Q2’24 & H1’24 Financial Results

Fino Payments Bank’s 15^thConsecutive Profitable Quarter;

PAT grew 42% YOY 

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. 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 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 on consistent profitability and growth. Our strategic focus on Distribution, Data and Digital (DDD) pivoting around customer centricity for our future journey continues even in to 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 that 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.”

About Fino Payments Bank Ltd (www.finobank.com) BSE: 543386; NSE: FINOPB)

Fino Payments Bank is a subsidiary of Fino Paytech Limited, which is backed by marquee investors like Bharat Petroleum, ICICI group, Blackstone, IFC, Intel and LIC among others. Frugal innovation is the key that has given the fintech a leadership position at the middle of the pyramid, primarily serving the emerging India customers. The Mumbai‐based Bank operates on an asset light business model that principally relies on fee and commission based income generated from merchant network and strategic commercial partnerships.

The Bank’s platform had facilitated more than 120.7 crore transactions with a gross transaction value of over ₹ 2.55 lakh crores in the financial year 2022‐23. The Bank turned profitable in the fourth quarter of 2019‐20 and has been profitable in subsequent quarterly periods. It registered a profit of ₹ 65.1 crs in 2022‐23.

In Q2FY24, the Bank facilitated transactions worth ₹ 86,568 crs of which more than ₹ 23,051 crs were processed digitally. The Bank registered a PAT of ₹ 19.5 crs in the second quarter of FY24.