Tuesday, May 1, 2012

Oriental Bank of Commerce = RESULTS FOR = Q4 FY 2012 = FY 2012 vs FY 11 vs FY10 = UNIMPRESSIVE PERFORMANCE - HIGHER NPA%


Oriental Bank of Commerce
NSE Symbol        ORIENTBANK

Oriental Bank of commerce has declared its results for the 4 th Quarter ending Mar 2012 and for the year ending Mar 2012.

QUARTERLY RESULTS COMPARISON
Q4 FY12vs Q3 FY 12 vs Q4 FY11

Interest on Advances in Q4 FY 12  stands at Rs.3280.15 Cr; compared to :  Rs.3237.65 Cr in Q3 FY 12, up by 1.31%; and  Rs.2415.81 Cr in Q4 FY 11; up by 35.78%.

Income on Investments  in Q4 FY 12  stands at Rs.933.85 Cr; compared to :  Rs.853.89 Cr in Q3 FY 12, up by 9.36%; and Rs.699.87 Cr in Q4 FY 11; up by 33.43%.

Interest Earned in Q4 FY 12  stands at Rs.4220.78 Cr; compared to :  Rs.4196.49 Cr in Q3 FY 12, up by 0.58%; and  Rs.3232.31 Cr in Q4 FY 11; up by 30.58%.

Other Income in Q4 FY 12  stands at Rs.343.75 Cr; compared to :  Rs.295.27 Cr in Q3 FY 12, up by 16.42%; and  Rs.299.83 Cr in Q4 FY 11; up by 14.65%.

Total Income in Q4 FY 12  stands at Rs.4564.53 Cr; compared to :  Rs.4491.76 Cr in Q3 FY 12, up by 1.62%; and  Rs.3532.14 Cr in Q4 FY 11; up by 29.23%.

Interest Expended in Q4 FY 12  stands at Rs.3152.63 Cr; compared to :   Rs.3056.60  Cr in Q3 FY 12, up by 3.14%; and  Rs.2218.96 Cr in Q4 FY 11; up by 42.08%.

Net Interest Income   in Q4 FY 12  stands at Rs.1068.15 Cr; compared to :  Rs.1139.89 Cr in Q3 FY 12, down by(-)6.29%; and Rs.1013.35 Cr in Q4 FY 11; up by 5.41%.

Total Expenditure (excluding provisions ) in Q4 FY 12  stands at Rs.3810.61 Cr; compared to Rs.3664.68 Cr in Q3 FY 12, up by 3.98%; and Rs.2689.18 Cr in Q4 FY 11; up by 41.7%. Compared to the total Income growth of 29.23%, the expenditure growth is very steep.

Operating Profit  in Q4 FY 12  stands at Rs.753.92 Cr; compared to :  Rs.827.08 Cr in Q3 FY 12, down by (-)8.85%; and  Rs.842.96 Cr in Q4 FY 11; down by   (-)10.56%.Due to heavier Expenditure Growth, Operating Profit has fallen compared to preceding and corresponding quarters.

Provisions in Q4 FY 12  stands at Rs.534.35 Cr; compared to Rs.380.86 Cr in Q3 FY 12, up by 40.3%; and  Rs.560.49 Cr in Q4 FY 11; down by (-)4.66%. Provisions has again climbed to steep levels, compared to preceding Quarter.

Profit before tax in Q4 FY 12  stands at Rs.219.57 Cr; compared to Rs.446.22 Cr in Q3 FY 12, down by (-)50.79%; and  Rs.282.47 Cr in Q4 FY 11; down by (-)22.27%. While OPT was down 11% YoY, PBT is down by 22.27%, mainly on account of Higher Provisions.

Tax Expense in Q4 FY 12  stands at Rs.(-)45.33 Cr; compared to Rs.92 Cr in Q3 FY 12, and  Rs.(-)51.19 Cr in Q4 FY 11; Lower Tax Expense has to some extent recouped the Net Profit levels from falling steeply.

Net Profit in Q4 FY 12  stands at Rs.264.90 Cr; compared to Rs.354.22 Cr in Q3 FY 12, down by       (-) 25.22%; and  Rs.333.66 Cr in Q4 FY 11; down by (-)20.61%.

Face Value of the Share is Rs.10; while the Paid-up Equity Share Capital is Rs.291.76 Cr.

Capital Adequacy Ratio in Q4 FY 12  stands at 11.01%.

Basic EPS in Q4 FY 12  stands at Rs.9.08 ; compared to Rs.12.14 in Q3 FY 12; and Rs.13.24  in Q4 FY 11.

 % of Gross/Net NPA in Q4 FY 12  stands at 2.21%; compared to 1.89% in Q3 FY 12; and 0.98% in Q4 FY 11. This means, quality of assets has deteriorated steeply in current quarter.

Return on Assets in Q4 FY 12  stands at 0.6%; compared to 0.81% in Q3 FY 12; and 0.89% in Q4 FY 12.

Public Shareholding (%)in Q4 FY 12  stands at 42%.


Other Performance Highlights for 4th Quarter of FY 2011-12

Ø  Yield on Advances increased by 183 bps (Q4 to Q4) to reach 12.65% from 10.82%.
Ø  Interest Income increased by 30.58% (Q4 to Q4).
Ø  Non Interest Income increased by 14.65% (Q4 to Q4).
Ø  Net Interest Margin (NIM) stood at 2.68%.
Ø  CRAR of the Bank is at 12.69% under BASEL-II (Tier-I Capital: 10.12%; Tier –II Capital: 2.57%).
Ø  100% system driven classification and provisioning of NPAs.

ANNUAL RESULTS COMPARISON
FY12 vs FY 11 vs FY 10

The Annual results for FY 12 are compared below with FY11 and FY 10.

Interest on Advances  in FY 12 stands at Rs.12074.65 Cr; compared to :  Rs.8953.93 Cr in FY 11, up by 34.85%; and Rs.7567.47 Cr in FY 10;up by 59.56%.

Income on Investments in FY 12 stands at Rs.3670.93 Cr; compared to :  Rs.2774.43 Cr in FY 11, up by 32.31%; and Rs.2461.80 Cr in FY 10;up by 49.12%.

Interest Earned in FY 12 stands at Rs.15814.88 Cr; compared to :  Rs.12087.82 Cr in FY 11, up by 30.83%; and Rs.10257.12 Cr in FY 10;up by 54.18%.

Other Income in FY 12 stands at Rs.1240.25 Cr; compared to :  Rs.960.07 Cr in FY 11, up by 29.18%; and Rs.1200.05    ; up by 3.35%.

Total Income in FY 12 stands at Rs.17055.13 Cr; compared to :  Rs.13047.89 Cr in FY 11, up by    30.71%; and Rs.11457.17 Cr in FY 10;up by 48.86%.

Interest Expended in FY 12 stands at Rs.11599.09 Cr; compared to :  Rs.7910.26 Cr in FY 11, up by 46.63%; and Rs.7349.69 Cr in FY 10;up by 57.82%.

Net Interest Income in FY 12 stands at Rs.4215.79 Cr; compared to :  Rs.4177.56 Cr in FY 11, up by 0.92%; and Rs.2907.43 Cr in FY 10;up by   45%.

Total Expenditure(excl.provisions)  in FY 12 stands at Rs.13914.55 Cr; compared to :  Rs.9802.75 Cr in FY 11, up by 41.95%; and Rs.9035.67 Cr in FY 10;up by 54%.

Operating Profit  in FY 12 stands at Rs.3140.58 Cr; compared to :  Rs.3245.14 Cr in FY 11, down by (-)3.22%; and Rs.2421.50 Cr in FY 10;up by 29.7%. More than proportionate Increase in expenditure compared to Income has brought down the operating Profit.

Provisions    in FY 12 stands at Rs.1714.82 Cr; compared to :  Rs.1206.53 Cr in FY 11, up by 42.13%; and Rs.815.98 Cr in FY 10;up by 110.15%. Provisions have been climbing up steeply over last 2 years.

Profit before tax in FY 12 stands at Rs.1425.76 Cr; compared to :  Rs.2038.61 Cr in FY 11, down by (-)30.06%; and Rs.1605.52 Cr in FY 10;down by (-)11.2%. Steep Provisions have resulted in LOWER PBT  compared to the 2 previous years.

Tax Expense in FY 12 stands at Rs.284.20 Cr; compared to :  Rs.535.74 Cr in FY 11, down  by (-)46.95%; and Rs.470.84 Cr in FY 10;down by (-)39.64%. Lower PBT has resulted in Lower Tax expense.

Net Profit in FY 12 stands at Rs.1141.56 Cr; compared to :   Rs.1502.87 Cr in FY 11, down by (-)24.04%; and Rs.1134.68 Cr in FY 10;up by 0.61%. Overall, FY 12 (and Q4 FY 12) performance is UNIMPRESSIVE for OBC.

Reserves in FY 12 stands at Rs.10793.23 Cr; compared to :  Rs.9918.97 Cr in FY 11, up by 8.81%; and Rs.7069.98 Cr in FY 10;up by         52.66%.

Capital Adequacy Ratio stands at 11.01%.

Basic EPS stands at Rs.39.13 in FY 12; compared to Rs.59.9 in FY 11; and compared to Rs.45.29 in FY 10; There is a steep reduction in EPS in FY 12.

% of Gross/Net NPA stands at 2.21% in FY 12; 0.98% in FY 11; 0.87% in FY 10. There is a steep increase in Net NPA % in FY 12- reflecting in deteriorating quality of assets.

Return on Assets for FY 12 stands at 0.67% compared to 1.03% in FY 11; and 0.91% in FY 10.
Overall, the performance of OBC in Q4 FY 12 and in FY 2012 is UNIMPRESSIVE.

OTHER DETAILS

FINANCIAL RESULTS FOR THE YEAR 2011-12

BUSINESS

Ø  Total Business of the Bank increased to Rs.2,69,015 Cr as on  31st Mar, 2012 from Rs. 2,35,893 Cr as on 31st Mar ,2011 - a YoY growth of 14.04 %.
Ø  Total Deposits increased to Rs.1,55,965 Cr as on 31st Mar, 2012 from  Rs.1,39,054 Cr as on 31st Mar, 2011 -  a YoY growth of 12.16 %.
Ø  Core Deposits increased to Rs.1,12,564 Cr as on 31st Mar, 2012 from    Rs.91,246 Cr as on 31st Mar, 2011 -  a YoY growth of 23.36%.
Ø  Advances of the Bank increased to Rs.1,13,050 Cr as on 31st Mar, 2012 from Rs.96,839 Cr as on 31st Mar, 2011 - a YoY growth of 16.74%.
Ø  CASA Deposit increased by Rs.3480 Cr to Rs.37,628 Cr from    Rs.34,148 Cr - a growth of 10.19% (YoY).
Ø  CASA Deposits to Total Deposits at 24.13%.
Ø  Credit Deposit Ratio at 72.68%. 

IMPORTANT RATIOS

Ø  Gross NPA ratio stands at 3.17% as at 31st Mar, 2012 and Net NPA ratio at    2.21%.
Ø  Provision Coverage Ratio at 61.52%.
Ø  Net Interest Margin (NIM) at 2.68% for Q4 of FY 2011-12 and 2.79% for F/Y 31st Mar, 2012.
Ø  Return on Assets (RoA) at 0.60% for Q4 of FY 2011-12 and 0.67% for F/Y 31st Mar, 2012.
Ø  Cost of Deposit is at 7.99% for Q4 of FY 2011-12 and 7.69% for F/Y 31st Mar, 2012.
Ø  Yield on Advances is at 12.65% for Q4 of FY 2011-12 and 12.16% for F/Y 31st Mar, 2012.
Ø  Cost to Income Ratio is at 43.67% for Q4 of FY 2011-12 and 42.44% for F/Y 31st Mar, 2012.
Ø  Book Value Per Share at Rs.361.20 as on 31st Mar, 2012 as against    Rs.325.13 as on 31st Mar, 2011.
Ø  CRAR of the Bank is at 12.69% under BASEL-II (Tier-I Capital: 10.12%; Tier –II Capital: 2.57%).
Ø  Business per Branch increased to Rs.151.81 Cr from Rs.145.61 Cr registering a growth of 4.26 % (YoY).
Ø  Business per Employee increased to Rs.14.62 Cr from Rs.14.18 Cr registering a growth of 3.12% (YoY).

DELIVERY CHANNELS

Ø  Branch Network stood at 1772 Branches with 19 Extension Counters.
Ø  42 Branches were opened during Q4 of FY2012 and   152 Branches during F/Y 31st Mar, 2012.
Ø  19 New ATMs during Q4 of FY-2011-12. Total ATMs as on 31st Mar, 2012 stood at 1270.
Ø  ATM Coverage is at 71.67% vis-à-vis Branch Network.
Ø  81.40% of eligible cash transactions happening through ATMs.

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