India’s largest lender misses Q4 SBI earnings

A man checks his mobile phones outside the State Bank of India (SBI) branch in Kolkata, India, February 9, 2018. REUTERS/Rupak of Chowdhuri

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MUMBAI, May 13 (Reuters) – India’s biggest lender, the State Bank of India (SBI) (SBI.NS), fell short of its fourth-quarter profit expectations despite reporting record profits, mainly due to higher overhead and interest charges.

Shares of SBI, seen as a bellwether for the broader lending industry, reversed course and traded down 3% at midday, after jumping 3.1% immediately after the earnings release. results.

Most Indian lenders reported healthy growth for the quarter as loan growth increased and asset quality improved, helping to keep provisions low.

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Net profit for the quarter ended March 31 was 91.14 billion Indian rupees, down from 64.51 billion a year earlier, but below the 101.60 billion expected by 14 analysts on average, according to Refinitiv data. BIBS.

Interest expense increased by 4% to 395.35 billion rupees while general expenses increased by nearly 6% and 29.1% from the previous quarter.

The SBI has set aside 32.62 billion rupees as a provision for loan losses, up from 99.14 billion a year earlier, the bank said in an exchange filing on Friday.

Interest income on loans increased by 8.65% to reach 707.33 billion rupees, while global loans increased by 11%, driven by a strong growth of 15.1% in personal loans.

($1 = 77.2920 Indian rupees)

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Reporting by Nupur Anand; written by Sudarshan Varadhan; edited by David Evans and Jason Neely

Our standards: The Thomson Reuters Trust Principles.

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