YES Bank Q4 results today; here are key things to watch out for

YES Bank shares have declined 12.75% in the fourth quarter of financial year 2025, data from stock exchanges showed. In the quarter ended December 2024, the Mumbai-based lender reported a net profit of ₹612 crore, marking an increase of 165% from ₹231 crore in the same period last year. Its net interest income, or the difference between interest earned on loans and expended on deposits, rose 10% to ₹2,223.52 crore from ₹2,016.88 crore in the year-ago period.

The bank's asset quality showed improvement in the December quarter as its gross non-performing assets (GNPA) came in at 1.6%, as a percentage of total advances, against 2% in the year-ago period, while its net NPA improved to 0.5% from 0.9% in the same period last year.

YES Bank's strong performance in the December quarter came on the back of sharply lower provisions for bad loans, as it provided ₹258.68 crore in the December quarter against ₹555 crore in the corresponding period last year.

Meanwhile, analysts at international broking Goldman Sachs expect YES Bank to report loan growth of 8% in the fourth quarter of financial year 2025 against loan growth of 13% it clocked in the previous quarter. Net interest margins (NIM) are likely to show marginal improvement to 2.15% from 2.14% in the third quarter.

Goldman Sachs added that it expects Pre-Provision Operating Profit (PPOP) to decline to 0.60% against 1.07% in the previous quarter, while return on assets is expected at 0.50%.

Goldman Sachs, in a report last week, said that it sees early signs of improvement in asset quality and operating profitability for the banking sector.

"In the near term the data points could remain soft, given sluggish credit growth (see recent report), impact on NIMs due to lead/lag between loans vs. deposits and elevated credit costs, driving modest EPS cuts of 2% on average for our coverage for FY26E. We believe the sector could be closer to the bottom of the cycle, with cuts to consensus EPS forecasts for FY26-FY27E to end in 1HFY26," Goldman Sachs said in a report.

The global investment bank added that the asset quality of the banking sector is showing signs of stabilisation in most loan segments, noticeably in the unsecured loan segment, except for business banking loans for NBFCs.

"We expect the slippages to start moderating from 2HFY26, and consequently, the credit costs will also start to moderate from 2HFY26, as we lower our credit-costs assumptions," Goldman Sachs added.

Goldman Sachs further said that banks will have a manageable impact of tariffs on their earnings.

YES Bank shares ended 1.23% higher at ₹18.09 on Thursday ahead of its earnings announcement.