Federal Bank Ltd's Q3FY25 Quarter Results
- 28 Jan 2025
Result Summary
- Federal Bank Ltd reported a 2.3% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Dec (Q3FY25). On a year-on-year (YoY) basis, it witnessed a growth of 17.2%.
- Its expenses for the quarter were up by 2.9% QoQ and 19.6% YoY.
- The net profit decreased 14.7% QoQ and decreased 10.9% YoY.
- The earnings per share (EPS) of Federal Bank Ltd stood at 3.8 during Q3FY25.
Financial Statments for Q3FY25
| (₹ crores) | Q3FY25 | Q2FY25 | Q3FY24 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
Total Income | 8196.02 | 8015.29 | 6993.55 | 2.3% | 17.2% |
Total Expenses | 6531.81 | 6346.10 | 5459.89 | 2.9% | 19.6% |
Provisions & contingencies | 387.36 | 196.14 | 113.85 | 97.5% | 240.2% |
Profit Before Tax | 1276.85 | 1473.05 | 1419.81 | -13.3% | -10.1% |
Tax | 328.15 | 368.59 | 356.57 | -11.0% | -8.0% |
Profit After Tax | 951.31 | 1114.80 | 1067.27 | -14.7% | -10.9% |
Earnings Per Share | 3.80 | 4.40 | 4.20 | -13.6% | -9.5% |
Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results
Company Overview
Federal Bank Ltd is a prominent private sector bank in India, operating primarily in the financial services sector. It offers a wide range of banking and financial products and services to its customers, including personal banking, corporate banking, loans, and investment services. The bank has a strong presence across the country with a large network of branches and ATMs. Recently, Federal Bank has been focusing on expanding its digital banking capabilities to enhance customer service and operational efficiency. The bank is known for its customer-centric approach and has been actively working towards improving its technological infrastructure to provide seamless banking experiences.
Revenue
In the third quarter of the fiscal year 2025 (Q3FY25), Federal Bank Ltd reported a total income of ₹8196.02 crores. This represents a quarter-on-quarter (QoQ) increase of 2.3% from ₹8015.29 crores in Q2FY25 and a year-over-year (YoY) growth of 17.2% compared to ₹6993.55 crores in Q3FY24. The consistent growth in total income indicates a robust performance in revenue generation over both the previous quarter and the same quarter last year.
Profitability
Federal Bank Ltd's profitability metrics for Q3FY25 show a profit before tax of ₹1276.85 crores, which is a decrease of 13.3% QoQ from ₹1473.05 crores in Q2FY25 and a decline of 10.1% YoY from ₹1419.81 crores in Q3FY24. The tax expense for the quarter was ₹328.15 crores, down by 11.0% QoQ and 8.0% YoY. Consequently, the profit after tax stood at ₹951.31 crores, marking a decrease of 14.7% QoQ from ₹1114.80 crores and a reduction of 10.9% YoY from ₹1067.27 crores. The earnings per share (EPS) was ₹3.80, reflecting a QoQ decrease of 13.6% and a YoY decline of 9.5%.
Operating Metrics
The total expenses for Federal Bank Ltd in Q3FY25 amounted to ₹6531.81 crores, representing a QoQ increase of 2.9% from ₹6346.10 crores in Q2FY25 and a YoY rise of 19.6% from ₹5459.89 crores in Q3FY24. Provisions and contingencies were significantly higher at ₹387.36 crores, which is an increase of 97.5% QoQ and 240.2% YoY. This rise in provisions could impact the bank's overall financial performance. The bank's operations during the quarter reflect a focus on maintaining a balance between income growth and managing operational costs amidst an increase in provisions.
