Fino Payments Bank Achieves Record Q2 FY25 Earnings with ₹25.9 Crore Profit Before Tax

Fino Payments Bank Limited has announced its financial results for the quarter ending September 30, 2024 (Q2 FY25) and the first half of FY25 (H1 FY25). The bank achieved a record profit before tax (PBT) of ₹25.9 crore for Q2, with a post-tax profit of ₹21.1 crore, marking its first tax payment. Fino is focused on growing its high-margin products by incorporating advanced technology and enhancing customer experiences while ensuring strong compliance.

Financial Highlights

Q2 FY25

• Revenue increased by 27% year-on-year (YoY) to ₹455.4 crore, with digital services contributing 17% of this revenue, a rise from 5% in Q2 FY24.
• PBT margins for Q2 stood at 5.7%, slightly up from 5.4% in the same quarter last year.

H1 FY25

• Revenue for the first half also grew by 26% YoY to ₹892.3 crore, with digital services making up 16% of total revenue.
• PBT margins remained consistent at 5.6%, up from 5.4% in H1 FY24.
• The cost-income ratio improved to 25.6%, down from 26.9% in H1 FY24.

Throughput and Transaction Highlights

• The total throughput value for Q2 reached ₹106.9 trillion, reflecting a 24% YoY increase.
• H1 FY25 marked the first time total throughput surpassed ₹2 trillion.
• In September 2024, Fino processed over 23 million UPI transactions, accounting for 1.55% of the overall UPI transaction volume.

Operational Highlights

• The merchant network expanded by over 22% YoY, reaching 1.85 million merchants and covering 97% of India’s pin codes.
• During Q2 FY25, more than 820,000 new bank accounts were opened, bringing the total customer base to 12.6 million, with 70% active accounts, creating opportunities for cross-selling.
• The share of high-margin products, specifically CASA and CMS, rose to 32% of total revenue in Q2 FY25, compared to 30% in Q2 FY24.
• Renewal income from annuity business surged by 51% YoY in Q2 and 52% YoY in H1 FY25, totalling ₹45.7 crore and ₹86.1 crore, respectively.
• Average deposits grew by 34% YoY to ₹1,696 crore in Q2 and by 35% YoY to ₹1,698 crore in H1.
• The value of CMS transactions jumped by 49% YoY to ₹21,818 crore in Q2, with a 37% YoY growth to ₹41,614 crore in H1.
• Digital payment services accounted for 17% of revenue in Q2, a significant increase from 5% in Q2 FY24, driven by effective technology solutions for B2B partners.

Rishi Gupta, Managing Director & CEO, said, “I am delighted to announce that we have posted our highest-ever quarterly revenue and profit before tax, a testament to our TAM (Transaction, Acquisition and Monetisation) strategy and sustainable business model. Our emphasis on ‘digital payment services’ is giving the necessary impetus to our growth, thereby contributing to the overall journey of ‘Digital as well as Vikasit Bharat’. We are committed to exploring new opportunities and sustaining the current growth momentum by monetizing our unique model with the highest governance standards.” 

On October 24, 2024, FINO Payments Bank Ltd’s share price opened at ₹389.00, touching the high of ₹390.20 as of 10:04 AM on the NSE.

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