§ Return to full year Profitability• FY22 profit at INR 1,066 Crs against loss of INR 3,462 Crs in FY21 and loss of INR 22,715 Crs in FY201 – FY22 is the first full Year profit since FY19. Q4FY22 profit at INR 367 Crs up 38% Q-o-Q• Operating Profit at INR 2,916 Cr in FY22and at INR 774 Cr in Q4FY22; up 6% Q-o-Q• Total Provision Costs for FY22 at INR 1,480 Crs declined 84% Y-o-Y, aided by lower slippages and higher recoveries & upgrades; Q4FY22 Provision costs at INR 271 Crs declined 28% Q-o-Q§ Strong growth in Deposits and Granular Advances• Balance Sheet grew 16% Y-o-Y• C/D ratio continues to improve, at 91.8% v/s. 102.4% in FY21 and 95.6% last quarter• New Sanctions / Disbursement of INR 70k Crs in FY22across various segments• Retail & MSME: Corporate Mix improved by 300 bps Q-o-Q to 60:40 – Strategic Objective achieved one year ahead of time• CASA ratio at 31.1% vs 26.1% last year and 30.4% last quarter, up 70 bps Q-o-Q• 11.4 Lacs CASA Accounts opened in FY22 vs. 6.6 Lacs in FY21§ Improving Asset Quality• GNPA ratio at 13.9% vs. 15.4% last year and 14.7% last quarter• NNPA ratio at 4.5% vs. 5.9% in FY21 and 5.3% last quarter – led by o Lower Slippages at INR 5,795 Crs vs. INR 12,035 Crs in FY21o Slippages for Q4FY22 at INR 802 Crs(Lowest in FY22)• Resolution Momentum continues with Total Recoveries & Upgrades foro FY22 at INR 7,290 Crs vs. INR 5,782 Crs in FY21o Q4FY22 at INR 1,828 Crs vs. INR 1,182 Crs last quarter§ Capital Position – CET 1 at 11.6%; CRAR at 17.4% and RWA to Total Assets at 73.0% vs. 84.4%in FY21 and 75.3% last quarter§ Other Highlights & Achievements during Q4FY22• Nearly every 3rd digital transaction undertaken in India in FY22 was powered by YES Bank• Expanding platform reach & strength:o Opened 50 new branches taking total branch count to 1122 for FY22o Net increase of 2,000+ YES Bankers taking the total headcount to 24,346 in FY22• Adjudged Best IT Risk Management and Cyber Security Initiatives and Cloud Adoption amongst the Medium Banks category at 17th IBA Awards• The Bank’s stock was included in the FTSE All World index• CARE Ratings upgrades rating to BBB+ from BBB and maintains outlook as Positive
1 Excludes Extraordinary Item
Commenting on the results and financial performance, Prashant Kumar, MD & CEO, YES BANK said, “This transformation journey taking place at YES Bank has resulted into sustained improvement in balance sheet growth, accelerated granularization, improving asset quality trends, enhanced liquidity and stronger capital position over the past 2 years. While the core operating profitability of the franchise continues to improve, the drag from legacy stressed assets has significantly reduced, resulting into Net Profitability. The Bank continues to invest in its digital infrastructure in its quest to retain its dominant place in the country’s digital payments and fintech ecosystem. The Bank has built up significant momentum in new business generation, while continuing to invest in its platform and people to build a differentiated franchise that delivers sustainable and profitable growth in a responsible manner.”
Financial Highlights
Profit and Loss
§ NII at INR 6,498 Crs for FY22. Q4FY22 NII at INR 1,819Crs up 3% Q-o-Q.§ Normalised NII(adjusted for interest recoveries on NPA’s & one offs) for FY22 grew nearly 3%§ NIM for Q4FY22 at 2.5% up nearly 5bps Q-o-Q. FY22 NIM at 2.3%§ Non-Interest Income for FY22 at INR 3,263 Crs grew 8% Y-o-Y. Q4FY22 Non-Interest Income at INR 882 Crs grew 20% Q-o-Q§ Normalised Non-Interest Income(adjusted for unrealised and realised gain on investments) for FY22 grew >40% Y-o-Y§ Operating Expenses at INR 6,844 Crs for FY22, up 18% Y-o-Y, and INR 1,927 Crs for Q4FY22, up 9% Q-o-Q.§ Operating profit stands at INR 2,916 Crs in FY22 and at INR 774 Crs in Q4FY22 up 6% Q-o-Q§ Total Provision Costs for FY22 at INR 1,480 Crs declined 84% Y-o-Y, aided by• Lower slippages at INR 5,795 Crs(down 51% Y-o-Y)• Higher recoveries and upgrades at INR 7,290 Crs(up 26% Y-o-Y).§ Q4FY22 Provision costs at INR 271 Crs declined 28% Q-o-Q§ Net Profit for FY22 at INR 1,066 Cr against losses of INR 3,462 Crs in FY21 and loss of INR 22,715 Crs in FY201 – FY22 is the first full Year profit since FY19. Q4FY22 profit at INR 367 Crs up 38% Q-o-Q
Balance Sheet
§ Net Advances at INR 181,052 Crs, 8% up Y-o-Y & 3% Q-o-Q• Sustained improvement in Granularity – Retail: Corp. mix at 60:40 up 300bps Q-o-Q- Strategic Objective achieved one year ahead of time• Retail Advances mix at 36.0% vs. 33.7% in Q3FY22• New Sanctions / Disbursements of nearly INR 70k Cr in FY22o Gross Retail Assets Disbursements ofnearly INR 33,000 Cr in FY22 (INR 10,201 Cr for Q4FY22)o Rural Disbursements of nearly INR 2,500 Crs(INR 857 Cr for Q4FY22)o SME Disbursements1 of nearly INR 18,000 Crs (INR 5,089 Cr for Q4FY22)o Wholesale Banking Disbursements of nearly INR 16,000 Crs (INR 3,776 Cr for Q4FY22)§ Total Balance Sheet grew 16% Y-o-Y, 5% up Q-o-Q;§ CD Ratio further improves to 91.8% vs. 102.4% in FY21 and 95.6% last quarter§ Total Deposits at INR 197,192 Crs, 21% up Y-o-Y &up 7.0% Q-o-Q• CASA ratio 31.1% vs. 26.1% in FY21 and 30.4% last quarter; CASA continues to grow at 2x rate of overall deposits growth• Sustained Granularization with CASA + Retail TDs at 61.6% vs.57.7%in FY21 and 61.3% last quarter• 11.4 Lacs CASA Accounts opened in FY22 vs. 6.6 Lacs in FY21• 312K CASA Accounts opened in Q4FY22 vs. 269k last quarter§ Average LCR during the quarter remains healthy at 114.6%; LCR as on March 31, 2022 at 126.8%§ CET 1 ratio at 11.6%3: Total CRAR at 17.4%3• RWA to Total Assets 73.0% vs. 84.4% in FY21 and 75.3% last quarter§ Investments at INR 51,896 Crs up 20% Y-o-Y and down 3% Q-o-Q.§ Borrowings at INR 72,205 Crs up 13% Y-o-Y and flattish Q-o-Q
Asset Quality
§ Sustained Improvement in NPA Ratios• GNPA ratio at 13.9% vs. 15.4% in FY21 and 14.7% last quarter• NNPA ratio at 4.5% vs. 5.9% in FY21 and 5.3% last quarter§ Slippages continue to trend lower for –• FY22 at INR 5,795 Crs vs. INR 12,035 Crs in FY21• Q4FY22 at INR 802 Crs vs. INR 978 Crs last quarter§ Overdue Book trending lower by nearly INR 1,500 Crs Q-o-Q• 31-60 days book at INR 4,483 Crs lower by INR 822 Crs Q-o-Q• 61-90 days book at INR 1,264 Crs lower by INR 679 Crs Q-o-Q§ Resolution Momentum continues to be strong with Total Recoveries & Upgrades for FY22 at INR 7,290 Crs vs. INR 5,782 in FY21; Q4FY22 Cash Recoveries & Upgrades at INR 1,828 Crs
Digital & Other Highlights/ Achievements
§ Nearly every 3rd digital transaction undertaken in India in FY22 was powered by YES Bank§ Ranked 1 in NEFT Outward Volumes and UPI market share§ CARE Ratings upgrades rating to BBB+ from BBB and maintains outlook as Positive§ YES Bank wins Best IT Risk Management and Cyber Security Initiatives and Cloud Adoption in the Medium Banks category at 17th IBA Awards§ Launched an annual startup enabler program, YES BANK Agri Infinity, which seeks to co-develop digital financial solutions for the food and agriculture ecosystem by mentoring entrepreneurial ventures in the field§ Included in the FTSE All World index
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