Yes Bank Q4 Results: Net profit drops 45% YoY to Rs 202.43 crore on higher provisions; misses estimates

Yes Bank on Saturday reported a 45% year-on-year drop in standalone net profit to Rs 202.43 crore for the quarter ended March 31 from Rs 367.46 crore in the corresponding quarter of FY22. Provisions for bad loans have increased.

The profit after tax (PAT) was below the Street's estimates, which expected it in the range of Rs 232-405 crore.

Yes Bank shares ended at Rs 16.20 on the NSE on Friday, down Rs 0.30 or 1.82% from Thursday's closing price.

Shares of the lender have been a big underperformer in 2023, as it dropped nearly 20%. However, much of this fall has been triggered by expectations of stake sale by peer lenders following the expiry of the 3-year lock-in period.

The net profit for FY23 stood at Rs 717.40 versus 1,066.21 crore reported by the lender in FY22.

However, the net profit was up nearly 290% sequentially versus Rs 51.52 crore reported in Q3FY23.

The standalone interest earned during the period stood at Rs 6,216.24 crore, which was up over 25% YoY from Rs 4,947.53 crore in Q4FY22. For the year ended March 31, 2023, the interest income stood at Rs 22,697.43 crore as against Rs 19,023.51 reported during the previous financial year.

The total income for the reporting quarter stood at Rs 7,298.51 crore, up 25% YoY. The interest expended during the January-March 2023 quarter stood at Rs 4,110.92 crore, a rise of 31% YoY and 5.4% sequentially.

The Gross NPA was down to 2.17% in the March 2023 quarter versus 13.93% in the year ago period. However it was higher from Q3FY23 at 2.02%. However, net NPA at 0.83% was down sequentially (1.03%) and on the YoY basis (4.53%), the company said in its filing to the exchanges.

The bank's cash and cash equivalent at the year end stood at Rs 19,274.44 crore, down from Rs 46,639.59 crore, it reported at the and of previous financial year.

The revenue from its retail banking segment was reported at Rs 3,218.31 crore in Q4FY23, up from Rs 2,226.11 crore in Q4FY22. In Q3FY23, the revenue from retail stood at Rs 2,880.03 crore. The corporate banking revenue stood at Rs 2,504.46 crore up from Rs 2,656.72 crore in Q3FY23 and Rs 2,294.70 crore in Q4 of FY2022.

“Over the last three years, the bank has significantly progressed on several strategic objectives such as strengthening of governance and compliance standards, bolstering the balance sheet through granularity, addressing the asset quality concerns, building up a strong liability franchise and expanding the customer base," Prashant Kumar, Managing Director & Chief Executive Officer said.

"Our Retail franchise has now reached a critical scale and is poised for profitable growth. With the current momentum of accelerated growth, the efficiency gains and operating leverage will naturally drive the Bank’s profitability upwards," Kumar said.