• Q2 FY23

  • Quarter-2 Results 2022-23

Major Highlights of

Q2FY23

Q2FY23 PAT at `5,330 crores, up 70% YOY driven by NII growth, NIM expansion, higher fees and flat QOQ operating expenses

Strong operating performance


  • NII grew 31% YOY and 10% QOQ, NIM at 3.96%, improved by 57 bps YOY and 36 bps QOQ
  • Fee income grew 20% YOY and 8% QOQ, granular fee constituted 93% of overall fees, Retail fee grew 28% YOY and 10% QOQ
  • Core operating profit up 43% YOY & 19% QOQ, Operating profit grew 30% YOY & 31% QOQ, Operating expense was flat QOQ
  • PAT at `5,330 crores grew 70% YOY & 29% QOQ
  • Q2FY23 consolidated ROA (annualized) at 1.87%, up 59 bps YOY, with subsidiaries contributing 7 bps

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

  • Overall capital adequacy ratio (CAR) including profit for H1FY23 stood at 17.72% with CET 1 ratio of 15.14%
  • `5,012 crores of COVID provisions not considered for CAR calculation, provides cushion of 55 bps over the reported CAR
  • Self-sustaining capital structure, with capital accretion through profits being sufficient to fund H1FY23 growth
  • Excess SLR of `55,513 crores

Steady growth in granular deposits, improving quality visible

  • Deposits on QAB basis grew by 10% YOY; QAB SA grew 14% YOY and 3% QOQ, QAB CA deposits grew 11% YOY
  • On QAB basis CASA grew 13% YOY and 2% QOQ
  • CASA ratio3 stood at 46%, up 172 bps YOY and 251 bps QOQ
  • Average LCR during Q2FY23 was ~121%, increasing sequentially

Healthy loan growth delivered across focused business segments

  • Domestic net loan book grew 20% YOY and 4% QOQ; Domestic loans (gross of loans sold under IBPC) grew 21% YOY and 5% QOQ
  • Retail loans grew 22% YOY and 3% QOQ, SBB1, Cards and Rural loans portfolio grew 69% YOY, 47% YOY & 46% YOY respectively
  • Within retail segment, Personal loan, SBB and Rural disbursements were up 26%, 33% & 28% YOY
  • SME loans grew 28% YOY, Mid-Corporate (MC) up 49% YOY, SBB+SME+MC mix at `1,435 bn | 20% of loans, up ~542 bps in last 2 years

Continue to maintain strong position in Payments and Digital space

  • 1.04 million credit cards acquired in Q2FY23, incremental spends CIF market share of ~13% in last nine months*
  • 2nd largest player in Merchant Acquiring with terminal market share of 17%, incremental share of 21% in last one year
  • Axis Mobile app is the world's highest4 rated mobile banking app on Google Play store with ratings of 4.8 and 10 million+ MAU
  • 75+ Corporate APIs now live as part of Project Neo

Declining NPAs and slippages, moderating credit costs

  • GNPA at 2.50% declined by 103 bps YOY & 26 bps QOQ, NNPA at 0.51% declined 57 bps YOY & 13 bps QOQ, PCR healthy at 80%
  • Coverage2 ratio at 1.60%, Standard COVID-19 restructuring implemented loans at 0.38% of GCA
  • Gross slippage ratio (annualized) at 1.88%, declined 156 bps YOY and 17 bps QOQ
  • Net slippage ratio (annualized) stood at 0.32%, declined 14 bps YOY and 9 bps QOQ
  • Annualized credit cost for Q2FY23 at 0.38%, declined by 16 bps YOY

Key subsidiaries continue to deliver steady performance

  • Total annualised H1FY23 PAT of domestic subsidiaries at `1,170 crs, up 14% YOY; Return on investments in subsidiaries at 46%
  • Axis Finance H1FY23 PAT grew 53% YOY, ROE at 16.6%, asset quality metrics improve with net NPA declining 88 bps YOY to 0.42%
  • Axis AMC's H1FY23 PAT grew 24% YOY, Quarterly AAUM grew 4% YOY
  • Axis Capital H1FY23 PAT at `64 crores
  • Axis Securities H1FY23 revenue up 9% YOY, PAT at `100 crores

Q2 FY23 Consolidated ROE (annualized) at 18.90%, up 545 bps YOY, with subsidiaries contributing 41 bps

1. SBB : Small Business Banking
2. Coverage Ratio = Aggregate provisions (specific + standard + additional + COVID) / IRAC GNPA
3. Month End Balances
4. Across 59 global banks, 8 global neo banks and 50 Indian fintech apps with 15 lakh+ reviews
QAB: Quarterly Average Balance
MAU: Monthly Active Users
* : Based on RBI data from Nov'21 to Aug'22

Key Metrics

for Q2FY23

Snapshot (As on September 30th, 2022) (in ` Crores)

Profit & Loss Absolute (in ` Crores) QOQ YOY Growth
  Q2FY23 Q1FY23 H1FY23 Q2FY23 Q2FY23 H1FY23
Net Interest Income 10,360 9,384 19,744 10% 31% 26%
Fee Income 3,862 3,576 7,438 8% 20% 26%
Operating Expenses 6,585 6,496 13,081 1% 14% 22%
Operating Profit2 7,716 5,887 13,603 31% 30% 12%
Net Profit 5,330 4,125 9,455 29% 70% 79%
Balance Sheet Absolute (in ` Crores) YOY Growth
  Q2FY23    
Total Assets 11,85,272   13%
Net Advances 7,30,875   18%
Total Deposits^ 8,10,807   10%
Shareholders' Funds 1,24,564   16%

^ period end balances

Key Ratios Absolute (in ` Crores)  
  Q2FY23 / H1FY23 Q2FY22 / H1FY22
Diluted EPS (Annualised in `) (Q2/H1) 68.36 / 61.27 40.42 / 34.34
Book Value per share (in `) 405 349
ROA (Annualised) (Q2/H1) 1.80 / 1.62 1.19 / 1.03
ROE (Annualised) (Q2/H1) 18.49 / 16.80 12.72 / 10.92
Gross NPA Ratio 2.50% 3.53%
Net NPA Ratio 0.51% 1.08%
Basel III Tier I CAR* 15.75% 17.54%
Basel III Total CAR* 17.72% 20.04%

* including profit for H1FY23

Deposits# 10% YOY
CASA#

13% YOY (QAB#) | 14% YOY (End Balance)

#QAB - Quarterly Average Balance

Advances 18% YOY   19% YOY1
Retail
SME
Corporate

22% YOY | 28% YOY | 7% YOY     11% YOY1

1 gross of loans sold under IBPC

Operating Profit
(in ` Crores) 30% YOY     43% YOY
  • Q2FY23
    7,802
  •  
    7,716
  • Q2FY22
    5,456
  •  
    5,928
 
Core OP
OP
Profit After Tax
(in ` Crores) 70% YOY
  • Q2FY23
    5,330
  • Q2FY22
    3,133

 

Performance at a Glance

SStrong operating performance, net profit grew 70% YOY and 29% QOQ to `5,330 crores

  • NIM at 3.96%, improved by 57 bps YOY and 36 bps QOQ, NII grew 31% YOY and 10% QOQ
  • Fee income grew 20% YOY & 8% QOQ, Retail fee grew 28% YOY & 10% QOQ, Retail cards fee up 53% YOY
  • Core operating profit grew 43% YOY and 19% QOQ, Operating profit grew 30% YOY and 31% QOQ
  • Operating expense flat QOQ
  • Q2FY23 Consolidated ROE (annualized) at 18.90%, up 545 bps YOY, subsidiaries contribute 41 bps

Healthy loan growth delivered across focused business segments

  • Retail loans grew 22% YOY and 3% QOQ, SBB and Rural loans grew 69% YOY and 46% YOY respectively
  • SME loans grew 28% YOY and 7% QOQ, Domestic Corporate loans grew 9%YOY and 7% QOQ
  • Mid-Corporate (MC) book up 49% YOY and 9% QOQ
  • SME + SBB + MC mix at `1,43,465 crores | 20% of loans, up ~542 bps in last 2 years

Steady growth in granular deposits, early visibility of improving quality

  • On QAB1 basis, SA grew 14% YOY and 3% QOQ, CA grew 11% YOY
  • On QAB basis, total deposits grew 10% YOY
  • Average LCR2 during Q2FY23 was ~121%, increasing sequentially

Well capitalized with adequate liquidity buffers

  • Overall capital adequacy ratio (CAR) including profit for H1FY23 stood at 17.72% with CET 1 ratio of 15.14%
  • COVID provisions of `5,012 crores, not in CAR calculation provides additional cushion of 55 bps
  • Self-sustaining capital structure, with capital accretion through profits being sufficient to fund H1FY23 growth

Retaining strong position in Payments and Digital Banking

  • 16% market share in UPI transactions and 18% in UPI P2M acquiring (by throughput)
  • Mobile banking market share stood at 15%, Axis Mobile & Axis Pay have ~6.2 mn non-Axis Bank customers
  • 85+ digital partnerships across platforms and ecosystems; ~6.9 mn customers on WhatsApp banking
  • 75+ Corporate APIs now live as part of Project Neo

Declining NPA's and slippages, moderating credit costs, low restructured book

  • GNPA at 2.50% declined by 103 bps YOY & 26 bps QOQ, NNPA at 0.51% declined 57 bps YOY & 13 bps QOQ
  • PCR healthy at 80%; On an aggregated basis3, Coverage ratio at 1.60%
  • Annualized, gross slippage ratio declined 156 bps YOY & 17 bps QOQ, net slippage ratio at 0.32%, down 14 bps YOY
  • Annualized credit cost for Q2FY23 at 0.38%, declined by 16 bps YOY and 3 bps QOQ

Bank's domestic subsidiaries continue to deliver steady performance; annualized profit4 at `1,170 crores

  • Axis Finance H1FY23 PAT grew 53% YOY to `210 crores; asset quality remains stable, with near zero restructuring
  • Axis AMC H1FY23 PAT grew 24% YOY to `183 crores, Quarterly AAUM grew 4% YOY
  • Axis Capital H1FY23 PAT stood at `64 crores
  • Axis Securities H1FY23 PAT at `100 crores

1 QAB – Quarterly Average Balance
2 Liquidity Coverage Ratio
3 (specific+ standard+ additional + COVID)
4 Figures of subsidiaries are as per Indian GAAP, as used for consolidated financial statements of the Group

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