Yes Bank (YESBANK) Q2 24/25 earnings summary

Executive summary

• Achieved highest quarterly net profit since reconstruction at INR 553 crores for Q2FY25, up 146% YoY and 10% sequentially, with ROA steady at 0.5% for the third consecutive quarter.

• Balance sheet grew 14.5% YoY; advances up 12.4% and deposits up 18.3% YoY, with CASA ratio improving to 32%.

• Asset quality improved, with gross NPA ratio at 1.6% and net NPA at 0.5%, both better YoY.

• Credit rating upgrades received from CRISIL and CARE for Basel III Tier 2 and infrastructure bonds.

• Statutory auditors issued unmodified limited review reports for both standalone and consolidated results.

Financial highlights

• Net interest income at INR 2,200 crores, up 14.3% YoY; net interest margin steady at 2.4%.

• Non-interest income at INR 1,407 crores, up 16.3% YoY and 17% QoQ.

• Pre-provision operating profit at INR 975 crores, up 22% YoY and 10% QoQ.

• Cost-to-income ratio improved to 73% from 74.4% YoY.

• Net provision cost for Q2 at INR 297 crores, down 41% YoY.

Outlook and guidance

• RIDF book expected to reduce below 5% of total assets by March 2027, aiding margin improvement.

• Margins expected to remain stable with a positive bias as RIDF unwinds and mix recalibration continues.

• Asset quality stress expected to remain range-bound for the next two quarters.

• Recovery and resolution for FY25 targeted at around INR 5,000 crores.

• Implementation of RBI Investment Master Directions led to a net positive impact of ₹125 crores (net of tax) on net worth.