Axis Bank Q4 Results FY2023, Net loss at Rs. 5728 crores

On 27th April, Axis Bank announced its results for the last quarter of FY2023.

Axis Bank Net Interest Income:

- The Bank’s Net Interest Income (NII) grew 33% YOY and 2% QOQ to Rs.11,742 crores. Net interest margin (NIM) for Q4FY23 stood at 4.22%, up 73 bps YOY.
- Net Interest Income for FY23 grew 30% YOY to Rs.42,946 crores from Rs.33,132 crores. Fee income grew 25% YOY to Rs.16,216 crores.

Axis Bank Net Profit:

- The Bank’s core operating profit for the quarter grew 46% YOY to Rs.9,084 crores. 
-  Core operating profit in FY23 grew 40% YOY to Rs.32,291 crores from Rs.23,094 crores. 
- Operating profit for Q4FY23 grew 42% YOY to Rs.9,168 crores
-  Operating profit in FY23 grew 30% YOY to Rs.32,048 crores from Rs.24,742 crores.
- Net loss for Q4FY23 was reported at Rs. 5728 crores.
- Net Profit for the year was reported at Rs. 9580 crores.

Axis Bank Other Financial Highlights:

- Fee income for Q4FY23 grew 24% YOY and 14% QOQ to Rs.4,676 crores. 
- Retail fees grew 31% YOY and 14% QOQ, and constituted 69% of the Bank’s total fee income. - Retail Assets (excluding cards and payments) fee grew 22% YOY and 12% QOQ. Retail cards and payments fee grew 50% YOY and 14% QOQ.
- The Corporate & Commercial banking fees together grew 12% YOY and 13% QOQ. 
- Provision and contingencies for Q4FY23 stood at Rs.306 crores.
- Credit cost for the quarter ended 31st March, 2023 stood at 0.22%, declined 10 bps YoY and 43 bps QoQ. 
- The Bank’s balance sheet grew 12% YOY and stood at Rs.13,17,326 crores as on 31 st March 2023. 

Axis Bank Loans and Deposits:

- The total deposits grew 15% YOY and 12% QOQ on period end basis, within which savings account deposits grew 23% YOY and 18% QOQ, current account deposits grew 17% YOY and 18% QOQ; and total term deposits grew 11% YOY and 6% QOQ. 
- The share of CASA deposits in total deposits stood at 47%, up 215 bps YOY and 261 bps QOQ. On QAB basis, total deposits grew 11% YOY and 6% QOQ, within which savings account deposits grew 13% YOY and 4% QOQ, current account deposits grew 15% YOY and 9% QOQ; and total term deposits grew 10% YOY and 6% QOQ. 
- The Bank’s advances grew 19% YOY and 11% QOQ to Rs.8,45,303 crores as on 31 st March 2023. 
- Domestic net loans grew 23% YOY and 13% QOQ.
- Retail loans grew 22% YOY and 14% QOQ to Rs.4,87,571 crores and accounted for 58% of the net advances of the Bank. The share of secured retail loans was ~ 78%, with home loans comprising 32% of the retail book.
- Home loans grew 10% YOY, Small Business Banking (SBB) grew 50% YOY and 12% QOQ; and rural loan portfolio grew 26% YOY and 19% QOQ. 
- Unsecured personal loans grew 21% YOY and 8% QOQ.
- Credit Card advances grew 97% YOY. SME book remains well diversified across geographies and sectors, grew 23% YOY and 13% QOQ to Rs.92,723 crores.
- Corporate loan book grew 14% YOY and 6% QOQ to Rs.2,65,009 crores of which domestic corporate book grew 24% YOY and 11% QOQ. Mid-corporate book grew 38% YOY and 10% QOQ.

Axis Bank Asset Quality:

- As on 31 st March, 2023 the Bank’s reported Gross NPA and Net NPA levels were 2.02% and 0.39% respectively as against 2.38% and 0.47% as on 31st December, 2022. 
- Recoveries from written off accounts for the quarter was Rs.823 crores. 
- Gross slippages during the quarter were Rs.3,375 crores, compared to Rs.3,807 crores in Q3FY23 and Rs.3,981 crores in Q4FY22. 
- Recoveries and upgrades from NPAs during the quarter were Rs.2,699 crores. The Bank in the quarter wrote off NPAs aggregating Rs.2,429 crores. As on 31 st March, 2023, the Bank’s provision coverage, as a proportion of Gross NPAs stood at 81%, as compared to 75% as at 31st March, 2022 and 81% as at 31st December, 2022. 

Axis Bank Business Highlights:

- The Bank issued 1.13 million new credit cards in Q4FY23. The Bank has been one of the highest credit card issuers in the country over last three quarters and has gained incremental CIF market share of 17% in the last 6 months
-  The Bank’s mobile app continues to see strong growth, with Monthly Active Users of ~12.0 million and nearly ~7.8 million non-Axis Bank customers using Axis Mobile and Axis Pay apps
- The Bank’s wealth management business, Burgundy, is among the largest in India with assets under management (AUM) of Rs.3,57,447 crores as at end of 31 st March 2023. 
- The AUM for Burgundy Private increased 58% YOY to Rs.1,37,446 crores.
- Axis Bank completed the acquisition of Citibank India Consumer Business, comprising loans, credit cards, wealth management, and retail banking operations. This strategic acquisition strengthens Axis Bank's position among large private lenders in India and will help accelerate its premium market share growth.
- As on 31 st March, 2023, the Bank had a network of 4,903 domestic branches and extension counters situated in 2,741 centres compared to 4,758 domestic branches and extension counters situated in 2,702 centres as at 31 st March, 2022. As on 31st March, 2023, the Bank had 15,953 ATMs and cash recyclers spread across the country. The Bank’s Axis Virtual Centre is present across six centres with over 1,500 Virtual Relationship Managers as on 31 st March 2023. 
- The Board of Directors has recommended dividend of Rs.1 per equity share of face value of Rs.2 per equity share for the year ended 31st March 2023.

Commenting on the results, Amitabh Chaudhry, MD&CEO, Axis Bank said "With the acquisition of Citibank India Consumer Business, we welcomed over 2.4 million new customers and ~3200 employees to the Axis family. The deal bolsters our market presence, especially in the growth of our premium market share across wealth and cards. We are working on the synergies, some of which are already yielding favorable outcomes. During the quarter, we also made significant progress on Bharat Banking and Digital, two of our priority areas. Overall, we closed the year with a strong sense of purpose and meaningful strides towards building a strong, sustainable franchise.”