LIC Housing Finance Q4 PAT seen up 2.1% YoY to Rs. 540.1 cr: ICICI Direct

ICICI Direct has come out with its fourth quarter (Jan-March’ 18) earnings estimates for the Banking & Financial Services sector. The brokerage house expects LIC Housing Finance to report net profit at Rs. 540.1 crore up 2.1% year-on-year (up 10% quarter-on-quarter).

Net Interest Income is expected to increase by 1.8 percent Y-o-Y (up 17.9 percent Q-o-Q) to Rs. 1058.4 crore, according to ICICI Direct.

ICICI Direct’s earnings estimates for LIC Housing Finance
For LIC HF, we expect loan traction of 15% YoY to continue with the loan book reaching Rs. 166,792 crore. NPAs have been on a rising trajectory in the last three quarters. With Q4 seasonally being a better quarter in terms of asset quality, we expect the GNPA ratio to be lower than 0.87% in Q3FY18. Margins are also a key factor to watch. We expect it at 2.5%. Muted NII and PAT growth as seen in last two quarters are estimated to continue in Q4FY18. PAT of Rs. 540 crore (up 2% YoY is estimated).

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