Equitas Small Finance Bank (EQUITASBNK) Q4 21/22 earnings summary

Executive summary

• FY22 delivered 15% YoY gross advances growth and 16% deposit growth, while PAT declined 26.94% to ₹280.73 crore amid higher credit costs and provisioning.

• Q4 recorded the highest quarterly disbursements; management described non-restructured credit cost at 1.26% in Q4, back to historical levels.

Financial highlights

• Net interest income rose 13.38% YoY to ₹2,038.53 crore; non-interest income increased 28.59% to ₹537.56 crore.

• Operating expenses were ₹1,704.14 crore versus ₹1,329.43 crore; provisions and contingencies reached ₹493.84 crore versus ₹375.32 crore.

• PBT was ₹378.11 crore and PAT ₹280.73 crore, down from ₹511.26 crore and ₹384.22 crore, respectively, in FY21.

• Balance sheet assets increased to ₹26,951.90 crore from ₹24,708.47 crore; deposits reached ₹18,950.80 crore and advances ₹19,374.21 crore.

Outlook and guidance

• Targeting sustainable growth above the industry average, supported by digital-first expansion, operating leverage and a lower cost of funds.

• Plans include widening existing lending products, scaling merchant and third-party products, and introducing consumer/personal loans as the liability franchise grows.

• Management expects asset quality to improve as customer cash flows return to pre-pandemic levels.