1Q27 – One-offs cloud earnings; underlying RoA remains resilient

Research evidence excerpt

1Q27 – One-offs cloud earnings; underlying RoA remains resilient

South Asia Financials Coverage Cluster

Investment rating Company BofA Ticker Bloomberg symbol Analyst

Axis Bank XLIRF AXSB IN Madhur Sharma

Bajaj Housing Finance XBACF BAJAJHFL IN Pujita Pasumarthi

HDB Financial Services XHFEF HDBFS IN Pujita Pasumarthi

HDFC Asset Management Company Limited XJARF HDFCAMC IN Pujita Pasumarthi

IDFC First Bank XQUFF IDFCFB IN Madhur Sharma

IPRU AMC XMFCF ICICIAMC IN Pujita Pasumarthi

Mahindra Finance XGDAF MMFS IN Pujita Pasumarthi

REC XULEF RECL IN Pujita Pasumarthi

Singapore Exchange SPXCF SGX SP Sukriti Bansal

Union Bank Of India UBOIF UNBK IN Madhur Sharma

Union Bank of the Philippines UBOPF UBP PM Julian Roxas

UNDERPERFORM

Bangkok Bank BKKLF BBL TB Sarachada Sornsong

Bank Rakyat Indonesia BKRKF BBRI IJ Sukriti Bansal

Federal Bank XMTRF FB IN Madhur Sharma

Indusind Bank IDUBF IIB IN Madhur Sharma

Maybank MLYNF MAY MK Aiden Chionh

Punjab National Bank XQGRF PNB IN Madhur Sharma

RBL Bank XKITF RBK IN Madhur Sharma

SBI Cards XLJGF SBICARD IN Pujita Pasumarthi

Tisco Financial Group XTXGF TISCO TB Sarachada Sornsong

UTI Asset Management Company XUTTF UTIAM IN Pujita Pasumarthi

iQmethod SM Measures Definitions

Business Performance Numerator Denominator

Return On Capital Employed NOPAT = (EBIT + Interest Income) × (1 − Tax Rate) + Goodwill Amortization Total Assets − Current Liabilities + ST Debt + Accumulated Goodwill

Amortization

Return On Equity Net Income Shareholders’ Equity

Operating Margin Operating Profit Sales

Earnings Growth Expected 5 Year CAGR From Latest Actual N/A

Free Cash Flow Cash Flow From Operations − Total Capex N/A

Quality of Earnings Numerator Denominator

Cash Realization Ratio Cash Flow From Operations Net Income

Asset Replacement Ratio Capex Depreciation