Axis Bank - Quarterly Results 2023-24

Major Highlights of

Q3FY24

Q3FY24 operating profit `9,141 crores, up 6% QOQ, PAT at ``6,071 crores up 4% QOQ; Consolidated ROE at 18.61%, aided by a balanced sequential deposit and loan growth of 5% and 4% respectively

Healthy operating performance

Net Interest Income grew 9% YOY and 2% QOQ, Net Interest Margin at 4.01%
Fee income grew 29% YOY and 4% QOQ, granular fee constituted 93% of overall fees, Retail fee grew 36% YOY and 6% QOQ
Core operating revenue up 14% YOY and 2% QOQ, operating profit grew 6% QOQ
Consolidated ROA (annualized) at 1.84%, with subsidiaries contributing 9 bps

Strong loan growth delivered across all business segments

Advances grew 22% YOY and 4% QOQ; Advances (gross of loans sold under IBPC) grew by 23% YOY and 4% QOQ
Retail loans grew 27% YOY and 5% QOQ of which Rural loans grew 34% YOY and 7% QOQ, SBB¹ book grew 40% YOY and 6% QOQ
Corporate loans (gross of IBPC sold) up 15% YOY & 3% QOQ, Mid-Corporate (MC) up 30% YOY & 6% QOQ, SME loans up 26% YOY & 4% QOQ
SBB+SME+MC mix at ₹1,986 bn | 21% of total loans, up ~620 bps in last 3 years

Retail term deposits gaining traction, CASA ratio among the best in the industry

On MEB basis, total deposits up 18% YOY & 5% QOQ; On QAB basis, total deposits grew 18% YOY & 4% QOQ
On MEB basis, retail term deposits (RTD) grew 17% YOY & 2% QOQ, SA grew 16% YOY, CA grew 5% YOY
On QAB basis, RTD grew 15% YOY & 3% QOQ, SA grew by 16% YOY, CA grew 5% YOY & 4% QOQ
CASA ratio on both QAB and MEB basis stood at ~42%, among the best in the industry
Average LCR during Q3FY24 was ~118%, Average LCR Outflow rates improved by ~600 bps in last 2 years

Well capitalized with self-sustaining capital structure; adequate liquidity buffers

Self sustaining capital structure with net organic accretion to CET-1* of 39 bps in 9MFY24, negative impact of regulatory changes on CET-1 of 70 bps
Overall capital adequacy ratio (CAR*) stood at 16.63% with CET 1* ratio of 13.71%
`5,012 crores of COVID provisions not considered for CAR calculation, provides cushion of 43 bps over the reported CAR
Excess SLR of `72,674 crores

Continue to maintain strong position in Payments and Digital space

Largest player in Merchant Acquiring business in India with terminal market share of ~19%, incremental share of ~26% in last one year²
1.26 million credit cards acquired in Q3FY24, CIF market share of 14%²
Axis Mobile app is the world’s highest ³ rated mobile banking app on Google Play store with ratings of 4.8 and ~13 million MAU
400+ APIs hosted on Bank’s API Developer Portal with 285+ Retail APIs

Declining slippages, gross NPA and credit cost

GNPA at 1.58% declined by 80 bps YOY and 15 bps QOQ, NNPA at 0.36% declined 11 bps YOY, PCR healthy at 78%
Coverage⁴ ratio at 153%, Standard Covid-19 restructuring implemented loans at 0.16% of GCA and declined 14 bps YOY
Net slippage ratio (annualized) at 0.50% declined 43 bps YOY and 9 bps QOQ, Gross slippage ratio (annualized) at 1.62% declined 40 bps YOY
Annualized credit cost at 0.28%, declined 37 bps YOY and 14 bps QOQ

Key subsidiaries continue to deliver steady performance

Total 9MFY24 PAT of domestic subsidiaries at `1108 crs, up 17% YOY; Return on investments in domestic subsidiaries at 50%
Axis Finance 9MFY24 PAT up 25% YOY, ROE at 16.4%, total CAR healthy at 18.8%, asset quality metrics improve with GNPA declining 31 bps YOY to 0.50%
Axis AMC’s 9MFY24 PAT at `297 crores, Axis Securities 9MFY24 PAT up 31% YOY
Axis Capital 9MFY24 PAT stood at ₹108 crores and executed 71 investment banking deals in 9MFY24

9MFY24 PAT at `17,732 crores up 16% YOY, consolidated ROE at 18.86% up 82 bps YOY

IBPC: Inter Bank Participation Certificates
QAB: Quarterly Average Balance
MAU: Monthly Active Users engaging in financial and non-financial transactions
¹ SBB : Small Business Banking
² Based on RBI data as of Nov'23
³ across 64 global banks, 82 fintechs and 9 neo banks with 2.4 mn+ reviews
⁴ Coverage Ratio = Aggregate provisions (specific + standard + additional + Covid) / IRAC GNPA
* including profits for 9MFY24, net organic accretion = capital accreted – capital consumed (excluding consumption for regulatory changes in risk weights)

Key Metrics for Q3FY24

Snapshot (As on December 31^st, 2023) (in ` Crores)

Profit & Loss	Absolute (in ` Crores)			QOQ	YOY Growth
	Q3FY24	Q2FY24	9MFY24	Q3FY24	Q3FY24	9MFY24
Net Interest Income	12,532	12,315	36,805	2%	9%	18%
Fee Income	5,169	4,963	14,620	4%	29%	29%
Operating Expenses	8,946	8,717	25,894	3%	32%	32%
Operating Profit	9,141	8,632	26,587	6%	(1%)	16%
Core Operating Profit	8,850	8,733	25,878	1%	-	12%
Profit after Tax	6,071	5,864	17,732	4%	4%	16%

Balance Sheet	Absolute (in ` Crores)	YOY Growth
	Q3FY24
Total Assets	13,98,541	14%
Net Advances	9,32,286	22%
Total Deposits	10,04,900	18%
Shareholders' Funds	1,42,984	9%

Key Ratios	Absolute (in ` Crores)
	Q3FY24 / 9MFY24	Q3FY23 / 9MFY23
Diluted EPS (Annualised in `)	77.86 / 76.10	74.60 / 65.90
Book Value per share (in `)	464	425
Standalone ROA (Annualised)	1.75% / 1.77%	1.92% / 1.73%
Standalone ROE (Annualised)	18.07% / 18.46%	19.34% / 17.58%
Cons ROA (Annualised)	1.84% / 1.80%	2.00% / 1.76%
Cons ROE (Annualised)	18.61% / 18.86%	19.81% / 18.04%
Gross NPA Ratio	1.58%	2.38%
Net NPA Ratio	0.36%	0.47%
Basel III Tier I CAR ^	14.18%	16.15%
Basel III Total CAR ^	16.63%	19.51%

^ including profit after tax for 9M

Deposits

18% YOY^(a)

18% YOY^(b)

CASA

12% YOY^(a) | 13% YOY ^(b)

(a) Period end balances (b) Quarterly average balance

Advances

22% YOY^(c)

23% YOY^(d)

Retail

SME

Corporate

27% YOY | 26% YOY | 13% YOY^(c) 15% YOY^(d)

(c) Overall (d) Overall (gross of IBPC sold)

Operating Profit (in ` Crores)

16% YOY

9MFY24

26,587
9MFY23

22,881

Profit After Tax (in ` Crores)

16% YOY

9MFY24

17,732
9MFY23

15,308

We have a very well distributed branch network;
added 350 branches in 9MFY24 of which 100 in Q3FY24

Domestic Branch Network*

Dec-23

5,252
Mar-23

4,903
Mar-22

4,758
Mar-21

4,594
Mar-20

4,528

* Includes extension counters

Performance at a Glance

Healthy operating performance

Net Interest Income grew 9% YOY and 2% QOQ, Net Interest Margin at 4.01%
Core Operating revenues grew 14% YOY and 2% QOQ, operating profit grew 6% QOQ
Consolidated ROE | ROA at 18.61% | 1.84%, subsidiaries contributed 54 bps | 9 bps respectively

Strong loan growth delivered across all business segments

Advances (gross of IBPC sold) up 23% | 4%, Rural loans grew 34% YOY & 7% QOQ
Small Business Banking loans grew 40% YOY & 6% QOQ, Mid-Corporate (MC) book grew 30% YOY
SBB + SME + MC mix at ₹1,98,553 crores | 21% of loans, up ~620 bps in last 3 years

Retail term deposits gaining traction, CASA ratio among the best in the industry

On a QAB¹ basis, RTD grew 15% YOY & 3% QOQ, total deposits grew by 18% YOY & 4% QOQ
On QAB,CASA grew 13% YOY and 1% QOQ, CASA ratio stood at 42%
Average LCR²during Q3FY24 was ~118%, outflow rates improved ~ 600 bps over last 2 years

Well capitalized with self-sustaining capital structure

Overall capital adequacy ratio (CAR) including profit stood at 16.63% with CET 1 ratio of 13.71%
Self-sustaining capital structure with net organic accretion to CET-1 of 39 bps in 9MFY24
COVID provisions of `5,012 crores, not in CAR calculation provides additional cushion of ~43 bps

Continue to maintain strong position in Payments and Digital Banking

Axis Mobile & Axis Pay have ~10 mn non-Axis Bank customers
100+ digital partnerships across platforms and ecosystems; ~18.8 mn customers on WhatsApp banking
Axis Mobile remains the world’s³ highest rated MB app on Google Play store with rating of 4.8; On the iOS app store our ratings increased from 4.6 to 4.7 during the quarter; ~13 mn MAU⁴
Credit card CIF market share at 14%, Retail Card spends grew 88% YOY and 13% QOQ

Declining slippages, gross NPA and credit cost

PCR healthy at 78%; On an aggregated basis⁵, Coverage ratio at 153%
Net slippage ratio⁶ at 0.50% declined 43 bps YOY & 9 bps QOQ, Gross slippage ratio⁶ at 1.62%, declined 41 bps YOY
Q3FY24 net credit cost⁶ at 0.28%, declined 14 bps QOQ

Key domestic subsidiaries⁷ continue to deliver steady performance

9MFY24 profit at `1,108 crores up 17% YOY, with a return on investment in domestic subsidiaries of 50%
Axis Finance 9MFY24 PAT grew 25% YOY to `425 crores; asset quality metrics improve, ROE at 16.4%
Axis AMC 9MFY24 PAT stood at `297 crores, Axis Securities 9MFY24 PAT grew 31% YOY to `198 crores
Axis Capital 9MFY24 PAT stood at `108 crores and executed 71 investment banking deals in 9MFY24

¹ QAB – Quarterly Average Balance,
² Liquidity Coverage Ratio,
³ across 64 global banks, 82 fintechs and 9 neo banks with 2.4 mn+ reviews
⁴ Monthly active users, engaging in financial and non-financial transactions,
⁵ (specific+ standard+ additional + COVID)
⁶ Annualized
⁷ Figures of subsidiaries are as per Indian GAAP, as used for consolidated financial statements of the Group

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