Yes Bank (YESBANK) Q4 06/07 earnings summary

Executive summary

• FY 2006-07 net revenues rose 98% YoY to Rs. 3,659 million; net profit increased 71% to Rs. 944 million, with strong growth across lending, deposits and fee income.

• Operations expanded to 40 branches across 35 locations; total assets grew 167% to Rs. 111,034 million, while NPAs remained nil at March 31, 2007.

Financial highlights

• Net interest income increased 94% to Rs. 1,713 million; non-interest income rose 100% to Rs. 1,946 million, contributing 53.17% of net revenues.

• Operating profit grew 74% to Rs. 1,724 million; profit before tax was Rs. 1,437 million and net profit was Rs. 944 million, versus Rs. 553 million in FY 2005-06.

• Advances rose 161% to Rs. 62,897 million and deposits grew 182% to Rs. 82,204 million; total assets increased 167% to Rs. 111,034 million.

• Operating expenses increased 125% to Rs. 1,935 million, reflecting expansion in branches, technology and staffing; employee costs were Rs. 1,175 million.

Outlook and guidance

• FY 2007-08 Indian GDP growth was expected at ~8.5%, with scheduled commercial bank credit growth forecast at 23-25%.

• Profitable growth and achievement of aggressive targets remained the stated priorities; 20 branches were planned to bring the network to 60 by August 2007.

• A 24×7 customer call-in centre with capacity for over 450 executives was planned for launch by November 2007.