The Federal Bank (FEDERALBNK) Q4 24/25 earnings summary

Executive summary

• Achieved record annual net profit of Rs 405,189 lakhs (INR 4,051.89 crore) for FY25, with Q4 net profit at Rs 103,023 lakhs (INR 1,030 crore), up 14% year-over-year, and total business surpassing Rs 518,000 crore.

• Asset quality reached a decadal best, with gross NPA at 1.84%, net NPA at 0.44%, and provision coverage ratio at 75.37%.

• Strategic focus on mid-yielding, mass-affluent, MSME, and digital segments drove sustainable profitability and quality growth.

• Board recommended a final dividend of Rs 1.20 per equity share for FY 2024-25, subject to shareholder approval.

• Audited standalone and consolidated financial results for FY25 were approved with an unmodified audit opinion from joint statutory auditors.

Financial highlights

• Standalone net profit for FY25 was Rs 405,189 lakhs, up from Rs 372,060 lakhs year-over-year; Q4 net profit was Rs 103,023 lakhs.

• Other income hit a record Rs 100,600 lakhs, with core fee income growing 6% quarter-on-quarter and 30% year-over-year.

• Net interest income for Q4 FY25 was Rs 237,700 lakhs, up 8% year-over-year; operating profit for Q4 FY25 at Rs 146,500 lakhs, up 32% year-over-year.

• Total deposits grew 6.5% QoQ and 12% YoY to Rs 2,83,647 crore; CASA ratio at 30.23%.

• Advances grew 12% YoY to Rs 2,38,000 crore, with retail and MSME segments comprising 65.9% of the loan book.

Outlook and guidance

• Confident in sustaining growth in mid- and high-yield segments, with gold loans expected to resume growth post-regulatory clarity.

• Loan growth is expected to improve beyond the current 12% level, with a focus on quality and profitability.

• Continued investment in digital transformation and partnerships to drive efficiency and customer acquisition.

• NIM management will remain agile amid expected further rate cuts; no specific NIM guidance provided.

• Board recommended a dividend of Rs 1.20 per share for FY 2024-25, consistent with the previous year.