Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q3 FY19 Earnings Presentation
42 slides from Union Bank Of India's earnings presentation, Jan 21, 2019
Slide 1: Cover letter to stock exchanges on results presentation
Ref: ISD/18-19/341 21% January, 2019 } The Deputy General Manager, The Deputy General Manager, Corporate Relationships Dept. Listing Dept. BSE Ltd. National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot No.C/1, G Block Dalal Street, Bandra-Kurla Complex, Bandra (E), Mu
Slide 2: Financial Results Q3/FY19 & 9M/FY19
Financial Results Q3/FY19 & 9M/FY19 Please follow us on: January 21, 2019 @unionbankofindia @UnionBank Tweets UnionBankInsta UnionBankofIndiaUtube UnionBankofIndia
Slide 3: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 New Initiatives & Outcomes #4 Awards & Accolades 2
Slide 4: Snapshot as on December 31, 2018
Snapshot as on December 31, 2018 Total Business ` 719810 crore Domestic Advances 8% Gross Advances ` 317513 crore Total Deposits ` 402297 crore Cash Recovery Saving Deposits 9M FY19 9.7% Operating Profit(9M FY19) ` 5611 crore 159% Year on Year Growth Basel III Tier I CAR 9.02 % Basel III Total CAR 1
Slide 5: Business Performance - Liabilities
Business Performance - Liabilities Total Deposits (` crore) 1 % YOY 408502 399092 402297 398328 5305 2670 7456 2207 403197 396885 399627 2.2 % YOY 390872 Dec-17 Mar-18 Sep-18 Dec-18 Domestic deposit Overseas deposit CASA Portfolio CASA & Avg CASA (%) 5.7 % YOY 33.2 34.1 34.5 135347 139241 140815 143
Slide 6: Business Performance - Assets
Business Performance - Assets Gross Advances (` crore) 1 % YOY 313860 318563 317513 314474 7.9 % YOY 281028 288336 302007 303330 33446 25524 16556 14183 Dec-17 Mar-18 Sep-18 Dec-18 Domestic Advances Overseas advances Retail 22.1% YOY Agriculture 6.8% YOY MSME 5.6% YOY 56524 47257 51270 65936 66147 4
Slide 7: Diversified Loan Portfolio - RAM
Diversified Loan Portfolio - RAM RAM* share (%) in Domestic advances Retail Dec-18 56.0 26.0 Sep-18 54.2 49.7 2.5 Mar-18 55.0 8.5 6.0 7.4 Dec-17 54.5 Home Vehicle Education Mortgage Personal Others *Retail, Agriculture and MSME collectively called as “RAM sector” 6
Slide 8: Diversified Loan Portfolio - RAM
Diversified Loan Portfolio - RAM Composition of Agri loan book(%) 41 41 38 38 More than 62% of Agri. portfolio is 59 59 62 62 for Small & Marginal farmers Dec-17 Mar-18 Sep-18 Dec-18 Small & Marginal Other Agri Composition of MSME loan book(%) 24 24 24 24 76% of 44 44 43 42 MSME portfolio is 32 32
Slide 9: Diversified Loan Portfolio-Industry Exposure
Diversified Loan Portfolio-Industry Exposure Top Sector Exposure S No. Sectors (% Share in Domestic Advance) Sep-18 Dec-18 ` Crore % Share ` Crore % Share 1 Infrastructure 50478 16.7 51611 17.0 2 Trade 38082 12.6 39155 12.9 3 NBFCs and HFCs 35581 11.8 36297 12.0 w/w HFCs 8920 3.0 12438 4.1 4 Basic M
Slide 10: Investments
Investments Global Investment (` Crore) 124436 126524 130063 121289 20 23 26 26 80 77 74 74 Dec-17 Mar-18 Sep-18 Dec-18 SLR(%) Non-SLR(%) Duration Particulars (Domestic) Sept 2018 Dec 2018 (Years) (` Crore) (` Crore) Sep-18 Dec-18 Available for Sale 41818 36053 3.10 2.96 W/w SLR 17392 12795 3.53 3.1
Slide 11: Overseas Operations
Overseas Operations Business from Overseas Operations Growth (%) US $ in billion Dec Sep Dec (` crore) 2017 2018 2018 Y-o-Y Y-o-Y (US$) (INR) 6.4 2.6 2.4 Total Business -62.5 -58.8 (40902) (18764) (16853) 1.2 0.3 0.4 Total Deposits -66.7 -64.2 (7456) (2207) (2670) 5.2 2.3 2.0 Total Advances -61.5 -5
Slide 12: Financial Inclusion - PMJDY
Financial Inclusion Progress under Pradhan Mantri Jan Dhan Yojana (PMJDY) Parameters Achievements of the Bank Villages covered 18396 No. of BCs 5407 Sub Service Areas 5407 Urban Wards 2581 Accounts opened till Dec 31, 2018 94 Lakh Deposits ` 2110.9 Crore RuPay Cards issued 47.91 Lakh Aadhar Seeding
Slide 13: Financial Inclusion - Mudra Yojana
Financial Inclusion Total outstanding since inception under Mudra loan: ` 6708 crore Progress under Mudra Yojana April to December 2018 (PMMY) Category No. of Sanctioned Amount Outstanding Amount Accounts (` crore) (` crore) Shishu (< ` 50k) 23966 96 76 Kishor (Above ` 50k-5 Lakh) 89404 1914 1585 Ta
Slide 14: Statement of Assets & Liabilities
Statement of Assets & Liabilities (` crore) As at As at As at As at Growth (%) 31.12.17 31.03.18 30.09.18 31.12.18 Y-o-Y Q-o-Q LIABILITIES Capital 856 1169 1169 1169 36.6 0.0 Reserves and surplus 22331 23928 24243 24390 9.2 0.6 Deposits 398518 408501 399092 402297 0.9 0.8 Borrowings 44418 45681 4436
Slide 15: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 New Initiatives & Outcomes #4 Awards & Accolades 14
Slide 16: Cost & Yield Ratio
Cost & Yield Ratio Parameters Dec-17 (Q3) Sep-18 (Q2) Dec-18 (Q3) Dec-17 (9M) Dec-18 (9M) Domestic Global Domestic Global Domestic Global Domestic Global Domestic Global Cost of Deposit 5.68 5.61 5.54 5.52 5.61 5.59 5.80 5.72 5.56 5.54 Cost of Funds 4.91 4.61 4.98 4.87 4.95 4.87 5.14 4.84 4.94 4.85
Slide 17: Movement of NIM & NII
Movement of NIM & NII 2.34 (` crore) 2548 2494 2493 2.23 2.23 2.23 2.18 2.18 1.99 2193 1.9 Dec-17 Mar-18 Sep-18 Dec-18 Dec-17 Mar-18 Sep-18 Dec-18 Net Interest Income NIM Domestic NIM Global 2.23 2.25 2.22 7613 2.13 7112 9M FY 2018 9M FY 2019 9M FY 2018 9M FY 2019 NIM Domestic NIM Global Net Interes
Slide 18: Operating Revenues
Operating Revenues Growth Growth Dec-17 Mar-18 Sep-18 Dec-18 9M 9M Growth Parameters (%) (%) (Q3) (Q4) (Q2) (Q3) FY18 FY19 (%) YoY QoQ Interest Income 8260 8112 8539 8477 2.6 -0.7 24636 25717 4.4 Interest Expense 5712 5919 6045 5984 4.8 -1.0 17524 18104 3.3 Net Interest Income 2548 2193 2494 2493 -2
Slide 19: Non Interest Income
Non Interest Income Growth Growth Dec-17 Mar-18 Sep-18 Dec-18 9M 9M Growth Parameters (%) (%) (Q3) (Q4) (Q2) (Q3) FY18 FY19 (%) YOY QOQ a. Core Non Interest Income 597 1127 641 660 10.6 3.0 1752 2009 14.7 b. Treasury Income 155 277 153 191 23.2 24.8 1557 632 -59.4 W/w Profit on Sale of 6 132 82 11
Slide 20: Operating Profit
Operating Profit (` crore) Operating Profit(Quarterly) 1890 1772 1750 1654 Dec-17 Mar-18 Sep-18 Dec-18 Operating Profit (9 Months) 5650 5611 9M FY18 9M FY19 19
Slide 21: Provisions
Provisions (` crore) Dec-17 Mar-18 Sep-18 Dec-18 Parameters 9M FY18 9M FY19 (Q3) (Q4) (Q2) (Q3) NPAs 2521 5639 1710 2139 7861 5652 Standard Assets 110 -737 21 71 23 116 Depreciation on Investment 700 1120 146 -551 440 -378 Shifting Loss 0 0 0 0 367 411 Restructured Advances -1 -183 -229 0 -52 -254 O
Slide 22: Net Profit
Net Profit (` crore) Net profit(Quarterly) 153 139 Dec-17 Mar-18 Sep-18 Dec-18 -1250 -2583 Net Profit(9 Months) 422 9M/FY18 9M/FY19 -2664 9M/FY18 9M/FY19 21
Slide 23: Efficiency/Profitability Ratios
Efficiency/Profitability Ratios Return on Avg. Assets (%) Cost to Income(%) 51.6 51.2 0.12 47.8 46.8 48.1 0.11 0.11 Dec-17 Sep-18 Dec-18 9M 9M (Q3) (Q2) (Q3) FY 18 FY 19 -1.01 -0.74 S. Efficiency Dec-17 Mar-18 Sep-18 Dec-18 9M 9M No. Parameters (Q3) (Q4) (Q2) (Q3) FY 2018 FY 2019 1 Return on Equity
Slide 24: Efficiency Ratios
Efficiency Ratios Dec-17 Mar-18 Sep-18 Dec-18 9M 9M Sn. Profitability Parameters (Q3) (Q4) (Q2) (Q3) FY 18 FY 19 Business per 1 ` crore 165.9 167.9 166.8 167.7 165.9 167.7 Branch Business per 2 ` crore 18.8 19.2 18.3 19.1 18.8 19.1 employee Gross Profit per 3 ` crore 1.5 1.8 1.6 1.6 1.8 1.7 Branch G
Slide 25: Asset Quality: Movement in Non Performing Assets
Asset Quality: Movement in Non Performing Assets (` crore) Dec-17 Mar-18 Sep-18 Dec-18 9M 9M Parameters (Q3) (Q4) (Q2) (Q3) FY 18 FY 19 Gross NPAs - Opening 38286 40988 50973 50157 33712 49370 Add : Additions 4187 10043 2667 2983 11326 10302 Less : Reductions 1485 1661 3483 3427 4050 9959 1. Recover
Slide 26: Asset Quality: Sectoral
Asset Quality: Sectoral (` crore) Sectoral NPA % Slippages During Sectors NPAs Dec 2018 Q3 FY 19 Dec-17 Sep-18 Dec-18 Retail Loans 268 1261 2.33 2.49 2.23 Agriculture 578 3642 6.06 7.62 7.71 Micro & Small (MSE) 557 6103 11.02 12.21 12.19 Medium & Large 1580 38707 18.15 22.82 26.22 Total 2983 49713 1
Slide 27: Asset Quality: Sectoral
Asset Quality: Sectoral Standard as on Sep 2018 Standard as on Dec 2018 Scheme Amount Amount Account Account (Rs. in crore) (Rs. in crore) 5:25 12 3452 12 3452 SDR 1 0* 1 0* S4A 3 122 2 68 *Account is Non-Fund Based S.N. Sector # Outstanding NPA Std. Restructured NPA + Std. Restructured (%) 1 Infras
Slide 28: Asset Quality - NCLT I & II
Asset Quality - NCLT I & II Provision fully provided to Accounts referred to NCLT under IBC 2016 (` crore) st nd 1 list 2 list Total Exposure to number of accounts referred under 8 15 23 IBC (as per RBI list) Loan Outstanding as of Dec 31, 2018 6004 3692 9696 Total Provisions held upto Dec 31, 2018
Slide 29: Basel III : Capital Adequacy
Basel III : Capital Adequacy Capital Adequacy Ratio RWA Optimization 91.2 11.50 11.55 11.43 89 87.3 11.37 86.0 2.72 2.43 2.52 2.42 8.65 9.07 9.02 9.02 58.7 58.1 58.2 57.4 Mar-18 Jun-18 Sep-18 Dec-18 Dec-17 Mar-18 Sep-18 Dec-18 RWA to Advance RWA to Assets Tier I Tier II CRAR (` crore) Particulars De
Slide 30: Shareholding Pattern
Shareholding Pattern Dec-18 Share Capital ` 1168.5 crore 7.97% 19.55% No. of Equity Shares 116.85 crore Govt. of India FIIs DIIs 5.05% Public & others 67.43% Net Worth ` 17590 crore Market Cap ` 10038 crore 29
Slide 31: Extensive & specialized distribution network
Extensive & specialized distribution network Branch Distribution by Urbanization METRO RURAL 21% 29% Jammu & Kashmir URBAN Chandigarh (13) (15) 20% SEMI- (10) (20) Arunachal Pradesh URBAN Meghalaya (1) (1) Punjab Himachal Pradesh (5) (5) 30% (140) (159) (20) (27) Uttarakhand (84) (118) Haryana (110)
Slide 32: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 New Initiatives & Outcomes #4 Awards & Accolades 31
Slide 33: Leveraging Technology - New Initiatives & Outcomes
New New Initiatives Initiatives & Outcomes & Outcomes SARALs SARAL ULPs USKs Lite IFBs MCBs Credit Centralization Revamped MSME Revamped Retail USKs for Rural & IFBs & MCBs for Leveraging Technology loan processing loan processing Semi Urban loans corporate loans centre centre Strategic Initiatives
Slide 34: New Initiatives & Outcomes: Centralized Processing Centres
New Initiatives & Outcomes More than 70% of Credit Appraisal centralized Structural Development: Creation of Centralized Processing Centres (CPCs) No of Units No. of Units Particulars Sectors covered (Mar-18) (Dec-18) ULP 73 73 Retail (Housing and Mortgage Loan) USK 4 28 Retail, Agriculture and MSME
Slide 35: New Initiatives & Outcomes: Efficient Rural Lending
New Initiatives & Outcomes Efficient Rural Lending….. Hub and spoke model to reach borrowers in Rural and Semi-Urban areas… Process flow Infrastructure Set-up Outcome* Agriculture Officers •Banking Correspondent •95% of proposals of reaching to borrowers; points activated for branches linked to USKs
Slide 36: New Initiatives & Outcomes: Improving Quality of Advances
New Initiatives & Outcomes Improving Quality of Advances….. Rated Advances - Lending to higher rated borrowers… Improving rating profile of New Retail loans sanctioned Retail CIBIL Rating Profile Rating Matrix of Outstanding Corporate 20 30 Loans 17 26 18.9 26.2 63 43 15.3 15.5 FY16-17 9MFY19 Below
Slide 37: Early Warning Signals (EWS)
NewEarly Warning Initiatives Signals (EWS) & Outcomes Early Warning Indicators to mitigate credit risk...... Logistic regression equation and derived coefficients created to predict the riskiness of the customer The EWS model identified 8 major contributors to predict propensity of slippage from ~20
Slide 38: New Initiatives & Outcomes: Digital Deepening
New Initiatives &New Outcomes Digital Deepening across business lines… Transaction New mobile Rupay qSPARC Union Combo Card banking app Debit Card Business USK Loan Processing : Real Time Data Capture Acquisition USK Loan Union Mudra CASA Acquisition OTS Recovery Processing Portal Tab Calculator App
Slide 39: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 New Initiatives & Outcomes #4 Awards & Accolades 38
Slide 40: Awards
Awards ASSOCHAM SMEs Excellence Awards •“Best SME offering” – Innovative Financial Solutions for MSMEs SKOCH Awards •SKOCH Gold Award – Banking & Finance Gold for Technology – Strategic Transformation (Union Samriddhi Kendra Model) •SKOCH Gold Award – Cyber Security Gold for Governance Risk Manageme
Slide 41: 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 42: Investor queries: investor.relations@unionbankofindia.com
Investor queries: investor.relations@unionbankofindia.com 41