Wednesday, July 25, 2012
YES BANK - FIRST QUARTER RESULTS - Q1 FY 2012-13 - NPT GROWS 34.3%YoY; 6.7% QoQ - IMPRESSIVE PERFORMANCE
Q1FY13 Financial Results
Profit & Loss Statement Highlights
Ø Net Interest Income in Q1 FY 13 stands at Rs.472.2 Cr; compared to Rs.354.2 Cr in Q1 FY 12, a Growth of 33.3% ; and compared to Rs.448.2 Cr in Q4 FY 12, a Growth of 5.3%.
Ø Non Interest Income in Q1 FY 13 stands at Rs.288.1 Cr; compared to Rs. 165.3 Cr in Q1 FY 12, a Growth of 74.3%; and compared to Rs. 266.4 Cr in Q4 FY 12, a Growth of 8.2%. This was on the back of continued growth across all income streams – Financial Advisory, Transaction Banking, Financial Markets and Retail Banking Fees & Others, that showed firm traction y-o-y.
Ø Total Net Income in Q1 FY 13 stands at Rs.760.3 Cr; compared to Rs. 519.5 Cr in Q1 FY 12, a Growth of 46.4%; and compared to Rs. 714.6 Cr in Q4 FY 12, a Growth of 6.4%
Ø Operating Profit in Q1 FY 13 stands at Rs.459.6 Cr; compared to Rs. 325.1 Cr in Q1 FY 12, a Growth of 41.4%; and compared to Rs. 430.4 Cr in Q4 FY 12, a Growth of 6.8%
Ø Profit after Tax in Q1 FY 13 stands at Rs.290.1 Cr; compared to Rs. 216.1 Cr in Q1 FY 12, a Growth of 34.3%; and compared to Rs. 271.8 Cr in Q4 FY 12, a Growth of 6.7% - the growth was driven primarily by sustained and diversified revenue growth.
Ø Dividend of 40% paid for FY 2011-12; an increase of 60% y-o-y
Ø Basic EPS in Q1 FY 13 stands at Rs.8.20;compared to Rs. 6.21 in Q1 FY 12, a Growth of 32.0%; and compared to Rs.7.71 in Q4 FY 12, a Growth of 6.4%.
Ø On this basis, the annualized EPS for FY 13 should be upwards of Rs.33.At the current Market price of around Rs.352, the PE Ratio works out to 10.66. The Bank has been increasing its Dividend ratio also steadily – and is a VERY GOOD BUY for medium/long term Investors.
Balance Sheet Highlights
Customer Assets in Q1 FY 13stands at Rs.49,338.7Cr ; compared to Rs.37,267.6 Cr in Q1 FY 12, a Growth of 32.4%; and compared to Rs.46,119.9 Cr in Q4 FY 12, a Growth of 7.0%
Advances in Q1 FY 13stands at Rs.38,533.97Cr ; compared to Rs. 33,104.2 Cr in Q1 FY 12, a Growth of 16.4%%; and compared to Rs. 37,988.6 Cr in Q4 FY 12, a Growth of 1.4%
Deposits in Q1 FY 13stands at Rs.50,208.17Cr ; compared to Rs. 43,575.9 Cr in Q1 FY 12, a Growth of 15.2%%; and compared to Rs. 49,151.7 Cr in Q4 FY 12, a Growth of 2.1%
Shareholders’ funds in Q1 FY 13stands at Rs.4,978.47Cr ; compared to Rs. 4,021.8 Cr in Q1 FY 12, a Growth of 23.8%%; and compared to Rs. 4,676.6 Cr in Q4 FY 12, a Growth of 6.5%
Total Capital Funds in Q1 FY 13stands at Rs.9,494.97Cr ; compared to Rs. 7,090.3 Cr in Q1 FY 12, a Growth of 33.9%; and compared to Rs. 9,326.1 Cr in Q4 FY 12, a Growth of 1.8%
Total Balance Sheet size in Q1 FY 13stands at Rs.78,223.97Cr ; compared to Rs. 56,963.6 Cr in Q1 FY 12, a Growth of 37.3%; and compared to Rs. 73,662.1 Cr in Q4 FY 12, a Growth of 6.2%
Key Financial Performance Indicators
In the 3 Quarters of
Q1FY13 :: Q1FY12 :: Q4FY12
Return on Assets :: 1.5% :: 1.5% :: 1.5%
Return on Equity :: 24.0% :: 22.1% :: 23.6%
NIM :: 2.8% :: 2.8% :: 2.8%
Cost to Income Ratio :: 39.5% :: 37.4% :: 39.8%
Non Interest Income to Total Income :: 37.9% :: 31.8% :: 37.3%
Capital Adequacy :: 16.5% :: 16.2% :: 17.9%
Tier I Ratio :: 9.2%* :: 9.6% :: 9.9%
Book Value (Rs.) 140.7 :: 115.5 :: 132.5
Gross NPA 0.28% :: 0.17% :: 0.22%
Net NPA :: 0.06% :: 0.01% :: 0.05%
*- Tier I Ratio at 9.7% including Q1 FY13 PAT
Commenting on the results and financial performance, Dr. Rana Kapoor, Founder,MD & CEO, YES BANK said, “…..The Bank has achieved healthy Net Profit growth of 34.3% on the back of strong NII growth and robust Non Interest Income growth. The Bank has witnessed another quarter of strong traction on CASA, with its CASA ratio now at 16.3%. Increased productivity, wider distribution network and better product offerings have led to increased rate of retail customer acquisition. The Bank has inducted key leaders in its Retail Banking businesses to further strengthen its delivery and execution capabilities. With a comprehensive offering of Retail Asset products, the Bank will focus on improving cross-sell with its increasing customer base. Our main objective for FY 2012-13 is to build a strong platform for Retail Banking Assets and build on the momentum achieved on Retail Liabilities, this is in accordance with our Version 2.0 Vision & Strategy of achieving scale along with improving granularity and diversity.”
Rana Kapoor further added, “YES BANK has been recognized as the No. 1 Sustainable Bank of the Year (Asia/Pacific) by FT/IFC Sustainable Finance Awards 2012, London, for the second consecutive year and for the third time in five years (ONLY BANK IN INDIA), reinforcing YES BANK’s uncompromising commitment to sustainable growth.”
Q1FY13 Performance highlights
The Bank has adopted a cautious approach to lending given the economic environment and hence the current loan mix stands at: Corporate & Institutional Banking accounting for 64.0% of the loan portfolio, Commercial Banking – 20.2% and Branch Banking – 15.8%.
Bank’s total loan loss coverage ratio was at 295% while specific provisioning cover was at 78.3% as at June 30, 2012.
Total Restructured Advances of Rs.196.5 Cr remained flat sequentially at 0.51% of Gross Advances as of June 30, 2012.
Strong Shareholders‟ returns: The Bank delivered RoE of 24.0% and RoA of 1.5% for Q1FY13. Return on Assets has been at or above 1.5% over the past 15 quarters, and Return on Equity has been approximately 20% or above over the last 4 years.
Capital Funds: Tier I Capital stood at 9.2% (9.7% including Q1FY13 PAT) and total CRAR stood at 16.5% as at June 30, 2012.
Business Highlights (Q1FY13)
YES SWARN: YES BANK entered into Gold Bullion distribution, making available the yellow metal to its customers at competitive prices and strong demand was seen among wealth management customers.
Online Goal-based Recurring Deposits scheme: A unique variant of the traditional Recurring Deposits scheme was launched, based on the Systematic Investment Plan model, using the Bank’s Net Banking services.
Expansion/ Investment Initiatives
YES BANK added 25 branches during the quarter, taking the total branch count to 381.
YES BANK added 387 ATMs to its network since 30 June 2011, taking the total count to 642 ATMs as on June 30, 2012.
Employee strength stood at 6,183 as on June 30, 2012; a growth of 41% over June 30, 2011.
Awards & Recognitions
YES BANK received the No. 1 Sustainable Bank of the Year (Asia/Pacific) award at the FT/IFC Sustainable Finance Awards 2012, London, for the second consecutive year and for the third time in the last 5 years
YES BANK was awarded the “Performance Excellence Trophy” (Service Category) at the IMC Ramkrishna Bajaj National Quality Awards 2011.
Capital Raising Initiatives
YES BANK successfully raised Rs.140 Cr of Innovative Perpetual Debt Instrument – Tier I Capital & Rs.60 Cr of Upper Tier II Capital, rated ICRA AA- by ICRA & CARE AA- by CARE.
Financial Advisory, Debt Structuring, Debt Capital Markets & Loan Syndications
YES BANK was the Sole Arranger of Rs.1,500 Cr Bond issue for Hindalco Industries Ltd
YES BANK was the Joint Arranger of Rs.1,500 Cr Bond Issue for Tata Steel Ltd
YES BANK was the Sole Arranger of Rs.300 Cr Bond issue for United Phosphorus Ltd.
YES BANK was the Joint Arranger of Rs.200 Cr Bond issue for Indian Hotels Ltd.
YES BANK and Export-Import Bank of Malaysia Berhad (EXIM Bank), entered into a Master Facility Agreement for USD 100 Million bank-to-bank trade finance facility to facilitate ongoing trade finance transactions between YES BANK and its importing customers.
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