HDFC Bank (HDFCBANK) Q4 99/00 earnings summary

Executive summary

• FY00 net profit rose 45.7% to Rs 120.04 crore; EPS increased to Rs 5.93 from Rs 4.12.

• Times Bank amalgamation, effective 26 Feb 2000, expanded the network to 111 outlets and geographic reach to 34 cities; year-on-year comparisons are not directly comparable.

Financial highlights

• Total income was Rs 805.22 crore; net profit was Rs 120.04 crore versus Rs 82.40 crore in FY99.

• Net revenues rose 100.5% to Rs 430.94 crore; operating expenses fell to 36.3% of net revenues from 41.5%.

• Deposits increased 189% to Rs 8,428 crore; advances rose 140% to Rs 3,362 crore; customer assets grew 125% to Rs 4,442 crore.

• Proposed dividend increased to 16% from 13%, balancing shareholder returns with capital retention for investment and capital adequacy.

Outlook and guidance

• Middle-market exposure was ~35% of the combined corporate portfolio, with a target to reduce it to ~25% over the next 12 months.

• Expanded branches, customer base, products and brand were cited as supporting further retail growth; capital-markets services were positioned for growth.

• Growth priorities included web-enabling core businesses and leveraging internet technology across business lines.