Housing Development Finance Corporation Limited
CORPORATE/BANKING & FINANCE
Housing Development Finance Corporation Limited - Financial Results for the Half Year Ended September 30, 2012: Standalone and Consolidated
Performance Highlights
-- 19% increase in the standalone profit after tax for the quarter ended September 30, 2012 to ` 1,151.12 crores
-- 19% increase in the standalone profit after tax to ` 2,153.03 crores for the half year ended September 30, 2012
-- 31% growth in the individual loan book (inclusive of loans sold in the preceding 12 months)
-- Gross non-performing loans stood at 0.77% of the loan portfolio as at September 30, 2012 compared to 0.82% as at September 30, 2011
-- 21% increase in the consolidated profit after tax to ` 2,850.76 crores for the half year ended September 30, 2012
The Board of Directors of Housing Development Finance Corporation Limited (HDFC) announced its unaudited standalone and consolidated financial results for the first half of the financial year 2012-13, following its meeting on Monday, October 22, 2012 in Mumbai. The accounts have been subject to a limited review by the Corporation’s statutory auditors in line with regulatory guidelines.
STANDALONE FINANCIAL RESULTS
Financials for the quarter ended September 30, 2012
For the quarter ended September 30, 2012, HDFC reported a profit after tax of ` 1,151.12 crores as compared to ` 970.70 crores in the corresponding quarter of the previous year – an increase of 19%.
Financials for the half year ended September 30, 2012
For the six months ended September 30, 2012, HDFC reported a profit after tax of ` 2,153.03 crores as compared to ` 1,815.23 crores for the six months ended September 30, 2011 – an increase of 19%.
TOTAL ASSETS
As at September 30, 2012 the total assets of HDFC stood at ` 1,80,637 crores as against ` 1,50,045 crores as at September 30, 2011 – an increase of 20%.
LENDING OPERATIONS
As at September 30, 2012, the loan book stood at ` 1,55,128 crores as against ` 1,26,992 crores as at September 30, 2011. Individual loans sold during the preceding twelve months amounted to ` 5,630 crores. The growth in the individual loan book inclusive of loans sold is 31% (24% net of loans sold) whereas the non-individual loan book grew by 19%. The growth in the total loan book inclusive of loans sold is 27% (22% net of loans sold).
During the six months ended September 30, 2012, the loan book, inclusive of loans sold grew by ` 16,771 crores of which ` 13,141 crores – representing 78% of the increase was on account of the increase in the individual loan book.
For the six months ended September 30, 2012, loan approvals grew by 18% and loan disbursements grew by 21% as compared to the corresponding period in the previous year.
The current average size of individual loans is ` 21.5 lacs.
Spread and Net Interest Margins
The spread on loans over the cost of borrowings for the half-year ended September 30, 2012 stood at 2.27%. Net Interest Margin for the half year ended September 30, 2012 was 4.2%.
Investments
As at September 30, 2012, the unrealised gains on HDFC’s listed investments amounted to ` 31,161 crores (previous year ` 21,335 crores). This excludes the appreciation in the value of unlisted investments.
Non-Performing Loans
Gross non-performing loans as at September 30, 2012 amounted to ` 1,206 crores. This is equivalent to 0.77% of the loan portfolio (previous year – 0.82%). This is the thirty-first consecutive quarter end at which the percentage of non-performing loans has been lower than the corresponding quarter in the previous year. The non-performing loans of the individual portfolio stood at 0.65% while that of the non-individual portfolio stood at 0.89%.
The balance in the provision for contingencies account as at September 30, 2012 stood at ` 1,748 crores, of which only ` 493 crores is on account of provisioning for non-performing loans and the balance ` 1,255 crores mainly comprises general provisioning on standard loans, including Dual Rate Home Loans.
As at September 30, 2012, the regulatory provisioning requirement stood at ` 1,430 crores, hence the excess provision carried by the Corporation over the regulatory requirement was ` 318 crores.
WARRANTS
In August 2009, the Corporation had issued 5,47,68,530 Warrants with a right exercisable by the Warrant holder to exchange each Warrant with one equity share of face value of ` 2 per share on or before August 24, 2012 at a Warrant exercise price of ` 600 per equity share. Pursuant to the exchange of the Warrants, the Corporation issued and allotted 5,47,43,150 equity shares of ` 2 each and realised an amount of ` 3,284.59 crores, representing 99.95% of the Warrants issued.
The proceeds from the exchange of Warrants have been utilised to redeem the Zero Coupon Debentures and consequently the Corporation has not earned any additional interest income on the amount received.
CAPITAL ADEQUACY RATIO
HDFC’s capital adequacy ratio stood at 16.7% of the risk weighted assets, as against the minimum requirement of 12%. Tier 1 capital adequacy was 14.1% as against a minimum requirement of 6%.
DISTRIBUTION NETWORK
HDFC’s distribution network spans 322 outlets, which include 77 offices of HDFC’s distribution company, HDFC Sales Private Limited (HSPL). In addition, HDFC covers over 90 locations through its outreach programmes. Distribution channels form an integral part of the distribution network with home loans being distributed through HSPL, HDFC Bank Limited and other few third party direct selling associates.
To cater to non-resident Indians, HDFC has offices in London, Dubai and Singapore and service associates in Kuwait, Oman, Qatar, Sharjah, Abu Dhabi and Saudi Arabia – Al Khobar, Jeddah and Riyadh.
CONSOLIDATED FINANCIAL RESULTS
For the half year ended September 30, 2012, the consolidated profit after tax stood at ` 2,850.76 crores as compared to ` 2,348.39 crores in the half year ended September 30, 2011 – an increase of 21%.
The consolidated profit after tax for the half year ended September 30, 2012 does not consider the charge in respect of the redemption premium on Zero Coupon Debentures amounting to ` 268.59 crores (net of tax) { ` 277.99 crores for the half year ended September 30, 2011}.
-- 19% increase in the standalone profit after tax for the quarter ended September 30, 2012 to ` 1,151.12 crores
-- 19% increase in the standalone profit after tax to ` 2,153.03 crores for the half year ended September 30, 2012
-- 31% growth in the individual loan book (inclusive of loans sold in the preceding 12 months)
-- Gross non-performing loans stood at 0.77% of the loan portfolio as at September 30, 2012 compared to 0.82% as at September 30, 2011
-- 21% increase in the consolidated profit after tax to ` 2,850.76 crores for the half year ended September 30, 2012
The Board of Directors of Housing Development Finance Corporation Limited (HDFC) announced its unaudited standalone and consolidated financial results for the first half of the financial year 2012-13, following its meeting on Monday, October 22, 2012 in Mumbai. The accounts have been subject to a limited review by the Corporation’s statutory auditors in line with regulatory guidelines.
STANDALONE FINANCIAL RESULTS
Financials for the quarter ended September 30, 2012
For the quarter ended September 30, 2012, HDFC reported a profit after tax of ` 1,151.12 crores as compared to ` 970.70 crores in the corresponding quarter of the previous year – an increase of 19%.
Financials for the half year ended September 30, 2012
For the six months ended September 30, 2012, HDFC reported a profit after tax of ` 2,153.03 crores as compared to ` 1,815.23 crores for the six months ended September 30, 2011 – an increase of 19%.
TOTAL ASSETS
As at September 30, 2012 the total assets of HDFC stood at ` 1,80,637 crores as against ` 1,50,045 crores as at September 30, 2011 – an increase of 20%.
LENDING OPERATIONS
As at September 30, 2012, the loan book stood at ` 1,55,128 crores as against ` 1,26,992 crores as at September 30, 2011. Individual loans sold during the preceding twelve months amounted to ` 5,630 crores. The growth in the individual loan book inclusive of loans sold is 31% (24% net of loans sold) whereas the non-individual loan book grew by 19%. The growth in the total loan book inclusive of loans sold is 27% (22% net of loans sold).
During the six months ended September 30, 2012, the loan book, inclusive of loans sold grew by ` 16,771 crores of which ` 13,141 crores – representing 78% of the increase was on account of the increase in the individual loan book.
For the six months ended September 30, 2012, loan approvals grew by 18% and loan disbursements grew by 21% as compared to the corresponding period in the previous year.
The current average size of individual loans is ` 21.5 lacs.
Spread and Net Interest Margins
The spread on loans over the cost of borrowings for the half-year ended September 30, 2012 stood at 2.27%. Net Interest Margin for the half year ended September 30, 2012 was 4.2%.
Investments
As at September 30, 2012, the unrealised gains on HDFC’s listed investments amounted to ` 31,161 crores (previous year ` 21,335 crores). This excludes the appreciation in the value of unlisted investments.
Non-Performing Loans
Gross non-performing loans as at September 30, 2012 amounted to ` 1,206 crores. This is equivalent to 0.77% of the loan portfolio (previous year – 0.82%). This is the thirty-first consecutive quarter end at which the percentage of non-performing loans has been lower than the corresponding quarter in the previous year. The non-performing loans of the individual portfolio stood at 0.65% while that of the non-individual portfolio stood at 0.89%.
The balance in the provision for contingencies account as at September 30, 2012 stood at ` 1,748 crores, of which only ` 493 crores is on account of provisioning for non-performing loans and the balance ` 1,255 crores mainly comprises general provisioning on standard loans, including Dual Rate Home Loans.
As at September 30, 2012, the regulatory provisioning requirement stood at ` 1,430 crores, hence the excess provision carried by the Corporation over the regulatory requirement was ` 318 crores.
WARRANTS
In August 2009, the Corporation had issued 5,47,68,530 Warrants with a right exercisable by the Warrant holder to exchange each Warrant with one equity share of face value of ` 2 per share on or before August 24, 2012 at a Warrant exercise price of ` 600 per equity share. Pursuant to the exchange of the Warrants, the Corporation issued and allotted 5,47,43,150 equity shares of ` 2 each and realised an amount of ` 3,284.59 crores, representing 99.95% of the Warrants issued.
The proceeds from the exchange of Warrants have been utilised to redeem the Zero Coupon Debentures and consequently the Corporation has not earned any additional interest income on the amount received.
CAPITAL ADEQUACY RATIO
HDFC’s capital adequacy ratio stood at 16.7% of the risk weighted assets, as against the minimum requirement of 12%. Tier 1 capital adequacy was 14.1% as against a minimum requirement of 6%.
DISTRIBUTION NETWORK
HDFC’s distribution network spans 322 outlets, which include 77 offices of HDFC’s distribution company, HDFC Sales Private Limited (HSPL). In addition, HDFC covers over 90 locations through its outreach programmes. Distribution channels form an integral part of the distribution network with home loans being distributed through HSPL, HDFC Bank Limited and other few third party direct selling associates.
To cater to non-resident Indians, HDFC has offices in London, Dubai and Singapore and service associates in Kuwait, Oman, Qatar, Sharjah, Abu Dhabi and Saudi Arabia – Al Khobar, Jeddah and Riyadh.
CONSOLIDATED FINANCIAL RESULTS
For the half year ended September 30, 2012, the consolidated profit after tax stood at ` 2,850.76 crores as compared to ` 2,348.39 crores in the half year ended September 30, 2011 – an increase of 21%.
The consolidated profit after tax for the half year ended September 30, 2012 does not consider the charge in respect of the redemption premium on Zero Coupon Debentures amounting to ` 268.59 crores (net of tax) { ` 277.99 crores for the half year ended September 30, 2011}.
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