ING Vysya Bank Q3 operating profit up 37%; YTD operating profit up 43%
Bangalore, January 21, 2010:
ING Vysya Bank announced its unaudited financial results for the quarter and nine months ended 31 December 2009 following the approval by its Board of Directors at their meeting held in Bangalore today.
The Net Profit (PAT) of the bank for the quarter ended 31 December 2009 increased by 16% to Rs. 60.6 crores compared to Rs. 52.1 crores reported in the corresponding quarter of the previous year. Operating profit increased by 37% to Rs. 145.8 crores from Rs. 106.5 crores. Net Interest Income (NII) increased by a robust 27% to Rs. 219.4 crores from Rs. 172.7 crores with Net Interest Margin (NIM) at 3.4% compared to 2.9% for the quarter ended 31 December 2008 and 3.1% for the quarter ended 30 September 2009. This was achieved on the back of significant improvement in the cost of deposits which improved to 5.0% in the current quarter from 7.5% for the quarter ended December 2008 and 5.5% for the quarter ended 30 September 2009. Total income increased to Rs. 349.7 crores from Rs. 321.8 crores in the corresponding quarter of previous year. Operating costs decreased to Rs. 204.0 crores for the period under review from Rs. 215.3 crores reported in the corresponding quarter of the previous year. The Cost Income ratio improved to 58.3% from 66.9% in the quarter ended 31 December 2008. Provisions and contingencies for the current quarter were at Rs. 52.8 crores.
The Net Profit of the Bank for the nine months ended 31 December 2009 increased by 25% to Rs. 174.3 crores from Rs. 139.7 crores reported in the corresponding period ended 31 December 2008. Profit before tax (PBT) increased by 23% to Rs. 267.4 crores from Rs. 218.1 crores and Operating profit increased by 43% to Rs. 431.5 crores from Rs. 302.8 crores. Total income increased by 15% to Rs. 1,024.3 crores from Rs. 887.8 crores reported for the period ended 31 December 2008. Net Interest Income (NII) increased by 20% to Rs. 582.7 crores from Rs. 487.2 crores and Fee & Other Income increased by 10% to Rs. 441.6 crores from Rs. 400.6 crores. Fee & Other Income for the quarter ended 31 December 2009 was however lower at Rs.130.3 crores compared to Rs.149.1 crores in the corresponding quarter of the previous year due to lower treasury income. Provisions and contingencies for the nine months were higher at Rs. 164.1 crores against Rs. 84.7 crores in the previous year. This includes certain one time provisions and additional provision made to enhance the provision cover. Continued improvement in productivity resulted in operating expenses growing marginally to Rs. 592.8 crores for the nine month ended 31 December 2009 compared to Rs. 585.0 crores in the previous year which resulted in the cost income ratio improving significantly to 57.9% from 65.9%.
Commenting on the results, Managing Director, Shailendra Bhandari said: “We continue our focus on expanding our national footprint, increasing our customer base and acquiring low cost deposits with customer
centric products and services. This quarter, we started to see some increase in credit off-take and are pleased to report a sequential credit growth of over 7% in the December quarter over September. There has also been continued improvement in key operating parameters particularly Net Interest Margin (sequential growth to 3.4% in the December quarter up from 3.1% in the September quarter) and have also seen substantial improvement in our provision coverage ratio.”
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(This is a press release from ING Vysya Bank)