YES BANK
Q2FY14 and H1FY14
(Audited) Financial
Results
§ Net Profit
:
Rs.371.1 crore in Q2 FY14; y-o-y growth of 21.3%
§ Net
Interest Income : Rs.672.1 crore for Q2 FY14; y-o-y growth of 28.2%.NIM at 2.9%.
§ Non
Interest Income : Rs.446.1 crore for
Q2 FY14; y-o-y growth of 61.2%
§ Deposits :
Grew by 29.2% and Loans by13.6%
y-o-y, CD Ratio stands at 70.6%. Wholesale Deposits (deposits above Rs.25
crore) accounts for 31.1% of total deposits as at September 30, 2013 as compared
to 34.7 % as at September 30, 2012
§ Y-o-y growth in Savings Accounts deposits of 80.8%; CASA growth of 52.5%; CASA
Ratio improves to 20.4% from 17.3% a
year ago
§ Healthy
Asset Quality : Gross NPA at 0.28%
and Net NPA at 0.04%.
Specific loan loss Provision Coverage of 85.3% (excluding
counter cyclical provision)
§ The Bank has fully recognized a onetime charge of Rs.112.6
crore on account of net depreciation onBond portfolio to the P&L statement during the
quarter and has not carried the same into future quarters.
§ The Bank has transferred SLR securities worth face
value of Rs.94 crore from AFS category to HTM category. Had this transfer not been made, the
Bank’s net profit would have been lower by Rs.6.2 crores
Commenting on the results and
financial performance, Mr. Rana Kapoor, Managing Director &CEO, YES BANK
said, “YES Bank has
delivered a satisfactory quarter of financial performance in a challenging
macroeconomic environment. The Bank has maintained robust asset quality
retaining high specific provision coverage, while further adding to the
reservoir of counter cyclical provisions.
The
Bank maintained its growth in infrastructure with branch network crossing the
500-mark milestone, complemented by over 1100 ATMs. Consequently, the Bank
improved its CASA ratio, significantly added to the overall deposit base,
improved the overall granularity of deposits, and maintained Net Interest
Margin despite challenging interest rate and liquidity environment. The overall
business performance amply demonstrates the resilience of the Bank‟s business
model and management team in delivering consistent performance
Q2FY14
and H1FY14 Financial Performance
Balance
Sheet
Stable growth in Advances and Deposits :
Total Advances grew by 13.6% to Rs.47,717.2
crore as at September 30, 2013. Corporate & Institutional Banking (Large
Corporates) accounted for 67.1% of the Customer Assets portfolio, Commercial
Banking (Mid-sized Corporates) accounted for 15.7% and Retail Banking
(including MSME) at 17.2%.
Total Deposits grew by 29.2% to Rs.67,575.1 crore
as at September 30, 2013.
The Bank’s Balance Sheet grew by 23.1% to Rs.102,153. 5
crore as at September 30, 2013.
The Bank’s CD ratio stood at 70.6% as at September 30, 2013.
While
deposits grew by 3.6% Q-o-Q,
certificates of deposits declined by 9.9% as the Bank increased its reliance on
customer driven deposits which grew by 5.2% Q-o-Q.
Current and Savings Account (CASA)
deposits grew by
52.5% y-o-y to Rs.13,776.0 crore taking the CASA ratio to 20.4% as at September
30, 2013 up from 17.3 % as of September 30, 2012.
The
Bank continues to demonstrate strong traction in CASA on the back of an
increase in branch network, enhanced Savings Rate offering and improvements in
productivity.
Wholesale
Deposits (deposits above Rs.25 crore)
accounts for 31.1% of total deposits as at September 30, 2013 as compared to
34.7% as at September 30, 2012.
Asset Quality:
Gross Non Performing Advances as a proportion of Gross Advances
was at 0.28% while Net Non Performing Advances as a proportion of Net advances
was at 0.04% as at September 30, 2013.
Bank’s specific provisioning cover was at 85.3% as at September 30, 2013.
Total Restructured Advances
(excluding NPAs)
stand at Rs.125.5 crore as at September 30, 2013.
This
represents 0.26% of the Gross Advances down from 0.46% as at September 30,
2012.
There
were no fresh restructurings during the quarter. Total counter cyclical
provision stood at 0.4%of Advances.
Capital Funds : As per Basel III, Tier
I Capital stood at 9.5% and total CRAR stood at 15.6% (including H1FY14
profits) as at September 30, 2013
Profit & Loss Account:
Net Interest Income (NII) Growth: NII
for Q2FY14 increased by 28.2% y-o-y to Rs.672.1 crore. This was on account of a
cautious and steady growth in advances & investments coupled with stable
NIMs at 2.9%. NII for H1FY14 was up 33.6% to Rs.1,331.2 crore.
Non Interest Income: Non Interest
Income grew by 61.2% y-o-y to Rs.446.1 crore
for Q2FY14. This was on the back of continued growth across all the fee income
streams Financial Advisory, Financial Markets, Transaction Banking, and Retail
Banking Fees & Others, that showed firm traction y-o-y. Financial Markets
included one-off gain of Rs.111.6crore
in this quarter due to MTM gains on interest rate swaps. Excluding this, Financial
markets income was as per trend. Non Interest Income for HIFY14 displayed
robust growth of 57.2% to Rs.888.2 crore.
Securities portfolio: During the
quarter, the net depreciation on AFS/HFT bond Portfolio (Corporate & G-Sec)
of the Bank amounted to Rs.112.6 crore.
The Bank has fully recognized this charge within this quarter to the Profit
& Loss statement and has opted not to distribute the said amount over
future periods , even though permitted by RBI.
Also, during the quarter the Bank has transferred eligible SLR
securities worth face value of Rs.94 crore
from AFS category to HTM category at book value with Rs.0.33 crore of losses on
the Profit & Loss statement. (Note: Had this transfer not been made, the
Bank’s net depreciation charge would have been higher by Rs.9.4Crores and net
profit would have been lower by Rs.6.2crores.)
Operating and Net profit: Operating
profit for Q2FY14 was up 47.1% to Rs.712.9
crore driven by strong growth in NII and Non -Interest Income. The Cost to
Income ratio was 36.2 % in Q2FY14 versus 39.5% in Q2FY13 . Net Profit in Q2FY14
was up 21.3% at Rs.371.1crore. Operating Profit for H1FY14 was up 47.5% to Rs.1,392.8 crore.
The Cost to Income ratio was 37.2 % in H1FY14 .
Profit for H1FY14 was up 29.5 % to Rs. 772.0 crore.
Strong Shareholders’ returns : The Bank
delivered RoE of 23.1 % and RoA of 1.5% for Q2FY14.
RoE
was 24.9 % and ROA was 1.5% for H1FY14.
(Note:
RoA has been at or above 1.5% for the last 5 years , and RoE has been
approximately 20% or above over the same period.)
YES
BANK successfully raised USD 255 million (USD 180 million and EUR 58 million)
by way of Dual Currency, Multi-tenor Syndicated Foreign Currency Loan Facility
and availed the RBI swap facility.
YES
BANK added 25 Branches and 71 ATMs
during the quarter. Total network
now stands at 500 Branches and 1,122 ATMs
Employee strength stood at 7,998, an
increase of 1,691 over September 30,2012.
Rs.In
Cr
|
Q2FY14
|
Q2FY13
|
Growth %
|
H1FY14
|
H1FY13
|
Growth %
|
|||
Net Interest Income
|
672.1
|
524.2
|
28.20%
|
1,331.20
|
996.4
|
33.60%
|
|||
Non Interest Income
|
446.1
|
276.8
|
61.20%
|
888.2
|
564.9
|
57.20%
|
|||
Total Net Income
|
1,118.20
|
800.9
|
39.60%
|
2,219.40
|
1,561.20
|
42.20%
|
|||
Operating Profit
|
712.9
|
484.7
|
47.10%
|
1,392.80
|
944.4
|
47.50%
|
|||
Profit after Tax
|
371.1
|
306.1
|
21.30%
|
772.00
|
596.2
|
29.50%
|
|||
Basic EPS (Rs.)
|
10.3
|
8.6
|
19.40%
|
21.46
|
16.82
|
27.60%
|
|||
As
can be seen from the Results, Yes Bank has delivered an improvement of 21.3% in
net profit after Tax and a Total Net Income increase of 39.6% YoY during the
current Quarter. Net Interest Margin has dropped a shade to 2.9% from 3% in
preceding quarter, though it is stable at 2.9% clocked in same quarter in FY
13.
While
the operating Profit was quite good at Rs.712.89 Cr compared to Rs.679.96 cr in
previous quarter and Rs.484.74 cr in corresponding quarter; the provisions in the quarter was
higher at Rs.179.12 cr; compared to Rs.96.99 cr in previous quarter and
Rs.31.73 cr in corresponding quarter.
Consequently
the Profit before tax has come down to Rs.533.77 cr in current quarter,
compared to Rs.582.97 cr in previous quarter; though significantly higher than
the Rs.453.01 cr in corresponding quarter.
Tax
Expense was Rs.162.64 cr in current Quarter; compared to Rs.182.13 cr in
previous qtr and Rs.146.93 cr in corresponding qtr.
Basic
EPS is 10.30 in Q2 and Rs.11.16 in Q1 of current year. The same wqas Rs.8.61
only in corresponding Qtr of last year.
Considering
that Q2 Fy 14 was affected by the liquidity tightening measures of RBI and
these have been relaxed considerably in the end of Q2; one can expect that the
Q3 results will be considerably better than Q2.
The
Bank expects a loan growth of around 20% in this year. The asset quality is good
and the provision is impressive at over 85%.
Based
on the above, one can expected further improvements in Yes bank’s financials in
Q3 and Q4. The current share price therefore could see further improvements based
on Q3 and Q4 Results considerably.
As a
consequence the Net Profit is Rs.371.13 cr in current quarter, which is
significantly higher than Rs.306.08 cr in corresponding quarter; but is
slightly less compared to Rs.400.84 cr in preceding quarter.
Q2FY14
|
Q2FY13
|
Q1FY14
|
|||
Return on Assets
|
1.50%
|
1.50%
|
1.60%
|
||
Return on Equity
|
23.10%
|
23.80%
|
26.70%
|
||
NIM
|
2.90%
|
2.90%
|
3.00%
|
||
Cost to Income Ratio
|
36.20%
|
39.50%
|
38.30%
|
||
Non Interest Income to Total Income
|
39.90%
|
34.60%
|
40.10%
|
||
Capital Adequacy0Basel III
|
15.60%
|
17.50%
|
15.40%
|
||
Tier I Ratio Basel III
|
9.50%
|
9.50%
|
9.50%
|
||
Book Value (Rs)
|
183.40%
|
149.21
|
173.03
|
||
Gross NPA
|
0.28%
|
0.24%
|
0.22%
|
||
Net NPA
|
0.04%
|
0.05%
|
0.03%
|
||
Provision Coverage Ratio
|
85.30%
|
80.40%
|
88.50%
|
||
RESULTS TABLE
in Crore )
|
30-Sep-13
|
30-Sep-12
|
Growth
|
30-Jun-13
|
Growth
|
Advances
|
47,717.20
|
42,019.30
|
13.60%
|
47,897.60
|
-0.40%
|
Deposits
|
67,575.10
|
52,290.80
|
29.20%
|
65,244.80
|
3.60%
|
CASA
|
13,776.00
|
9,034.10
|
52.50%
|
13,163.20
|
4.70%
|
Shareholders‟ funds
|
6,610
|
5,313.50
|
24.40%
|
6,224.30
|
6.20%
|
Total Capital Funds
|
11,136.70
|
10,894.00
|
10,666.00
|
4.40%
|
|
Total Balance Sheet
|
102,153.50
|
82,974.60
|
23.10%
|
100,802.00
|
1.30%
|
RESULTS TABLE
| YES BANK | 31-12-13 | 30-09-13 | % Dif QoQ | 31-12-12 | % Dif YoY | ||
| Total Income | 290200 | 294739 | -1.54 | 244683 | 18.6 | ||
| Total Expdtr | 228732 | 223450 | 2.36 | 188338 | 21.45 | ||
| Profit bef. Intt, Dep& Tax | 61468 | 71289 | -13.8 | 56345 | 9.09 | ||
| Net Profit | 41560 | 37113 | 11.98 | 34231 | 21.41 | ||
| Diluted EPS | 11.38 | 10.14 | 12.23 | 9.39 | 21.19 | ||
| Interest on Advances | 166598 | 161791 | 2.97 | 139360 | 19.55 | ||
| Income on Investments | 84002 | 87467 | -3.96 | 72567 | 15.76 | ||
| Income on Balances With RBI | 776 | 839 | -7.51 | 425 | 82.59 | ||
| Others | 36 | 30 | 20 | 1012 | -96.44 | ||
| Interest Earned | 251412 | 250127 | 0.51 | 213364 | 17.83 | ||
| Other Income | 38788 | 44612 | -13.1 | 31319 | 23.85 | ||
| Total Income | 290200 | 294739 | -1.54 | 244683 | 18.6 | ||
| Interest Expended | 184867 | 182916 | 1.07 | 154932 | 19.32 | ||
| NII | 66545 | 67211 | -0.99 | 58432 | 13.88 | ||
| Employees Cost | 19406 | 18534 | 4.7 | 16196 | 19.82 | ||
| Other Operating Expenses | 24459 | 22000 | 11.18 | 17210 | 42.12 | ||
| Operating Expenses | 43865 | 40534 | 8.22 | 33406 | 31.31 | ||
| Total Expenditure | 228732 | 223450 | 2.36 | 188338 | 21.45 | ||
| Operating Profit | 61468 | 71289 | -13.8 | 56345 | 9.09 | ||
| Provisions | 1329 | 17912 | -92.6 | 5668 | -76.55 | ||
| Profit before tax | 60139 | 53377 | 12.67 | 50677 | 18.67 | ||
| Tax | 18579 | 16264 | 14.23 | 16446 | 12.97 | ||
| Face Value | 10 | 10 | 0 | 10 | 0 | ||
| Paid-up Equity | 36056 | 36043 | 0.04 | 35756 | 0.84 | ||
| Capital Adeq.Ratio | 13.8 | 13.8 | 0 | 18 | -23.33 | ||
| Basic EPS | 11.53 | 10.3 | 11.94 | 9.59 | 20.23 | ||
| Diluted EPS | 11.38 | 10.14 | 12.23 | 9.39 | 21.19 | ||
| Net NPA | 4231 | 1936 | 118.5 | 1557 | 171.74 | ||
| % of Net NPA | 0.08 | 0.04 | 100 | 0.04 | 100 | ||
| Return on Assets | 1.6 | 1.5 | 6.67 | 1.6 | 0 | ||
| Public holding (%) | 74.44 | 74.41 | 0.04 | 74.2 | 0.32 |
* * * E N D * * *
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