Yes Bank (YESBANK) Q4 15/16 earnings summary

Executive summary

• FY16 net profit rose 26.6% YoY to ₹2,539.4 Cr; net revenue grew 31.5% to ₹7,278.9 Cr.

• Advances expanded 30.0% and deposits 22.5%; CASA ratio increased to 28.1%, while net NPA rose to 0.29%.

Financial highlights

• Net interest income increased 30.9% YoY to ₹4,566.7 Cr; non-interest income rose 32.5% to ₹2,712.1 Cr.

• Operating profit grew 32.4% to ₹4,302.5 Cr; profit before tax rose 29.4% to ₹3,766.2 Cr.

• Total assets increased 21.4% to ₹165,263.4 Cr; advances reached ₹98,209.9 Cr and deposits ₹111,719.5 Cr.

• Operating expenses increased 30.3% to ₹2,976.4 Cr, reflecting investment in branches, people and technology.

Outlook and guidance

• Strategy targets ~25% annual growth over five years and market share of 2.5%, from close to 1%; retail and SME growth to deepen portfolio granularity.

• FY16-17 priorities include launching credit cards, scaling retail assets and commissioning the Chennai operations and service centre.

• India’s FY16-17 prospects were described as cautiously optimistic, supported by reforms, benign commodity prices and a forecast good monsoon.