Axis Bank reports Rs 112 cr net loss in Q2, operating profit up by 45 pct

Private sector lender Axis Bank today released its second-quarter financial results for the financial year 2019-20. The bank’s operating profit for the quarter grew 45 percent year-on-year (YoY) to Rs 5,952 crore from Rs 4,094 crore in Q2FY19.

Axis Bank reported a net loss of Rs 112 crore for Q2FY20 against a net profit of Rs 790 crore in Q2FY19. Image source: Reuters

Private sector lender Axis Bank today released its second-quarter financial results for the financial year 2019-20. The bank’s operating profit for the quarter grew 45 percent year-on-year (YoY) to Rs 5,952 crore from Rs 4,094 crore in Q2FY19. The company reported a net loss of Rs 112 crore for Q2FY20 against a net profit of Rs 790 crore in Q2FY19. This was due to one-time tax impact of Rs 2,138 crore for changes in corporate tax rate. Net profit was down by 16 percent YoY to Rs 1,258 crore in H1FY20.

The one-off impact for the bank, due to a change in corporate tax rate has been at Rs 2,138 crore. It has been fully adjusted through Q2FY20 financials, which has impacted the earnings significantly. Without adjustment for this oneoff Q2FY20 PAT would have been at Rs 2,026 crore, up 157 percent YoY.

The bank’s Net Interest Income (NII) grew 17 percent YoY to Rs 6,102 crore during Q2FY20 from Rs 5,232 crore in Q2FY19. Net interest margin for Q2FY20 stood at 3.51 percent. Other income, non-interest income (comprising of fee, trading profit and miscellaneous income) for Q2FY20 grew 45 percent YOY to Rs 3,896 crore as against Rs 2,678 crore during the same period last year. Fee income for Q2FY20 grew 11 percent YoY to Rs 2,649 crore.

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The key driver of fee income growth was retail fees, which grew 16 percent YoY and constituted 64 percent of the bank’s total fee income. Card fees grew strongly by 21 percent YoY. Transaction Banking fee grew 7 percent YoY and constituted 18 percent of the total fee income of the bank. Corporate credit related fees grew 13 percent YoY.

Provisions and contingencies
Specific Loan Loss Provisions for Q2FY20 were Rs 2,701 crore, compared to Rs 2,686 crore in Q2 last year and Rs 2,886 crore in Q1FY20. Including provisions for standard assets and other provisions, total provisions were Rs 3,518 crore.

Balance Sheet: As on 30th September 2019
The bank’s balance sheet grew 11 percent YoY and stood at Rs 8,09,294 crore as of September 30, 2019. The bank’s advances grew 14 percent YoY to Rs 5,21,594 crore as of September 30, 2019. Domestic loans grew 19 percent while the overseas income grew by 25 percent.

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Axis Bank Quarterly Results