Only Premium & Super Premium Cards Discussion

[FinGuru]

On a lighter note, , looks like Axis Bank could have waited a bit more & continued to offer benefits on Reserve & Magnus. A whopping 41% growth in profits vs last year. Net interest margins are stable too. Increase in marketing spends (the line item where the perceived hit is taken) is also in line. Attached is the summary of financial results.

 

[PiperatGatesofDawn]

Yeah but this 41% growth is probably 100% Citibank isn't it? So there potentially could be an real decline...

Also what you're missing here is the debt/expenditure column.

 

[FinGuru]

Yeah but this 41% growth is probably 100% Citibank isn't it? So there potentially could be an real decline...

Also what you're missing here is the debt/expenditure column.

No. Citibank's acquisition is yet to become bottom-line accretive.In fact, axis booked a loss last quarter owing to integration costs and provisions. This quarter too the bank had to provide.

 

[NikTravelEnthusiast]

I am not an financial expert. But I have a brain enough to say that Axis has mismanaged the entire Magnus CC,right from the beginning.

They are not new in the industry. Multi billion dollar company must have a proper management team and plans. They really screwed up this time.

This can lead to huge customer dis- satisfaction. I myself was considering to increase my indulgences of Axis banks various other offering.I am very new to Axis. Huge new customer base is disheartened. I decided not to have any sort of connection with Axis now.
Many might think the same way.

I am sharing my views.

 

[BVCBVC is verified member.]

I am not an financial expert. But I have a brain enough to say that Axis has mismanaged the entire Magnus CC,right from the beginning.

They are not new in the industry. Multi billion dollar company must have a proper management team and plans. They really screwed up this time.

This can lead to huge customer dis- satisfaction. I myself was considering to increase my indulgences of Axis banks various other offering.I am very new to Axis. Huge new customer base is disheartened. I decided not to have any sort of connection with Axis now.
Many might think the same way.

I am sharing my views.

I do really agree. Same was with me. I was thinking about transferring my Demat accounts and other investment opportunities to Axis Bank with the experience I got with Magnus. Suddenly they lost the trust factor and I am in no mood to shift them to Axis.

I am already a Citi Customer and I've a double blow now.

 

[Deleted member 11974]

On a lighter note, , looks like Axis Bank could have waited a bit more & continued to offer benefits on Reserve & Magnus. A whopping 41% growth in profits vs last year. Net interest margins are stable too. Increase in marketing spends (the line item where the perceived hit is taken) is also in line. Attached is the summary of financial results.

View attachment 23952

the whooping 41% mainly came from the interest rate hikes that happened from a year ago
home loans,personal loans car loans and whatever they have helped up those numbers
credit card spends have provided a very miniscule impact on the numbers.

 

[FinGuru]

credit card spends have provided a very miniscule impact on the numbers

exactly.

 

[PiperatGatesofDawn]

No. Citibank's acquisition is yet to become bottom-line accretive.In fact, axis booked a loss last quarter owing to integration costs and provisions. This quarter too the bank had to provide.

The acquisition happened 1st March or 1st April 2023. So why isn't those numbers going to show up in Axis' Q1F24? Unless they are not following the fiscal calendar???

 

[CARDBITRAGE]

On a lighter note, , looks like Axis Bank could have waited a bit more & continued to offer benefits on Reserve & Magnus. A whopping 41% growth in profits vs last year. Net interest margins are stable too. Increase in marketing spends (the line item where the perceived hit is taken) is also in line. Attached is the summary of financial results.

View attachment 23952

Axis is watering the flowers and cutting the weeds now. Looks like the FY end review opened eyes to the disaster. Growth in core business won’t justify bleeding money in the subsidiaries. Magnus and Reserve were poorly designed in many ways, opening doors for exploitation. Also the growth in profits you see here is mainly attributed to liquidity tightening by the reserve bank. This is the case with all banks during rate hikes.
The guys at Axis are hoping for respite from the loss by converting some of their HNI card users to Burgandy/Private banking to help in cross-selling other products from their stable. If this also back fires, they are going to be chopping heads. XD

 

[CARDBITRAGE]

The acquisition happened 1st March or 1st April 2023. So why isn't those numbers going to show up in Axis' Q1F24? Unless they are not following the fiscal calendar???

I think it was declared in their consolidated financial statements in Q423 results.
<Details on acquisition>

 

[thanix]

You have considered only profit. While analysing P&L, one should check the expenses also. Staff expenses rose by 23% which I guess is mainly because of Citi employees absorption. There is very less possibility on cost actions here till acquisition is Fully complete.

Operating expenses also have grown by 29% which is where the analysis and cost actions will be. It will be good to watch in the upcoming quarters. However credit card expenses may be a small part of it. Does anyone know Axis structure and provides vertical wise P&L? I don't own shares and didn't looked into it.

 

[Deleted member 11974]

The acquisition happened 1st March or 1st April 2023. So why isn't those numbers going to show up in Axis' Q1F24? Unless they are not following the fiscal calendar???

they showed it in the previous qtr a loss of 11k crs

 

[Deleted member 11974]

You have considered only profit. While analysing P&L, one should check the expenses also. Staff expenses rose by 23% which I guess is mainly because of Citi employees absorption. There is very less possibility on cost actions here till acquisition is Fully complete.

Operating expenses also have grown by 29% which is where the analysis and cost actions will be. It will be good to watch in the upcoming quarters. However credit card expenses may be a small part of it. Does anyone know Axis structure and provides vertical wise P&L? I don't own shares and didn't looked into it.

check on ticker tape or money control pro or axis bank website

 

[FinGuru]

The acquisition happened 1st March or 1st April 2023. So why isn't those numbers going to show up in Axis' Q1F24? Unless they are not following the fiscal calendar???

I said it's not bottom-line accretive, just yet. Also, check q4 results to understand the initial impact of Citi trans.

 

[Rahul92]

They are also " Making hay , while the sun is still shining"

 

[beingmohit]

They are also " Making hay , while the sun is still shining"

Yeah, but they didn't really 'make hay'. They exposed their sub-par tech, poor customer support and erratic management.
People will only opt for Axis cards if they offer unreal returns.

 

[Rahul92]

Yeah, but they didn't really 'make hay'. They exposed their sub-par tech, poor customer support and erratic management.
People will only opt for Axis cards if they offer unreal returns.

So , the lesson is -
" quickly make hay when the things seems too good to be true ". And everyone , atleast here , knew it's going to happen
Anyways , it's as-is

 

[Salvo08]

On a lighter note, , looks like Axis Bank could have waited a bit more & continued to offer benefits on Reserve & Magnus. A whopping 41% growth in profits vs last year. Net interest margins are stable too. Increase in marketing spends (the line item where the perceived hit is taken) is also in line. Attached is the summary of financial results.

View attachment 23952

Ya agree but I think they pulled the plug on the 'perceived' misuse of the card. They tried tightening the noose by not including Rent expenditure in monthly milestone but 25K was obviously unsustainable. Now they have dangled a carrot by offering 5:4 conversion ratio to Burgundy customers to further increase deposits in the bank.

 

[Salvo08]

Yeah but this 41% growth is probably 100% Citibank isn't it? So there potentially could be an real decline...

Also what you're missing here is the debt/expenditure column.

Citi has been a bad acquisition for the bank ill now. Let's see how they take it ahead.

 

[Salvo08]

they showed it in the previous qtr a loss of 11k crs

That was primarily due to Citi Bank acqusition.