Axis Bank (AXISBANK) Q2 24/25 earnings summary

Executive summary

• Operating profit rose 24% YoY, net profit up 18% YoY, with consolidated ROA at 1.92% and ROE at 18.1%, driven by steady growth in deposits and advances.

• Deposit growth at 14% YoY, with strong new customer acquisition and premiumization of franchise.

• Asset quality remained stable; GNPA at 1.44%, NNPA at 0.34%, and provision coverage ratio at 77%.

• Subsidiaries delivered strong results: Axis Finance PAT up 24% YoY, Axis AMC PAT up 29% YoY, Axis Securities PAT up 139% YoY.

• Achieved No. 1 position in UPI Payer PSP with 31% market share and is the largest merchant acquiring bank in India.

Financial highlights

• Net Interest Income grew 9% YoY to ₹13,483 crore; Net Interest Margin at 3.99%.

• Operating profit for H1 FY25 at INR 20,819 crore, up 19% YoY; PAT at INR 12,952 crore, up 11% YoY.

• Gross NPA at 1.44%, down 29 bps YoY; Net NPA at 0.34%, down 2 bps YoY.

• Cost to income at 47.21%, down 207 bps YoY; cost to assets at 2.52%, down 2 bps QoQ.

• Profit after tax for Q2FY25 was ₹6,918 crore, up 18% YoY; diluted EPS (annualized) at ₹88.20.

Outlook and guidance

• Advances expected to grow 300-400 bps faster than industry in the medium to long term.

• Deposit growth remains a key constraint for advances in the short to medium term.

• Continued focus on risk-adjusted returns and disciplined execution across business segments.

• Adoption of RBI's revised investment portfolio framework led to a one-time net worth increase and changes in investment reserve accounting.

• Targeting further growth in digital banking, payments, and merchant acquiring businesses.