Bank of India (BANKINDIA) Q4 03/04 earnings summary

Executive summary

• FY 2003-04 net profit reached a record ₹1,008.32 crore, up 18.49% YoY; operating profit rose 10.44% to ₹2,241.87 crore.

• Global business grew 9.1% to ₹1,18,500 crore; deposits rose 10.8% to ₹71,003 crore, while gross advances increased 6.8% to ₹47,497 crore.

• EPS was ₹20.69; a 30% dividend was declared, comprising 20% interim and 10% final payout.

Financial highlights

• Net interest income increased 8.11% to ₹2,201.43 crore; non-interest income rose 9.11% to ₹1,791.99 crore.

• Operating expenses rose 6.25% to ₹1,751.55 crore; provisions and contingencies increased 4.63% to ₹1,233.55 crore.

• Interest earned was ₹5,795.90 crore versus ₹5,928.22 crore; total income was ₹7,587.90 crore versus ₹7,570.59 crore.

• Forex income rose 49.39% to ₹212.73 crore; bond-trading income increased to ₹53 crore from ₹38 crore.

• Net worth increased to ₹3,835.34 crore from ₹3,357.21 crore; book value per share rose to ₹78.57 from ₹68.78.

Outlook and guidance

• Priorities include growing low-cost deposits, expanding retail credit, lifting fee and non-fund income, and increasing global core-business activity.

• Core banking rollout was planned for 125 branches by March 2005 and 750 branches within three years; internet banking was to extend to 707 networked branches.

• A challenging business plan targets higher volumes, improved portfolio quality and attractive profit growth amid competition and rapid market change.

• Overseas expansion options under review included branches, representative offices or joint ventures in South America, Africa and SAARC countries.