2024-10-16 21:55:26 :
Private sector lender Axis Bank expects net profit to rise 8-9% year-on-year in the quarter ending September 2024. The profit growth was attributed to growth in net interest income (NII), non-interest income and reduced slippages.
According to the average forecast of five brokerages, NII is expected to increase by 10% year-on-year in the second quarter. While slippage is expected to increase 29% year over year, it is expected to decrease 12% compared to the previous quarter.
Loan growth is expected to be moderate this quarter, up 2% quarter-on-quarter, but up 11% year-over-year.
In the last June quarter, Axis Bank posted a net profit of $6,035 crore, up 4% year-on-year, while net interest income grew 12% to $13,448 Crores.
What expectations do brokerages have for Axis Bank in the second quarter of fiscal 2025?
Brokerage firm Kotak’s institutional equity net interest margin will remain stable at around 3.8%. “Our loans grew 11% year over year (up 2% sequentially). We expect net interest margin to be stable sequentially (3.8%) as we move past the phase of fund repricing. Fee income growth should be slow, reflecting weak loan growth ,” the company said.
It further added, “We expect slippage $5,000 crore (2% of loans), mainly driven by the retail sector. Key areas of discussion: slippage, particularly on the unsecured tranche, deposit mobilization and net interest margin progress. “
In the same period last year (Q2FY24), Axis Bank reported a net profit of $5,863.6 crore, while in the previous quarter of the current financial year (Q1 FY25), the profit was $6,034.6 Crores.
Domestic brokerage firm Motilal Oswal Financial expects Axis Bank’s second-quarter profit after tax to be $66.3 billion rupees, a year-on-year increase of 13%. On the operational front, Treasury expects net interest income (NII) to grow approximately 11% year-on-year to $13,630 Crores.
“Other income” is estimated to be $Axis Bank’s ‘total revenue’ likely to hit Rs 6,070 crore by end of Q2 FY25 $19,700 crore, according to MOFSL.
Follow us On Social Media Twitter/X
