Yes Bank Q4 Results Preview: Steady NII Growth, Improved Asset Quality Expected to Drive Profit Increase

Yes Bank to Announce Q4 Results on Saturday, Analysts Expect Steady Growth

Yes Bank, a prominent private sector lender, is set to announce its financial performance for the March quarter and the fiscal year ended 31 March on Saturday, 18 April. Analysts are broadly expecting the company to report steady net interest income (NII) growth of around 9-12% year-over-year (YoY), supported by modest loan growth and stable margins.

The bank's profitability is also expected to improve on a yearly basis, with profit after tax (PAT) rising 4-44% YoY. However, sequential performance may remain mixed due to margin pressures and elevated costs.

Q4 Results Preview

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ICICI Securities has released estimates for Yes Bank's Q4 results, predicting a net interest income of ₹2,558.4 crore, a 3.8% quarter-on-quarter (QoQ) and 12.4% YoY increase. The brokerage also expects pre-provision operating profit to rise 16.7% QoQ and 9.5% YoY to ₹1,439.7 crore.

On the bottom line, ICICI Securities anticipates net profit to reach ₹1,065 crore, marking a 12% QoQ and a sharp 44.4% YoY increase. The brokerage's estimates suggest that the bank's net profit could outperform the aggregate net profit growth of private banks, which it expects to rise 2.4% QoQ and 5.7% YoY, excluding IndusInd Bank.

Asset Quality and Loan Growth

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ICICI Securities estimates Yes Bank's net interest margin (NIM) at 2.7%, around 15 basis points higher than the same period last year. On the lending side, the brokerage expects the bank's loan book to rise to ₹2,66,200 crore in Q4, reflecting a 3.4% QoQ and 8.1% YoY increase.

The brokerage also expects gross non-performing assets (NPAs) to decline by 23 basis points YoY to 1.4%, while net NPAs are estimated at 0.3%, down 5 basis points YoY.

Share Price History

Yes Bank's shares have staged a strong comeback in April, gaining 17% so far and recouping all of their March losses of 16.75%. Although the stock has regained strength, it needs to sustain this momentum to revisit its February 2024 peak of ₹32.85 apiece. At current levels, it is still 39.11% below that mark.