Yes Bank (YESBANK) Q4 16/17 earnings summary

Executive summary

• FY17 net profit rose 31.1% to ₹33,300.96 million; advances grew 34.7%, deposits 27.9%, and total assets 30.1% YoY.

• Growth reflected stronger fee income and a deeper CASA base, alongside investment in branches, technology, retail assets and credit cards.

Financial highlights

• Net interest income increased 26.9% to ₹57,973.07 million; non-interest income rose 53.3% to ₹41,567.57 million, lifting net revenue to ₹99,540.64 million.

• Operating profit increased 35.7% to ₹58,375.23 million; operating expenses rose 38.3% to ₹41,165.41 million, and provisions and contingencies increased 47.9% to ₹7,934.05 million.

• Deposits reached ₹1,428,738.57 million and advances ₹1,322,626.77 million at Mar. 31, 2017; total assets rose to ₹2,150,599.18 million.

• Basic EPS was ₹78.89 versus ₹60.62; diluted EPS was ₹76.77 versus ₹59.31.

Outlook and guidance

• FY18 India GDP growth was projected at 7.3%, up 20 bps; momentum was expected to accelerate in H2 as remonetization and prior reforms fed through.

• Strategy focused on expanding retail and SME advances, growing a granular portfolio, digitizing lending and extending digital banking across customer touchpoints.

• Retail lending disbursements exceeded ₹10,000 crore in FY17, grew 3x YoY and reached ₹1,000 crore per month in Q4; further distribution and digital-process expansion planned for FY18.