India’s fifth-largest private sector lender Yes Bank on Thursday reported a rise of 22% in the third-quarter net profit to Rs 1,076.9 crore on a yearly basis and a sequential rise of 7.4%. Yes Bank’s net profit for the October-December period stood at Rs 1,076.9 crore, up by 22% from Rs 882.6 crore in the same period last fiscal. On the NPAs (non-performing assets) front, Yes Bank gross NPAs came down to 1.72% for the quarter ended 31 December 2017 from 1.82% of the total loans and advances as at the end of 30 September 2017. Following the Q3 earnings, the stock of Yes Bank fell as much as 2.74% to the day’s low of Rs 333.1 on BSE.
The total income for the third-quarter ended 31 December 2017 rose 32.1% to Rs 3,311.1 crore as compared to Rs 2,505.8 in the corresponding period a year ago. Yes Bank’s operating profit jumped 37.7% to Rs 2,001.8 crore in the third quarter for the current fiscal from Rs 1,453.8 crore in the October-December quarter of the financial year 2016-2017 while the provisioning for the October-December period came at Rs 421.3 crore, up by 265.1% on a yearly basis. EPS (earnings per share) rose to Rs 4.7 per equity share in the Oct-Dec quarter from Rs 4.2 in the year-ago quarter.
The gross NPAs eased to 1.72% in the fiscal third-quarter from 1.82% in the third quarter a year earlier while the net NPAs reduced to 0.93% from 1.04%. However, in absolute terms, Yes Bank’s gross NPAs stood at Rs 2,974.3 crore and net NPAs at Rs 1,595.1 crore. Yes Bank said the balance sheet crossed Rs 2.5 lakh crore and advances crossed Rs 1.5 lakh crore, for the first time ever. Shares of Yes Bank extended gains in today’s trade rising as much as 4.09% to the day’s high of Rs 356.5 before closing 0.66% down at Rs 340.25 on BSE.
Other key highlights of Q3 results
- Net interest income at Rs 1,888.8 crore, up 26.8% whereas non-interest income at Rs 1,422.3 crore, up 39.9%.
- NIMs (net interest margins) at 3.5%. Total Assets grew by 36.2% to Rs 2,65,432 crore on a yearly basis. Deposits grew by 29.7% to Rs 1,71,731.4 crore.
- Saving account deposits surged 45.4% to Rs 42,684.8 crore while current account deposits saw a rise of 53% to Rs 22,604.2 crore. Total capital adequacy at 19.5%. Total capital funds stand at Rs 43,596.3 crore.
Commenting on the results and financial performance, Mr. Rana Kapoor, Managing Director & CEO, YES BANK said, “YES Bank has delivered another quarter of satisfactory performance with sustained earnings delivery and accelerated growth momentum with the Bank achieving a Balance Sheet size beyond Rs 2.5 Lakh Crores and Advances Book in excess of Rs 1.7 Lakh Crores. Granularity in the Balance-sheet continues to improve with Retail Banking Advances more than doubling in a year to 11.8% of outstanding book and CASA Ratio of 38.0%. YES Bank’s Asset Quality continues to demonstrate resilience with Stable Asset quality parameters that includes meaningful repayments from accounts previously observed under RBI RBS review for FY17
On the Digital front, Bank continues to reap benefits from its A.R.T. strategy proven through its leadership position in Merchant Payments for UPI with market share in excess of 75%. Further, the Bank is working on multiple fronts in the Fintech domain towards creating Operational and Cost Efficiencies through AI & Robotics; Big Data Analytics for Customer Acquisition & Crossselling and Open Innovation to create Enterprise Solutions for our Corporate Customers by leveraging YES BANK’s state-of-the-art API Banking platform”