Bank of India (BANKINDIA) Q4 18/19 earnings summary

Executive summary

• Returned to quarterly profitability with Q4 FY19 net profit of ₹252 crore, while FY19 ended with a net loss of ₹5,547 crore; exited PCA on Jan. 31, 2019.

• Asset quality and capital indicators improved, supported by government capital infusion, employee share purchases and continued recovery efforts.

Financial highlights

• FY19 operating profit rose 13.35% YoY to ₹8,092 crore; net loss narrowed from ₹6,044 crore to ₹5,547 crore.

• Net interest income increased 29.99% to ₹13,658 crore; non-interest income fell 10.49% to ₹5,132 crore, while operating expenses rose 17.54% to ₹10,697 crore.

• Q4 operating profit increased to ₹2,303 crore from ₹1,172 crore; Q4 net profit swung to ₹252 crore from a ₹3,969 crore loss.

• Global business rose 0.77% to ₹903,723 crore; global deposits were ₹520,862 crore and advances ₹382,860 crore at Mar. 31, 2019.

Outlook and guidance

• Expected resolution of large IBC/NCLT accounts was identified as a factor that could further strengthen FY20 financial position.

• Medium- and long-term priorities: improve NPA management and credit monitoring, grow low-cost CASA, rebalance toward retail lending, rationalize branches/ATMs, monetize non-core assets and reduce operating costs.