Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q2 FY2011 Earnings Presentation
35 slides from Union Bank Of India's earnings presentation, September 2010
Slide 1: Presentation: Financial Results 30th Sept., 2010
Presentation Financial Results th 30 Sept., 2010 1
Slide 2: Highlights of Business Growth Q2 11 over Q2 10
HIGHLIGHTS OF BUSINESS GROWTH Q2 11 over Q2 10 Total Business increased from ` 248496 cr. to ` 304203 cr. an increase of 22.42% Total Deposits registered impressive growth of 19.26 % and progressed from ` 149066 Cr . to ` 177780 cr. Savings Deposits grew from ` 32554 crs to ` 42038 crs., an impressi
Slide 3: Net Interest Income (Quarterly / Half Yearly)
Net Interest Income(NII) (Qty / Half Yearly) Growth (72.70%) Growth (68.95%) • Due to increase in interest on 2884 advances and investments, as 1537 3000 1600 also in other interest coupled 2700 with comparatively lower 1400 2400 increase in interest expenditure 1200 2100 has resulted in robust grow
Slide 4: Net Interest Margin (Quarterly / Half Yearly)
Net Interest Margin (Qty / Half Yearly) Net Interest Margin (on 8.05 8.01 8.28 8.04 earning assets) is 3.35% 8 8.00 for quarter Sept-10 from 2.42% in the previous 5.91 year. The higher NIM 5.81 6 6.00 factors in extraordinary 5.00 5.06 one time interest on IT returns of Rs 62 crs (net 3.35 4 3.22 4.
Slide 5: Non-Interest Income (Quarterly / Half Yearly)
Non-Interest Income- (Qty / Half Yearly) (` in crore) SEPT SEPT Growth SEPT SEPT Growth 09 10 % 09 10 % (Q2) (Q2) (H1) (H1) Core Fee Based 217 236 8.76 399 436 9.27 Income Treasury Income 230 187 -18.70 482 333 -30.91 W/w Profit on Sale of 192 131 -31.77 386 244 -36.79 Investments Income from Forex
Slide 6: Operating Profits (Quarterly / Half Yearly)
Operating Profits (Quarterly/ Half Yearly) Growth 39.63 % Growth 36.13% • Operating Profit of 1131 1200 2400 the Bank grew by 1000 810 2100 2174 `321 cr. from `.810 crs. to `.1131 crs, 1800 1597 800 (QoQ), a growth of 600 1500 39.63% 1200 400 • On Half yearly 900 basis It has 200 600 increased by 0
Slide 7: Provisions (Quarterly / Half Yearly)
Provisions (Quarterly / Half Yearly) (` in crore) SEPT 09 SEPT 10 SEPT 09 SEPT 10 (Q2) (Q2) (H1) (H1) Taxation 170 228 325 473 NPA 102 629 343 729 Standard Assets 2 13 17 22 Depreciation on Investment -4 -34 -139 -13 Others (Frauds / 35 -8 104 59 Restructured Adv.Etc.) Total 305 828 650 1270 Due to
Slide 8: Net Profits (Quarterly / Half Yearly)
Net Profits (Quarterly / Half Yearly) 600 Growth – 39.80% Growth – 4.44 % • The Net Profit of Rs 505 947 304 crs for Q2-11 1000 905 500 has been impacted mainly due to 400 800 higher NPA 304 provision of ` 629 300 crs as against ` 102 600 crs in the previous 200 year. 400 100 • However, Net profit f
Slide 9: Deposits
149066 177780 Deposits 1 1 1 1 5 3 2 0 9 7 6 4 3 1 0 5 0 5 0 5 0 5 0 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 115939 Total Deposits grew by 94804 19.26 % to ` 177780 Cr. 58111 CASA Deposits have 49142 30816 38372 increased by 18.25% to ` 58111 Cr. CASA share to Total S E P T 0
Slide 10: Advances
126423 Advances 120000 99439 Bank registered 105000 90000 86549 YoY growth of 68595 75000 27.15% in 60000 45000 advances. Yield 30000 on advances is at 15000 9.49 %. 0 SEPT 07 SEPT 08 SEPT 09 SEPT 10 TOTAL ADVANCES (` in Crore) SEPT 09 SEPT 10 YoY Growth% GROSS ADVANCES 99439 126423 27.15 RETAIL ADV
Slide 11: Business of Hong Kong Branch
BUSINESS OF HONG KONG BRANCH ` in Crs Business March 10 Sep 09 Sep 10 (Growth) % DEPOSITS 370 380 458 20.53 ADVANCES 2977 2300 4739 106.04 TOTAL BUSINESS 3347 2680 5197 93.92 PROFIT 58 32 37 15.63 11
Slide 12: Market Share
MARKET SHARE AS ON AS ON AS ON AS ON 26.09.08 25.09.09 18.06.10 24.09.10* OUR MARKET 3.21 3.29 3.49 3.53 SHARE IN DEPOSITS OUR MARKET 3.23 3.26 3.27 3.28 SHARE IN CREDIT *based on RBI fortnightly data on SCBs The Bank has been consistently outperforming the industry growth. 12
Slide 13: Composition of Retail Assets
COMPOSITION OF RETAIL ASSETS Product-wise composition of Retail assets Portfolio SEP 10 Housing Loans 18.40 Personal Loans Education Loans Auto Loans 8.10 Other Retail 10.36 59.71 3.43 13
Slide 14: Distribution of Ratings: Large & Mid Corporates
Distribution of Ratings Large & Mid Corporates The Bank is having a portfolio of ` 102487 crore (No. of Accounts 2854) of more than ` 5 crore, out of which 723 accounts with exposure of ` 48554 crore are rated. Rating of the accounts is as under: Rating No of Borrowers Exposure % OF RATED (` in Cr.)
Slide 15: Sector-wise Advances
SECTOR-WISE ADVANCES Across Large & Mid Corporates, SME and Corporate Agri Business Rank Sectors Outstanding (As on 30th Sept’10) % Amount (`. in Crore) 1 Retail Advances 11.51 14563 2 Infrastructure 9.52 12052 3 Trade 6.68 8456 4 Iron & Steel 4.25 5373 5 Textile 2.68 3392 6 Commercial Real Estate 2
Slide 16: Assets Restructured during H1-FY11
Assets Restructured during H1-FY 11 Nature of UPTO MAR 10 UPTO JUNE 10 DURING SEPT 10 Advance QTR. No of Amt. No of Amt. No of Amt. Accts Accts Accts (` in Crs) (` in Crs) (` in Crs) MSME W/w 30008 833.96 30015 841.24 48 28.79 Micro Enterprises 21210 267.40 21213 267.45 36 1.92 Small Enterprises 870
Slide 17: Assets Restructured during Q-2 / H1-FY11
Assets Restructured during Q-2 / H1-FY 11 Restructured Accounts Closed / Fully Adjusted (More than Rs. 1.00 crore) Sr. No. Details of Restructured Accounts Accounts Amount (` in cr.) 1 April – June 2010 3 32.53 2 July – Sept. 10 5 71.22 Total 8 103.75 Restructured Accounts turned to NPAs (for more t
Slide 18: Investments
60000 54015 59294 Investments 55000 9.00 50000 Growth in investments and yield 45000 40000 6.21 6.29 7.00 on investments were in line with 35000 30000 5.00 market trends. 25000 20000 3.00 Out of Total AFS portfolio of ` 15000 16059 cr. ` 8124 cr (50.59%) only 10000 1.00 SEPT 09 SEPT 10 is interest s
Slide 19: NPA Management
NPA Management (`.in crore) SEPT MARCH JUNE SEPT 09 10 10 10 Gross NPAs – Opening on 1st April 1923 1923 2671 2671 Add : Additions 496 1785 623 1753 Less : Deductions 500 1037 558 900 1. Due to Write Off 246 513 261 414 2. Due to upgradation 82 123 137 203 3. Due to Recoveries 172 401 160 283 Gross
Slide 20: Cost of Credit
Cost of Credit (` in Crs) Particulars SEP 09 MAR 10 SEPT 10 Gross Advances 99430 121249 126423 Average Advances 98848 109757 123836 NPA Provision 343 699 729 Credit Cost % 0.69 0.64 1.18 Note : Sept. Credit Cost % Annualised. 20
Slide 21: Shareholding Pattern (30th Sept 2010)
Shareholding Pattern (30th Sept’2010) Govt. of India 18.57 Banks, Fis, Ins. Cos. Others 14.12 FIIs and Foreign Mutual Funds 55.43 SEPT 09 SEPT 10 11.88 % % GOVT. 55.43 55.43 FIIs & FMFs 17.03 18.57 BANKS, INST./ 12.76 11.88 MUTUAL FUNDS OTHERS 14.78 14.12 21
Slide 22: Distribution Channels
DISTRIBUTION CHANNELS BRANCH MIX The Bank added 38 Including Hong Kong branches and 50 ATMs 611 branch during Q2-11. 808 SERVICE OUTLETS 675 Sep’08 Sep’09 Sep’10 775 Branches 2432 2713 2869 Ext. Counters 117 66 49 Service 35 43 46 Metro Urban Semi-Urban Rural branches Total 2584 2822 2964 South No
Slide 23: Shareholders' Returns (YoY)
Shareholders’ Returns (YoY) 200.00 193.49 60 180.00 156.72 160.00 50 122.80 140.00 120.00 103.56 40 37.51 35.83 100.00 30 80.00 23.35 19.83 60.00 20 40.00 10 20.00 0.00 0 Sep 07 Sep 08 Sep 09 Sep 10 Sep 07 Sep 08 Sep 09 Sep 10 BOOK VALUE Earning Per Share Book Value Earning per Share 23
Slide 24: Cost to Income Ratio
COST TO INCOME RATIO 60 • Cost to Income ratio had 49.58 moderated upto 41.89% as of 50 44.32 43.21 Sept. 2009 from peak of 49.58 42.55 41.89 as of Sept’06 on 40 implementation of operational efficiency measures. 30 20 • The ratio of 43.21% as of Sep’10 is higher mainly on 10 account of higher provi
Slide 25: Improved Efficiency
IMPROVED EFFICIENCY 1100 1000 971 Productivity measured 900 803 by Business per 800 700 669 employee increased 600 570 from ` 803 lacs to 500 ` 971 lacs. 400 300 Gross Profit Per 200 Employee has increased from ` 11.36 100 0 Sep 07 Sep 08 Sep-09 Sep-10 lac to ` 15.21 lacs BUSINESS PER EMPLOYEE 2
Slide 26: Capital Adequacy Ratio (Basel II)
Capital Adequacy Ratio (Basel II) 16 Capital Adequacy Ratio 14 13.76 reduced from 13.76% as on 12.53 30th Sept, 2009 to 12.53% as 12 on 30th Sept, 2010 due 10 increase in volume of 8.71 7.86 business. 8 Tier-I capital funds have 6 5.05 4.67 increased by 11.17% from 4 `.8956 crore as on Sept, 200
Slide 27: Delivery - Reach & Alternate Channel
Delivery - Reach & Alternate Channel Branch I Banking Users 3500 No of ATMs (lakhs) 3000 2869 3000 2713 6 2420 5.22 2432 2500 2130 2500 2274 5 2000 2000 4 1402 2.98 1500 1500 3 960 1.67 1000 1000 2 0.82 500 500 1 0 0 0 Sep 2007 Sep 2008 Sep 2009 Sep 2010 Sep 2007 Sep 2008 Sep 2009 Sep 2010 Sep 2007
Slide 28: Why Investing in Union Bank Share is Good Investment
WHY INVESTING IN UNION BANK SHARE IS GOOD INVESTMENT MAR MAR %Growth SEP %Growth 2007 2010 over 2007 2010 over Mar 2010 SHARE PRICE UNION BANK 104 292 180.76 388 32.88 BANKEX 6542 10652 62.82 14025 31.67 SENSEX 13072 17528 34.09 20069 14.50 Bank’s share price has outperformed the Bankex & Sensex dur
Slide 29: Major highlights of last quarter
Major highlights of last quarter 29
Slide 30: Major Highlights Q2-11
Major Highlights Q2-11 The Bank was amongst the first to enter into agreement with IIFCL for take-out financing. A total of 7 projects amounting to ` 1500 crs have been approved by IIFCL for take-out financing. The Bank entered into a Memorandum of Understanding (MoU) with Unique Identification Auth
Slide 31: Major Highlights Q2-11
Major Highlights Q2-11 Cashless Campus Project – Mobile PoT. The Bank successfully implemented Cashless Campus Project at RGPV, Bhopal by Introducing Payment Gateway & Mobile POT facilitating Electronic / Mobile Banking transactions. The Bank mobilised about 80,000 student accounts, 200 accounts of
Slide 32: Guidance 2010-11
Guidance 2010-11 32
Slide 33: Guidance 2010-11
Guidance 2010-11 The Bank aims for a deposits growth of approx. 20% and advances growth of 25% for 2010-11. Bank targets CASA Ratio of 35% by March 2012. Return on Equity to be 22.00% and Return on Average Assets to be 1.17% by March 2011. Transaction through electronic mode to reach 50% of total tr
Slide 34: 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 35: Dream Big
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Union Bank of India — Q2 FY2011 Earnings Presentation on 6ix