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Diversified Financials: Q3FY24 Preview Expect sustained growth momentum

SBI Life forecast to deliver strong growth and steady VNB margins in Q3; remains our top life insurance pick

Diversified Financials: Credit card spends hit festive high

Sectoral credit card spends rose 27% YoY over Apr-Oct'23, with AXSB racking up the most market share and SBICARD holding steady

BFSI Q2FY24 Earnings Preview

The combination of AUM growth and yield decline for asset management companies (AMCs) has led to moderate earnings growth for most AMCs over the last 5 years (aggregate EBITDA CAGR of 8.2% for listed AMCs between FY18-23). However, the current phase promises a better balance considering that stock AUM with upfront commissions may be much lower now in the system while better capital market may lead to an increase in equity mix (already seen in H1CY23).

Profitability across NBFCs-HFCs remained robust during the past five years despite covid as reflected in RoA for select HFCs witnessing steady improvement to 2.9% by FY23 vs 1.8% / 2.2% / 2.4% / 2.4% / 2.7% during FY18 / FY19 / FY20 /FY21 / FY22, respectively.