Axis Bank - Quarterly Results 2023-24

Major Highlights of

Q4FY24

FY24 PAT at `24,861 crores, up 160% YOY, FY24 NIM at 4.07% up 6 bps YOY; Consolidated ROA at 1.84%, up 99 bps YOY; Consolidated ROE at 19.29% up 1,003 bps YOY ; aided by balanced deposit and loan growth of 13% and 14%, respectively

Steady operating performance in Q4FY24

Net Interest Income grew 11% YOY and 4% QOQ, Net Interest Margin at 4.06% up 5 bps QOQ
Fee income grew 23% YOY and 9% QOQ, granular fee constituted 93% of overall fees, Retail fee grew 33% YOY and 12% QOQ
Operating revenue up 20% YOY and 10% QOQ, Operating profit grew 15% YOY and QOQ, Q4FY24 Net profit at `7,130 crores, up 17% QOQ
Consolidated ROA | ROE on annualized basis at 2.07% | 20.87%, up 23 bps | 226 bps QOQ, with subsidiaries contributing 7 bps | 52 bps, respectively

Retail term deposits gaining traction, CASA ratio among the best in the industry

On MEB basis, total deposits up 13% YOY & 6% QOQ; On QAB basis, total deposits grew 16% YOY & 5% QOQ
On MEB basis, retail term deposits (RTD) grew 17% YOY & 5% QOQ, SA 4% QOQ, CA 18% QOQ, CASA grew 8% QOQ
On QAB basis, RTD grew 16% YOY & 3% QOQ, SA grew by 10% YOY, CA grew 4% YOY & 7% QOQ
CASA ratio MEB basis stood at ~43%, among the best in the industry
Avg. LCR Outflow rates improved by ~500 bps in last 2 years

Healthy loan growth delivered across all business segments

Advances grew 14% YOY and 4% QOQ; Advances (gross of loans sold under IBPC) grew by 15% YOY and 4% QOQ
Retail loans grew 20% YOY and 7% QOQ of which Rural loans grew 30% YOY and 15% QOQ, SBB¹ book grew 33% YOY and 7% QOQ
Corporate loans (gross of IBPC sold) up 7% YOY, Mid-Corporate (MC) up 22% YOY & 3% QOQ, SME loans up 17% YOY & 5% QOQ
SBB+SME+MC mix at ₹2,083 bn | 22% of total loans, up ~628 bps in last 3 years

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

Self sustaining capital structure with net organic* accretion to CET-1 of 44 bps in FY24
Overall capital adequacy ratio (CAR) stood at 16.63% with CET 1 ratio of 13.74%
`5,012 crores of COVID provisions reclassified to other provisions, not considered for CAR calculation, provides cushion of 41 bps over the reported CAR
Excess SLR of `85,056 crores. Avg. LCR during Q4FY24 was ~120%,

Continue to maintain strong position in Payments and Digital Banking

Largest player in Merchant Acquiring business in India with terminal market share of ~20%, incremental share of ~28% in last one year ²
1.24 million credit cards acquired in Q4FY24, CIF market share of 14% ²
Axis Mobile app is the world's highest ³ rated mobile banking app on Google Play store with ratings of 4.8 and ~14 million MAU
410+ APIs hosted on Bank’s API Developer Portal with 285+ Retail APIs

Declining slippages, gross NPA and credit cost

GNPA at 1.43% declined by 59 bps YOY and 15 bps QOQ, NNPA at 0.31% declined 8 bps YOY and 5 bps QOQ
PCR healthy at 79%, Coverage⁴ ratio at 159%,
Gross slippage ratio (annualized) at 1.48% declined 28 bps YOY and 14 bps QOQ, Net slippage ratio (annualized) at 0.57%
Q4FY24 annualized net credit cost at 0.32%, FY24 net credit cost 0.37% declined 3 bps YOY

Key subsidiaries continue to deliver steady performance

Total FY24 PAT of domestic subsidiaries at `1,591 crs, up 22% YOY; Return on investments of 54% in domestic subsidiaries
Axis Finance FY24 PAT up 28% YOY, ROE at 16.8%, total CAR healthy at 19.2%, asset quality metrics improve with GNPA declining 14 bps YOY to 0.46%
Axis AMC's FY24 PAT at `414 crores, Axis Securities FY24 PAT up 48% YOY
Axis Capital FY24 PAT stood at `150 crores and executed 90 investment banking deals in FY24

IBPC: Inter Bank Participation Certificates
QAB: Quarterly Average Balance
MAU: Monthly Active Users engaging in financial and non-financial transactions
¹ SBB : Small Business Banking
² Based on RBI data as of Mar'24;
³ across 64 global banks, 82 fintechs and 9 neo banks with 2.6 mn+ reviews
⁴ Coverage Ratio = Aggregate provisions (specific + standard + additional + Covid) / IRAC GNPA
* Net organic accretion = capital accreted – capital consumed (excluding consumption for regulatory changes in risk weights)

Key Metrics for Q4FY24

Snapshot (As on March 31^st, 2024) (in ` Crores)

Profit & Loss	Absolute (in ` Crores)			QOQ	YOY Growth
	Q4FY24	Q3FY24	FY24	Q4FY24	Q4FY24	FY24
Net Interest Income	13,089	12,532	49,894	4%	11%	16%
Fee Income	5,637	5,169	20,257	9%	23%	28%
Operating Expenses	9,319	8,946	35,213	4%	27%	30%
Operating Profit	10,536	9,141	37,123	15%	15%	16%
Core Operating Profit	9,515	8,850	35,393	8%	5%	10%
Profit after Tax	7,130	6,071	24,861	17%	-	160%

Balance Sheet	Absolute (in ` Crores)	YOY Growth
	Q4FY24
Total Assets	14,77,209	12%
Net Advances	9,65,068	14%
Total Deposits	10,68,641	13%
Shareholders' Funds	1,50,235	20%

Key Ratios	Absolute (in ` Crores)
	Q4FY24 / FY24	Q4FY23 / FY23 ^(e)
Diluted EPS (Annualised in `)	92.34 / 80.10	(75.53) / 31.02
Book Value per share (in `)	487	406
Standalone ROA (Annualised)	2.00% / 1.83%	(1.83%) / 0.80%
Standalone ROE (Annualised)	20.35% / 18.86%	(19.20%) / 8.47%
Cons ROA (Annualised)	2.07% / 1.84%	(1.68%) / 0.85%
Cons ROE (Annualised)	20.87% / 19.29%	(17.37%) / 9.26%
Gross NPA Ratio	1.43%	2.02%
Net NPA Ratio	0.31%	0.39%
Basel III Tier I CAR	14.20%	14.57%
Basel III Total CAR	16.63%	17.64%

(e) including exceptional Items on account of acquisition of Citibank India Consumer Business ('CICB')

Deposits

13% YOY^(a)

16% YOY^(b)

CASA

3% YOY^(a) | 8% YOY ^(b)

(a) Month end balances (b) Quarterly average balance

Advances

14% YOY^(c)

15% YOY^(d)

Retail

SME

Corporate

20% YOY | 17% YOY | 3% YOY^(c) 7% YOY^(d)

(c) Overall (d) Overall (gross of IBPC sold)

Operating Profit (in ` Crores)

16% YOY

FY24

37,123
FY23

32,048

Profit After Tax (in ` Crores)

160% YOY

FY24

24,861
FY23 ^(e)

9,580

(e) including exceptional Items on account of acquisition of Citibank India Consumer Business ('CICB')

We have a very well distributed branch network;
added 475 branches in FY24 of which 125 in Q4FY24

Domestic Branch Network*

Mar-24

5,377
Mar-23

4,903
Mar-22

4,758
Mar-21

4,594
Mar-20

4,528

* Includes extension counters

Performance at a Glance

Strong operating performance

Q4FY24 Operating revenue up 20% YOY | 10% QOQ
Q4FY24 Consolidated ROE | ROA at 20.87% | 2.07%, subsidiaries contributed 52 bps | 7 bps respectively
FY24 Net Interest Income grew 16% YOY; FY24 fee income grew 28% YOY, operating profit grew 16% YOY

Healthy loan growth delivered across all business segments

Advances (gross of IBPC sold) up 15% | 4%, Rural loans grew 30% | 15% on YOY | QOQ basis
Small Business Banking loans grew 33% YOY & 7% QOQ, Mid-Corporate (MC) book grew 22% YOY
SBB + SME + MC mix at ₹2,08,338 crores | 22% of loans, up ~628 bps in last 3 years

Retail term deposits gaining traction, CASA ratio among the best in the industry

On a QAB¹ basis, RTD grew 16% YOY & 3% QOQ, total deposits grew by 16% YOY & 5% QOQ
Average LCR²outflow rates improved ~ 500 bps over last 2 years

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

Overall capital adequacy ratio (CAR) stood at 16.63% with CET 1 ratio of 13.74%
Net organic accretion to CET-1 of 44 bps in FY24, 3 bps in Q4FY24
`5,012 crores of COVID provisions reclassified to other provisions, not considered for CAR calculation, provides additional cushion of ~41 bps over the reported CAR
Excess SLR of `85,056 crores, Average LCR² during Q4FY24 was ~120%

Continue to maintain strong position in Payments and Digital Banking

Axis Mobile & Axis Pay have ~11 mn non-Axis Bank customers
100+ digital partnerships across platforms and ecosystems; ~20 mn customers on WhatsApp banking
Axis Mobile remains the world's³ highest rated MB app on Google Play store with rating of 4.8; On the iOS app store our ratings increased from 4.7 to 4.8 during the quarter; ~14 mn MAU⁴
Credit card CIF market share at 14%, Retail Card spends grew 51% YOY

Declining slippages, gross NPA and credit cost

PCR healthy at 79%; On an aggregated basis⁵, Coverage ratio at 159%
Gross slippage ratio⁶ at 1.48% declined 28 bps YOY & 14 bps QOQ, Net slippage ratio⁶ at 0.57%
Q4FY24 net credit cost⁶ at 0.32%, FY24 net credit cost at 0.37% declined 3 bps YOY

Key domestic subsidiaries⁷ continue to deliver steady performance

FY24 profit at `1,591 crores up 22% YOY, with a return on investment of 54% in domestic subsidiaries
Axis Finance FY24 PAT grew 28% YOY to `610 crores; asset quality metrics improve, ROE at 16.77%
Axis AMC FY24 PAT stood at `414 crores, Axis Securities FY24 PAT grew 48% YOY to `301 crores
Axis Capital FY24 PAT stood at `150 crores and executed 90 investment banking deals in FY24

¹ QAB – Quarterly Average Balance,
² Liquidity Coverage Ratio,
³ across 64 global banks, 82 fintechs and 9 neo banks with 2.6 mn+ reviews
⁴ Monthly active users, engaging in financial and non-financial transactions,
⁵ (specific+ standard+ additional + COVID)
⁶ Annualized
⁷ Figures of subsidiaries are as per Indian GAAP, as used for consolidated financial statements of the Group

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