Yes Bank (YESBANK) Q4 08/09 earnings summary

Executive summary

• FY08/09 net revenues rose 36.9% YoY to Rs 9,462 million; net profit increased 51.9% to Rs 3,038 million amid a difficult economic environment.

• Total assets grew 34.8% to Rs 229,008 million; advances rose 31.5% to Rs 124,031 million and deposits increased 21.8% to Rs 161,694 million.

Financial highlights

• Net interest income grew 51.8% YoY to Rs 5,112 million; non-interest income rose 22.7% to Rs 4,350 million.

• Operating profit increased 50.7% to Rs 5,277 million; PBT rose 52.0% to Rs 4,659 million. Operating expenses increased 22.7% to Rs 4,185 million.

• Net profit was Rs 3,038 million versus Rs 2,000 million in FY07/08; effective tax rate was 34.8%.

• Investments grew 39.7% YoY to Rs 71,170 million; borrowings increased 122.0% to Rs 21,891 million.

Outlook and guidance

• GDP growth was forecast at 5.8–6.0% for FY09/10, with recovery expected from October 2009 as fiscal and monetary stimulus takes effect.

• Growth was expected to moderate further in H1 FY09/10; softer commodity prices, resilient rural demand and policy stimulus were cited as supports for later recovery.