ICICI Direct has come out with its fourth quarter (Jan-March’ 18) earnings estimates for the Banking & Financial Services sector. The brokerage house expects HDFC to report net profit at Rs. 2,299.6 crore up 12.5% year-on-year (down 59.4% quarter-on-quarter).
Net Interest Income is expected to increase by 13.2 percent Y-o-Y (up 9.7 percent Q-o-Q) to Rs. 3,125.4 crore, according to ICICI Direct.
ICICI Direct’s earnings estimates for HDFC
Improved credit traction, as seen in the last two quarters, may continue. We estimate 18% YoY increase in advances to Rs. 349,837 crore in Q4FY18. This may be led by individual loan segment. Asset quality is expected to remain under control. Reported NIM is expected to be steady QoQ at 4% while spread of 2.3% would be maintained. PAT of Rs. 2,300 crore is estimated. The QoQ decline in PAT is owing to large capital gains in Q3FY18 due to a stake sale in the life insurance arm. Dividend income of Rs. 330 crore is expected while capital gains of Rs. 300 crore are expected (Rs. 265 crore due to sale of stake in two subsidiaries namely HDFC Developers and HDFC Realty).
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