City Union Bank Limited · NSE:CUB
City Union Bank — Investor Presentation (June 2018)
36 slides from City Union Bank's investor presentation, June 2018
Slide 1: Investor Presentation June 2018
INVESTOR PRESENTATION JUNE 2018 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 Page : 04 2. Performance Highlights – June 2018 Page : 08 3. Financial Performance & Business Profile Page : 11 4. Branch Network Page : 32 5. Shareholding Pattern Page : 33 6. Corporate Governance Page : 34 3
Slide 4: Overview
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Overview City Union Bank Ltd, the oldest private sector bank in India, was founded on October 31, 1904 and is headquartered at Kumbakonam, Tamil Nadu
Slide 5: Key milestones
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Key milestones Celebrated 110th year Foundation Day in Dec 2014 Incorporation Took over Initial Public Obtained licenses Rights issue @ Raised INR of the Bank
Slide 6: A specialized banking model aligned to SME/MSME
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern City Union Bank – A specialized banking model aligned to Target Segment – SME/MSME • SME/MSME specialized business model focusing on large untapped SM E/ M SM
Slide 7: Competitive Advantages
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Competitive Advantages • Continuous profitability and dividend payout in all 110+ years of operations Strong track record • Business growth of 20% CAGR in las
Slide 8: Q1 FY 2018-19 Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Q1 FY 2018-19 Performance – A snapshot Deposits increased by 10% from Rs.305 Bn to Rs.336 Bn Y-o-Y Advances registered a growth of 17% from Rs.241 Bn to Rs.28
Slide 9: Q1 FY 2018 Vs Q1 FY 2017 Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Q1 FY 2018 Vs Q1 FY 2017 Performance – A snapshot (All figures in I N R M n) 335,974 282,151 618,125 80,384 10% 17% 13% 13% 304,683 240,582 545,265 70,987 Dep
Slide 10: FY 2018 Vs FY 2017 Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern FY 2018 Vs FY 2017 Performance – A snapshot (All figures in I N R M n) 328,526 282,386 610,912 79,567 9% 17% 13% 13% 301,157 241,125 542,282 70,390 Deposits A
Slide 11: Q1 FY 19 Vs Q1 FY 18 – Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Q1 FY 19 Vs Q1 FY 18 – Performance – A snapshot (in I N R M n) Financial Perform ance Particulars Q1 FY 2019 Q1 FY 2018 Inc / (Dec) Growth Growth % Deposits 3
Slide 12: Q1 FY 19 Vs Q1 FY 18 – Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Q1 FY 19 Vs Q1 FY 18 – Performance – A snapshot (in I N R M n) Financial Perform ance Particulars Q1 FY 2019 Q1 FY 2018 INC / (DEC) Growth % Q4 FY 2018 Net In
Slide 13: FY 18 Vs FY 17 – Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern FY 18 Vs FY 17 – Performance – A snapshot (in I N R M n) Financial Perform ance Inc / Particulars FY 2018 FY 2017 Growth Growth % (Dec) Deposits 328,526 301,1
Slide 14: FY 18 Vs FY 17 – Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern FY 18 Vs FY 17 – Performance – A snapshot (in I N R M n) Financial Perform ance Particulars FY 2018 FY 2017 INC / (DEC) Growth % Net Interest Income 14,303 11
Slide 15: Q1 FY 19 Vs Q1 FY 18 – Income and Expenses – Breakup
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Q1 FY 19 Vs Q1 FY 18 – Income and Expenses – Breakup (in I N R M n) Interest Income Breakup Interest Expenses Breakup Q1 FY Q1 FY Growth Q1 FY Q1 FY Growth Pa
Slide 16: FY 18 Vs FY 17 – Income and Expenses – Breakup
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern FY 18 Vs FY 17 – Income and Expenses – Breakup (in I N R M n) Interest Income Breakup Interest Expenses Breakup FY FY Growth FY FY Growth Particulars Particul
Slide 17: Strong Deposits and Advances growth
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Strong Deposits and Advances growth (in I N R M n) Deposits Advances CAGR 11 % CAGR 15 % 2,82,386 2,82,151 3,28,526 3,35,974 2,41,125 3,01,157 2,12,531 2,71,5
Slide 18: Income Growth over the years…
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Income Growth over the years… (in I N R M n) Net I nterest I ncom e Grow th Other I ncom e Grow th CAGR 17 % CAGR 17 % 14,303 5,321 4,840 11,988 4,100 4,041 9
Slide 19: Key Business Indicators
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Key Business Indicators Particulars Q1 FY 2019 Q1 FY 2018 Q4 FY 2018 FY 2017-18 Cost of Deposits 6.15% 6.44% 6.22% 6.29% Yield on Advances 10.86% 11.79% 11.19
Slide 20: Key Business Ratios – Yearly trends
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Key Business Ratios – Yearly trends Net I nterest M argin R eturn on Assets 5.00% 1.70% 1.64% 1.65% 4.50% 1.60% 4.24% 4.42% 1.60% 4.00% 4.17% 1.55% 1.50% 1.50
Slide 21: Cost of deposits & Yield on advances
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Cost of deposits & Yield on advances 16.00% 14.00% 13.46% 13.56% 13.49% 13.43% 13.04% 13.18% 12.83% 12.47% 12.10% 12.00% 11.46% 10.86% 10.00% 8.44% 8.37% 7.98
Slide 22: Efficiency
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Efficiency Cost income ratio C A S A R a t io 42.83 23.37 24.22 23.93 19.23 20.37 40.94 40.58 40.10 38.46 31-Mar-2015 31-Mar-2016 31-Mar-2017 31-Mar-2018 30-J
Slide 23: Loan Book – Products Composition
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Loan Book – Products Composition % to Total Advances 1% Cash Credit & Demand • Working capital loans yielding higher interest 34% Loans constitute 65% of adva
Slide 24: Loan Book – Sectoral Deployment – Position as on 30.06.2018
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Loan Book – Sectoral Deployment – Position as on 30.06.2018 (in I N R M n) Sectoral Deployment Secured & Unsecured Advances Agriculture 41,831 (15%) Amount %
Slide 25: Loan Book – Advances to Major Industries
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Loan Book – Advances to Major Industries (in I N R M n) Advances to Major Industries 30th June 2018 TEXTILE a) Cotton 13,038 (5%) b) Other Textiles 16,962 (6%
Slide 26: Asset Quality
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Asset Quality (in I N R M n) Gross NPA Qtm & Gross NPA % N et N P A Q t m & N et N P A % 8,566 8,511 4,748 4,735 4,083 6,820 3,232 5,120 2,328 3,358 3.03% 3.0
Slide 27: Asset Quality Position – Movement over the years
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Asset Quality Position – Movement over the years FY FY FY FY FY Q1 (Rs in Mn) Mar - 14 Mar - 15 Mar - 16 Mar - 17 Mar - 18 FY 2019 NPA Opening balance 1,731 2
Slide 28: Disclosure on Divergence in Asset Classification and Provisioning for NPAs
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Disclosure on Divergence in Asset Classification and Provisioning for NPAs In terms of RBI circular DBR.BP.BC.No.63/21.04.018/2016-17 dated 18th April 2017, b
Slide 29: RBI Dispensation
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern RBI DISPENSATION MSME Borrowers: In terms of RBI circular DBR.BP.BC.No.100/21.04.048/2017-18 dated 7th February, 2018 and DBR No.BP.BC.108/21.04.048/2017-18 d
Slide 30: Restructured Accounts
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Restructured Accounts Balance outstanding as on 30.06.2018 in respect of Restructured Standard borrowers No account has been restructured during Q1 FY 2019 Th
Slide 31: Investments – At a Glance
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Investments – At a Glance Investm ents Breakup and Categoryw ise (in I N R M n) Particulars JUN 2018 JUN 2017 SLR Securities 78,431 70,210 Non-SLR Securities
Slide 32: Strong presence in the South
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Strong presence in the South As of Jun -2018 - 601 branches. 539 branches are located in South India out of which 415 in Tamil Nadu No. of % of % of % of Stat
Slide 33: A well diversified investor base
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern A well diversified investor base as of 30th Jun 2018 Ownership profile Major Institutional Shareholders Shareholders % of Holding HDFC Midcap Opportunities Fu
Slide 34: Transparent 'Corporate Governance' practices
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Transparent ‘Corporate Governance’ practices Board consists of 9 Independent Directors (including 1 Women Director) and 1 Executive Director Various sub-commi
Slide 35: A well experienced and strong Board
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern A well experienced and strong Board Shri. S. Mahalingam | B.Com (Honours), FCA Dr N. Kamakodi | B.Tech., MBA., PhD., CAIIB Independent Part-time Chairman M.D.
Slide 36: City Union Bank Ltd. Investor Contact
CITY UNION BANK LTD. INVESTOR CONTACT Regd. Office : 149, TSR Big Street, Kumbakonam – 612001, Tamilandu. Name : K. Jayaraman, DGM Admin Office : "Narayana" No.24 B, Gandhi Nagar, Kumbakonam - 612001,Tamil Nadu. Mob : +91 9344303740 Tel : 0435-2402322, 2401622, | FAX: 0435-2431746 | www.cityunionban