Yes Bank earnings beat estimates; top 5 takeaways from Q1 results

Yes Bank reported better than expected earnings for the quarter ended June 30 mostly on all the key parameters and the asset quality has also shown considerable improvement on a quarter-on-quarter basis (QoQ).

Reacting to the news the stock rose to a fresh 52-week high of 1681.50 on the BSE. It was trading 3.9 percent higher at Rs 1677.90 at 02:24 PM.

We have collated a list of top 5 takeaways from Q1 results:

Net Profit:

The private sector lender reported 31.9 percent year-on-year (YoY) rise in net profit for the quarter ended June to Rs 965.5 crore which was higher than the CNBC-TV18 estimate of Rs 919 crore.

Yes Bank reported a net profit of Rs 731.80 crore for the corresponding quarter last year and Rs 914.12 crores in the previous quarter.

Net Interest Income (NII):

The Net interest income, the difference between interest earned and interest expended, grew by 44 percent on a YoY basis to Rs 1808.90 crore driven by growth in Advances and CASA, and steady expansion in net interest margin (NIM).

Analysts polled by CNBC-TV18 had estimated a net interest income of Rs 1736.50 crore. It reported an NII of Rs 1,256.10 crore in the year-ago period.

The net interest margin expanded to 3.7 percent for Q1FY18 from 3.6 percent in Q4FY17.

Board approves stock split:

The Board has also approved Stock Split in the ratio of 5 for 1, subject to approval from Shareholders’ and RBI.

“We will be shortly commencing our 14th year of commercial operations one more quarter from now and we remain well on course to achieve our stated objectives for 2020 with yet another quarter of overall satisfactory performance,” Rana Kapoor, Managing Director & CEO, YES BANK said in a statement.

“The Board is also pleased to approve Stock Split in the ratio of 5 for 1 and takes this opportunity to thank its shareholders for their valued support,” he said.

Stable asset quality:

Gross Non-Performing Advances (GNPA) at 0.97 percent (Rs 1,364.4 Crores) and Net Non-Performing Advances (NNPA) at 0.39 percent (Rs 545.3 Crores).

Almost 60 percent recovered from one extraordinary account classified as NPA in Q4FY17. Further time bound recoveries expected. Provision Coverage Ratio (PCR) stands at 60 percent.

Standard Restructured Advances at 0.24%

The total Standard Restructured Advances as a proportion of Gross Advances was at 0.24 percent (Rs 331.4 crore) as at June 30, 2017, down from 0.36 percent as at March 31, 2017. No additional restructuring during the quarter.

One account (equivalent to 0.07 percent of Gross Advances) was upgraded during the quarter from Restructured to Standard Asset due to satisfactory conduct during the prescribed period.