The Federal Bank (FEDERALBNK) Q4 04/05 earnings summary

Executive summary

• FY04/05 operating profit excluding securities trading gains rose 29.64% to Rs.341 crore; NIM improved to 3.15%, while net profit fell to Rs.90.09 crore from Rs.136.30 crore.

• Lower treasury gains, securities depreciation and higher provisions offset stronger interest income and fee-based income.

Financial highlights

• Total income declined to Rs.1,403.01 crore from Rs.1,489.92 crore; net interest income rose to Rs.502.28 crore from Rs.421.77 crore, while net revenue eased to Rs.714.26 crore from Rs.719.63 crore.

• Operating expenses increased 10.95% to Rs.313.86 crore; net profit was Rs.90.09 crore versus Rs.136.30 crore, and basic EPS was Rs.13.73 versus Rs.20.88.

• Deposits grew 12.73% to Rs.15,192.88 crore and advances grew 14.57% to Rs.8,822.59 crore; total assets rose 11.29% to Rs.16,820.96 crore.

Outlook and guidance

• Strategy emphasized fee-income growth, technology adoption, wider branch and ATM reach, stronger risk controls and capital-base planning; management expected performance to improve.

• Expansion plans targeted broader geographic presence and customer reach, with continued focus on human-resource development and modern technology.