City Union Bank Limited · NSE:CUB
City Union Bank — Q4 FY2024 Earnings Presentation
48 slides from City Union Bank's earnings presentation, May 20, 2024
Slide 1: Exchange filing cover letter – Investor Presentation Q4 FY2024
6G) City UNION BANK LIMITED CIN : L65110TN1904PLC001287 cul ; a ; Regd. Office : 149, T.S.R. (Big) Street, Kumbakonam - 612 001, Thanjavur District, Tamil Nadu. CUB ° Telephone No : 0435 - 2402322 Fax : 0435 - 2431746 mur ence E-mail : shares@cityunionbank.com - Website: www.cityunionbank.com C.0/Sh
Slide 2: Investor Presentation March 2024
INVESTOR PRESENTATION March 2024
Slide 3: Disclaimer
TRUST AND EXCELLENCE 1904 - 2024 Disclaimer No representation or warranty, express or implied is made as to, and no reliance should be placed on the fairness, accuracy, completeness, or correctness of such information or opinions contained herein. The information contained in this presentation is on
Slide 4: Table of Contents
Table of Contents TRUST AND EXCELLENCE 1904 - 2024 Overview ........................................................................................................................ 04 Performance Highlights – March 2024 ......................................................................... 10 Fin
Slide 5: Overview
TRUST AND EXCELLENCE 1904 - 2024 OVERVIEW 04
Slide 6: Overview – Facts & Figures
Overview TRUST AND EXCELLENCE 1904 - 2024 City Union Bank Ltd., the oldest Private Sector Bank in India, was founded on October 31, 1904, and is headquartered in Kumbakonam, Tamil Nadu, India. The main focus of the Bank – lending to MSME, Retail / Wholesale Trade with a granular asset profile includ
Slide 7: Key Milestones
KEY MILESTONES 1998 TRUST AND EXCELLENCE 1904 - 2024 Initial Public 1957 Offering (IPO); Took over Listing bank’s 1904 Common shares on the Incorporation Wealth BSE, NSE & MSE of Bank Limited the Bank 02 04 06 03 1965 05 2002 01 1945 Scheduled bank Amalgamation Entered into since of ‘The City Forwar
Slide 8: City Union Bank – Specialized Banking Model Aligned to SME/MSME
CITY UNION BANK A SPECIALIZED BANKING MODEL ALIGNED TO TARGET SEGMENT – SME / MSME TRUST AND EXCELLENCE 1904 - 2024 Prudent Risk Invested in Robust Purely retail Liability SME / MSME focus Management Infrastructure Franchise SME/MSME specialized SME exposures’ result in Comprehensive employee
Slide 9: Competitive Advantages
COMPETITIVE ADVANTAGES TRUST AND EXCELLENCE 1904 - 2024 NETWORK STRONG TRACK RECORD • Continuous profitability and dividend • Pan India presence with 800 branches payout in all 120 years of operations • Strong presence in South India (692 • Business growth of about 15% CAGR in branches) of which 524
Slide 10: Credit Rating
TRUST AND EXCELLENCE CREDIT RATING 1904 - 2024 ICRA has assigned • “AA-” for Long Term - issuers with this rating are considered to have “High Degree of Safety” regarding timely servicing of financial obligations. • “A1+” for Certificate of Deposits (CD) - issuers with this rating are considered to
Slide 11: Performance Highlights – FY 2023-24
TRUST AND EXCELLENCE 1904 - 2024 PERFORMANCE HIGHLIGHTS – FY 2023-24 10
Slide 12: Q4 FY24 / FY 2024 Performance – A Snapshot
Q4 FY 24/ FY 2024 PERFORMANCE – A SNAPSHOT TRUST AND EXCELLENCE 1904 - 2024 • Deposits increased by 6% from Rs. 524 Bn to Rs. 556 Bn Y-o-Y • Advances registered a growth of 6% from Rs.440 Bn to Rs.465 Bn Y-o-Y • The total business grew by 6% from Rs.964 Bn to Rs.1021 Bn Y-o-Y • Profitability and eff
Slide 13: FY24 vs FY23 Performance – A Snapshot
FY 24 VS FY 23 PERFORMANCE – A SNAPSHOT TRUST AND EXCELLENCE 1904 - 2024 (in INR Mn) 556,566 464,815 1,021,381 170,502 6% 6% 6% 9% 523,979 439,708 963,687 156,569 Deposits Advances Total Business CASA 15,167 10,157 21,235 47.06% - ve 8% - ve % 18,180 9,375 21,628 38.85 % Gross Profit Net Profit Net
Slide 14: Q4 FY24 vs Q4 FY23 Performance – A Snapshot
Q4 FY 24 VS Q4 FY 23 PERFORMANCE – A SNAPSHOT TRUST AND EXCELLENCE 1904 - 2024 (in INR Mn) 556,566 464,815 1,021,381 170,502 6% 6% 6% 9% 523,979 439,708 963,687 156,569 Deposits Advances Total Business CASA 3,518 2,548 5,466 51.26% 17% 6% % 4,170 2,180 5,143 41.20 % Gross Profit Net Profit Net Inter
Slide 15: Financial Performance & Business Profile
TRUST AND EXCELLENCE 1904 - 2024 FINANCIAL PERFORMANCE & BUSINESS PROFILE 14
Slide 16: FY24 vs FY23 Performance – Financial Performance
TRUST AND EXCELLENCE 1904 - 2024 FY 24 VS FY 23 PERFORMANCE - A SNAPSHOT (in INR Mn) FINANCIAL PERFORMANCE PARTICULARS FY 2024 FY 2023 INC / (DEC) Growth Growth % Deposits 556,566 523,979 32,588 6% Advances 464,815 439,708 25,107 6% Total Business 1,021,381 963,687 57,695 6% Demand Deposits 54,888 4
Slide 17: FY24 vs FY23 Performance – Income Statement
TRUST AND EXCELLENCE 1904 - 2024 FY 24 VS FY 23 PERFORMANCE - A SNAPSHOT FINANCIAL PERFORMANCE (in INR Mn) PARTICULARS FY 24 FY 23 INC / (DEC) Growth % Net Interest Income 21,235 21,628 -393 -2% Other Income 7,416 8,104 -688 -8% Operating Expenses 13,484 11,552 1,932 17% Gross Profit 15,167 18,180 -
Slide 18: Q4 FY24 vs Q4 FY23 Performance
TRUST AND EXCELLENCE 1904 - 2024 Q4 FY 24 VS Q4 FY 23 PERFORMANCE - A SNAPSHOT FINANCIAL PERFORMANCE (in INR Mn) PARTICULARS Q4 FY 24 Q4 FY 23 INC / (DEC) Growth % Net Interest Income 5,466 5,143 323 6% Other Income 1,752 1,950 -198 -10% Operating Expenses 3,700 2,923 777 27% Gross Profit 3,518 4,17
Slide 19: Provisions & Contingencies – Breakup
TRUST AND EXCELLENCE 1904 - 2024 PROVISIONS & CONTINGENCIES – BREAKUP (in INR Mn) PARTICULARS Q4 FY 24 Q4 FY 23 FY 2024 FY 2023 Q3 FY 24 Provision for: - Tax 650 400 2,150 2,400 650 - Bad Debts 330 1,750 3,270 6,900 260 - Contingency -20 10 -170 -175 200 - Standard Assets 40 -50 -170 -200 - - Restru
Slide 20: FY24 vs FY23 – Income and Expenses Breakup
TRUST AND EXCELLENCE 1904 - 2024 FY 24 VS FY 23 – INCOME AND EXPENSES BREAKUP INTEREST INCOME BREAKUP INTEREST EXPENSES BREAKUP (in INR Mn) PARTICULARS FY 24 FY 23 Growth % PARTICULARS FY 24 FY 23 Growth % Interest on Loans 41,534 38,009 9% Int Exp on Deposits 28,990 22,804 27% Interest on Investmen
Slide 21: Q4 FY24 vs Q4 FY23 – Income and Expenses Breakup
TRUST AND EXCELLENCE 1904 - 2024 Q4 FY 24 VS Q4 FY 23 – INCOME AND EXPENSES BREAKUP INTEREST INCOME BREAKUP INTEREST EXPENSES BREAKUP (in INR Mn) PARTICULARS Q4 FY 24 Q4 FY 23 Growth % PARTICULARS Q4 FY 24 Q4 FY 23 Growth % Interest on Loans 10,806 9,743 11% Int Exp on Deposits 7,574 6,351 19% Inter
Slide 22: Deposits and Advances Growth – Over the Years
DEPOSITS AND ADVANCES GROWTH – OVER THE YEARS TRUST AND EXCELLENCE 1904 - 2024 DEPOSITS ADVANCES (in INR Mn) 5,56,566 4,64,815 5,23,979 4,39,708 4,76,897 4,11,560 4,45,370 3,70,206 4,08,325 3,45,762 31-3-2020 31-3-2021 31-3-2022 31-3-2023 31-03-2024 31-3-2020 31-3-2021 31-3-2022 31-3-2023 31-03-2024
Slide 23: Income Growth Over the Years
INCOME GROWTH OVER THE YEARS… TRUST AND EXCELLENCE 1904 - 2024 (in INR Mn) NET INTEREST INCOME OTHER INCOME 21,628 21,235 19,165 8,104 18,297 16,752 7,591 7,417 6,799 6,887 31-MAR-2020 31-MAR-2021 31-MAR-2022 31-MAR-2023 31-MAR-2024 31-MAR-2020 31-MAR-2021 31-MAR-2022 31-MAR-2023 31-MAR-2024 CEB NET
Slide 24: Key Business Indicators
TRUST AND EXCELLENCE 1904 - 2024 KEY BUSINESS INDICATORS PARTICULARS Q4 FY 24 Q4 FY 23 FY 24 FY 23 Q3 FY 24 Cost of Deposits 5.75% 5.07% 5.59% 4.66% 5.67% Yield on Advances 9.85% 9.31% 9.72% 9.23% 9.62% Yield on Investments 6.39% 5.97% 6.27% 5.89% 6.31% Net Interest Margin 3.66% 3.65% 3.65% 3.89% 3.
Slide 25: Key Business Ratios – Yearly Trends
KEY BUSINESS RATIOS – YEARLY TRENDS TRUST AND EXCELLENCE 1904 - 2024 NET INTEREST MARGIN RETURN ON ASSETS 5.00% 1.70% 1.60% 1.52% 4.50% 1.46% 1.50% 1.40% 1.35% 3.98% 4.00% 3.98% 4.00% 3.89% 1.30% 3.65% 1.15% 1.20% 3.50% 1.10% 1.00% 1.00% 3.00% 0.90% 31-MAR-20 31-MAR-21 31-MAR-22 31-MAR-23 31-MAR-24
Slide 26: Cost of Deposits & Yield on Advances
COST OF DEPOSITS & YIELD ON ADVANCES TRUST AND EXCELLENCE 1904 - 2024 (in %) 16 14 13.43 13.18 12.83 12.10 12 11.46 10.95 10.76 9.91 9.72 10 9.36 9.23 8.37 8.15 7.62 8 6.82 6.29 6.17 6.20 6 5.36 5.59 4.68 4.66 4 2 0 Mar 14 Mar 15 Mar 16 Mar 17 Mar 18 Mar 19 Mar 20 Mar 21 Mar 22 Mar 23 Mar 24 Spread
Slide 27: Loan Book – Products Composition
TRUST AND EXCELLENCE 1904 - 2024 LOAN BOOK – PRODUCTS COMPOSITION % to Total Advances Trading & MSME loans constitute about 46% 1% Bills Purchased & Diversified credit portfolio reduces credit risk and Lower Bills Discounted ticket size backed by adequate collaterals Term Loan 35% Cash Credit & Dema
Slide 28: Loan Book Sectoral Deployment – Position as on 31.03.2024
LOAN BOOK SECTORAL DEPLOYMENT – POSITION AS ON 31.03.2024 Large Industries 4,849 TRUST AND EXCELLENCE 1904 - 2024 LAD Retail Traders (in INR Mn) 8,249 7,017 Wholesale Traders Infrastructure 11,194 3,032 NBFC 1% 11,946 2% 2% 2% Personal Loans 3% 13,634 3% Housing 21,133 4% 38% C R E 6% 27,288 SECTORA
Slide 29: Loan Book – Advances to Major Industries
Corporate Governance Loan Book – Advances to Major Industries TRUST AND EXCELLENCE 1904 - 2024 (in I N R M n ) Advances to Major Industries 31st March 2024 TEXTILE a) Cotton 17,612 (4%) b) Other Textiles 24,055 (5%) METALS a) Iron & Steel 10,103 (2%) Amount % to Total Industry Name b) Other Metals 8
Slide 30: Gold Loan Book – Q4 FY24
GOLD LOAN BOOK – Q4 FY 24 TRUST AND EXCELLENCE 1904 - 2024 (in INR Mn) GOLD LOAN PORTFOLIO Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Gold Loan – Agriculture 69,631 64,774 60,639 56,847 61,130 Gold Loan – Non-Agriculture 40,641 43,031 48,159 49,063 49,317 Total Gold Loans 110,272 107,805 108,798 105,910 110
Slide 31: Asset Quality
TRUST AND EXCELLENCE 1904 - 2024 ASSET QUALITY (in INR Mn) GROSS NPA QTM & GROSS NPA % NET NPA QTM & NET NPA % 18,932 19,332 19,202 18,544 11,911 10,752 10,176 14,134 5.11% 8,987 4.70% 7,785 4.37% 4.09% 2.97% 2.95% 3.99% 2.29% 2.36% 1.97% 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-20 3
Slide 32: Asset Quality Position – Movement Over the Years
ASSET QUALITY POSITION – MOVEMENT OVER THE YEARS TRUST AND EXCELLENCE 1904 - 2024 (In INR MN) FY MAR-19 FY MAR-20 FY MAR-21 FY MAR-22 FY MAR-23 Q4 FY 24 FY MAR-24 NPA Opening balance 8,565 9,771 14,134 18,932 19,332 19,681 19,902 Additions A 6,322 11,104 11,131 12,757 13,290 2,194 10,135 Recovery ma
Slide 33: Restructured Accounts
RESTRUCTURED ACCOUNTS TRUST AND EXCELLENCE 1904 - 2024 Quarter wise balance outstanding in respect of Restructured Standard borrowers (In INR Mn) Sep-21 Mar-22 Mar-23 Dec-23 Mar-23 Type of Restructuring No. of No. of No. of No. of No. of Amt Amt Amt Amt Amt Borrowers Borrowers Borrowers Borrowers Bo
Slide 34: Security Receipts
SECURITY RECEIPTS TRUST AND EXCELLENCE 1904 - 2024 Balance outstanding of Security Receipts wrt NPA sold to ARC Period ended Amount (in INR Mn) Mar-20 2474 Mar-21 1429 Mar-22 917 Sep-22 804 Dec-22 12 Mar-23 12 Jun-23 319 Sep-23 313 Dec-23 313 Mar-24 313 In Q3 FY 23, we had written off SRs which had
Slide 35: Investments – At a Glance
TRUST AND EXCELLENCE 1904 - 2024 INVESTMENTS – AT A GLANCE Investments Breakup and Category wise (in INR Mn) Particulars Mar-2024 Mar-2023 SLR Securities 155,203 142,678 Non-SLR Securities 1,524 924 Total Investments 156,727 143,602 Yield on Investments Investments Breakup: - A FS 34,161(22%) 29,955
Slide 36: Digital Initiatives
TRUST AND EXCELLENCE 1904 - 2024 DIGITAL INITIATIVES 35
Slide 37: New Digital Offerings
TRUST AND EXCELLENCE 1904 - 2024 New Digital Offerings Product Offerings 01 02 03 04 05 napID Digital UPI Voice UPI Lite New Initiatives (Zero Factor Multilingual Bot Payment Lending Authenticator) U Pay to Whatsapp Products BBPS Scan & Pay/ QR UPI ATM - ICCW Contact Banking Technology/ API/Robotic
Slide 38: Digital Products
TRUST AND EXCELLENCE Digital Products 1904 - 2024 New product Digital Lending - napID launch Instant Loans (Zero Factor Housing Loan Authenticator) 1. Fraud Filter Layer – RBI’s a) Hello! UPI – Conversational Payment Loan Against Retail Property approved Zero Factor b) UPI LITE Authenticator & Anti
Slide 39: API Banking – Strategic Partnerships
TRUST AND EXCELLENCE 1904 - 2024 Strategic Partnerships Account Digital Opening Lending Payments API BANKING Correspondent Customer Banking Digital Onboarding Insurance 0 7 38
Slide 40: Awards Received from April 2023 to May 2024
TRUST AND EXCELLENCE Awards Received from April 2023 to May 2024 1904 - 2024 10 Awards received in various categories from April to December’23 18 Awards Received in various categories from January to May 2024* Digital Transformation IBEX INDIA 2024 Tech Awards BFSI Innovation Confex &Awards 2024 Di
Slide 41: Branch Network
TRUST AND EXCELLENCE 1904 - 2024 BRANCH NETWORK 42
Slide 42: Pan India Presence with Strong Foothold in the South
PAN INDIA PRESENCE WITH STRONG FOOTHOLD IN THE SOUTH TRUST AND EXCELLENCE 1904 - 2024 No. of % of % of % of STATE Branches Deposits Advances Business TAMILNADU 524 80% 66% 74% ANDHRAPRADESH 54 2% 7% 5% KARNATAKA 50 7% 5% 6% TELENGANA 40 3% 6% 4% MAHARASHTRA 26 3% 4% 3% GUJARAT 26 1% 3% 2% KERALA 18
Slide 43: Shareholding Pattern
TRUST AND EXCELLENCE 1904 - 2024 SHAREHOLDING PATTERN 44
Slide 44: A Well Diversified Investor Base
A WELL DIVERSIFIED INVESTOR BASE Position as on 31-Mar-2024 TRUST AND EXCELLENCE 1904 - 2024 Major Institutional Shareholders QIB, NRI, SHAREHOLDERS* HOLDING % 3.17 1.15 SBI Mutual Fund * 7.58 CAPITAL GROUP USA * 6.12 Corp Bodies, Others, HDFC AMC * 6.08 2.66 KOTAK FUND 3.02 2.37 ICICI PRUDENTIAL FU
Slide 45: Corporate Governance
TRUST AND EXCELLENCE 1904 - 2024 CORPORATE GOVERNANCE 46
Slide 46: A Well Experienced and Strong Board
A WELL EXPERIENCED AND STRONG BOARD TRUST AND EXCELLENCE Shri. G. Mahalingam| M.Sc., MBA., CAIIB Dr N. Kamakodi | B.Tech., MBA., PhD., CAIIB 1904 - 2024 M.D. & C.E.O. Non-Executive Chairman Dr. N. Kamakodi is serving as MD & CEO of the Bank from May 2011. He Shri. Gurumoorthy Mahalingam is a career
Slide 47: Transparent Corporate Governance Practices
TRANSPARENT ‘CORPORATE GOVERNANCE’ PRACTICES TRUST AND EXCELLENCE 1904 - 2024 Board consists Various sub- of 9 Independent committees of Code of conduct Directors (including Board functions Disclosure norms KYC / AML Norms for Directors and 1 Women Director) to oversee the strictly adhered to strict
Slide 48: Contact
Contact TRUST AND EXCELLENCE 1904 - 2024 Regd. Office : 149,TSR Big Street, Kumbakonam – 612001,Tamilandu. Admin Office : "Narayana" No.24 B, Gandhi Nagar, Kumbakonam - 612001,Tamil Nadu. Tel : 0435-2402322,2401622,| FAX:0435-2431746 | www.cityunionbank.com INVESTOR CONTACT Raguraman Gopu, SM Locate