Axis Bank Q3 Review - Operating Metrics Sustain; Rise In Credit Cost Offset By Trading Gains: ICICI Securities

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. .ICICI Securities Report.Axis Bank Ltd.’s Q3 FY23 earnings beat our and consensus expectations reporting profit after tax of Rs 58.5 billion – up 10% QoQ/ 62% YoY. Once again, it reported consolidated return on asset (annualised) at 2.0% and return on equity at 19.8%. Beat was across operating metrics, especially with net interest margins soaring as much as 30 bps QoQ to 4.26%. Fee income traction was strong with retail fee growing 30% YoY/ 8% QoQ. ‘Opex to assets’ was flat QoQ at 2.24% with a mere 8% YoY rise in opex. Slippages inched up a tad as Rs 4.1 billion was on account of non-recurring or prudent items, which adversely impacted gross slippages by 22 bps, gross non-performing asset by 5 bps and credit cost by 11 bps. Credit cost normalised to 0.75%-0.8%, which was offset by treasury gains of Rs 4.3 billion. Advances grew 15% YoY / 4% QoQ with domestic advances growing 17% YoY / 5% QoQ. Going forward, given moderate balance sheet expansion (3% QoQ / 10% YoY), we believe Axis Bank needs to accelerate its retail term-deposit engine to support asset growth with the credit/deposit ratio now at 90%. Also, sustained efforts are needed to drive ‘cost to assets’ below 2% in the medium term..Click on the attachment to read the full report:.More Research Reports On Axis Bank's Q3 FY23 Results Reviews.Earnings Momentum Steady; Margin Improves Further: Motilal OswalOpex Contained; Retail Deposits Traction A Monitorable: Dolat Capital.DISCLAIMERThis 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.

Axis Bank Q3 Review - Operating Metrics Sustain; Rise In Credit Cost Offset By Trading Gains: ICICI Securities

Axis Bank’s Q3 earnings beat our and consensus expectations reporting profit after tax of Rs 58.5 billion – up 10% QoQ/ 62% YoY.

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