Banking, Financial Services Q4 Results Preview - Earnings Momentum Likely To Continue For Banks: Nirmal Bang

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Nirmal Bang Report.We expect banks to report strong earnings growth on a sequential basis for Q4 FY23, driven by credit growth, margin expansion on YoY basis and muted credit costs. We expect margins for select banks to contract on a sequential basis due to increase in cost of deposits. We expect our set of coverage banks to report net interest income growth of ~27% YoY while operating profit growth is likely to be ~9% YoY (dragged down largely because of one-time cost of CITI acquisition by Axis Bank Ltd.). We are building in 11.2% YoY growth in net profit, led by 16.5% YoY growth in loans and muted credit costs. Net interest margins are expected to improve on YoY basis while the same is likely to witness some moderation on a sequential basis. Moreover, deposit mobilisation and increasing cost of funds would be key monitorables. Credit growth, as indicated by Reserve Bank of India data, suggests that demand has sustained, driven by retail and services segments. In the retail segment, momentum in unsecured high-yielding loans continues while secured mortgage and vehicle loans remain key growth drivers. However, the industrial segment has witnessed some moderation. Asset quality outlook continues to improve as we don’t anticipate any major surprises in either retail or corporate segment. Large private banks are expected to report healthy growth (16.8% YoY loan growth) while mid-cap/small-cap private banks are likely to maintain the growth momentum at ~18% YoY. Public sector banks are expected to report 16.1% YoY growth in loans. For non-banking financial companies, we expect credit growth at 13.2% YoY (5% QoQ) while profit after tax growth is expected at 8.3% YoY..Click on the attachment to read the full report:.BFSI Q4 Results Preview - Strong Earnings Momentum Likely: Dolat Capital.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Banking, Financial Services Q4 Results Preview - Earnings Momentum Likely To Continue For Banks: Nirmal Bang

Midcap banks momentum; housing finance companies’ momentum remains strong.

NDTV Profit

NDTV Profit

Follow Us

DISCOVER US FASTER

DOWNLOAD THE APP