8/6/2019 YES Bank Q1FY12 Result Update
1/3
Wealth Research, Unicon Financial Intermediaries. Pvt Ltd.
Email: [email protected]
NG TERM INVESTMENT CALL
BUY21 July 2011
Company Report | Q1FY12 Result Update
Q1FY12 Result Highlights
YES Bank (YES) delivered another strong quarter, with net
profitsincreasing by 38.2% to INR 2163 Mn on YoY basis. This
was
contributed by higher growth in net interest income (NII) of INR
3.5 bn
(35% YoY) & non interest income grew by 15% to INR 1.65 Bn
on YoY
basis. Growth in the non interest income was led by
transaction
banking (INR 420 Mn), financial advisory (INR 829 Mn),
financial
markets (INR 247 Mn) and branch banking fees & others (INR
157 Mn).
The major highlights were deposits registered a healthy growth
of
44.1% along with advances growing by 26.1% on YoY basis.
Current
and Savings Account (CASA) deposits grew by 49.8% to INR 47.64
bn
moving the CASA ratio to 10.9% Q1FY12 from 10.3% in Q4FY11.
The
Banks Balance Sheet grew by 39.2% to INR 569.63 bn in Q1FY12
Corporate & Institutional Banking accounted for 63.2% of the
loan
portfolio, Commercial Banking 24.4% and Branch Banking 12.4%.
The
Commercial & Branch Banking franchise has delivered
increased
traction in Q1FY12, reflecting an increase in granularity in the
loan
book in line with Version 2.0 vision and strategy of the
Bank.
For the quarter, margins remained flat sequentially at 2.8%;
however
on YoY basis there was a decrease of 30 bps due to higher cost
of
funds. In Q1FY12, the bank opened 41 branches, taking its the
networkto 255 & further plans to take the network to ~325 by
the end of FY12.
This will help in improving its retail franchise.
During the quarter, the banks asset quality improved further
with
gross and net NPA ratios at 0.17% and 0.01% (0.23% and 0.04%
in
Q1FY11), respectively. The banks provision coverage ratio
improved
further to 95.2% in Q4FY11 from 88.6% in Q4FY11.
Bank was able to maintain healthy return ratios of RoA at 1.5%
& RoE
at 22.1% YoY. Capital adequacy ratio remained healthy at 16.2%
and
Tier I capital at 9.6%, which is likely to help the bank to
continue the
balance sheet growth.
Outlook & Valuation
YES Bank has been able to register strong business growth,
profitability
with stable margins & strong asset quality. Additionally the
bank is
expanding ~125 branches every year, which would help to improve
its
CASA ratio to 15% in FY12E. We remain positive on long term
prospects
of the bank. At the CMP stock trades at 1.9x of its FY12E Book
Value. We
maintain BUY rating on the stock for target price of INR
420.
Industry Banking
CMP (INR) 317Target (INR) 420
52 week High/Low (INR) 382/233
Market Cap (INR BN) 111
3M Avg. Daily Volumes 2582830
P/BV FY12E 1.9x
Shareholding Pattern (%)
Promoters
27%
FII
47%
Others
14%Institutions
12%
Stock Performance
200
220
240
260
280
300320
340
360
380
400
Jul
Sep
Nov
Jan
Mar
May
Jul
YES NSE Nifty Performance (%)
1 Month 3 Months 1 Year
YES 9.7 -3.7 7.2
NIFTY 5.9 -4.9 3.7* Source: Ace, Unicon Research
(INR in mn)
Particulars Actual Estimates
NII 3542 3842
Operating Profit 3251 3976
PAT 2161 2311* Source: Ace, Unicon Research
AnalystShweta Rane | [email protected]
8/6/2019 YES Bank Q1FY12 Result Update
2/3
Wealth Research, Unicon Financial Intermediaries. Pvt Ltd.
Email: [email protected]
Financials(INR in mn)
Q1 FY12 Q1 FY11 Y-o-Y Q4 FY11 Q-o-Q
Interest income 13995 7392 89.33 12226 14.47Interest expense
10454 4771 119.11 8741 19.59Net Interest Income 3542 2621 35.14
3485 1.63Other Income 1653 1438 14.91 1868 -11.50
Total Operating income 5195 4059 27.97 5353 -2.95
Operating expenditure 1944 1570 23.82 1865 4.23Operating Profit
3251 2576 26.19 3488 -6.79Operating Profit (%) 23.23 33.68 -1044
bps 28.53 -529 bpsProvisions 15 126 -87.98 433 -96.51
PBT 3236 2364 36.89 3055 5.92Tax 1075 800 34.35 1021 5.27
PAT 2161 1564 38.19 2034 6.24
EPS (INR.) 6.21 4.59 35.36 5.86 5.94NIMs 2.8 3.1 -30 bps 2.8 0
bps
Source: Company, Unicon Research *Standalone
