Axis Bank - Quarterly Results 2021-22 for Q3FY22

Major Highlights of Q3FY22

Strong growth across deposits and loans, robust operating performance, improving asset quality

Strong growth in granular deposits

Deposits on QAB basis grew by 22% YOY and 3% QOQ, Net Loans grew 17% YOY and 7% QOQ
On QAB basis, SA grew 24% YOY and 4% QOQ, CA deposits grew 27% YOY and 13% QOQ
On QAB basis, CASA grew 25% YOY and 7% QOQ, CASA ratio stood at 44%, up 189 bps YOY and 146 bps QOQ
On QAB basis, Term deposits grew 19% YOY and 0.5% QOQ, of which Retail term deposits grew 12% YOY and 1% QOQ

Loan growth delivered in all business segments

Retail loans grew 18% YOY and 6% QOQ, ~80% of the book is secured. Home loans and SBB¹ portfolio grew 20% YOY & 51% YOY
Q3FY22 Retail disbursements were up 37% YOY and 19% QOQ basis Home loan, SBB, PL disbursements up 22%, 88% & 39% YOY
SME loans grew 20% YOY and 9% QOQ, SME disbursements were up 91% QOQ
Corporate loans grew 13% YOY & 7% QOQ; Mid-corporate book grew 44% YOY & 17% QOQ

Robust operating performance

Operating profit grew 17% YOY and 4% QOQ, PAT at `3,614 crores, up 224% YOY and 15% QOQ
NII grew 17% YOY and 10% QOQ, NIM improved by 14 bps QOQ to 3.53%, improved 2 bps YOY²
Fee income grew 15% YOY and 3% QOQ, granular fee constituted 92% of overall fees
Retail fee grew 16% YOY and 6% QOQ; Retail cards fee grew 21% YOY and 8% QOQ

Well capitalized with adequate liquidity buffers

Overall capital adequacy ratio (CAR)³ stood at 18.72% with CET 1 ratio of 15.33%
`5,012 crores of COVID provisions, not considered for CAR calculation provide cushion of 63 bps over the reported CAR
Average Liquidity Coverage Ratio (LCR) during Q3FY22 was over 113%
Excess SLR of `82,935 crores

Continue to maintain strong position in Payments and Digital space

Over 0.77 million credit cards acquired in Q3FY22, highest ever for any quarter; incremental CIF market share of ~16% in last 2 quarters
2^nd largest player in Merchant Acquiring with terminal market share of 16%, incremental share of 42% in 8MFY22
15% market share in UPI transactions & 20% in P2M Acquiring (by throughput) in Q3
Among the highest rated mobile apps with Apple App | Google Play store ratings of 4.6 | 4.6; mobile banking market share stood at 15%

Declining slippages and NPA's, moderating credit costs, limited restructuring

Gross loan slippages declined by 24% QOQ. Net loan slippage ratio (annualized) stood at 0.06%, improving 380 bps YOY and 38 bps QOQ
Annualized credit cost for Q3FY22 at 0.44%, declined by 258 bps YOY⁴ and 10 bps QOQ
GNPA at 3.17% declined by 138 bps YOY & 36 bps QOQ, NNPA at 0.91% declined 28 bps YOY & 17 bps QOQ, PCR healthy at 72%
Coverage⁵ ratio at 130% improved 576 bps QOQ and 1406 bps YOY, Covid-19 restructuring implemented loans at 0.63% of GCA

Key subsidiaries consistently delivered strong performance

Domestic subsidiaries reported a total PAT of `872 crores in 9MFY22, up 61% YOY; Return on investments in subsidiaries at 64%
Axis AMC's 9MFY22 PAT grew 54% YOY, Axis Securities 9MFY22 PAT grew 48% YOY
Axis Finance ROE stood at 19.8%, asset quality metrics remain stable with net NPA of 0.9%, near zero restructuring
Axis Capital completed 43 ECM deals in 9MFY22, with PAT up 88% YOY

^1. SBB : Small Business Banking
^2. NIM for Q3FY21 adjusted for interest on income tax refund of `153 crores, translating to 8 bps
^3. including profit for 9MFY22
^4. per IRAC
^5. Coverage Ratio = Aggregate provisions (specific + standard + additional + Covid) / IRAC GNPA
QAB: Quarterly Average Balance

Key Metrics for Q3FY22

Snapshot (As on December 31^st, 2021) (in ` Crores)

Profit & Loss	Absolute (in ` Crores)		YOY Growth
	Q3FY22	9MFY22	Q3FY22	9MFY22
Net Interest Income	8,653	24,313	17%	12%
Fee Income	3,344	9,242	15%	26%
Operating Expenses	6,331	17,034	25%	31%
Operating Profit²	6,162	18,276	17%	5%
Net Profit	3,614	8,908	224%	128%

² Prior year numbers are restated to reflect the change in presentation of provision for depreciation on investments as per guidelines issued by RBI in Aug 21 and reclassification of income from recoveries in written off accounts

Balance Sheet	Absolute (in ` Crores)	YOY Growth
	Q3FY22
Total Assets	11,13,066	20%
Net Advances	6,64,866	17%
Total Deposits^	7,71,670	20%
Shareholders' Funds	1,10,746	12%

^ period end balances

Key Ratios	Absolute (in ` Crores)
	Q3FY22 / 9MFY22	Q3FY21 / 9MFY21
Diluted EPS* (in `) (Q3/9M)	46.61 / 38.44	14.47 / 17.61
Book Value per share (in `)	361	323
ROA* (Q3/9M)	1.30% / 1.12%	0.48% / 0.56%
ROE* (Q3/9M)	14.19% / 12.01%	4.91% / 6.13%
Gross NPA Ratio	3.17%	4.55%^**
Net NPA Ratio	0.91%	1.19%^**
Basel III Tier I CAR¹	16.46%	16.48%
Basel III Total CAR¹	18.72%	19.31%

^* Annualised

¹ including profit for 9MFY22

^** as per IRAC norms; for like to like comparison

Deposits (QAB)

22% YOY

CASA+RTD^#

18% YOY (QAB^#) | 15% YOY (End Balance)

^#QAB - Quarterly Average Balance

Advances

17% YOY

Retail

SME

Corporate

18% YOY | 20% YOY | 13% YOY

Profit After Tax (` in Crores)

224% YOY

Q3FY22

3,614
Q3FY21

1,117

Provisions (` in Crores)

64% YOY

Q3FY22

1,335
Q3FY21^**

3,757

^** as per IRAC norms; for like to like comparison

Domestic Branch Network*

Dec-21

4,700
Mar-21

4,594
Mar-20

4,528
Mar-19

4,050

* Includes extension counters

Results at a Glance

Net profit at `3,614 crores, up 224% YOY and 15% QOQ; Operating profit up 17% YOY & 4% QOQ

NII grew 17% YOY & 10% QOQ, NIM* improved 14 bps QOQ and 2 bps YOY^ to 3.53%
Fee income grew 15% YOY and 3% QOQ, granular fee constituted 92% of overall fees
Retail fee grew 16% YOY and 6% QOQ; Retail Cards fee grew 21% YOY and 8% QOQ

Loan growth delivered in all business segments

Retail loans grew 18% YOY and 6% QOQ, Retail disbursements up 37% YOY and 19% QOQ
SME loans grew 20% YOY and 9% QOQ
Corporate loan book grew 13% YOY and 7% QOQ, Mid-corporate book grew 44% YOY & 17% QOQ

Strong growth in granular deposits

Deposits on QAB¹ basis grew by 22% YOY & 3% QOQ
On QAB basis, CASA deposits grew 25% YOY & 7% QOQ; CASA ratio stood at 44%, up 189 bps YOY
On QAB basis, Retail term deposits grew 12% YOY and 1% QOQ
2.15 million new liability relationships added in the quarter

Retain strong positioning in Payments and Digital Banking

Credit card spends up 52% YOY & 22% QOQ
2^nd largest player in Merchant Acquiring with market share of 16%, incremental share of 42% in 8MFY22
15% market share in UPI transactions and 20% in UPI P2M acquiring
The Bank's digital auto loans and personal loans went live on the account aggregator framework

Well capitalized with adequate liquidity buffers

Overall capital adequacy ratio (CAR) including profit for 9MFY22 stood at 18.72% with CET 1 ratio of 15.33%
COVID provisions of `5,012 crore, not in CAR calculation provides additional cushion of 63 bps
Average Liquidity Coverage Ratio (LCR) during Q3FY22 was over 113%, excess SLR² of `82,935 crores

Declining loan slippages and NPA's, moderating credit costs, limited restructuring

Net loan slippage ratio (annualized) at 0.06%, improved 380 bps YOY and 38 bps QOQ
Annualized credit cost for Q3FY22 at 0.44%, declined by 258 bps YOY & 10 bps QOQ, PCR healthy at 72%
GNPA at 3.17% declined by 138 bps YOY & 36 bps QOQ, NNPA at 0.91% declined 28 bps YOY & 17 bps QOQ
On an aggregated basis³, Coverage ratio at 130% improved 576 bps QOQ & 1,406 bps YOY
Covid-19 restructuring implemented loans at 0.63% of GCA, amongst the lowest in the industry

Bank's domestic subsidiaries deliver strong performance, annualized profit⁴ closer to ~ `1,157 crore

Axis AMC's 9MFY22 PAT grew 54% YOY to `252 crores, AAUM growth of 43% YOY
Axis Finance 9MFY22 PAT grew 81% to `251 crores; asset quality remains stable, with near zero restructuring
Axis Capital 9MFY22 PAT stood at `166 crores, up 88% YOY
Axis Securities 9MFY22 PAT at `174 crores, was up 48% YOY

* Net Interest Margins
^ NIM for Q3FY21 adjusted for interest on income tax refund of `153 crores, translating to 8 bps
¹ QAB – Quarterly Average Balance
² Statutory Liquidity ratio
³ (specific+ standard+ additional + Covid)
⁴ Figures of subsidiaries are as per Indian GAAP, as used for consolidated financial statements of the Group