YES BANK announces Financial Results for the Quarter ended June 30, 2018
KEY HIGHLIGHTS for Q1FY19
Sustained Earnings Delivery with improving efficiency:
Net Profit at Rs. 1,260.4 Crores, grew 30.5% y-o-y on the back of healthy growth in NII & Other Income
Cost to Income ratio improved to 37.3% from 42.1% in Q1FY18
RoEs improved to 19.4% from 17.4% in Q1FY18
Robust Advances growth with increasing granularity:
Advances grew by 53.4% y-o-y across domestic Corporate, IBU, MSME and Retail businesses
IBU Assets crossed US$ 3 Bn growing by 219% y-o-y
Retail Banking Advances grew 105.2% y-o-y to 14.0% of Total Advances, contributing 47% of incremental growth during the quarter
Healthy Asset Quality delivery: Steady decline in Total Stressed Assets Book
GNPA at 1.31% and NNPA declined to 0.59% from 0.64% sequentially. Credit costs at 15 bps
PCR improved to 55.3% from 50.0% sequentially
Total Stressed book (NNPA + Net Security Receipts + Std. Restructured Exposure) declined steadily to 1.52% from 1.73% sequentially
Demonstrated resolution track record capability by achieving significant recoveries in NPA and Security Receipts book Ratings Upgraded to AAA by CARE from AA+ for Infrastructure Bonds and Tier II Bonds (Basel III)
Commenting on the results and financial performance, Mr. Rana Kapoor, Managing Director & CEO, YES BANK said, “YES BANK has again delivered sustained performance across balance sheet growth, profitability and asset quality. Further, the growth has been well segmented across Corporate, IBU, SME and particularly Retail Business which grew 105% y-o-y taking Retail Banking proportion in total advances to 14.0%. The exponential growth momentum in Retail demonstrates the leverage created across people, branches and technology over the past few years and is further expected to increase granularity in Bank’s asset and liabilities over the quarters to come. The Bank has also received approval from SEBI to commence its ‘Mutual Fund Business’ which will complement and further augment Bank’s Retail Liabilities and Wealth Management product offerings.
The other key highlight of the quarter was Bank’s continued resilience in Asset Quality and resolution capabilities as demonstrated through recoveries in NPA and Security Receipts book resulting in decline in total Stressed Assets to 1.52% aggregate.
YES Bank’s sustained performance and inherent franchise strength has also been corroborated by Bank’s recent rating upgrade to AAA by CARE which will provide further impetus to Bank’s superior performance, overall Cost of Funds reduction and enable it to capture market share at an increasing pace.”
PROFIT & LOSS: Sustained Earnings Delivery with improving efficiency
Net Profit grew by 30.5% y-oy to Rs. 1,260.4 Crores
Net Interest Income grew by 22.7% y-o-y to ` 2,219.1 Crores and Non-Interest Income grew by 49.6% y-o-y to Rs. 1,694.1 Crores with NIMs at 3.3%
Provisions stood at ` 625.7 Crores of which:
Rs. 379.9 Crores is NPA provisioning which includes ` 149.0 Crores towards increase in Provision Coverage to 55.3% Rs. 92.7 Crores is towards MTM losses on Bonds. MTM losses of Rs. 278.0 Crores will be amortized during FY19 under the RBI dispensation
Operating Profit posted robust growth of 44.0% y-o-y to Rs. 2,454.7 Crores
Consistent return ratios with RoA stable at 1.6%. RoE increased to 19.4% from 17.4% in Q1FY18 Book Value at Rs. 114.1 per share as on June 30, 2018
BALANCE SHEET: Robust Advances growth with increasing granularity
Total Assets grew by 49.7% y-o-y to Rs. 3,32,549.3 Crores. IBU Assets grew by 219% y-o-y to US$ 3.2 Bn
Deposits grew by 42.0% y-o-y to Rs. 2,13,394.5 Crores
CASA ratio at 35.1%, on the back of 35.7% y-o-y growth. SA (Rs. 46,597.5 Crores) and CA (Rs. 28,332.5 Crores) deposits posted strong growth of 26.9% and 53.1% y-o-y respectively. CASA + Retail FDs as a % of Total Deposits stands at a healthy 56.7%
Advances grew by 53.4% y-o-y to Rs. 2,14,720.1 Crores on the back of robust growth across Corporate, IBU, MSME and Retail businesses. Retail Banking Advances grew by 105.2% y-o-y to 14.0% of Advances (up from 10.5% as on June 30, 2017). Segmental mix below:
Total Capital Adequacy at 17.3% with Total Capital Funds at Rs. 46,983.7 Crores. Tier I Ratio and CET I ratio healthy at 12.8% and 9.5% respectively (including profits & adjusted for prorated dividend & IFR)
Risk Weighted Assets stood at Rs. 2,71,351.3 Crores. RWA to Total Assets improved to 81.6% (from 83.4% as on June 30, 2017) given incremental lending to higher rated Corporates
Other Asset Quality highlights:
Details of exposure to NCLT List 1 accounts (only 0.01% of Gross Advances)
During the quarter Bank recoveredRs. 184 Crore from one account (classified under NCLT List 1). Consequently, Bank has residual exposure to only one account with an exposure of Rs. 23.4 Crores (Funded exposure only), classified as NPA and provisioning coverage of 50%. We expect to fully recover this exposure
Details of exposure to NCLT List 2 accounts (0.31% of Gross Advances)
Total exposure of Rs. 654.7 Crores across 7 accounts
Entire Funded exposure from the above, aggregating to Rs. 568.0 Crores (across 3 accounts), is classified as NPA and has provision Coverage of 43%
Adequate provisioning on these exposures with 50-60% collectability Minimal impact of RBI circular dated Feb 12, 2018: As stated earlier in Q4FY18 Result’s
Media Release, Bank reiterates minimal impact of RBI’s Feb 12 Circular on its portfolio
SENSITIVE SECTOR DISCLOSURE
Overall portfolio is well distributed with significant deployment in YES BANK focused knowledge sectors where the Bank has developed considerable sectoral expertise with specialized Relationship, Product and Risk Managers (3 Eye Relationship and Risk Management organizational framework)
DIGITAL BANKING: Digital dominance continues
Leadership position within the new age payments:
Winner for Instant Payment products (UPI, IMPS, USSD & BHIM) in National Payments Excellence Awards 2017 announced by NPCI in May 2018
UPI: Market share of 50% in UPI Merchant Payments volumes. Processed more than 14 Crores transactions amounting to ~ ` 29,000 Crores in Q1FY19. Total registrations have crossed 5 Crores, Merchant partner base of 1.5 Lakhs
IMPS: Top Remitter Bank within peer group based on transaction vol. as per NPCI, 105% growth y-o-y
AePS: One of the Leading acquirer bank of AEPS. Processed ~2 Crore successful transactions in 3 months. ~1.45 Lakh Business Correspondent agents enabled for delivering service
Continued focus on Innovation:
AIIMS Rishikesh Go Live: AIIMS became India’s first completely Cashless Campus by the way of YES Bank powered AIIMS Cashless Payments Cards, UPI led payments and POS led payments
Launched BHIM Aadhaar pay as an acceptance medium for Rajasthan Government’s E-Mitra outlets for facilitating Government to Citizen (G2C) services
Enhancing customer engagement through Superior Product Delivery:
YES Mobile registrations have increased by 113% y-o-y with a mirroring increase in transaction value & volumes by 186% and 247% y-o-y respectively
Robust growth in Debit Card transactions:
7.5 Million Debit Card transactions in Q1FY19 y-o-y growth of 40%. Total Debit Card spends grew 45% y-o-y to ` 1,095 Crores during Q1FY19. Further, Spend per Debit Card has increased by 29% y-o-y to ` 1,903 per quarter
Spends on YES Bank RuPay cards have increased 222%
E-Com transactions growth of 52% y-o-y
YES ROBOT – Personal Banking Assistant, India’s first artificial intelligence enabled banking bot - Continues to gain popularity with customers as it engaged in over ~10 lakh interactions in Q1FY19
Digital India Initiatives:
Asmita Project for Women & Child Welfare Department’s subsidy disbursement went live on March 08, 2018 by the Honorable Chief Minister of Maharashtra; 25,000+ SHG members and 7 lakh girls are expected to benefit from the app
Integrated Child Development Scheme (ICDS) Maharashtra – Mobile application developed for capturing daily attendance of Anganwadi workers and their monthly payment processing; resulting in drastic reduction of the entire billing cycle from 2-3 months to ~ 1 week
EXPANSION & KNOWLEDGE INITIATIVES
Employee strength as on June 30, 2018 stood at 19,597, an increase of 1,359 employees in the quarter As on June 30, 2018, branch network stood at 1,105 branches and ATM Network stood at 1,741 which includes 561 Bunch Note Acceptors/Cash Recyclers
YES Bank was Upgraded to ‘AAA’ with Stable Outlook by Care Ratings:
Upgraded to highest Care AAA Rating from Care AA+ for Infrastructure Bonds and Tier II Bonds (Basel III) with Stable Outlook.
Upgraded to Care AA+ Rating from Care AA for Perpetual and Additional Tier I Bonds (Basel III); Stable Outlook which is the highest across all bank
CARE ratings cited Bank’s adequate Capitalization levels, experienced Senior Management, healthy Profitability consistently over the last decade, comfortable Asset Quality relative to other banks, improvement in Funding Profile and comfortable Liquidity position as triggers for Rating Upgrade Ranked #1,013 in the Forbes Global 2000 - World’s Largest Public Companies list for 2018 and ranked #155 in the Global 2000: Growth Champions list for 2018.
YES BANK received regulatory approvals from SEBI:
To commence its Mutual Fund business and For acting as Custodian of Securities
These approvals will complement YES BANK’s retail liabilities and wealth management, and Capital Market offerings
Sustained Leadership position in Clean Energy space by launching:
First-ever Green Deposit product - ‘Green Future: Deposit’ on World Environment Day for lending towards Sustainable Development Goals (SDGs) aligned sectors
Cleantech Accelerator: YES SCALE (focused on Smart City Tech, CleanTech, AgriTech, Lifesciences Tech & EduTech), as part of YES BANK’s multi-sector accelerator program. The accelerator Accelerator will focus on scaling up startups working on energy efficiency, waste management and water management – paving the way for a cleaner future
AWARDS & RECOGNITIONS
YES BANK was recognized and bestowed awards at multiple platforms for its Digital & Innovation practices:
Winner for outstanding performance in Instant Payment Products (UPI + IMPS + BHIM + USSD), at the National Payments Excellence Awards (NPCI) 2017 hosted by National Payments Corporation of India (NPCI)
Recognized with three Gold Awards at the India Content Leadership Award- 2018 for compelling marketing & corporate communications initiatives for its flagship Fintech start-up Business Innovation Programme, YES FINTECH and for successfully running CFO Insights, a magazine read widely by Chief Financial Officers (CFOs)
Recognized with the ‘Best Implementation of Digital Payments’ award at the 4th edition of prestigious BW Businessworld Digital India Summit & Awards 2018
Adjudged as the ‘Best Bank in India’ for Payments, Blockchain Initiative, API Initiative, Financial Supply chain Management Deal, Trade Finance Deal, Automation Application and Trade Finance at The Asian Banker Transaction Banking Awards 2018
Accolades for Small & Medium Enterprises Financing:
Adjudged as the ‘Best Bank in India for Small and Medium-Sized Enterprises (SMEs)’ at the Asiamoney Best Bank Awards 2018
Recognized as the ‘Best Banking Solutions provider for SMEs’ at Engineering Export Promotion Council (EEPC India) 48th Northern Region Awards for Export Excellence, Dehradun
Multiple recognitions for CSR practices:
Adjudged as winner in ‘Excellent CSR for Women Empowerment’ category of Social Footprints Awards 2018 for YES BANK’s innovative blended finance facility, aimed at promoting environmentally sustainable livelihood among women salt farmers in Gujarat
Announced as the winner in ‘Safe Drinking Water’ category of Social Footprints Awards 2018 for successful implementation of Water ATMs and Water Health Centers under Water and Livelihood project in India
Received ‘CSR Excellence Award’ for its first-of-its-kind MSME CSR project ‘Say YES to Sustainable MSMEs in India’ at the Apex India Awards
Mr. Rana Kapoor, MD & CEO, YES BANK was felicitated:
In the ‘Business Category’ for his immense contribution to society, promotion of culture and social initiatives at ‘NBT Utsav 2018’ organized by Navbharat Times
As the ‘CSR Icon of the Year’ for his immense contribution to sustainable development in India for YES BANK’s socio-environmental initiatives at the Apex India Awards
As the ‘Sustainability Leader of the Year’ at the Karlsruhe Sustainable Finance Awards 2018, Germany As ‘Professional Entrepreneur of the Year’ by Entrepreneur Magazine at the 8th Annual Entrepreneur India 2018 Convention in New Delhi.
YES Bank’s analyst conference call, scheduled on July 26, 2018 at 5:30 pm, can be heard at following link, post 10 pm:
https://www.yesbank.in/about-us/investors-relation/financial-information/financialresults
Krunal Mehta
YES BANK
Ph.: + 91 22 3347 9758, Cell : +91 +919867163634
Email:krunal.mehta1@yesbank.in Jyothi Goswami
Adfactors PR
Ph.: +91 97024 88388
Email: jyothi@adfactorspr.com
ABOUT YES BANK
YES BANK, India’s fourth largest private sector Bank, is the outcome of the professional & entrepreneurial commitment of its Founder Rana Kapoor and his top management team, to establish a high quality, customer centric, service driven, private Indian Bank catering to the Future Businesses of India. YES BANK has adopted international best practices, the highest standards of service quality and operational excellence, and offers comprehensive banking and financial solutions to all its valued customers.
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