YES Bank Q1 FY25 results: Profit jumps 47% YoY to Rs 502 crore; total income up 18%

Private lender YES Bank Ltd on Saturday reported a 46.69 per cent jump in its year-on-year (YoY) standalone net profit during the first-quarter of the ongoing financial year 2024-25 (Q1 FY25). During the quarter under review, profit came at Rs 502.43 crore compared with Rs 342.52 crore in the year-ago period.

The bank's total income rose 17.59 per cent to Rs 8,918.14 crore in Q1 FY25 from Rs 7,584.34 crore in the corresponding period last year.

"Non-interest income for Q1 FY25 was at Rs 1,199 crore. Normalised growth up 20.5 per cent YoY. Net provision costs were lower by 41.2 per cent YoY. Return on asset (RoA) was at 0.5 per cent against 0.4 per cent in Q1 FY24," it stated in a press release.

"Global rating agency Moody's upgraded the rating outlook to 'Positive' from 'Stable' in July 2024. ICRA has also upgraded the credit rating on the bank's instruments from A- to A," it also underscored.

Prashant Kumar, Managing Director & CEO at YES Bank, said the lender has started FY25 on a strong footing with RoA sustaining at 0.5 per cent despite seasonality of Q1 and "Nil priority sector lending (PSL) shortfalls."

"While the income engines are continuing to fire with normalised net income growth at 15 per cent YoY, the bank has been able to contain the operating cost growth at 8 per cent YoY. At the same time, the resolution momentum continues to be strong, leading to lower net credit costs, which is also aiding in RoA expansion," he added.

On the balance sheet front, Kumar said YES Bank is effectively executing its strategic objectives of sustained momentum in SME and mid-corporate segments, resumption of growth in corporate segment and calibration in retail assets with focus on profitability.

"Similarly, the retail and branch banking led deposits continue to grow at faster pace than wholesale deposits," he further stated.

Gross non-performing asset (NPA) percentage slipped to 1.7 per cent in the June 2024 quarter from 2 per cent in Q1 FY24. Net NPA percentage was down at 0.5 per cent YoY from 1 per cent in the same period last year.

On Friday, YES Bank shares settled 3.80 per cent lower at Rs 24.78. At this price, the stock has risen 9.45 per cent in 2024 so far.