Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q1 FY18 Earnings Presentation
38 slides from Union Bank Of India's earnings presentation, Aug 10, 2017
Slide 1: Cover letter to stock exchanges on Q1 results presentation
(Qh ueata de aie sBar Ref: ISD/17-18/200 10" August, 2017 The Deputy General Manager, The Deputy General Manager, Corporate Relationships Dept. Listing Dept. BSE Ltd. National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot No.C/1, G Block Dalal Street, Bandra-Kurla Comp
Slide 2: Financial Results Q1/FY18
Financial Results Q1/FY18 August 10, 2017 Please follow us on: @unionbankofficial @UnionBank Tweets UnionBankInsta UnionBankofIndiaUtube
Slide 3: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 Structural Transformation #4 Awards & Accolades 2
Slide 4: Snapshot as on June 30, 2017
Snapshot as on June 30, 2017 Total Business ` 670971 crore Gross Advances ` 295175 crore Total Deposits ` 375796 crore Operating Profit ` 2057 crore Net Profit ` 117 crore Earning Per Share* ` 6.78 ROA (%)* 0.10 ROE (%)* 2.46 Net NPA Ratio 7.47 Basel III Tier I CAR 9.24 Basel III Total CAR 12.01 Bra
Slide 5: Strong Liability Franchise
Strong Liability Franchise Total Deposits CASA Portfolio ` crore 10.9% YOY 378391 31.5 34.4 35.5 375796 25.1% YOY 6616 6246 133412 130308 106604 338727 371775 369550 104072 104761 4189 82130 334538 24474 26236 28651 Jun-16 Mar-17 Jun-17 Jun-16 Mar-17 Jun-17 Domestic Overseas Current Deposit Savings
Slide 6: Strong Liability Franchise: Savings Deposit growth and Cost of Deposit
Strong Liability Franchise Movement in Savings Deposit growth and Cost of Deposit 46.8 28.3 27.6 23.4 25.0 7.2 7.1 15.3 6.9 6.8 6.5 6.5 10.6 10.3 6.3 13.4 8.9 5.9 5.8 5.0 5.0 Dec-16 Jun-15 Dec-15 Jun-16 Jun-17 Mar-16 Mar-17 Sep-15 Sep-16 Savings Deposit growth rate (YoY) Cost of deposit (%) 5
Slide 7: Diversified Loan Portfolio
Diversified Loan Portfolio Gross Advances (` crore) 301684 295175 9.9% YOY 268553 242935 272238 265683 25618 29446 29492 Jun-16 Mar-17 Jun-17 Domestic Overseas Retail Agriculture MSME 9.6% YOY 25.8% YOY 12.6% YOY 61913 42357 60676 40380 44124 44092 39172 55349 33671 Jun-16 Mar-17 Jun-17 Jun-16 Mar-1
Slide 8: Diversified Loan Portfolio
Diversified Loan Portfolio RAM* share (%) in Domestic advances 55.4 52.8 53.8 Jun-16 Mar-17 Jun-17 Composition of Advances Retail Agriculture MSME 18.8 Home 3.4 Vehicle 44.7 31.3 Industry Education 6.8 55.3 55.5 Services LAP 68.7 Personal 7.3 Others 8.2 SMF Other Agri *Retail, Agriculture and MSME c
Slide 9: Diversified Loan Portfolio
Diversified Loan Portfolio S No. Sectors Top 10 Sectors Amount (% Share in Domestic Advances) (` crore) Jun Mar Jun Jun 2016 2017 2017 2017 1 Agriculture 16.1 16.2 16.6 44092 2 Retail Advances 15.3 14.8 15.9 42356 3 Infrastructure 14.3 14.7 12.4 33001 4 NBFCs & HFCs 10.1 9.8 11.9 31576 5 Trade 11.4
Slide 10: Investments
Investments Investment (` Crore) 122228 113332 102647 Jun-16 Mar-17 Jun-17 (` crore) Jun Duration Investment Composition (%) 2017 (Years) Held to Maturity 78327 4.39 35% Held to Maturity Held for Trading 1177 6.81 64% Held for Trading 1% Available for Sale Available for 42724 3.29 Sale Total Investm
Slide 11: Overseas Operations
Overseas Operations Business from Overseas Operations US $ in billion Jun Mar Jun Growth (%) (` crore) 2016# 2017 2017* Y-o-Y Y-o-Y (US$) (INR) 4.4 5.6 5.6 Total Business 27.3 19.9 (29807) (36062) (35738) 0.6 1.0 1.0 Total Deposits 66.7 49.1 (4189) (6614) (6246) 3.8 4.6 4.6 Total Advances 21.1 15.1
Slide 12: Statement of Assets & Liabilities
Statement of Assets & Liabilities (` crore) As at As at As at Growth (%) 30.06.16 31.03.17 30.06.17 Y-o-Y Q-o-Q LIABILITIES Capital 687 687 687 0.0 0.0 Share Application Money 0 541 541 0.0 Reserves and surplus 22502 22748 22846 1.5 0.4 Deposits 338727 378391 375796 10.9 -0.7 Borrowings 33549 41226
Slide 13: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 Structural Transformation #4 Awards & Accolades 12
Slide 14: Cost & Yield Ratio
Cost & Yield Ratio Parameters Jun-16 (Q1) Mar-17 (Q4) Jun-17 (Q1) Domestic Global Domestic Global Domestic Global Cost of Deposit 6.54 6.46 5.98 5.91 5.91 5.84 Cost of Funds 6.07 5.82 5.41 5.24 5.30 5.03 Yield on Advances 9.57 8.93 9.03 8.41 8.60 8.05 Yield on Investment 7.6 7.55 7.15 7.09 6.97 6.92
Slide 15: Movement of NIM & NII and other Income
Movement of NIM & NII and other Income (` crore) 2.40 2.36 2387 2.28 2.27 2.20 2243 2.06 2103 Jun-16 Mar-17 Jun-17 Jun-16 Mar-17 Jun-17 Net Interest Income NIM Domestic NIM Global Parameters Jun-16 Mar-17 Jun-17 Growth (%) Growth (%) (Q1) (Q4) (Q1) YOY QOQ a. Core Non Interest Income 457 641 606 32.
Slide 16: Operating Profit
Operating Profit (` crore) 2134 2057 26.5% YOY 1626 Jun-16 Mar-17 Jun-17 Operating Profit 15
Slide 17: Provisions
Provisions (` crore) Parameters Jun-16 Mar-17 Jun-17 (Q1) (Q4) (Q1) NPAs 1347 1505 1876 Standard Assets 59 249 -61 Depreciation on Investment -42 604 -426 Shifting Loss 2 0 367 Restructured Advances -11 88 -43 Others (FITL etc) -1 -12 -9 Taxation 106 -409 236 Total 1459 2025 1940 16
Slide 18: Provisions
Provisions ` crore Exposure to number of accounts referred under IBC 11 (as per RBI communication dated June 23, 2017) Loan Outstanding as of June 30, 2017 7420 Total Provisions held upto March 2017 2395 Additional Provisions required in FY18 2460 (Including Ageing Provisioning) 17
Slide 19: Net Profit
Net Profit (` crore) 167 117 109 Jun-16 Mar-17 Jun-17 18
Slide 20: Efficiency/Profitability Ratios
Efficiency/Profitability Ratios Return on Avg. Assets (%) Cost to Income(%) 0.17 48.28 44.32 43.79 0.10 0.10 Jun-16 (Q1) Mar-17 (Q4) Jun-17 (Q1) Jun-16 (Q1) Mar-17 (Q4) Jun-17 (Q1) S. No. Efficiency Parameters Jun-16 Mar-17 Jun-17 (Q1) (Q4) (Q1) 1 Return on Equity (%) 3.36 2.27 2.46 2 Book Value Per
Slide 21: Efficiency Ratios
Efficiency Ratios Sn. Profitability Parameters Jun-16 Mar-17 Jun-17 (Q1) (Q4) (Q1) 1 Business per Branch ` crore 144.5 158.8 156.6 2 Business per employee ` crore 16.3 18.4 17.7 3 Gross Profit per Branch ` crore 1.55 2.0 1.9 4 Gross Profit per Employee ` lacs 17.5 23.2 21.7 5 Net Profit per Branch `
Slide 22: Asset Quality: Movement in Non Performing Assets
Asset Quality: Movement in Non Performing Assets (` crore) Parameters Jun-16 Mar-17 Jun-17 (Q1) (Q4) (Q1) Gross NPAs - Opening 24171 32403 33712 Add : Additions 3603 2951 4453 Less : Reductions 493 1642 879 1. Recoveries 350 533 328 2. Upgradation 141 393 211 3. Write Off 2 716 340 Gross NPAs- Closi
Slide 23: Asset Quality: Sectoral
Asset Quality: Sectoral (` crore) Sectors Slippages NPAs June % to Total % to Sector Loan During Q1 2017 NPAs FY 18 Jun-16 Mar-17 Jun-17 Retail Loans 193 1122 3.0 2.93 3.12 2.65 Agriculture 696 3519 9.4 5.31 5.10 7.98 Micro & Small (MSE) 591 4398 11.8 8.15 8.92 9.56 Medium & Large 2973 28247 75.8 13
Slide 24: Asset Quality: Sectoral
Asset Quality: Sectoral (` crore) S.N. Sector Outstanding NPA Std. Restructured NPA + Std. Restructured (%) 1 Infrastructure 33001 5307 1726 21.3 a. Power 18072 1852 909 15.3 b. Roads 6991 1516 777 32.8 2 Textiles 5986 1844 307 35.9 3 Iron & Steel 11340 8423 396 77.8 Sectors 5:25 SDR S4A (Standard a
Slide 25: Restructured Assets
Restructured Assets (` crore) Mar-17 (Q4) Particulars Standard NPA Total Restructured Assets as on April 01, 2017 5696 10512 16208 Fresh Restructuring during the Quarter 0 0 0 Upgradation to Standard Restructured Accounts during the Quarter 12 -12 0 Restructured Standard Advances which cease to attr
Slide 26: Basel III: Capital Adequacy
Basel III : Capital Adequacy Capital Adequacy Ratio Movement of Capital Adequacy Ratio 12.01 11.79 12.01 0.05 10.75 0.18 2.77 2.77 2.36 0.18 0.19 11.79 8.39 9.02 9.24 Jun-16 Mar-17 Jun-17 CRAR RWA growth Impact of AT1 Tier 2 CRAR Mar-17 higher RW on Jun-17 Unrated Tier I Tier II CRAR claims (` crore
Slide 27: Shareholding Pattern
Shareholding Pattern Jun-17 Public & Share Capital ` 687.4 crore others 10.57% No. of Equity Shares 68.74 crore Net Worth ` 18958 crore DIIs 20.46% Market Cap ` 10133 crore Govt. of India 63.44% The GOI has infused Capital of ` 541 crore in FIIs the Bank on March 31, 2017 as Share 5.53% Application
Slide 28: Extensive & specialized distribution network focused on different business segments
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 June 30, 2017 69.55 Lakh Deposits ` 1270.38 Crore RuPay Cards issued 48.91 Lakh Aadhar See
Slide 30: Financial Inclusion
Financial Inclusion Progress under Mudra Yojana (PMMY) (April to June 2017) Category No. of Sanctioned Amount Outstanding Amount Accounts (` crore) (` crore) Shishu (< ` 50k) 8439 31 28 Kishor (Above ` 50k-5 Lakh) 22205 457 410 Tarun (Above ` 5 Lakh-10 Lakh) 2789 208 174 Total 33433 696 612 Finance
Slide 31: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 Structural Transformation #4 Awards & Accolades 30
Slide 32: Structural Transformation
Structural Transformation 915 UX, 46 ULPs,21 SARALs (65% Retail + MSME 31
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 mobile banking base Umobile App Mpassbook App No. of downloads increased No. of downloads increased User Base grew by 66% by 1.4x while volume by 1.7x while volume transactions doubled transactions increased by compared to June-16 9.3x compared to June-16 Transactions throu
Slide 35: Digital Product Offering
Digital Product Offering
Slide 36: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 Structural Transformation #4 Awards & Accolades 35
Slide 37: Awards
Awards Award in the area of Information Technology • Skoch Order of Merit • Operational Customer Relationship Management (OCRM); • Skoch Financial Technology Award 2017: • Unified Payment Interface (UPI), • Green PIN solution for Debit Cards • UNION DIGI Gaon; • Financial Inclusion. 36
Slide 38: Investor queries
Investor queries: investor.relations@unionbankofindia.com 37