RBL Bank (RBLBANK) Q4 17/18 earnings summary

Executive summary

• FY18 delivered PAT of ₹635.09 crore, up 42.38% YoY, with net total income up 43.39% to ₹2,834.47 crore.

• Deposits rose 26.93% to ₹43,902.26 crore and net advances increased 36.74% to ₹40,267.84 crore.

• Growth remained broad-based, supported by stronger net interest income, fee income, credit cards and financial inclusion lending.

Financial highlights

• Net interest income increased 44.62% YoY to ₹1,766.28 crore; other income rose 41.40% to ₹1,068.19 crore.

• Net total income increased 43.39% to ₹2,834.47 crore; operating expenses rose 42.32% to ₹1,503.41 crore and provisions 46.72% to ₹695.98 crore.

• Core fee income grew 41% to ₹887 crore, driven by distribution, credit cards, client forex and general banking.

• Net worth reached ₹6,546.36 crore, up 54% YoY; total assets were ₹61,850.75 crore.

Outlook and guidance

• Vision 2020 targets advances growth of 30–35% CAGR, annual CASA-ratio gains of 0.75–1 percentage point, other income at one-third of net total income and cost/income of 51–52%.

• FY18 Vision 2020 measures included 37% advances growth, CASA of 24.32%, other income at 37.7% of net total income and a 53.04% cost/income ratio.

• FY18 was described as the halfway point in Vision 2020; management remained confident of meeting the published growth and operating targets.

• FY19 priorities included widening corporate reach, deepening client relationships, expanding commercial-banking sourcing and launching an upgraded mobile banking app.