YES BANK Announces Financial Results for the Quarter Ended June 30, 2018

MUMBAI, July 26, 2018 /PRNewswire/ --

1. Key Highlights 

- Sustained Earnings Delivery with improving efficiency: 

• Net Profit at INR 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)

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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."

2. PROFIT & LOSS: Sustained Earnings Delivery with improving efficiency 

• Net Profit grew by 30.5% y-oy to INR 1,260.4 Crores
• Net Interest Income grew by 22.7% y-o-y to INR 2,219.1 Crores and Non-Interest Income grew by 49.6%
  y-o-y to INR 1,694.1 Crores with NIMs at 3.3%
• Provisions stood at INR 625.7 Crores of which:
  - INR 379.9 Crores is NPA provisioning which includes INR 149.0 Crores towards increase in Provision Coverage to 55.3%
  -INR 92.7 Crores is towards MTM losses on Bonds. MTM losses of INR 278.0 Crores will be amortized during FY19 under the RBI dispensation
  
• Operating Profit posted robust growth of 44.0% y-o-y to INR 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 INR 114.1 per share as on June 30, 2018

3. BALANCE SHEET: Robust Advances growth with increasing granularity  

• Total Assets grew by 49.7% y-o-y to INR 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 INR 2,13,394.5 Crores
• CASA ratio at 35.1%, on the back of 35.7% y-o-y growth. SA (INR  46,597.5 Crores) and CA (INR 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 INR 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:

•    
                                       As on Jun As on Jun  Growth  As on Mar  Growth
           Business Segment            30, 2018   30, 2017  (y-o-y)  31, 2018  (q-o-q)
  A) Corporate Banking                     67.6%     68.1%     52.2%    67.9%    5.0%
  of which IBU Advances                       8.8%      4.3%    214.5%     7.1%   31.6%
  B) Retail & Business Banking of which:   32.4%     31.9%     56.0%   32.1%    6.5%
     i) Medium Enterprises                       8.7%        9.9%     35.6%     9.7%  (5.0%)
  ii) Small and Micro Enterprises             9.7%     11.5%     28.7%      10.2%  (0.4%)
  iii) Retail Banking                        14.0%     10.5%    105.2%    12.2%   21.3%
  Total                                     100.0%    100.0%       53.4%   100.0%    5.5%
  

  
  
• Total Capital Adequacy at 17.3% with Total Capital Funds at INR 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 INR 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

About YES BANK 

YES BANK, India's fourth largest private sector Bank with a pan India presence across all 29 states and 7 Union Territories of India, headquartered in the Lower Parel Innovation District (LPID) of Mumbai, is the outcome of the professional & entrepreneurial commitment of its Founder Rana Kapoor and its 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. 

YES BANK has a knowledge driven approach to banking, and offers a superior customer experience for its retail, corporate and emerging corporate banking clients. YES BANK is steadily evolving as the Professionals' Bank of India with the long term mission of 'BUILDING THE FINEST QUALITY LARGE BANK OF THE WORLD IN INDIA'. 

Media Contact:
Swati Singh
[email protected]
+91-9874560033
YES BANK