HDFC Bank (HDFCBANK) Q4 02/03 earnings summary

Executive summary

• FY 2002-03 net profit rose 30.5% to Rs 387.6 crore; total income reached Rs 2,496.1 crore, while balance-sheet size grew 28% to Rs 30,424 crore.

• Expansion across wholesale, treasury and retail businesses accompanied stronger customer acquisition and wider branch, ATM and POS networks.

Financial highlights

• Net revenues rose 35.5% to Rs 1,304.1 crore: net interest income grew 32.1% and other income 42%.

• Net profit increased to Rs 387.6 crore from Rs 297 crore; profit before tax was Rs 570.85 crore versus Rs 425.38 crore.

• Interest income rose 18.8% to Rs 2,023 crore; interest expense increased 11% to Rs 1,192 crore.

• Deposits grew 27% to Rs 22,376 crore; advances rose 73% to Rs 11,755 crore, including retail advances growth of 140%.

• Proposed dividend increased to Rs 3 per share from Rs 2.50; basic EPS rose to Rs 13.75 from Rs 11.01.

Outlook and guidance

• Strategy emphasized disciplined market-share growth, technology-enabled service and cost control, asset quality, lower funding costs, and high earnings growth with low volatility.

• Proposed 30% dividend reflected healthy FY 2002-03 performance and a positive outlook; payment remained subject to RBI approval.