Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q2 FY19 Earnings Presentation
41 slides from Union Bank Of India's earnings presentation, Oct 29, 2018
Slide 1: Financial Results Q2/FY19 & H1/FY19
Financial Results Q2/FY19 & H1/FY19 Please follow us on: October 29, 2018 @unionbankofindia @UnionBank Tweets UnionBankInsta UnionBankofIndiaUtube UnionBankofIndia
Slide 2: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 New Initiatives #4 Awards & Accolades 2
Slide 3: Snapshot as on September 30, 2018
Snapshot as on September 30, 2018 Total Business ` 717656 crore Global Business grew 3% Y-o-Y Gross Advances ` 318563 crore Total Deposits ` 399092 crore Cash Recovery Domestic for H1 FY19 Advances grew Operating Profit(H1 FY19) ` 3861 crore increased 203% 9% Y-o-Y Y-o-Y Basel III Tier I CAR 9.02 %
Slide 4: Business Performance - Liabilities
Business Performance - Liabilities Total Deposits (` crore) 3.4 % YOY 408502 405860 5305 399092 3738 386025 2207 6994 403197 402122 396885 379031 Sep-17 Mar-18 Jun-18 Sep-18 Domestic deposit Overseas deposit CASA Portfolio CASA & Avg CASA (%) 8.7 % YOY 34.1 140815 33.2 33.3 34.1 139241 138035 129588
Slide 5: Business Performance - Assets
Business Performance - Assets Gross Advances (` crore) 2.8 % YOY 313860 318615 318563 309953 9 % YOY 277015 288336 298826 302007 32938 25524 19789 16556 Sep-17 Mar-18 Jun-18 Sep-18 Domestic Advances Overseas advances Retail 14.6% YOY Agriculture 8% YOY MSME 6% YOY 51270 46340 65936 49446 49961 45825
Slide 6: Diversified Loan Portfolio - RAM
Diversified Loan Portfolio - RAM RAM share (%) in Domestic advances Retail Sep-18 54.2 22.9 2.8 Jun-18 53.3 50.2 9.5 Mar-18 55.0 6.7 8.0 Sep-17 54.1 Home Vehicle Education LAP Personal Others 6
Slide 7: Diversified Loan Portfolio - RAM
Diversified Loan Portfolio - RAM Composition of Agri loan book(%) 41 41 39 38 More than 60% of Agri. portfolio is 59 59 61 62 for Small & Marginal farmers Sep-17 Mar-18 Jun-18 Sep-18 Small & Marginal Other Agri Composition of MSME loan book(%) 24 24 24 24 75% of 45 44 43 42 MSME portfolio is 32 32
Slide 8: Diversified Loan Portfolio-Industry Exposure
Diversified Loan Portfolio-Industry Exposure Top Sector Exposure S No. Sectors (% Share in Domestic Advance) Mar Jun Sep-18 2018 2018 ` Crore % Share 1 Infrastructure 16.3 17.2 50478 16.7 2 Trade 12.2 12.3 38082 12.6 3 NBFCs and HFCs 11.6 11.6 35581 11.8 4 Basic Metal Products 4.5 4.2 13305 4.4 5 Co
Slide 9: Diversified Loan Portfolio-Rating Profile
Diversified Loan Portfolio-Rating Profile Rated Advances - Lending to higher rated borrowers… Exposure to NBFCs- Lending to higher-rated NBFCs… % of advances- Rating wise Rated O/s (%) 2.1 3.7 0.2 0.6 0.9 22.7 19.0 7.0 15.5 14.5 18.9 18.4 96.8 15.5 88.8 17.9 31.1 26.6 Mar-18 Sep-18 NBFC HFC AAA AA A
Slide 10: Investments
Investments Investment (` Crore) 129343 126524 132901 130063 21 23 25 26 79 77 75 74 Sep-17 Mar-18 Jun-18 Sep-18 SLR(%) Non-SLR(%) Duration Particulars Sept 2018 (Years) (` Crore) Jun-18 Sep-18 Held to Maturity 85694 4.6 4.5 Held for Trading 384 7.1 6.5 Available for Sale 43985 3.1 3.1 Total Investm
Slide 11: Overseas Operations
Overseas Operations Business from Overseas Operations Growth (%) US $ in billion Sep Jun Sep (` crore) 2017 2018 2018 Y-o-Y Y-o-Y (US$) (INR) 6.1 3.4 2.6 Total Business -57.4 -53.0 (39932) (23527) (18764) 1.1 0.5 0.3 Total Deposits -72.7 -68.4 (6994) (3738) (2207) 5.0 2.9 2.3 Total Advances -54 -49.
Slide 12: Statement of Assets & Liabilities
Statement of Assets & Liabilities (` crore) As at As at As at As at Growth (%) 30.09.17 31.03.18 30.06.18 30.09.18 Y-o-Y Q-o-Q LIABILITIES Capital 726 1169 1169 1169 61.0 0.0 Reserves and surplus 21882 23928 24091 24243 10.8 0.6 Deposits 386025 408501 405860 399092 3.4 -1.7 Borrowings 57922 45681 47
Slide 13: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 New Initiatives #4 Awards & Accolades 13
Slide 14: Cost & Yield Ratio
Cost & Yield Ratio Parameters Sep-17 (Q2) Jun-18 (Q1) Sep-18 (Q2) H1 FY 2018 H1 FY 2019 Domestic Global Domestic Global Domestic Global Domestic Global Domestic Global Cost of Deposit 5.80 5.71 5.53 5.50 5.54 5.52 5.85 5.77 5.54 5.51 Cost of Funds 5.19 4.89 4.90 4.81 4.98 4.87 5.26 4.96 4.94 4.84 Yi
Slide 15: Movement of NIM & NII
Movement of NIM & NII 2.34 (` crore) 2.19 2.18 2626 1.99 2494 2.26 2321 2.18 2193 2.08 1.9 Sep-17 Mar-18 Jun-18 Sep-18 Sep-17 Mar-18 Jun-18 Sep-18 Net Interest Income NIM Global NIM Domestic 5120 2.26 2.22 2.17 2.07 4564 H1 FY 2018 H1 FY 2019 H1 FY 2018 H1 FY 2019 NIM Domestic NIM Global Net Interes
Slide 16: Operating Revenues
Operating Revenues Growth Growth Sep-17 Mar-18 Jun-18 Sep-18 H1 H1 Growth Parameters (%) (%) (Q2) (Q4) (Q1) (Q2) FY18 FY19 (%) YoY QoQ Interest Income 8223 8112 8701 8539 3.84 -1.86 16376 17240 5.28 Interest Expense 5902 5919 6075 6045 2.42 -0.49 11812 12120 2.61 Net Interest Income 2321 2193 2626 2
Slide 17: Non Interest Income
Non Interest Income Growth Growth Sep-17 Mar-18 Jun-18 Sep-18 H1 H1 Growth Parameters (%) (%) (Q2) (Q4) (Q1) (Q2) FY18 FY19 (%) YOY QOQ a. Core Non Interest Income 549 1127 707 641 16.79 -9.32 1155 1349 16.76 b. Treasury Income 613 277 288 153 -75.10 -47.06 1402 441 -68.53 W/w Profit on Sale of 47
Slide 18: Operating Profit
Operating Profit (` crore) Operating Profit(Quarterly) 2089 1939 1890 1772 Sep-17 Mar-18 Jun-18 Sep-18 Operating Profit(Half-Yearly) 3996 3861 H1FY18 H1 FY19 18
Slide 19: Provisions
Provisions (` crore) Sep-17 Mar-18 Jun-18 Sep-18 Parameters H1 FY18 H1 FY19 (Q2) (Q4) (Q1) (Q2) NPAs 3465 5639 1803 1710 5340 3513 Standard Assets -20 -737 24 21 -81 45 Depreciation on Investment 166 1120 27 146 -260 173 Shifting Loss 0 0 411 0 367 411 Restructured Advances -8 -183 -25 -229 -51 -254
Slide 20: Net Profit
Net Profit (` crore) Net profit(Quarterly) 139 130 Sep-17 Mar-18 Jun-18 Sep-18 -1531 -2583 Net Profit(Half-Yearly) 269 H1/FY18 H1/FY19 -1414 H1/FY18 H1/FY19 20
Slide 21: Efficiency/Profitability Ratios
Efficiency/Profitability Ratios Return on Avg. Assets (%) Cost to Income(%) 48.63 0.11 45.17 45.52 47.77 46.58 0.10 0.10 44.47 Sep-17 Mar-18 Jun- Sep-18 H1 FY 18 H1 FY 19 (Q2) (Q4) 18(Q1) (Q2) -0.59 -1.27 -2.05 S. Efficiency Sep-17 Mar-18 Jun-18 Sep-18 H1 H1 No. Parameters (Q2) (Q4) (Q1) (Q2) FY 201
Slide 22: Efficiency Ratios
Efficiency Ratios Sep-17 Mar-18 Jun-18 Sep-18 H1 H1 Sn. Profitability Parameters (Q2) (Q4) (Q1) (Q2) FY 18 FY 19 Business per 1 ` crore 162.0 167.9 168.4 166.8 162.0 166.8 Branch Business per 2 ` crore 17.1 19.2 19 18.3 17.1 18.4 employee Gross Profit per 3 ` crore 1.8 1.8 1.9 1.6 1.9 1.8 Branch Gro
Slide 23: Asset Quality: Movement in Non Performing Assets
Asset Quality: Movement in Non Performing Assets (` crore) Sep-17 Mar-18 Jun-18 Sep-18 H1 H1 Parameters (Q2) (Q4) (Q1) (Q2) FY 18 FY 19 Gross NPAs - Opening 37286 40988 49370 50973 33712 49370 Add : Additions 2686 10043 4652 2667 7139 7319 Less : Reductions 1686 1661 3049 3483 2565 6532 1. Recoverie
Slide 24: Asset Quality: Sectoral
Asset Quality: Sectoral (` crore) Sectoral NPA % Slippages During Sectors NPAs Sep 2018 Q2 FY 19 Sep-17 Jun-18 Sep-18 Retail Loans 214 1276 2.53 2.65 2.49 Agriculture 784 3533 6.74 6.90 7.62 Micro & Small (MSE) 449 6098 10.71 12.03 12.21 Medium & Large 1220 39258 20.56 23.25 22.82 Total 2667 50157 1
Slide 25: Asset Quality: Sectoral
Asset Quality: Sectoral Standard as on Jun 2018 Standard as on Sep 2018 Scheme Amount Amount Account Account (Rs. in crore) (Rs. in crore) 5:25 12 3452 12 3452 SDR 1 0* 1 0* S4A 3 126 3 122 *Account is Non-Fund Based S.N. Sector # Outstanding NPA Std. Restructured NPA + Std. Restructured (%) 1 Infra
Slide 26: Asset Quality - NCLT I & II
Asset Quality - NCLT I & II 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 8 16 24 IBC (as per RBI list) Loan Outstanding as of Sept 30, 2018 5973 4501 10474 Total Provisions held upto Sept 30, 20
Slide 27: Basel III : Capital Adequacy
Basel III : Capital Adequacy Capital Adequacy Ratio RWA Optimization 91.2 11.50 11.45 11.55 89 87.3 11.22 2.72 2.43 2.46 2.52 8.5 9.07 8.99 9.02 58.7 58.1 58.2 Mar-18 Jun-18 Sep-18 Sep-17 Mar-18 Jun-18 Sep-18 RWA to Advance RWA to Assets Tier I Tier II CRAR (` crore) Particulars Sep-17 Mar-18 Jun-18
Slide 28: Shareholding Pattern
Shareholding Pattern Sept-18 Share Capital ` 1168.5 crore 8.26% 19.10% No. of Equity Shares 116.85 crore Govt. of India FIIs DIIs 5.22% Public & others Net Worth ` 17890 crore 67.42% Market Cap ` 7683 crore 28
Slide 29: Extensive & specialized distribution network
Extensive & specialized distribution network Branch Distribution by Urbanization METRO RURAL 21% 29% Jammu & Kashmir URBAN Chandigarh (13) (16) 20% SEMI- (10) (21) Arunachal Pradesh URBAN Meghalaya (1) (1) Punjab Himachal Pradesh (5) (5) 30% (142) (160) (20) (28) Uttarakhand (84) (127) Haryana (111)
Slide 30: 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 2871 Accounts opened till Sept 30, 2018 92.3 Lakh Deposits ` 1996.3 Crore RuPay Cards issued 48.2 Lakh Aadhar Seedin
Slide 31: Financial Inclusion
Financial Inclusion Total outstanding since inception under Mudra loan: ` 6378 crore Progress under Mudra Yojana April to September 2018 (PMMY) Category No. of Sanctioned Amount Outstanding Amount Accounts (` crore) (` crore) Shishu (< ` 50k) 16531 66 54 Kishor (Above ` 50k-5 Lakh) 61602 1311 1105 T
Slide 32: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 New Initiatives #4 Awards & Accolades 32
Slide 33: Strategic Initiatives
New Initiatives SARALs SARAL ULPs USKs Lite IFBs MCBs Credit Centralization Revamped MSME Revamped Retail USKs for Rural & IFBs & MCBs for loan processing loan processing Semi Urban loans corporate loans centre centre Strategic Initiatives Monitoring & Recovery Leveraging analytics for Faster resolu
Slide 34: New Initiatives: Centralization-Progress
New Initiatives: Centralization-Progress 1.Structure development: Creation of Centralized Processing Centres No of Units No. of Units Particulars Sectors covered (Mar-18) (Sep-18) ULP 73 73 Retail (Housing and Mortgage Loan) USK 4 19 Retail, Agriculture and MSME MSME, Agriculture (selected segment)
Slide 35: New Initiatives: Monitoring-Progress
New Initiatives: Monitoring-Progress 1.System based triggers & alerts for classification & identification of action required in stressed assets Scope Purpose Early Warning Signal Helps in identifying incipient weakness in MSME loans above Rs.10 lacs the accounts and taking remedial action 2.Leveragi
Slide 36: Digital Banking-Initiatives
Digital Banking-Initiatives The Bank has been pioneer in taking various digital initiatives to make its processes more robust and secure…… • Facilitates easy viewing of the Bank‟s product offerings in both English & Hindi. Union Shayog • Single interface for all mobile & web based Chatbot payment ch
Slide 37: Digital Banking - Progress
Digital Banking - Progress Expanding Digital banking base Y-o-Y Growth in Digital Banking Transactions through Alternate Channels (In %) Debit cards (No.) Credit cards (No.) grew at 16.9% grew at 15.5% 75.7 76.0 76.1 73.1 71.2 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Mobile Banking 5953 PoS Terminals grew
Slide 38: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 Asset Quality #4 Awards & Accolades 38
Slide 39: Awards
Awards • SKOCH Order of Merit Award- World HRD Congress Award UIDAI Award •Best Leadership Development Program Award – in Top Management Category •“Rising Star Award” – 1st Rank 2018 for best •Best Leadership Development Program Award – in Aadhaar Services Middle Management Category Asia Pacific HRM
Slide 40: 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 41: Investor queries
Investor queries: investor.relations@unionbankofindia.com 41