Ujjivan Small Finance Bank (UJJIVANSFB) Q4 21/22 earnings summary

Executive summary

• H2 FY22 turnaround followed a COVID-disrupted H1: collections, disbursements and deposit mobilisation improved under two 100-day plans. Q4 PAT was ₹127 Cr; FY22 ended with a ₹415 Cr net loss.

• FY22 balance sheet expanded 16% YoY to ₹23,604 Cr; deposits rose 39% to ₹18,292 Cr and AUM increased 20% to ₹18,162 Cr.

Financial highlights

• Total income ₹3,126 Cr, up 1% YoY; NII ₹1,774 Cr, up 3%; interest income rose 3% to ₹1,774 Cr despite lower yields.

• FY22 PPOP fell 26% to ₹590 Cr from ₹801 Cr; reported net loss was ₹415 Cr versus PAT of ₹8 Cr in FY21.

• Gross advances grew 20% to ₹18,162 Cr; disbursements rose 68% YoY. Retail deposits increased 59% to ₹9,921 Cr and were 54% of total deposits.

• Operating costs rose 22% and credit expenses were ₹1,118 Cr; cost-to-income ratio increased to 71.7% from 60.6%.

Outlook and guidance

• FY23 outlook called for strong business-volume growth, a leaner cost structure and improved profitability; priorities include consolidating businesses, expanding digitally and opening branches in liability-rich catchments.

• Growth plans include deeper Tier 2/3 housing penetration, more MSE products and fintech partnerships, diversified FIG deposits and fee products, and expansion of QR and digital channels.

• Key guidance risks were inflationary pressure, resulting rate increases and the global geopolitical environment.