Axis Bank Q2 Results Review


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Axis Bank Ltd. posted better than estimated numbers. Both business and operational performance were robust, asset quality trend continued to improve. Net interest income was up 31.1% YoY and 10.4% QoQ to Rs 10360 crore on the back of 36 basis points sequential improvement in net interest margins.

On a sequential basis, other income reported significant growth of 31.4% and ~4% YoY to Rs 3941 crore, mainly aided by fee income, which grew 20% YoY. Trading loss was at Rs 86 crore in Q2 FY23 versus a loss of Rs 84 crore in Q1 FY23.

Axis Bank’s controlled opex and higher income levels resulted in decline in cost/income ratio at ~46% versus 49% a year ago and 52.5% in previous quarter. Provisions for the quarter increased 53% QoQ and declined ~68% YoY to Rs 550 crore. Credit cost declined 3 bps QoQ, 16 bps YoY to 0.38%.

Thus, profit after tax for the quarter came in at Rs 5330 crore (up 70% YoY, 29% QoQ) and was ahead of our estimates.

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