Bank of India (BANKINDIA) Q4 02/03 earnings summary

Executive summary

• FY03 operating profit reached a record Rs.2,030 crore, up 43.76% YoY; net profit rose 68.44% to a record Rs.851 crore.

• A 30% dividend was recommended; EPS was Rs.17.43 and book value per share Rs.68.78.

Financial highlights

• Net interest income rose 11.54% to Rs.2,036.21 crore; non-interest income increased 46.97% to Rs.1,642.37 crore.

• Interest earned was Rs.5,928.22 crore vs Rs.5,594.49 crore; operating expenses were Rs.1,648.58 crore vs Rs.1,530.89 crore.

• Provisions and contingencies totaled Rs.1,179 crore vs Rs.903.23 crore; net profit was Rs.851 crore vs Rs.505.22 crore.

• Treasury operations contributed significantly to non-interest income; other income included Rs.857.54 crore net profit on investment sales vs Rs.427.04 crore.

Outlook and guidance

• FY04 outlook was positive, with expectations of improved results and continued shareholder-value growth; sustaining FY03 performance amid competition and a changing operating environment remained a challenge.

• Domestic plans targeted 20 new branches and 15 extension counters in FY04, plus two branches in Nairobi, Kenya.

• RBI’s FY04 GDP growth estimate was 6%, conditional on a forecast of 96% rainfall in the coming monsoon.