- AU Small Finance reported a net income of 5.28 billion rupees for the third quarter, which is a 41% increase compared to the same period last year and in line with the estimated figure of 5.27 billion rupees.
- The bank’s gross non-performing assets rose to 2.31%, up from 1.98% in the previous quarter.
- Interest income reached 41.1 billion rupees, reflecting a 50% increase year-over-year, though slightly below the expected 41.4 billion rupees.
- Interest expenses grew by 48% year-over-year to 20.9 billion rupees, slightly higher than the projected 20.79 billion rupees.
- Operating profit surged by 83% from the previous year, amounting to 12 billion rupees, surpassing the estimated 10.95 billion rupees.
- Other income increased by 37% year-over-year, totaling 6.18 billion rupees.
- Provisions stood at 5.02 billion rupees, a 35% quarter-over-quarter rise, exceeding the estimate of 3.6 billion rupees.
- Investment recommendations include 18 buy ratings, 7 hold ratings, and 4 sell ratings for AU Small Finance.
A look at AU Small Finance Bank Limited Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, AU Small Finance Bank Limited seems to have a mixed long-term outlook. While the company scores moderately on factors like value and growth, with scores of 3 out of 5 for both, it falls slightly lower in terms of dividends and momentum, scoring 2 out of 5 in both categories. However, the bank shows particular strength in resilience, scoring a solid 4 out of 5 in this area. This suggests that AU Small Finance Bank Limited may be well-equipped to withstand economic fluctuations and challenges in the future.
Overall, AU Small Finance Bank Limited operates as a commercial bank in India, offering a range of financial products and services to its customers, including savings and current accounts, term deposits, insurance, retail loans, and microfinance lending. With a balanced outlook reflected in its Smart Scores, the company’s resilience stands out as a key strength that could contribute to its long-term sustainability in a potentially volatile market environment.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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