Axis Bank released their Q4 FY24 results, exceeding analyst expectations and marking a considerable turnaround from the previous year's loss. Let's delve deeper into the key highlights and what they signal for the bank's future.
Axis Bank Q4 results: profit surpasses expectations
- Axis Bank delivered a net profit of ₹7,130 crore in Q4 FY24, significantly surpassing analyst predictions of approximately ₹6,000 crore.
- This profit comes after a loss of ₹5,728.4 crore in the same quarter of the previous financial year, signifying a remarkable recovery.
Axis Bank Q4 results: strong revenue growth
- Net Interest Income (NII), a key measure of a bank's profitability from core lending activities, stood at ₹13,089 crore. This again outperformed analyst expectations of ₹12,803.9 crore.
- The strong NII indicates healthy loan growth and efficient interest rate management by the bank.
Axis Bank Q4 results: improved asset quality
- Gross Non-Performing Assets (NPAs), a measure of bad loans, witnessed a slight decrease compared to the previous quarter.
- Net NPAs also showed improvement, reflecting a decline in the percentage of non-repayable loans.
- The bank's provision coverage ratio (cumulative provisions to total risk-weighted assets) stood at a healthy level, indicating adequate reserves to cover potential loan losses.
Axis Bank Q4 results: full-year performance
- The bank's full-year net profit for FY24 came in at a robust ₹24,861 crore, a significant rise from ₹9,580 crore in FY23.
- This growth highlights the bank's overall financial health and profitability.
Axis Bank Q4 results: capital raise and dividend
- To further strengthen its financial position, Axis Bank's board approved raising funds of up to ₹20,000 crore.
- This capital infusion can be used for various purposes, including loan growth, technological advancements, and strategic acquisitions.
- The board also recommended a dividend of ₹1 per share for FY24, showcasing confidence in the bank's future performance.
Axis Bank Q4 results: market reaction
- Shares of Axis Bank responded positively to the news, closing at ₹1064.05 on the BSE, a 0.72% increase.
- This positive market reaction reflects investor confidence in the bank's recovery and growth prospects.
Looking ahead
- Axis Bank's Q4 results demonstrate a remarkable turnaround and a return to profitability.
- The bank's focus on improving asset quality, strong revenue growth, and strategic capital raise position it well for future growth.
- Investors will be keen to see how the bank utilises the raised funds and navigates the evolving economic landscape.
Overall, Axis Bank's Q4 results paint a positive picture of the bank's recovery and future prospects. The strong financial performance, combined with the capital raise and dividend announcement, indicates a bank is on a confident path forward.
