Bank of Baroda (BANKBARODA) Q4 02/03 earnings summary

Executive summary

• FY03 operating profit rose 31.1% to Rs.1,716.63 crore and net profit rose 41.6% to Rs.772.78 crore; cost control and lower net NPA ratio supported performance.

• Average business grew 10.5%; average advances increased 12.8% and retail credit grew 55.1%, reaching 8.8% of domestic advances.

• Strategic focus shifted toward customer-led, technology-enabled universal financial services, with a corporate motto of “Fast Track Growth With Profitability.”

Financial highlights

• Total income increased 5.9% YoY while total expenses rose 0.1%; interest expenses declined 2.0%.

• Global deposits stood at Rs.66,366.37 crore, up 7.4%; advances were Rs.35,348.08 crore and investments Rs.30,179.38 crore at March 2003.

• Average investments grew 15.4%; outstanding investments rose 26.6% YoY. Savings deposits grew 16.9%, and savings plus current deposits represented 33.7% of total deposits.

• Consolidated profit attributable to the group was Rs.822.51 crore; consolidated EPS was Rs.28.23 for FY03.

Outlook and guidance

• FY04 priorities center on fast-track growth with profitability, strengthening customers, financials, processes and human resources.

• Normal monsoon expectations, infrastructure spending and stronger corporate and retail credit demand were expected to support lending; interest rates were forecast to stabilize near current levels with a softer bias.

• Computerization was targeted to reach 100% by December 2004; Core Banking Solution pilots and selection of a system integrator were underway.