• Q1 FY23

  • Quarter-1 Results 2022-23

Major Highlights of

Q1FY23

Strong core operating performance and margin expansion, sequential PAT growth, healthy growth in average deposits and loans

Strong core operating performance

  • NIM at 3.60%, improved by 14 bps YOY and 11 bps QOQ, NII grew 21% YOY and 6% QOQ
  • Fee income grew 34% YOY, granular fee constituted 93% of overall fees, Retail fee grew 43% YOY
  • Core operating profit grew 17% YOY, PAT at `4,125 crores grew sequentially, up 91% YOY
  • Consolidated Q1FY23 ROE (annualized) at 15.66%, up 587 bps YOY

Strong loan growth delivered across focused business segments

  • Domestic loan book grew 15% YOY; Retail now constitutes 59% of the overall loan book
  • Retail loans grew 25% YOY and 3% QOQ, SBB1, Cards and Rural loans portfolio grew 74% YOY, 42% YOY & 42% YOY respectively
  • Q1FY23 Retail disbursements were up 77% YOY; SBB, Rural and PL disbursements were up 111% , 177% & 42% YOY
  • SME loans grew 27% YOY, Mid-Corporate(MC) up 54% YOY, SBB+SME+MC mix at `1,299 bn | 19% of loans, up ~500 bps in last 2 years

Healthy growth in granular deposits, improving quality visible

  • Deposits on QAB basis grew by 14% YOY and 2% QOQ; QAB SA grew 16% YOY and 4% QOQ, QAB CA deposits grew 15% YOY
  • On QAB basis CASA grew 16% YOY and 1% QOQ, CASA ratio stood at 43%, up 53 bps YOY
  • On QAB basis, Term deposits grew 13% YOY and 3% QOQ
  • LCR during Q1FY23 was 116%, Exit LCR of ~123%

Well capitalized with adequate liquidity buffers


  • Overall capital adequacy ratio (CAR) including profit for Q1FY23 stood at 17.83% with CET 1 ratio of 15.16%
  • `5,012 crores of COVID provisions not considered for CAR calculation, provides cushion of 58 bps over the reported CAR
  • Excess SLR of `75,636 crores
  • Moody's upgraded the Bank's baseline credit assessment (BCA) to "baa3" from "ba1" during the quarter

Continue to maintain strong position in Payments and Digital space

  • 0.99 million credit cards acquired in Q1FY23, incremental CIF market share of ~17% in last three reported months*
  • 2nd largest player in Merchant Acquiring with terminal market share of 17%, incremental share of 30% in last three reported months*
  • 16% market share in UPI transactions & 22% in P2M Acquiring (by throughput) in Q1FY23
  • Axis Mobile app ratings of 4.6 | 4.6 at Apple App | Google Play store, 70+ Corporate APIs now live as part of Project Neo

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

  • Gross slippage ratio (annualized) at 2.05%, declined 210 bps YOY and 33 bps QOQ.
  • Net slippage ratio (annualized) stood at 0.41%, improving 219 bps YOY
  • Annualized credit cost for Q1FY23 at 0.41%, declined by 129 bps YOY
  • GNPA at 2.76% declined by 109 bps YOY & 6 bps QOQ, NNPA at 0.64% declined 56 bps YOY & 9 bps QOQ, PCR healthy at 77%
  • Coverage2 ratio at 1.70%, Standard Covid-19 restructuring implemented loans at 0.45% of GCA

Key subsidiaries continue to deliver robust performance

  • Total annualised Q1FY23 PAT of domestic subsidiaries at `1,082 crs, up 10% YOY; Return on investments in subsidiaries at 45%
  • Axis Finance Q1FY23 PAT grew 59% YOY, ROE at 15%, asset quality metrics improve with net NPA declining 134 bps YOY to 0.46%
  • Axis AMC's Q1FY23 PAT grew 20% YOY, Quarterly AAUM grew 18% YOY
  • Axis Capital Q1FY23 PAT at `34 crores, Axis Securities Q1FY23 revenue up 7% YOY, PAT at `39 crores

Q1 FY23 Consolidated ROE (annualized) at 15.66% with subsidiaries contributing 59 bps, up 587 bps YOY

1. SBB : Small Business Banking
2. Coverage Ratio = Aggregate provisions (specific + standard + additional + Covid) / IRAC GNPA
QAB: Quarterly Average Balance
* : Based on RBI data from Mar’22 to May’22

Key Metrics

for Q1FY23

Snapshot (As on June 30th, 2022) (in ` Crores)

Profit & Loss Absolute (in ` Crores) YOY Growth
  Q1FY23  
Net Interest Income 9,384 21%
Fee Income 3,576 34%
Operating Expenses 6,496 32%
Operating Profit 5,887 (5%)
Net Profit 4,125 91%
Balance Sheet Absolute (in ` Crores) YOY Growth
  Q1FY23  
Total Assets 11,52,580 14%
Net Advances 7,01,130 14%
Total Deposits^ 8,03,572 13%
Shareholders' Funds 1,19,378 15%

^ period end balances

Key Ratios Absolute (in ` Crores)  
  Q1FY23 Q1FY22
Diluted EPS (Annualised in `) 53.76 28.19
Book Value per share (in `) 389 339
ROA (Annualised) 1.44% 0.86%
ROE (Annualised) 15.07% 9.11%
Gross NPA Ratio 2.76% 3.85%
Net NPA Ratio 0.64% 1.20%
Basel III Tier I CAR* 15.79% 16.48%
Basel III Total CAR* 17.83% 19.01%

* including profit for the quarter

Deposits# 14% YOY
CASA#

16% YOY (QAB#) | 14% YOY (End Balance)

#QAB - Quarterly Average Balance

Advances 14% YOY
Retail
SME
Corporate

25% YOY | 27% YOY | 5% YOY

 

Core Operating Profit (in ` Crores) 17% YOY
  • Q1FY23
    6,554
  • Q1FY22
    5,608
Profit After Tax (in ` Crores) 91% YOY
  • Q1FY23
    4,125
  • Q1FY22
    2,160

 

Performance at a Glance

Strong core operating performance, net profit grew sequentially to `4,125 crores, up 91% YOY

  • NIM at 3.60%, improved by 14 bps YOY and 11 bps QOQ, NII grew 21% YOY and 6% QOQ
  • Fee income grew 34% YOY, granular fee constituted 93% of overall fees, Retail fee grew 43% YOY
  • Core operating profit grew 17% YOY and 5% QOQ
  • Consolidated ROE (annualized) at 15.66%, up 587 bps YOY, subsidiaries contribute 59 bps

Loan growth delivered across focused business segments

  • Retail loans grew 25% YOY and 3% QOQ, SBB and Rural loans grew 74% YOY and 42% YOY respectively
  • SME loans grew 27% YOY, Mid-Corporate(MC) book up 54% YOY and 5% QOQ
  • SME+SBB+MC mix at `1,29,949 crores | 19% of loans, up ~500 bps in last 2 years
  • Total loans grew 14% YOY

Healthy growth in granular deposits

  • On QAB basis, SA grew 16% YOY and 4% QOQ, CA grew 15% YOY and Term deposits grew 13% YOY
  • On QAB basis, CASA grew 16% YOY and 1% QOQ, CASA ratio stood at 43%, up 53 bps YOY
  • On QAB1 basis, total deposits grew 14% YOY and 2% QOQ

Retaining strong position in Payments and Digital Banking

  • 16% market share in UPI transactions and 22% in UPI P2M acquiring (by throughput)
  • Among the highest rated mobile apps with ratings of 4.6**, mobile banking market share stood at 15%
  • Mobile Banking has Monthly Active Users of 9.7 million and nearly 6 million non-Axis Bank customers
  • The Bank has 85+ digital partnerships across ecosystem
  • During the quarter, the Bank completed rollout of its new Internet Banking platform

Well capitalized with adequate liquidity buffers

  • Overall capital adequacy ratio (CAR) for Q1FY23 stood at 17.83% with CET 1 ratio of 15.16%
  • COVID provisions of `5,012 crores, not in CAR calculation provides additional cushion of 58 bps
  • Average Liquidity Coverage Ratio (LCR) during Q1FY23 was ~116%, excess SLR2 of `75,636 crores

Declining gross slippages and NPA's, moderating credit costs, low restructured book

  • Annualized, gross slippage ratio declined 210 bps YOY & 33 bps QOQ, net slippage ratio at 0.41%, down 219 bps YOY
  • Annualized credit cost for Q1FY23 at 0.41%, declined by 129 bps YOY, PCR healthy at 77%
  • GNPA at 2.76% declined by 109 bps YOY & 6 bps QOQ, NNPA at 0.64% declined 56 bps YOY & 9 bps QOQ,
  • On an aggregated basis3, Coverage ratio at 134%
  • Covid-19 restructuring implemented loans at 0.45% of GCA, amongst the lowest in the industry

Bank's domestic subsidiaries continue to deliver robust performance; annualized profit4 at `1,082 crores

  • Axis Finance Q1FY23 PAT grew 59% YOY to `95 crores; asset quality remains stable, with near zero restructuring
  • Axis AMC's Q1FY23 PAT grew 20% YOY to `88 crores, Quarterly AAUM grew 18% YOY
  • Axis Capital Q1FY23 PAT stood at `34 crores
  • Axis Securities Q1FY23 PAT at `39 crores

** 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

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