Ujjivan Small Finance Bank (UJJIVANSFB) Q1 24/25 earnings summary

Executive summary

• Gross loan book reached ₹30,069 crore, up 19% year-over-year, with total deposits at ₹32,514 crore, up 22% year-over-year; retail deposits now form 74% of total.

• Net profit for Q1 FY25 was ₹301 crore, down 7% year-over-year, with NII at ₹941 crore and PAT at ₹301 crore.

• 2.08 lakh new group and individual loan customers were acquired, with 32,623 customers graduating from group to individual loans.

• The bank operates 752 branches across 26 states, leveraging a diversified presence and digital initiatives like the Hello Ujjivan app.

• Unaudited Q1 FY25 results include the amalgamated entity eUFSL, making them not directly comparable to prior periods.

Financial highlights

• NIM for the quarter stood at 9.3%, up 6 bps year-over-year; cost of funds was 7.5%.

• Pre-provision operating profit rose 11% year-over-year to ₹510 crore.

• Credit cost for Q1 FY25 was ₹110 crore (annualized 1.42%), up from ₹26 crore year-over-year.

• Cost-to-income ratio at 55% for the quarter; operating expenses/average assets at 5.2%.

• Net worth increased to ₹5,927 crore as of June 2024.

Outlook and guidance

• FY25 guidance: gross loan book growth ~20%, deposit growth in line with assets, credit cost at or below 1.7%, NIM ~9%, and ROE ~20%.

• Secured book targeted to reach 35% of the portfolio by year-end, with a long-term goal of 40%.

• Universal Bank License application under consideration for this financial year.

• Amalgamation with eUFSL and revised RBI investment portfolio norms expected to influence future financials and comparability.