Axis Bank Q4 Results FY2023 Preview: What to Expect?

On April 27, Axis Bank will announce its March quarter financial results (Q4FY23). 

In Q3FY23, Axis Bank reported Net Interest Income (NII) at Rs.11,459 crores. Net interest margin (NIM) for Q3FY23 stood at 4.26%. Net profit at Rs.5,853 crores in Q3FY23. 

Axis Bank announced in March 2023 that it had successfully acquired Citibank's Indian retail business for a total cash consideration of Rs 11,603 crore. Last year, Axis Bank and Citibank NA (acting through its branch in India) agreed that the bank would buy the NBFC Consumer Business from Citicorp Finance (India) Limited (CFIL) and Citibank's India Consumer Business from Citibank NA.

Without unusual expenses, Axis Bank is anticipated to report a 39.7% YoY increase in net profit. Due to the integration with Citibank, the bank is anticipated to report a loss of Rs 5,487 crore in the quarter. If the unusual costs are not included, the bank's net profit is projected to increase by 39% to Rs 5,784 crore.

Market Expectations from Axis Bank’s Quarterly Results:

According to Prabhudas Lilladher, Axis Bank will report a net profit of Rs 5,902.9 crore, up 0.9 percent QoQ and up 43.4 percent YoY. Net Interest Income (NII) is anticipated to increase to Rs 12,415.8 crore, up 8.3% QoQ and 40.8% YoY. Pre Provision Operating Profit (PPOP) is forecast to increase to Rs. 9,452.6 crores, or 46.2% YoY and 1.9% QoQ.

Axis Bank is anticipated by Kotak Institutional Equities to report a net profit of Rs 6,492.2 crore, up 56 percent on an annual basis, up by 9.7% on a quarterly basis). To reach Rs 12,015.8 crore, Net Interest Income (NII) is anticipated to rise by 39.7% YoY and 7.5% QoQ. The expected growth rate for Pre-Provision Operating Profit (PPOP) is 51.2 percent YoY and up by 5.4% QoQ. 

Axis Bank is anticipated to report a net profit of Rs 4,959.2 crore, up 20.4 percent year over year but down 15.3 percent quarter over quarter, according to ICICIdirect. To reach Rs 11,742.8 crore, Net Interest Income (NII) is anticipated to rise 33.1 percent YoY (up 2.5 percent QoQ). Pre Provision Operating Profit (PPOP) is anticipated to increase to Rs 8,667 crore, up 34% YoY (down 6.6% QoQ).

Axis Bank is anticipated to report a loss of Rs 4,800 crore for the quarter ended March 2023 (Q4FY23) as a result of the Citi merger, according to Zee business analysts. The loss may range from Rs 2,900 billion to Rs 5,900 billion. According to Zee Business Research, the bank's business will probably expand while the net interest margin will shrink. Additionally, it is anticipated that credit costs and slippages will decrease. Additionally, the analysts do not anticipate a material increase in Treasury income. 

Since gross non-performing assets (GNPA) are currently 2.2% versus 2.38 % YoY, asset quality is likely to improve.  Also anticipated is a decline in Net NPA.