The Karnataka Bank (KTKBANK) Q4 06/07 earnings summary

Executive summary

• FY07 business turnover reached ₹23,590.12 crore, up 12.15% YoY; total assets rose 8.49% to ₹16,222.52 crore.

• Advances expanded 22.60% to ₹9,552.68 crore, while deposits grew 6% to ₹14,037.44 crore; operating profit rose, but net profit was nearly flat.

Financial highlights

• Total income was ₹1,430.52 crore vs ₹1,184.84 crore; interest earned ₹1,256.25 crore vs ₹1,018.04 crore.

• Operating profit was ₹356.58 crore vs ₹328.29 crore; net profit was ₹177.03 crore vs ₹176.03 crore.

• Interest expense increased to ₹836.39 crore from ₹652.07 crore; provisions and contingencies rose to ₹179.55 crore from ₹152.26 crore.

• Other income was ₹174.27 crore vs ₹166.80 crore, including net profit on investment sales of ₹63.95 crore and net investment revaluation loss of ₹10.72 crore.

• Proposed dividend was 35%, totaling ₹42.47 crore; EPS was ₹14.60 vs ₹14.52.

Outlook and guidance

• FY08 target: total business turnover ₹28,500 crore, comprising deposits of ₹17,000 crore and advances of ₹11,500 crore.

• Planned network expansion to 430 branches and 150 own ATMs by March 2008, within a goal of 580 business units.

• Planned digital additions included online shopping payments, mobile top-ups, SMS alerts, utility payments, air-ticket booking and online share trading.