Axis Bank (AXISBANK) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 net profit was ₹7,117.50 crore, up 13% sequentially, with annual net profit at ₹26,373.48 crore, a 6% YoY increase; consolidated ROA and ROE for Q4 FY25 at 1.88% and 17.11%, respectively.

• Delivered steady core operating performance, with sequential deposit growth outpacing industry trends and a focus on profitable, sustainable growth.

• Balance sheet remains resilient with a CET1 ratio of 14.67% and capital adequacy ratio at 17.07%.

• Subsidiaries delivered strong results, with Axis Finance, AMC, Securities, and Capital all reporting double-digit PAT growth.

• The Board recommended a dividend of ₹1 per share for FY25, subject to shareholder approval.

Financial highlights

• FY25 NIM at 3.98%, Q4FY25 NIM at 3.97%; fee income grew 11% YoY to INR 22,504 crore, with 93% granular fees.

• Operating expenses for FY25 at INR 37,500 crore, up 6% YoY; cost-to-assets at 2.46%, down 9 bps YoY.

• Gross NPA at 1.28%, net NPA at 0.33%; provision coverage at 157%.

• Loans grew 8% YoY and 3% sequentially; retail advances constitute 60% of total advances.

• Q4FY25 Net Interest Income at ₹13,811 crore, up 6% YoY; annual interest earned was ₹1,22,677.04 crore.

Outlook and guidance

• Management expects both growth and profitability to improve as liquidity conditions ease and deposit growth strengthens.

• No explicit guidance for FY26 growth or margins, but confidence expressed in franchise strength and ability to manage through cycles.

• Focus on deposit mobilization, digital leadership, and expanding in rural and semi-urban markets.

• Adoption of RBI's revised investment portfolio framework led to a net worth increase and changes in investment reserve and depreciation provisions.

• The bank reversed excess provision of ₹800.65 crore in Q4 FY25 due to revised norms for government-guaranteed security receipts.