Axis Bank - Quarterly Results 2024-25

Steady core operating performance

Net Interest Income grew 12% YOY and 3% QOQ, Net Interest Margin at 4.05%
Fee income grew 16% YOY, granular fee constituted 93% of overall fees, Retail fee grew 18% YOY
Core Operating revenue up 14% YOY, Operating cost growth moderated to 11% YOY & declined sequentially, Q1FY25 Net profit at `6,035 crores, up 4% YOY
Consolidated ROA | ROE on annualized basis at 1.70% | 16.68%, with subsidiaries contributing 5 bps | 42 bps, respectively

QAB deposits grew sequentially, CASA ratio on MEB basis stood at 42%

On QAB basis, total deposits grew 14% | 3%; term deposits grew 21% | 4%, CA grew 8%| 2%, SA grew 3% | 3% on YOY | QOQ basis, respectively
On MEB basis, total deposits grew 13% YOY, term deposits grew 20% YOY, CA grew 12% YOY, SA stood flat YOY
CASA ratio on MEB basis stood at ~42%, which is amongst the best for peer private banks
Avg. LCR Outflow rates improved by ~400 bps in last 2 years

Loan growth delivered across focus business segments

Advances grew 14% YOY and 2% QOQ; Bank’s focus segments* grew by 24% YOY and 1% QOQ
Retail loans grew 18% YOY of which Rural loans grew 24% YOY, SBB¹ book grew 26% YOY and 2% QOQ
Corporate loans (gross of IBPC sold) up 10% YOY and 4% QOQ, Mid-Corporate (MC) up 24% YOY & 2% QOQ, SME loans up 20% YOY
SBB+SME+MC mix at ₹2,100 bn | 21% of total loans, up ~800 bps in last 4 years

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

Self sustaining capital structure with net accretion^{^} to CET-1 of 32 bps in Q1FY25
Overall capital adequacy ratio (CAR) stood at 16.65% with CET 1 ratio of 14.06%
`5,012 crores of other provisions, not considered for CAR calculation, provides cushion of 40 bps over the reported CAR
Excess SLR of `77,244 crores. Avg. LCR during Q1FY25 was ~120%,

Continue to maintain strong position in Payments and Digital Banking

Largest player in Merchant Acquiring business in India with terminal market share of ~21%, incremental share of ~45% in last one year ²
~1 million credit cards acquired in Q1FY25, CIF market share of ~14% ²
Axis Mobile app is among the top rated mobile banking app on Google Play with ratings of 4.8 and ~14 million MAU
410+ APIs hosted on Bank’s API Developer Portal with 285+ Retail APIs

Asset quality stable, credit costs higher due to seasonality and lower recoveries and upgrades, not indicative of full year credit costs

GNPA at 1.54% declined by 42 bps YOY, NNPA at 0.34% declined 7 bps YOY
PCR healthy at 78%, Coverage³ ratio at 150%,
Gross slippage ratio (annualized) at 1.97%, Net slippage ratio (annualized) at 1.37%
Q1FY25 annualized net credit cost at 0.97%

Key subsidiaries continue to deliver steady performance

Total Q1FY25 PAT of domestic subsidiaries at `436 crores, up 47% YOY; Return on investments of 54% in domestic subsidiaries
Axis Finance Q1FY25 PAT up 26% YOY, ROE at 14.7%, total CAR healthy at 19.4%, asset quality metrics improve with GNPA declining 10 bps YOY to 0.55%
Axis AMC’s Q1FY25 PAT up 27% YOY, Axis Securities Q1FY25 PAT up 171% YOY
Axis Capital Q1FY25 PAT up 220% YOY and executed 22 investment banking deals in Q1FY25

Citi integration completed successfully in July 2024

^*Bank’s focus segments include Small Business Banking (SBB), Small & Medium Enterprises, (SME), Mid Corporate, Rural, Personal Loans (PL) and Credit Card Advances QAB: Quarterly Average Balance; MEB: Month End Balance; MAU: Monthly Active Users engaging in financial & non-financial transactions;
¹ SBB : Small Business Banking;
² Based on RBI data as of May’24;
³ Coverage Ratio = Aggregate provisions (specific + standard + additional + Covid) / IRAC GNPA;
^{^} Net accretion = capital accreted – capital consumed during the quarter

Key Metrics for Q1FY25

Snapshot (As on June 30^th, 2024) (in ` Crores)

Profit & Loss	Absolute (in ` Crores)			YOY Growth	QOQ
	Q1FY25	Q1FY24	Q4FY24
Net Interest Income	0	0	0	0%	0%
Fee Income	0	0	0	0%	(8%)
Operating Expenses	0	0	0	0%	(2%)
Operating Profit	0	0	0	0%	(4%)
Core Operating Profit	0	0	0	0%	1%
Profit after Tax	0	0	0	0%	(15%)

Balance Sheet	Absolute (in ` Crores)	YOY Growth
	Q1FY25
Total Assets	14,68,163	0%
Net Advances	9,80,092	0%
Total Deposits	10,62,484	0%
Shareholders' Funds	1,57,766	0%

Key Ratios	Absolute (in ` Crores)
	Q1FY25	Q1FY24
Diluted EPS (Annualised in `)	77.79	75.40
Book Value per share (in `)	0	0
Standalone ROA (Annualised)	1.65%	1.80%
Standalone ROE (Annualised)	16.26%	19.17%
Cons ROA (Annualised)	1.70%	1.83%
Cons ROE (Annualised)	16.68%	19.44%
Gross NPA Ratio	1.54%	1.96%
Net NPA Ratio	0.34%	0.41%
Basel III Tier I CAR^	0.52%	0.90%
Basel III Total CAR^	0.65%	0.74%

^ including profit after tax for Q1

Deposits

13% YOY^(a)

14% YOY^(b)

CASA

4% YOY^(a) | 4% YOY ^(b)

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

Advances

14% YOY^(c)

15% YOY^(d)

Retail

SME

Corporate

18% YOY | 20% YOY | 6% YOY^(c) 10% YOY^(d)

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

Core Operating Profit (in ` Crores)

16% YOY

Q1FY25

9,637
Q1FY24

8,295

Profit After Tax (in ` Crores)

4% YOY

Q1FY25

6,035
Q1FY24

5,797

We have a very well distributed branch network;
added 50 branches in Q1 FY25

Domestic Branch Network*

Jun-24

5,427
Mar-24

5,377
Mar-23

4,903
Mar-22

4,758
Mar-21

4,594

* Includes extension counters

Performance at a Glance

Steady core operating performance

Net Interest Income grew 12% YOY and 3% QOQ
Core operating revenue up 14% YOY | Core operating profit up 16% YOY

Loan growth delivered across focus business segment

Advances up 14% YOY and 2% QOQ, Retail loans grew 18% YOY
Small Business Banking loans grew 26% |2%, Mid-Corporate (MC) book grew 24% | 2% on YOY | QOQ basis
SBB + SME + MC mix at ₹2,09,985 crores | 21.42% of loans, up ~800 bps in last 4 years

MEB¹ deposits grew 13% YOY; CASA ratio at 42%, which is amongst the best for peer private banks

On MEB basis, term deposits grew 20% YOY, CA grew 12% YOY, SA flat YOY
Average LCR² during Q1FY25 was ~120%, outflow rates improved ~ 400 bps over last 2 years

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

Overall capital adequacy ratio (CAR) stood at 16.65% with CET 1 ratio of 14.06%
`5,012 crores of other provisions, not considered for CAR calculation, provides additional cushion of ~40 bps over the reported CAR
Excess SLR of `77,244 crores.

Continue to maintain strong position in Payments and Digital Banking

open by Axis Bank remains among the world’s top rated³ MB app on Google Play store and iOS app store with rating of 4.8; ~14 mn MAU⁴
open by Axis Bank & Axis Pay have ~11 mn non-Axis Bank customers
~23.6 mn customers on WhatsApp banking
Credit card CIF market share at 14%, Retail Card spends grew 14% YOY

Asset quality stable, credit cost higher due to seasonality and lower recoveries and upgrades, not indicative of full year credit costs

PCR healthy at 78%; On an aggregated basis⁵, Coverage ratio at 150%
Gross slippage ratio⁶ at 1.97%, Net slippage ratio⁶ at 1.37%
Q1FY25 net credit cost⁶ at 0.97%

Key domestic subsidiaries⁷ continue to deliver steady performance

Q1FY25 profit at `436 crores up 47% YOY, with a return on investment in domestic subsidiaries of 54%
Axis Finance Q1FY25 PAT grew 26% YOY to `154 crores ; asset quality metrics improve, ROE at 14.7%
Axis AMC Q1FY25 PAT grew 27% YOY to `116 crore, Axis Securities Q1FY25 PAT grew 171% YOY to `121 crores
Axis Capital Q1FY25 PAT grew 220% YOY to `49 crores and executed 22 investment banking deals in Q1FY25

¹ MEB – Month End Balance,
² Liquidity Coverage Ratio
³ with 2.7 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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30 years of leading positive change

Major Highlights of

Q1FY25

Steady core operating performance

QAB deposits grew sequentially, CASA ratio on MEB basis stood at 42%

Loan growth delivered across focus business segments

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

Continue to maintain strong position in Payments and Digital Banking

Asset quality stable, credit costs higher due to seasonality and lower recoveries and upgrades, not indicative of full year credit costs

Key subsidiaries continue to deliver steady performance

Key Metrics for Q1FY25

Performance at a Glance

Performance at a Glance