• Q2 FY25
  • Quarter-2 Results 2024-25

Major Highlights of

Q2FY25

Operating profit up 24% YOY, PAT up 18% YOY, Consolidated ROA at 1.92% up 9 bps YOY, Consolidated ROE at 18.1%; aided by steady growth in deposits and advances

Healthy operating performance

  • Operating profit grew 24% YOY and 6% QOQ, Operating revenue up 16% YOY and 5% QOQ, Operating expense growth moderates to 9% YOY
  • Net Interest Income grew 9% YOY, Net Interest Margin at 3.99%
  • Fee income grew 11% YOY and 6% QOQ, granular fee constituted 92% of overall fees, Retail fee grew 11% YOY and 5% QOQ
  • Standalone ROA | ROE on annualized basis at 1.84% | 17.6%, improved sequentially by 19 bps and 132 bps, respectively

Steady growth in deposits, CASA ratio continues to be amongst the best

  • On MEB basis, total deposits grew 14% YOY and 2% QOQ, term deposits grew 21% YOY and 4% QOQ, SA grew 2% YOY and 1% QOQ, CA grew 8% YOY
  • On QAB basis, total deposits grew 14% | 1%; term deposits grew 21% | 2% on YOY | QOQ basis, respectively. CA grew 13% YOY, SA grew 1% YOY
  • CASA ratio on MEB basis stood at ~41%, which continues to be the best amongst large peer banks

Loan growth delivered across focus business segments

  • Advances grew 11% YOY and 2% QOQ; Gross of IBPC, loan book grew 12% YOY and 2% QOQ; Bank’s focus segments* grew by 20% YOY and 4% QOQ
  • Retail loans grew 15% YOY and 2% QOQ of which Rural loans grew 20% YOY & 1% QOQ, SBB1 book grew 23% YOY and 6% QOQ
  • SME loans up 16% YOY and 6% QOQ, Corporate loans (gross of IBPC sold) up 6% YOY, Mid-Corporate (MC) up 18% YOY & 5% QOQ
  • SBB+SME+MC mix at `2,221 bn | 22% of total loans, up ~800 bps in last 4 years

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

  • Self sustaining capital structure with net accretion^ to CET-1 of 38 bps in H1FY25 and 6 bps in Q2FY25
  • Overall capital adequacy ratio (CAR) stood at 16.61% with CET 1 ratio of 14.12%
  • `5,012 crores of other provisions, not considered for CAR calculation, provides cushion of 38 bps over the reported CAR
  • Excess SLR of `76,769 crores. Avg. LCR during Q2FY25 was ~115%

Continue to maintain strong position in Payments and Digital Banking

  • Bank achieves no. 1 position in UPI Payer PSP space with a market share of ~31%
  • Largest player in Merchant Acquiring business in India with terminal market share of ~20%, incremental share of ~36% in last one year2
  • ~1.06 million credit cards acquired in Q2FY25, CIF market share of ~14%2
  • 'open' by Axis Bank is among the top rated mobile banking apps on Google Play with ratings of 4.7 and ~15 million MAU

Asset quality stable, added prudently to non NPA provisions in the quarter

  • GNPA at 1.44% declined by 29 bps YOY and 10 bps QOQ, NNPA at 0.34% declined 2 bps YOY, flat QOQ
  • PCR healthy at 77%, Coverage3 ratio at 153%,
  • Gross slippage ratio (annualized) at 1.78% declined 19 bps QOQ, Net slippage ratio (annualized) at 0.96% declined 41 bps QOQ
  • Annualized net credit cost at 0.54% declined 43 bps QOQ

Key subsidiaries delivered strong performance

  • Total H1FY25 PAT of domestic subsidiaries at `927 crores, up 35% YOY; Return on investments of 58% in domestic subsidiaries
  • Axis Finance H1FY25 PAT at `327 crores up 24% YOY, ROE at 15.79% for Q2FY25, stable asset quality metrics with net NPA at 0.25%
  • Axis AMC’s H1FY25 PAT at `244 crores up 29% YOY, Axis Securities H1FY25 PAT at `272 crores up 139% YOY
  • Axis Capital H1FY25 PAT at `87 crores up 29% YOY and executed 30 ECM deals in H1FY25

*Bank’s focus segments include Small Business Banking (SBB), Small & Medium Enterprises, (SME), Mid Corporate, Rural, Personal Loans (PL) and Credit Card Advances
QAB: Quarterly Average Balance;
MEB: Month End Balance;
MAU: Monthly Active Users engaging in financial & non-financial transactions;
1 SBB : Small Business Banking;
2 Based on RBI data as of Aug’24;
3 Coverage Ratio = Aggregate provisions (specific + standard + additional + other contingencies) / IRAC GNPA;
^ Net accretion = capital accreted – capital consumed during the quarter

Key Metrics for Q2FY25

Snapshot (As on September 30th, 2024) (in ` Crores)

Profit & Loss Absolute (in ` Crores) QOQ YOY Growth
  Q2FY25 Q1FY25 H1FY25 Q2FY25 Q2FY25 H1FY25
Net Interest Income 13,483 13,448 26,931 0.3% 9% 11%
Fee Income 5,508 5,204 10,711 6% 11% 13%
Operating Expenses 9,493 9,125 18,618 4% 9% 10%
Operating Profit 10,712 10,106 20,819 6% 24% 19%
Core Operating Profit 9,601 9,637 19,238 (0.4%) 10% 13%
Profit after Tax 6,918 6,035 12,952 15% 18% 11%
Balance Sheet Absolute (in ` Crores) YOY Growth
  Q2FY25  
Total Assets 15,05,658 12%
Net Advances 9,99,979 11%
Total Deposits 10,86,744 14%
Shareholders' Funds 1,64,688 20%

 

Key Ratios Absolute (in ` Crores)  
  Q2FY25 / H1FY25 Q2FY24 / H1FY24
Diluted EPS (Annualised in `) (Q2/H1) 88.20 / 83.04 75.28 / 75.28
Book Value per share (in `) 532 444
Standalone ROA (Annualised %) 1.84 / 1.75 1.76 / 1.78
Standalone ROE (Annualised %) 17.58 / 16.97 18.30 / 18.72
Cons ROA (Annualised %) 1.92 / 1.80 1.83 / 1.81
Cons ROE (Annualised %) 18.08 / 17.43 18.67 / 19.04
Gross NPA Ratio 1.44% 1.73%
Net NPA Ratio 0.34% 0.36%
Basel III Tier I CAR(e) 14.54% 15.08%
Basel III Total CAR(e) 16.61% 17.84%

(e) including profit after tax for H1

Deposits 14% YOY (a)   14% YOY (b)
CASA

4% YOY (a) | 5% YOY (b)

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

Advances 11% YOY (c)   11% YOY (d)
Retail
SME
Corporate

15% YOY | 16% YOY | 3% YOY (c) 1% YOY (d)

(c) Overall   (d) Domestic book

Operating Profit
(in ` Crores) 24% YOY   6% QOQ
  • Q2FY25
    10,712
  • Q2FY24
    8,632
Profit After Tax
(in ` Crores) 18% YOY   15% QOQ
  • Q2FY25
    6,918
  • Q2FY24
    5,864

 

We have a very well distributed branch network;
added 150 branches in Q2 FY25

Domestic Branch Network*  
  • Sep-24
    5,577
  • Mar-24
    5,377
  • Mar-23
    4,903
  • Mar-22
    4,758
  • Mar-21
    4,594

* Includes extension counters

Performance at a Glance

Performance at a Glance

Healthy operating performance

  • Operating profit up 24%YOY and 6% QOQ | Operating revenue up 16% YOY and 5% QOQ
  • Operating cost growth moderated to 9% YOY

Steady growth in deposits, CASA continues to be the best amongst large peer banks

  • On QAB1 basis, term deposits grew 21% YOY, CA grew 13% YOY, SA grew 1% YOY
  • Average LCR2 during Q2FY25 was ~115%

Loan growth delivered across focus business segment

  • Advances (gross of IBPC) up 12% YOY and 2% QOQ, Retail loans grew 15% YOY and 2% QOQ
  • Small Business Banking loans grew 23% | 6%, Mid-Corporate (MC) book grew 18% | 5% on YOY | QOQ basis
  • SBB + SME + MC mix at `2,22,080 crores | 22.2% of loans, up ~800 bps in last 4 years

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

  • Overall capital adequacy ratio (CAR) stood at 16.61% with CET 1 ratio of 14.12%
  • `5,012 crores of other provisions, not considered for CAR calculation, provides additional cushion of ~38 bps over the reported CAR
  • Excess SLR of  `76,769 crores.

Continue to maintain strong position in Payments and Digital Banking

  • open by Axis Bank remains among the world’s top rated3 MB app on Google Play store and iOS app store with rating of 4.7 and 4.8 respectively; ~15 mn MAU4
  • open by Axis Bank & Axis Pay have ~13 mn non-Axis Bank customers
  • ~26.9 mn customers on WhatsApp banking
  • Credit card CIF market share at 14%, Retail Card spends grew 15% YOY

Asset quality stable, added prudently to non NPA provisions in the quarter

  • Q2FY25 net credit cost5 at 0.54%, down 43 bps sequentially
  • Q2FY25 Gross slippage ratio5 at 1.78% declined 19 bps QOQ, Net slippage ratio5 at 0.96% declined 41 bps QOQ
  • PCR healthy at 77%; On an aggregated basis6, Coverage ratio at 153%

Key domestic subsidiaries7 delivered strong performance

  • H1FY25 profit at `927 crores up 35% YOY, with a return on investment in domestic subsidiaries of ~58%
  • Axis Finance H1FY25 PAT grew 24% YOY to `327 crores; asset quality metrics stable, ROE at 15.79% for Q2FY25
  • Axis AMC H1FY25 PAT grew 29% YOY to `244 crores
  • Axis Securities H1FY25 PAT grew 139% YOY to `272 crores
  • Axis Capital H1FY25 PAT grew 29% YOY to `87 crores and executed 30 ECM deals in H1FY25

1 QAB – Quarterly Average Balance,
2 Liquidity Coverage Ratio
3 with 2.9 mn+ reviews
4 Monthly active users, engaging in financial and non-financial transactions,
5 Annualized
6 (specific+ standard+ additional + other contingencies) / IRAC GNPA
7 Figures of subsidiaries are as per Indian GAAP, as used for consolidated financial statements of the Group

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