PNB Housing Finance Ltd. share price target

PNBHF reported a strong sets of numbers in its Q3FY19 financial results, primarily driven by healthy growth in AUM and marginal expansion in NIM.

PNB Housing Finances (PNBHF) 3QFY19 PAT increased 32% YoY to INR3.0b (14% beat). The beat was largely driven by higher-than-expected upfront income on loan assignment and MTM on the treasury book. Despite a tough and volatile environment, PNBHF disbursed INR93b worth of loans (+1% YoY). Repayment rate (annualized) continues to decline and hit a 24 January 2019 multi-quarter low of 21%, largely due to lower balance transfers in our view. As a result, AUM grew a healthy 38% to INR797b. PNBHF sold down INR27.1b worth of loans in the quarter, compared to INR31b in the previous quarter. The company recorded an upfront income of INR1.5b in 3QFY19 v/s INR617m in 2QFY19. The key negative surprise in the quarter came from loan spreads (calculated), which declined 17bp QoQ to a multi-quarter low of 1.77%. This was on account of ~60bp QoQ increase in cost of funds partially offset by ~40bp increase in loan yield.

PNB Housing Finance (PNBHF) continued to report strong set of numbers this quarter amid headwinds in the housing finance sector, numbers were in line with our estimates on AUM.

PNB Housing Finance (PNBHF) reported yet another stellar set of numbers in Q1FY19 financial results, exceeding our estimates on AUM and PAT.

9 August 2018 PNBHFs 1QFY19 PAT grew robustly by 38% YoY to INR2.4b, driven by strong AUM growth, margin pressure and lower credit costs. AUM grew 47% YoY/10% QoQ to INR686b. Repayment rate (annualized) was 24.6% in 1QFY19 v/s 29.7% in the year-ago period. While spreads (calc.) declined 10bp YoY to 2.47%, margins shrank ~40bp YoY to 2.65% due to higher leverage. As a result, NII growth was 28% YoY v/s AUM growth of 47% YoY. Spreads are likely to remain under pressure, as the increase in home loan rates may not be able to match the rise in cost of funds, in our view. C/I ratio (calculated) came in at 24.5% v/s average of 22-24% in the past few quarters. We believe that a sustained reduction in the C/I ratio is a must for an improvement in RoE.

Operating Income rose by 9.14% to Rs. 1569.97 Cr in Q4FY18 when compared to the previous quarter. PNB Housing Finance Ltd Q4FY18 results Comment

PNB Housing Finance (PNBHF) reported yet another strong quarter in its Q4FY18 financial results. AUM growth exceeded our...

PNB Housing Finance's (PNBHF) 4QFY18 PAT grew robustly by 50% YoY toINR2.2b, but missed our estimate by 5%, largely due to higher-than-expected opex. Excluding one-off expense of INR130m related to securitization, PAT would have been largely in line with estimates. AUM grew 50% YoY/8% QoQ to INR623b. Interestingly, PNBHF sold downINR31b worth of loans during the quarter, taking the total off-BS loan book to INR52b (8% of AUM).Repayment rate (annualized) was 28.8% in 4QFY18v/s 24.4% in the year-ago period.

PNB Housing Finance Ltd Q3FY18 results comment Operating Income grew by 9.33% to Rs. 1438.49 Cr in Q3FY18 when compared to the previous quarter. Also, it grew by 44.03% when compared with Q3FY17.

PNB Housing Finance (PNBHF) reported a strong set of numbers in its Q3FY18 financial results. Disbursement grew at 110% to INR 9,276cr, leading 53% YoY growth in AUM to INR 57,668cr. PNBHF...