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Mumbai : Fino Payments Bank Limited (‘Fino’ or ‘Bank’) today announced its results for the second quarter ended September 2022 (Q2FY23). The Fino continued to deliver strong performance during the quarter amidst macroeconomic challenges. This highlights the strength and scalability of the Bank’s business model along with the focused growth trajectory and digital momentum driving future growth.

Highlights for the Quarter

Financial Highlights

* Revenue up 25% YoY to ?303 cr in Q2FY23

* Net revenue margin improved from 30.3% to 30.9% on QoQ basis

* EBITDA and PAT grew by 71% and 75% YoY to ?30.5 cr and ?13.8 cr, respectively

* EBITDA margins widened to 10.1% in Q2FY23 from 7.4% in Q2FY22 while PAT margins widened to 4.6% in Q2FY23 from 3.3% in Q2FY22

* Subscription revenue increased to 30% from 25% on QoQ basis indicating sustainable annuity income

Operational Highlights

*  Distribution network: Penetration deepened further as registered merchant count increased by 51% YOY to 12.25 lakhs

*  Customer ownership: Bank accounts opened during the quarter grew by 54% YOY at 7.6 lakhs setting the base for a strong potential of cross sell and up sell

*  Product Mix substantially improved in favour of High Margin Products: CASA and CMS contribute 26% of revenue against 16% in Q2FY22

*  CASA renewal income grew by 153% in Q2FY23 YoY leading to an exponential growth in our annuity business

*  New CASA subscription income grew by 51% YOY

*  Total deposits grew 77 % YoY on 30th September 2022

*  The Banks’ total account base as on 30th September 2022 was at 59.5 lakhs of which 34% accounts are active on digital payments

*  Throughput on CMS nearly doubled YOY to ?10,464cr on the back of addition of partners

*  Remittance, a product that attracts footfalls, saw a throughput growth of 28% YOY

*  The AEPS industry grew by 13% YoY in Q2FY23 wherein the throughput of Fino ecosystem grew by 53% YoY – helping Fino to improve market share from 9% in Q2FY22 to 13% in Q2FY23

Throughput and Transaction Highlights

*  Overall throughput value grew by 40% YOY to ?60,552 cr

*  Exponential growth in digital throughput at 208% ? digital throughput is also 17% of overall throughput in Q2FY23, up from 16% in Q1FY23

*  Phygital (non?digital) throughput came in at ?50,084 cr for Q2FY23

*  28.5 cr transactions were processed in the Fino ecosystem, up 90% YOY

Rishi Gupta, CEO & Managing Director said, “This quarter marks completion of 21 quarters in our banking journey and I’m amazed to see the progress we have made since the Bank’s inception in 2017. Our continuous focus on growth and profitability has given us good dividends. The strong performance during the first half of FY23, even in the midst of macroeconomic challenges, makes us confident of a strong H2 FY23. Towards our endeavour to create a sustainable and credible bank, the journey ahead looks exciting as we aim to continue the momentum and explore growth opportunities.”

Ketan Merchant, Chief Financial Officer said, “Q2 was another quarter of solid execution and we continue to progress on our growth & profitable journey. Our business model is structured to generate disproportionate bottom line growth due to operating leverage play as evident in Q2 FY23 PAT margin. We are confident that our well-invested infrastructure and our high margin product growth will give us a unique financial edge in H2 FY23 and beyond.”

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