Axis Bank (AXISBANK) Q1 24/25 earnings summary

Executive summary

• Net profit for Q1FY25 rose 4% year-over-year to ₹6,035 crore, with core operating profit up 16% and net interest income up 12% year-over-year; NIM stable at 4.05%.

• Achieved 13% year-on-year deposit growth, outpacing industry, with strong new customer acquisition and improved CASA ratio.

• Asset quality remained stable with GNPA at 1.54% and NNPA at 0.34%; provision coverage ratio at 78%.

• Successfully completed Citibank consumer business integration ahead of schedule, with seamless customer transition and strong digital adoption.

• Subsidiaries delivered strong results: Axis Finance PAT up 26%, Axis AMC PAT up 27%, Axis Securities PAT up 171%, and Axis Capital PAT up 220% year-over-year.

Financial highlights

• Net interest income at ₹13,448 crore, up 12% YoY and 3% QoQ; net interest margin at 4.05%, flat sequentially.

• Net fee income at ₹5,204 crore, up 16% YoY; granular fee constitutes 93% of total fee.

• PAT at ₹6,035 crore, up 4% YoY; consolidated ROA at 1.70% and ROE at 16.68%.

• Operating expenses at ₹9,125 crore, up 11% YoY, down 2% QoQ; cost to assets at 2.54%.

• Provisions and contingencies at ₹2,039 crore, up 97% YoY and 72% QoQ.

Outlook and guidance

• Deposit growth expected to remain a key factor influencing advances in the near term.

• System credit growth anticipated to converge towards deposit growth of around 13% for the fiscal.

• No annual or short-term margin guidance; structural NIM guidance remains at 3.80% through the cycle.

• Cost growth expected to moderate through fiscal 2025.

• Credit costs in Q1FY25 were higher due to seasonality and lower recoveries, not indicative of full-year trend.