Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — FY2011 Earnings Presentation
40 slides from Union Bank Of India's earnings presentation, May 6, 2011
Slide 1: Financial Results Q4-11 & FY 2011 Analyst Presentation
Financiall Results l Q4 - 11 & FY 2011 Analyst y Presentation 6th May, 2011
Slide 2: Achievements of Business Goals
Achievements of Business Goals Global Business up from ` 291289 cr. to ` 355483 cr. an increase of 22.04% 22 04% Domestic Deposits up from ` 169670 cr. to ` 201891 cr. an increase of 18.99% Domestic Advances up from ` 118272 cr. to ` 147081 cr. an increase of 24.36% . Robust growth of 48.28% in Net
Slide 3: Financial Results – FY 2011 Yearly Results
Financial Results – FY 2011 Yearly y Results 3
Slide 4: Operating Profits and Net Profits (YoY)
Operating Profits (YoY) N tP Net Profits fit (Y (YoY) Y) Growth 17.66% 4305 Growth 0.34 % 4500 Growth 18.72% 3659 2200 Growth 20.15% 2075 2082 4000 2000 3500 3082 1727 1800 3000 1600 1400 2500 3 1200 2000 1000 1500 800 600 1000 400 500 200 2009 2010 2011 2009 2010 2011 • The Bank’s operating profit
Slide 5: Provisions as on 31.3.11 (YoY)
P Provisions i i as on 31.3.11 31 3 11 (Y (YoY) Y) (` in crore) Mar’10 Mar’11 Taxation 758 807 NPA (excluding adhoc provision for 699 1188 Standard Assets) Standard Assets 21 146 Depreciation on Investment -117 27 Shifting Loss 47 83 Others 176 -28 28 (Provisions for Restructured Adv., Gtees. Invoke
Slide 6: Net Interest Income YoY Comparison
NET INTEREST INCOME YoY Comparison • Net Interest Income grew 7000 Growth 48.28% 6216 by 48.28% YoY to Rs 6216 6000 crs from Rs 4192 crs in the 4192 previous i year. 5000 • NII growth has been 4000 driven mainlyy due to increase in yield on funds 3000 at 8.33% as against 8.04% 2000 in the previous y
Slide 7: Net Interest Margin (NIM) [YoY]
Net Interest Margin (NIM) [YoY] 10 8.78 8.04 8.33 8 5.96 6 5.51 5.19 4 3.33 3.24 2.71 2 0 2009 2010 2011 Yield on Funds Cost of funds NIM Effective cost management has resulted in growth of 29 bps in Yield on Funds and at the same time, time Cost of Deposits has come down by 32 bps, bps resulting in
Slide 8: Non-Interest Income - YoY Comparison
Non-Interest Income- YoY Comparison (` in crore) Mar’10 Mar’11 % Growth Core Fee based Income 896 934 4.24 Treasury Income 730 689 -5.62 5 62 W/w Profit on Sale of Investment 573 464 -19.20 Exchange on Foreign Currencies 157 225 43 31 43.31 Income from Forex Tran. 166 204 22.89 Recovery in Written-O
Slide 9: Financial Results – FY 2011 Quarterly Results
Financial Results – FY 2011 Quarterly Q y Results 9
Slide 10: Operating Profits (Q4) and Net Profits (Q4)
• Operating O ti profit fit for f Q4 has h Operating Profits (Q4) been impacted by one-time Rs. in Cr. exceptional pension Q4 2009 Q4 2010 Q4 2011 liability of ` 300 crs which 912 1148 869 otherwise would have been amortised and hence would have been ` 1169 crs registering growth of 1.82% QoQ Net Pr
Slide 11: Net Interest Income QoQ Comparison
NET INTEREST INCOME QoQ Comparison p 2000 Growth 22.92% 1716 1396 1600 1200 800 400 0 MAR 10 MAR 11 Net Interest Income 11
Slide 12: Net Interest Margin (NIM) [QoQ]
Net Interest Margin (NIM) [QoQ] 10 8.82 8.03 8 5.54 6 4.88 4 3.39 3.44 2 0 2010 2011 Yield on Funds Cost of funds NIM Effective cost management has resulted in growth of 79 bps in Yield on Funds and at the same time, Cost of Deposits has increased by 66 bps, resulting in better NIM. Cost of Funds st
Slide 13: Non-Interest Income - QoQ Comparison
Non-Interest Income- QoQ Comparison (` in crore) Mar’10 Mar’11 % Growth Core Fee based Income 283 270 -4.59 Treasury Income 98 171 74.49 W/w Profit on Sale of Investment 82 112 36.59 Exchange on Foreign Currencies 16 59 268 75 268.75 Income from Forex Tran. 54 62 14.81 Reco er in Written-Off Recover
Slide 14: Deposits
Deposits 2 4 0 0 0 0 2 1 0 0 0 0 202461 170040 Total Deposits grew at 1 8 0 0 0 0 19.07% YoY. 1 5 0 0 0 0 Demand Deposits(CASA) 1 2 0 0 0 0 grew by 19.18%. Average 9 0 0 0 0 64307 53957 CASA deposits grew by 6 0 0 0 0 27.30% YoY. 3 0 0 0 00 2 0 1 0 2 0 1 1 TOTAL DEPOSITS CASA (` in crore) MAR 10 MAR
Slide 15: CASA Deposits
CASA Deposits (` in crore) MAR 10 MAR 11 % Growth Over MAR 09 Current Deposits 16229 19618 20.88 Savings Deposits 37728 44689 18.45 Demand Deposits p (CASA) ( ) 53957 64307 19.18 Total Deposits 170040 202461 19.07 CASA % to total deposits 31 73 31.73 31 76 31.76 - Cost of Deposits(%) 5.94 5.53 - A
Slide 16: Advances & Yield on Advances
Advances & Yield on Advances 12 Advances 153022 Bank registered growth 160000 130000 1212499.94 10 9.86 100000 70000 of 26.20% 26 20% YoY in 8 40000 advances. 10000 6 Mar-10 Mar-11 Advances Yield on Advances (` in Crore) MAR 10 MAR 11 YoY Growth% Total Advances 121249 153022 26.20 Agriculture 18464
Slide 17: Composition of Retail Portfolio
COMPOSITION OF RETAIL PORTFOLIO HOUSING 22.56 PERSONAL EDUCATION AUTO OTHERS 7 58 7.58 56.73 9.74 3 39 3.39 17
Slide 18: Assets Restructured during FY 11
Assets Restructured during FY 11 . ` in Crs Nature of During FY 11 Total Upto March 2011 Advance No of Amt. No of Amt. Accts. ccts Accts ccts MSME W/w 137 124.90 30145 958.86 Micro Enterprises 92 5.97 21302 273.37 Small Enterprises 26 26.76 8729 397.77 Medium Ent. 19 92.17 114 287.72 Large Ent. 21 3
Slide 19: Assets Restructured during FY 11 – Closed and Turned NPA
A Assets t RRestructured t t dd i FY 11 during Restructured Accounts Closed / Fully Adjusted (More than ` 1.00 crore) Details of Restructured Accounts Accounts Amount (` in cr.) cr ) April 09 –March 10 20 237.90 April 10 –March 11 45 362.33 Restructured Accounts turned to NPAs (for more than ` 1.00
Slide 20: Top Sector Exposures
TOP SECTOR EXPOSURES Across Large & Mid Corporates, SME and Corporate Agri Business Rank Sectors Exposures (As on 31st March 2011) % Amount (` in Crore) 1 Infrastructure 11.13 17018 2 Retail Advances 10.63 16238 3 Trade 5.49 8391 4 NBFCs 4 60 4.60 7046 5 Textile 3.13 4789 6 Other Industries 2.59 395
Slide 21: Distribution of Ratings Large & Mid Corporates
DISTRIBUTION OF RATINGS LARGE & MID CORPORATES ha ing a portfolio of ` 104863 crore of more than ` 5 crore, The Bank is having crore out of which 690 Accounts with exposure of ` 51331 Crore are rated. Rating of the Accounts is as under: Rating No of Borrowers Exposure % OF RATED EXPOSURE AAA 51 1565
Slide 22: Investments
60000 54483 58399 8 Investments 50000 Investments have shown a 40000 g growth of 7.18% and Yield on 7 Investments have increased by 30000 6.55 23 bps from 6.32% to 6.55%. 20000 6 32 6.32 Out of Total AFS portfolio of ` 10000 Mar-10 Mar-11 6 14110 Cr. ` 6473 Cr (45.88%) is Investments Yield on Inv in
Slide 23: Movement of NPAs
Movement of NPAs (` in crore) Mar’10 Mar 10 Mar’11 Mar 11 Gross NPAs - Opening 1923 2671 Add : Additions 1785 2924 Less : Deductions 1037 1972 1. Due to Write Off 513 1126 2 Due to upgradation/ Recoveries 2. 524 846 Gross NPAs 2671 3623 Gross Credit 121249 153022 Gross NPA as a %age of GBC 2.20 2.37
Slide 24: Return on Equity and Return on Average Assets
2 Return on Equity Return on Avg. Avg Assets 30 24.70 24.79 1.5 25 23.69 1.26 1.27 1.25 20 18 68 18.68 1 05 1.05 1 15 10 0.5 5 0 0 2008 2009 2010 2011 2008 2009 2010 2011 Return on Equity R t Return on A Average A Assets t 60 240 212.53 50 220 41.08 39.71 200 40 180 173.38 34.18 160 137.87 27.46 140
Slide 25: Improved Productivity
Improved Productivity (` In lacs) Ratios* Ratios MAR10 MAR11 (12 M) (12 M) Productivity Ratios Business per Employee 1049 1281 Business per Branch 10385 11783 Net Profit per Employee 7 47 7.47 7 50 7.50 Net Profit per Branch 73.97 69.01 Gross Profit p per Employee p y 13.18 15.52 Gross Profit per Br
Slide 26: Capital Adequacy
14.00 C it l Adequacy Capital Ad 13.27 12.51 12.51 12.95 •Capital Adequacy Ratio is 12.00 att 12 95% 12.95% as off 10.00 8.69 31.03.2011 as per Basel II. 8.00 7.45 8.19 7.91 •Tier-I CRAR has improved to 8.69% from 7.91 % 6 00 6.00 5.06 5 08 5.08 4.60 mainly due to plough back 4.00 4.26 of profits an
Slide 27: Distribution Channels
DISTRIBUTION CHANNELS Transactions through electronic BRANCH MIX mode d have h i increased d to t 50.49% 50 49% Including Hong Kong from 35.01% in March 10. branch Bank opened 211 branches 629 during 2010-11. 827 SERVICE OUTLETS 713 847 Mar’08 Mar’09 Mar’10 Mar’11 Branches / EC / 2514 2661 2910 3105
Slide 28: Shareholding Pattern (31st March, 2011)
Shareholding Pattern (31st March,2011) 17.42 • Share Capital ` 524.33 crore •No. of Shares 524.33 million 14.47 • Net worth ` 11144 crore 55.43 • B. V. per share ` 212.53 •Return on Equity: 18.68% 12.68 •Market Cap (3rd May’11) : ` 15840 crs Govt. of India Banks, Fis, Ins. Cos. Others FIIs and Forei
Slide 29: Major highlights of last quarter
Major M j hihighlights hli h of last quarter 29
Slide 30: Award for Financial Inclusion
Award for Financial Inclusion The Bank was awarded the SKOCH Financial Inclusion Award 2011 for its project j t “Financing “Fi i Farmer F M b Members off Primary Agricultural Cooperative Societies under BC Model”. The award was give away by Dr. Dr K.C. KC Chakrabarty, Dy. Governor, Reserve Bank of I
Slide 31: Award for Best Home Loan provider
Award for Best Home Loan provider The Bank received the Outlook money award f the for th best b t home h l loan provider in Jan’11. The award was given away by the Hon’ble Chief Minister of Maharashtra, Maharashtra Shri Prithviraj Chavan. 31
Slide 32: Award for best IT Middleware
Award for best IT Middleware The Bank received the 'Best Middleware Implementation Award Award' at the Asian Banker's Technology Implementation Awards 2011 at a function held in Hongkong on 7th April, April 2011. The award is given for Enterprise Application Integration solution implemented by the B
Slide 33: Issuance of Aadhar cards
Issuance of Aadhar cards The Bank marked the launch of i issuance off Aadhaar A dh N b Numbers t the to th residents of the country on 10th January 2011 at a function organized at KON Village in Thane District. District The first lot of 19 Aadhaar Numbers were distributed to the residents enrolled b
Slide 34: Launch of Union Bank Money with Nokia obopay
Launch of Union Bank Money under tie tie-up up with Nokia obopay The Bank together with Nokia, announced the commercial launch of ‘Union Bank M Money powered d by b Nokia’ N ki ’ across India, I di starting with the National Capital Region. The unique service specifically targets users who do not ha
Slide 35: Launch of Rupay co-branded card
Launch of “Rupay” co-branded card The coco-branded branded “Rupay” Rupay ATM card of NPCL and Kashi Gramin Sayukt Gramin Bank, a sponsor RRB of the Bank was launched on March 21st, 2011. The card was launched by Mr Narayana Murthy, Chairman, NPCL and Chief Mentor, Infosys y Technologies Ltd. 35
Slide 36: Financial Inclusion initiative
Financial Inclusion initiative The Bank unveiled its first Solar powered, Voice enabled Biometric Rural ATM at village Ghawaddi in Ludhiana District in Punjab. The ATM was inaugurated by Shri S.S. Mundra, Executive Director of Bank amidst a large gathering. gathering Bank has deployed Gramateller AT
Slide 37: Guidance 2011-12
(Nn Union Bank Guidance 2011-12 37
Slide 38: Guidance 2011-12
Guidance 2011-12 The Bank aims for a deposits growth of approx. 20% and advances growth th off 22% for f 2011-12. 2011 12 Return on Average Assets to be 1.30% by March 2012 NIM is expected to be at 3.20% by March 2012. D li Delinquency R ti as off 31st March,2012 Ratio M h 2012 isi expected t d to t
Slide 39: Disclaimer
Di l i Disclaimer Except for the historical information contained herein, statements in this presentation which contain words or phrases such as “is” is , “aims” aims , ‘will’ will , ‘would’, ‘indicating’, ‘expected to’ etc., and similar expressions or variations of such expressions may constitute ‘
Slide 40: Thank you
Thankk you y Your dreams are not yours alone