RBL Bank (RBLBANK) Q4 14/15 earnings summary

Executive summary

• FY15 business expanded rapidly: deposits and advances each grew ~47% YoY; net total income rose 59.27% and net profit increased to ₹207.17 crore. Gross and net NPA ratios remained below 1%.

• Vision 2020 priorities: leadership in target segments and geographies, supported by capital strength, technology investment, talent and customer-centric service.

Financial highlights

• Net total income was ₹959.77 crore, up 59.27% YoY; net interest income reached ₹556.36 crore, up 62.86%, and other income was ₹403.41 crore, up 54.58%.

• Net profit rose 123.56% to ₹207.17 crore from ₹92.67 crore; excluding FY14’s ₹40.89 crore post-tax RBS acquisition charge, FY15 growth was 55.11%.

• Net advances increased 46.92% to ₹14,449.83 crore; deposits grew 47.43% to ₹17,099.25 crore. Total assets reached ₹27,104.67 crore.

• Operating expenses increased 41.46% to ₹599.65 crore; provisions and contingencies rose 77.78% to ₹152.95 crore.

Outlook and guidance

• Vision 2020 calls for a strong capital base, leading technology, empowered talent and sharper execution to pursue growth in selected segments and geographies.

• Directors expected sustained business growth in the coming year; FY16 credit demand was expected to improve with a more favourable interest-rate environment and stable political conditions.

• Plans included growing secured lending through lower-cost direct and digital channels, expanding unsecured business lending into new geographies, and deepening existing markets.