AU Small Finance Bank (AUBANK) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 PAT rose 53% YoY to ₹85,768.99 lakh; H1 net profit reached ₹1,65,364.28 lakh, up 45% YoY.

• Deposits grew 29% YoY to ₹1.70 lakh crore and gross loan portfolio rose 25% to ₹1.54 lakh crore; asset quality improved, with GNPA at 1.99% and NNPA at 0.81%.

Financial highlights

• Q2 NII rose 32% YoY to ₹2,820 crore; net total income increased 26% to ₹3,590 crore.

• Core other income grew 16% to ₹736 crore, led by card and transaction-banking fees; treasury income fell 57% to ₹34 crore.

• Operating expenses rose 26% to ₹2,077 crore; provisions declined 25% to ₹359 crore, supporting PAT growth.

• H1 Core PPOP increased 36% to ₹2,906 crore and provisions fell 28% to ₹731 crore.

Outlook and guidance

• Deposit growth target is ~25% YoY, with growth intended to track or exceed loan growth; H1 growth of 29% was above expectations.

• FY credit-cost guidance remains close to 90 bps; through-cycle credit costs are expected at 90–100 bps.

• Cost-to-assets excluding guarantee premium is expected to improve YoY for FY as operating leverage develops.

• Growth ambition is 2–2.5x nominal GDP; mortgage growth is expected to approach 20% next year.

• Plans include ~100 liability branches annually and expanding agentic lending journeys; five AI Centre of Excellence processes are planned for H2 FY27.