Yes Bank Q4FY19: Key takeaways — From asset quality, retail loans to digital banking

Yes Bank Q4FY19 results are out and surprisingly the lender witnessed a net loss of Rs 1,506.64 crore compared to net profit of Rs 1,179.44 crore in Q4FY18 and Rs 1,001.85 crore in Q3FY19. The Yes Bank earnings were hampered, as it set aside over 9 times higher provisions compared to Q4FY18. Yes Bank's gross NPA came in three times higher in Q4FY19 than previous year's same quarter. Meanwhile, net interest income (NII) jumped 16.32 per cent to Rs 2,505.93 crore in Q4FY19 as against Rs 2,154.24 crore in Q4FY18. NII was down by 6.01 per cent from Rs 2,666.41 crore in Q3FY19. NIMs at 3.1 per cent and 3.2 per cent for Q4FY19 and FY19 respectively. At BSE, Yes Bank share price finished at Rs 237.40 per stocks, down by 0.13 per cent in the intraday trade on Friday.

While various stock market experts are out with their views on the impact of the recently announced quarterly results of the YEs Bank. Some of the tecchnical experts are busy finding out the range for the company and its scrip. However, it's important to count the key takeaways from the fourth quarterly results being announced by the Yes Bank.

So, here we have the list of key highlights or take aways from the Yes Bank Q4FY19 results:

1] Retail growth driver

Advances grew by 18.7 per cent y-o-y to Rs 2,41,500 Crores. Retail Advances 62.3 per cent y-o-y and 8.6 per cent sequentially to 16.7 per cent of Advances from 12.2 per cent last year.

2] CASA

Yes Bank's total assets grew 21.9 per cent y-o-y and 1.8 per cent sequentially to Rs 3,80,826 Crores. Retail and Corporate Total Deposits (TDs) grew by 40.2 per cent and 16.1 per cent y-o-y respectively and 8.3 per cent and 4.2 per cent sequentially. CASA ratio at 33.1 per cent; CASA + Retail FDs at 58.8 per cent of TDs. 

Total Capital Adequacy is at 16.5 per cent with Total Capital Funds at Rs 50,459 Crores. Tier I Ratio and CET I ratio at 11.3% and 8.4% respectively.

3] Asset quality

Gross Slippages of Rs 3,481 Crores in Q4FY19 of which Rs 552 Crores was on account of an Airline company exposure that was performing as on March 31, 2019 and Rs 529 Crores on account of Stressed Infrastructure Conglomerate. 

Sale of one NPA account in Q4FY19 to an ARC on all cash basis (Rs 195 Crores exposure against which cash received Rs 117 Crores and nil SRs.

The Yes Bank has an aggregate outstanding funded exposure of Rs 2,528 Crores as of 31 March 2019 of which Rs 2,442 Crores has been classified as NPA. Rs 86 Crore continues to be classified as ‘Standard’ in line with the NCLAT order dated February 25, 2019. The Bank has a provision of 15 per cent against this Standard. 

4] Digital banking

Highest market share in UPI Merchant Payments volumes as per NPCI. Processed around 64 Crore transactions amounting to Rs 97,000 Crores in Q4FY19. Ranked 1st as Remitter Bank in IMPS, by NPCI in the peer group for FY19. Bank has witnessed more than 80 per cent y-o-y growth in Volumes in FY19. 

YES Mobile: Transaction value & volumes both grew by around 2.3X YoY.

Debit Cards: Total cards in force at 2.44 Mn. In Q4FY19 total transactions grew 50 per ceent YoY to cross 95 lakhs.

and total spends grew 51 per cent YoY to reach Rs 1,400 Crores for the quarter.

Yes ROBOT - Personal Banking Assistant: Successfully integrated M-commerce platform to enable. Ticket booking, food ordering, cab booking etc. through the channel. The chatbot continues to gain popularity with the bot witnessing over 63 Mn interactions in FY19.

5] Dividend

Board has recommended a Dividend of Rs  2.0 per share (100 per cent) for FY19 subject to shareholder approval. Also the board has recommended renewal of an aggregate limit of $1Bn for raising equity capital subject to shareholders approval (with a post issuance dilution cap of 10 per cent). 

6] Profit and losses

FY19 PAT at Rs 1,720 Crores; while NII surged by 26.8 per cent y-o-y to Rs 9,809 Crores in FY19. Pre-Provisioning Operating Profit grew 5 per cent y-o-y at Rs 8,135 Crores in FY19. RoA at 0.9 per cent and RoE at 11.4 per cent in FY19, prior to taking into consideration Contingent Provisioning.