PNB Housing Finance (PNBHOUSING) Q3 24/25 earnings summary

Executive summary

• Retail loan book grew 17.5% year-over-year to ₹70,676 crore as of December 31, 2024, with affordable and emerging segments doubling in nine months and forming 24% of retail loan assets.

• Disbursements in Q3 FY25 rose 31% year-over-year to ₹5,380 crore, with affordable and emerging segments contributing 38% of total retail disbursements.

• PAT for Q3 FY25 stood at ₹483 crore, up 43% year-over-year; 9M FY25 net profit reached ₹1,386 crore, up 30% year-over-year.

• Asset quality improved with gross NPA at 1.19% (down from 1.73% a year ago) and net NPA at 0.80% as of December 31, 2024.

• Pan-India presence expanded to 305 branches, including 161 for Affordable and 50 for Emerging Markets.

Financial highlights

• Net interest income for Q3 FY25 grew 17% year-over-year to ₹696 crore; NIM improved to 3.7% in Q3 FY25 from 3.68% in the previous quarter.

• Consolidated Q3 FY25 revenue from operations: ₹1,941.76 crore, up from ₹1,679.51 crore in Q3 FY24.

• Operating profit for Q3 FY25 grew 16% year-over-year to ₹580 crore.

• ROE at 2.51% annualized for Q3 FY25; ROA at 2.51% for Q3 FY25 and 2.48% for 9M FY25.

• Cost of borrowing reduced by 24 bps year-over-year to 7.83%.

Outlook and guidance

• Maintains 17% retail loan book growth guidance for FY25, with potential to surpass.

• Targeting ₹1 lakh crore retail book by FY27, with 15% from affordable, 25% from emerging, and 60% from prime segments.

• Strategic focus on high-yielding Emerging Markets and Affordable segments, with continued investment in technology and digital initiatives.

• Credit cost expected to remain contained at 25 bps long-term; NIM targeted at 4-4.1% by FY27.