Yes Bank (YESBANK) Q4 11/12 earnings summary

Executive summary

• FY12 net revenues rose 32.2% to ₹2,472.7 crore and net profit rose 34.4% to ₹977 crore; total assets grew 24.8% to ₹73,662.1 crore.

• Growth came alongside rapid branch expansion and deposit repricing; CASA ratio increased to 15.0% from 10.3%, while net interest margin eased to 2.8% from 2.9%.

Financial highlights

• Net interest income ₹1,615.6 crore, up 29.6% YoY; non-interest income ₹857.1 crore, up 37.5%; net revenues ₹2,472.7 crore, up 32.2%.

• Operating profit ₹1,540.2 crore, up 29.4%; profit before tax ₹1,450 crore, up 32.8%; net profit ₹977 crore, up 34.4%.

• Advances increased 10.5% to ₹37,988.6 crore; deposits rose 7.0% to ₹49,151.7 crore; borrowings reached ₹14,156.5 crore.

• Savings deposits increased 206.4% and current deposits 24.3%; CASA balances grew 55.6% to ₹7,392.1 crore.

• Operating expenses rose 37.2% to ₹932.5 crore amid expansion; provisions and contingencies declined 8.1% to ₹90.2 crore.

Outlook and guidance

• FY13 GDP growth forecast at 7.0–7.5% and WPI inflation at 6–7%; growth outlook remained exposed to high global commodity prices and policy execution.

• Long-term Version 2.0 targets for March 2015: 900 branches, 2,000 ATMs, ₹1,25,000 crore deposits, ₹1,00,000 crore loans and ₹1,50,000 crore balance sheet.

• Strategic focus on granular deposits and CASA, with a long-term target of CASA at 30% of deposits; branch build-out target raised to 900 by March 2015.

• FY13 retail asset expansion planned, including construction equipment, tractor, hospitality, education and healthcare equipment, two-wheeler and gold-backed loans.