MOSL: LIC HOUSING FINANCE (Neutral)-In-line performance-spread performance key monitorable
LIC Housing Finance: In-line performance; spread performance key monitorable
(LICHF IN, Mkt Cap USD4.4b, CMP INR548, TP INR610, 12%Upside, Neutral)
- LIC Housing Finance (LICHF) reported a marginal 2% YoY increase in PAT to INR5.4b (5% beat), helped by better than expected loan growth and lower credit costs.
- Loan book growth remained in line with past trends at 15-16% YoY, with core home loans growing at 11% YoY. Loan mix continued to shift towards non-core loans, with the share of LAP and developer loans increasing 180bp QoQ to 19.2%.
- Disbursements grew 15% YoY to INR174b, driven by 17% YoY increase in home loan disbursements to INR110b.
- Calculated spreads declined 45bp YoY, but improved 15bp QoQ to 1.5%. The sequential improvement was driven by 25bp reduction in cost of funds. Core NII declined 4% YoY to INR10b. Fees and other income stood at INR874m against an estimated INR568m as the company tweaked its fee charges on all loans.
- GNPL ratio declined 9bp QoQ to 0.78%, driven by recoveries in corporate and retail books. GNPL in the corporate loan book increased from INR3.5b in 4QFY17 to INR6.4b. PCR stands at 45%.
LIC Housing Finance provides loans for purchase, construction, repairs and renovation of houses and flats to individuals, corporate bodies, builders and co-operative housing societies. Co.'s subsidiary is engaged in the business of setting up, running and maintaining assisted living community centre and care homes for senior citizens.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.