CORPORATION BANK - RESULTS = FOR Q4 FY 2012 = FY 2012 vs 2011 vs 2010 = Q4 NPT UP 2%YoY = CONSOL.NPT UP 29% YoY

Corporation Bank

NSE Symbol        CORPBANK

Corporation Bank has declared its Results for Q4 and FY 2012.

QUARTERLY RESULTS REVIEW

Interest on Advances in Q4 FY 12 stands at Rs.2691.27 Cr; compared to Rs.2457.36 Cr in Q3 FY 12 ( up by 9.52%); and compared to Rs.1882.26 Cr in Q4 FY 12 (Up by 42.98%).

Income on Investments in Q4 FY 12 stands at Rs.804.97 Cr; compared to 816.31 Cr in Q3 FY 12 ( down by -1.39%); and compared to Rs.590.91 Cr in Q4 FY 12 (Up by 36.23%).

Interest Earned in Q4 FY 12 stands at Rs.3585.88 Cr; compared to Rs.3362.84 Cr in Q3 FY 12 ( up by 6.63%); and compared to Rs.2555.36 Cr in Q4 FY 12 (Up by 40.33%).

Other Income in Q4 FY 12 stands at Rs.423.30 Cr; compared to Rs.441.65 Cr in Q3 FY 12 ( down by -4.15%); and compared to Rs.490.42 Cr in Q4 FY 12 (down by -13.69%).

Total Income in Q4 FY 12 stands at Rs.4009.18 Cr; compared to Rs.3804.50 Cr in Q3 FY 12 ( up by 5.38%); and compared to Rs.3045.78 Cr in Q4 FY 12 (Up by 31.63%).

Interest Expended in Q4 FY 12 stands at Rs.2751.95 Cr; compared to Rs.2501.04 Cr in Q3 FY 12 ( up by 10.03%); and compared to Rs.1793.61 Cr in Q4 FY 12 (Up by 53.43%).

Net Interest Income in Q4 FY 12 stands at Rs.833.93 Cr; compared to Rs.861.81 Cr in Q3 FY 12 ( down by -3.23%); and compared to Rs.761.75 Cr in Q4 FY 12 (Up by 9.47%). The Growth in NII over last 4 Qtrs is unimpressive.

Total Expdr(excl.provisions) in Q4 FY 12 stands at Rs.3194.92 Cr; compared to Rs.2978.57 Cr in Q3 FY 12 ( up by 7.26%); and compared to Rs.2299.20 Cr in Q4 FY 12 (Up by 38.96%).

Operating Profit in Q4 FY 12 stands at Rs.814.26 Cr; compared to Rs.825.93 Cr in Q3 FY 12 ( down by -1.41%); and compared to Rs.746.58 Cr in Q4 FY 12 (Up by 9.07%).

Provisions in Q4 FY 12 stands at Rs.337.72 Cr; compared to Rs.301.49 Cr in Q3 FY 12 ( up by 12.02%); and compared to Rs.269.50 Cr in Q4 FY 12 (Up by 25.31%).

Exceptional Items in Q3 FY12 amounts to Rs.122.22 Cr.  

Profit before tax in Q4 FY 12 stands at Rs.476.54  Cr; compared to Rs.402.22 Cr in Q3 FY 12 ( up by 18.48%); and compared to Rs.477.08 Cr in Q4 FY 12 (down by             -0.11%).

Tax Expense in Q4 FY 12 stands at Rs.125.28 Cr- compared to NIL in Q3 FY 12; and Rs.131.75 Cr (down by -4.91%) in Q4 FY 11.

Net Profit in Q4 FY 12 stands at Rs.351.26 Cr; compared to Rs.402.22 Cr in Q3 FY 12 ( down by -12.67%); and compared to Rs.345.33 Cr in Q4 FY 12 (Up by 1.72%).

Face Value of the share is Rs.10 and Paid-up Equity stands at Rs.148.13 Cr. Lower Equity is resulting in Huge EPS for Corporation Bank.

Capital Adequacy Ratio in Q4 FY 12 stands at 11.94%; compared to 12.34% in Q3 FY 12; and 12.9% in Q4 FY 11.

Basic EPS in Q4 FY 12 stands at Rs.23.71; compared to Rs.27.15 in Q3 FY 12; and Rs.24.05 in Q4 FY 12. Annual EPS for FY 12 is around Rs.102.5. The current Market price of the share is Rs.386; while the 52 week high price is Rs.595 and the 52 week low price  is Rs.335.

The PE Ratio on this basis works out to 3.77. Considering the relaxation of High Interest Rates by RBI and some upturn in credit environment and Growth, current year can see all Banking stocks performing better in FY 13.

 Gross/Net NPA  in Q4 FY 12 stands at Rs.869.38 Cr; compared to Rs.885.29 cr in Q3 FY 12 (down by -1.8%); and compared to Rs.397.74 cr ( up by 118.58%) in Q4 FY 12.

 % of Gross/Net NPA stands at 0.87%; compared to 0.96 in Q3 FY 12; and 0.46% in Q4 FY 11.

Return on Assets stands at 0.92% in Q4 FY 12; 1.12% in Q3 FY 12; and 1.12% in Q4 FY 11.

ANNUAL RESULTS REVIEW

FY 2012 vs FY 2011 vs Fy 2010

Interest on Advances in FY 2012 stands at Rs.9563.22  Cr ; compared to Rs.6474.99 cr in FY 2011(Up 47.69%); and compared to Rs.4979.20 Cr in FY 2010 (Up   92.06%).

Income on Investments   in FY 2012 stands at Rs.3070.33 Cr ; compared to Rs.2327.67 Cr in FY 2011(Up 31.91%); and compared to Rs.2091.43 Cr in FY 2010 (Up   46.81%).

Interest Earned in FY 2012 stands at Rs.13017.78 Cr ; compared to Rs.9135.04 Cr in FY 2011(Up 42.50%); and compared to Rs.7294.60 Cr in FY 2010 (Up  78.46%).

Total Income in FY 2012 stands at Rs.14524.56 Cr ; compared to Rs.10469.07 Cr in FY 2011(Up 38.74%); and compared to Rs.8489.40 Cr in FY 2010 (Up  71.09%). Increase in total income is quite impressive.

Interest Expended in FY 2012 stands at Rs.9870.57 Cr ; compared to Rs.6194.86 Cr in FY 2011(Up 59.33%); and compared to Rs.5083.23 Cr in FY 2010 (Up 94.18%).

Net Interest Income  in FY 2012 stands at Rs.3147.21 Cr ; compared to Rs.2940.18 Cr in FY 2011(Up 7.04%); and compared to Rs.2211.38 Cr in FY 2010 (Up 42.32%). NII has grown reasonably well in last 2 years.

Total Expdr(excl.provisions) in FY 2012 stands at Rs.11654.50 Cr ; compared to Rs.7836.87 Cr in FY 2011(Up 48.71%); and compared to Rs.6343.37 Cr in FY 2010 (Up 83.73%). Expenditure has grown more than proportionate to Income over the years.

Operating Profit in FY 2012 stands at Rs.2870.05 Cr ; compared to Rs.2632.20 Cr in FY 2011(Up 9.04%); and compared to Rs.2146.03 Cr in FY 2010 (Up   33.74%). Increase in OPT is reasonable over last 2 years.

Provisions  in FY 2012 stands at Rs.950.45 Cr ; compared to Rs.688.76 Cr in FY 2011(Up 37.99%); and compared to Rs.474.43 Cr in FY 2010 (Up 100.34%). Provisions have thus increased heavily over the last 2 years.

Profit before tax in FY 2012 stands at Rs.1919.60 Cr ; compared to Rs.1943.44 Cr in FY 2011( down -1.23%); and compared to Rs.1671.61 Cr in FY 2010 (Up  14.84%). The excessive provisions have brought down the PBT

Tax Expense in FY 2012 stands at Rs.401.21 Cr ; compared to Rs.523.32 Cr in FY 2011(down  -23.33%); and compared to Rs.490.26 Cr in FY 2010 (down -18.16%).

Consolidated NPT in FY 2012 stands at Rs.1518.39 Cr ; compared to Rs.1420.12 Cr in FY 2011(Up 6.92%); and compared to Rs.1181.35 Cr in FY 2010 (Up 28.53%). Lower Tax expense has helped Consolidated  NPT to grow to reasonable levels.

Reserves in FY 2012 stands at Rs.8197 Cr ; compared to Rs.7053.38 Cr in FY 2011(Up 16.21%); and compared to Rs.5713.49 Cr in FY 10 (Up 43.47%).

Capital Adequacy Ratio stands at 12.06% in FY 12; compared to 13.04% in FY 11; and 15.18% in FY 10.

Basic EPS in FY 2012 stands at Rs.102.5; compared to Rs.98.98 in FY 11; and Rs.82.36 in FY 10.

Gross/Net NPA stands at Rs.869.39 Cr in FY 12; against Rs.397.74 Cr in FY 11; and Rs.197.25 Cr in FY 10.

% of Gross/Net NPA has increased to 0.87% in FY 12;  compared to 0.46% in FY 11; and 0.31% in FY 10. The increase in current year is sizeable – but still, the percentage is within reasonable limits compared to Many other Banks.

Return on Assets stands at 1.06% in FY 12; 1.11% in FY 11; and 1.19% in FY 10.  ROA is impressive.

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CORPORATION BANK = RESULTS FOR = Q1 FY 2012 (Q/E JUNE 2011) = LACK LUSTRE =

Corporation Bank

NSE Symbol     CORPBANK

The Results of Corporation Bank for Q1 FY 2012 are DISAPPOINTING.

Interest on Advances has gone up to Rs.2204.16 cr – against Rs.1882.26 cr in Q4 FY 11; and Rs.1392.05 cr in Q1 FY 11

Income on Investments has also gone up to Rs.659.52 cr in Q1 FY 12 – against Rs.590.91 cr in Q4 FY 11; and Rs.576.02 cr in Q1 FY 11.

Total Income, therefore has gone up to Rs.3268.01 cr – up by 7.3% from Q4 FY 11; and up by 42.47% from Q1 FY 11.

Net Interest Income however stands at Rs.707.56 cr – down from Rs.761.75 cr in Q4 FY11; and up marginally from Rs.697.59 cr in Q1 FY 11.

Total Expenditure (excl. provisions) has gone up very steeply to Rs.2691.60 cr in Q1 FY 12 – from Rs.2299.20 Cr in Q4 FY 11; and from Rs.1673.46 cr in Q1 FY 11.

Operating Profit  has therefore come down to Rs.576.41 cr – down by 22.79% from Q4 FY 11; and also down by 7.09% from Q1 FY 11.

Provisions in Q1 FY 12 amount to Rs.167.26 cr –down from Rs.269.49 cr in Q4 FY 11; and Up from 126.61 cr in Q1 FY 11.

Profit before tax amounts to Rs.409.15 cr – down by 14.24% from Q4 FY 11; and also down by 17.14% from Q1 FY 11.

Net Profit  comes to Rs.351.45 cr – up by 1.77% from Q4 FY 11; and up by 5.29% from Q1 FY 11.

Capital Adequacy Ratio   stands at 13.52

Basic EPS on a face value of rs.10 stands at Rs.23.73 – against Rs.24.05 in Q4 FY 11; and Rs.23.27 In Q1 FY 11.

Gross/Net NPA is Rs.411.54 cr – against Rs.397.74 cr in Q4 FY 11; and rs.275.76 in Q1 FY 11.

 % of Gross/Net NPA is reasonable at 0.52, though it is increasing QoQ

Return on Assets is good  at 1.04

OTHER DETAILS :

Total Business: Total Business of the Bank as on 30.06.11 stood at `196686 crore. The total business increased by `40846 crore from `155,840 crore in June 2010. The business growth recorded is 26.21% on y-o-y basis.

Deposits: Total Deposits of the Bank increased to `117782 crore from `91,035 crore as on 30.06.10 recording a growth of 29.38% on y-o-y basis.

Advances: The y-o-y growth in Advances was 21.76% from `64,805 crore as on June’10 to `78904 crore as on June’11.

Yield on Advances: Yield on advances increased to 11.15% p.a. for the quarter ended June ’11 as compared to 9.38% as at June ’10.

Net Interest Margin (NIM) stood at 2.10%

Over all, this quarter has not produced any improvement in profitability for Corporation Bank. At OPT and PBT stages also – profits were down compared to earlier quarters. Lower Tax expense has resulted in slight improvement in NPT. It is an efficient performing Bank and Hopefully - future quarters may produce its usual , expected improvements in all parameters.

ANNOUNCEMENTS TO NSE

28-07-2011          Corporation Bank standalone Results for the quarter ended on 30-JUN-2011 as follows: Interest earned of Rs. 297832.07 lacs for the quarter ending on 30-JUN-2011 against Rs. 202775.47 lacs for the quarter ending on 30-JUN-2010. Interest expended of Rs. 227076.12 lacs for the quarter ending on 30-JUN-2011 against Rs. 133016.28 lacs for the quarter ending on 30-JUN-2010. Net Profit / (Loss) of Rs. 35145.13 lacs for the quarter ending on 30-JUN-2011 against Rs. 33378 lacs for the quarter ending on 30-JUN-2010.        

14-07-2011          Corporation Bank has revised its Benchmark Prime Lending Rate (COBAR) from 13.85% p.a. to 14.50% p.a. with effect from July 15, 2011.

30-06-2011          Corporation Bank has revised the Base Rate for lending from 9.90% p.a. to 10.25% p.a. with effect from July 01, 2011.

10-05-2011          Corporation Bank has revised its Benchmark Prime Lending Rate (COBAR) from 13.60% p.a. to 13.85% p.a. and the Base Rate for lending from 9.40% p.a. to 9.90% p.a. with effect from May 17, 2011.

29-04-2011          Corporation Bank has recommended a dividend of Rs.20/- per share of Rs.10/- each for the year 2010-11 subject to the approval of the Government of India and declaration of the same by the Shareholders of the Bank in the ensuing Annual General Meeting.

29-04-2011          Corporation Bank consolidated Results for the year ended on 31-MAR-2011 as follows: Interest earned of Rs. 913503.8 lacs for the year ending on 31-MAR-2011 against Rs. 729460.41 lacs for the year ending on 31-MAR-2010. Interest expended of Rs. 619485.72 lacs for the year ending on 31-MAR-2011 against Rs. 508322.57 lacs for the year ending on 31-MAR-2010. Net Profit / (Loss) of Rs. 142011.97 lacs for the year ending on 31-MAR-2011 against Rs. 118134.81 lacs for the year ending on 31-MAR-2010.

29-04-2011          Corporation Bank standalone Results for the year ended on 

31-MAR-2011 as follows: Interest earned of Rs. 913524.82 lacs for the year ending on 31-MAR-2011 against Rs. 729460.41 lacs for the year ending on 31-MAR-2010. Interest expended of Rs. 619550.53 lacs for the year ending on 31-MAR-2011 against Rs. 508434.65 lacs for the year ending on 31-MAR-2010. Net Profit / (Loss) of Rs. 141326.79 lacs for the year ending on 31-MAR-2011 against Rs. 117025.12 lacs for the year ending on 31-MAR-2010.

RESULTS TABLE

CORP BANK	30-Jun-11	31-Mar-11	30-Jun-10
Interest on Advances	220416.33	188225.77	139204.85
Income on Investments	65952.16	59091.04	57602.27
Income on Balances With RBI	461.77	435.18	49.74
Others	11001.81	7784.1	5918.61
Interest Earned	297832.07	255536.09	202775.47
Other Income	28969.25	49042.05	26610.18
Total Income	326801.32	304578.14	229385.65
Total Income	326801.32	7.3	42.47
Interest Expended	227076.12	179360.62	133016.28
NII	70755.95	76175.47	69759.19
Employees Cost	21511.35	29957.13	17076.86
Other Operating Expenses	20572.99	20602.48	17253.34
Operating Expenses	42084.34	50559.61	34330.2
Total Expenditure excl. provisions	269160.46	229920.23	167346.48
Operating Profit	57640.86	74657.91	62039.17
Provisions	16725.61	26949.82	12661.17
Profit before tax	40915.25	47708.09	49378
Tax Expense	5770.12	13175	16000
Net Profit	35145.13	34533.09	33378
Face Value (in Rs.)	10	10	10
Paid-up Equity Share Capital	14813.08	14813.06	14343.79
Capital Adequacy Ratio	13.52	12.9	14.96
Basic EPS	23.73	24.05	23.27
Gross/Net NPA	41153.94	39774.35	27576.42
% of Gross/Net NPA	0.52	0.46	0.43
Return on Assets	1.04	1.12	1.25
Public Holding (%)	0	41.48	42.83

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CORPORATION BANK = Q4 & FY 2011 RESULTS = Q4 NPT UP 11% YoY = Q1 FY 12 COULD IMPROVE WELL FOR PSBs

CORPORATION BANK

RESULTS FOR FOURTH QTR, FY 2011

Corporation Bank has declared its Results for the4th quarter and for FY 2011.

Interest on Advances for Q4 FY 11 is Rs.1882.26 cr – up by       9.34% from Q3 FY 11; up by 27.22% from Q2 FY 11; Up by 35.21% from Q1 FY 11; and up by 44.65% from Q4 FY 10.

Income on Investments        fir Q4 FY 11 is : Rs.590.91 cr – which is down by 6.33% from Q3 FY11; down by 2.68% from Q2 FY 11; Up by 2.58% from Q1 FY 11; and up by 7.21% from Q4 FY 10.

Total Income for Q4 FY 11 is Rs.3045.78 cr – up by 11.33% from Q3 FY 11; up by 27.75% from Q2 FY 11; up by 32.78% from Q1 FY 11; up by 38.77% from Q4 FY 10.

N I I is Rs.761.75 cr – down by 9.57% from Q3 FY11; up by 6.5% from Q2 FY 11; up by 9.2% from Q1 FY 11; and up by 19.07% from Q4 FY 10.

Total Expenditure(excl. provisions) is Rs.2299.20 cr – up by 15.03% from Q3 FY 11; up by 26.97% from Q2 FY 11; up by 37.39% from Q1 FY 11; and up by 39.36% from Q4 FY 10. Thus, expenditure has gone up more than proportionately in this quarter. Employees Cost and Operating Expenses are the main expenditure components which have registered huge increases. As in the case of other Banks – this can be presumed to be additional one time component of the expense on gratuity, pension liability etc. We may therefore watch for next Qtr result for all PSBs – which may show significant improvement in profitability.

Operating Profit is Rs.746.58 cr – up by 1.31% from Q3 FY 11; up by 30.18% from Q2 FY 11; Up by  20.34% from Q1 FY 11; and up by 36.99% from Q4 FY 10.

Provisions in Q4 FY 11 is Rs.269.50 – up by 7.79% from Q3 FY 11; up by 176.03% from Q2 FY 11; up by 112.85% from Q1 FY 11; and up by 63.23% from Q4 FY 10.

Profit before tax  is Rs.477.08 cr – down by 2.02% from Q3 FY 11; Up by 0.26% from Q2 FY 11; down by 3.38% from Q1 FY 11; Up by 25.59% from Q4 FY 10.

Net Profit  is Rs.345.33 Cr – down by 9.7% from Q3 FY 11; down by 1.82%from Q2 FY 11; up by        3.46% from Q1 FY 11; and up by 10.57% from Q4 FY 10. As earlier said – for all PSBs, the next quarter results may not contain the one time component of the pension liabilities (as stated under Dena Bank earlier) and profitability may show good improvement from Q1 FY 12. 

The bank had to provide Rs 184 crore towards pension liabilities in the fourth quarter.

Capital Adequacy Ratio is reasonable at 12.9. The capital Adequacy is being increased by preferential issue of shares to GOI – at the rate of Rs.658.49 – against the current MP of Rs.577/-.  

Basic EPS for Q4 FY 11 is 24.05 – around the same as in first 3 Qtrs.

% of Gross/Net NPA is comfortable at 0.46.

Return on Assets is 1.12.

ANNUAL RESULTS
(ON CONSOLIDATED BASIS)

Interest on Advances for FY 11 is Rs.6475 Cr – up by 30.04% from FY 10

Income on Investments    for FY 11 is Rs.2327.67 Cr – up by 11.3% from FY 10.

Total Income for FY 11 is Rs.10469.07 Cr – up by 23.32% from FY 10.

N I I  for FY 11 is Rs.2940.18 Cr – up by 32.96% from  FY 10.

Total Expenditure( excl.prov) for FY 11 is Rs.7836.87 cr – up by  23.54% from FY 10.

Operating Profit for FY 11 is Rs.2632.20 cr – up by 22.65% from FY 10.

Provisions for FY 11 is Rs.688.76 cr – up by 45.18% from FY 10.

Profit before tax for FY 11 is Rs.1943.44 cr – up by 16.26% from FY 10.

Net Profit for FY 11 is Rs.1420.12 Cr – up by 20.21% from FY 10.

Dividend has been enhanced to 200% in FY 11, from 165% of FY 10.

Basic EPS for FY 11 is Rs.98.98 – against Rs.82.36 of FY 10. Current MP is Rs.577. The PE Ratio works out to a Low of 5.83. It is time, that all Banks are re-rated by the Market.

Corporation Bank will open about 200 new branches in the current financial year.

Deposits of the bank grew by 26 per cent to Rs 1,16,748 crore in FY 2011.  

Advances grew by 37.42 per cent to Rs 86,850 crore. 

Current account savings account (CASA) ratio stood at over 25 %.. The bank wants to increase its CASA deposit to 30 % in FY 12.

ANNOUNCEMENTS TO NSE

29-04-2011        consolidated Results for the year ended on 31-MAR-2011 as follows: Interest earned of Rs. 913503.8 lacs for the year ending on 31-MAR-2011 against Rs. 729460.41 lacs for the year ending on 31-MAR-2010. Interest expended of Rs. 619485.72 lacs for the year ending on 31-MAR-2011 against Rs. 508322.57 lacs for the year ending on 31-MAR-2010. Net Profit / (Loss) of Rs. 142011.97 lacs for the year ending on 31-MAR-2011 against Rs. 118134.81 lacs for the year ending on 31-MAR-2010.

29-04-2011        standalone Results for the year ended on 31-MAR-2011 as follows: Interest earned of Rs. 913524.82 lacs for the year ending on 31-MAR-2011 against Rs. 729460.41 lacs for the year ending on 31-MAR-2010. Interest expended of Rs. 619550.53 lacs for the year ending on 31-MAR-2011 against Rs. 508434.65 lacs for the year ending on 31-MAR-2010. Net Profit / (Loss) of Rs. 141326.79 lacs for the year ending on 31-MAR-2011 against Rs. 117025.12 lacs for the year ending on 31-MAR-2010.

29-03-2011        "Allotment of 46,92,554 Equity Shares on Preferential basis to Government of India".

15-03-2011        the shareholders have resolved and approved the following as a Special Resolution : (1) To issue 46,92,554 equity shares of the face value of Rs.10/- each of the Bank at a premium of Rs.648.49 per share i.e. at an issue price of Rs.658.49 per share, to the Government of India i.e. the Promoter, in the name of the President of India, subject to compliance of Chapter VII of the SEBI (ICDR) Regulations, 2009 and subject to necessary approvals.

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