|Dr.Rana Kapoor, CEO & MD|
Wednesday, January 16, 2013
YES BANK - RESULTS - FOR Q3 FY 2012-13 - Q3 FY 2013 - Net Profits up 34.7%; NII up 48.1% EPS Rs.9.6; Excellent Asset quality - Great Performance
RESULTS FOR Q3 FY 2012-13
Q3 FY 2013
YES BANK has turned in another superlative performance in third quarter after an impressive performance in Q2 FY 13. Net profits have increased by an impressive 34.7%. Net interest income has gone up 48.1%. EPS has climbed to Rs.9.6 and Asset quality remains one of the best in the Industry. The High lights are as below :
Ø PAT of Rs.3,423 million in Q3PY13 compared to Rs.2,541 million in Q3PY12 representing an increase of 34.7% .
Ø NII of Rs.5,843 million in Q3PY13 compared to Rs.4,276 million in Q3PY12 representing an increase of 36.7%
Ø Non Interest Income of Rs.3,132 million in Q3FY13 compared to Rs.2,114 million in Q3FY12 representing an increase of 48.1%
Ø Total Net Income (NII and Non Interest Income) of Rs.8,975 million in Q3FY13 compared to Rs.6,390 million in Q3FY12 representing an increase of 40.5%
Ø Operating Profit of Rs.5,634 million in Q3FY13 compared to Rs.3,988 million in Q3PY12 representing an increase of 41.3%
Ø Non Interest Income to Total Net Income ratio of 34.9% for Q3FY13
Ø Cost to Income ratio of 37.2% in Q3FY13
Ø Gross yield on advances of 12.3% in Q3FY13
Ø Cost of funds of 8.5% in Q3FY13
Ø Net Interest Margin (NIM) of 3.0% in Q3FY13
Ø Return on Average Assets of 1.6% (annualized)
Ø Return on Equity of 24.9% (annualized)
Ø Basic EPS of Rs.9.6 and Diluted EPS of Rs.9.4 for Q3FY13. The annualised EPS is likely to be above Rs.38. At this EPS and the current price of around Rs.520, the PE Ratio is hardly 13.67 , which leaves enough scope for price appreciation in the medium term.
Highlights for 9 months (9MFY13)
Ø PAT of 9,385 million in 9MFY13 compared to Rs.7,052 million in 9MFY12 representing an increase of 33.1%
Ø NII of Rs.15,807 million in 9MFY13 compared to Rs.11,674 million in 9MFY12 representing an increase of 35.4%
Ø Non Interest Income at Rs.8,781million in 9MFY13 compared to Rs.5,908 million in 9MFY12 representing an increase of 48.6%
Ø Total Net Income in 9MFY13 of Rs.24,587 million compared to Rs.17,582 million in 9MFY12 representing an increase of 39.8%
Ø Operating Profit of Rs.15,078 million in 9MFY13 compared to Rs.11,099 million in 9MFY12 representing an increase of 35.9%
Ø Non Interest Income to Total Net Income ratio of 35.7% in 9MFY13
Ø Cost to Income ratio of 38.7% in 9MFY13
Ø Gross yield on advances of 12.4% in 9MFY13
Ø Cost of funds of 8.7% in 9MFY13
Ø Net Interest Margin (NIM) of 2.9% in 9MFY13
Ø Return on Average Assets of 1.6% (annualized)
Ø Return on Equity of 24.2% in 9MFY13 (annualized)
Ø Basic EPS of Rs.26.4 and Diluted EPS of Rs. 25.8 for 9MFY13
Highlights as at December 31,2012
Ø Customer Assets (advances and credit substitutes) at Rs.557.5 billion as at December 31, 2012; growth of 27.4% y-o-y
Ø Advances at Rs.438.6 billion as at December 31, 2012; growth of 22.3% y-o-y
Ø Deposits at Rs.564.0 billion as at December 31, 2012; growth of 20.2% y-o-y
Ø CASA at Rs.103.4 billion as at December 31,2012 and CASA ratio of 18.3%; growth of 74.9% y-o-y
Ø Retail Banking Liabilities (CASA + Branch Banking FD) has improved from 30.7% of Total Deposits as of December 31, 2011 to 37.8% as of December 31, 2012
Ø Balance Sheet size of Rs.870.2 billion as at December 31, 2012; growth of 22.4% y-o-y
Ø Gross NPA at 0.17% of Gross Advances; Net NPA at 0.04% of Net Advances
Ø Specific loan loss coverage ratio of 79.6% as at December 31, 2012
Ø Total Capital Funds (Tier I+ Tier II) of Rs.118.1 billion as at December 31, 2012 (81.2 billion as at December 31, 2011)
Ø Capital Adequacy Ratio of 18.0% at December 31,2012 (Tier I at 9.0%; 9.5% including Q3 FY13 PAT)
Ø Book value per share of Rs.158.8 as at December 31, 2012 (129.5 as at December 31, 2011)
Ø Total headcount stands at 6,532 as at December 31, 2012 (5,013 as at December 31, 2011 and 5,642 as of March 31, 2012, an increase of 890 in 9M FY13)
Ø Increased branch network by 81 branches from 331 Branches as of December 31, 2011 to 412 as of December 31, 2012;
Ø 29 ATMs added in the quarter to take the total number of ATMs to 723 (412 as of December 31, 2011)
Key Financial Performance Highlights
Ø Sound growth in Advances and Deposits:
Ø Customer Assets (advances and credit substitutes) grew by 27.4% to Rs.557.5 billion as at Dec 31, 2012 from Rs.437.5 billion as at Dec 31, 2011.
Ø Total Advances grew by 22.3% to Rs.438.6 billion as at December 31, 2012 from Rs.358.7 billion as at December 31, 2011.
Ø Corporate & Institutional Banking (large Corporates) accounted for 65.9% of the portfolio,
Ø Commercial Banking (Mid-sized Corporates) accounted for 20.6% and Retail Banking (Including MSME) -13.5% .
Ø Total Deposits grew by 20.2% to Rs.564.0 billion as at December 31,2012 from Rs.469.3 billion as at December 31,2011.
Ø Total Assets grew by 22.4% to Rs.870.2 billion as at December 31,2012 from Rs.711.1billion as at December 31, 2011.
Ø Strong growth in Net Interest Income (NIl): NIl increased by 36.7% y-o-y to Rs.5,843 million in Q3FY13 from Rs.4,276 million in Q3FY12. This was primarily driven by sustained growth in customer assets of 27.4% y-o-y and expansion in NIM to3.0%
Ø NIl for 9MFY13 was up 35.4% to Rs.15,807 million as compared to Rs.11,674 million for 9MFY12. NIM for the Bank was 2.9% in 9MFY13.
Ø Healthy growth in Non-interest Income: Non Interest Income grew at 48.1% y-o-y to Rs.3,132 million in Q3FY13 from Rs.2,114 million in Q3FY12. This was on the back of steady growth in Transaction Banking, Retail Banking Fees and Financial Advisory business streams.
Ø Components of Non Interest Income for Q3FY13 were as follows: Transaction Banking - Rs.805 million (26.0% growth y-o-y), Financial Advisory – Rs.1,624 million (101.6% growth y-o-y), Financial Markets- Rs.392 million (18.9% decline y-o-y), and Retail Banking Fees & Others- Rs.311 million (66.4% growth y-o-y).
Ø Non Interest Income showed strong growth of 48.6% y-o-y at Rs.8,781million for 9MFY13 as compared to Rs.5,908 million in 9MFY12; on account of continued traction across all business strean1s: Transaction Banking, Financial Markets, Financial Advisory and Retail Banking Fees.
Ø Healthy growth in Operating and Net Profits: Operating profit for Q3FY13 was up 41.3% to Rs.5,634 million as compared to Rs.3,988 million for Q3FY12. The Cost to Income ratio was flat at 37.2% in Q3FY13 compared to Q3FY12.
Ø PAT in Q3FY13 was up 34.7% to Rs.3,423 million from Rs.2,541million for Q3FY12.
Ø Operating profit for 9MFY13 was up 35.9 % to Rs.15,078 million as compared to Rs.11,099 million for 9MFY12.
Ø The Cost to income ratio was stable at 38.7% in 9MFY13.
Ø PAT for 9MFY13 was up 33.1% to Rs.9,385 million from Rs.7,052 million in 9MFY12.
Ø Consistently healthy Asset Quality:
Ø Gross NPAs and Net NPAs were at 0.17% & 0.04%, respectively as of December 31, 2012 compared to 0.20% Gross NPA and 0.04% Net NPA as of December 31, 2011. Restructured advances (excluding NPAs) stand at Rs.1,891million (0.43% of Gross Advances) as at December 31,2012.
Ø Bank's specific provisioning cover was at 79.6% as at December 31,2012.
Ø Superior Shareholders' returns:
Ø The Bank delivered Return on Equity (RoE) of 24.9% (annualized) and Return on Assets (RoA) of 1.6% (rumualized) for Q3FY13.
Ø RoE is 24.2% and RoA is 1.6% for 9M FY13.
Ø RoA has been at or above 1.5% for the last 17 quarters, and RoE has been approximately 20% or above over the same period.
Ø Capital Funds:
Ø Tier I Capital Ratio of 9.0% (9.5% including Q3FY13 PAT) and Total Capital Adequacy of 18.0% as at December 31, 2012.
Ø The Tier I ratio continues to remain stable at 9.5% on the back of strong internal accruals.
Ø Total Capital funds grew by 45.4% to Rs.118.1billion as at December 31, 2012 compared to Rs.81.2 billion as at December 31,2011.
Ø Transaction Banking:
Ø Income from Transaction banking grew 26.0% y-o-y to Rs.805 million in Q3FY13 from Rs.639 million in Q3FY12. This income was up 37.5% to Rs.2,295 million in 9MFY13 from Rs.1,669 million in 9MFY12. The Bank continues to deepen relationships through cross-sell and establish new ones across business segments and is establishing itself as a significant player in the product domain of cash management and trade finance services.
Ø Financial Advisory:
Ø Investment Banking, Corporate Finance advisory and other advisory income increased to Rs.1,624 million in Q3FY13 from Rs.806 million in Q3FY12. This income was up 47.2% to Rs.3,846 million in 9MFY13.
Ø Financial Markets:
Ø Income from FX sales, Debt Capital Markets and h•ading was at 392 million in Q3FY13. This income contributed a total of1,807 million in 9MFY13, up 58.6% y-o-y.
Ø Retail Banking Fees and Others: This was up 66.4% to Rs.311 million in Q3FY13 from Rs.187 million in Q3FY12. Retail Banking has seen steady traction on the back of improving distribution through branch network. Strong growth in fee from insurance, retail gold product, small remittances & debit cards has resulted in this growth which is in line with the Revenue and Risk diversification objectives of Version 2.0.
Ø Healthy Asset Book with minimal Net NPAs
Ø Gross NPA at Rs.762 million (0.17% of Gross Advances) and Net NPA at Rs.156 million (0.04% of Net Advances) as at Dec 31, 2012 (0.20% and 0.04% respectively as at Dec 31, 2011 )
Ø Specific provision at 79.6% as at Dec 31, 2012 (80.0% as at Dec 31,2011)
Ø Total Restructured Advances (excluding NPAs) is Rs.1,891million as at Dec 31, 2012. This represents 0.43% of the Gross Advances.
Ø Capital Raising Initiative : YES BANK successfully raised Rs.4,441 million of Upper Tier II Capital. In addition, the Bank also raised Rs.4,597 million of Lower Tier II Capital.
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