YES Bank Q4 Results: Profit stand at Rs 202 Cr, three times higher than Q3

Key Highlights
• Second straight year of Full Year Profitability
• Q4FY23 Profits at INR 202 Crs despite accelerated provisioning, three times higher than Q3FY23 profits
• Q4FY23 NII at INR 2,105 Crs up 15.7% Y-o-Y and 6.8% Q-o-Q. FY23 NII at INR 7,918 Crs up 21.8% Y-o-Y
• Normalised Operating Profits for FY23 up 22.6% Y-o-Y
• NIM for Q4FY23 at 2.8% up 30 bps on Y-o-Y and Q-o-Q. FY23 NIM at 2.6% up 30 bps Y-o-Y
• Strong growth in Deposits and Granular Advances
• CASA ratio at 30.8% up 90 bps Q-o-Q; Avg. CASA Deposits for FY23 up 26.3% Y-o-Y
aided by 30.4% Y-o-Y growth in Avg. CA Deposits
• Advances growth at 13.2% Y-o-Y (excluding ARC transaction and Reverse Repo); Retail Advances up 38.6% Y-o-Y, SME up 22.3% Y-o-Y & Mid Corp. Segments up 35.8% Y-o-Y
• New Sanctions / Disbursement of ~INR 1 Lakh Crs in FY23
• 13.4 Lakh CASA Accounts opened in FY23 vs. 11.4 Lakh in FY22
• Improving Asset Quality
• GNPA ratio1 at 2.2% vs. 13.9% last year and 2.0% last quarter
• NNPA ratio1 at 0.8% vs. 4.5% in FY22 and 1.0% last quarter
• Resolution Momentum continues to be strong with Total Recoveries & Upgrades for FY23 at INR 6,120 Crs - well ahead of guidance of INR 5,000 Crs
• Organic accretion in Capital during the quarter - CET 1 at 13.3% vs 13.0% in Q3; CRAR at 17.9% and RWA to Total Assets at 69.1% vs. 72.8% in FY22 and 70.9% last quarter

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Commenting on the results and financial performance, Mr. Prashant Kumar, MD & CEO, YES BANK said, “Over the last three years, the Bank has significantly progressed on several strategic objectives such as strengthening of Governance and Compliance Standards, bolstering the Balance Sheet through granularity, addressing the asset quality concerns, building up a strong liability franchise and expanding the customer base.

At the same time, with continuous focus on retail, we have continued to expand our footprints with new Branches, increased the employee headcount and stepped-up our investments in technology. Our Retail franchise has now reached a critical scale and is poised for profitable growth. With the current momentum of accelerated growth, the efficiency gains and operating leverage will naturally drive the Bank’s profitability upwards.

In addition to this, in order to further accelerate the profitability expansion, the Bank will be making strategic interventions in the form of calibrated yield enhancement, higher focus on growth in CA and improvement in cross-sell / fee growth on the expanded customer base. Moreover, the significant recoveries and upgrades during the year and particularly Q4 have been utilized for accelerated provisioning to step-up PCR and normalize credit costs over the near term.

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Yes Bank Q4 FY23 Profit and Loss
 

? Q4FY23 NII at INR 2,105 Crs up 15.7% Y-o-Y and 6.8% Q-o-Q. FY23 NII at INR 7,918 Crs up 21.8% Y-o-Y
? NIM for Q4FY23 at 2.8% up nearly 30 bps on both Y-o-Y and Q-o-Q basis. FY23 NIM at 2.6% up 30 bps Y-o-Y
? Q4FY23 Non-Interest Income at INR 1,082 Crs, up 22.8% Y-o-Y. Non-Interest Income for FY23 at INR 3,927 Crs grew 20.4% Y-o-Y. Excluding realised unrealised gain on sale of Investments, Non-Interest Income for FY23 up 31.1% Y-o-Y
? Q4FY23 Operating Expenses at INR 2,299 Crs, up 4.5% Q-o-Q and 19.3% Y-o-Y. For FY23 at INR 8,661 Crs, up 26.5% Y-o-Y
? Operating profit for Q4FY23 stands at INR 889 Crs, up 14.8% Y-o-Y. FY23 Operating Profits at INR 3,183 Crs, up 9.2% Y-o-Y
? Q4FY23 Provision costs at INR 618 Crs up 127.8% Y-o-Y led by accelerated provisioning. Total Provision Costs for FY23 at INR 2,220 up 50.0% Y-o-Y
? Q4FY23 Net Profit at INR 202 Crs, lower by 44.9% Y-o-Y, but three times higher Q-o-Q. Net Profit for FY23 at INR 717 Crs, lower by 32.7% led by accelerated provisioning
? FY23 is the second straight year of full year profitability

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