Tag: Fino Payments Bank

Business

Fino Payments Bank’s 15thConsecutive Profitable Quarter;PAT grew 42 Percent YOY

Nov 2, 2023 by Sujata Muguda 0 Comments #Fino Payments Bank, #Fino Payments Bank Limited (‘Fino’ or ‘Bank’), #Rishi Gupta

Mumbai, 2nd November 2023: Fino Payments Bank Limited (‘Fino’ or ‘Bank’) released its results for the quarter and half year ended September 2023 (Q2’24 & H1’24). The Bank has achieved another milestone on throughput demonstrating the efficacy of its digital impetus, pathway of strong financial growth, and customer engagement during this period.

With every passing quarter, the Bank is progressively enhancing its sustainability and is well-positioned to capitalize on emerging growth prospects.

Financial Highlights for Q2’24

Throughput increased by 43% and digital throughput increased by 120%.

In Q2’24, revenue increased 18% YoY to ₹ 358.6 crs.

EBITDA and PAT expanded by 51% and 42% YoY to ₹ 46.2 crs and ₹ 19.5 crs, respectively.

PAT margins increased to 5.4% in Q2’24 from 4.6% in Q2’23.

Financial Highlights for H1’24

H1’24 revenue increased 19% YoY to ₹ 706.9 crs.

EBITDA and PAT expanded by 60% each YoY to ₹ 87 crs and ₹ 38 crs, respectively.

PAT margins in H1’24 at 5.4% up from 4.0% in H1’23.

Throughput and Transaction Highlights for H1’24 and Q2’24

Overall throughput value grew by 43% YoY to ₹ 86,568 crs in Q2’24; H1’24 throughput grew 34% YoY to ₹ 162,374 crs.

H1’24 was the first-ever half where the total throughput crossed ₹ 1.5 lakh crs.
Digital throughput grew 120% YoY to ₹ 23,051 crs in Q2’24 and 108% YoY to ₹ 41,402 crs in H1’24.

Digital throughput is 27% of overall throughput in Q2’24, up from 17% in Q2’23.

37 cr UPI transactions in Q2’24; Contributed 1.25% to overall UPI ecosystem volume

Operational Highlights for H1’24 and Q2’24

Distribution network: The number of registered merchants climbed by 23.4% YoY to 15.1 lakhs, substantially deepening penetration and Fino’s distribution reach.

Customer ownership: 15.4 lakh bank accounts were opened during H1’24, up 12% YoY laying the groundwork for a significant cross and up-selling opportunity. The total number of CASA accounts ending H1’24 stood at 90.6 lakhs.

Product Mix substantially improved in favour of High-Margin Products: Revenue from CASA and CMS is 30% of total revenue in Q2’24 (26% in Q2’23).

Our annuity business experienced exponential growth as a result of CASA renewal income which grew 95% YoY in Q2’24 to ₹ 30.3 crs and 96% YoY in H1’24 to 56.5 crs.

Average deposits grew 53% YoY from ₹ 830 crs in Q2’23 to ₹ 1,267crs in Q2’24.

CMS volumes increased 40% YoY to ₹ 14,685 crs in Q2’24 and 55% YoY to ₹ 30,353 crs in H1’24, riding on an increased client base, which stood at 189 ending H1’24.

Rishi Gupta, CEO & Managing Director said, “I’m delighted to announce that our performance in the first half of FY24 is one more testimony of our commitment to consistent profitability and growth. Our strategic focus on Distribution, Data, and Digital (DDD) pivoting around customer centricity for our future journey continues even into our ambition of becoming a Small Finance Bank (SFB).

Digital impetus is an important business focus area for us and we are making significant progress in the space with ~40% of our customers being digitally active during the quarter. We opened 1 lakh accounts digitally till date, 27% of throughput is digital which contributed 1.25% to the UPI ecosystem in Q2’24. We are thoroughly prepared and excited about the road ahead. We have unwavering confidence in our ability to innovate and monetize growth opportunities as we continue to build a strong and profitable organization.”

Ketan Merchant, Chief Financial Officer said, “Our performance in the first half of the fiscal has been in line with our expectations wherein on the back of digital push we have registered another record on throughput of ~ ₹1,62,000 crs. With more than 2.5 lakh accounts consistently being opened on a monthly basis, we are creating an excellent platform for our future evolution. Our focus on profitability is driving PAT margin upwards from 4% in H1’23 to 5.4% in H1’24.

We remain committed to achieve a growth rate of around 20% in revenue, aligning with our goal of enhancing digital presence through the Fino 2.0 initiative with profitability and customer centricity at the helm.”

Business

Financial Results for Q3FY22 of Fino Payments Bank

Jan 29, 2022 by Praveen 0 Comments #Financial Results, #Fino Payments Bank, #Ketan Merchant, #Rishi Gupta

Mumbai, 27 January 2022: The Board of Directors of Fino Payments Bank Limited (BSE: 543386; NSE: FINOPB) (“Fino Bank” or “the Bank”) at its meeting on Thursday, January 27, 2022, approved the financial statements accounts of the Bank for the quarter ended December 31, 2021.

 

Performance highlights for the quarter ended December 31, 2021

 

  • Overall throughput value (TPV) grew by 29% YOY to ₹49,168 crores in Q3FY22 and by 42% YOY to ₹134,043 crores in 9MFY22
  • UPI throughput during 9MFY22 grew by a whopping 351% YOY to ₹ 10,962 crores
  • 39.2 lakh Fino Bank accounts have been opened till 31st Dec 2021 with more than 2 lakh accounts opened in December 2021 alone.
  • 866,034 merchants have been onboarded in the Fino ecosystem till 31st Dec 2021; growth of 58% YOY
  • Over 18 crore transactions were carried out on Fino’s platforms in Q3FY22
  • Revenue during the quarter grew by 20% YOY to ₹275.16 crores on the back of a 75% YOY growth in subscription income
  • EBITDA grew by 84% YOY to ₹25.93 crores in Q3FY22
  • EBITDA margins improved by 205 basis points sequentially from 7.4% in Q2FY22 to 9.4% in Q3FY22
  • Profit After Tax (PAT) grew by 116% YOY to ₹ 14.1 crores in Q3FY22
  • PAT margins improved by 186 basis points sequentially from 3.3% in Q2FY22 to 5.1% in Q3FY22
  • Annualised Return on Equity (RoE) of Q3FY22 is at 18%
  • CASA total subscription revenue grew by 124% YOY (new account subscription grew by 99% YOY to ₹16.7 crores and renewal annuity income grew by 204% YOY to ₹7.9 crores)
  • Transaction revenue of MATM & AEPS registered sequential growth of 8% in Q3FY22 with transaction margins remaining steady
  • Revenue from remittance grew by 26% YOY and 29% sequentially in Q3FY22
  • Debit card spending continue to register strong momentum with average spending per transaction during 9MFY22 at ₹2,657 vis-à-vis ₹2,528 during FY21
  • On-boarded 17 new partners in CMS business taking the tally of partners to 127

Rishi Gupta, CEO & Managing Director said, “It is another standout quarter for us with emerging businesses like liabilities accounts and CMS achieving record volumes. The third quarter is traditionally marked by festivities in India that leads to a surge in payment businesses like those of Fino Bank. Our consistent focus and execution excellence resulted in capitalising on the festive spirit in Q3FY22. Our sequential revenue growth in Q3FY22 is 13.6% over Q2FY22 while the year-on-year growth is at 20%.

Our continuous efforts towards customer-centric innovation and digitization have led to rising in UPI transactions and debit card spending of Fino Bank customers. This further validates the increased adoption of digital payments by our consumers in emerging Bharat. Going forward, we expect revenues from digital banking business to contribute a larger share in our overall revenue pie.”

Ketan Merchant, Chief Financial Officer said, “Operating leverage in our lean cost model is showing impact in our profitability. Our strategy to focus on growth in high margin products not only ensured robust revenues but also a resounding growth in our PAT to ₹14.1 crores in Q3FY22. In the process helped improve our PAT margin by 186 basis points sequentially from 3.26% in Q2FY22 to 5.12% in Q3FY22.

Our annualised ROE in Q3FY22 is at 18% after factoring in the IPO proceeds that came in November 2021. If we exclude the IPO proceeds from our net worth, our average annualized ROE in Q3FY22 would be 33.5%. No credit risk and a risk-free prepaid model representing limited downsides enable a sustainable high ROE trajectory in the long run.”

Some important milestones of Fino Bank in Q3FY22:

  1. Remittance or Domestic Money Transfer (DMT) business regained  pre-COVID levels in terms of throughput in Oct-21
  2. CMS throughput value for a month crossed ₹2,000 crores in Dec-21 and ₹6,000 crores in a quarter for the first time.
  3. Opened more than 2 lakh bank accounts in a month for the first time in Dec-21. This is an outcome of converting organic footfalls generated by legacy businesses like DMT and Micro ATM & AEPS
  4. UPI throughput value crossed ₹5,000 crores for the first time in a quarter
  5. Received the RBI approval to commence cross-border remittance through the MTSS scheme