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.

• Retail loan assets reached INR 65,157 crore, with affordable and emerging markets forming 22% of the retail loan asset.

• Retail book now forms 97.3% of total assets, reflecting a strategic shift from corporate lending.

• Corporate GNPA stands at nil as of June 30, 2024, after resolving 1 NPA and 1 written-off account in the quarter.

• ROA improved to 2.38% (annualized) for Q1 FY25, up from 2.20% in FY24.

Financial highlights

• PAT for Q1 FY25 at INR 433 crore, up 25% year-over-year; net interest margin stable at 3.65%.

• Revenue for Q1 FY25 was INR 1,829 crore, up from INR 1,704 crore in Q1 FY24.

• Gross NPA reduced to 1.35% as of June 30, 2024, from 3.76% at June 30, 2023.

• Operating expenses rose 27% year-over-year to INR 190 crore, mainly due to branch expansion and annual appraisals.

• 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 targeted at 2.4%-2.6% over the next three years.

• Digital transformation initiatives to drive operational efficiency and productivity.

• Branch network to expand by 40-50 branches annually, focusing on affordable and emerging segments.