PNB Housing Finance (PNBHOUSING) Q2 24/25 earnings summary

Executive summary

• Retail loan book grew 16.2% YoY to ₹67,970 crore as of September 2024, with total loan book at ₹69,501 crore.

• Disbursements in Q2 FY25 reached ₹5,341 crore, up 28% YoY, with 31% from Affordable and Emerging segments.

• Affordable segment crossed ₹3,000 crore, growing nearly 300% YoY; Emerging segment grew 22% YoY to ₹12,545 crore.

• Pan-India presence expanded to 303 branches, including 160 for Affordable and 50 for Emerging Markets.

• PAT for Q2 stood at ₹470 crore, up 22.6% YoY; H1 PAT at ₹903 crore, up 23.6% YoY.

Financial highlights

• Net interest margin (NIM) for Q2 FY25 at 3.68%, with guidance maintained at 3.5%.

• Gross NPA improved to 1.24% as of Q2 FY25; Net NPA at 0.84%.

• Operating expenses grew 19% YoY to ₹199 crore, mainly due to branch expansion.

• Return on assets (ROA) improved to 2.54% in Q2; return on equity (ROE) annualized at 12%.

• Capital adequacy ratio strong at 29.16%, with Tier I at 28.1%.

Outlook and guidance

• On track to achieve FY25 business growth guidance; retail book targeted at ₹1 lakh crore by FY27, with 15% Affordable, 25% Emerging, and balance Prime.

• NIM expected to remain at or above 3.5% for the year, with improvement as Affordable and Emerging mix rises.

• OPEX to AUM ratio expected to stabilize at 1.1% as branch investments are largely complete.

• Emphasis on maintaining best-in-class asset quality and improving profitability metrics.

• Continued investment in technology and digitalization to drive operational efficiency.