HDFC Bank Q3 Review - Superior Credit Quality; Core Fee Income Drags Earnings: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.HDFC Bank Ltd.’s Q3 FY22 performance was characterised by superior asset quality performance, partially offset by modest core fee income, higher opex and steady net interest margins. All in all, it still delivered 2.2% return on asset and more than 18% return on equity with better visibility of similar RoE profile sustainable for FY23/FY24E. Credit cost being managed at less than 1% with slippages moderating to 1.5% led to HDFC Bank's earnings beat. Steady net interest margins at 4.1% sustained net interest income growth at 13% YoY. What gives confidence: further contingency buffer of Rs 9 billion with cumulative provisioning now equivalent to 2.2% of advances against 2.7% of stress pool;building digital and franchise capabilities to capture growth opportunities. What surprised negatively: operating profit growth modest at ~10%,flat core fee income primarily due to decline in payment products fee,higher than expected QoQ rise of 6% in operating expenses..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HDFC Bank Q3 Review - Superior Credit Quality; Core Fee Income Drags Earnings: ICICI Securities

HDFC Bank Q3 Review - Superior Credit Quality; Core Fee Income Drags Earnings: ICICI Securities

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