PNB Housing Finance (PNBHOUSING) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw 19% year-over-year growth in retail disbursements to INR 4,363 crore, with affordable and emerging segments contributing 33% of retail disbursement and retail loan assets reaching INR 65,157 crore.

• Affordable disbursements rose 157% year-over-year, and emerging segment disbursements increased 18%; affordable and emerging markets now form 22% of the retail loan asset.

• Retail book forms 97.3% of total assets, up from 87% in March 2022.

• PAT grew 25% year-over-year to INR 433 crore; ROA improved to 2.38% for Q1 FY25.

• Expanded to 303 branches/outreaches, including 160 for affordable and 50 for emerging markets.

Financial highlights

• Revenue for Q1 FY25 was INR 1,829 crore, up from INR 1,704 crore in Q1 FY24; net interest income rose 3% quarter-on-quarter to INR 651 crore.

• Net profit after tax for Q1 FY25 was INR 432.8 crore, a 24.6% increase year-over-year.

• NIM for Q1 FY25 was 3.65%, unchanged from Q4 FY24.

• Gross NPA reduced to 1.35% as of June 30, 2024, from 3.76% a year ago.

• Capital adequacy ratio (CRAR) stood at 29.50% as of June 30, 2024.

Outlook and guidance

• Retail loan asset growth guidance maintained at 17% for FY25; retail disbursement growth expected at 25%+.

• NIM expected to remain at or above 3.5% for the next 2-3 quarters, with potential for improvement as high-yielding segments grow.

• ROA target set at 2.4%-2.6% over the next three years.

• Plan to add 40-50 branches annually, focusing on affordable and emerging segments.

• Continued emphasis on asset quality and digital transformation to drive operational efficiency.