KARNATAKA BANK Announces Quarterly Results (3QFY20); Net Profit Down 12.3%

Mon, 20 Jan

KARNATAKA BANK has announced its results for the quarter ended December 2019. Here is a detailed performance review of the same:

KARNATAKA BANK Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-18*	3 Sep-19*	3 Dec-19*	QoQ Change	YoY Change
Operating income	Rs m	15,144	16,296	16,216	-0.5%	7.1%
Other income	Rs m	3,014	3,088	4,021	30.2%	33.4%
Total revenues	Rs m	18,158	19,384	20,237	4.4%	11.4%
Interest	Rs m	10,265	11,309	11,138	-1.5%	8.5%
Gross Profit	Rs m	4,880	4,987	5,078	1.8%	4.1%
Other expenses	Rs m	3,890	3,941	4,081	3.6%	4.9%
Profit before tax	Rs m	1,914	1,510	1,871	23.9%	-2.2%
Tax	Rs m	510	451	640	41.7%	25.5%
Profit after tax	Rs m	1,404	1,059	1,231	16.3%	-12.3%
Gross profit margin	%	32.2	30.6	31.3
Effective tax rate	%	26.6	29.9	34.2
Net profit margin	%	9.3	6.5	7.6

Year-on-Year Performance:

• The bank's operating income (interest earned) during the quarter grew 7.1% on a year-on-year (YoY) basis. The interest expended was up by 8.5% YoY during the same period.
• The bank's operating profit increased by 4.1% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 31.3% in 3QFY20 as against 32.2% in 3QFY19.
• Other income increased by 33.4% YoY during the quarter.
• Net profit for the quarter declined by 12.3% YoY. Net profit margins during the quarter declined from 9.3% in 3QFY19 to 7.6% in 3QFY20.

Quarter-on-Quarter Performance:

• The bank's operating income (interest earned) during the quarter fell 0.5% on a quarter-on-quarter (QoQ) basis. The interest expended was down by 1.5% QoQ during the same period.
• The bank's operating profit increased by 1.8% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 31.3% in 3QFY20 as against 30.6% in 2QFY19.
• Net profit for the quarter increased by 16.3% QoQ, while net profit margins increased from 6.5% in 2QFY19 to 7.6% in 3QFY20.

To see how KARNATAKA BANK has performed over the last eight quarters,please visit here.

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KARNATAKA BANK Share Price Performance

Over the last one year,KARNATAKA BANK share price has moved down from Rs 121.6 to Rs 74.6, registering a Loss of Rs 47.0 or around 38.6%.

Meanwhile, the S&P BSE BANKEX is trading at Rs 35,858.8 (down 0.5%). Over the last one year it has moved up from 30,739.8 to 35,858.8, a gain of 5,119 points (up 16.7%).

Overall, the S&P BSE SENSEX is up 14.7% over the year.

Current Valuations

At the current price of Rs 74.6, the price to earnings (P/E) ratio of KARNATAKA BANK stands at 4.5 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 0.4 times.