Motilal Oswal's report on Yes Bank
Yes Bank’s (YES) NII grew 32% YoY (+10% QoQ) to INR 16.4b, helped by 20bp YoY NIM improvement (to 3.6%) and customer assets growth of 36% YoY (+15% QoQ). Strong NII and beat on other income (27% beat; +57% YoY) drove PPoP outperformance (+38% YoY; 14% beat). However, significantly higher provisioning led to in line PAT at INR 9.1b (30% YoY).
Outlook
The bank has best-inclass return ratio of with RoA/RoE of 1.8%/19%+. The bank is adequately capitalized for the next stage of growth (CET1 11.4%). Reiterate Buy with a target price of INR 2,110 (3.3x FY19) – based on residual income model.
For all recommendations, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
