Friday, January 20, 2012

AXIS BANK = RESULTS = FOR Q3 FY 2012 = Q/E DEC 2011 = YoY, TOTAL INCOME UP 45%; NII UP 23.5%; NPT UP 24% ; ROA At 1.68;Annual EPS nearing Rs.100



Axis Bank Limited
NSE Symbol       AXISBANK

AXIS BANK has declared another set of ROBUST RESULTS for the 3rd qtr ending Dec,2011.

Interest on Advances stands at Rs.3963.56 Cr  in Q3 FY 12 – compared to Rs.3687.82 cr in Q2 FY 12(up by 7.48%) and Rs.2600.55 cr in Q3 FY11 (Up by 52.41%).

Income on Investments stands at Rs.1775.23 Cr in Q3 FY 12 – compared to Rs.1548.64 cr in Q2 FY 12 (Up by 14.63%) and Rs.1166.83 cr in Q3 FY 11 (Up by 52.14%).

Interest Earned stands at Rs.5776.96 Cr  in Q3 FY 12 -         compared to Rs.5275.97 Cr in Q2 FY 12 (Up by 9.5%) and Rs.3838.31 Cr in Q3 FY 11 (Up by a huge 50.51%).

Other Income stands at Rs.1429.81 Cr in Q3 FY 12 – compared to Rs.1234.92 Cr  in Q2 FY 12 (Up by 15.78%) ; and Rs.1147.71 Cr in Q3 FY 11 (Up by 24.58%).

Total Income       stands at Rs.7206.77 Cr in Q3 FY 12 – compared to Rs.6510.89 cr in Q2 FY 12 (Up by 10.69%) ; and Rs.4986.02 Cr in Q3 FY 11 (Up by 44.54%).

Interest Expended       stands at  Rs.3636.66 cr in Q3 FY 12  - compared to Rs.3268.71 Cr in Q2 FY 12 (Up by 11.26%); and Rs.2105.19 cr in Q3 FY 11 (Up by 72.75%).

Net Interest Income    stands at Rs.2140.30 Cr in Q3 FY 12 – compared to Rs.2007.26 Cr in Q2 FY 12 (Up by 6.63%); and Rs.1733.12 cr in Q3 FY11 (Up by 23.49%)

Total Expdr excl provisions stands at Rs.5147.57 cr in Q3 FY 12 – compared to Rs.4735.25 cr in Q2 FY 12 (Up by 8.71%); and Rs.3327.54 Cr in Q3 FY 11 (Up by 54.7%).

Operating Profit stands  at Rs.2059.20 Cr in Q3 FY 12 – compared to Rs.1775.64 Cr in Q2 FY 12 (Up by 15.97%) ; and Rs.1658.48 Cr in Q3 FY 11 (Up by 24.16%).

Provisions has increased slightly in Q3 FY 12 to Rs.422.33 cr – compared to Rs.405.58 Cr in Q2 FY 12 (Up by 4.13%) ; and Rs.313.88 cr in Q3 FY 11 (Up by 34.55%).

Profit  before tax stands at Rs.1636.87 cr in Q3 FY 12 – compared to Rs.1370.06 Cr in Q2 FY 12 (Up by 19.47%) ; and Rs.1344.60 Cr in Q3 FY 11 (Up by 21.74%).

Tax Expense stands at Rs.534.60 cr in Q3 FY 12 – compared to Rs.449.74 cr in Q2 FY 12 (Up by 18.87%); and  Rs.453.24 cr in Q3 FY 11 (Up by 17.95%).

Net Profit stands at Rs.1102.27 Cr in Q3 FY 12 – compared to Rs.920.32 Cr in Q@ FY 12 (Up by 19.77%); and Rs.891.36 Cr in Q3 FY 11 (Up by 23.66%).

Capital Adequacy Ratio stands at  11.78% and is comfortable. Axis bank seems to be in the process of raising additional funds presently.

% of Gross/Net NPA    is very comfortable at 0.39 –compared to 0.34 in previous qtr and 0.29 in corresponding Qtr.

Return on Assets is very Good at  1.68.

On a Face Value of Rs.10 - Basic EPS stands at Rs.26.73 in Q3 FY 12; Rs.22.33 in Q2 FY 12; Rs.22.92 in Q1 FY 12; Rs.24.87 in Q4 FY 11; and Rs.21.77 in Q3 FY 11.

At this Rate, the total annual EPS may be around Rs.99.

Current Market Price is Rs.1018; and the 52 week high price is Rs.1460.45 and the 52 week low price  is Rs.784.
The PE Ratio is very LOW at 10.28

The Last 5 Quarters Results are given below in the table. Clearly, Axis Bank has been improving consistently in these and the earlier quarters as well. While its peer, HDFC Bank may be scoring faster in some of the quarters, and thus meriting a slightly higher valuation, Axis Bank certainly justifies a much better market valuation that at present.Its performance and Growth are very consistent and Robust.

RESULTS TABLE

AXIS BANK
31-Dec-11
30-Sep-11
%dif1
30-Jun-11
31-Mar-11
31-Dec-10
%dif2
Interest on Advances
396356
368782
7.48
347010
306264
260055
52.41
Income on Investments
177523
154864
14.63
133284
121306
116683
52.14
Income on Balances With RBI
1547
1117
38.5
4791
6359
4818
-67.89
Others
2270
2834
-19.9
3055
2737
2275
-0.22
Interest Earned
577696
527597
9.5
488140
436666
383831
50.51
Other Income
142981
123492
15.78
116787
145040
114771
24.58
Total Income
720677
651089
10.69
604927
581706
498602
44.54
Interest Expended
363666
326871
11.26
315730
266566
210519
72.75
Employees Cost
54204
49862
8.71
50996
39602
39616
36.82
Other Oprtng Expenses
96887
96792
0.1
82353
93457
82619
17.27
Oprtng Expenses
151091
146654
3.03
133349
133059
122235
23.61
Total Expdr excl provi.
514757
473525
8.71
449079
399625
332754
54.7
Operating Profit
205920
177564
15.97
155848
182081
165848
24.16
Provisions
42233
40558
4.13
17584
25439
31388
34.55
Profit  before tax
163687
137006
19.47
138264
156642
134460
21.74
Tax Expense
53460
44974
18.87
44029
54631
45324
17.95
Net Profit
110227
92032
19.77
94235
102011
89136
23.66
Face Value(Rs.)
10
10
0
10
10
10
0
Paid-up Equity
41257
41233
0.06
41188
41055
40990
0.65
Capital Adequacy Ratio
11.78
11.35
3.79
12.53
12.65
12.46
-5.46
Basic EPS
26.73
22.33
19.7
22.92
24.87
21.77
22.78
Diluted EPS
26.53
22.13
19.88
22.67
24.54
21.44
23.74
 Gross/Net NPA
68293
54877
24.45
46247
41035
38554
77.14
% of Gross/Net NPA
0.39
0.34
14.71
0.31
0.26
0.29
34.48
Return on Assets
1.68
1.52
10.53
1.61
1.81
1.75
-4
Public holding (%)
53.63
52.07
3
52.87
53.6
53.63
0



PRESS RELEASE – 20th January, 2012

Ø  AXIS BANK ANNOUNCES Q3FY12 NET PROFIT OF Rs.1,102 CRORES, UP BY 23.66% YOY

Ø  AND 9MFY12 NET PROFIT OF Rs.2,965 CRORES, UP BY 25.19% YOY

Results at a Glance
                Net Profit during Q3FY12 rose to Rs.1,102 crores from Rs.891 crores in Q3FY11, registering a growth of 24% YOY. Net Profit for 9MFY12 stood at Rs.2,965 crores, up by 25% from Rs.2,368 crores for 9MFY11.

                Demand Deposits grew by 32% YOY to Rs.86,756 crores during Q3FY12 from Rs.65,931 crores during Q3FY11, with Savings Bank deposits growing by 21% YOY and Current Account deposits by 47%. 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 Q3FY12 was 23% and 26% respectively. Net Interest Margin during Q3FY12 was 3.75% compared to 3.81% in Q3FY11 and 3.78% in Q2FY11.

                The Bank is well-capitalised with a Capital Adequacy Ratio of 11.78% (without reckoning 9MFY12 profit, as stipulated by Reserve Bank of India) as at the end of 9MFY12 compared to 12.46% as at the end of 9MFY11 and 11.35% at the end of Q2FY12. Tier-I capital was 8.25% as at the end of 9MFY12, as against 8.86% at the end of 9MFY11 and 8.48% at the end of Q2FY12. Capital Adequacy including 9MFY12 profits would have been 13.11% with Tier-I capital ratio of 9.58%.

Financial Highlights
                         
At the end of Q3FY12, Axis has a network of 1,493 domestic branches and extension counters and 8,324 ATMs situated in 971 cities and towns.  

During the quarter, the Bank added 47 branches and 730 ATMs.

The daily average balances of Savings Bank deposits during the quarter grew 19% YOY and those of Current Account deposits grew 4% YOY.

Demand deposits constituted 37% of the aggregate daily average deposits during Q3FY12, as against 38% in the previous quarter. At the end of the quarter, Current Account and Savings Bank deposits together accounted for 42% of the total deposits of the Bank.

The Bank posted a NIM of 3.75% during Q3FY12, compared to 3.81% during Q3FY11 and 3.78% during Q2FY12.
The Banks advances grew 20% YOY from Rs.1,23,533 crores as on 31st December 2010 to Rs.1,48,739 crores as on 31st December 2011 while investments rose to `90,263 crores from `59,623 crores over the same period, registering a growth of 51% YOY. The NII rose 23% YOY to Rs.2,140 crores during Q3FY12 from Rs.1,733 crores during Q3FY11.

 Fee Income

Fee income registered a growth of 26% YOY, rising to Rs.1,223 crores during Q3FY12 compared to Rs.968 crores in Q3FY11, with contributions from all the major businesses in the Bank. Fee income from Large and Mid Corporate Credit (including Infrastructure) grew 34% YOY, Retail banking fees grew 26% YOY, Treasury and Debt Capital Markets fees grew 25% YOY and Agriculture & SME Banking fees grew 13% YOY. Fees in Business Banking grew 15% YOY. Fee income from Equity Capital Markets (including Trusteeship Services) contracted 12% YOY. Compared to Rs.2,559 crores during 9MFY11, fee income during 9MFY12 stood at Rs.3,400 crores, up by 33% YOY.

Trading Profits

The Bank generated Rs.118 crores of trading profits during Q3FY12, as compared to Rs.135 crores during Q3FY11, a decline of 13% YOY. The share of trading profits to operating revenue was 3% in Q3FY12, compared to 5% in Q3FY11.
                         
NPAs and Restructured Assets

Net NPAs, as a proportion of net customer assets were 0.39% as on 31st December 2011against 0.34% as on 30th September 2011. Gross NPAs as a proportion of gross customer assets stood at 1.10% as on 31st December 2011, compared to 1.09% as on 31st December 2010 and 1.08% as on 30th September 2011. The Bank had provision coverage of 75.28% as on 31st December 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 87.68%.

During the quarter, the Bank added Rs.`535 crores to Gross NPAs. Recoveries and upgrades of Rs.121 crores and write-offs of Rs.243 crores during the quarter resulted in a closing position of Rs.1,915 crores of Gross NPAs on 31st December 2011, as against Rs.1,744 crores at the end of September 2011.

The Bank restructured loans aggregating Rs.295 crores during Q3FY12. The cumulative value of assets restructured till 31st December 2011, rose to Rs.2,701 crores (1.55% of gross customer assets). 69% of these loans were restructured upto Q3FY11 and were more than a year old.


Investment Portfolio

The book value of the Banks investment portfolio as on 31st December 2011 was Rs.90,263 crores, of which, Rs.55,919 crores related to government securities while Rs.34,344 crores were invested in other securities such as corporate bonds, equities, preference shares, mutual funds etc.



Business Overview
                         
Placement / Syndication

The Bank arranged debt aggregating Rs.30,297 crores during Q3FY12 rising 45% over Q3FY11. The Bank was assessed as the No.1 Debt Arranger for Calendar Year 2011 by Bloomberg. The bank was assessed No.2 debt arranger for the half year ended September 2011 by Prime Database. The Bank also won awards for the “Best Domestic Bank – India 2011” & “Best Domestic Bond House – India; 2011” from „The Asset Triple A Country Awards 2011 instituted by the Asset Magazine.  The Bank was also adjudged “Bank of the year – India 2011” by the Banker magazine and also won the award for the “Best Bank in the Private Sector” by NDTV- Profit.
                         
Retail Business

The number of Savings Bank accounts grew from 91.96 lacs as on 31st December 2010 to 113.97 lacs as on 31st December 2011. Retail advances grew from Rs.25,191 crores as on 31st December 2010 to Rs.33,264 crores  as on 31st December 2011, a growth of 32% YOY. Retail Advances accounted for 22% of the total advances of the Bank as on 31st December 2011. The Bank's International Debit Card issuance has risen to 114 lac debit cards as on 31st December 2011, as compared to 96 lac debit cards in force as on 31st December 2010. The Bank had over 7.23 lac credit cards in force as on 31st December 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.

Capital and Shareholders’ Funds

The Shareholders Funds of the Bank were `22,134 crores as on 31st December 2011 growing 19% YOY from `18,622 crores as on 31st December 2010. The Capital Adequacy Ratio (CAR) for the Bank was 11.78%, as on 31st December 2011, compared to 12.46% as on 31st December 2010. The Tier-I capital adequacy ratio was 8.25% as on 31st December 2011, compared to 8.86% as on 31st December 2010. The profit of 9M for both financial years has not been reckoned for computation of Tier-I capital, as stipulated by Reserve Bank of India. If the net profit of `2,965 crores for 9MFY12 is included, the total CAR and Tier-I CAR as on 31st December 2011 would have been 13.11% and 9.58% respectively.

ANNOUNCEMENTS BY AXIS BANK

01-12-2011          Axis Bank has passed a resolution approving Allotment of Unsecured Redeemable Non-Convertible Subordinated Debentures on private placement basis as the Bank's Lower Tier II capital aggregating to Rs. 1,500 crores (including green shoe option of Rs. 500 crores).The Debentures will be listed on The Bombay Stock Exchange (BSE) and The National Stock Exchange (NSE) in India.
16-09-2011          Axis Bank Board has considered and unanimously approved the transfer of the financial services business of Enam Securities Private Limited ("Enam") in the following manner: (i) the Enam Financial Services Business will be demerged from Enam into the Bank by way of the Demerger under a Scheme of Arrangement and as consideration for the Demerger, the Enam Shareholders will be issued 1,37,82,600 equity shares on the basis of the agreed swap ratio of 5.7 (Five Point Seven) equity shares of the Bank for every 1 (One) equity share of Enam; (ii) immediately upon the completion of step (i) above and concurrent thereto, the Bank shall sell the Enam Financial Services Business to ASSL, its wholly owned subsidiary, by way of the Sale under the said Scheme of Arrangement and ASSL shall pay the Bank a cash consideration of approximately Rs. 274 crores, which represents the book value of the Enam Financial Services Business. The above actions are proposed to be undertaken pursuant to a Scheme which was tabled and approved by the Board at its meeting, and which was formulated in compliance with the conditions prescribed by the Reserve Bank of India in this behalf. The Scheme is subject to the receipt of necessary approvals under applicable law, including the approval of the shareholders and creditors of the Bank, Enam and ASSL, the relevant High Courts and the relevant regulators.
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