City Union Bank Limited · NSE:CUB
City Union Bank — Investor Presentation (September 2014)
42 slides from City Union Bank's investor presentation, September 2014
Slide 1: Investor Presentation – September 2014
INVESTOR PRESENTATION – SEPTEMBER 2014 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 … 04 – 07 2. Performance Highlights … 08 - 09 3. Branch Network … 10 - 11 4. Ownership Pattern … 12 - 14 5. Management … 15 – 18 6. Financial Performance & Business Profile … 19 - 41 3
Slide 4: 1. Overview
1. Overview 4
Slide 5: A specialized banking model aligned to Target Segment – SME / MSME
City Union Bank – A specilized banking model aligned to Target Segment – SME / MSME SME/MSME specialized business model focusing on large untapped SME/ MSME Segment consistently delivering higher yields focus Superior client servicing leading to client retention and low business acquisition costs SM
Slide 6: Key milestones
Key milestones 2012 2007 Rights Issue @ 1 : 4 – to reward Preferential allotment for equity the existing shareholders and shares strengthening bank’s employees under “Employee capital funds Reservation Scheme” 1998 Initial Public Offering (IPO); Listing Bank’s shares on the 2014 BSE, NSE & MSE Raise
Slide 7: Important milestone in our history
Important milestone in our history…… Proudly announce completion of 110 years of purposeful banking 7
Slide 8: 2. Q2 FY 2015 – Performance Highlights
2. Q2 FY 2015 – PEFORMANCE HIGHLIGHTS 8
Slide 9: Q2 / H1 FY 2015 Performance – A snapshot
Q2 / H1 FY 2015 Performance – A snapshot Deposits increased by 10% from Rs.211 Bn to Rs.232 Bn Y-o-Y Advances registered a growth of 7% from Rs.158 Bn to Rs.169 Bn Y-o-Y Gross Profit registered a growth of 23% from Rs.1408 Mn to Rs.1729 Mn on Q2-Vs-Q2 basis and 14% from Rs.3024 Mn to Rs.3455 Mn H1-V
Slide 10: 3. Branch Network
CUB 3. Branch Network
Slide 11: Strong presence in the South
Strong presence in the South A network of 430 branches of which 383 branches are located in South India and 295 in Tamil Nadu alone State No. of % of % of % of Branches Deposits Advances Business Tamilnadu 295 77 69 73 Telengana 18 3 5 4 3 1 Seemandhra 33 2 8 5 1 Karnataka 24 6 5 5 6 Maharashtra 17
Slide 12: 4. Ownership Pattern
CUB 4. Ownership Pattern
Slide 13: A well diversified investor base
A well diversified investor base Ownership profile Corp. Bodies, 10.15% Public, 43.55% Others, 0.11% Domestic Institutions, 10.64% FII's, 33.03% NRI's, 2.04% Well diversified ownership of shareholders around 84000 Long term investors ensuring stability and support to management Higher Participation
Slide 14: A well diversified investor base
A well diversified investor base Major Institutional Shareholders as on 30th September 2014 Shareholders % of holding Lavender Investments Ltd 3.97 GKFF Ventures 3.95 LIC of India 3.64 Equinox Partners L P 2.78 Wasatch Core Growth Fund 1.84 Acacia Partners 1.82 Amansa Capital Pte Ltd 1.81 NT Asian D
Slide 15: 5. Management
CUB 5. Management
Slide 16: Transparent 'Corporate Governance' practices
Transparent ‘Corporate Governance’ practices Board consists of 7 Independent Directors and 3 Non-Independent Directors Various sub-committees of Board functions to oversee the operations of the Bank Code of conduct for directors and senior management put in place Disclosure norms strictly adhered to
Slide 17: A well experienced and strong Board (1/2)
A well experienced and strong Board (1/2) Name Profile He holds a Master degree in Mathematics, CAIIB and PGDFM and has 40 years of experience in Mr. S. Balasubramanian, the banking industry. He joined City Union Bank in 1971 as a probationary officer and was Chairman associated with the Bank in var
Slide 18: A well experienced and strong Board (2/2)
A well experienced and strong Board (2/2) Name Profile He retired as Chief General Manager, Dept of Banking Operations & Development Reserve Bank of Mr. C.R. Muralidharan, India. He has extensive experience in regulatory Banking. He was also a whole time member of Director Insurance Regulatory and D
Slide 19: 6. Financial Performance and Business Profile
6. Financial Performance and Business Profile 19
Slide 20: H1 FY 2014-15 Performance – A snapshot
H1 FY 2014-15 Performance – A snapshot Deposits Advances HIGHLIGHTS FOR THE HALF YEAR ENDED 30th SEPTEMBER 2014 Deposits increased by 10% to Rs.232 Bn from Rs.211 Bn 10% 7% Advances increased by 7% from Rs.158 Bn to Rs.169 Bn Total Business grew by 9% from Rs.369 Bn to Rs.401 Bn CASA CASA improved b
Slide 21: FY 2013-14 Performance – A snapshot
FY 2013-14 Performance – A snapshot Deposits Advances HIGHLIGHTS FOR THE YEAR ENDED 31st MARCH 2014 Deposits increased by 8% to Rs.220 Bn from Rs.203 Bn 8% 6% Advances increased by 6% from Rs.153 Bn to Rs.162 Bn Total Business grew by 7% from Rs.356 Bn to Rs.382 Bn CASA CASA improved by 15% to Rs.39
Slide 22: H1 FY 15 Vs H1 FY 14 – Performance – A snapshot
H1 FY 15 Vs H1 FY 14 – Performance – A snapshot Financial Performance (in INR Mn) Particulars H1 FY H1 FY Inc / % FY Growth 2015 2014 (Dec) Growth 2014 Deposits 231517 210562 20955 10% 220169 Advances 169084 158485 10599 7% 162236 Total Business 400601 369047 31554 9% 382405 Demand Deposits 16467 13
Slide 23: H1 FY 15 Vs H1 FY 14 – Performance – A snapshot
H1 FY 15 Vs H1 FY 14 – Performance – A snapshot Financial Performance (in INR Mn) H1 FY H1 FY INC / % FY Particulars 2015 2014 (DEC) GROWTH 2013-14 Net Interest Income 3929 3772 157 4% 7594 Other Income 2009 1357 652 48% 2799 Operating Expenses 2483 2105 378 18% 4583 Gross Profit 3455 3024 431 14% 5
Slide 24: Q2 FY 15 Vs Q2 FY 14 – Performance – A snapshot
Q2 FY 15 Vs Q2 FY 14 – Performance – A snapshot Financial Performance (in INR Mn) Q2 FY Q2 FY INC / % FY Particulars 2015 2014 (DEC) GROWTH 2013-14 Net Interest Income 2062 1898 164 9% 7594 Other Income 902 568 334 59% 2799 Operating Expenses 1235 1058 177 17% 4583 Gross Profit 1729 1408 321 23% 581
Slide 25: H1 FY 15 Vs H1 FY 14 – Income and Expenses – Breakup
H1 FY 15 Vs H1 FY 14 – Income and Expenses – Breakup (in INR Mn) Interest Income Breakup Interest Expenses Breakup H1 FY H1 FY Growth H1 FY H1 FY Growth Particulars Particulars 2015 2014 (%) 2015 2014 (%) Interest on Loans 10680 10398 3% Int Exp on Deposits 9207 8614 7% Interest on Investments 2506
Slide 26: Q2 FY 15 Vs Q2 FY 14 – Income and Expenses – Breakup
Q2 FY 15 Vs Q2 FY 14 – Income and Expenses – Breakup (in INR Mn) Interest Income Breakup Interest Expenses Breakup Q2 FY Q2 FY Growth Q2 FY Q2 FY Growth Particulars Particulars 2015 2014 (%) 2015 2014 (%) Interest on Loans 5469 5221 5% Int Exp on Deposits 4701 4366 8% Interest on Investments 1317 11
Slide 27: FY 13-14 Vs FY 12-13 – Income and Expenses – Breakup
FY 13-14 Vs FY 12-13 – Income and Expenses – Breakup (in INR Mn) Interest Income Breakup Interest Expenses Breakup FY FY Growth FY FY Growth Particulars Particulars 13-14 12-13 (%) 13-14 12-13 (%) Interest on Loans 20921 18122 15% Int Exp on Deposits 17340 15045 15% Interest on Investments 4380 3723
Slide 28: Key Business Indicators
Key Business Indicators Key indicators Particulars H1 H1 Q2 Q2 FY FY 2015 FY 2014 FY 2015 FY 2014 2013-14 Cost of Deposits 8.24% 8.44% 8.22% 8.44% 8.37% Yield on Advances 13.28% 13.56% 13.57% 13.64% 13.43% Yield on Investments 7.45% 7.30% 7.40% 7.25% 7.33% Net Interest Margin 3.43% 3.53% 3.54% 3.51%
Slide 29: Strong Deposits and Advances growth
Strong Deposits and Advances growth Deposits Advances 169084 231517 162236 220169 153429 203048 122217 163408 129143 93290 31-Mar-11 31-Mar-12 31-Mar-13 31-Mar-14 30-Sep-14 31-Mar-11 31-Mar-12 31-Mar-13 31-Mar-14 30-Sep-14 Business CASA 42812 400601 39173 382405 356476 34046 29716 285625 25283 22243
Slide 30: Income Growth over the years
Income Growth over the years … Net Interest Income Growth Other Income Growth 7594 2799 2736 6240 2071 2009 4998 4200 1574 3929 31-Mar-11 31-Mar-12 31-Mar-13 31-Mar-14 30-Sep-14 31-Mar-11 31-Mar-12 31-Mar-13 31-Mar-14 30-Sep-14 CEB Growth Net Profit Growth 1727 1743 3471 3220 2803 1289 2151 992 1005
Slide 31: Cost of deposits & Yield on advances
Cost of deposits & Yield on advances Cost of Deposits and Yield on Advances 13.49 13.43 13.28 13.46 13.56 12.82 13.04 12.47 11.32 11.00 10.85 8.37 7.98 8.11 7.73 8.44 7.23 8.24 6.94 6.08 5.95 5.75 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sep-14 Spread between cost of deposits and yield on a
Slide 32: Key Business Ratios - Yearwise
Key Business Ratios - Yearwise Net Interest Margin Return on Assets 3 .6 4 % 3 .3 5% 3 .4 3 % 3 .15% 3 .50 % 3 .4 0 % 1.71% 1.6 7% 1. 58 % 1.52 % 1.50 % 1.4 4 % 3 1- M ar - 10 3 1- M ar - 11 3 1- M ar - 12 3 1- M ar - 13 3 1- M ar - 14 3 0 - Sep - 14 3 1- M ar - 10 3 1- M ar - 11 3 1- M ar - 12 3 1-
Slide 33: Efficiency
Efficiency (Rs in Mn) Business per Employee Profit per Employee 93.8 0.87 90.6 90.5 84.7 78.1 0.85 0.84 0.82 0.80 31-Mar-11 31-Mar-12 31-Mar-13 31-Mar-14 30-Sep-14 31-Mar-11 31-Mar-12 31-Mar-13 31-Mar-14 30-Sep-14 33
Slide 34: Loan Book – Products Composition
Loan Book – Products Composition Amount % to Total Working capital loans yielding higher interest Loan Book Products Composition (INR Mn) Advances constitute 65% of advances Cash Credit & Demand Loans 110612 65% Re-pricing possible at short intervals thus Term Loans 55510 33% reducing interest rate
Slide 35: Loan book – Composition
Loan book – Composition Sectoral Deployment as on 30th September 2014 Secured & Unsecured Advances Amount % to Total Amount % to Total Particulars Particulars (INR Mn) Advances (INR Mn) Advances Agriculture (includes AJL – 21426 Mn) 30291 18% Secured Loans 166234 98% MSME 52448 31% Unsecured Loans 2
Slide 36: Loan Book – Sectoral Deployment
Loan Book – Sectoral Deployment Sectoral Deployment chart NBFC Others 1% 5% INFRA LAD 1% 2% Personal Loan 2% AGRI Housing 18% 6% JL Non Agri 4% CRE 5% Whlsale Trade 12% MSME 31% Retail Trade 6% Large Ind 7% 36
Slide 37: Loan Book – Advances to Major Industries
Loan Book – Advances to Major Industries Advances to Major Industries as on 30th September 2014 Amount % to Total Industry Name (in INR Mn) Advances Textiles a) Cotton 9513 5% b) Other Textiles 3636 2% Metals a) Iron & Steel 8008 5% b) Other Metals 2461 1% Paper & Paper Products 4151 2% Food Process
Slide 38: Asset Quality
Asset Quality (Rs in Mn) Gross NPA Qtm & Gross NPA % Net NPA Qtm & Net NPA % 2187 3379 1973 2931 1731 964 1.30% 1.81% 2.00% 1.23% 1235 1125 484 540 1.13% 1.21% 0.63% 1.01% 0.52% ` 0.44% 31-Mar-11 31-Mar-12 31-Mar-13 31-Mar-14 30-Sep-14 31-Mar-11 31-Mar-12 31-Mar-13 31-Mar-14 30-Sep-14 38
Slide 39: Asset Quality Position – Movement over the years
Asset Quality Position – Movement over the years FY FY FY FY Q2 FY H1 FY (Rs in Mn) Mar-11 Mar-12 Mar-13 Mar-14 2015 2015 NPA Opening balance 882 1125 1235 1731 3083 2931 Additions A 1207 1444 2234 4562 834 2510 Recovery / SR 376 649 486 1865 152 1296 Upgradations 114 165 232 168 68 82 Net Addition
Slide 40: Restructured Accounts
Restructured Accounts No additions to Restructured Accounts in Q2 FY 2015 Balance outstanding as on 30.09.2014 in respect of Restructured Standard borrowers: Type Restructuring No. of Amount Borrowers (in INR Mn) Under CDR Mechanism 2 727 Under SME Debt Restructuring Mechanism 7 133 Under Other Debt
Slide 41: Investments – At a Glance
Investments – At a Glance Investments Breakup and Categorywise (in INR Mn) Particulars SEP 2014 SEP 2013 SLR Securities 61217 52965 Non-SLR Securities 7805 6894 Total Investments 69022 59859 Yield on Investments 7.45% 7.30% Investments Breakup: -AFS 13583 (20%) 3806 (6%) -HTM 55330 (80%) 56052 (94%)
Slide 42: Thank You
Thank You 42
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