ANDHRA BANK - QTRLY RESULTS - Q3 FY 2012 - 3rd Q/E DEC,2011 - TOTAL INCOME UP 36.12% YoY; NII UP 17.13%YoY; NPT DOWN 8.38% YoY ON HIGHER PROVISIONS; - 4TH QTR MORE PROMISING

Andhra Bank

NSE Symbol        ANDHRABANK

ANDHRA BANK  has declared its Results for the third quarter ending Dec, 2011.

Interest on Advances      stands at Rs.2390.61 Cr – up by 4.27 from Q2 FY 12; Up by 10.43% from Q1 FY 12; and up  by 39.62% from Q3 FY 11.

Income on Investments  stands at Rs.498.63 cr – up  by 4.55% from Q2 FY 12; Up by 10.18% from Q1 FY 12; and up by 24.45% from Q3 FY 11.

Interest Earned     stands at Rs.2923 Cr – up by  5.05% from Q2 FY 12; up by  10.96% from Q1 FY 12; and up by 37.77% from Q3 FY 11.

Other Income        stands at Rs.235.26 Cr – up by 32.32% from Q2 FY 12; up  by  8.44% from Q1 FY 12; and up by  18.45% from Q3 FY 11.

Total Income         stands at Rs.3158.26 Cr – up  by 6.69% from Q2 FY 12; up by  10.77% from Q1 FY 12; and up by 36.12% from Q3 FY 11.

Interest Expended stands at Rs.1939.15 cr – up by  5.89% from Q2 FY 12; up by 12.49% from Q1 FY 12; and up by  51.3% from Q3 FY 11.

Net Intt Income stands at Rs.983.85 Cr – up  by 3.43% from Q2 FY 12; up by  8.07% from Q1 FY 12; and up  by 17.13% from Q3 FY 11.

Total Expdr Excl Prov. stands at Rs.2390.66 Cr – up by 5.15% from Q2 FY 12; up by 11.11% from Q1 FY 12; and up by 41.16% from Q3 FY 11.

Operating Profit  stands at Rs.767.60 Cr – up by 11.77% from Q2 FY 12; up by 9.71% from Q1 FY 12; and up by 22.5% from Q3 FY 11.

Provisions stands at Rs.309.43 cr – up by 18.71% from Q2 FY 12; up by 74.87% from Q1 FY 12; and up by 80.22% from Q3 FY 11.

Profit  before tax stands at Rs.458.17 Cr – up  by 7.52% from Q2 FY 12; down by -12.35% from Q1 FY 12; and  up by 0.72% from Q3 FY 11.

Tax Expense stands at Rs.155 Cr -  up by 40.91% from  Q2 FY 12; up by 13.14% from Q1 FY 12; and up by 25% from Q3 FY 11.

Net Profit stands at Rs.303.17 Cr – down by -4.1% from Q2 FY 12; down by -21.4% from Q1 FY 11; and down by -8.38% from Q3 FY 11.

Capital Adequacy Ratio   is adequate at 12.08%.

Gross/Net NPA stands at Rs.943.27 cr – down by -13.12% from Q2 FY 12; up by 179.57% from Q1 FY 12; and up by 206.13% from Q3 FY 11.

 % of Gross/Net NPA stands at  1.21% - down by -18.24% from Q2 FY 12; up by 168.89% from Q1 FY 12; and up by  157.45% from Q3 FY 11.

Return on Assets is reasonable at 1.07% though down by -6.96% from Q2 FY 12; down by -25.17% from Q1 FY 12; and down by -24.11% from Q3 FY 11.

Basic EPS on a FV of Rs.10 stands at Rs.5.42 in Q3 FY 12; Rs.5.65 in Q2 FY 12; Rs.6.89 in Q1 FY 12; and Rs.6.82 in Q3 FY 11.

The annual EPS on this basis is likely to be Rs.23.4.

The current Market price is Rs.109.90, while the  52 week high price is Rs.159; and the 52 week low price  is Rs.76.50.

The PE Ratio is 4.7.

The recent RBI decision on reduction of CRR by 0.5% will benefit all Banks from the 4^th Quarter. Also, with the Credit environment improving now – the 4^th Qtr performances may generally be expected to be better for all Banks – including Andhra Bank.

Performance Highlights

for the Q3 FY 2011-12 and 9M FY 2011-12 ended

December 2011

TOTAL BUSINESS

• Total Business of the Bank stood at Rs.1,77,850 Crore, recording a Y-o-Y  growth of 20.4% over Rs.1,47,682 Crore in Dec’10.

• Deposits at the end of Dec’11 stood at Rs.98,680 Crore as compared to  Rs.82,095 Crore in Dec’10, registering a growth of 20.2% on Y-o-Y basis.

• Advances recorded a growth of 20.7% (Y-o-Y) reaching the level of  Rs. 79,169 Crore as on Dec’11 from Rs. 65,587 Crore as on Dec’10.

• CASA Deposits increased to Rs. 26,261 Crore in Dec’11 from Rs. 23,428  Crore in Dec’10. CASA share in Total Deposits is 26.6% as at end of Dec’11.

INCOME

• Total Income during Q3 FY’11-12 rose by 36.1% to Rs. 3158 Crore.

• Total Income during 9M of FY’11-12 increased to Rs.8970 Crore, recording a

growth of 37.5%.

• Net Interest Income during Q3 FY’11-12 improved to Rs.984 Crore recording a growth of 17.1 % over Q3 FY’10-11.

• During 9M FY’11-12 N I I improved by 20.6 % to Rs. 2845 Crore.

PROFIT

• Operating Profit for Q3 FY’11-12 stood at Rs. 767 Crore as against Rs. 627 Crore in Q3 FY’10-11, registering a Y-o-Y growth of 22.3%.

• Operating Profit grew by 26.6% to reach Rs.2154 Crore in 9 months of FY’ 11-12 as compared to Rs.1702 Crore for 9M FY’10-11.

• Net Profit for Q3 of FY ’11-12 stood at Rs.303 Crore for the Quarter ended December 2011. For the nine month period ended December 2011, Net Profit stood at Rs.1005 Crore.

IMPORTANT  RATIOS

• Gross NPA ratio stood at 2.38% as at Dec’11 while Net NPA ratio is 1.21%.

• Net Interest Margin (NIM) stood at 3.81% for the quarter ended Dec’11 and 3.80% for 9 months ended Dec’11.

• Return on Assets stood at 1.07% in the Q3 of FY 2011-12 and at 1.21% for 9 Months ended Dec’11.

• Cost of Deposits stood at 7.58% for Q3 FY 2011-12 and 7.35% for 9M FY

2011-12.

• Yield on Advances stood at 12.75% for Q3 FY 2011-12 and 12.46% for 9M FY 2011-12.

·         Cost to Income ratio stood at 37.04% in Q3 FY 2011-12 as against 39.67% for Q3 of Dec’10 and 38.02 % in 9M FY 2011-12 Dec’11 as against 42.46% for 9 months of FY 2010-11 Dec.10.

·         Earnings Per Share was Rs.17.96 for the period ended Dec’11.

·         Book Value per Share improved to Rs. 126.02 in Dec’11 as against Rs. 110.60 in Dec’10.

·         CRAR of the Bank improved to 12.58 % under BASEL-II (Tier-I Capital: 8.24%; Tier-II Capital: 4.34%) as compared to 12.00% in the previous year.

ASSET QUALITY

• Gross NPAs of the Bank stood at Rs.1884.13 Crore and the Net NPAs stood

at Rs.943.27 Crore as at the end of Dec.’11

DELIVERY CHANNELS

• During the Current FY, the Bank has opened 68 Branches taking the PAN

India presence to 2803 Delivery Channels consisting of 1700 Branches, 15

Extension Counters, 38 Satellite Offices and 1050 ATMs.

RESULTS TABLE

Andhra Bank	31-Dec-11	30-Sep-11	% Dif 2	30-Jun-11	%dif2	31-Dec-10	%dif3
Interest on Advances	239061	229279	4.27	216487	10.43	171217	39.62
Income on Investments	49863	47693	4.55	45257	10.18	40066	24.45
Income on Balances With RBI	3376	1280	163.75	497	579.3	875	285.83
Interest Earned	292300	278252	5.05	263423	10.96	212158	37.77
Other Income	23526	17780	32.32	21695	8.44	19862	18.45
Total Income	315826	296032	6.69	285118	10.77	232020	36.12
Interest Expended	193915	183128	5.89	172385	12.49	128165	51.3
Net Intt Income	98385	95124	3.43	91038	8.07	83993	17.13
Employees Cost	28470	27359	4.06	27307	4.26	25950	9.71
Other Oprtng Expenses	16681	16866	-1.1	15460	7.9	15244	9.43
Oprtng Expenses	45151	44225	2.09	42767	5.57	41194	9.61
Total Expdr Excl Prov.	239066	227353	5.15	215152	11.11	169359	41.16
Operating Profit	76760	68679	11.77	69966	9.71	62661	22.5
Provisions	30943	26067	18.71	17695	74.87	17170	80.22
Profit  before tax	45817	42612	7.52	52271	-12.35	45491	0.72
Tax Expense	15500	11000	40.91	13700	13.14	12400	25
Net Profit	30317	31612	-4.1	38571	-21.4	33091	-8.38
Face Value.in Rs.	10	10	0	10	0	10	0
Paid-up Equity	55958	55958	0	55958	0	48500	15.38
Capital Adequacy Ratio	12.08	12.72	-5.03	12.29	-1.71	11	9.82
Basic EPS	5.42	5.65	-4.07	6.89	-21.34	6.82	-20.53
Gross/Net NPA	94327	108567	-13.12	33740	179.6	30813	206.13
% of Gross/Net NPA	1.21	1.48	-18.24	0.45	168.9	0.47	157.45
Return on Assets	1.07	1.15	-6.96	1.43	-25.17	1.41	-24.11
Public holding (%)	42	42	0	42	0	48.45	-13.31

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