The South Indian Bank (SOUTHBANK) Q4 04/05 earnings summary

Executive summary

• FY05 net profit fell to ₹8.70 crore from ₹84.33 crore, mainly due to lower treasury gains, ₹116.05 crore investment depreciation provision and ₹18 crore wage-revision provision.

• Business expanded: deposits reached ₹8,492.31 crore and advances ₹5,365.26 crore; branch, ATM and core-banking networks also grew.

Financial highlights

• Operating profit was ₹184.64 crore vs ₹252.25 crore; gross profit before depreciation, taxes and provisions was ₹184.64 crore.

• Net profit was ₹8.70 crore vs ₹84.33 crore; no dividend was recommended for FY05.

• Interest earned rose to ₹709.00 crore from ₹680.82 crore; other income declined to ₹102.38 crore from ₹234.61 crore.

• Provisions and contingencies were ₹163.53 crore vs ₹157.65 crore; operating expenses were ₹187.08 crore vs ₹193.40 crore.

Outlook and guidance

• Strategic cost control, lower average borrowing costs, automation, measured treasury activity and new products were expected to support improved performance in FY06.

• Investment-depreciation provisioning was expected to remain manageable in FY06 following treasury initiatives.

• Plans included further CBS expansion, new branches in uncovered areas and improved operational efficiency through technology.