Latest news with #badloans
Reuters
6 days ago
- Business
- Reuters
India's SBI Card misses quarterly profit view on higher write-offs
BENGALURU, July 25 (Reuters) - India's SBI Cards and Payment Services ( opens new tab reported first-quarter profit below expectations on Friday, weighed by a surge in the credit card service provider's write-offs. The country's lenders are grappling with rising bad loans, particularly in sectors such as microfinance, credit cards and personal loans. Analysts have attributed this to over-leveraging and an increase in loans outstanding per borrower. SBI Card - majority owned by the country's largest lender, State Bank of India ( opens new tab - reported a 6.5% fall in profit after tax to 5.56 billion rupees ($64.3 million) for the three months ended June. The profit was also lower than analysts' average expectations of 5.86 billion rupees, according to data compiled by LSEG. This also marked the fourth quarter of a profit drop for SBI Card, which has faced elevated delinquencies over the last few quarters. The company said gross write-offs jumped 32% from a year earlier to 12.80 billion rupees. Overall spending by cardholders rose 21% to 932.44 billion rupees, while cards-in-force, or the sum of all credit cards issued, rose 10% from last year. The company's revenue from operations rose 12% on-year to 48.77 billion rupees. Its gross non-performing assets ratio improved slightly to 3.07% from 3.08% in the previous quarter, but was marginally higher than 3.06% a year earlier. ($1 = 86.4920 Indian rupees)
The National
21-07-2025
- Business
- The National
Saudi National Bank reports 17% rise in second quarter profit on investment income boost
Saudi National Bank, the biggest lender in Saudi Arabia by assets, reported a 17 per cent jump in its second-quarter net profit as provisions for bad loans fell and income from financing portfolio rose amid continued economic momentum. Net income for the three months to the end of June climbed to 6.13 billion Saudi riyals ($1.6 billion), the bank said in a regulatory filing on Monday to the Tadawul bourse, where its shares are traded. Total income from commissions at the end of the period jumped 4 per cent to 11.57 billion riyals. The rise in quarterly income was also supported by a '10.4 per cent increase in special commission income from investments portfolio', SNB said. Total operating profit climbed 6.6 per cent to 9.51 billion riyals during the reporting period. Banks in Saudi Arabia, the Arab world's biggest economy, are benefiting from robust economic momentum despite global headwinds and geopolitical turbulence in the wider Middle East. The economy of the world's leading oil producer is forecast to grow 3.5 per cent this year, and 3.9 per cent in 2026, amid the rapid unwinding of crude production caps, the International Monetary Fund said in June. 'Saudi Arabia's economy has demonstrated strong resilience to shocks, with non-oil economic activities expanding, inflation contained, and unemployment reaching record-low levels,' the IMF said at the time. The kingdom has been diversifying its economy away from oil with an emphasis on the development of sectors including financial services, capital markets technology, health, education, infrastructure and tourism as part of Vision 2030. The higher interest rate regime for longer is also supporting profitability of regional lenders. Currencies of most Gulf economies, with the exception of Kuwait, are pegged to the US dollar and Gulf central banks mostly mimic the Federal Reserve moves on interest rates. The Fed has kept the interest rates steady over the past few quarters, despite pressure from the White House to reduce the policy rate. SNB said the kingdom's economic growth has been reflected in its six-month performance as well. The lender's net profit for the January-June period rose by more than 18 per cent to 12.16 billion riyals while total comprehensive income jumped by about 50 per cent on an annual basis to 13 billion riyals. Assets at the end of the reporting period rose by 10.4 per cent on an annual basis to 1.2 trillion riyals. SNB's loans and advances portfolio increased by more than 12 per cent annually to 714.83 billion riyals.
Yahoo
19-07-2025
- Business
- Yahoo
India's HDFC Bank reports 12.2% profit growth in Q1 due to higher interest income
(Reuters) -HDFC Bank, India's largest private bank by market capitalisation, reported higher-than-expected quarterly profit on Saturday due to a surge in interest income from loans and treasury gains, even as provisions for bad loans spiked. The bank's standalone net profit rose 12.2% to 181.55 billion rupees ($2.11 billion) in the April-to-June quarter, above the average analyst forecast of 172.84 billion rupees, according to data compiled by LSEG. The bank's net interest income - the difference between interest earned on loans and paid on deposits - rose 5.4% to 314.38 billion rupees. Other income, typically backed by treasury gains and fees on services, more than doubled to 217.29 billion rupees in the quarter. HDFC Bank's provisions for bad loans, however, jumped five-fold to 144 billion rupees. The bank, in its exchange filing, said most of these provisions were not linked to any actual bad loans but instead acted as a "countercyclical buffer for making the balance sheet more resilient." Indian lenders have been grappling with an increase in bad loans in segments such as microfinance and unsecured portfolio, which have forced them to set aside more funds for potential defaults and to strengthen their balance sheets. On Thursday, HDFC Bank peer Axis Bank saw its new bad loans double due to a market benchmarking exercise. While overall bank credit growth has slowed in India, HDFC Bank posted growth of 6.7% for its overall loan book, driven by a 17.1% rise in loans to small and medium businesses. The private lender also approved its first ever bonus share issue on Saturday, meaning each of its shareholders will be eligible to receive an extra bonus share for every share held. The date of issuance is still to be determined, the bank said. In a bonus issue, a company distributes additional stock to shareholders as a proportion of their holdings at no cost. It is typically a sign of confidence in financial performance and growth trajectory. The board has also approved a special dividend of 5 rupees per share. ($1 = 86.1450 Indian rupees)
Reuters
19-07-2025
- Business
- Reuters
India's HDFC Bank reports 12.2% profit growth in Q1 due to higher interest income
July 19 (Reuters) - HDFC Bank ( opens new tab, India's largest private bank by market capitalisation, reported higher-than-expected quarterly profit on Saturday due to a surge in interest income from loans and treasury gains, even as provisions for bad loans spiked. The bank's standalone net profit rose 12.2% to 181.55 billion rupees ($2.11 billion) in the April-to-June quarter, above the average analyst forecast of 172.84 billion rupees, according to data compiled by LSEG. The bank's net interest income - the difference between interest earned on loans and paid on deposits - rose 5.4% to 314.38 billion rupees. Other income, typically backed by treasury gains and fees on services, more than doubled to 217.29 billion rupees in the quarter. HDFC Bank's provisions for bad loans, however, jumped five-fold to 144 billion rupees. The bank, in its exchange filing, said most of these provisions were not linked to any actual bad loans but instead acted as a "countercyclical buffer for making the balance sheet more resilient." Indian lenders have been grappling with an increase in bad loans in segments such as microfinance and unsecured portfolio, which have forced them to set aside more funds for potential defaults and to strengthen their balance sheets. On Thursday, HDFC Bank peer Axis Bank ( opens new tab saw its new bad loans double due to a market benchmarking exercise. While overall bank credit growth has slowed in India, HDFC Bank posted growth of 6.7% for its overall loan book, driven by a 17.1% rise in loans to small and medium businesses. The private lender also approved its first ever bonus share issue on Saturday, meaning each of its shareholders will be eligible to receive an extra bonus share for every share held. The date of issuance is still to be determined, the bank said. In a bonus issue, a company distributes additional stock to shareholders as a proportion of their holdings at no cost. It is typically a sign of confidence in financial performance and growth trajectory. The board has also approved a special dividend of 5 rupees per share. ($1 = 86.1450 Indian rupees)
Reuters
17-07-2025
- Business
- Reuters
India's Axis Bank posts surprise quarterly profit drop on rise in bad loan provisions
BENGALURU, July 17 (Reuters) - Indian private lender Axis Bank ( opens new tab reported a surprise drop in first-quarter profit on Thursday, weighed by higher provisions for bad loans and deteriorating asset quality. The country's fourth-largest private lender by market capitalisation reported a standalone net profit of 58.06 billion rupees ($674.8 million) for the quarter ended June 30, compared with a profit of 60.35 billion rupees a year earlier. Analysts, on average, had expected a profit of 63.73 billion rupees, as per data compiled by LSEG. Net interest income, the difference between interest earned on loans and paid on deposits, rose a marginal 0.8% to 135.6 billion rupees, as per Reuters' calculations. Provisions and contingencies, or funds kept aside for potential bad loans, doubled year-on-year to 39.48 billion rupees. Indian lenders have been grappling with higher bad loans in segments such as microfinance and unsecured portfolio, forcing them to set aside more funds for potential bad loans and to strengthen their balance sheets. Axis Bank's gross non-performing assets ratio, a key gauge of asset quality, deteriorated to 1.57% at the end of June, compared with 1.28% three months earlier. ($1 = 86.0460 Indian rupees)
