RBL Bank (RBLBANK) Q4 12/13 earnings summary

Executive summary

• FY13 net profit rose 40.68% YoY to ₹92.47 crore as net total income increased 51.22% to ₹383.99 crore; gross and net NPA ratios improved to 0.40% and 0.11%.

• Deposits grew 75.99% to ₹8,340.52 crore and net advances rose 54.30% to ₹6,376.21 crore, alongside continued investment in branches, technology and operating capacity.

Financial highlights

• Net interest income increased 37.88% to ₹257.55 crore; other income rose 88.35% to ₹126.44 crore, taking net total income to ₹383.99 crore.

• Operating expenses increased 63.41% to ₹227.30 crore and provisions and contingencies rose 30.79% to ₹64.22 crore; net profit reached ₹92.47 crore, up 40.68%.

• FY13 EPS was ₹4.19 basic and ₹4.16 diluted, versus ₹3.06 and ₹3.04 in FY12; book value per share rose to ₹63.03 from ₹52.62.

Outlook and guidance

• Directors expected sustained business growth in FY14 while continuing transformation initiatives; priorities included earnings growth, productivity, CASA build-up, customer centricity and strong balance-sheet quality.

• FY14 economic activity was expected to improve modestly, with a pick-up anticipated in H2; a cautious approach to growth and customer selection, cost containment and productivity were emphasized.