Bank of Baroda (BANKBARODA) Q4 07/08 earnings summary

Executive summary

• FY08 global business reached Rs 2,58,735.45 crore, up 24.07%; net profit rose 39.85% to Rs 1,435.52 crore, and all Government Statement of Intent targets were achieved.

• Global customer base reached 33 million; overseas operations contributed 20.0% of business and 23.79% of net profit.

Financial highlights

• Gross profit was Rs 3,028.55 crore and net profit Rs 1,435.52 crore, up 39.85% YoY; basic and diluted EPS increased to Rs 39.41 from Rs 28.18.

• Interest earned was Rs 11,813.48 crore and other income Rs 2,051.04 crore; total income reached Rs 13,864.51 crore versus Rs 10,385.88 crore in FY07.

• Deposits rose 21.71% to Rs 1,52,034.12 crore; advances rose 27.60% to Rs 1,06,701.33 crore. Domestic deposits grew 22.82% and domestic advances 25.63%.

• Proposed dividend was 80%, or Rs 8 per fully paid share; total dividend outgo, including tax, was Rs 340.94 crore.

Outlook and guidance

• FY09 priorities: protect NIM by increasing CASA, grow retail and SME business without compromising asset quality, lift fee income, control transaction costs and use technology to improve service.

• Targeted addition of 2.5–3.0 million quality customers in FY09 and subsequent years; planned five additional SME Loan Factories in FY09.

• Planned technology milestones included 1,919 domestic CBS branches by September 2008, integrated global treasury by December 2008 and regional back offices during H2 FY09.

• Overseas expansion plans included Canada, New Zealand, Russia, GCC markets and Mozambique, plus additional offices in China, Kenya, UAE and Oman.