Q3 Wrap: 3 Banks with ‘Highest’ Net Income!
The Q3 FY23 earnings season has almost come to an end with almost all of the listed companies having announced their results. To wrap up this season, here are three banks that have reported the highest Q3 FY23 net income and a brief comparison between them.
State Bank of India Limited
The highest net income earner in the December 2022 quarter was the largest PSU bank in India – State Bank of India (NS:) , with a market capitalization of INR 4,82,687 crores and currently trades at a P/E ratio of 13.65, compared to the sector’s average of 21.78.
The Q3 FY23 net income stood at INR 15,258.69 crores which is a noticeable jump of 64.09% YoY, translating into an EPS of INR 17.34, more than 2 times that of the June 2022 quarter EPS of INR 8.21. Interestingly, the bank reported a higher profit than HDFC Bank which is roughly 2 times bigger than SBI. FIIs were also seen increasing their stake, from 9.95% to 10.09% in one quarter which ended in December 2022.
HDFC Bank Limited
The second spot is secured by HDFC Bank Ltd (NS:) which is the largest private lender in the country with a market capitalization of INR 9,33,554 crores and currently trades at a P/E ratio of 24.53. The bank’s total revenue increased 24.81% YoY, while net income surged by 19.89% to INR 12,698.32 crores, 17% less than SBI, despite which it is trading at an expensive valuation than the latter.
The EPS figure jumped to 22.78 which is somewhat better than that of SBI. FIIs also minutely increased their stake to 32.26%, from 32.13% in the previous quarter. Still, it is noticeably down from 37.47% a year ago.
ICICI Bank Limited
ICICI Bank (NS:) has a market capitalization of INR 6,04,009 crores and trades at a P/E ratio of 24.05 which is almost at par with its bigger counterpart – HDFC Bank. ICICI Bank is almost 40% bigger than SBI but still, it reported a Q3 FY23 net income of INR 8,792.42 crores, which is not even 60% of SBI’s profit.
However, the bank reported a 34.5% YoY growth in net income which is quite good for a large-cap bank. FIIs have notched up their stake to 45.1%, from 44.76% in the previous quarter, the highest among all the banks on this list.
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