Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q2 FY2016 Earnings Presentation
35 slides from Union Bank Of India's earnings presentation, Nov 6, 2015
Slide 1: Financial Results Q2 & H1 FY 2015-16
Financial Results Q2 & H1 FY 2015-16 November 06, 2015
Slide 2: Highest Gainer in Brand Value
Highest Gainer in Brand Value Brand value rises 72% on accelerated digitalization efforts. 2
Slide 3: Structural Transformation Initiative
Structural Transformation Initiative 3
Slide 4: Performance Highlights
Performance Highlights • Global Business increased by 7.4% to ` 584687 crore Business • Savings Deposits grew by 8.9%; Share of High cost deposits declined to 2.2%. • Non Interest Income for Q2/FY16 up by 18% y/y and 23% q/q Non Interest Income over Q1FY16. • Net Profit for Q2/FY16 at ` 658 crore, u
Slide 5: Quarterly Trends
Quarterly Trends ROA (%) ROE (%; Annualized) 0.68 12.8 0.55 11.0 9.7 0.47 0.42 8.3 0.34 6.6 Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Cost to Income Ratio (%) CET 1 Ratio (%) 7.42 53.94 7.24 7.20 51.13 51.32 49.38 7.02 48.92 7.01 Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Sep/14
Slide 6: Business Performance
gloreraa aw (4) Union Bank 311 sis of India 3TES AMT, 3reet yp Good people to bank with Business Performance
Slide 7: Deposits
Deposits Parameters Sep Mar Jun Sep Growth (%) (` crore) 2014 2015 2015 2015 Y-o-Y Q-o-Q Total Deposits 300165 316870 327264 330665 10.2 1.0 Current Deposits 18789 21092 21358 21046 12.0 -1.5 Savings Deposits 67400 71558 71254 73367 8.9 3.0 CASA 86189 92650 92612 94413 9.5 1.9 • The Bank activated 7
Slide 8: Advances
Advances Parameters Sep Mar Jun Sep Growth (%) (` crore) 2014 2015 2015 2015 Y-o-Y Q-o-Q Gross Advances 244411 262757 255553 254022 3.9 -0.6 - Domestic 226011 241323 232072 229339 1.5 -1.2 - Overseas 18400 21434 23481 24683 34.2 5.1 Retail Advances 28491 31658 32712 33621 18.0 2.8 Agriculture 28740
Slide 9: Advances
Advances RAM Share (%) in Domestic Advances Annual Growth (%) 51.2 30.3 Advances RAM Segment 26.6 49.7 24.0 48.9 16.6 12.1 47.1 10.3 10.2 8.9 6.7 3.9 Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Sep/14 Mar/15 Jun/15 Sep/15 Sep-14 Sep-15 7.6 6.0 Home Loans 15.5 17.8 Vehicle Loans 8.5 8.0 Education Loans 59.9 6
Slide 10: Advances – Top Exposures
Advances – Top Exposures Sl. Sectors Top 10 Sectors (Domestic ) Top 10 Sectors % Share in Advances (Domestic ) (30th Sep 2015) Sep Mar Jun % Share Amount 2014 2015 2015 ( ` crore) 1 Infrastructure 17.1 15.9 16.7 16.5 37815 2 Agriculture 12.7 13.1 15.6 15.8 36158 3 Retail Advances 12.6 13.1 14.1 14.7
Slide 11: Investments
Investments Investments (` crore) 104898 94497 83318 Sep/14 Mar/15 Sep/15 Sep 2015 % to Total Duration Sep 2015 Held to Maturity 68785 65.6 4.2 Held for Trading 1256 1.2 6.9 Available for Sale 34858 33.2 4.6 Total Investment 104898 100 4.3 • 85.7% of AFS & HFT portfolio is interest sensitive 11
Slide 12: Overseas Operations
Overseas Operations Overseas branches at Business from Overseas Branches Hong Kong, DIFC (Dubai) & Growth Sep-14 Jun-15 Sep-15* Antwerp (Belgium) US $ (%) YoY- (` crore) US$ Business 3.8 4.5 4.7 23.2 billion billion billion Representative offices at (23204) (28719) (30382) Shanghai, Beijing, Abu Dha
Slide 13: Statement of Assets & Liabilities
Statement of Assets & Liabilities (` crore) As at As at As at Growth (%) 30.09.14 30.06.15 30.09.15 Y-o-Y Q-o-Q LIABILITIES Capital 636 636 687 8.0 8.0 Reserves and surplus 18860 19636 21316 13.0 8.6 Deposits 300165 327264 330665 10.2 1.0 Borrowings 32636 33022 32493 -0.4 -1.6 Other Liabilities and
Slide 14: Financial Highlights
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Slide 15: Cost & Yield Ratio
Cost & Yield Ratio Parameters Sep-14 Jun-15 Sep-15 H1 H1 (Q2) (Q1) (Q2) FY 15 FY16 Domestic Global Domestic Global Domestic Global Domestic Global Domestic Global Cost of Deposit 7.44 7.37 7.30 7.20 7.19 7.09 7.39 7.31 7.25 7.15 Cost of Funds 6.89 6.70 6.71 6.46 6.53 6.25 6.88 6.68 6.62 6.36 Yield o
Slide 16: Non-Interest Income
Non-Interest Income (` crore) Parameters Sep-14 Jun-15 Sep-15 Growth Growth H1 H1 Growth (Q2) (Q1) (Q2) (%)- (%)- FY 15 FY 16 (%) Y/Y Q/Q a. Core Non 448 422 469 4.8 11.3 787 891 13.2 Interest Income b. Treasury Income 271 321 435 60.6 35.6 521 756 45.1 W/w •Profit on Sale 75 195 259 245.4 33.0 174
Slide 17: Operating Profit
Operating Profit (` crore) Sep-14 Jun-15 Sep-15 Growth Growth H1 H1 Growth (Q2) (Q1) (Q2) (%)-Y/Y (%)-Q/Q FY15 FY16 (%)-Y/Y Parameters Interest Income 7943 8260 8141 2.5 -1.4 15799 16401 3.8 Interest 5858 6130 6039 3.1 -1.5 11597 12169 4.9 Expenditure Net Interest 2085 2130 2102 0.8 -1.3 4202 4232 0
Slide 18: Provisions
Provisions (` crore) Parameters Sep-14 Jun-15 Sep-15 H1 H1 (Q2) (Q1) (Q2) FY15 FY16 NPAs 603 480 924 1029 1404 Standard Assets 45 -22 2 72 -20 Depreciation on Investment 79 199 -113 -58 86 Shifting Loss 0 6 0 39 6 Restructured Advances 98 7 -320 104 -312 Others (FITL etc) -39 -28 -61 -8 -88 Taxation
Slide 19: Net Profit
Net Profit ` crore Quarter Half Year 658 1100 519 1177 443 371 1036 1036 Sep/14 Mar/15 Jun/15 Sep/15 H1 FY15 H1 FY16 77% Y/Y 14% Y/Y 19
Slide 20: Efficiency/ Profitability Ratios
Efficiency/ Profitability Ratios Sl. Efficiency Parameters Sep-14 Jun-15 Sep-15 H1 H1 (Q2) (Q1) (Q2) FY 15 FY 16 1 Return on Avg. Assets (%) 0.42 0.55 0.68 0.60 0.61 2 Return on Equity (%) 8.25 11.02 12.80 11.50 11.44 3 Cost to Income Ratio (%) 53.94 48.92 51.32 52.56 50.15 4 Book Value Per Share (`
Slide 21: Asset Quality
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Slide 22: Asset Quality
Asset Quality (` crore) Parameters Sep-14 Jun-15 Sep-15 H1 H1 (Q2) (Q1) (Q2) FY 15 FY 16 Gross NPAs - Opening 10232 13031 14144 9564 13031 Add : Additions 1968 1508 1931 3242 3439 Less : Reductions 738 395 534 1344 929 1. Recoveries 412 160 205 629 365 2. Upgradation 146 78 59 247 137 3. Write Off 1
Slide 23: Asset Quality: Sectoral
Asset Quality: Sectoral (` crore) Sectors Slippages NPAs % to Total % to Sector Loan During Q2 Sep 2015 NPAs Sept Mar Jun Sep FY 16 2014 2015 2015 2015 Agriculture 161 1718 11.05 5.73 5.08 4.62 4.75 Micro & 321 2276 17.86 5.26 6.09 6.67 6.90 Small (MSE) Retail Loans 284 929 5.98 2.10 1.96 2.52 2.76
Slide 24: Restructured Assets
Restructured Assets (` crore) Sep-15 (Q2) Particulars Standard NPA Total Restructured Assets as on July 01,2015 14125 5002 19128 Fresh Restructuring during the Quarter 405 38 443 Upgradation to Standard Restructured Accounts during 273 -273 0 the Quarter Down gradation of restructured accounts durin
Slide 25: Sector wise Standard Restructured Accounts
Sector wise Standard Restructured Accounts (` crore) Sector Amt. % to Standard Restructured 1 Infrastructure 9118 65.5 a. Power 7396 53.2 w/w SEBs 5745 41.3 2 Engineering 901 6.5 3 Iron & Steel 879 6.3 4 Textiles 492 3.5 5 Hotel 379 2.7 Amt % to Standard % to Gross Restructured Advances Loans Outsta
Slide 26: Human Capital
Human Capital 36440 35514 36377 36152 5599 5493 5412 5386 (15.4%) (15.5%) (14.9%) (14.9%) 12004 11731 11713 11779 (32.9%) (33.0%) (32.2%) (32.6%) Sub-Staff Clerks Officers 18837 18290 19252 18987 (51.7%) (51.5%) (52.9%) (52.5%) Sep/14 Mar/15 Jun/15 Sep/15 Average Age (years) of Employees 43 42 40 40
Slide 27: Extensive & specialized distribution network
Extensive & specialized distribution network focused on the needs of the different business segments Branch Distribution by Urbanization Rural Metro 31.3% 18.2% Jammu & Kashmir Urban Chandigarh Semi (12) (19) 21.0% (10) (23) Arunachal Pradesh Urban Himachal Pradesh Meghalaya (1) (1) 29.5% Punjab (5)
Slide 28: Multiple Delivery Channels
Multiple Delivery Channels Internet Banking User (Lakh) 12.0 219 Mobile Banking User (Thousands) 11.5 11.1 10.3 167 9.6 137 8.3 106 87 55 Mar/13 Mar/14 Sep/14 Mar/15 Jun/15 Sep/15 Mar/13 Mar/14 Sep/14 Mar/15 Jun/15 Sep/15 Transactions through Alternative Channels (%) 62.8% ATMs 12.2 Internet Banking
Slide 29: Basel III: Capital & Liquidity
Basel III: Capital & Liquidity 10.30 10.22 10.14 10.26 7.67 Liquidity Coverage Ratio (LCR) 7.31 7.50 7.46 LCR for the period ended CRAR September 2015 at 141.09% Tier I compared to regulatory minimum Tier II requirement of 60% 2.99 2.72 2.68 2.59 Sep/14 Mar/15 Jun/15 Sep/15 (` crore) Sep 2014 Mar
Slide 30: Shareholding Details
Shareholding Details • Share Capital ` 687.4 crore •No. of Equity Shares: 68.74 crore • Net worth: ` 20574 crore • Book Value per share ` 299.30 •Return on Equity 12.80 % •Market Cap ` 12044 crore 63.44% Shareholding Pattern (%) 60.47% Mar/15 Jun/15 60.47% 17.95% 8.89% 9.72% 19.42% 12.25% Sep/15 7.8
Slide 31: 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 September 30, 2015 55.2 Lakh Deposits ` 584.1 Crore RuPay Cards issued 53.0 Lakh Aadhar Seeding 15.1 Lakh
Slide 32: Digital Initiatives
Digital Initiatives Digital Launch during Business Debit Usecure Credit Signature Quarter Card Card Credit Card 32
Slide 33: Awards During the Quarter
Awards During the Quarter 2nd Prize under prestigious Rajbhasa Kirti Puraskar Yojana 2014-15 ACI Innovation Award for Implementation of UIDAI Aadhaar Enabled Payment System (AEPS) Transactions on ATMs Ranked first for Maximum Coverage of Sub Service Areas 33
Slide 34: 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 35: Investor queries: investor.relations@unionbankofindia.com
Investor queries: investor.relations@unionbankofindia.com
Union Bank of India — Q2 FY2016 Earnings Presentation on 6ix