Q1 2025 Federal Bank Ltd Earnings Call Transcript
Key Points
- The Federal Bank Ltd (BOM:500469) achieved its highest-ever quarterly net profit of INR1,010 crore and operating profit of INR1,501 crore.
- The bank recorded its highest-ever Net Interest Income (NII) and other income, showcasing strong financial performance.
- Credit and deposit growth were robust, with nearly all business segments showing sequential growth of 4% to 5%.
- Significant recovery in deposit growth was driven by recent expansions and product launches.
- Credit quality remained stable, with a low credit cost of 27 basis points, indicating strong risk management.
- Despite the strong performance, the cost-income ratio remains elevated at around 53%, with a target to reduce it to 50% over the next four to five quarters.
- Yield on advances decreased by 5 basis points sequentially, raising concerns about the sustainability of interest income growth.
- The bank faces challenges in maintaining high-margin business growth without taking on additional risk.
- There are ongoing regulatory challenges, particularly with the RBI embargo on co-branded cards, which could impact future growth strategies.
- Non-staff operating expenses grew by 30% YoY, driven by investments in distribution and technology, which could pressure future profitability.
Ladies and gentlemen, good day, and welcome to the Q1 FY25 earnings conference call of the Federal Bank Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Souvik Roy, Head of Investor Relations, Federal Bank Limited. Thank you and over to you, sir.
Thank you so much. And ladies and gentlemen, thank you for joining us today. Apologies for the slight delay. We are facing some tech glitches. Pretty sure you've seen our deck. We have delivered quite well this quarter. It's been a quarter of several all-time highs, reflecting our strong operational excellence.
We have achieved the highest ever in our quarterly net profit of INR1,010 crore and the highest-ever operating profit of 1,501 crore. Additionally, we have recorded our highest ever NII and other income as well. This further underscores our financial strength as well as our strategic execution.
Our Q1 performance sets a robust platform for the financial
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
