UCO Bank (UCOBANK) Q4 09/10 earnings summary

Executive summary

• FY09-10 net profit rose 81.49% YoY to ₹1,012.19 crore, supported by lower funding costs and improved yield on advances.

• Global business grew 21.13% YoY to ₹205,787.03 crore; deposits rose 22.14% to ₹122,415.55 crore and advances increased 19.67% to ₹83,371.48 crore.

• Gross NPA ratio improved to 1.99% from 2.21%; Basel II CRAR reached 13.21%, up from 11.93%.

Financial highlights

• Total income rose 14.78% to ₹10,492.25 crore; interest income increased 17.30% to ₹9,526.32 crore, while total expenditure rose 10.67% to ₹8,786.62 crore.

• Net interest income was ₹2,324 crore versus ₹1,644 crore; operating profit reached ₹1,706 crore versus ₹1,202 crore.

• Net profit was ₹1,012.19 crore versus ₹557.72 crore; EPS increased to ₹18.42 from ₹7.63.

• Deposits reached ₹122,415.55 crore and advances ₹83,371.48 crore at 31 March 2010; total assets were ₹137,319.49 crore.

Outlook and guidance

• Strategy calls for measured growth aligned with asset quality and profitability, focused on mid-corporate, retail and small-enterprise lending, low-cost deposits and active recovery.

• Planned technology initiatives include transactional GPRS mobile banking, biometric ATMs, online share trading, railway e-ticketing kiosks and self-service deposit and passbook machines.

• RBI projected FY10-11 money supply growth of 17%, deposits growth of 18% and non-food credit growth of 20%.