The South Indian Bank (SOUTHBANK) Q4 14/15 earnings summary

Executive summary

• FY15 gross business rose to ₹89,638.14 crore from ₹83,894.19 crore; deposit growth offset subdued advances growth of 3.63%.

• Net profit fell to ₹307.20 crore from ₹507.50 crore, mainly on higher provisioning for loan losses, FITL, restructured assets and employee benefits.

Financial highlights

• Net operating income increased 5.44% to ₹1,863.30 crore; non-interest income grew 34.90% to ₹497.07 crore.

• Operating profit declined to ₹816.26 crore from ₹884.35 crore; net profit was ₹307.20 crore vs ₹507.50 crore.

• Interest earned was ₹5,286.22 crore vs ₹5,015.06 crore; other income was ₹497.07 crore vs ₹368.46 crore.

• Provisions and contingencies rose to ₹574.80 crore from ₹376.84 crore, including ₹223.58 crore for NPAs/NPIs and ₹86.82 crore for FITL.

• Basic EPS was ₹2.28 vs ₹3.78; diluted EPS was ₹2.27 vs ₹3.77.

Outlook and guidance

• FY16 plan: open up to 50 new offices and 150 ATMs; business projection of ₹1,07,500 crore and capital adequacy target above 12%.

• Additional equity issuance of up to ₹20 crore was proposed to support business growth and maintain capitalization; timing, size and structure subject to Board decision and approvals.

• Proposed private-placement debt securities issuance of up to ₹1,000 crore; shareholders were also asked to raise the overall borrowing limit to ₹6,000 crore.