UCO Bank (UCOBANK) Q4 10/11 earnings summary

Executive summary

• FY11 global business grew 19.46% to ₹245,838 crore; deposits rose 18.68% and advances 20.62%, crossing ₹1 lakh crore.

• Operating profit rose 58% to ₹2,694.96 crore, while net profit fell 10.44% to ₹906.54 crore, mainly due to employee and NPA provisions.

Financial highlights

• Interest income was ₹11,370.80 crore and interest expense ₹7,525.89 crore; net interest income reached ₹3,845 crore, up 65% YoY.

• Total income rose to ₹12,296.21 crore from ₹10,492.25 crore; operating expenses increased to ₹2,075.37 crore from ₹1,584.42 crore.

• Net profit was ₹906.54 crore versus ₹1,012.19 crore; EPS was ₹14.29 versus ₹17.47.

• Deposits reached ₹145,277.60 crore and advances ₹99,070.81 crore; total assets were ₹163,398.45 crore at 31 Mar 2011.

Outlook and guidance

• FY12 real GDP growth baseline was ~8%, assuming normal monsoon and crude oil averaging $110/barrel; WPI inflation was projected at 6% by Mar 2012, with upward bias.

• 2012–16 plan targeted 3% market share, technology-led growth, branch and ATM expansion, stronger customer service, overseas expansion and workforce skill changes.

• High oil and commodity prices, persistent inflation and monetary tightening were expected to moderate growth and business expectations; strong credit demand and normal monsoon were potential supports.