HDFC Bank (HDFCBANK) Q1 24/25 earnings summary

Executive summary

• Management is focused on long-term stability and profitable growth post-merger, avoiding short-term guidance to reduce distractions.

• Q1 FY25 saw strong growth in average deposits (up 4.6% QoQ) and advances (up 0.8% QoQ), with stable asset quality and robust profitability.

• Profit after tax reached ₹162 bn, with a return on assets of 1.9% and return on equity of 15.0%.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved by the Board on July 20, 2024.

• HDFC Limited merger effective July 1, 2023; prior period numbers are not comparable.

Financial highlights

• Standalone net profit for Q1 FY25 was ₹16,174.75 crore, up from ₹11,951.77 crore in Q1 FY24.

• Standalone net interest income grew 2.6% QoQ and 26.4% YoY to ₹298.4 bn; net revenue at ₹405.1 bn, up 23.4% YoY.

• Consolidated net profit for Q1 FY25 was ₹16,474.85 crore, compared to ₹12,403.25 crore in Q1 FY24.

• Gross NPA at 1.33%, net NPA at 0.3%; credit cost at 42 bps.

• Capital adequacy ratio at 19.3%, CET1 at 16.8%.

Outlook and guidance

• Management expects the next three to four quarters to show the impact of ongoing adjustments, with a focus on maintaining profitability and improving the loan-to-deposit ratio.

• The transition to new RBI investment portfolio norms from April 1, 2024, impacts comparability of investment income and profit figures with prior periods.

• Cost-to-income ratio is expected to trend downward over the medium to long term, with FY25 being a key year for progress.

• Management highlights stable asset quality, strong capital position, and continued focus on franchise expansion.

• Forward-looking statements caution on macroeconomic, regulatory, and geopolitical risks.