Axis Bank Q1FY23 Earnings Snapshot: Private Lender Earnings Could Grow Up to 85% YoY, Asset Quality Should Improve – Check Details Here!
Private sector lender Axis Bank could report robust earnings in the first fiscal quarter (Q1FY23) on Monday, July 25, 2022. The bank could see double-digit year-on-year growth in revenue. ‘business and earnings, likewise, the bank’s asset quality is also expected to improve in the first quarter.
The highest estimate, ShareKhan, expects Axis Bank’s after-tax profit could rise by almost 85% to Rs 3,987 crore, followed by Equirus Securities expects a bank’s profit private is likely to rise by 81.5% to Rs 3,921.6 crore in the end-June quarter of FY23.
While YES Securities sees Axis Bank’s profit could rise over 68% to Rs 3,635.6 crore and Motilal Oswal expects profit growth of nearly 60% to Rs 3,450 crore in Q1FY23.
Brokerages estimate that Axis Bank’s net interest income (NII) could increase 17-21% in the June quarter of FY23.
Sequential loan growth would be reasonable as the bank rebounds from the impact of the third wave of Covid-19 in Q4FY22, somewhat offsetting the seasonal impact of a tepid first quarter of the fiscal year, YES Securities said. in his expectations.
On a quarterly (QoQ) basis, NII growth would be healthy due to positive changes in the mix of loans and yield on advances moving higher at a faster rate than the cost of deposits due to the repricing of loans to external benchmark, which involves expanding the NIM on a sequential basis, the brokerage added.
Similarly, sequential fee revenue growth would be healthy due to a rebound in payment-related fees somewhat offsetting the seasonal slowness and provisions would increase significantly on a sequential basis due to lower recoveries, YES also said. Securities.
Equirius Securities expects sequential advance growth of around 4%, also expects NIM (net interest margin) to be stable QoQ. The brokerage also expects limited net slippages and, therefore, contained provisions.
Similarly, Motilal Oswal expects credit costs to remain stable and slippages will be the main controllable elements. The brokerage expects the margin to expand slightly to around 3.5% and the cost of assets is another controllable key.
Expecting business growth to see healthy traction, Motilal Oswal said restructuring and the BB and lower pool would remain a priority area.