YES BANK 2023-24 Annual Report Analysis

Mon, 29 Jul

YES BANK has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the bank during the year 2023-24.

YES BANK Income Statement Analysis

• Interest income during the year rose 21.6% on a year-on-year (YoY) basis.
• Interest expenses were up by 31.9% YoY during the same period.
• Operating expenses increased by 16.6% YoY during the year.
• The bank's net interest income (NII) increased by 2.2% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a decline and stood at 2.5% in FY24 as against 2.8% in FY23.
• Other income increased by 37.9% YoY during the year.
• Net profit for the year increased by 74.7% YoY.
• Net profit margins during the year increased to 4.7% in FY24 from 3.2% in FY23.

YES BANK Income Statement – 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Interest Income	Rs m	227,022	276,059	21.6%
Other Income	Rs m	38,830	53,550	37.9%
Interest Expense	Rs m	147,998	195,273	31.9%
Net Interest Income	Rs m	79,024	80,786	2.2%
Operating Expense	Rs m	85,839	100,094	16.6%
Pre-provision Operating Profit	Rs m	32,015	34,242	7.0%
Provisions & Contingencies	Rs m	24,657	21,390	-13.2%
Profit before tax	Rs m	9,813	15,377	56.7%
Tax	Rs m	2,455	2,525	2.8%
Profit after tax	Rs m	7,358	12,852	74.7%
Minority Interest	Rs m	0	0	0.0%
Net Interest Margin	%	2.8	2.5
Net profit margin	%	3.2	4.7

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YES BANK Balance Sheet Analysis

• The bank's deposits during FY24 stood at Rs 2,662.3 bn as compared to Rs 2,173.8 bn in FY23, thereby witnessing an increase of 22.5%.
• Advances for the year stood at Rs 2,278.0 bn as compared to Rs 2,032.4 bn during FY23, a rise of 12.1%.
• Cost of deposits for YES BANK rose 9.6% and stood at 5.1%, while yield on advances rose to 9.3%.
• The lender's investments rose to Rs 900.0 bn during the year from Rs 767.5 bn in FY23.
• Borrowing stood at Rs 805.1 bn, a growth of 3.5% as compared to previous year.
• Overall, the total assets and liabilities for FY24 stood at Rs 4,063.6 bn as against Rs 3,552.0 bn during FY23, thereby witnessing a rise of 14.4%.

YES BANK Balance Sheet – as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	397,396	411,481	3.5%
Advances	Rs m	2,032,365	2,277,990	12.1%
Deposits	Rs m	2,173,822	2,662,295	22.5%
Yield on advances	%	8.8	9.3
Cost of Deposits	%	4.6	5.1
Investments	Rs m	767,493	899,970	17.3%
Borrowings	Rs m	777,540	805,076	3.5%
Total Assets	Rs m	3,552,041	4,063,615	14.4%

Current Valuations for YES BANK

• The trailing twelve-month earnings per share (EPS) of the bank stands at Rs 0.4, an improvement from the EPS of Rs 0.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 25.3, stands at 52.5 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 1.9 times, while the price to income ratio stands at 2.4 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Income per share (Unadj.)	Rs	7.9	9.6
Earnings per share (Unadj.)	Rs	0.3	0.4
Diluted earnings per share	Rs	0.2	0.4
Avg P/E ratio	Rs	72.3	52.5
Avg P/ABV ratio	Rs	1.3	1.9
Avg Market Cap	Rs	531,676	674,751
Dividends per share (Unadj.)	Rs	0.00	0.00

Ratio Analysis for YES BANK

• Efficiency Ratios

  Credit/Deposit Ratio: The bank's credit/deposit ratio deteriorated and stood at 85.6x during FY24, from 93.5x during FY23. The credit/deposit ratio tells us how much money a bank has raised in the form of deposits and has deployed as loans.

  Debt to Equity Ratio: The bank's debt to equity ratio increased and stood at 8.43x during FY24, from 7.43x during FY23. The debt to equity ratio of a bank tells us how much debt a bank uses relative to its equity.

• Liquidity Ratios

  Capital Adequacy Ratio (CAR): YES BANK's capital adequacy ratio (CAR) was at 15.4% as on 31 March 2024 as compared to 17.9% a year ago. This ratio helps measure the financial strength of the bank or any finance company to meet their obligations using their assets and capital.

  A bank that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor's money.

  Provision Coverage Ratio (PCR): Apart from CAR, you also need to take a look at the bank's PCR and LCR ratios. Provisioning coverage ratio (PCR) is the percentage of funds that a bank sets aside for covering losses due to bad debts.

  So a high PCR ratio means asset quality issues are under control and the bank is not vulnerable.

  Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that banks hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.

• Profitability Ratios

  Return on Equity (ROE): The return on equity (ROE) ratio for the bank improved and stood at 3.1% during FY24, from 1.9% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

  Return on Assets (ROA): The return on asset (ROA) ratio of the bank improved and stood at 0.32% during FY24, from 0.21% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

  Return on Capital Employed (ROCE): The ROCE for the bank improved and stood at 6.22% during FY24, from 5.06% during FY23. The ROCE measures the ability of a bank to generate profits from its total capital (shareholder capital plus debt capital) employed in the bank.

• NPA Ratios

  Gross NPA Ratio: The gross NPA ratio is the ratio of a bank's gross NPAs to gross advances. YES BANK's gross NPA ratio stood at 1.7% as of 31 March 2024 compared to 2.2% in the same period a year ago.

  A high gross NPA ratio is a bad thing as it indicates how much of a bank's loans are in danger of not being repaid.

  Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the bank has made provisions.

  The net NPA ratio of YES BANK was 0.6% in financial year 2024. This compared with 0.8% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Credit/Deposit Ratio	x	93.5	85.6
Debt to Equity Ratio	x	7.4	8.4
Loans / Deposits	x	0.4	0.3
Capital Adequacy Ratio	%	17.9	15.4
Return on Equity	%	1.9	3.1
Return on Assets	%	0.2	0.3
Return on Capital Employed	%	5.1	6.2
% of Gross NPAs	%	2.2	1.7
% of Net NPAs	%	0.8	0.6
Yield on Advances	x	8.8	9.3
Yield on Investments	x	4.7	5.8

To see how YES BANK has performed over the last 5 years, please visit here.

YES BANK Share Price Performance

Over the last one year, YES BANK share price has moved up from Rs 16.9 to Rs 25.3, registering a gain of Rs 8.4 or around 49.4%.

Meanwhile, the S&P BSE BANKEX is trading at 59,280.1 (up 1.1%). Over the last one year it has moved up from 51,319.7 to 59,280.1, registering a gain of 7,960.4 points (up 15.5%).

Overall, the S&P BSE SENSEX is up 23.1% over the year.

(To know more, you can check out historical annual results for YES BANK here and quarterly results for YES BANK here)