The South Indian Bank (SOUTHBANK) Q4 03/04 earnings summary

Executive summary

• Total business reached ₹12,477 crore in FY 2003-04; net profit rose 16.59% YoY to ₹84.33 crore.

• Deposits grew 21% to ₹8,280 crore and advances rose to ₹4,197 crore; net worth increased to ₹394.89 crore.

Financial highlights

• Total income was ₹915.43 crore vs ₹837.73 crore; other income increased to ₹235.14 crore from ₹180.42 crore.

• Operating profit before provisions and contingencies rose 11.78% to ₹241.98 crore; expenses increased to ₹673.45 crore from ₹621.26 crore.

• Net profit was ₹84.33 crore vs ₹72.33 crore; EPS rose to ₹23.58 from ₹20.23.

• Investment portfolio increased to ₹3,962 crore from ₹2,999 crore; investment income rose to ₹309 crore from ₹262 crore.

Outlook and guidance

• FY 2004-05 GDP growth was projected at 6.5%-7%, with point-to-point inflation expected at 5%-6%.

• Management expected a growing economy to support better results and shareholder value; customer care and service quality remained priorities.

• Lower interest rates pressured NRI deposit growth and investment yields; new remittance arrangements were expected to support NRI fund inflows.