining capital structure; adequate liquidity buffers

  • Overall capital adequacy ratio (CAR) stood at 17.64% with CET 1 ratio of 14.02%
  • COVID provisions of `5,012 crores, not in CAR calculation provides additional cushion of 51 bps
  • Net CET-1 accretion (excluding exceptional items) of 69 bps for FY23

Retaining strong position in Payments and Digital Banking

  • 18% market share in UPI transactions and 17% in UPI P2M acquiring (by throughput)
  • Mobile banking market share stood at 17%, Axis Mobile & Axis Pay have ~7.8mn non-Axis Bank customers
  • 95+ digital partnerships across platforms and ecosystems; ~11 mn customers on WhatsApp banking
  • Axis Mobile remains the world's3 highest rated MB app on Google Play store with rating of 4.8; ~12 mn MAU4
  • Highest ever credit cards issued (~1.13 mn) in Q4, spends at all-time high, up 57% YOY, spends market share at 10%

Declining NPA's and gross slippages

  • GNPA at 2.02% declined by 80 bps YOY & 36 bps QOQ, NNPA at 0.39% declined 34 bps YOY & 8 bps QOQ
  • PCR healthy at 81%; On an aggregated basis5, Coverage ratio at 145%
  • Q4FY23 gross slippage ratio (annualized) at 1.76%, declined 62 bps YOY & 27 bps QOQ, net slippage ratio at 0.38%, declining 55 bps QOQ
  • Q4FY23 credit cost (annualized) at 0.22% declined 10 bps YOY and 43 bps QOQ

Bank's domestic subsidiaries6 continue to deliver steady performance; FY23 profit at `1,304 crores, with a return on investment of 50%

  • Axis Finance FY23 PAT grew 30% YOY to `475 crores; asset quality remains stable, CAR healthy at 20.5%
  • Axis AMC FY23 PAT grew 16% YOY to `415 crores
  • Axis Capital FY23 PAT stood at `142 crores, Axis Securities FY23 PAT at `203 crores

1 QAB – Quarterly Average Balance
2 Liquidity Coverage Ratio
3 across 59 global banks, 8 global neo banks and 50 Indian fintech apps with 2 mn+ reviews
4 Monthly active users
5 (specific+ standard+ additional + COVID)
6 Figures of subsidiaries are as per Indian GAAP, as used for consolidated financial statements of the Group

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