Sunday, December 18, 2011

AXIS BANK=RESULTS FOR Q2 FY 2012 = QTR ENDING SEP,2011 = NET PROFIT UP BY 25.19% YOY


AXIS BANK

RESULTS REVIEW FOR
2nd QTR ENDING SEP, 2011

AXIS BANK is one of the Fastest Growing Large Private Banks in the country. It has performed well in the 2nd quarter ending Sep,2011.

The  Q2 FY12 NET PROFIT  is Rs.920.32 CR., UP BY 25.19% YOY, and H1 FY12 Net Profit is Rs.1,862.67 CR, UP BY 26.11% YOY

Financial Highlights

Net Interest Income (NII) and Net Interest Margin (NIM)

Axis Bank, at the end of Q2FY12, has 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. At the end of the quarter, Current Account and Savings Bank deposits together accounted for 42.24% of the total deposits of the Bank.

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 cr as on 30th September 2010 to Rs.1,40,089 cr as on 30th September 2011.

Investments rose to Rs.85,016 cr from Rs.61,942 crs over the same period, registering a growth of 37.25% YOY. 

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

Fee Income

Fee income registered a growth of 32.08% YOY, rising to Rs.1,121 cr during Q2FY12 compared to Rs.849 cr in Q2FY11. 

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, 0.34% as on 30th September 2011 were 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 was 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 cr 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.

Restructured loans aggregate to 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.

Investment Portfolio

The book value of the Bank’s investment portfolio as on 30th September 2011 was Rs.85,016 crores, of which, Rs.53,971 crores related to government securities while Rs.31,045 crores were invested in other securities such as corporate bonds, equities, preference shares, mutual funds etc. 

Placement / Syndication
                 
The Bank arranged debt aggregating Rs.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 S.B 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.

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.

Capital Adequacy Ratio (CAR) for the Bank was 11.35%, as on 30th September 2011, compared to 13.68% as on 30th September 2010. As we can see from the tables below : 

Operating Profit has grown by 13.93% QOQ and 19.46% YOY.

Provisions have grown considerably by 130.65% QOQ and  7.08% YOY.

Net Profit has grown to Rs.920.32 cr – by 25.19% YOY – but is still a reduction of (-)2.34% QOQ.

Basic EPS       is Rs.22.33 (22.92 in Q1) compared to Rs.18.01 in Q2 FY 11, an increase of     23.99% YOY.

Return on Assets is quite Healthy at 1.52%.

% of Gross/Net NPA is also very Healthy at 0.34%.

PE RATIO : The Annualised EPS can be around Rs.90. At current Market Price of Rs.854 (52 week high price :Rs.1460.45; 52 week low price : Rs.851.50), the Price Earnings Ratio works out to just 9.49, which is very LOW – for such a star scrip. In a normal market, Axis Bank can go much beyond its 52 week High Price.
FINANCIAL PERFORMANCE

AXIS BANK
30-Sep-11
30-Jun-11
%Growth
30-Sep-10
%Growth
Interest on Advances
368782
347010
6.27
242903
51.82
Income on Investments
154864
133284
16.19
112354
37.84
Income on Balances With RBI
1117
4791
-76.69
3837
-70.89
Others
2834
3055
-7.23
3331
-14.92
Interest Earned
527597
488140
8.08
362425
45.57
Other Income
123492
116787
5.74
103324
19.52
Total Income
651089
604927
7.63
465749
39.79
Interest Expended
326871
315730
3.53
200915
62.69
Employees Cost
49862
50996
-2.22
40530
23.02
Other Operating Expenses
96792
82353
17.53
75669
27.91
Operating Expenses
146654
133349
9.98
116199
26.21
Total Expenditure
473525
449079
5.44
317114
49.32
Operating Profit
177564
155848
13.93
148635
19.46
Provisions
40558
17584
130.65
37876
7.08
Profit before tax
137006
138264
-0.91
110759
23.7
Tax Expense
44974
44029
2.15
37245
20.75
Net Profit
92032
94235
-2.34
73514
25.19
Face Value of Share (in Rs.)
10
10
0
10
0
Paid-up Equity
41233
41188
0.11
40884
0.85
CAR
11.35
12.53
-9.42
13.68
-17.03
Basic EPS
22.33
22.92
-2.57
18.01
23.99
Diluted EPS
22.13
22.67
-2.38
17.72
24.89
% of Gross/Net NPA
0.34
0.31
9.68
0.34
0
Return on Assets
1.52
1.61
-5.59
1.5
1.33



Snapshot for the period ended 30th September 2011
Total Assets (1)
`2,506.11 billion

Net Loans (1)
`1,400.89 billion

Total Deposits (1)
`1,944.55 billion

Net Worth as on 30.09.2011(1)
`200.74 billion

ROE
19.47%
ROA
1.57%
Saving bank accounts
10.64 million
Branches and Extension Counters
1,446
Foreign Offices
6

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