The Federal Bank (FEDERALBNK) Q4 08/09 earnings summary

Executive summary

• FY09 operating profit rose 58.64% to Rs. 1,259.78 crore and net profit increased 35.98% to Rs. 500.49 crore amid the global recession.

• Net worth reached Rs. 4,325.88 crore; NPA provision coverage was 87.34%, and Basel II CRAR stood at 20.22%.

Financial highlights

• Total income was Rs. 3,831.15 crore, up 31.64% YoY; net interest income rose 51.55% to Rs. 1,315.46 crore and other income grew 30.67% to Rs. 515.77 crore.

• Net revenue increased 44.99% to Rs. 1,831.23 crore; expenses rose 21.50% to Rs. 2,571.37 crore.

• Deposits grew 24.25% to Rs. 32,198.19 crore; advances rose 18.45% to Rs. 22,391.88 crore; total business reached Rs. 54,590 crore.

• Balance sheet size expanded 19.52% to Rs. 38,850.86 crore; investments were Rs. 12,118.97 crore.

Outlook and guidance

• Plans called for further branch openings in FY10, supported by 64 branch authorisations held at year-end.

• Distribution of life and general insurance and mutual funds was expected to contribute more revenue as stock-market activity revived.

• Industry projections for FY10 were scheduled commercial bank deposit growth of 18% and non-food credit expansion of 20%.

• Planned FY10 technology enhancements included online tax payments, corporate internet banking, payment gateway services and Visa-to-Visa card transfers.