Fino Payment Bank Q3 Review - CASA, CMS Continued To Remain Key Margin Expansion Driver: 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.Fino Payment Bank Ltd. continued to sustain improving trajectory in profit after tax margin for the third consecutive quarter – as reflected in 150 bps QoQ profit after tax margin expansion to 6.1% in Q3 FY23 versus 3.5% / 4.5% in Q1 FY23 / Q2 FY23, respectively. Increasing share of current account, savings account plus cash management system business (more than 40% margins) to 26% as on Dec-22 from 16% in Dec-21 and benefits arising from operating leverage remained key earnings drivers. Overall Fino Payment Bank's profit after tax grew 38% QoQ to Rs 190 million, translating into 15% return on equity in Q3 FY23. While gross revenue grew by 4% QoQ, core revenue (excluding interest income) growth remained muted at 2% QoQ due to 11% QoQ decline in Aadhaar enables payment systems revenue and sequentially flat CASA revenue. However, gradually improving its liability franchise as reflected in 66% YoY growth in deposits to Rs 9.76 billion and new customer acquisition of 0.7 million during Q3 FY23 resulted in 24% QoQ increase in interest income on deposit float. Total throughput grew 9% QoQ to Rs 659 billion driven by 27% QoQ growth in CMS volumes. Mini ATM and AePS throughput continued to remain sluggish..Click on the attachment to read the full report:.MAS Financial Services Q3 Results Review - Steady Earnings Momentum With Healthy AUM Growth: Motilal Oswal.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.

Fino Payment Bank Q3 Review - CASA, CMS Continued To Remain Key Margin Expansion Driver: ICICI Securities

Management is cognisant of volatile margin trend; initiated measures to protect margins going forward.

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