RBL Bank (RBLBANK) Q4 13/14 earnings summary

Executive summary

• FY14 net total income rose 56.93% to ₹602.60 crore; reported net profit was ₹92.67 crore after a one-time RBS acquisition expense, versus adjusted profit of ₹133.56 crore.

• Transformation accelerated through the RBS portfolio acquisition, a third capital raise, geographic expansion and a refreshed RBL Bank identity.

Financial highlights

• Net interest income increased 32.65% to ₹341.63 crore; other income rose 106.40% to ₹260.97 crore.

• Deposits grew 39.06% to ₹11,598.60 crore and net advances rose 54.25% to ₹9,835.05 crore; total assets reached ₹18,198 crore.

• Operating expenses were ₹423.90 crore, up 86.49%; provisions and contingencies increased 33.96% to ₹86.03 crore.

Outlook and guidance

• Directors expected sustained business growth in FY15, citing expectations that growth momentum would recover under the new government.

• FY15 GDP growth was projected at ~5.5% conditional on measures to boost infrastructure investment, reform land and labour, and strengthen the financial system.

• The next phase targeted greater scale, profitability and market relevance while maintaining risk, balance-sheet strength and governance focus.