Yes Bank (YESBANK) Q1 24/25 earnings summary

Executive summary

• Achieved highest quarterly net profit since reconstruction at INR 503 crore (₹502 Cr), up 46.7% YoY and 11.2% sequentially, with ROA steady at 0.5% for the second consecutive quarter, 10 bps higher YoY.

• Advances grew 14.7% YoY to ₹229,565 Cr; deposits up 20.8% YoY to ₹265,072 Cr.

• Asset quality improved: GNPA at 1.7%, NNPA at 0.5%, and provision coverage ratio at 67.6%.

• CET1 ratio strengthened to 13.3% following warrant conversion by private equity investors, boosting CET1 by 100 bps.

• Received rating upgrades from Moody's (Ba3 to positive) and ICRA (A from A-), reflecting improved external stakeholder confidence.

Financial highlights

• Net interest income at INR 2,244 crore, up 12.2% YoY and 4.2% sequentially; net interest margin steady at 2.4%.

• Core fee income grew 20.5% YoY; retail banking fees up 26% YoY; non-interest income up 5.1% YoY to ₹1,199 Cr.

• Pre-provision operating profit at INR 885 crore, up 8.2% YoY; normalized operating profit growth at 37.6% YoY.

• Cost-to-income ratio (normalized) improved to 71.8% from 76.4% YoY; reported at 74.3%.

• Net provision cost at INR 202 crore, down 41.2% YoY and 55% sequentially.

Outlook and guidance

• Retail loan growth expected to remain subdued in FY25 due to product mix recalibration and risk management; growth to pick up in FY26-27.

• SME and mid-corporate advances to continue mid-20s% growth; large corporate growth picking up as legacy book rundown slows.

• PSL compliance drag expected to reduce by 50% over next 3 years, supporting margin improvement.

• Focus on further improving profitability through mix optimization, cost rationalization, and digital initiatives.