• Q4 FY22
  • Quarter-4 Results 2021-22

2021-2022 Quarterly Results - Q4

Major Highlights of Q4FY22

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

Healthy growth in granular deposits

  • Deposits on QAB basis grew by 19% YOY and 4% QOQ, deposits MEB grew 6% QOQ
  • On QAB basis, SA grew 19% YOY and 2% QOQ, CA deposits grew 19% YOY and 3% QOQ
  • On QAB basis, CASA grew 19% YOY and 2% QOQ, CASA ratio stood at 43%, up 70 bps YOY
  • On QAB basis, Term deposits grew 19% YOY and 6% QOQ

Strong loan growth delivered across focused business segments

  • Retail loans grew 21% YOY and 9% QOQ, SBB1 and Rural loans portfolio grew 60% YOY & 29% YOY
  • Q4FY22 Retail disbursements were up 21% YOY and 30% QOQ basis SBB, Rural and PL disbursements up 85%, 53% & 23% YOY
  • SME loans grew 26% YOY and 13% QOQ, SME disbursements were up 27% QOQ, Mid-corporate book grew 45% YOY & 13% QOQ
  • Net Loans grew 15% YOY and 6% QOQ

Robust operating performance

  • PAT at `4,118 crores, up 54% YOY and 14% QOQ, Annualized Q4FY22 ROE at 15.87%, improving 415 bps YOY & 168 bps QOQ
  • Fee income grew 11% YOY and 12% QOQ, granular fee constituted 91% of overall fees. Fee income for FY22 grew 22%
  • Operating profit grew 13% YOY and 5% QOQ , NII grew 17% YOY and 2% QOQ
  • Retail fee grew 14% YOY and 14% QOQ; Retail assets (excl. cards) fee grew 41% YOY and 16% QOQ

Well capitalized with adequate liquidity buffers

  • Overall capital adequacy ratio (CAR) stood at 18.54% with CET 1 ratio of 15.24%
  • `5,012 crores of COVID provisions, not considered for CAR calculation provide cushion of 60 bps over the reported CAR
  • Average Liquidity Coverage Ratio (LCR) during Q4FY22 was 116% improving QOQ
  • Excess SLR of `96,190 crores

Continue to maintain strong position in Payments and Digital space

  • Over 1.1 million credit cards acquired in Q4FY22, highest ever for any quarter; incremental CIF market share of ~17% in Sep'21-Feb'22
  • 2nd largest player in Merchant Acquiring with terminal market share of 16%, incremental share of 31% in 11MFY22
  • 15% market share in UPI transactions & 19% in P2M Acquiring (by throughput) in Q4
  • Among the highest rated mobile apps with Apple App | Google Play store ratings of 4.6 | 4.6, Mobile banking market share stood at 14%

Declining gross slippages and NPA’s, moderating credit costs, limited restructuring

  • Net loan slippages declined by 75% QOQ. Net slippage ratio (annualized) stood at 0.13%, improving 115 bps YOY and 42 bps QOQ
  • Annualized credit cost for Q4FY22 at 0.32%, declined by 116 bps YOY and 12 bps QOQ
  • GNPA at 2.82% declined by 88 bps YOY & 35 bps QOQ, NNPA at 0.73% declined 32 bps YOY & 18 bps QOQ, PCR healthy at 75%
  • Coverage2 ratio at 1.77%, Standard Covid-19 restructuring implemented loans at 0.52% of GCA

Key subsidiaries consistently delivered strong performance

  • Domestic subsidiaries reported a total PAT of `1,195 crores in FY22, up 44% YOY; Return on investments in subsidiaries at 54%
  • Axis AMC's FY22 PAT grew 47% YOY, Axis Securities FY22 PAT grew 40% YOY
  • Axis Finance FY22 PAT grew 72% YOY, ROE stood at 20%, asset quality metrics improve with net NPA declining 151 bps YOY to 0.46%
  • Axis Capital completed 44 ECM deals in FY22, with PAT up 20% YOY

Q4 FY22 Consolidated ROE (annualized) at 16.67% with subsidiaries contributing 80 bps

1. SBB : Small Business Banking
2. Coverage Ratio = Aggregate provisions (specific + standard + additional + Covid) / IRAC GNPA
QAB: Quarterly Average Balance

Key Metrics for Q4FY22

Snapshot (As on March 31st, 2022) (in ` Crores)

Profit & Loss Absolute (in ` Crores) YOY Growth
  Q4FY22 FY22 Q4FY22 FY22
Net Interest Income 8,819 33,132 17% 13%
Fee Income 3,758 13,001 11% 22%
Operating Expenses 6,576 23,611 23% 28%
Operating Profit 6,466 24,742 13% 7%
Net Profit 4,118 13,025 54% 98%
Balance Sheet Absolute (in ` Crores) YOY Growth
  FY22    
Total Assets 11,75,178   19%
Net Advances 7,07,696   15%
Total Deposits^ 8,21,721   18%
Shareholders' Funds 1,15,025   13%

^ period end balances

Key Ratios Absolute  
  FY22 FY21
Diluted EPS* (in `) (Q4/FY) 54.27 / 42.35 35.37 / 22.09
Book Value per share (in `) 375 332
ROA* (Q4/FY) 1.46 / 1.21 1.11 / 0.70
ROE* (Q4/FY) 15.87 / 12.91 11.72 / 7.55
Gross NPA Ratio 2.82% 3.70%
Net NPA Ratio 0.73% 1.05%
Basel III Tier I CAR 16.34% 16.47%
Basel III Total CAR 18.54% 19.12%

* Annualised

Deposits# 19% YOY
CASA+RTD#

13% YOY (QAB#) | 11% YOY (End Balance)

#QAB - Quarterly Average Balance

Advances 15% YOY
Retail
SME
Corporate

21% YOY | 26% YOY | 4% YOY

 

Operating Profit (in ` Crores) 7% YOY
  • FY22
    24,742
  • FY21
    23,128
Profit After Tax (in ` Crores) 98% YOY
  • FY22
    13,025
  • FY21
    6,588

 

Performance at a Glance

Q4FY22

  • Net profit at `4,118 crores, up 54% YOY & 14% QOQ
  • Operating profit grew 13% YOY & 5% QOQ, NII grew 17% YOY & 2% QOQ, NIM stood at 3.49%
  • Fee income grew 11% YOY and 12% QOQ, Retail fee grew 14% YOY and 14% QOQ

FY22

  • Net profit at `13,025 crores, up 98% YOY
  • NII grew 13% YOY; Fee income grew 22% YOY

Strong growth witnessed in customer acquisitions, driving healthy deposit growth

  • Added 2.4 mn new liability relationships in Q4, up 30% YOY & 11% QOQ, 8.6 mn for FY22, up 29% YOY
  • On period end basis, CASA grew 16% YOY & 7% QOQ; CASA ratio stood at 45%

Wealth Management business Burgundy continues to show strong growth

  • Total AUMs over `2.6 trillion up 22% YOY with Burgundy Private AUMs at `86,959 crores up 74% YOY
  • Burgundy Private now covers over 3,490 families up from 1,666 families in last one year

Loan growth delivered across focused business segments

  • Retail loans grew 21% YOY and 9% QOQ, SBB and Rural loans grew 60% YOY and 29% YOY respectively
  • SME loans grew 26% YOY and 13% QOQ
  • Mid-corporate book grew 45% YOY & 13% QOQ

Retain strong positioning in Payments and Digital Banking

  • Credit cards - incremental market share stood at around 17%*; spends were up 46% YOY & 3% QOQ
  • The Bank crossed a significant milestone of 2 million Flipkart Axis Bank Credit Cards in force
  • 15% market share in UPI transactions and 19% in UPI P2M acquiring
  • Among the highest rated mobile apps with ratings of 4.6**, mobile banking market share stood at 14%

Well capitalized with adequate liquidity buffers

  • Overall capital adequacy ratio (CAR) for FY22 stood at 18.54% with CET 1 ratio of 15.24%
  • COVID provisions of `5,012 crores, not in CAR calculation provides additional cushion of 60 bps
  • Average Liquidity Coverage Ratio (LCR) during Q4FY22 was over 116%, excess SLR2 of `96,190 crores

Declining net slippages and NPA’s, moderating credit costs, limited restructuring

  • Net slippages declined 75% QOQ, Net slippage ratio (annualized) at 0.13%, improved 42 bps QOQ
  • Annualized credit cost for Q4FY22 at 0.32%, declined by 116 bps YOY & 12 bps QOQ, PCR healthy at 75%
  • GNPA at 2.82% declined by 88 bps YOY & 35 bps QOQ, NNPA at 0.73% declined 32 bps YOY & 18 bps QOQ,
  • On an aggregated basis3, Coverage ratio at 132%
  • Covid-19 restructuring implemented loans at 0.52% of GCA, amongst the lowest in the industry

Bank’s domestic subsidiaries4 deliver strong performance, combined FY22 PAT grew 44% to `1,195 crores

  • Axis AMC’s FY22 PAT grew 47% YOY to `357 crores, AAUM growth of 32% YOY
  • Axis Capital FY22 PAT stood at `200 crores, up 20% YOY
  • Axis Finance FY22 PAT grew 72% YOY to `364 crores; asset quality remains stable, with near zero restructuring
  • Axis Securities FY22 PAT at `232 crores, was up 40% YOY

* For the period Aug 21 to Feb 22 based on issuances
** ratings on Google Play & Apple App stores
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