Bank of Baroda Q4FY25 results

• NII below consensus & our estimates (~6%) at Rs. 11,020 crore (down 7% yoy/ down 3%qoq; Est: Rs. 11,733 crore). NIMs decline by 8bps q-o-q to 2.86% vs expectation of stable NIMs.
• Core fee income up 14% yoy/26% qoq. Treasury gains at Rs. 1,559 crore vs gain of Rs. 936 crore q-o-q and Rs. 753 crore gain in Q4FY24. Other income excluding treasury gains at Rs.   1,474 crore vs Rs 1,101 crore q-o-q and Rs. 1,523 crore y-o-y.
• Opex higher at Rs 8,097 crore (up 3% yoy/ 8% qoq; Est: Rs. 7,817 crore).
• PPOP in line consensus & our estimates at Rs 8,132 crore (flat yoy/ up 6% qoq, Est: Rs. 8,132 crore) mainly led by treasury gains. Core PPoP (ex. treasury gains) declined by 11% y-o-y / 2 % q-o-q.
• Provisions slightly higher at Rs. 1,552 crore (up 19% yoy/ 43% qoq; Est: Rs. 1,032 crore). Core credit cost stood at 44 bps annualised vs 31 bps q-o-q and 57 bps y-o-y.
• PAT higher than consensus & lower than our estimates at Rs. 5,048 crore (up 3% yoy/ 4 % qoq), Est: Rs 5,183 crore).
• Headline asset quality ratios improved (led by higher write offs) by 17 bps/ 1 bps q-o-q with GNPA/ NNPA ratio at 2.26%/ 0.58%; PCR at 75% vs 76% qoq.
• Slippages are slightly higher at 1.2% vs 1.1% q-o-q. Net slippages were also higher at Rs. 1,216 crore vs Rs. 1,094 crore q-o-q. However, SMA 1 & 2 (o/s above Rs. 5 crore) book stood at 0.33% vs 0.49% qoq.

View: Bank reported weak core operating performance in Q4FY25. Core PPoP declined by 11% y-o-y/ 2% q-o-q led by weak NII and higher opex growth. NII was significantly lower due to lower NIMs which was a key negative surprise). NIMs decline by 8bps q-o-q to 2.86% vs expectation of stable NIMs.  Although treasury gains have aided operating profitability. Slightly higher provisions led by higher write offs led to miss in earnings. Nevertheless, core credit cost still remined lower below the long term average. Asset quality improved led by higher write offs. Slippages were slightly higher. The bank reported RoA at 1.2% (stable qoq). 

Result Snapshot (Rs. Cr)

Actual vs estimates (Rs. Cr)