UCO Bank (UCOBANK) Q4 02/03 earnings summary

Executive summary

• FY03 marked a sustained turnaround: the three-year restructuring plan was completed, net profit rose for a third consecutive year, and functional autonomy was granted.

• Global business reached Rs 47,926.63 crore, up 19.07% YoY; market share increased to 2.08% from 1.97%.

Financial highlights

• Total income was Rs 3,401.99 crore vs Rs 3,124.78 crore; operating profit rose to Rs 624.04 crore from Rs 475.98 crore.

• Net profit was Rs 207.49 crore vs Rs 164.52 crore; reported profit included a Rs 55.85 crore prior-year leave-encashment liability charge.

• Global deposits rose 16.74% to Rs 31,343.39 crore; global advances grew 23.73% to Rs 16,583.24 crore.

• Investment trading generated Rs 354.61 crore profit vs Rs 346.36 crore; forex exchange earnings were Rs 22.79 crore.

Outlook and guidance

• Target set for Rs 100,000 crore business by March 2007, supported by refreshed strategies and continued turnaround of loss-making branches.

• Maiden equity IPO planned for FY04; preparatory steps had begun.

• Technology roadmap covers 2003–07, with Rs 200 crore earmarked; WAN rollout across 222 branches, 34 regional offices and 7 head-office sites targeted for Sep–Oct 2003.

• Planned recruitment of 250 specialist officers annually in FY03–05, totaling 750, across IT, credit, forex and risk functions.