ORIENTAL BANK Announces Quarterly Results (1QFY20); Net Profit Up 128.7%

Wed, 24 Jul

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

ORIENTAL BANK Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-18*	3 Mar-19*	3 Jun-19*	QoQ Change	YoY Change
Operating income	Rs m	42,692	47,537	49,198	3.5%	15.2%
Other income	Rs m	4,603	9,582	7,152	-25.4%	55.4%
Total revenues	Rs m	47,296	57,119	56,350	-1.3%	19.1%
Interest	Rs m	29,316	32,802	35,482	8.2%	21.0%
Gross Profit	Rs m	13,376	14,735	13,716	-6.9%	2.5%
Other expenses	Rs m	10,737	13,770	10,617	-22.9%	-1.1%
Profit before tax	Rs m	-8,152	32	1,827	5644.7%
Tax	Rs m	-4,220	-1,983	700
Profit after tax	Rs m	-3,932	2,015	1,127	-44.1%
Gross profit margin	%	31.3	31.0	27.9
Effective tax rate	%	51.8	-6,236.5	38.3
Net profit margin	%	-9.2	4.2	2.3

Year-on-Year Performance:

• The bank's operating income (interest earned) during the quarter grew 15.2% on a year-on-year (YoY) basis. The interest expended was up by 21.0% YoY during the same period.
• The bank's operating profit increased by 2.5% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 27.9% in 1QFY20 as against 31.3% in 1QFY19.
• Other income increased by 55.4% YoY during the quarter.
• Net profit for the quarter increased by 128.7% YoY. Net profit margins during the quarter increased from -9.2% in 1QFY19 to 2.3% in 1QFY20.

Quarter-on-Quarter Performance:

• The bank's operating income (interest earned) during the quarter grew 3.5% on a quarter-on-quarter (QoQ) basis. The interest expended was up by 8.2% QoQ during the same period.
• The bank's operating profit declined by 6.9% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 27.9% in 1QFY20 as against 31.0% in 4QFY19.
• Net profit for the quarter declined by 44.1% QoQ, while net profit margins declined from 4.2% in 4QFY19 to 2.3% in 1QFY20.

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

ORIENTAL BANK Share Price Performance

Over the last one year,ORIENTAL BANK share price has moved up from Rs 74.2 to Rs 78.3, registering a Gain of Rs 4.2 or around 5.6%.

Meanwhile, the S&P BSE BANKEX is trading at Rs 32,837.5 (down 0.2%). Over the last one year it has moved up from 29,954.1 to 32,837.5, a gain of 2,883 points (up 9.6%).

Overall, the S&P BSE SENSEX is up 3.2% over the year.

Current Valuations

At the current price of Rs 78.3, the price to earnings (P/E) ratio of ORIENTAL BANK stands at 4.2 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 0.1 times.