Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Yes Bank (YESB.BO)
Buy Equity Research
Above expectations on higher fee income; Reiterate Buy
Growth moderating, margin improvements
Yes Bank (YESB) reported 2QFY12 net profit of Rs2.4bn (+9% qoq, +33% yoy),
11% above GSe and 8% ahead of Bloomberg consensus. Key highlights: (1)
NII came in at Rs3.86bn (+2% qoq, +23% yoy), largely in line with GSe as
advances growth came in lower at 13% but margins (NIM:2.9%) improved by
10 bp qoq. We believe YES will likely benefit from falling interest rates next
year but are disappointed by the slow progress on CASA (up 2% qoq). (2) Non
interest income was Rs2.1bn, (+63% yoy) on higher financial markets and
advisory income. (3) Costs were in line with GSe (+31% yoy) on branch
expansion (50 branches added in 2QFY12) (4) YESB booked provision of Rs379
mn (0.4% of loans) that included 100 mn each of general provisioning and
adverse credit labeling, 92% ahead of GSe (5) Gross NPLs grew 23% qoq (+2%
yoy). Restructured assets jumped to Rs1.8 bn, as YESB added Rs900 mn of
MFI accounts this quarter, and these now stand at 0.5% of loans.
Remains a GARP play; Reiterate Buy
We have raised our FY12E EPS estimates to factor in 2Q results but we lower
FY13E-FY14E EPS by 2%-7% to factor in lower growth in advances. We have
raised our 12m CAMELOT-based TP to Rs360 (from Rs350) per share as we
roll forward our target BVPS to Sep-2012. We reiterate our Buy rating as we
believe YESB will deliver around 21% CAGR between FY12E-FY14E, while the
stock trades at a reasonable valuation of 9.8x FY12E EPS at a 38% discount to
private bank peers. Key risks: Higher exposure to infrastructure, faster growth
in past and rising rates lead to increase in higher NPLs, further capital raisings
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Yes Bank (YESB.BO)
Buy Equity Research
Above expectations on higher fee income; Reiterate Buy
Growth moderating, margin improvements
Yes Bank (YESB) reported 2QFY12 net profit of Rs2.4bn (+9% qoq, +33% yoy),
11% above GSe and 8% ahead of Bloomberg consensus. Key highlights: (1)
NII came in at Rs3.86bn (+2% qoq, +23% yoy), largely in line with GSe as
advances growth came in lower at 13% but margins (NIM:2.9%) improved by
10 bp qoq. We believe YES will likely benefit from falling interest rates next
year but are disappointed by the slow progress on CASA (up 2% qoq). (2) Non
interest income was Rs2.1bn, (+63% yoy) on higher financial markets and
advisory income. (3) Costs were in line with GSe (+31% yoy) on branch
expansion (50 branches added in 2QFY12) (4) YESB booked provision of Rs379
mn (0.4% of loans) that included 100 mn each of general provisioning and
adverse credit labeling, 92% ahead of GSe (5) Gross NPLs grew 23% qoq (+2%
yoy). Restructured assets jumped to Rs1.8 bn, as YESB added Rs900 mn of
MFI accounts this quarter, and these now stand at 0.5% of loans.
Remains a GARP play; Reiterate Buy
We have raised our FY12E EPS estimates to factor in 2Q results but we lower
FY13E-FY14E EPS by 2%-7% to factor in lower growth in advances. We have
raised our 12m CAMELOT-based TP to Rs360 (from Rs350) per share as we
roll forward our target BVPS to Sep-2012. We reiterate our Buy rating as we
believe YESB will deliver around 21% CAGR between FY12E-FY14E, while the
stock trades at a reasonable valuation of 9.8x FY12E EPS at a 38% discount to
private bank peers. Key risks: Higher exposure to infrastructure, faster growth
in past and rising rates lead to increase in higher NPLs, further capital raisings
No comments:
Post a Comment