FEDERAL BANK Announces Quarterly Results (2QFY19); Net Profit Up 0.9%
Wed, 17 Oct

FEDERAL BANK has announced its results for the quarter ended September 2018. Here is a detailed performance review of the same:

FEDERAL BANK Quarterly Financials

No. of Mths
Qtr. Ending
3
Sep-17*
3
Jun-18*
3
Sep-18*
QoQ ChangeYoY Change
Operating incomeRs m23,79626,67427,6493.7%16.2%
Other incomeRs m2,8722,7093,22919.2%12.4%
Total revenuesRs m26,66829,38230,8785.1%15.8%
InterestRs m14,80716,87317,4253.3%17.7%
Gross Profit Rs m8,9899,80110,2254.3%13.7%
Other expensesRs m6,0296,4806,4780.0%7.4%
Profit before taxRs m4,0644,0384,0881.2%0.6%
TaxRs m1,4271,4111,4271.2%0.0%
Profit after taxRs m2,6372,6272,6601.3%0.9%
Gross profit margin %37.836.737.0
Effective tax rate%35.134.934.9
Net profit margin%11.19.89.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster


Year-on-Year Performance:
  • The bank's operating income (interest earned) during the quarter grew 16.2% on a year-on-year (YoY) basis. The interest expended was up by 17.7% YoY during the same period.
  • The bank's operating profit increased by 13.7% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 37.0% in 2QFY19 as against 37.8% in 2QFY18.
  • Other income increased by 12.4% YoY during the quarter.
  • Net profit for the quarter increased by 0.9% YoY. Net profit margins during the quarter declined from 11.1% in 2QFY18 to 9.6% in 2QFY19.
Quarter-on-Quarter Performance:
  • The bank's operating income (interest earned) during the quarter grew 3.7% on a quarter-on-quarter (QoQ) basis. The interest expended was up by 3.3% QoQ during the same period.
  • The bank's operating profit increased by 4.3% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 37.0% in 2QFY19 as against 36.7% in 1QFY18.
  • Net profit for the quarter increased by 1.3% QoQ, while net profit margins declined from 9.8% in 1QFY18 to 9.6% in 2QFY19.

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

FEDERAL BANK Share Price Performance

Over the last one year, FEDERAL BANK share price has moved up from Rs 125.9 to Rs 80.9, registering a Loss of Rs 45.0 or around 35.7%.

Meanwhile, the S&P BSE BANKEX is trading at Rs 28,714.8 (up 0.1%). Over the last one year it has moved up from 27,681.5 to 28,714.8, a gain of 1,033 points (up 3.7%).

Overall, the S&P BSE SENSEX is up 8.2% over the year.

Current Valuations

At the current price of Rs 80.9, the price to earnings (P/E) ratio of FEDERAL BANK stands at 7.4 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 0.6 times.