UCO Bank (UCOBANK) Q4 03/04 earnings summary

Executive summary

• FY2003-04 net profit rose to ₹435.42 crore from ₹207.49 crore; operating profit reached ₹948.40 crore, supported by higher net interest income and lower staff costs.

• Total business grew 26.42% to ₹60,587.47 crore; deposits increased 25.21% and advances 28.70% YoY.

• Gross and net NPA ratios improved to 6.93% and 3.65%, respectively; capital adequacy was 11.88% at March 31, 2004.

Financial highlights

• Net interest income rose to ₹1,194.59 crore from ₹882.02 crore; interest earned was ₹3,096.28 crore and other income ₹625.27 crore.

• Net profit was ₹435.42 crore versus ₹207.49 crore; operating profit was ₹948.40 crore versus ₹624.04 crore.

• Deposits reached ₹39,244.26 crore and advances ₹21,343.21 crore at March 31, 2004; total assets were ₹43,797.82 crore.

• Profitability absorbed ₹48 crore pension provision, ₹37.39 crore gratuity provision, ₹2.49 crore contingent-liability provision and ₹132 crore VRS amortization.

Outlook and guidance

• FY2004-05 net profit target: ₹550 crore; target net NPA ratio: below 2%.

• Priorities include higher business growth, stronger net interest margin and non-interest income, and covering operating expenses through non-interest income within three years.

• Core banking rollout was planned across 200 branches in FY2004-05; coverage of the top 200 branches was targeted by 2006-07.

• Plans included expanding foreign exchange business, opening a Malaysia representative office, and facilitating India-China border trade through Sikkim branches.