Axis Bank (AXISBANK) Q3 24/25 earnings summary

Executive summary

• Delivered steady operating performance with strong growth in focus business segments and sequential improvement in return ratios; core operating profit rose 14% YoY and 5% QoQ, with consolidated ROA at 1.8%-1.92% and ROE at 16.9%-18.08%.

• Operating profit up 24% YoY and 6% QoQ; PAT up 4% YoY for Q3FY25 and 11% YoY for H1FY25; consolidated net profit for the group at ₹6,742 million for the quarter.

• Net interest income grew 9% YoY; NIM at 3.93%-3.99%; fee income up 6%-11% YoY with high granularity.

• Continued investments in technology, analytics, and cybersecurity, with digital initiatives scaling up and 40% of retail TDs acquired digitally.

• Subsidiaries delivered strong performance; Axis Finance PAT up 20%-24% YoY, Axis AMC PAT up 27%-29% YoY.

Financial highlights

• Operating profit for Q3FY25 at ₹10,534 million, up 15% YoY; H1 FY25 at INR 20,819 crores, up 19% YoY.

• Net profit for Q3FY25 at ₹6,304 million, up 4% YoY; 9MFY25 PAT at ₹19,256 crore, up 9% YoY.

• Net interest income for Q3FY25 at ₹13,606 million, up 9% YoY; fee income at ₹5,455-5,508 million, up 6%-11% YoY.

• Gross NPA at 1.44%-1.46% (down YoY); Net NPA at 0.34%-0.35%; provision coverage ratio at 76%-77%.

• Cost-to-income ratio at 47.21%, down 207 bps YoY; cost-to-assets at 2.48%-2.52%.

Outlook and guidance

• Medium to long-term loan growth guidance is 300-400 bps above industry; focus on growing average deposits and maintaining strong CASA ratio.

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

• Continued focus on risk-adjusted returns and calibrated growth in retail and unsecured segments.

• Adoption of RBI's revised investment portfolio framework from April 2024 expected to enhance net worth and impact investment valuation.

• Targeting 3-4x increase in digital business contribution by FY27.