AXIS BANK - RESULTS FOR Q2 & H1 OF FY2012 = NET PROFIT UP 25%YOY = EPS UP 25% YOY

AXIS BANK

FINANCIAL RESULTS

FOR QUARTER / HALF YEAR ENDING SEP,2011

Results at a Glance

 Net Profit during Q2FY12 rose to Rs.920 crores from Rs.735 crores in Q2FY11, registering a growth of 25% YOY.

 Net Profit for H1FY12 stood at Rs.1,863 crores, up by 26% from Rs.1,477 crores for H1FY11.

 Demand Deposits grew by 26% YOY to Rs.82,140 crores during Q2FY12 from Rs.65,186 crores during Q2FY11 - with Savings Bank deposits growing by 24% YOY and Current Account deposits by 29%.

 CASA ratio as a result moved up to account for 42% of aggregate deposits.

 The YOY growth in Net Interest Income and Fee Income during Q2FY12 was 24% and 32% respectively.

 Net Interest Margin during Q2FY12 was 3.78% compared to 3.68% in Q2FY11.

 Capital Adequacy Ratio is 11.35% (without reckoning H1FY12 profit, as stipulated by RBI) as at the end of H1FY12 compared to 13.68% as at the end of H1FY11 and 12.53% at the end of Q1FY12.

 Tier-I capital was 8.48% as at the end of H1FY12, as against 9.77% at the end of H1FY11 and 9.36% at the end of Q1FY12.

 Capital Adequacy including H1FY12 profits would have been 12.20% with Tier-I capital ratio of 9.33%.

Financial Highlights

NETWORK : At the end of Q2FY12, Axis Bank had a network of 1,446 domestic branches and extension counters, and 7,594 ATMs situated in 953 cities and towns. During the quarter, the Bank added 35 branches and 723 ATMs.

The daily average balances of Savings Bank deposits during the quarter grew 19.90% YOY and those of Current Account deposits grew 18.86% YOY.

Demand deposits constituted 38.28% of the aggregate daily average deposits during Q2FY12, as against 39.06% in Q2FY11.

CASA : At the end of the quarter, Current Account and Savings Bank deposits together accounted for 42.24% of the total deposits of the Bank.

NIM :The Bank posted a NIM of 3.78% during Q2FY12, compared to 3.68% during Q2FY11 and 3.28% during Q1FY12.

The sequential uptick in NIM during Q2FY12 was driven by stronger build-up in CASA deposits, stable funding rates and a pick-up in loan yields.

Advances grew 26.68% YOY, from Rs.1,10,588 crores as on 30th September 2010 to Rs.1,40,089 crores as on 30th September 2011 while investments rose to Rs.85,016 crores from Rs.61,942 crores over the same period, registering a growth of 37.25% YOY.

NII rose 24.28% YOY to Rs.2007 crores during Q2FY12 from Rs.1,615 crores during Q2FY11.

Fee income registered a growth of 32.08% YOY, rising to Rs.1,121 crores during Q2FY12 compared to Rs.849 crores in Q2FY11, with contributions from all the major businesses in the Bank. Fee income from Large and Mid Corporate Credit (including Infrastructure) grew 27.47% YOY, Retail banking fees grew 38.55% YOY, Treasury and Debt Capital Markets fees grew 48.36% YOY and Agri & SME Banking fees grew 33.05% YOY. Fees in Business Banking grew 5.07% YOY. Fee income from Equity Capital Markets (including Trusteeship Services) contracted 2.11% YOY. Compared to `1,592 crores during H1FY11, fee income during H1FY12 stood at `2,178 crores, up by 36.82% YOY.

Trading Profits : The Bank generated Rs.28 crores of trading profits during Q2FY12, as compared to Rs.108 crores during Q2FY11, a decline of 74.49% YOY. The share of trading profits to operating revenue was 0.85% in Q2FY12, compared to 4.09% in Q2FY11.

NPAs and Restructured Assets : Net NPAs, as a proportion of net customer assets, was 0.34% as on 30th September 2011 - at the same level as on 30th September 2010 and marginally higher than 0.31% as on 30th June 2011. Gross NPAs as a proportion of gross customer assets stood at 1.08% as on 30th September 2011, compared to 1.12% as on 30th September 2010 and 1.06% as on 30th June 2011. Provision coverage is 77.69% as on 30th September 2011 (as a proportion of Gross NPAs including prudential write-offs). The provision coverage (as a proportion of Gross NPAs) before accumulated write-offs was 89.29%.

During the quarter, the Bank added Rs.496 crores to Gross NPAs. Recoveries and upgradations of Rs.163 crores and write-offs of Rs.162 crores during the quarter resulted in a closing position of Rs.1,744 crores of Gross NPAs on 30th September 2011, as against Rs.1,362 crores at the end of September 2010.

The Bank restructured loans aggregating Rs.311 crores during Q2FY12. The cumulative value of assets restructured till 30th September 2011, rose to Rs.2,410 crores (1.49% of gross customer assets). 72.37% of these loans were restructured upto Q2FY11 and were more than a year old.

Placement / Syndication : The Bank arranged debt aggregating `31,666 crores during Q2FY12 rising 18.32% over Q2FY11. The Bank was assessed by Prime Database as the No.1 Debt Arranger for FY11 and also by Bloomberg for the quarter ended June 2011. The Bank was also recognised as the “Best Domestic Debt House – India; 2011” by Asia Money, “Best Debt House - India; 2011” by Euromoney and “Best Bond House - India; 2011” by Finance Asia.

 

Retail Business : The number of Savings Bank accounts grew from 86.92 lacs as on 30th September 2010 to 106.43 lacs as on 30th September 2011. Retail advances grew from Rs.20,997 crores as on 30th September 2010 to Rs.29,328 crores as on 30th September 2011, a growth of 39.68% YOY. Retail Advances accounted for 20.94% of the total advances of the Bank as on 30th September 2011. The Bank's International Debit Card issuance has risen to 110 lac debit cards as on 30th September 2011, as compared to 90.57 lac debit cards in force as on 30th September 2010. The Bank had over 6.82 lac credit cards in force as on 30th September 2011. The Bank offers personal investment products including life insurance products, general insurance products, online trading accounts and mutual funds of leading manufacturers as also wealth advisory services and Mohur - gold coins and bars - through select branches.

 

International Business : The Bank has six international offices - branches at Singapore, Hong Kong, Dubai (at the DIFC) and representative offices at Shanghai, Dubai and Abu Dhabi which focus on corporate lending, trade finance, syndication, investment banking, risk management and liability businesses. Total assets under overseas operations were USD 5.24 billion as on 30th September 2011, as compared to USD 3.79 billion as on 30th September 2010, a growth of 38.26%. The Bank has opened a branch at Colombo now to carry out domestic banking business in Sri Lankan Rupees as well as off-shore banking business in foreign currency.

Capital and Shareholders’ Funds : The Shareholders’ Funds of the Bank were Rs.20,989 crores as on 30th September 2011, compared to Rs.17,682 crores as on 30th September 2010, a growth of 18.70% YOY.

FINANCIALS (Rs. in crore)

     :: Q2FY12:: Q2FY11 :: %Growth:: 


Net Profit :: 920.32 :: 735.14 :: 25.19%:: 


EPS Diluted (Rs.) 22.13 :: 17.72 :: 24.89% ::


Net Interest Income :: 2,007.26 :: 1,615.10 :: 24.28% ::


Other Income :: 1,234.92 :: 1,033.24 :: 19.52% ::


Operating Revenue :: 3,242.18 :: 2,648.34 :: 22.42% ::


Core Operating Revenue*:: 3,214.53 :: 2,539.94 :: 26.56% ::


Operating Exps (incl. dep):: 1,466.54 :: 1,161.99 :: 26.21%


Operating Profit :: 1,775.64 :: 1,486.35 :: 19.46%



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