Canara Bank (CANBK) Q1 24/25 earnings summary

Executive summary

• Global business grew 11.07% year-over-year to INR 2,310,000 crore, with deposits up 11.97% and advances up 9.86%, and net profit rose 10.47% year-over-year to INR 3,905 crore.

• Retail credit surged 23.54% year-over-year, with housing loans up 11.90% and RAM sector now 57% of the credit portfolio.

• Asset quality improved: gross NPA at 4.14% (down 101 bps YoY), net NPA at 1.24% (down 33 bps YoY).

• Net profit for Q1 FY25 was INR 3,905 crore (standalone) and INR 4,067.51 crore (consolidated), with total income at INR 34,020 crore (standalone) and INR 36,965.75 crore (consolidated).

• Operating profit before provisions stood at INR 7,616 crore (standalone) and INR 7,704 crore (consolidated).

Financial highlights

• CET1 ratio reached 12.05%, CRAR at 16.38% (standalone) and 16.44% (consolidated) as of June 2024.

• Provision coverage ratio improved to 89.22%, credit cost declined to 0.90% (down 20 bps YoY).

• Fee-based income grew 16.75% to INR 1,910 crore.

• EPS (post share split) at INR 17.27, up 10.18% year-over-year.

• Return on assets at 1.05% (standalone) and 1.06% (consolidated), with annualized ROE at 20.88%.

Outlook and guidance

• Guidance for 10% advances growth, 1% ROA, 1.1% credit cost, and 2.9% NIM reaffirmed; NIM expected to improve to 2.95% by year-end.

• Gross NPA target of 3.5% and net NPA of 1.1% maintained.

• Return on equity guidance at 18%.

• Domestic CASA ratio at 30.98%, below guidance of 33%.

• Focus on digital banking expansion and compliance with RBI guidelines.