YES BANK = RESULTS = FOR = Q1 FY 2012 (Q/E JUNE 2011) = EXCELLENT PERFORMANCE = PAT UP 38.2% YoY

Yes Bank Limited

NSE Symbol    YESBANK

Highlights

for First Quarter ended June 30, 2011 (Q1FY12)

Ø   Net Profit up 38.2% to  Rs.216.1 cr (Rs.156.4 cr in Q1FY11)

Ø   Net Interest Income up 35.1% to Rs.354.2 cr ( Rs.262.1 cr in Q1FY11)

Ø   Non Interest Income up 14.9% to  Rs.165.3 cr ( Rs.143.8 cr in Q1FY11)

Ø   Operating Profit up 30.6% to Rs.325.1 cr (Rs.249.0 cr in Q1FY11)

Ø   Net Interest Margin at 2.8%

Ø   Cost to Income ratio of 37.4%

Ø   Return on Average Assets –RoA (annualized) of 1.5%, at or above 1.5% over last 3 years

Ø   Return on Equity-RoE (annualized) of 22.1%, at or above 20% over last 3 years

Ø   Basic EPS of Rs.6.21 and Diluted EPS of ` 6.04

Other Key Highlights

Ø   Advances up 26.1% to Rs.33,104.2 cr as at June 30, 2011 (Rs.26,256.8 cr at June 30, 2010)

Ø   Customer Assets up 34.7% to Rs.37,453.0 cr as at June 30, 2011 (Rs. 27,798.1 cr at June 30, 2010)

Ø   Deposits up 44.1% to Rs.43,575.9 cr at June 30, 2011 (Rs.30,238.7 cr at June 30, 2010)

Ø   Total Assets up 39.2% to Rs.56,963.6 cr as at June 30, 2011 (Rs.40,928.6 cr as at June 30, 2010)

Ø   Basel II Capital Adequacy Ratio of 16.2% (Tier I – 9.6%)

Ø   Gross NPA at 0.17% of Gross Advances

Ø   Net NPA at 0.01% of Net Advances

Ø   Restructured Advances at 0.26% of Gross Advances

Ø   Specific provisioning cover at 95.2%. Total Provisioning cover at 404%

Ø   Book value per share of ` 115.5 (` 95.5 as at June 30, 2010)

SUMMARY OF P&L ACCOUNT

Summary P&L (` in Crore)	Q1FY12	Q1FY11	Growth %
Net Interest Income	354.2	262.1	35.1%
Non Interest Income	165.3	143.8	14.9%
Total Net Income	519.5	405.9	28.0%
Operating Expense	194.4	156.9	23.9%
Operating Profit	325.1	249.0	30.6%
Profit after Tax	216.1	156.4	38.2%

SUMMARY OF BALANCE SHEET (IN Cr)

Summary Balance Sheet (` in Crore)	30-Jun-11	30-Jun-10	Growth %
Advances	33,104.2	26,256.8	26.1%
Investments	17,544.8	11,017.5	59.2%
Shareholders’ funds	4,021.8	3,257.4	23.5%
Total Capital Funds	7,090.3	5,225.4	35.7%
Deposits	43,575.9	30,238.7	44.1%
Total Assets / Liabilities	56,963.6	40,928.6	39.2%

Q1FY12 PERFORMANCE HIGHLIGHTS

 Steady growth in Advances, Investments and Deposits: Total Advances grew by 26.1% to Rs.33,104.2 crore as at June 30, 2011 from Rs.26,256.8 crore as at June 30, 2010. Customer Assets (Loans & Credit Substitutes) grew by 34.7% y-o-y to Rs.37,453.0 cr as at June 30, 2011. Investments grew by 59.2% to Rs. 17,544.8 crore as at June 30, 2011 from Rs.11,017.5 crore as at June 30, 2010. 

Total Deposits grew by 44.1% to Rs.43,575.9 crore as at June 30, 2011 from Rs. 30,238.7 crore as at June 30, 2010. 

Current and Savings Account (CASA) deposits grew by 49.8% to Rs.4,764.4 crore taking the CASA ratio to 10.9% as at June 30, 2011. 

The Bank’s Balance Sheet grew by 39.2% to Rs.56,963.6 crore as at June 30, 2011 from Rs.40,928.6 crore as at June 30, 2010. 

 Strong Net Interest Income (NII) Growth: NII for Q1FY12 increased by 35.1% y-o-y to  Rs.354.2 crore from Rs.262.1 crore in Q1FY11. This was on account of stable growth in advances and sequentially steady NIM of 2.8%.

Stable growth in Non Interest Income streams: Non Interest Income grew by 14.9% y-o-y to  Rs.165.3 crore for Q1FY12 from Rs.143.8 crore in Q1FY11. This was on the back of continued growth in Transaction Banking, Financial Advisory and Branch Banking Fees & Others segments that showed firm traction y-o-y. 

 Strong growth in Operating and Net profit:

Operating profit for Q1FY12 was up 30.6% to Rs.325.1 crore as compared to Rs.249.0 crore for Q1FY11 driven primarily by sustained revenue growth.

The Cost to Income ratio was 37.4% in Q1FY12 versus 38.7% in Q1FY11.

PAT in Q1FY12 was up 38.2% at  Rs.216.1 crore from  Rs.156.4 crore for Q1FY11. 

 Consistently healthy Asset Quality:

Gross Non Performing Advances as a proportion of Gross advances was at 0.17% .

Net Non Performing Advances as a proportion of Net advances was at 0.01% as at June 30, 2011 down from 0.23% and 0.04% respectively as at June 30, 2010, due to recovery of a significant NPA.

Bank’s total loan loss coverage ratio was at 404% while specific provisioning cover was at 95.2% as at June 30, 2011.

Total Restructured Advances (excluding NPAs) is Rs.87.0 crore as at June 30, 2011. This represents 0.26% of the Gross Advances.

 Strong Shareholders’ returns: The Bank delivered RoE of 22.1% and RoA of 1.5% for Q1FY12.

Return on Assets has been at or above 1.5% over the past 3 years, and Return on Equity has been approximately 20% or above over the same period.

 Capital Funds: Tier I Capital stood at 9.6% and total CRAR stood at 16.2% as at June 30, 2011. Total Capital funds grew by 35.7% to Rs.7,090.3 crore as at June 30, 2011 compared to Rs.5,225.4 crore as at June 30, 2010. 

Expansion Initiatives

 YES BANK added 41 new branches across the country during the quarter. Total branch count is 255 branches pan India.

 Employee strength stood at 4,385 as on June 30, 2011, growth of 27.2% over June 30, 2010.

YES BANK’S last 5 quarters performance statistics are placed below. From the High lighted portions, we can easily see that the bank has been growing very consistently from quarter to quarter.

On an overall assessment – Yes Bank is an ideal investment for medium / long term Investors.

yes bank	30-Jun-11	31-Mar-11	31-Dec-10	30-Sep-10	30-Jun-10
Interest on Advances	102620	88834	81775	72515	55788
Income on Investments	36477	32694	29933	22446	17658
Income on Balances With RBI	798	599	702	282	292
Others	59	134	205	136	181
Interest Earned	139954	122261	112615	95379	73919
Other Income	16529	18676	16167	13100	14384
Total Income	156483	140937	128782	108479	88303
Interest Expended	104535	87411	80299	64063	47709
Employees Cost	10981	10302	9033	8776	8123
Other Operating Expenses	8457	8347	8325	7499	7576
Operating Expenses	19438	18649	17358	16275	15699
Total Expdr excl. provisions	123973	106060	97657	80338	63408
Operating Profit	32510	34877	31125	28141	24895
Provisions	151	4326	2495	1744	1256
Profit  before tax	32359	30551	28630	26397	23639
Tax Expense	10751	10213	9518	8771	8002
Net Profit  After Tax	21608	20338	19112	17626	15637
Net Profit	21608	20338	19112	17626	15637
Face Value  (in Rs.)	10	10	10	10	10
Paid-up Equity	34814	34715	34678	34525	34102
Capital Adequacy Ratio	16.22	16.5	18.22	19.43	16.57
Basic EPS	6.21	5.86	5.52	5.13	4.59
Diluted EPS	6.04	5.68	5.28	4.92	4.41
Gross/Net NPA	267	915	1738	1716	1109
% of Gross/Net NPA	0.01	0.03	0.06	0.06	0.04
Return on Assets	1.49	1.46	1.47	1.52	1.62
Public holding (%)	73.5	73.43	73.4	73.28	72.95

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