City Union Bank Limited · NSE:CUB
City Union Bank — Investor Presentation (March 2018)
34 slides from City Union Bank's investor presentation, March 2018
Slide 1: Investor Presentation March 2018
INVESTOR PRESENTATION MARCH 2018 1
Slide 2: Disclaimer
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 only current as of its date. Certain
Slide 3: Table of contents
Table of contents 1. Overview Page : 04 2. Performance Highlights – March 2018 Page : 08 3. Financial Performance & Business Profile Page : 11 4. Branch Network Page : 30 5. Shareholding Pattern Page : 31 6. Corporate Governance Page : 32 3
Slide 4: Overview Facts & Figures
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Overview City Union Bank Ltd, the oldest private sector bank in India, was founded on October 31, 1904 and is headquartered at Kumbakonam, Tamil Nadu
Slide 5: Key milestones
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Key milestones Celebrated 110th year Foundation Day in Dec 2014 Incorporation Took over Initial Public Obtained licenses Rights issue @ Raised INR of the Bank
Slide 6: A specialized banking model aligned to Target Segment – SME/MSME
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern City Union Bank – A specialized banking model aligned to Target Segment – SME/MSME • SME/MSME specialized business model focusing on large untapped SM E/ M SM
Slide 7: Competitive Advantages
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Competitive Advantages • Continuous profitability and dividend payout in all 110+ years of operations Strong track record • Business growth of 20% CAGR in las
Slide 8: Q4 & FY 2017-18 Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Q4 & FY 2017-18 Performance – A snapshot Deposits increased by 9% from Rs.301 Bn to Rs.329 Bn Y-o-Y Advances registered a growth of 17% from Rs.241 Bn to
Slide 9: Q4 FY 2018 Vs Q4 FY 2017 Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Q4 FY 2018 Vs Q4 FY 2017 Performance – A snapshot (All figures in I N R M n) 328,526 282,386 610,912 79,567 9% 17% 13% 13% 301,157 241,125 542,282 70,390 Depo
Slide 10: FY 2018 Vs FY 2017 Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern FY 2018 Vs FY 2017 Performance – A snapshot (All figures in I N R M n) 328,526 282,386 610,912 79,567 9% 17% 13% 13% 301,157 241,125 542,282 70,390 Deposits A
Slide 11: FY 18 Vs FY 17 – Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern FY 18 Vs FY 17 – Performance – A snapshot (in I N R M n ) Financial Perform ance Inc / Particulars FY 2018 FY 2017 Growth Growth % (Dec) Deposits 328,526 301,
Slide 12: Q4 FY 18 Vs Q4 FY 17 – Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Q4 FY 18 Vs Q4 FY 17 – Performance – A snapshot (in I N R M n ) Financial Perform ance Particulars Q4 FY 2018 Q4 FY 2017 INC / (DEC) Growth % Q3 FY 2018 Net I
Slide 13: FY 18 Vs FY 17 – Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern FY 18 Vs FY 17 – Performance – A snapshot (in I N R M n ) Financial Perform ance Particulars FY 2018 FY 2017 INC / (DEC) Growth % Net Interest Income 14,303 1
Slide 14: Q4 FY 18 Vs Q4 FY 17 – Income and Expenses – Breakup
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Q4 FY 18 Vs Q4 FY 17 – Income and Expenses – Breakup (in I N R M n ) Interest Income Breakup Interest Expenses Breakup Q4 FY Q4 FY Growth Q4 FY Q4 FY Growth P
Slide 15: FY 18 Vs FY 17 – Income and Expenses – Breakup
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern FY 18 Vs FY 17 – Income and Expenses – Breakup (in I N R M n ) Interest Income Breakup Interest Expenses Breakup FY FY Growth FY FY Growth Particulars Particu
Slide 16: Strong Deposits and Advances growth
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Strong Deposits and Advances growth (in I N R M n ) Deposits Advances CAGR 10 % CAGR 13 % 2,82,386 3,28,526 3,01,157 2,41,125 2,71,581 2,12,531 2,40,750 1,80,
Slide 17: Income Growth over the years…
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Income Growth over the years… (in I N R M n ) Net I nterest I ncom e Grow th Other I ncom e Grow th CAGR 18 % CAGR 16 % 14,303 5,321 11,988 4,840 4,041 4,100
Slide 18: Key Business Indicators
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Key Business Indicators Particulars Q4 FY 2018 Q4 FY 2017 FY 2017-18 FY 2016-17 Cost of Deposits 6.22% 6.62% 6.29% 6.82% Yield on Advances 11.19% 11.86% 11.46
Slide 19: Key Business Ratios – Yearly trends
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Key Business Ratios – Yearly trends Net I nterest M argin R eturn on Assets 5.00% 1.65% 1.60% 4.42% 1.60% 4.50% 1.55% 1.49% 1.50% 1.50% 4.00% 4.17% 1.50% 3.81
Slide 20: Cost of deposits & Yield on advances
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Cost of deposits & Yield on advances 16.00% 14.00% 13.46% 13.56% 13.49% 13.43% 13.04% 13.18% 12.82% 12.83% 12.47% 12.10% 12.00% 11.46% 10.00% 8.44% 8.37% 7.98
Slide 21: Efficiency
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Efficiency Cost income ratio C AS A R a t io 44.10 42.83 23.37 24.22 19.23 20.37 40.94 17.79 40.10 38.46 31-Mar-2014 31-Mar-2015 31-Mar-2016 31-Mar-2017 31-Ma
Slide 22: Loan Book – Products Composition
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Loan Book – Products Composition % to Total Advances 1% 34% Cash Credit & Demand • Working capital loans yielding higher interest Loans constitute 66% of adva
Slide 23: Loan Book – Sectoral Deployment – Position as on 31.03.2018
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Loan Book – Sectoral Deployment – Position as on 31.03.2018 (in I N R M n ) Sectorial Deployment Secured & Unsecured Advances Agriculture 40,834 (14%) Amount
Slide 24: Loan Book – Advances to Major Industries
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Loan Book – Advances to Major Industries (in I N R M n ) Advances to Major Industries 31st March 2018 TEXTILE a) Cotton 13,032 (5%) b) Other Textiles 17,010 (
Slide 25: Asset Quality
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Asset Quality (in I N R M n ) G r oss NP A Q t m & Gr oss NP A % Net NP A Q t m & Net NP A % 8,566 4,748 4,083 6,820 3,232 5,120 2,328 3,358 1973 2,931 3.03%
Slide 26: Asset Quality Position – Movement over the years
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Asset Quality Position – Movement over the years FY FY FY FY Q4 FY FY (Rs in Mn) Mar - 14 Mar - 15 Mar - 16 Mar - 17 2018 2018 NPA Opening balance 1,731 2,931
Slide 27: Disclosure on Divergence in Asset Classification and Provisioning for NPAs
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Disclosure on Divergence in Asset Classification and Provisioning for NPAs In terms of RBI circular DBR.BP.BC.No.63/21.04.018/2016-17 dated 18th April 2017, b
Slide 28: Restructured Accounts
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Restructured Accounts Balance outstanding as on 31.03.2018 in respect of Restructured Standard borrowers No account has been restructured during Q4 FY 2018
Slide 29: Investments – At a Glance
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Investments – At a Glance Investments Breakup and Categoryw ise (in I N R M n) Particulars MAR 2018 MAR 2017 SLR Securities 76,380 66,978 Non-SLR Securities 3
Slide 30: Strong presence in the South
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Strong presence in the South As of Mar-2018 - 600 branches. 538 branches are located in South India out of which 415 in Tamil Nadu No. of % of % of % of State
Slide 31: A well diversified investor base
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern A well diversified investor base as of 31st Mar 2018 Ownership profile Major Institutional Shareholders Shareholders % of Holding Others, 0.79 FII, 0.29 HDFC
Slide 32: Transparent 'Corporate Governance' practices
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Transparent ‘Corporate Governance’ practices Board consists of 9 Independent Directors and 1 Non-Independent Director Various sub-committees of Board function
Slide 33: A well experienced and strong Board
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern A well experienced and strong Board Shri. S. Mahalingam | B.Com (Honours), FCA Dr N. Kamakodi | B.Tech., MBA., PhD., CAIIB Non Executive Chairman M.D. & C.E.O
Slide 34: City Union Bank Ltd. Investor Contact
CITY UNION BANK LTD. INVESTOR CONTACT Regd. Office : 149, TSR Big Street, Kumbakonam – 612001, Tamilandu. Name : K. Jayaraman, DGM Admin Office : "Narayana" No.24 B, Gandhi Nagar, Kumbakonam - 612001,Tamil Nadu. Mob : +91 9344303740 Tel : 0435-2402322, 2401622, | FAX: 0435-2431746 | www.cityunionban