Edelweiss FY17 results


  • Consol PAT increased by 47% YoY to reach 609 cr for FY17 (Rs 719 cr excluding insurance)

o   Insurance business continues to be loss making


  • Credit business

o   Networth of credit book reached Rs 27k cr, within which Corporate Credit accounts for 50%, Retail credit accounts for 33% and Distressed credit accounts for 17%.

o   Credit business saw PAT growth of 33% to reach Rs 447 cr

o   Off balance sheet book increased by 93%

o   GNPA at 1.59% and NNPA at 0.6% as of Mar’17

o   RoE of Corporate book is 18%,

o   ARC assets increased by 38% YoY to reach Rs 34,700 cr

  • ARC business PAT is at Rs 97 cr


  • Franchise business

o   Franchise business PAT increased non linearly to reach Rs 193cr from Rs72 cr in FY16

  • Capital markets PAT came in at Ra 115 cr
  • Wealth management PAT came in at Rs 71 cr
  • AMC PAT came in at Rs 7 cr

o   Wealth management assets under advice (AUA) reached Rs 60,300 cr, YoY growth of 104%

  • Cost to income ratio improved to 76% for the year from 88% in FY16. Looking to come down to 60-65% in a couple of years
  • Yields of 70 – 80 bps on AUA

o   Assets under management for AMC increased by 325% YoY to reach Rs 6,800 cr

o   Assets under management for Alternative assets increased by 235% YoY to reach Rs 11,400 cr

o   Institutional Equities revenue market share at 4.3%

o   Investment Banking market share at 4.0%


  • Life Insurance

o   Embedded value came in at Rs 1012 cr, with net-worth of Rs 733 cr

o   Focussed on participating products via agency channel (47% par, 9% non par, 15% Group, 29% ULIP)

o   Individual APE growth of 48% YoY.

o   Expect accounting breakeven by FY22 and EV PAT breakeven by FY20

o   Capital is coming from JV partners (75% is coming from partner though partner holding is 49%)

o   Edelweiss has invested Rs 350 cr in the business, with rest Rs 1000 cr coming from foreign partner


  • Balance Sheet Management Unit

o   PAT came in at Rs 79 cr



  • General Insurance

o   Looking to build online digital platform, want to invest in customer acquisition

o   Auto health and Homes insurance will be key segments

o   Expect to spend around Rs 30-40 cr every year for the next few years

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