Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q3 FY18 Earnings Presentation
39 slides from Union Bank Of India's earnings presentation, Feb 3, 2018
Slide 1: Financial Results Q3/FY18 & 9M/FY18
Financial Results Q3/FY18 & 9M/FY18 Please follow us on: February 03, 2018 @unionbankofficial @UnionBank Tweets UnionBankInsta UnionBankofIndiaUtube UnionBankofIndia
Slide 2: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 Structural Transformation #4 Awards & Accolades 2
Slide 3: Snapshot as on December 31, 2017
Snapshot as on December 31, 2017 Total Business ` 712993 crore Gross Advances ` 314474 crore Total Deposits ` 398518 crore Operating Profit(Q3/FY18) ` 1654 crore Net NPA Ratio 6.96% Basel III Tier I CAR 8.65% Basel III Total CAR 11.37% Branches 4302 ATMs 7690 *Additional Micro-ATM stands at 5407 3
Slide 4: Strong Liability Franchise
Strong Liability Franchise Total Deposits CASA Portfolio (` crore) 4.3 % YOY 398518 139708 130308 129588 135537 386025 7456 379807 378391 6994 110116 4385 104072 107522 108575 6616 391062 375422 379031 371775 29592 26236 22066 26962 Dec-16 Mar-17 Sep-17 Dec-17 Dec-16 Mar-17 Sep-17 Dec-17 Domestic de
Slide 5: Diversified Loan Portfolio
Diversified Loan Portfolio Gross Advances (` crore) 13.5 % YOY 309953 314474 301684 277012 272238 277015 281028 249741 27271 29446 32938 33446 Dec-16 Mar-17 Sep-17 Dec-17 Domestic Advances Overseas advances Gross advances Retail Agriculture MSME 9.7% YOY 26.2% YOY 8.6% YOY 44124 44232 62648 42909 61
Slide 6: Diversified Loan Portfolio
Diversified Loan Portfolio RAM* share (%) in Domestic advances 54.8 53.8 54.1 54.5 Dec-16 Mar-17 Sep-17 Dec-17 Composition of Advances Retail Agriculture MSME 19.2 Home 3.0 Vehicle 41.3 31.3 Industry Education 9.1 53.3 58.7 Services LAP 68.7 Personal Others 7.0 8.4 SMF Other Agri *Retail, Agricultur
Slide 7: Diversified Loan Portfolio: Top Sectors
Diversified Loan Portfolio Top 10 Sectors S No. Sectors (% Share in Domestic Advance) Dec Mar Sep Dec-17 2016 2017 2017 ` Crore % Share 1 Infrastructure* 16.3 17.5 17.4 48398 17.2 2 Retail Advances 15.6 14.6 16.2 46305 16.4 3 Agriculture 15.6 16.2 15.5 44232 15.7 4 Trade 12.7 12.6 13.0 34320 12.2 5
Slide 8: Investments
Investments Investment (` Crore) 135806 129343 124436 113332 Dec-16 Mar-17 Sep-17 Dec-17 (` crore) Dec Duration Investment Composition (%) 2017 (Years) 33% Held to Maturity 82830 4.2 Held to Maturity 67% Held for Trading Held for Trading 53 8.6 0% Available for Sale Available for 41552 4.7 Sale Tota
Slide 9: Overseas Operations
Overseas Operations Business from Overseas Operations Growth (%) US $ in billion Dec Mar Dec (` crore) 2016# 2017 2017* Y-o-Y Y-o-Y (US$) (INR) 4.6 5.6 6.4 Total Business (40902) 39.1 29.2 (31656) (36062) 0.6 1.0 1.2 Total Deposits (4385) (7456) 100.0 70.0 (6616) 4.0 4.6 5.2 Total Advances (27271) (
Slide 10: Statement of Assets & Liabilities
Statement of Assets & Liabilities (` crore) As at As at As at As at Growth (%) 31.12.16 31.03.17 30.09.17 31.12.17 Y-o-Y Q-o-Q LIABILITIES Capital 687 687 726 856 24.6 17.9 Share Application Money 0 541 0 0 - - Reserves and surplus 22890 22748 21882 22331 -2.4 2.1 Deposits 379807 378391 386025 39851
Slide 11: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 Structural Transformation #4 Awards & Accolades 11
Slide 12: Cost & Yield Ratio
Cost & Yield Ratio Parameters Dec-16 (Q3) Mar-17 (Q4) Dec-17 (Q3) Dec-16 (9M) Dec-17(9M) Domestic Global Domestic Global Domestic Global Domestic Global Domestic Global Cost of Deposit 6.35 6.28 5.98 5.91 5.68 5.61 6.49 6.42 5.80 5.72 Cost of Funds 5.52 5.34 5.41 5.24 4.91 4.61 5.78 5.57 5.14 4.84 Y
Slide 13: Movement of NIM & NII
Movement of NIM & NII (` crore) 2.5 2.40 2.7 2.4 2.34 2.6 2548 2.3 2.19 2.2 2.5 2387 2.1 2.04 2321 2.4 2 2.27 1.9 2.23 2.3 2136 1.8 2.2 1.7 2.08 2.01 2.1 1.6 1.5 2 Dec-16 Mar-17 Sep-17 Dec-17 Dec-16 Mar-17 Sep-17 Dec-17 Net Interest Income NIM Global NIM Domestic 2.27 7112 2.23 2.19 2.13 6516 9M FY
Slide 14: Non Interest Income
Non Interest Income Growth Growth Dec-16 Mar-17 Sep-17 Dec-17 9M 9M Growth Parameters (%) (%) (Q3) (Q4) (Q2) (Q3) FY17 FY18 (%) YOY QOQ a. Core Non Interest Income 472 641 549 597 26.43 8.73 1427 1752 22.78 b. Treasury Income 822 728 613 155 -81.10 -74.66 1968 1557 -20.86 W/w Profit on Sale of 694
Slide 15: Operating Profit
Operating Profit (` crore) 6.68% YOY 2134 5650 1939 1851 1654 5296 Dec-16 Mar-17 Sep-17 Dec-17 9M/FY17 9M/FY18 15
Slide 16: Provisions
Provisions (` crore) Dec-16 Mar-17 Sep-17 Dec-17 9M 9M Parameters (Q3) (Q4) (Q2) (Q3) FY 2017 FY 2018 NPAs 1582 1505 3465 2521 4527 7861 W/w additional Provision on accounts - - 1566 - - 1566 referred to NCLT(as per RBI list 1) W/w additional Provision on accounts - - - 991 - 991 referred to NCLT(as
Slide 17: Provisions
Provisions 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 11 18 29 IBC (as per RBI list) Loan Outstanding as of Dec 31, 2017 7658 4808 12466 Total Provisions held upto Dec 31, 2017 4145 2678* 6823
Slide 18: Net Profit
Net Profit (` crore) 447 109 104 Dec-16 Mar-17 Sep-17 Dec-17 9M/FY17 9M/FY18 -1250 -2664 -1531 18
Slide 19: Efficiency/Profitability Ratios
Efficiency/Profitability Ratios Return on Avg. Assets (%) Cost to Income(%) 46.75 51.64 0.14 44.32 45.17 47.23 46.78 0.09 0.10 -0.74 -1.01 -1.27 S. Efficiency Dec-16 Mar-17 Sep-17 Dec-17 9M 9M No. Parameters (Q3) (Q4) (Q2) (Q3) FY 2017 FY 2018 1 Return on Equity (%) 2.17 2.27 -35.81 -28.08 3.05 -19.
Slide 20: Efficiency Ratios
Efficiency Ratios Dec-16 Mar-17 Sep-17 Dec-17 9M 9M Sn. Profitability Parameters (Q3) (Q4) (Q2) (Q3) FY 17 FY 18 Business per 1 ` crore 155 158.8 162.0 165.9 155.02 165.9 Branch Business per 2 ` crore 17.6 18.4 18.1 18.8 17.6 18.8 employee Gross Profit per 3 ` crore 1.7 2.0 1.8 1.5 1.7 1.8 Branch Gr
Slide 21: Asset Quality: Movement in Non Performing Assets
Asset Quality: Movement in Non Performing Assets (` crore) Dec-16 Mar-17 Sep-17 Dec-17 9M 9M Parameters (Q3) (Q4) (Q2) (Q3) FY 17 FY 18 Gross NPAs - Opening 29862 32403 37286 38286 24171 33712 Add : Additions 3294 2951 2686 4187 10293 11326 Less : Reductions 753 1642 1686 1485 2061 4050 1. Recoverie
Slide 22: Asset Quality: Sectoral
Asset Quality: Sectoral (` crore) Slippages Sectoral NPA % NPAs Dec % to Bank’s Sectors During Q3 2017 GNPAs FY 18 Dec-16 Mar-17 Sep-17 Dec-17 Retail Loans 114 1080 2.63 2.99 3.12 2.53 2.33 Agriculture 247 2676 6.53 5.61 5.10 6.74 6.06 Micro & Small (MSE) 373 5270 12.86 9.25 8.92 10.71 11.02 Medium
Slide 23: Asset Quality: Sectoral
Asset Quality: Sectoral Standard as on Sept 2017 Standard as on Dec 2017 Scheme Amount(Rs. in Amount(Rs. in Account Account crore) crore) 5:25 13 3439 11 2795 SDR 24 5095 18 2660 S4A 9 1724 12 1923 23
Slide 24: Asset Quality: Sectoral
Asset Quality: Sectoral (` crore) S.N. Sector Outstanding NPA Std. Restructured NPA + Std. Restructured (%) 1 Infrastructure 48398 6785 2736 19.7 a. Power 21459 1886 1510 15.8 b. Roads/Ports 13181 1827 1205 23.0 2 Textiles 7495 1830 110 25.9 3 Iron & Steel 10869 8382 10 77.2 Sectors 5:25 SDR S4A (St
Slide 25: Restructured Assets
Restructured Assets (` crore) Dec-17 (Q3) Particulars Standard NPA Total Restructured Assets as on September 30, 2017 5270 10262 15532 Fresh Restructuring during the Quarter 0 0 0 Upgradation to Standard Restructured Accounts during the Quarter 10 -10 0 Restructured Standard Advances which cease to
Slide 26: Basel III: Capital Adequacy
Basel III : Capital Adequacy Capital Adequacy Ratio 11.36 11.79 11.37 11.22 2.86 2.77 2.72 2.71 8.51 9.02 8.5 8.65 Dec-16 Mar-17 Sep-17 Dec-17 Tier I Tier II CRAR (` crore) Particulars Dec-16 Mar-17 Sep-17 Dec-17 Risk Weighted Assets 281877 291204 290259 290276 Capital Funds 32029 34334 32567 32996
Slide 27: Shareholding Pattern
Shareholding Pattern Dec-17 Public & others Share Capital ` 855.7 crore 9.12% No. of Equity Shares 85.57 crore DIIs 28.00% Net Worth ` 17807 crore Govt. of India 55.52% Market Cap ` 12434 crore FIIs 7.36% 27
Slide 28: Extensive & specialized distribution network
Extensive & specialized distribution network focused on the needs of the different business segments Branch Distribution by Urbanization METRO RURAL 21% 29% Jammu & Kashmir URBAN Chandigarh (13) (17) SEMI- (10) (24) Arunachal Pradesh 20% URBAN Meghalaya (1) (1) Punjab Himachal Pradesh (5) (5) 30% (1
Slide 29: Financial Inclusion
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 December 31, 2017 74.65 Lakh Deposits ` 1359.8 Crore RuPay Cards issued 48.12 Lakh Aadhar
Slide 30: Financial Inclusion
Financial Inclusion Total outstanding under Mudra loan = `502.03 crore Progress under Mudra Yojana (PMMY) (October to December 2017) Category No. of Sanctioned Amount Outstanding Amount Accounts (` crore) (` crore) Shishu (< ` 50k) 6929 28.03 18.75 Kishor (Above ` 50k-5 Lakh) 24010 466.16 370.82 Tar
Slide 31: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 Structural Transformation #4 Awards & Accolades 31
Slide 32: Structural Transformation
Structural Transformation 915 UX, 46 ULPs,21 SARALs (65% Retail + MSME 32
Slide 33: Structural Transformation
Structural Transformation Project Utkarsh implemented in 27 regions covering 65% of Retail & MSME Branches
Slide 34: Digital Banking
Digital Banking Expanding Digital banking base Transactions through Alternate Debit Card Spends Channels (In %) 500 2159 2500 450 2000 1636 400 1500 1169 350 1007 1000 73.1 300 71.2 332 342 500 67.9 250 289 309 63.9 200 0 Dec-16 Mar-17 Sep-17 Dec-17 Dec-16 Mar-17 Sep-17 Dec-17 No. of Cards (lacs) Va
Slide 35: Digital Banking
Digital Banking Other Initiatives • Introduced Biometric authentication of ATM transactions through fingerprint • Launched Union Virtual Assistant(UVA) FAQ Chatbot to cater questions asked by customers on social media & Bank‟s website 35
Slide 36: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 Structural Transformation #4 Awards & Accolades 36
Slide 37: Awards
Awards Information Technology • SKOCH Order of Merit Award- • Union Mobile NPA Recovery App • Customer Service Innovation Award • Best Customer Service Innovation Award for Union Customer Connect(OCRM) from Infosys 37
Slide 38: 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 39: Investor queries
Investor queries: investor.relations@unionbankofindia.com 39