Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q3 FY15 Earnings Presentation
30 slides from Union Bank Of India's earnings presentation, Jan 27, 2015
Slide 1: Financial Results Q3 FY15 & Nine-months ended December 2014
Financial Results Q3 FY15 & Nine-months ended December 2014 27th January 2015 1
Slide 2: Highlights
Highlights Capital • CRAR (Basel III) at 10.30%; CET 1: 7.02% Margin • Domestic NIM stable at 2.6% Fee Income • Core Fee Income up 11.3% (y-o-y) • Net Profit (Apr-Dec 2014) at ` 1338 Profit crore, growth of 19.8% Business • Global Business increased to ` 561011 crore
Slide 3: Statement of Assets & Liabilities
Statement of Assets & Liabilities (` in crore) As at As at As at As at YoY Growth LIABILITIES 31.12.13 31.03.14 30.09.14 31.12.14 (%) Capital 741 741 636 636 -14.2 Reserves and surplus 17424 17734 18861 19156 9.9 Deposits 285125 297676 300165 312912 9.7 Borrowings 31730 29317 32636 30658 -3.4 Other
Slide 4: Deposits
Deposits Total Deposits CASA 312912 • Total Deposits noted annual 285125 growth of 9.8% • CASA share at 28.7% CASA Share CASA Share • The Bank added 29 Lakh 28.8% 28.7% CASA accounts in Dec-14 89910 82112 quarter (84 Lakh during Apr- Dec 2014) • Cost of Deposits at 7.31% Dec 13 Dec 14 (Apr-Dec 2014)
Slide 5: Advances
Advances 248099 • Advances increased by 8.9% 227745 RAM Share • RAM (Retail, Agriculture & 50% MSME) sectors are major contributors • Yield on Advances at 10.50% RAM Share 42% (Apr-Dec 2014) & 10.43% (Dec 2014) Dec 13 Dec 14 (` in crore) Dec 2013 Mar 2014 Sep 2014 Dec 2014 Growth (%) Y/Y Q/Q Retail
Slide 6: Advances – Top Exposures
Advances – Top Exposures Sl. Sectors Top 10 Sectors (Domestic ) Top 10 Sectors % Share in Advances (Domestic ) (31st Dec 2014) Dec 2013 Mar 2014 Sep 2014 % Share Amount ( ` in cr.) 1 Infrastructure 17.3 16.3 17.1 15.7 35608 2 Retail Advances 11.3 11.5 12.6 13.3 30155 3 Agriculture 10.9 11.8 12.7 13.
Slide 7: Advances – Retail Loans
Advances – Retail Loans Dec 2013 Dec 2014 3.0 2.7 5.0 13.5 5.5 16.3 9.3 8.1 59.2 8.6 60.4 8.4 Home Loans Vehicle Loans Education Loans Mortgage Loans (LAP) Personal Loans Others 7
Slide 8: Overseas Operations
Overseas Operations Overseas branches at Business from Overseas Branches Hong Kong, DIFC (Dubai) & Dec 2013 Dec 2014* Growth Antwerp (Belgium) (%) YoY- US$ Business US $ 3.5 US $ 4.2 20.0 Billion Billion (` 21538 (` 26383 Representative offices at crore) crore) Shanghai, Beijing, Total US $ 0.7 US $
Slide 9: Investments
Investments 101520 94239 Yield on Investments at 7.52% (Apr- Dec 2014) & 7.51% (Dec 2014) 83% of AFS portfolio is interest sensitive. Dec 13 Dec 14 (` in crore) Dec 14 % to Total Duration (Yrs) Investments Held to Maturity (HTM) 77175 76.0 4.49 Held for Trading (HFT) 780 0.8 4.79 Available for Sale
Slide 10: Performance Highlights (Apr-Dec 2014)
Performance Highlights (Apr-Dec 2014) 10
Slide 11: NII & NIM
NII & NIM Apr-Dec Apr-Dec 2013 2014 Net Interest Income (` in crore) 5827 6322 Net Interest Margin (NIM) (%) -Global 2.55 2.54 -Domestic 2.63 2.62 Yield on Fund (%) -Global 8.93 9.04 -Domestic 9.20 9.31 Cost of Fund (%) -Global 6.53 6.64 -Domestic 6.73 6.85 11
Slide 12: Non-Interest Income
Non-Interest Income (` in crore) Apr-Dec Apr-Dec Growth % 2013 2014 (YoY) a. Core Non Interest Income 1116 1242 11.3 W/w -Inland Commission 314 272 -13.5 -Processing Charges 228 287 25.7 -Others 574 683 19.0 b. Treasury Income 728 901 23.8 W/w -Profit on Sale of Investments 403 426 5.5 -Exchange Pro
Slide 13: Operating Profit
Operating Profit 4171 • Operating Profit for the period of Apr-Dec 2014 is at `4171 crore as against `3898 crore during the corresponding period of 3898 last year, registering an increase of 7.0%. Apr-Dec 2013 Apr-Dec 2014 13
Slide 14: Provisions
Provisions (` in crore) Apr-Dec Apr-Dec 2013 2014 NPAs 1436 1703 Standard Assets 238 94 Depreciation on Investment 83 -85 Shifting Loss 110 39 Restructured Advances 195 210 Others (FITL etc) 168 69 Taxation 551 803 Total 2781 2833 14
Slide 15: Net Profit
Net Profit 1338 • The Net Profit for Apr-Dec 1117 2014 registered increase of 19.8% from `1117 crore to `1338 crore. Apr-Dec 2013 Apr-Dec 2014 15
Slide 16: Performance Highlights (Oct-Dec 2014)
Performance Highlights (Oct-Dec 2014) 16
Slide 17: NII & NIM
NII & NIM Dec Sep Dec 2013 2014 2014 (Q3) (Q2) (Q3) Net Interest Income 1963 2085 2120 (` in crore) Net Interest Margin (NIM) (%) -Global 2.50 2.53 2.50 -Domestic 2.54 2.60 2.57 Yield on Fund (%) -Global 9.04 9.09 8.93 -Domestic 9.29 9.34 9.21 Cost of Fund (%) -Global 6.69 6.70 6.58 -Domestic 6.90 6
Slide 18: Non-Interest Income
Non-Interest Income (` in crore) Dec Mar Sep Dec Growth Growth 2013 2014 2014 2014 % % (Q3) (Q4) (Q2) (Q3) YoY QoQ a. Core Non Interest 392 519 448 455 16.2 1.8 Income W/w -Inland Commission 113 133 90 97 -14.3 7.7 -Processing Charges 80 108 93 93 15.6 0 -Others 199 278 265 265 33.2 0 b. Treasury In
Slide 19: Operating Profit
Operating Profit 1465 • Operating Profit is at 1334 `1465 crore for Oct-Dec 2014 as against `1261 crore 1261 during the corresponding period of last year. Dec 13 Sep 14 Dec 14 19
Slide 20: Provisions
Provisions (` in crore) Dec 2013 Mar 2014 Sep 2014 Dec 2014 (Q3) (Q4) (Q2) (Q3) NPAs 497 670 603 674 Standard Assets 24 71 45 22 Depreciation on 44 5 79 -26 Investment Shifting Loss 0 0 0 0 Restructured Advances 33 60 98 106 Others (FITL etc) 13 115 -39 76 Taxation 302 -180 177 311 Total 913 741 963
Slide 21: Net Profit
Net Profit 348 371 • The Net Profit for Oct-Dec 302 2014 noted at `302 crore as against `348 crore for the corresponding period of last year. Dec 13 Sep 14 Dec 14 21
Slide 22: Asset Quality
Asset Quality (` in crore) Dec 2013 Mar 2014 Sep 2014 Dec 2014 Q3 Q4 Q2 Q3 Gross NPAs - Opening 8061 8776 10232 11462 Add : Additions 1154 1199 1968 1738 Less : Reductions 439 411 738 604 -Recoveries 183 141 412 358 -Upgradation 82 48 146 28 -Write Off 174 222 180 218 Gross NPAs- Closing 8776 9564 1
Slide 23: Asset Quality
Asset Quality (` in crore) Slippages NPAs % to % to Sector Loan SECTOR During Dec Total Dec Mar Sep Dec Dec 2014 2014 NPAs 2014 2013 2014 2014 Agriculture 128 1610 12.8 6.87 6.22 5.73 5.42 Micro & Small 400 2161 17.2 5.07 5.02 5.26 5.64 (MSE) Retail Loans 114 613 4.9 2.18 2.03 2.10 2.03 Others 1096
Slide 24: Restructured Assets
Restructured Assets (` in crore) Particulars Standard NPA Total Restructured Assets as on October 1st, 2014 12603 4066 16669 Fresh Restructuring during the Quarter 1212 0 1212 Upgradation to Restructured Accounts during the 2 -2 0 Quarter Restructured Standard Advances which cease to -1200 0 -1200 a
Slide 25: Important Ratios
Important Ratios Dec Mar Sep Dec 2013 2014 2014 2014 (Q3) (Q4) (Q2) (Q3) Efficiency Ratios Cost to Income Ratio (%) 52.27 53.31 53.94 51.13 Return on Average Assets (%) 0.42 0.68 0.42 0.34 Earning Per Share (`) 23.18 36.74 23.52 19.03 Book Value per Share (`) 276.62 269.37 283.34 288.18 Productivity
Slide 26: Distribution Channels
Distribution Channels Branch Mix Bank added 109 branches during Oct-Dec 2014 (163 branches and Metro Western Rural 32% 18% 19% Central 32% 189 ATMs during Apr-Dec 2014). Urban 21% Southern 21% ATM to Branch Ratio at 1.6 Semi Urban Eastern 29% Northern 12% 13% Transactions through electronic chan
Slide 27: Capital Adequacy – Basel III
Capital Adequacy – Basel III 10.80 10.30 10.30 7.54 7.31 7.32 CRAR under Basel III is 10.30% CRAR (excluding quarterly profit) Tier I 3.26 2.99 2.98 Tier II Tier I 7.32% (CET I : 7.02%) & Tier II :2.98%. Mar 14 Sep 14 Dec 14 (` in crore) Dec 2013 Mar 2014 Sep 2014 Dec 2014 Risk Weighted Assets 2
Slide 28: Shareholding Details
Shareholding Details • Share Capital ` 635.8 crore •No. of Equity Shares 63.58 crore • Net worth: ` 18323 crore • Book Value per share ` 288 •Return on Equity 9.74% •Market Cap ` 15221 crore Shareholding Pattern (%) as on December 31 ,2014 60.47 10.03 17.25 12.25 Govt. of India FIIs & FMFs Banks, In
Slide 29: Disclaimer
Disclaimer Except for the historical information contained herein, statements in this presentation which contain words or phrases such as “is”, “aims”, „will‟, „would‟, „indicating‟, „expected to‟ etc., and similar expressions or variations of such expressions may constitute „forward-looking stateme
Slide 30: Investor queries: investor.relations@unionbankofindia.com
Investor queries: investor.relations@unionbankofindia.com 30