Tuesday, May 17, 2011
STATE BANK OF INDIA Q4 & FY 2011 RESULTS = PROVISIONS FOR GRATUITY ETC AFFECT PROFITS IN Q4 = GOOD FUTURE PERFORMANCES EXPECTED
State Bank of India
FY 2010-11 - STAND ALONE RESULTS
Operating Profit recorded a YOY growth of 38.29% in FY11 over FY10 - against a growt th of 2.26% recorded in FY10 over FY09.
Net Profit is lower by 9.84% in FY11 over FY10 against a growth of 0.49% in FY10 over FY 09 mainly due to higher pension, gratuity and loan loss provisions and standard assets provision on special home loan schemes.
FY11 Vs FY10
• NII increased by 37.41% in FY11 over FY10, against an increase of 13.41% in FY10 over FYY09.
• Driven by loan growth of 20.32%, interest income on advances has increased by 188.45% YOY against a growth of 9.11% in FY Y10.
• Growth in Interest expenses was contained at 3.27% mainly due to CASA deposits growth of 22.14%.
• Non Interest Income is up by 5.72% despite profit on sale of investments declining by Rs.1196 crores. Excluding profit on sale of investments, non- interest income is up by 15.97%.
• Fee income is up by 20% YOY.
• Growth in Operating Expenses is lower at 13.27% in FY111 against a growth of 29.84% in thee previous year.
o Growth in staff expenses contained at 13.53% .
· Gratuity provisions of Rs.1565 crores made in FY1 11 (Rs.46 crores in FY10)
· Higher current year pension provisions of Rs.247 73 crores in FY11 (Rs.199 98 crores in FY10).
· Rs.79277 crores of pension liability on account of wage revision has been taken through the Capital Account for the period up to Mar 10.
O Growth in overheads was significantly lower at 12..84% in FY11 as against a growth of 28.17% in FY10.
• Bank has provided additional Rs.500 crores as standard assets provision for special home loan schemes.
• Loan loss provision of Rs.8792 crores made during FY11 includes Rs.6462 crores IRAC provisions and Rs.2330 crores additional provision (countercyclical provisioning buffer).
Q4FY11 Vs Q4FYY10
• Interest Income on advances up by 25.37% against a growth of 7.31% in Q4FY10 over QQ4FY09.
• Interest paid on deposits is up by 15.98% due to increase in interest rates on term deposits.
• NII increased by 19.89%.
• Growth in non-interest income at 6.81% was impacted by decline in profit on sale of investments by 21.35%.
• Operating expenses increased by 12.55% due to increase in staff expenses by 17.46%. Contribution for employees increased by 17.699%, while payment to employees increased by 17.40%. Overheads of the Bank remained under control with a growth of 5.35% in Q4FY11 against a growth of 26.42% in Q4FY10.
• Total provisions went up by 82.10% during the quarter.
TOTAL BUSINESSS GROWTH OF Rs. 2,60,139 CRORES (YOY)
• Business Growth of Rs.2,60,139 crores at the end of Marr 11 (Deposits Rs. 1,29,817 crores & advances Rs.1,30,322 crores).
• Deposits of the Bank went up from Rs.8,04,116 crores in Mar 10 to Rs. 9,33,933 crores in Mar 11 recording a YOY growth of 116.14%, driven by CASA growth of 22.14% while term deposits are up by 12.79%.
• Savings Bank deposits grew by 26.20% YOY.
• CASA ratio has improved from 46.67% as on Mar 2010 to 48.66% as on Mar 2011 an increase of 199 bps.
• Market share in total deposits as on Mar 11 at 16.40% (16.29% as on Mar 10), increased by 11 bps YOY, while market share in low cost demand deposits at 18.23% (17.33% as on Mar 10) is up by 90 bps.
• Gross Advances up by Rs.1,30,322 crores, a YOY growth of 20.32% from Rs.6, 41,480 crores in Mar 10 to Rs.7,71,802 crores in Mar 11.
• Credit Deposit Ratio (Domestic) is up at 76.32% as at the end of Mar 11 from 73.56% at the end of Mar 10, an increase off 276 bps, while sequentially it has declined from 77.22% at the end of Decc 10 due to higher growth in deposits in Q4FY11.
• Large Corporate advances have grown from Rs.88,137 crores in Mar 10 to Rs.1,08,741 crores in Mar 11 registering a growth of 23.38%%.
• Mid-Corporate Advances up from Rs.1,31,939 crores to Rs.1,57,565 thereby registering a growth of 19.42% YOY.
• Retail advances have increased from Rs.1,34,849 crores in March 10 to Rs.1,64,576 crores in March 11, a growth of 22.04%. Thee main contributors are:
. Home loans grew by 21.88% YOY from a level of RRs.71,193 crores in Mar 10 tootRs.86,769 crores in Mar 11.
. Auto Loans up by 48.01% YOY and Education Loans grew by 23.27% from Mar 10 to Mar 11.
• SME Advances of the Bank are up by 22.80% from a level of Rs.97,459 crores in Mar 10 to Rs.1,19,676 crores as at the end of Mar 11.
• Agri advances up from Rs.78,250 crores to 94,8266 crores thereby registering a growth of 21.18% YOY.
• International advances went up by 12.66% from Rs.97,0722 crores in Mar 10 to Rs.1,09,358 crores in Mar 11.
· The Bank has reached a provision coverage ratio (PCR) of 64.955% at the end of March 2011.
KEY FINANCIAL RATIOS:
• Net Interest Margin improved to 3.32% at the end of Mar 11 from 2.66% as on Mar 10.
• Return on Assets (ROA) is lower at 0.71% in FY11 compared to 0.88% in FY10.
• As on March 11, Cost to income ratio at 47.60% is lower by 499 bps from 52.59% as on Mar 10.
• Average Cost of Deposits has come down by 54 bps to 5.226% as on Mar 11 from 5.80% as on Mar 10, while sequentially; it is up from 5.200% in Dec 10.
• Yield on advances (YOA) at 9.56% in FY11 is lower by 10 bps as compared to 9.66% in FY10 and by 2 bps from 9.58% in Dec 10.
• As per Basel II CRAR of the Bank is at 11.98% (Tier I: 7.77%%) as at the end of Mar 2011, compared to 13.39% last year. The decline is mainly due to the provision made towards pension fund on account of wage revision -Rs.7,927 crores up to FY10 taken through the capital account.
Performance of Associates and Subsidiaries (FY11):
• Net Profit of Associate Banks increased by Rs.640 crore (211.62%) to reach a level of Rs. 3598 crore as on Mar 11 as against Rs. 2959 crore in Mar 2010, while operating profit is up by 29.56%.
• SBI Capital Markets Ltd has posted PAT of Rs.385 crores as on 31.03.2011 as against Rs.150 crores as on 31.03.2010, recording a YoY growth of 156%.
• SBI Cards & Payment Services Pvt. Ltd recorded a Net Profit of Rs.7.10 crore for FY11 after incurring continuous losses for the preceding three years.
• SBI Life recorded a Profit of Rs.366 crores with YOY growth of 33%.
SBI GROUP PROFIT
SBI Group Operating Profit for FY11 at Rs.33,240 crores is up by 34.04% from Rs. 24,799 crores in FY10, while Net Profit is lower by 8.94% at Rs.10,6685 crores in FY11 against Rs.11,734 crores in FY10.
Slippages from Restructured Assets:
Out of the total standard restructured assets of Rs.18,395 crores restructured under RBI scheme, Rs. 249 crores have slipped into NPA category during the quarter, taking the total slippages to Rs.33,134 crores and the slippage ratio to 17.04 % up to Mar 11.
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