Federal Bank Q3 Results Review - Outperformance Continues: Prabhudas Lilladher

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. .Prabhudas Lilladher Report.Federal Bank Ltd. again surpassed its previous quarter best, with core earnings at Rs 7.75 billion, beating our estimate by ~16% led by net interest margin beat which came in at 3.89% (our estimate: 3.66%) as funding cost was lower at 4.9% (our estimate: 5.1%). Bank further raised steady state NIM guidance from 3.30% to 3.35-3.40%. We too increase NIM for FY23E by 12 basis points and FY24/25E by ~6 bps each as-high yielding book, which touched Rs 62 billion, could double in two plus years andupward deposit repricing could be slower to peers (~60% of deposits as at FY22 have a maturity more than three years). Fee income in nine months-FY23 has risen by 43% to Rs 12.9 billion and bank expects current run-rate to continue. Hence, we increase FY23 profit after tax by 6% and FY24/25E PAT by ~2% each. With consistent beat in core profitability, re-rating should continue for Federal Bank. .Click on the attachment to read the full report:.More Research Reports On Federal Bank's Q3 FY23 Results Review.Closing In On True Franchise Potential: HDFC SecuritiesStrong Show; Positives Largely Priced In: Dolat CapitalFlagged As A Top Pick In 2021, Marches On: Yes SecuritiesImproving Visibility On RoA Sustaining In FY23/24E: ICICI SecuritiesRoA Progression On A Fast Track: Motilal OswalYet Another Strong Quarter Of All-Round Performance: ICICI Direct.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.

Federal Bank Q3 Results Review - Outperformance Continues: Prabhudas Lilladher

Federal Bank again surpassed its previous quarter best, with core earnings at Rs 7.75 billion, beating our estimate by ~16%.

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