Canara Bank (CANBK) Q2 24/25 earnings summary

Executive summary

• Global business grew 9.42% year-over-year, reaching ₹23.59 lakh crore, with advances up 9.53% and deposits up 9.34%.

• Net profit rose 11.31% year-over-year, surpassing ₹4,000 crore for the first time in a quarter, with Q2 FY25 standalone net profit at ₹4,014.53 crore and consolidated at ₹4,187.76 crore.

• Asset quality improved: Gross NPA declined to 3.73% and Net NPA to 0.99%.

• Return on Assets at 1.05% and Return on Equity at 20.44% for the quarter.

• Board approved unaudited standalone and consolidated financial results for Q2 and H1 FY2024-25, with compliance to regulatory requirements.

Financial highlights

• Net Interest Income increased 4.63% year-over-year to ₹9,315 crore.

• Total income grew 10.32% year-over-year to ₹34,721 crore.

• Operating profit was ₹7,654 crore, up 0.5% year-over-year.

• Fee-based income surged 17.68% year-over-year to ₹2,436 crore.

• EPS (annualized) stood at ₹17.41, up 17.68% year-over-year.

Outlook and guidance

• FY25 guidance: global business growth 10%, with management targeting 11-12% and advances/deposits growth at 10%/9%.

• NIM targeted at 2.90% (actual 2.88%), Gross NPA at 3.50% (actual 3.73%), Net NPA at 1.10% (actual 0.99%).

• ROE guidance at 18% (actual 20.44%), ROA at 1% (actual 1.05%).

• Credit cost guidance for FY25 is below 1%.

• Bank maintains strong capital adequacy and asset quality, with no deviations in fund utilization or covenant compliance.