YES Bank Q3 results: Earnings preview, key things to watch, share price targets & more

YES Bank is set to announce its earnings for the December 2024 quarter on Saturday, January 25, 2025. The private lender, in an exchange filing earlier this month, announced the date for its unaudited standalone and consolidated results for quarter and nine months ended on December 31, 2024.

Following the Q3 earnings, YES Bank Ltd will host a conference call with analyst and investors on Saturday, January 25, 2025 at 03:00 pm IST on Saturday, January 25, 2025 to discuss the financial results with the participants, said the lender in a separate exchange filing.

Q3 business updates

Yes Bank’s loans and advances rose by 12.6 per cent YoY to Rs 2,45,035 crore as of December 31, 2024, from Rs 2,17,523 crore in the previous corresponding year. Private sector lender’s deposits grew 14.6 per cent on a YoY basis to Rs 2,77,199 crore from Rs 2,41,831 crore a year ago. On a QoQ basis, deposits remained flat. CASA (current account savings account) rose 27.6 per cent YoY in the quarter.

After the Q3 business updates from the banks, Nirmal Bang Institutional Equities has witnessed some key trends including credit growth has moderated; deposit growth was supported by strong growth in term deposits; CASA deposit mobilization continued to remain under pressure; banks saw decline in their C/D ratios; and some SFBs saw a deterioration in GNPA and collection efficiencies.

YES Bank share price movement

Shares of YES Bank settled at Rs 18.48 on Thursday, rising 0.65 per cent for the day. The total market capitalization slipped below Rs 58,000 crore mark. YES Bank shares have tumbled 44 per cent from its 52-week high at Rs 32.81 hit in February 2024. The stock has tanked more than 25 per cent in the last six months.

Q3 results preview

YES Bank is likely to deliver a double digit growth in net interest income (NIIs) on yearly basis, while sequential growth may remain flat. Net profit is seen more than doubling on a YoY comparison, while sequential growth is seen largely muted. net interest margins (NIMs) may contract marginally, said analysts.

Kotak Institutional Equities expects net interest income (NIIs) to come in at Rs 2,219.2 crore, up 10 per cent YoY and flat on a sequential basis. Pre-provision profit (PPOP) is seen at Rs 1,024.8 crore, up 18.6 per cent YoY and 5.1 per cent QoQ. PAT is seen at Rs 512 crore, up 121.4 per cent YoY but down 7.4 per cent QoQ. NIMs may contract marginally to 2.7 per cent for the quarter.

“We expect a muted NII growth led by slower loan growth and mix change. The bank is a bit more cautious in select segments of the retail portfolio. We expect NIM at 2.4 per cent, but there is likely to be a lot of volatility, given the nature of income booked when security receipts mature and impact of RIDF investments. We should see steady traction on recovery and upgrades in 3QFY25. The focus is shifting toward rebuilding the business for the bank,” Kotak added, which has a ‘sell’ rating on the stock.

Emkay Financial Services is penciling NIIs to come in at Rs 2,268.5 crore in Q3FY25, up 12.5 per cent YoY and 3.1 per cent QoQ. PPOP is seen at Rs 986 crore, rising 14.2 per cent QoQ, but flat on sequential basis. PAT is likely to come in at Rs 559.4 crore, up 142.3 per cent YoY and 1.1 per cent QoQ in the given quarter.

“We expect earnings to remain flat QoQ due to flat margins, while slippages would remain flat QoQ, albeit elevated,” said Emkay, who has a ‘sell’ rating on the stock with a target price of Rs 16.

Anand Rathi Shares & Stock Brokers, which also has a ‘sell’ rating on the stock, sees NIIs at Rs 2,245.6 crore in the third quarter of current fiscal, up 11.3 per cent YoY and 2.1 per cent sequentially. PPOP is likely to come in at Rs 1,002.8 crore, up 16.1 per cent YoY and 2.8 per cent QoQ. Net profit is penciled at Rs 535.5 crore, rising 131.3 per cent YoY but down 3.2 per cent QoQ.