BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Prabhudas Lilladher Report
Federal Bank Ltd. reported its strongest quarter with beat on all fronts. Net interest income grew by 19% YoY, in tandem with loan growth (up 20% YoY) as net interest margin was at multi-quarter high of 3.6%.
Loan growth was broad based with corporate/small and medium enterprise outpacing retail. Competitive intensity in wholesale lending in reducing while private capex demand is improving.
FY23 loan growth guidance is 18-20% while NIM target is raised by 5-10 basis points to 3.3%. Fees were healthier while opex was controlled and cost-income is expected to reduce.
Credit quality remains resilient with one time restructuring pool performing well. We raise FY23/24 profit after tax by 16%/13% each and over FY22-25 earnings could see a 25% compound annual growth rate.
Federal Bank warrants a rerating owing to consistent boost in core profitability.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR