ANDHRA BANK - RESULTS - FOR Q2 FY 2012-13 - Q/E DEC,2012. - TOTAL INCOME UP 10%; NET PROFIT DOWN 15%; YoY; NPAS UP 115% YoY

ANDHRA BANK

RESULTS FOR Q2 FY 2012-13

Q/E DEC,2012.

ANDHRA BANK has declared mediocre results for the third quarter ending December, 2012.

Interest on Advances    for Q3 FY 2013 stands at Rs.2611.08 Cr; compared to Rs.2550.90 Cr  in Q2 FY 13 (+2.36%) ; and Rs. 2390.61Cr in Q3 FY 12 (9.22%).

Income on Investments for Q3 FY 2013 stands at Rs.602.99 Cr; compared to Rs.602.27 Cr  in Q2 FY 13 (+0.12%) ; and Rs.498.63 Cr in Q3 FY 12 (+20.93%).

Income on Balances With RBI for Q3 FY 2013 stands at Rs.16.98 Cr; compared to Rs.27.34 Cr  in Q2 FY 13 (-37.89%) ; and Rs.33.76 Cr in Q3 FY 12 (-49.7%).

Interest Earned      for Q3 FY 2013 stands at Rs.3231.05 Cr; compared to Rs.3198.16       Cr  in Q2 FY 13 (+1.03%) ; and Rs.2923.00 Cr in Q3 FY 12 (+10.54%).

Other Income for Q3 FY 2013 stands at Rs.238.16 Cr; compared to Rs.219.46  Cr  in Q2 FY 13 (+8.52%) ; and Rs.235.26 Cr in Q3 FY 12 (+ 1.23%).

Total Income for Q3 FY 2013 stands at Rs.3469.21 Cr; compared to Rs.3417.62 Cr  in Q2 FY 13 (+1.51%) ; and Rs.3158.26 Cr in Q3 FY 12 (+     9.85%).

Interest Expended for Q3 FY 2013 stands at Rs.2259.67Cr; compared to Rs.2304.41Cr  in Q2 FY 13 (-1.94%) ; and Rs.1939.15 Cr in Q3 FY 12 (+16.53%).

Employees Cost     for Q3 FY 2013 stands at Rs.312.06 Cr; compared to Rs.296.95 Cr  in Q2 FY 13 (+5.09%) ; and Rs.284.70 Cr in Q3 FY 12 (+9.61%).

Other Operating Expenses   for Q3 FY 2013 stands at Rs.185.39 Cr; compared to Rs.178.15   Cr  in Q2 FY 13 (+4.06%) ; and Rs. 166.81 Cr in Q3 FY 12 (+11.14%).

Operating Expenses      for Q3 FY 2013 stands at Rs.497.45Cr; compared to Rs.475.10 Cr  in Q2 FY 13 (+4.7%) ; and Rs.451.51 Cr in Q3 FY 12 (+10.17%).

Total Expenditure excluding provisions      for Q3 FY 2013 stands at Rs.2757.12 Cr; compared to Rs.2779.51Cr  in Q2 FY 13 (-0.81%) ; and Rs.2390.66 Cr in Q3 FY 12 (+15.33%).

Operating Profit     for Q3 FY 2013 stands at Rs.712.09 Cr; compared to Rs.638.11 Cr  in Q2 FY 13 (+11.59%) ; and Rs.767.60 Cr in Q3 FY 12 (-7.23%).

Profit before Interest, Dep. & Taxes   for Q3 FY 2013 stands at Rs.712.09 Cr; compared to Rs.638.11 Cr  in Q2 FY 13 (+11.59%) ; and Rs.767.60 Cr in Q3 FY 12 (-7.23%).

Provisions  for Q3 FY 2013 stands at Rs.285.00 Cr; compared to Rs.139.48 Cr  in Q2 FY 13 (+ 104.33%); and Rs.309.43 Cr in Q3 FY 12 (-7.9%).

Profit before tax    for Q3 FY 2013 stands at Rs.427.09Cr; compared to Rs.498.63 Cr  in Q2 FY 13 (-14.35%) ; and Rs.458.17 Cr in Q3 FY 12 (-6.78%).

Tax Expense   for Q3 FY 2013 stands at Rs.170.00 Cr; compared to Rs.173.00 Cr  in Q2 FY 13 (-1.73%) ; and Rs.155.00 Cr in Q3 FY 12 (+9.68%).

Net Profit  for Q3 FY 2013 stands at Rs.257.09 Cr; compared to Rs.325.63 Cr  in Q2 FY 13 (-21.05%) ; and Rs.303.17 Cr in Q3 FY 12 (-15.2%).

Face Value is Rs.10.  Paid-up Equity stands at Rs.559.58 Cr.

Capital Adequacy Ratio for Q3 FY 2013 stands at 11.64%; compared to 12.15 % in Q2 FY 13; and 12.08% in Q3 FY 12.

Basic EPS        for Q3 FY 2013 stands at Rs.4.59; compared to Rs.5.82 in Q2 FY 13; and Rs.5.42 in Q3 FY 12.  

  

Gross/Net NPA      for Q3 FY 2013 stands at Rs.2023.32 Cr; compared to Rs.1830.59 Cr  in Q2 FY 13 (+10.53%) ; and Rs.943.27 Cr in Q3 FY 12 (+114.5%).

% of Net NPA for Q3 FY 2013 stands at 2.29%; compared to 2.16% in Q2 FY 13; and 1.21% in Q3 FY 12.

Return on Assets   for Q3 FY 2013 stands at 0.79%; compared to 1.02% in Q2 FY 13; and 1.07% in Q3 FY 12.

Public Shareholding stands at 42%

CURRENT MARKET PRICE :    Rs.109.70  

52 week high/low price : 138.45/87.60

Performance Highlights

for the Q3 FY 2012-13 and 9M

FY 2012-13 ended December 2012

TOTAL BUSINESS :

• Total Business of the Bank stood at Rs 2,02,740 Crore, recording a Y-o-Y

growth of 14.0% over Rs 1,77,850 Crore at the end of Dec’11. 

• Deposits at the end of Dec’12 stood at Rs 1,12,448 Crore as compared to

Rs 98,680 Crore at the end of Dec’11, registering a Y-o-Y growth of 14.0%. 

• Advances recorded a Y-o-Y growth of 14.0% to reach Rs 90,29 2 Crore at the  end of Dec’12 against Rs 79,169 Crore at the end of Dec’11. 

• CASA Deposits increased to Rs 29,265 Crore at the end of Dec’12 from

Rs 26,261 Crore at the end of Dec’11, recording a Y-o-Y growth of 11.4%. 

• CASA share in Total Deposits at the end of Dec’12 stood at 26.0%.

INCOME

• Total Income during 9M FY’12-13 increased to Rs 10,244 Crore, recording a Y-o-Y growth of 14.2%.

·       Total Business crossed the Rs 2,00,000 Crore Mark registering a Y-o-Y Growth of 14.0%  

• Other Income during 9M FY’12-13 increased to Rs 693 Crore, recording a Y-o-Y growth of 10% over 9M FY’11-12.

PROFIT

• Operating Profit for 9M FY’12-13 stood at Rs 2,054 Crore as against Rs 2,154 Crore during 9M FY’11-12. 

• Net Profit for 9M FY’12-13 stood at Rs 945 Crore as against Rs 1,005 Crore for 9M FY’11-12.

IMPORTANT RATIOS

• Gross NPA ratio stood at 3.66% while Net NPA ratio stood at 2.29% for  Dec’12 respectively. 

• Net Interest Margin (NIM) stood at 3.35% for Q3 FY’12-13 and 3.27% for 9M FY’12-13. 

• Return on Assets stood at 0.79% for Q3 FY’12-13 and 0.99% for 9M of FY’12-13. 

• Cost of Deposits stood at 7.77% for Q3 FY’12-13 and 7.84% for 9M FY ’12- 13 respectively. 

• Yield on Advances stood at 12.05% for Q3 FY12’13 and 12.06% for 9M  FY’12-13. 

• Cost to Income ratio stood at 41.13% for Q3 FY’12-13 and 41.28% for 9M FY’12-13. 

• Earnings Per Share was at Rs 16.88 for the 9 month period ended Dec’12. 

• Book Value per Share improved to Rs 145.16 in Dec’12 from Rs 126.02 in Dec’11. 

• CRAR of the Bank stood at 11.86% under BASEL-II (Tier-I Capital: 8.06%;  Tier-II Capital: 3.80%).

ASSET QUALITY

• Gross NPAs of the Bank stood at Rs 3301.96 Crore and the Gross NPAs to Gross Advances Ratio stood at 3.66% for the period ended Dec’12. 

·       Net NPAs  stood at Rs 2023.32 Crore and the Net NPAs to Net Advances Ratio stood at 2.29% for Dec’12.

DELIVERY CHANNELS

• During the Current FY, the Bank has opened 104 Branches and added 116 ATMs taking the PAN India presence to 3,040 Delivery Channels consisting of 1,816 Branches, 15 Extension Counters, 37 Satellite Offices and 1,172 ATMs.

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ANDHRA BANK - RESULTS - FOR Q4 FY 12 - FY 2012 - INCREASE IN REVENUES GOOD - NPAS NEED CHECK

ANDHRA BANK

ANDHRA BANK has released its financial results for Q4 FY 12 And FY 2012.

Review of Annual Results

(Non-Consolidated)

FY 2012, FY 2011, and FY 2010.

Interest on Advances for FY 12 stand at Rs.9278.24 Cr; up by 38.71% from FY 11 (Rs.6689.17 Cr); and up by 79.77% from FY 10 (Rs.5161.28 Cr).

Income on Investments   for FY 12 stand at Rs.1973.53 Cr; up by  28.19% from FY 11 (Rs.1539.59 Cr); and up by 66.08% from FY 10 (Rs.1188.32 Cr).

Interest Earned     for FY 12 stand at Rs.11338.73 Cr; up by  36.75% from FY 11 (Rs.8291.28 Cr); and up by 77.92% from FY 10 (Rs.6372.87 Cr).

Other Income        for FY 12 stand at Rs.859.93 Cr; down by -4.13% from FY 11 (Rs.896.96 Cr); and down by -10.85% from FY 10 (Rs.964.62 Cr).

Total Income for FY 12 stand at Rs.12198.66 Cr; up by 32.76% from FY 11 (Rs.9188.23 Cr); and up by 66.25% from FY 10 (Rs.7337.49 Cr). The improvement in income is very good.

Interest Expended for FY 12 stand at Rs.7579.41 Cr; up by 49.49% from FY 11 (Rs.5070.30 Cr); and up by 81.41% from FY 10 (Rs.4178.13 Cr).

Net Interest Income for FY 12 stand at Rs.3759.32 Cr; up by 16.71% from FY 11 (Rs.3220.97 Cr); and up by 71.29% from FY 10 (Rs.2194.74 Cr). NII has improved well in last 2 years.

Total Expenditure(excl.provisions) for FY 12 stand at Rs.9383.66 Cr; up by 38.5% from FY 11 (Rs.6775.17 Cr); and up by 69.76% from FY 10 (Rs.5527.67 Cr). Increase in Expenditure is proportionately slightly more compared to increase in Income.

Operating Profit for FY 12 stand at Rs.2815 Cr; up by 16.66% from FY 11 (Rs.2413.06 Cr); and up by 55.54% from FY 10 (Rs.1809.82 Cr). At the OPT level, the increase is reasonably healthy YoY for last 2 years.

Provisions for FY 12 stand at Rs.990.73 Cr; up by 53.37% from FY 11 (Rs.645.99 Cr); and up by 164.92% from FY 10 (Rs.373.97 Cr). Provisions have gone up very steeply over last 2 years.

Profit before tax for FY 12 stand at Rs.1824.27 Cr; up by 3.24% from FY 11 (Rs.1767.07 Cr); and up by 27.05% from FY 10 (Rs.1435.85 Cr).

Tax Expense for FY 12 stand at Rs.479.60 Cr; down by -4.08% from FY 11 (Rs.500 Cr); and up by 22.97% from FY 10 (Rs.390 Cr).

Net Profit for FY 12 stand at Rs.1344.67 Cr; up by 6.12% from FY 11 (Rs.1267.07 Cr); and up by 28.57% from FY 10 (Rs.1045.85 Cr).

Reserves  for FY 12 stand at Rs.6919.81 Cr; up by 16.64% from FY 11 (Rs.5932.84 Cr); and up by 76.30% from FY 10 (Rs.3925.0 Cr).

Face Value is Rs.10; Paid-up Equity is Rs.559.58 Cr

Gross/Net NPA      for FY 12 stand at Rs.755.85 Cr; up by 176.18% from FY 11 (Rs.273.68 Cr); and up by 689.65% from FY 10 (Rs.95.72 Cr). The increase in %of Net NPAs is very steep over last 2 years – this, along with steep increase in provisions indicates deteriorating quality of assets.

% of Gross/Net NPA in FY 12 is 0.91%; compared to 0.38% in FY 11; and  0.17% in FY 10. While the increase in % of Net NPAs is huge; even at current levels, the Position of NPAs in Andhra Bank is much better than many other banks – being less than 1% even now.

Return on Assets is very good at 1.19%, though reduced from 1.36% in FY 11 and 1.39% in FY 10.

Capital Adequacy Ratio is good at 12.34% ; against 13.48% in FY 11; and  13.3% in FY 10.

Basic EPS for FY 12 stand at Rs.24.03; against Rs.26.05 in FY 11; and Rs.21.56% in FY 10.

Current Market Price of the Share is Rs.116; while the 52 week high price is Rs.148; and the 52 week low price  is Rs.76.50.

On this basis, the PE Ratio works out to 4.83.

Andhra Bank has been improving its Business quite well. Its Net Interest Margin is very good at over 3.3% always. All other ratios are good. 

The asset quality has however not been good in last 2 quarters. If this improves, its performance will register significant uptrend. Its Income and expenditure performance – but for NPAs – has been impressive. Its proposed expansion by 200 branches in current year also is impressive. With its CAR Ratio, it can clock good revenues in FY 13, but needs to keep the NPAs in check.

QUARTERLY RESULTS REVIEW

Interest on Advances in Q4 FY 12 stands at Rs.2429.97 Cr; up 1.65% from Q3 FY 12 (Rs.2390.61 Cr); and up 26.71% from Q4 FY 11 (Rs.1917.76).

Income on Investments   in Q4 FY 12 stands at Rs.545.40 Cr; up 9.38% from Q3 FY 12 (Rs.498.63   Cr); and up 33.42% from Q4 FY 11 (Rs.408.77.25 Cr).

Interest Earned     in Q4 FY 12 stands at Rs.2998.98 Cr; up    2.6% from Q3 FY 12 (Rs.    2923 Cr); and up 26.89% from Q4 FY 11 (Rs.2363.50 Cr).

Total Income in Q4 FY 12 stands at Rs.3228.90 Cr; up 2.24% from Q3 FY 12 (Rs.3158.26 Cr); and up 21.27% from Q4 FY 11 (Rs.2662.47 Cr).

Interest Expended in Q4 FY 12 stands at Rs.2085.13 Cr; up 7.53% from Q3 FY 12 (Rs.1939.15 Cr); and up 38.83% from Q4 FY 11 (Rs.1501.96 Cr).

Net Interest Income in Q4 FY 12 stands at Rs.913.85 Cr; down -7.11% from Q3 FY 12 (Rs.          983.85 Cr); and up 6.07% from Q4 FY 11 (Rs.861.54 Cr).

Total Expenditure(excl. provisions) in Q4 FY 12 stands at Rs.2567.95 Cr; up 7.42% from Q3 FY 12 (Rs.2390.66 Cr); and up 31.62% from Q4 FY 11 (Rs.1950.97Cr).

Operating Profit  in Q4 FY 12 stands at Rs.660.95 Cr; down -13.89% from Q3 FY 12 (Rs.767.60 Cr); and down -7.11% from Q4 FY 11 (Rs.711.50 Cr).

Provisions in Q4 FY 12 stands at Rs.243.68 Cr; down -21.25% from Q3 FY 12 (Rs.309.43 Cr); and down -19.5% from Q4 FY 11 (Rs.302.72 Cr).

Profit  before tax in Q4 FY 12 stands at Rs.417.27 Cr; down -8.93% from Q3 FY 12 (Rs.458.17 Cr); and up 2.08% from Q4 FY 11 (Rs.408.78 Cr).

Tax Expense in Q4 FY 12 stands at Rs.77.60 Cr; down -49.94% from Q3 FY 12 (Rs.155 Cr); and down -19.17% from Q4 FY 11 (Rs.96 Cr).

Net Profit in Q4 FY 12 stands at Rs.339.67 Cr; up  12.04% from Q3 FY 12 (Rs.303.17 Cr); and up 8.6% from Q4 FY 11 (Rs.312.78 Cr).

Capital Adequacy Ratio stands at 12.34% in Q4 FY 12; 12.08% in Q3 FY 12; and 13.48% in Q4 FY 11.

Basic EPS stands at Rs.6.07 in Q4 FY 12; Rs.5.42 in Q3 FY 12; and Rs.6.37 in Q4 FY 11.

Gross/Net NPA in Q4 FY 12 stands at Rs.755.85 Cr; down -19.87% from Q3 FY 12 (Rs.943.27 Cr); and up 176.18% from Q4 FY 11 (Rs.273.68 Cr).There is a Huge increase in NPAs in last 2 Qtrs compared to last year.

% of Gross/Net NPA in Q4 FY 12 stands at 0.91%; compared to 1.21% in Q3 FY 12; and 0.38% in Q4 FY 11. The steep deterioration in asset quality has reduced the Profits.

Return on Assets in Q4 FY 12 stands at 1.13% in Q4 FY 12; 1.07% in Q3 FY 11; and 1.22% from Q4 FY 11.

Performance Highlights

for Q4 FY 2012 & 12M FY 2012

• Total Business stood at Rs.1,90,535 Crore, recording a Y-o-Y growth of 16.0% over Rs.1,64,310 Crore in Mar’11.

• Deposits at end of Mar’12 stood at Rs.1,05,851 Crore; compared to Rs.92,156 Crore in Mar’11, a growth of 14.9% on Y-o-Y basis.

• Advances recorded a growth of 17.4% (Y-o-Y) reaching the level of Rs.84,684 Crore as on Mar’12 from Rs.72,154 Crore as on Mar’11.

• CASA Deposits increased to Rs.27,947 Crore in Mar’12 from Rs.26,779 Crore in Mar’11.

• CASA share in Total Deposits is 26.4% as at end of Mar’12.

IMPORTANT RATIOS

• Gross NPA ratio stood at 2.12% as at Mar’12 while Net NPA ratio is 0.91%.

• Net Interest Margin (NIM) stood at 3.34% for the quarter ended Mar’12 and 3.67% for 12 months ended Mar’12.

• Return on Assets stood at 1.13% in the Q4 of FY 2011-12 and at 1.19% for 12 Months ended Mar’12.

• Cost to Income ratio stood at 39.06 % in 12M FY 2011-12 as against 41.40% for 12 months of FY 2010-11.

• Earnings Per Share was Rs.24.03 for the period ended Mar’12.

• Board has recommended a dividend of Rs. 5.50 per equity share.

• Book Value per Share improved to Rs.124.59 in Mar’12 as against Rs.116.02 in Mar’11.

• CRAR of the Bank stood at 13.18% under BASEL-II (Tier-I Capital: 9.02%;

Tier-II Capital: 4.16%).

• During FY 2011-12, the Bank has opened 80 Branches taking the PAN India presence to 2821 Delivery Channels consisting of 1712 Branches, 15 Extension Counters, 38 Satellite Offices and 1056 ATMs.

The Bank says - it is considering to expand the branch network by opening about 200 branches on PAN India basis. It is also proposed to add about 200 ATMs.

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