Yes Bank is poised to announce its Q3 FY24 results, and analysts are optimistic about a positive outcome. The anticipation is based on the expectation of a decent growth in net profit and Net Interest Income (NII). In the previous quarter, Q2 FY24, Yes Bank exhibited a 47% growth in net profit, reaching Rs 225 crore, and a 25% increase in total income from operations, totaling Rs 7,921 crore.
Analysts predict that the bank’s asset quality will remain stable in Q3 FY24, attributed to improvements in recoveries over the past quarters. The management’s focus on rebuilding the business is seen as a pivotal factor, with market watchers closely monitoring the management commentary for further insights.
Shreyansh V Shah, a Research Analyst at StoxBox, expressed confidence in Yes Bank’s performance, expecting a healthy set of numbers in Q3 FY24. Shah emphasized the stability of the bank’s asset quality, underscored by the flattish sequential trend in the Special Mentioned Accounts (SMA) book. The traction observed in retail and MSME (Micro, Small, and Medium Enterprises) segments signals the bank’s gradual strengthening of its retail franchise. Additionally, the Q3FY24 business updates indicate healthy disbursements in retail and MSME segments.
Brokerage firm Emkay forecasts a net profit of Rs 415.1 crore for Yes Bank in Q3 FY24. The Net Interest Income (NII) is expected to show a 4.5% year-on-year (YoY) increase (5.3% quarter-on-quarter) to Rs 2,059 crore. However, Pre Provision Operating Profit (PPOP) is anticipated to decline by 6.6% YoY (but rise by 2.7% QoQ) to Rs 853.4 crore.
Kotak Institutional Equities sees a 6% YoY growth in NII for Yes Bank, reflecting underlying business growth. While the retail and MSME segments show momentum, the overall loan growth is projected to be lower than the industry average. Deposit growth at 11% YoY meets business requirements but has decelerated significantly in recent quarters.
Nomura expects a substantial YoY growth of 508% in Yes Bank’s net profit and a 4% growth in NII. However, it foresees a 4% YoY decline in pre-provision operating profit, amounting to Rs 880 crore.
ICICI Securities projects a remarkable 876% YoY increase in profit for Yes Bank, reaching Rs 503 crore. The brokerage also anticipates a 2% YoY growth in NII, amounting to Rs 2,009.50 crore. Notably, ICICI Securities expects slippages to decrease by 25.5% YoY, falling from Rs 1,610 crore to Rs 1,200 crore. The Net Interest Margin (NIM) is projected at 2.32%, a slight dip from 2.3% in September but comparable to the 2.5% reported in the same quarter last year.
In Q2 FY24, Yes Bank faced a 3.3% decline in NII, which amounted to Rs 1,925 crore. Provisions and contingencies were reported at Rs 500 crore during the same period.
Over the last month, Yes Bank shares have demonstrated a robust performance, registering a 19% increase. This positive momentum follows a commendable run in the bourses over the past six months. As of Thursday, Yes Bank shares concluded at Rs 24.88, marking a 0.81% increase.
Yes Bank is projected to unveil encouraging Q3 FY24 results, buoyed by analysts’ optimism for growth in net profit and Net Interest Income (NII). In Q2 FY24, the bank reported a 47% jump in net profit and a 25% increase in total income. Analysts attribute the anticipated positive performance to improved recoveries and a stable asset quality. Emkay predicts a net profit of Rs 415.1 crore, and Kotak expects a 6% growth in NII. The focus is on the bank’s rebound in retail and MSME segments, with ICICI Securities forecasting a significant profit surge and a slight increase in NII.
In summary, the outlook for Yes Bank’s Q3 FY24 results appears promising, with analysts expecting favorable numbers driven by stable asset quality, strategic business focus, and positive momentum in key segments. The market will keenly await the official announcement to assess the bank’s performance in greater detail.