Axis Bank Limited · NSE:AXISBANK
Axis Bank — Q3 FY2023 Earnings Presentation
89 slides from Axis Bank's earnings presentation, Jan 23, 2023
Slide 1: Cover letter to stock exchanges: revised press release and presentation
AXIS/CO/CS/520/2022-23 January 23, 2023 National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor P. J. Towers, Plot No. C/1, “G” Block Dalal Street, Bandra-Kurla Complex Fort, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 NSE Symbol: AXISBANK BSE Scrip Code : 532215 Dear Sir(s)
Slide 2: Press release: Axis Bank announces financial results
PRESS RELEASE AXIS BANK ANNOUNCES FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31st DECEMBER 2022 Q3FY23 PAT at `5,853 crores, up 62% YOY, Consolidated ROA at 2.00%, ROE% at 19.81%, driven by strong NII growth, higher fees and moderation in operating expenses o NII1 up 32% YOY and 11% QOQ
Slide 3: Performance at a Glance
Performance at a Glance • Strong operating performance, net profit grew 62% YOY and 10% QOQ to `5,853 crores o NIM at 4.26%, improved by 73 bps YOY and 30 bps QOQ, NII grew 32% YOY and 11% QOQ o Fee income grew 23% YOY & 6% QOQ, Retail fee grew 30% YOY & 8% QOQ, Retail cards fee up 44% YOY o Operati
Slide 4: Profit & Loss Account: Period ended 31st December 2022
Profit & Loss Account: Period ended 31st December 2022 Core Operating Profit and Net Profit The Bank’s operating profit for Q3FY23 grew 51% YOY and 20% QOQ to `9,277 crores. Core operating profit for the quarter grew 53% YOY and 13% QOQ to `8,850 crores. Net profit at `5,853 crores in Q3FY23 grew 62
Slide 5: Balance Sheet: As on 31st December 2022
Balance Sheet: As on 31st December 2022 The Bank’s balance sheet grew 10% YOY and stood at `12,23,509 crores as on 31st December 2022. The total deposits grew by 9% YOY and 2% QOQ on quarterly average balance (QAB) basis; and 10% YOY and 5% QOQ on period end basis. On QAB basis, savings account depo
Slide 6: and over 16 lakh reviews. The Bank’s mobile app continues to see strong growth,
and over 16 lakh reviews. The Bank’s mobile app continues to see strong growth, with Monthly Active Users of ~11.0 million and nearly ~6.8 million non-Axis Bank customers using Axis Mobile and Axis Pay apps. The Bank has been among the first to go live on Account Aggregator (AA) network and has seen
Slide 7: Network and key subsidiaries' performance
The fund based outstanding of standard restructured loans implemented under resolution framework for COVID-19 related stress (Covid 1.0 and Covid 2.0) declined during the quarter and as at 31st December, 2022 stood at `2,482 crores that translates to 0.30% of the gross customer assets. The Bank carr
Slide 8: Financial Performance
` crore Financial Performance Q3FY23 Q3FY22 % Growth 9MFY23 9MFY22 % Growth Net Interest Income 11,459 8,653 32% 31,204 24,313 28% Other Income 4,665 3,840 21% 11,606 10,997 6% - Fee Income 4,101 3,344 23% 11,540 9,242 25% - Trading Income 428 367 17% (325) 1,396 - - Miscellaneous Income 136 129 5%
Slide 9: Business Performance and balance sheet
` crore As on As on Business Performance st st % Growth 31 December’22 31 December’21 Total Deposits (i)+(ii) 8,48,173 7,71,670 10% (i) CASA Deposits 3,77,713 3,44,878 10% - Savings Bank Deposits 2,51,392 2,28,166 10% - Current Account Deposits 1,26,321 1,16,712 8% CASA Deposits as % of Total Deposi
Slide 10: Safe Harbor
A presentation for investors is being separately placed on the Bank's website: www.axisbank.com. For press queries, please contact Ms Piyali Reddy at 91-22-24252021 or email: Piyali.Reddy@axisbank.com Safe Harbor Except for the historical information contained herein, statements in this release whic
Slide 11: Investor Presentation
Investor Presentation Quarterly Results Q3FY23 NSE: AXISBANK BSE: 532215 LSE (GDR): AXB
Slide 12: Axis Bank at a glance
Axis Bank at a glance 3rd 87,575 4,849 6th Axis Bank largest Private Bank in Employees Branches* straight year India Part of FTSE 4Good EI ^ Traditional Banking Segment Digital Banking Segment Market Share 5.4% 4.8% 5.7% 17% 15% 12% 1 Assets # # Deposits # Advances # UPI Mobile** Credit Cards ^^ Pro
Slide 13: Agenda
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment performance Asset Quality Sustainability Subsidiaries’ Performance Other important information Quarterly Results Q3FY23 3
Slide 14: Major highlights of Q3FY23
Major highlights of Q3FY23 Q3FY23 PAT at `5,853 crores, up 62% YOY driven by NII growth, NIM expansion, higher fees and moderation in operating expenses • NII grew 32% YOY and 11% QOQ, NIM at 4.26%, improved by 73 bps YOY and 30 bps QOQ • Fee income grew 23% YOY and 6% QOQ, granular fee constituted
Slide 15: Key metrics for Q3FY23
Key metrics for Q3FY23 Snapshot (As on 31st December 2022) Deposits # 9% YOY Advances 15% YOY 16%YOY1 Absolute (` Cr) QOQ | YOY Growth Q3FY23 Q2FY23 9MFY23 Q3FY23 Q3FY23 9MFY23 Net Interest Income 11,459 10,360 31,204 11% 32% 28% Profit & 33% 44% Loss Fee Income 4,101 3,862 11,540 6% 23% 25% Operati
Slide 16: Consistent improvement in shareholder return metrics
We have delivered consistent and robust improvement in the shareholder return metrics Trend in Consolidated ROA and ROE 2.5 0% 1.9% 2.0% 2.0 0% 1.3% 1.5% 1.5 0% 1.0 0% 0.7% Consolidated ROA 0.5 0% 0.2% 19.8% 18.9% 0.0 0% 15.6% 13.7% 8.2% Consolidated ROE 2.7% FY20 FY21 FY22 Q1FY23 Q2FY23 Q3FY23 Quar
Slide 17: Agenda
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment performance Asset Quality Sustainability Subsidiaries’ Performance Other important information Quarterly Results Q3FY23 7
Slide 18: Deposit and Loan growth performance
Deposit and Loan growth performance All figures in ₹ Billion Deposit mix (QAB)^ Segment loan mix YOY QOQ Gross of IBPC sold, loan growth at 16% YOY & 4% QOQ YOY QOQ 7,833 7,847 8,034 9% 2% 7,664 15% 4% 7,356 7,621 1,608 7,309 1,470 1,637 1,546 32% 4% 7,077 7,011 1,215 (20%) 6,649 NRTD 8% 9% 2,506 2,
Slide 19: CASA growth remains steady
CASA growth remains steady Average CASA growth (YoY) 25% 11% 10% 14% 10% 14% CAGR# 3,22,810 3,54,097 2,58,827 1,10,467 2,26,488 1,01,603 13% CAGR# 2,06,745 80,003 69,687 66,664 2,21,207 2,43,630 15% CAGR# 1,56,801 1,78,824 1,40,081 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 SA QAB CA QAB #Dec-18 to Dec-22 C
Slide 20: Core operating profit up 53% YOY, Net Profit up 62% YOY
Core operating profit up 53% YOY, Net Profit up 62% YOY All figures in ₹ Crores Operating revenue Operating expense Opex to Assets 2.24% annualized 2.15% 2.17% 2.24% 2.25% YOY QOQ 16,125 29% 13% 25% 32% Opex YOY 23% 14% 14,301 growth 8% 12,493 13,042 12,383 4,666 3,941 21% 18% 6,576 6,585 6,847 4,22
Slide 21: Net interest margin improved 73 bps YOY and 30 bps QOQ
Net interest margin improved 73 bps YOY and 30 bps QOQ Advances mix by rate type Cost of Funds MCLR Duration Split 32% (Dec-22) 3% ~ 68% of loans floating 4.30% 4.34% 2% 1M 2% 2% 4.10% 4.09% 22% 3M, 2% 3.97% 3.87% 3.89% 3.83% 3.77% 6M, 6% 12M, 12% 39% Repo linked MCLR linked Other EBLR* Base Rate li
Slide 22: NIM improvement led by structural drivers
NIM improvement led by structural drivers across the businesses 1 Improvement in balance sheet mix 2 Reducing share of low yielding RIDF bonds 3 Improvement in composition reflected through improvement in average CASA % Retail & SME as % of loan book 67.0% As a % to total assets 65.0% 5.1% 4.7% 64.0
Slide 23: Strong growth in fees; granularity built across segments
Strong growth in fees; granularity built across our business segments All figures in ₹ Crores Retail Banking fees Retail fee mix 30% YOY 8% QOQ 45% 43% 2,819 39% 2,463 2,612 2,375 2,161 22% 20% 19% 20% 20% 18% 19% ^ 17% 18% TPP Retail Cards & Payments Retail Assets excl cards & Retail Liabilities &
Slide 24: Cost growth moderated to 8% YoY
Cost growth moderated to 8% YoY, continue to invest in technology and growth related businesses YoY Incremental Opex in Q3FY23 was led by wage costs and 12% 40% 30% 18% volume linked expenses 154 90 Incremental YOY cost break up 63 208 (Rs 516 Crore) (YoY ↑ 8%) Investments in IT Infra and digital An
Slide 25: Agenda
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment performance Asset Quality Sustainability Subsidiaries’ Performance Other important information Quarterly Results Q3FY23 15
Slide 26: Strong capital position with adequate liquidity
Strong capital position with adequate liquidity Bank’s Capital Adequacy Ratio Liquidity Coverage Ratio (consolidated) 140% 19.51% 130% 19.12% 121% 121% 18.54% 120% 116% 115% 116% 117% 116% 17.53% 114% 3.72% 3.96% 15.84% 3.30% 107% 4.19% 110% 15.40% 15.55% 4.57% 15.24% 100% 13.34% 90% 11.27% 80% 70%
Slide 27: Getting self sufficient on capital to fund future growth
Getting self sufficient on capital to fund future growth Historically capital raise was supporting capital consumption… … profit accretion getting adequate to fund growth 1.95% 1.64% 15.24% 15.55% 5.87% 15.24% 3.38% 5.14% 11.13% (1) CET-1 Mar'17 Accretion Consumption Capital raise CET-1 Mar'22 CET-1
Slide 28: Agenda
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment performance Asset Quality Sustainability Subsidiaries’ Performance Other important information Quarterly Results Q3FY23 18
Slide 29: Retail Banking
Retail Banking ~28 Mn 4th `2.8 Tn SA customers Largest issuer of AUM in wealth Credit Cards management 17% 27% 56% YOY growth in YOY growth in Share of Retail advances Rural advances Advances~ 10% 45% 69% YOY Growth in SA CASA ratio Share in QAB deposits (MEB)* total fee^ ~ share in Bank’s total adv
Slide 30: Our CASA Deposit franchise continues to grow steadily
Our CASA Deposit franchise continues to grow steadily Continue to focus on improving the franchise quality further 10% 9% 1 “Right fit” customers to accelerate ‘Premiumization’ • ~140 bps YoY increase in share of Premium segment in Retail SA portfolio 2 Higher digital channel contribution to sourcin
Slide 31: Steady growth in SA deposits led by premiumisation strategy
Steady growth in SA deposits led by deepening and premiumisation strategy • Continue to maintain sharp focus on quality of NTB* acquisitions; Branch channel continued its focus on deepening ETB* relationships • Premiumisation strategy focuses on improving account quality of overall balances while in
Slide 32: Rs 4.3 trillion Retail loan book remains well diversified
Rs 4.3 trillion Retail loan book remains well diversified ~ 79% of our retail book is secured Retail book (in ₹ Billion) in Rs Crores Dec-22 QOQ YOY % Prop Home Loans 1,47,366 1% 9% 34% Disbursement mix in retail loans 25% LAP 44,491 1% 14% 10% YOY 21% 22% 18% Auto loans 46,834 3% 11% 11% 9% 17% QOQ
Slide 33: Small Business Banking segment is well diversified
Small Business Banking segment is well diversified and continues to grow strongly… Well diversified customer base SBB portfolio (Cr.) • 78% value contribution from Secured 60% YOY products (working capital, overdraft, term loans, 8% QOQ etc.) 38,319 18% 16% • 70 lakh+ – average ticket size of workin
Slide 34: Led by innovative product offerings and transformation initiatives
…led by our innovative product offerings and transformation initiatives Business Loans are now 100% Phygital / Digital 24 X 7 Business Loan - Digital One Axis approach • Platinum & Bharat Bank franchise driving branch growth • Synergies with Merchant Acquiring Preapproved Avail Verify details Instan
Slide 35: 'Bharat Banking' strategy has been scaling up well
‘Bharat Banking’ strategy has been scaling up well Drive higher business growth and increase market share in Rural and Semi Urban markets through asset led liability strategy • Lending opportunities in RuSu markets to complement the Bank’s overall PSL strategy meaningfully Focus on building a distin
Slide 36: Rural portfolio is well diversified
Rural portfolio is well diversified, offering holistic and integrated financial solutions by leveraging technology and partnerships Well diversified rural lending portfolio with … focused on capitalizing opportunities in … and leveraging technology and partnerships presence across 656 districts acro
Slide 37: Strong growth in Credit Card issuances
Strong growth in Credit Card issuances Increase in Cards in force (CIF) market share with increasing card issuances aided by KTB^ partnerships Strong traction in new card issuances, ~1mn cards issued for 4th consecutive quarter 34% YOY 33% 1.11 0.99 1.04 1.04 share of KTB sourcing to total card issu
Slide 38: Flipkart Axis Bank Credit Card acquisition journey
End to End Digital KTB acquisition journey with best in class early activation and spend metrics for Flipkart Axis Bank Credit Card Customer clicks on Customer fills up the Flipkart Axis Bank form and submits the Credit card banner application and can view details 3.22 mn CIF for Flipkart Axis Bank
Slide 39: Retail spends market share up 53 bps YOY
Retail spends market share up 53 bps YOY, with spends up 45% YOY All figures In ₹ Cr ‘GRAB DEALS’, Axis Bank's exclusive shopping platform has scaled up significantly ~89% YOY growth in transactions ~60% YOY increase in GMV Trend in Credit Card spends market share Trend in Debit Card spends Overall
Slide 40: 2nd largest Merchant Acquiring Bank
We are the 2nd largest Merchant Acquiring Bank led by ‘One Axis’ focus, improved product capabilities and partnerships Market share in POS terminals One Axis approach – Taking Bank to Merchant Curated solution offerings : Payment solutions, Deposits, Business loans, Rank 2nd 2nd 2nd 2nd 2nd Credit C
Slide 41: Empowering merchants through Integrated Ecosystem solutions
Empowering merchants through Integrated Ecosystem solutions All payment modes in one app, integrated with GST ready billing application Multiple VAS offering- CRM, Loyalty program, online store setup, store analytics etc. Sector specific solutions as per business needs including Catalogue & Inventor
Slide 42: Leading player in India's Wealth Management space
The Bank is a leading player in India’s Wealth Management space All figures In ₹ Cr Overall Burgundy AUM^ has grown steadily Burgundy Performance has been strong (CAGR for Mar’17 -Dec’22 period) 6% YOY 2,60,768 2,83,762 25% Assets under management Burgundy Private adjudged as “Best 2,13,085 Private
Slide 43: Very well distributed branch network
We have a very well distributed branch network Domestic branch network* Branch presence across categories Axis Virtual Centre 4,849 4,758 4,528 4,594 17% 30% ~7.5 mn 6 Customer Centers connect ^ 30% 1500+ 23% Virtual RMs Mar-20 Mar-21 Mar-22 Dec-22 * Includes extension counters Metro Urban Semi-Urba
Slide 44: Corporate & Commercial Banking
Corporate & Commercial Banking 24% 42% 9% YoY growth in YoY growth in YOY growth in CA CBG* advances Mid Corporate book (QAB) deposits 66% 89% 89% Share of short Share of corporate Incremental sanctions term loans to overall advances to clients to A-and above** corporate loans rated A-and above 8% 1
Slide 45: Recognized as the 2022 Greenwich Quality Leader
Recognized as the ‘2022 Greenwich Quality Leader’ for 2nd consecutive year 2022 Greenwich Excellence Awards for 2022 Greenwich Excellence Awards for Indian Market Penetration - Local Banks Indian Indian Large Corporate Banking Middle Market Banking Middle Market Banking • Ease of Doing Business • Fr
Slide 46: Relationship led franchise driving synergies across One Axis entities
Strong relationship led franchise driving synergies across One Axis entities… We have re-oriented the organisation structure in Corporate & Commercial Banking for delivering execution excellence • Segregated the responsibilities of coverage and product groups to ensure sharper focus • Corporate & Co
Slide 47: 89% of the book rated A- and above
…with 89% of the book rated A- and above All figures in ₹ Crores Incremental sanctions to corporates 89% of the corporate loan book is rated A- & above rated A- or better 17% 15% 12% 11% 66% of sanctions 66% of book as on were to those rated 31.12.2022 is rated AA- & above AA- & above 83% 85% 88% 89
Slide 48: Overseas Corporate loan book is 97% India linked
Overseas Corporate loan book is 97% India linked • The Bank’s International strategy is to focus on Indian corporates that have global operations • We have consolidated our overseas business through branches in Dubai, Singapore and Gift City, India Overseas corporate loan contribution ... the fundin
Slide 49: Strengthened proposition as a Transaction Bank
We have strengthened our proposition as a Transaction Bank Current Account Middle East International Business Awards Axis Bank’s DIFC branch wins for Customer Service 9% YoY growth in Current Account quarterly Excellence average Balances (Q3FY23) Foreign LC Market Share Digital Adoption Increase in
Slide 50: Well placed to benefit from a vibrant Corporate Bond market
We remain well placed to benefit from a vibrant Corporate Bond market All figures in ₹ Crores Placement & Syndication of Debt Issues Movement in corporate bonds 21% 22% Amount mobilized / arranged^ Market share and Rank* 20% 19% 20% 56,051 24% YOY 48,293 1st 1st 45,144 44,990 41,784 81,914 66,306 18
Slide 51: Progressing on Corporate Digital transformation
We are progressing well on the Corporate Digital transformation and are witnessing strong corporate interest 1 API PRODUCT ▪ Full width of transaction banking API products SUITE ▪ Single API integration for end-to-end Digital Banking experience ▪ Real time update and tracking directly from ERP ▪ Ind
Slide 52: Industry-wise Distribution (Top 10)
Industry-wise Distribution (Top 10) All figures in ` Crores Outstanding1 as on 31st Dec’22 Total Non-fund Rank Advances Investments based Sectors Value (in % terms) 1. Financial Companies2 55,105 34,078 29,563 1,18,746 12.16% 2. Engineering & Electronics 15,254 1,750 33,386 50,390 5.16% 3. Infrastru
Slide 53: Business Performance: Commercial Banking
Business Performance Commercial Banking
Slide 54: Commercial Banking benefitting from technology led transformation
Commercial Banking business benefitting from technology led transformation • One of the most profitable segments of the Bank with high PSL coverage • Data driven credit decisions, minimal documentation, simplified products and digitized operations aiding higher business growth CBG Advances New to Ba
Slide 55: SME lending book is well diversified
SME lending book is well diversified Book by Loan size Well diversified Geographical mix Well diversified Sectoral mix 15% 24% 16% 15% 9% 13% 40% 10% 3% 8% 18% 3% 3% 25% 12% 4% 7% 4% 22% 2% 11% 4% 5% 4% 4% 4% 16% Trade Retail and Wholesale Food and Beverages West 1 West 2 Textile Engineering Others
Slide 56: Digital Banking
Digital Banking 94% 79% 73% 70% 67% 54% 4.8 @ Digital Credit cards New MF SIP New SA Individual RTDs PL disbursed Mobile App D2C products transactions^^ issued** (Q3FY23) volume (Q3FY23) acquisition* volume (Q3FY23) (end-to-end digital) ratings 250+ 17% 15% ~11 Mn 103500+ 2750+ 300+ Services on Mark
Slide 57: Digital strategy aligned with our GPS strategy
Our digital strategy is aligned with our GPS strategy A B C Reimagine Customer Transform Build Future-ready Proposition the Core Capabilities Digital-first products Ops excellence & institutionalization of Data architecture 3.0; moving embedding design thinking data & tech enabled operating rhythm b
Slide 58: New products driven by our OPEN philosophy
We continue to introduce and scale new products driven by our OPEN philosophy Our product portfolio Recent launches in last few quarters Buy Now Paylater Merchant Cash Advance Cards lifecycle Auto loan O/W Remittance GrabDeals Insurance 2.0 CA Sole Propreitor 0-based redesign; Ecosystems capable; Nu
Slide 59: Investing heavily in building capabilities
We are investing heavily in building capabilities Building the right talent Enabling the team through technology • 1600+ people dedicated to technology agenda • Fully cloud ready: new customer facing applications as cloud native • ~370 member full service inhouse team: • CI-CD pipeline in place; usi
Slide 60: Leadership in technology with several industry firsts
Leadership in technology with several industry firsts 1st 1st Cloud 1st 790 Indian Bank to be Bank to hollow the Only among peers to Best-in-class member of core for elite have 3 Enterprise BitSight* rating in BFSI, merchants on UPI grade landing zones better than 90% of the Banking Industry Finance
Slide 61: Best-in-class personalization and alternate data capability
Built best-in-class personalization capability and are leveraging alternate data to scale up our customer centric franchise Building data stack 3.0 for next level of analytics and have created service data lake for enhanced customer experience Data Stack 3.0 - Cloud Personalization – 10k+ nudge vari
Slide 62: World's highest rated Mobile Banking App
World’s highest rated Mobile Banking App, doubling up as our largest branch Bank on-the-go with Axis Mobile App Store Rating Hyper personalized | Intuitive | Seamless 4.8 Highest rating of 4.8 on Google Play Store with 16 lakh+ reviews across 4.6 59 global banks, 8 global neo banks and 50 Indian fin
Slide 63: UPI has scaled up tremendously
UPI has scaled up tremendously to become a key channel for customer transactions We have developed best-in-class UPI stack that enables us to offer cutting edge customized solutions across SDK, Intent, Collect and Pay offerings apart from new use cases like UPI AutoPay Dedicated IT cloud infrastruct
Slide 64: Partnerships as a channel to expand customer base
Partnerships as a channel has significant potential to expand our customer base We have 85+ Partnerships across Platforms and Ecosystems Product Specific (API banking) Transaction banking (White-labelled banking) • Channel to acquire & service customers, complete customer ownership with Bank • Banki
Slide 65: Agenda
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment performance Asset Quality Sustainability Subsidiaries’ Performance Other important information Quarterly Results Q3FY23 55
Slide 66: Consistently improving asset quality across segments
Consistently improving asset quality visible across all segments GNPA at 2.38% & NNPA at 0.47% Segmental composition improving sequentially and YOY Retail CBG WBG Total 3.17% 2.82% 2.76% 2.50% 2.38% 67%^ 72%^ 90%^ 81%^ 0.91% 0.73% 3.73% 0.64% 0.51% 0.47% 1.59% 2.38% 1.33% 0.53% 0.38% 0.40% 0.47% Q3F
Slide 67: Limited restructuring, largely secured and well provided
Limited restructuring, largely secured and well provided; Declining BB & Below Book All figures in ₹ Crores Bank’s Net NPA* and Fund based BB and Below* portfolio Update on restructured book PCR (excluding technical write offs) up 89 bps QoQ at 81%; Outstanding Covid (1+2) restructuring as on 31.12.
Slide 68: Legacy asset quality issues adequately addressed
Legacy asset quality issues adequately addressed Overall Credit Costs: FY10 to 9MFY23 3.57% 3.53% Trend in BB corporate book Credit Cost 7.29% (Fund based as % of GCA) 2.82% Net Credit Cost 2.78% 2.15% 1.32% 1.91% 1.87% 0.53% 1.89% 1.35% 1.56% 1.68% Jun'16 Mar'19 Dec'22 Long term (FY03 to FY22) 1.11
Slide 69: Detailed walk of NPAs over recent quarters
Detailed walk of NPAs over recent quarters All figures in ₹ Crores Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Gross NPAs - Opening balance A 24,149 23,301 21,822 21,037 19,894 Fresh slippages B 4,147 3,981 3,684 3,383 3,807 Upgradations & Recoveries C 3,288 3,763 2,957 2,826 2,088 Write offs D 1,707 1,697 1
Slide 70: Agenda
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment performance Asset Quality Sustainability Subsidiaries’ Performance Other important information Quarterly Results Q3FY23 60
Slide 71: Our ESG Progress
Our ESG Progress Our Purpose Statement: Banking that leads to a more inclusive and equitable economy, thriving community and a healthier planet Steady Performance on Global ESG Benchmarks Environmental Social Governance Above 80th percentile among global banks on DJSI in 2022 ~9,745 tCO2e 1.03 Mn 1s
Slide 72: Committed to Positive Climate Action and SDGs
Committed to Positive Climate Action and Achieving the Sustainable Development Goals • Axis Bank is the first Indian Bank to constitute a standalone ESG Committee of the Board • In September 2021, the Bank announced commitments aimed at supporting India’s low-carbon and equitable economic transition
Slide 73: Striving for Operational Excellence
Striving for Operational Excellence Committed to reducing our operational carbon footprint The Bank’s 3 largest offices, in Mumbai and Bangalore are running on 100% renewable power 7.05 MW functional captive solar power capacity at close to 250 locations*, helping avoid approximately 3,066 tCO2e ann
Slide 74: Agenda
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment performance Asset Quality Sustainability Subsidiaries’ Performance Other important information Quarterly Results Q3FY23 64
Slide 75: Significant value creation in key group entities
Significant value creation happening in our key group entities Detailed One Axis presentation Link Invst Banking Consumer Retail Fintech Asset Management Trustee TReDS platform Insurance & Inst Equities focused NBFC Brokerage platform One of the fastest Leadership position in AAA rated NBFC with 3rd
Slide 76: Axis Finance: PAT up 35% YOY
Axis Finance : PAT up 35% YOY, Retail book up 2 times YOY All figures in ₹ Crores Growth in AUM 41% CAGR** Major Highlights 38% YOY • 2x YOY growth in Retail book, retail mix up 1500 bps YOY to 44% as of Dec’22 20,257 17,059 • 8% YOY growth in Wholesale loan book 14,705 8,979 5,694 (44%) 7,816 11,08
Slide 77: Axis AMC: PAT up 16% YOY
Axis AMC : PAT up 16% YOY All figures in ₹ Crores Overall QAAUM Equity QAAUM 31% CAGR* 37% CAGR* 2,59,818 2,53,450 2,48,220 1,43,546 1,45,854 1,44,772 1,96,549 98,822 1,38,402 89,720 61,968 44,486 Mar-19 Mar-20 Mar-21 Mar-22 Dec-21 Dec-22 Mar-19 Mar-20 Mar-21 Mar-22 Dec-21 Dec-22 * CAGR for period M
Slide 78: Axis Capital: Volatile markets weighed on deal activity
Axis Capital : Volatile markets weighed on deal activity 9MFY23 Ranking* (includes IPO, FPO, QIP, REIT, OFS & Rights) Major Highlights Rank Banker No of Deals* • 33 IB deals closed in 9MFY23 that include 11 IPOs, 2 QIPs, 3 SF 1 Axis Capital 18 Syndication, 5 M&A and 1 Private Equity 2 Peer 1 15 • ~1
Slide 79: Axis Securities: Strong growth in new customer additions
Axis Securities : Strong growth in new customer additions Total customer base (in mn) 20% YOY 3rd largest bank led retail brokerage in terms of customer base 24% CAGR* Major Highlights 4.73 4.17 3.95 • 71% YOY growth in new clients added during 9MFY23 3.63 • 61% of the volumes in 9MFY23 was from Mob
Slide 80: A.TREDS: Invoicemart setting a new benchmark
A.TREDS: Invoicemart setting a new benchmark in TReDS A.TREDS is one of the three entities allowed by RBI to set up the Trade Receivables Discounting System (TReDS), an electronic platform for facilitating cash flows for MSMEs The TReDS platform connects MSME sellers and their corporate buyers to mu
Slide 81: Freecharge: Lending products gain traction
Freecharge: “Lending” products continue to gain strong traction Freecharge continues to evolve from a recharge company to a payments led financial services company with a host of payment and lending products and solutions for both consumers and merchants DTH, UTILITIES MOBILE LOANS CARDS CA/SA/FD RE
Slide 82: Agenda
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment performance Asset Quality Sustainability Subsidiaries’ Performance Other important information Quarterly Results Q3FY23 72
Slide 83: Major awards won by the Bank and its subsidiaries
Major awards won by the Bank and its subsidiaries Won “Best Private Bank for Client Won “Retail Banker’s International Won “Finnoviti Award for Project Best CRM System ‘Financial Inclusion Initiative of Acquisition, Asia”, 5th Annual Asia Trailblazer”, for use of AI & ML Maximus” Implementation the
Slide 84: Shareholding Pattern (as on December 31, 2022)
Shareholding Pattern (as on December 31, 2022) SUUTI Others 0.02% 10.56% Life Insurance Corporation 7.96% GDR's 2.58% Foreign Institutional Investors 48.12% Indian Institutions 30.76% ▪ Share Capital `615 crores ▪ Shareholders’ Funds `130,645 crores ▪ Book Value Per Share `425 ▪ Diluted EPS (Q2 FY23
Slide 85: Financial Performance
Financial Performance Financial Performance (` crores) Q3FY23 Q3FY22 % Growth 9MFY23 9MFY22 % Growth Interest Income A 22,226 17,261 29% 61,194 49,601 23% Other Income B = C+D+E 4,666 3,840 21% 11,606 10,997 6% - Fee Income C 4,102 3,344 23% 11,540 9,242 25% - Trading Income D 428 367 17% (326) 1,39
Slide 86: Financial Performance ($ mn)
Financial Performance Financial Performance ($ mn) Q3FY23 Q3FY22 % Growth 9MFY23 9MFY22 % Growth Interest Income A 2,687 2,087 29% 7,397 5,996 23% Other Income B = C+D+E 564 464 21% 1,403 1,329 6% - Fee Income C 496 404 23% 1,395 1,117 25% - Trading Income D 52 44 17% (39) 169 - - Miscellaneous Inco
Slide 87: Balance Sheet
Balance Sheet Balance Sheet As on 31st Dec’22 As on 31st Dec’21 As on 31st Dec’22 As on 31st Dec’21 % Growth CAPITAL AND LIABILITIES In ` Crores In ` Crores in $ Mn in $ Mn Capital 615 614 74 74 0.2% Reserves & Surplus 1,30,030 1,10,132 15,719 13,313 18% ESOP Outstanding 364 118 44 14 207% Deposits
Slide 88: Safe Harbor
Safe Harbor Except for the historical information contained herein, statements in this release which contain words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek to”, “futu
Slide 89: Thank You
Thank You Quarterly Results Q3FY23 79