Q4 Results : Analysts predict that SBI’s Q4 profit could drop by as much as 38% YoY due to increased operating expenses.

Q4 Results : Analysts predict that SBI’s Q4 profit could drop by as much as 38% YoY due to increased operating expenses.

Preview of SBI Q4 Results

Mark your calendars for Thursday, May 9, 2024, as SBI is all set to disclose its Q4FY24 results for FY23-24. Analysts suggest that the growth in SBI’s net profit during this quarter will depend on the bank’s decision to set aside funds for one-time staff costs, including higher salary provisions.

Their projected amount ranges widely from Rs 10,432 crore to Rs 14,743 crore. This is in comparison to the net profit of Rs 16,694.5 crore in the same quarter last year (Q4FY23), and Rs 9,163.9 crore in the December quarter of FY24 (Q3FY24).

SBI stock reached an all-time high of Rs 834.6 each on April 30, 2024, on the stock exchanges. In the current calendar year 2024, the stock has increased by 25% on the BSE, and in the financial year 2024-25 (FY25), it has risen by 6.5%. In contrast, the S&P BSE Sensex has only gone up by about 2% in CY24.

What Brokerage Experts Predict

According to Nomura, SBI’s net profit for the fourth quarter is predicted to decline by 21% compared to the previous year, but it is expected to increase by 44% compared to the previous quarter, reaching Rs 13,200 crore.

BNP Paribas, a financial institution, forecasts a net profit of Rs 12,553.5 crore for the fourth quarter of the fiscal year 2024. This represents a decrease of approximately 25 percent compared to the previous year, but a significant increase of 36 percent from the previous quarter.

According to this brokerage firm, Prabhudas Lilladher, they are providing a very conservative estimate for the growth of Net Interest Income (NII). They predict that the NII will only increase by 0.6 percent quarter-on-quarter and decrease by 0.8 percent year-on-year, amounting to Rs 40,069.8 crore.

Kotak Institutional Equities (KIE) predicts a 22.4% decrease in operating profit compared to the previous year. This decline is attributed to the rise in operating expenses, which is expected to reach Rs 19,099.7 crore. KIE explains that the increase in expenses is mainly due to the impact of wage revision-related costs, resulting in a higher final settlement impact.