AU Small Finance Bank (AUBANK) investor relations material

Executive summary

• Delivered strong Q4 FY26 performance with 25% QoQ and 65% YoY profit growth, ROA at 1.8% for the quarter and 1.6% for the year, and ROE at 14.2%.

• Loan portfolio grew 8% QoQ and 21% YoY; deposit growth at 10% QoQ and 23% YoY, outpacing private sector peers.

• Asset quality improved with GNPA down to 2.03% and NNPA at 0.74% by Mar'26.

• Strategic focus on scaling liabilities, tech-driven efficiency, and transitioning to a universal bank.

• Dividend of ₹1 per share recommended for FY26, subject to approvals.

Financial highlights

• Q4 profit after tax at ₹832 crore, up 25% QoQ and 65% YoY; full-year PAT at ₹2,641 crore, up 25% YoY.

• Net interest income up 10% QoQ and 23% YoY in Q4; full-year NII growth at 14%.

• NIM expanded to 5.96% in Q4, with FY26 NIM at 5.65%.

• Operating expenses rose 6% QoQ; provisions down 19% QoQ and 10% YoY.

• Basic EPS for FY26 stood at ₹35.40, compared to ₹28.32 in FY25.

Outlook and guidance

• Targeting sustainable compounding at 2x-2.5x India's nominal GDP growth.

• Focus on maintaining ROA at 1.8% on a full-year basis, with cost and credit cost improvements as key levers.

• Credit cost guidance for FY27 around 90 bps, reflecting prudent risk-taking.

• Plans to add 80-100 new branches in FY27, focusing on urban markets and expanding product distribution.

• Fund-raising limits set at ₹7,500 crore for equity and ₹6,000 crore for debt, valid for 12 months post shareholder approval.