Yes Bank (YESBANK) Q3 24/25 earnings summary

Executive summary

• Achieved highest ever quarterly net profit since reconstruction at INR 612 Cr for Q3FY25, up 164.5% year-over-year and 10.7% sequentially, with five consecutive quarters of sequential net profit growth.

• Operating profit rose 25% year-over-year and 10.6% sequentially to INR 1,079 Cr.

• Advances grew 12.6% year-over-year to INR 244,834 Cr, with strong growth in SME, mid-corporate, and corporate segments.

• Deposits increased 14.6% year-over-year to INR 277,224 Cr, with CASA ratio improving to 33.1%.

• Asset quality improved: GNPA at 1.6%, NNPA at 0.5%, and provision coverage ratio at 71.2%.

Financial highlights

• Net Interest Income (NII) for Q3FY25 at INR 2,224 Cr, up 10.2% year-over-year and 1.0% sequentially; NIM stable at 2.4%.

• Non-interest/fee income at INR 1,512 Cr, up 26.6% year-over-year and 7.5% sequentially; fee income as a percentage of total assets at 1.5%.

• Operating expenses at INR 2,657 Cr, up 13.2% year-over-year and 0.9% sequentially; cost-to-income ratio improved to 71.1%.

• Return on Assets (RoA) at 0.6% vs. 0.2% in Q3FY24.

• Standalone Q3 total income rose to ₹934,115 lakhs from ₹817,945 lakhs year-over-year; net profit increased to ₹61,227 lakhs from ₹23,146 lakhs.

Outlook and guidance

• On track to achieve INR 5,000 Cr in recoveries and resolutions for FY 2025.

• Expect further improvement in cost-to-income ratio and NIM expansion as retail asset growth resumes and RIDF balances reduce.

• Credit cost expected to average around 30 basis points, with normalization anticipated as SR book reduces.

• Continued focus on profitability through product and sourcing mix optimization, especially in retail advances.

• Ongoing legal matters and regulatory changes are being closely monitored.