Conference Call with Equitas Small Finance Bank Management and Analysts on Q1FY23 Performance and Outlook. Listen to the full earnings transcript.
Equitas Small Finance Bank Announced Q1FY23 Result : PAT for the quarter at Rs 97 Cr compared to Q1FY22 PAT of Rs 12 Crs Gross Advances as of Q1FY23 was at Rs. 21,688 Cr, growth of 22% YoY Q1FY23 disbursement at Rs. 3,238 Crs, growth of 156% YoY PPoP as a % of assets expanded to 3.87% from 2.65% in Q1FY22 Cost of funds improved to 6.20% from 6.93% in Q1FY22, improvement of 73bps CASA Deposit grew 55% YoY to Rs. 10,548 Crs. CASA Ratio stood at 51.74% as of June 2022 Retail Term Deposits grew 14% YoY and contribute 72% of total term deposits GNPA down to 3.95% from 4.06% in Q4FY22, PCR improves to 48.46% from 42.73% sequentially Credit growth continues to be healthy: Q1FY23 disbursement at Rs. 3,238 Crs, strong growth of 156% YoY on account of a low base due to Covid led lockdowns Advances as of Q1FY23 was at Rs. 21,688 Cr, growth of 22% YoY Yields stable at 17.15% on a sequential basis Liabilities :Strong retail deposit momentum: Cost of funds stable at 6.20%, on a YoY basis CoF improved by 73bps CASA deposit grew 55% YoY to Rs. 10,548 Crs. CASA ratio stood at 52% as of June 2022 Retail Term Deposits grew 14% YoY to Rs. 7,083 Crs. Retail Term Deposits contribute 72% of total term deposits. Elite SA book crossed Rs. 8,000 Crs with 70,000+ Customers o NR Book crossed Rs. 1,000 Crs Key Ratios: Cost to Income at 60.60% in Q1FY23 as compared to 56.85% in Q4FY22 as compared and 68.47% in Q1FY22 RoA and RoE for Q1FY23 at 1.40% and 9.03% Capital: As of June 30, 2022 Total CRAR at 24.62% | Tier I at 24.07% and Tier II at 0.55% Treasury & Liquidity: The Bank’s Certificate of Deposit (CD) program for Rs. 500 Crore has highest rating from at CRISIL A1+ The Bank maintains ‘surplus’ liquidity in the form of High Quality Liquid Assets (HQLA). Liquidity Coverage Ratio (LCR) as on 30.06.2022 is 211% Profit & Loss: Net Interest Income for Q1FY23 at Rs. 581 Cr as against Rs. 461 Cr in Q1FY22. NIM at 9.05% Pre Provisioning Operating Profit (PPoP) for Q1FY23 at Rs. 269 Cr as against Rs. 164 Cr in Q1FY22 PAT for Q1FY23 at Rs. 97 cr as against Rs. 12 Cr in Q1FY22 Asset Quality, Provisions & Restructuring: GNPA at 3.95% in Q1FY23 as compared to 4.06% in Q4FY22 and 4.58% in Q1FY22 NNPA at 2.07% in Q1FY23 as compared to 2.37% in Q4FY22 and 2.29% in Q1FY22 Provision coverage ratio improves to 48.46% The Bank during the quarter has made higher provisions of Rs. 76 Cr towards the restructured loans which became NPA during Covid Commenting on the quarterly performance, Mr. P N Vasudevan, Managing Director and CEO of Equitas Small Finance Bank said: “The first quarter has been a strong quarter unlike normal, where first quarters tends to be slow. The advances grew strongly by 22% and expected to improve further over the rest of the year. Our deposits growth continues to be strong, with CASA coming in at over 50% and retail deposits being about 72% of total deposits. Our digital foray is delivering value with nearly 9% of our savings account balances coming in from digitally sourced accounts. With Covid related disturbances behind us, and our customers’ livelihoods coming back strongly, we should be able to support their aspirations for growth and growing along with them.” Result PDF
Conference Call with Equitas Small Finance Bank Management and Analysts on Q4FY22 Performance and Outlook. Listen to the full earnings transcript.
Equitas Small Finance Bank declares Q4FY22 result: FY22 disbursement at Rs. 10,549 Crs, highest ever achievement – growth of 41% Gross Advances as of Q4FY22 was at Rs. 20,597 Cr, growth of 15% YoY PPoP as a % of assets expanded to 4.35% from 3.52% in Q3FY22 Cost of funds improved to 6.20% from 7.20% in Q4FY21, improvement of 100bps CASA Deposit grew 76% YoY to Rs. 9,855 Crs. CASA Ratio stood at 52.01% as of March 2022 Digital Initiatives drive account acquisition, acquired 23 lac liability accounts in FY22 as compared to 4.7 lac accounts in FY21 GNPA down to 4.06% from 4.39% in Q3FY22 Advances: Highest ever yearly & quarterly disbursements: FY22 disbursement at Rs. 10,549 Crs, our highest ever achievement – growth of 41% Q4FY22 disbursement at Rs. 3,279 Crs exceeding previous highest quarter Fastest growing Segment for the quarter is Small Business Loans, the Bank’s flagship product Advances growth picks up: Advances as of Q4FY22 was at Rs. 20,597 Cr, growth of 15% YoY Normalising credit costs: Non Restructured Loans credit cost for Q4FY22 annualised at 1.26%, trending back to Bank’s historical levels Liabilities: Strong retail momentum: Cost of funds improved to 6.20% from 7.20% in March 2021, improvement of 100bps CASA Deposit grew 76% YoY to Rs. 9,855 Crs. CASA Ratio stood at 52.01% as of March 2022 Retail Term Deposits grew 21% YoY to Rs. 7,093 Crs. Retail Deposits forms 78% of the Term Deposits Expanding cross sell opportunity: Liability Fee Income at Rs. 73 Crs vs. Rs. 50 Crs in FY21, growth of 46% YoY 53% growth in Insurance Premium mobilized for the year at Rs. 127 Crs o 32,000 3in1 Account sourced in FY22 Cross selling of Used Car loans, Prime Home Loans and Working capital loans pick up Deepening retail relationship: NRI SA grew 236%, highest growing segment within the SA book Debit Card spends doubled in FY22 to Rs. 689 Crs Unique Card Transactions in FY22 up by 150% YoY Key Ratios: Cost to Income at 56.85% in Q4FY22 as compared to 64.67% in Q3FY22 and 57.34% in Q4FY21; after adjusting digital expenses to corresponding digital income RoA and RoE for Q4FY22 at 1.83% and 12.21% respectively Capital: As of March 31, 2022 Total CRAR at 25.16% | Tier I at 24.53% and Tier II at 0.63% Treasury & Liquidity: The Bank’s Certificate of Deposit (CD) programme for Rs. 1,000 Crore has highest rating from at CRISIL A1+ The Bank has adequate eligible advances available to raise funds through refinance or IBPC whenever required which provides strong cushion to ALM position of the Bank The Bank currently maintains ‘surplus’ liquidity in the form of High Quality Liquid Assets (HQLA). Average Liquidity Coverage Ratio (LCR) for the quarter at 134% LCR improved sharply as the Bank focused on improving quality of deposits Profit & Loss: Net Interest Income for Q4FY22 at Rs. 552 Cr as against Rs. 449 Cr in Q4FY21. NIM at 9.12% Pre Provisioning Operating Profit (PPoP) for Q4FY22 at Rs. 284 Cr as against Rs. 250 Cr in Q4FY21 PAT for Q4FY22 at Rs. 120 cr as against Rs. 113 Cr in Q4FY21 3. Asset Quality, Provisions & Restructuring: GNPA at 4.06% in Q4FY22 as compared to 4.39% in Q3FY22 and 3.59% in Q4FY21 NNPA at 2.37% in Q4FY22 as compared to 2.38% in Q3FY22 and 1.52% in Q4FY21 Provision coverage ratio at 42.73% The Bank has made additional standard assets provision of Rs. 26.08 Crs in Q4FY22 Commenting on the quarterly performance, Mr. P N Vasudevan, Managing Director and CEO of Equitas Small Finance Bank said: “The Bank achieved its highest ever disbursement in Q4FY22. The demand for credit has come back to normal levels. With improving asset quality, the Bank is well positioned to get back to its pre-Covid levels growth rate of around 30% p.a. The Bank’s capital position is also strong with capital adequacy of over 25%, enabling the Bank to pursue growth over the coming years.” Result PDF