Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q4 FY2015 Earnings Presentation
38 slides from Union Bank Of India's earnings presentation, May 12, 2015
Slide 1: Financial Results Q4 FY15 & FY 2014-15
Financial Results Q4 FY15 & FY 2014-15 May 12, 2015
Slide 2: Highlights
Highlights • Global Business increased by 9.0% to ` 579627 crore Business • Savings Deposits grew by 9.9%; Share of High cost deposits declined to 5.8% from 12.6% • Core fee income increased by 38.2% over Q3 Core Fee • Exchange profit & recovery in written-off accounts also increased by 35.3% & 31.4
Slide 3: Quarterly Trends
Quarterly Trends Non Interest Income 1143 Operating Profit (Rs crore) 1652 877 775 812 691 1465 1372 1320 1334 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Cost to Income Ratio (%) ROE (%; anualised) 15.1 53.94 13.6 53.31 9.7 51.15 51.13 8.3 6.6 49.38 Mar-14 Jun-14 Sep-14 De
Slide 4: Quarterly Trends
Quarterly Trends Slippages (Rs crore) Cash Recovery+Upgradation (Rs. crore) 867 1968 1738 1547 558 1274 386 1200 318 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-14 Sep-14 Dec-14 Mar-15 5.08 GNPA (%) 4.96 4.69 4.27 Jun-14 Sep-14 Dec-14 Mar-15 4
Slide 5: Business Performance
safari de ([g) Union Bank Business Performance
Slide 6: Deposits
Deposits Parameters Mar Dec Mar Growth (%) (Rs crore) 2014 2014 2015 Y-o-Y Q-o-Q Total Deposits 297675 312912 316870 6.5 1.3 Current Deposits 22703 21891 21092 -7.1 -3.7 Savings Deposits 65098 68019 71558 9.9 5.2 CASA 87801 89910 92650 5.5 3.1 • The Bank opened 35000 accounts through Tabulous Bankin
Slide 7: Advances
Advances Parameters Mar Dec Mar Growth (%) (Rs crore) 2014 2014 2015 Y-o-Y Q-o-Q Gross Advances 234332 248099 262757 12.1 5.9 - Domestic 216751 227339 241323 11.3 6.2 - Overseas 17581 20760 21434 21.9 3.3 Retail Advances 24931 30155 31664 27.0 5.0 Agriculture 25614 29707 31584 23.3 6.3 MSME 45372 52
Slide 8: Advances
Advances RAM Share (%) (Domestic) Annual Growth (%) Advances RAM segment 49.6 49.3 30.2 30.8 30.3 26.6 24.0 17.1 18.1 44.3 12.1 10.3 8.9 Mar-14 Dec-14 Mar-15 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Composition of Retail Portfolio 8
Slide 9: Advances – Top Exposures
Advances – Top Exposures Sl. Sectors Top 10 Sectors Top 10 Sectors (Domestic ) (Domestic ) % Share in Advances (31st Mar 2015) Mar Sep Dec % Share Amount 2014 2014 2014 ( ` crore) 1 Infrastructure 16.3 17.1 15.7 15.9 38350 2 Retail Advances 11.5 12.6 13.3 13.1 31664 3 Agriculture 11.8 12.7 13.1 13.1
Slide 10: Investments
Investments Investments (` crore) 101520 94169 94497 Mar 14 Dec 14 Mar 15 Mar 2015 % to Total Duration (Yrs) Mar 2015 Held to Maturity 70886 75.0 4.24 Held for Trading 20 0.02 3.94 Available for Sale 22909 24.96 4.44 Total Investment 94497 100 4.29 • 22.30% of AFS portfolio is interest sensitive 10
Slide 11: Overseas Operations
Overseas Operations Overseas branches at Business from Overseas Branches Hong Kong, DIFC (Dubai) & Growth (%) Mar-14 Mar-15* Antwerp (Belgium) US $ YoY-US$ (Rs crore) Business 3.7 billion 4.2 billion 13.2 (22445) (26074) Representative offices at Shanghai, Beijing, Abu Dhabi and Sydney Total 0.8 bil
Slide 12: Statement of Assets & Liabilities
Statement of Assets & Liabilities (` crore) LIABILITIES As at As at As at Growth (%) 31.03.14 31.12.14 31.03.15 Y-o-Y Q-o-Q Capital 741 636 636 -14.2 0.0 Reserves and surplus 17734 19156 19126 7.8 -0.2 Deposits 297676 312912 316870 6.4 1.3 Borrowings 29317 30658 35360 20.6 15.3 Other Liabilities and
Slide 13: Financial Highlights
Financial Highlights
Slide 14: NII: Cost & Yield Ratio
NII: Cost & Yield Ratio YoY Growth (%) in Net Interest Income (Cumulative) 10.8 8.8 8.5 7.2 4.5 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Parameters Mar-14 Dec-14 Mar-15 FY 2014 FY 2015 (Q4) (Q3) (Q4) Domestic Global Domestic Global Domestic Global Domestic Global Domestic Global Cost of 7.37 7.29 7.43 7.3
Slide 15: Non-Interest Income
Non-Interest Income (` crore) Parameters Mar-14 Dec-14 Mar-15 Growth Growth FY FY Growth (Q4) (Q3) (Q4) (%)-Y/Y (%)-Q/Q 2014 2015 (%) a. Core Non Interest 519 455 630 21.3 38.4 1635 1872 14.5 Income b. Treasury Income 194 379 433 123.4 14.0 922 1334 44.7 W/w Profit on Sale of 83 252 283 241.2 12.5 4
Slide 16: Operating Profit
Operating Profit (` crore) Mar-14 Dec-14 Mar-15 Growth FY 2014 FY 2015 Growth (Q4) (Q3) (Q4) (%)-Y/Y (%) Parameters Interest Income 7670 8044 8241 7.4 29349 32084 9.3 Interest 5618 5924 6119 8.9 21470 23640 10.1 Expenditure Net Interest 2052 2120 2122 3.4 7879 8444 7.2 Income Non Interest 775 877 11
Slide 17: Provisions
Provisions (` crore) Parameters Mar-14 Dec-14 Mar-15 FY FY (Q4) (Q3) (Q4) 2014 2015 NPAs 670 674 833 2106 2537 Standard Assets 71 22 146 309 240 Depreciation on Investment 5 -26 47 88 -38 Shifting Loss 0 0 0 110 39 Restructured Advances 60 106 -83 255 127 Others (FITL etc) 115 76 67 281 135 Taxation
Slide 18: Net Profit
Net Profit ` crore Quarter Annual 664 579 1782 443 371 1696 302 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 FY 2014 FY 2015 18
Slide 19: Efficiency/ Profitability Ratios
Efficiency/ Profitability Ratios Sl. Efficiency Parameters Mar-14 Dec-14 Mar-15 FY FY (Q4) (Q3) (Q4) 2014 2015 1 Return on Assets (%) 0.68 0.34 0.47 0.52 0.49 2 Return on Net worth (%) 13.64 6.60 9.70 9.98 9.73 3 Cost to Income Ratio (%) 53.31 51.13 49.38 51.24 51.34 4 Book Value Per Share (Rs) 269.
Slide 20: Asset Quality
Asset Quality
Slide 21: Asset Quality
Asset Quality (` crore) Parameters Mar 14 Dec 14 Mar 15 FY 2014 FY 2015 (Q4) (Q3) (Q4) Gross NPAs - Opening 8776 11462 12596 6314 9564 Add : Additions 1199 1738 1547 5479 6527 Less : Reductions 411 604 1112 2229 3060 1. Recoveries 141 358 550 765 1537 2. Upgradation 48 28 317 551 592 3. Write Off 22
Slide 22: Asset Quality
Asset Quality (` crore) Sectors Slippages NPAs % to % to Sector Loan During Q4 Mar Total Mar Sept Dec Mar FY 15 2015 NPAs 2014 2014 2014 2015 Agriculture 147 1577 12.1 6.22 5.73 5.42 5.08 Micro & 558 2482 19.0 5.02 5.26 5.64 6.09 Small (MSE) Retail Loans 95 615 4.7 2.03 2.10 2.03 1.96 Others 747 835
Slide 23: Sale of Assets to ARCs
Sale of Assets to ARCs (` crore) Parameters FY FY FY 2014-15 2014-15 2013-14 Quarter Q1 Q2 Q3 Q4 Outstanding of Accounts sold 421 400 29 0 339 768 Of which, Prudential written off 308 73 29 0 261 363 (PWO) Accounts sold Existing Gross NPAs sold 113 0 0 0 78 78 Others/SMA 0 327 0 0 0 327 23
Slide 24: Restructured Assets
Restructured Assets (` crore) Mar-15 (Q4) FY 2014-15 Particulars Standard NPA Total Standard NPA Total Restructured Assets as on 12347 4308 16655 12353 3080 15433 (January 1, 2015/April 1, 2014) Fresh Restructuring during the 2367 1 2368 5002 1 5003 (Quarter/ Year) Upgradation to Restructured Accoun
Slide 25: Sector wise Standard Restructured Accounts
Sector wise Standard Restructured Accounts (` crore) Sector Amt. % to Standard Quarterly Slippages (%) from Restructured Restructured Assets 1 Infrastructure 8173 59.8 5.0 4.0 of which a. Power 6645 48.7 2.9 2.0 w/w SEBs 5663 41.5 1.4 2 Iron & Steel 1355 9.9 3 Hotel 661 4.8 Mar-14 Jun-14 Sep-14 Dec-
Slide 26: Basel III: Capital & Liquidity
Basel III: Capital & Liquidity 10.80 10.30 10.22 7.54 7.32 7.50 Liquidity Coverage Ratio (LCR) CRAR LCR for quarter ended March 2015 Tier I 3.26 at 111.7% compared to regulatory 2.98 2.72 Tier II minimum requirement of 60% Mar-14 Dec-14 Mar-15 (` crore) Mar 2014 Jun 2014 Sep 2014 Dec 2014 Mar 2015
Slide 27: Extensive & specialized distribution network
Extensive & specialized distribution network focused on the needs of the different business segments Branch Distribution by Urbanization Metro 18.0% Urban 21.0% Rural Jammu & Kashmir 31.0% Semi Urban Chandigarh (12) (21) (10) (22) 30.0% Arunachal Pradesh Meghalaya (1) (1) Punjab Himachal Pradesh (5)
Slide 28: Multiple Delivery Channels
Multiple Delivery Channels Internet Banking User (lakhs) Mobile Banking User (thousands) 11.1 9.6 137 8.3 7.4 6.5 87 55 40 42 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Transactions through Alternative Delivery Channels (53.3%) 11.61 ATMs 0.2 0.8 Internet Banking 4.6 Mobil
Slide 29: Financial Inclusion
Financial Inclusion Progress under Pradhan Mantri Jan Dhan Yojana (PMJDY) Parameters Achievements of the Bank Villages covered 18396 Sub Service Areas 5407 Urban Wards 2581 Accounts opened till March 31, 2015 46 Lakh Deposits ` 348 Crore RuPay Cards issued 45 Lakh Aadhar Seeding 12 Lakh 29
Slide 30: Shareholding Details
Shareholding Details • Share Capital ` 635.8 crore •No. of Equity Shares: 63.58 crore • Net worth: ` 18306 crore • Book Value per share ` 287.93 •Return on Equity 9.73% •Market Cap ` 9950 crore Shareholding Pattern (%) 60.47 60.13 8.58 18.27 12.68 8.47 16.62 14.78 Govt. of India FIIs & FMFs Banks, I
Slide 31: Awards During the Year
Awards During the Year IBA Technology Financial Awards, 2014-15 Inclusion & Payment Golden • Winner : Best Express Payment Initiatives NPCI Systems (FIPS) Peacock Technology • Joint Winner: Best Excellence • Financial Award for Initiative to Enhance Inclusion Senate Customer Experience Award 2014 HR
Slide 32: IT-Initiatives taken by the Bank
IT-Initiatives taken by the Bank •Tabulous Banking a tablet based Savings Bank account opening process under its customer service excellence •Biometric Authentication at ATMs through UIDAI •Card to card fund transfer through ATM •e-KYC for opening of account based on Aadhaar Number & Fingerprint •MT
Slide 33: Other Initiatives
Other Initiatives •In association with IRCTC, the Bank launched IRCTC Union Bank RuPay Prepaid Card. The Prepaid card is the first of its kind in the industry where both virtual as well as physical cards are being issued to the customer. •The Bank launched RuPay Platinum Debit Card for its High Net
Slide 34: Attractive Schemes Focusing on RAM
Attractive Schemes Focusing on RAM 34
Slide 35: Business Transformation
Business Transformation Category Potential outcomes Redefine Bank’s organization structure for superior performance and Process redesign 1 synergies (eg., enable faster decision making & process centralizations / decentralisations) A Revamp Union Xperience branches and extreme makeover of existing 2
Slide 36: Business Transformation
Business Transformation Category Potential outcomes Improve availability, customer experience and usage/migration across 8 Multi-channel alternate channels – ATM, Mobile, Call Centre and Website D enablement Launch service to sales initiatives to ensure significant business generation and 9 fee inco
Slide 37: 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 statem
Slide 38: Investor queries
Investor queries: investor.relations@unionbankofindia.com
Union Bank of India — Q4 FY2015 Earnings Presentation on 6ix