YES Bank's 4Q16 profit after tax up 30% to US$141m

Thanks to fee income's 72% growth.

According to Maybank Kim Eng, 4Q PAT was in line, up 30% YoY to INR9.1b (US$141m). PAT growth was supported by strong NII and fee income. Performance was impressive on most counts, barring the slight blip in asset quality. Balance sheet profile continues to improve with CASA ratio now at 36.3%, up 8ppts YoY. CASA improvement rubbed off on NIMs, which improved 20bps YoY to 3.6%. 

Here's more from Maybank Kim Eng:

Loan growth of 35% YoY was led by corporate loans which grew 40%. Branch count increased by 140 in the last one year to 1,000. This along with improved retail offerings aided CASA growth. Savings account growth was impressive at 60% YoY. CASA ratio now stands at 36.3% (+8ppts). Retail fee income grew 72% YoY, largely led by third party product distribution. NIM continued to trend up on the back of the low funding cost. NIMs were up 20bps YoY to 3.6%.

Asset quality deteriorated as the bank recognised a INR9b NPL following regulators’ observation. This account relates to an M&A transaction in the cement sector. YES made a provision of around 25% against this exposure. Management sounded confident of its recovery in the coming quarter. Gross NPLs increased 80bps YoY to 1.5%.