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

Executive summary

• FY2018-19 operating profit rose 13.35% to ₹8,092 crore; net loss narrowed to ₹5,547 crore from ₹6,044 crore YoY.

• Q4 FY2018-19 returned to net profit of ₹252 crore versus a ₹3,969 crore loss in Q4 FY2017-18; Q4 operating profit increased to ₹2,303 crore from ₹1,172 crore.

• PCA exit took effect January 31, 2019; NIM, NPA ratios and CRAR improved during FY19.

Financial highlights

• Net interest income increased 29.99% to ₹13,658 crore; non-interest income declined 10.49% to ₹5,132 crore YoY.

• Operating expenses rose 17.54% to ₹10,697 crore and provisions/contingencies increased 3.46% to ₹13,639 crore YoY.

• Standalone net loss was ₹5,547 crore versus ₹6,044 crore in FY18; EPS improved to -₹29.79 from -₹52.55.

• Domestic gross advances grew 11.80% to ₹328,137 crore; total domestic deposits were nearly flat at ₹421,783 crore, up 0.14% YoY.

• Global business rose 0.77% to ₹903,723 crore; overseas business declined 15.56% to ₹153,803 crore as overseas exposure was rationalized.

Outlook and guidance

• Expected resolution of large IBC accounts was cited as a potential further support to financial strength in FY2020.

• Medium- and long-term priorities: NPA management and credit monitoring, lower-cost CASA growth, retail portfolio rebalancing, branch/ATM rationalization, non-core asset monetization and expense control.

• Strategy emphasized RAM lending growth, lower corporate concentration, digitization, customer service and operating-cost reduction.