The Federal Bank (FEDERALBNK) Q4 99/00 earnings summary

Executive summary

• FY00 marked a recovery after a difficult prior year, with net profit of Rs.46.39 crore, total income above Rs.1,000 crore and capital adequacy at 11.33%.

• Consolidation and asset-liability management improved balance-sheet quality; net worth rose 12% to Rs.362 crore and book value per share reached Rs.167.

Financial highlights

• Total income was Rs.1,014.09 crore versus Rs.972.42 crore in FY99; net profit was Rs.46.39 crore, while provisions and contingencies were Rs.89.11 crore.

• Interest earned rose to Rs.881.79 crore from Rs.859.44 crore; interest expense fell to Rs.701.45 crore from Rs.771.57 crore.

• Other income increased to Rs.132.30 crore from Rs.112.98 crore, including Rs.34.01 crore net profit on investment sales.

• EPS was Rs.21.36; operating profit as a percentage of average working funds rose to 1.80% from 0.69%.

Outlook and guidance

• FedNet internet banking and e-commerce services, active in 19 selected branches, were planned for expansion to 150 branches during the current year.

• Any Branch Banking, then operating in Bangalore City, was planned for rollout to all metro branches during the current year.

• Recovery efforts were to continue with added specialist capacity; management reported a recovery campaign exceeding its FY00 cash target.