Yes Bank Q1FY20: From loans, provisions to deposits - a quick look at the result

In June 2019 (Q1FY20) quarter, private lender Yes Bank recorded a net profit of Rs 114 crore which witnessed a massive 91% drop versus Rs 1,260.4 crore from year ago same period. However, on a quarterly basis, the Q1FY20 PAT comes as a good news because the bank had added net loss of Rs 1,506.64 crore in Q4FY19 due to higher provisions. The bank’s management stated that, Yes Bank has demonstrated strong resilience in Revenues and Asset Quality. They added, “We believe that earnings trajectory should strengthen significantly from hereon. The Bank continues to reinforce its Digital leadership and continues to win marquee mandates on the back of it.”

If you missed out on key details of Yes Bank’s result during Q1FY20, then here’s a quick piece covering every major aspect of the financial performance. 

Return to Profitability:

NII grew 2.8% y-o-y to Rs 2,281 Crores in Q1FY20 despite absorbing impact of Rs 223 crores of interest reversals on account of slippages during the quarter. Meanwhile, Pre-Provisioning Operating Profit grew 48.0% sequentially to Rs 1,959 Crores. With that, net profit was at Rs 114 Crores for Q1FY20 despite absorbing one off impact from MTM provisions of Rs 1,109 Crores.

Calibrated Advances Growth; Retail Momentum continues: 

Yes Bank’s Advances grew by 10.1% y-o-y to Rs 2,36,300 Crores. Among which, retail Advances grew 43.3% y-o-y and 7.2% sequentially to 18.3% of Advances from 14.0% last year. Notably, retail Advances growth accounted for 60.5% of incremental y-o-y growth in Advances.

Resilient Asset Quality:

• Credit Cost of 32 bps during Q1FY20.
• The Bank maintains the Credit cost guidance of up to 125 bps for FY20.
• Provision Coverage Ratio (PCR) maintained at 43.1%.

Funding and Liquidity Profile:

Deposits grew by 5.9% y-o-y to Rs 2,25,902 Crores.

Retail TDs grew by 37.7% y-o-y and 8.2% sequentially and now account for 28% of total deposits. CASA ratio at 30.2%.

Daily average LCR sequentially improved to 117.3% from 110.9%. LCR as of June 30, 2019 at 132.6%.
 

Capital Position:

Total Capital Adequacy at 15.7% with Total Capital Funds at Rs 50,569 Crores. Tier I Ratio and CET I ratio at 10.7% and 8.0% respectively. Also, risk Weighted Assets stood at Rs 3,22,982 Crores.