City Union Bank Limited · NSE:CUB
City Union Bank — Investor Presentation (September 2015)
41 slides from City Union Bank's investor presentation, September 2015
Slide 1: Investor Presentation – September 2015
INVESTOR PRESENTATION – SEPTEMBER 2015 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 … 04 - 06 2. Performance Highlights … 07 - 08 3. Branch Network … 09 - 10 4. Ownership Pattern … 11 - 13 5. Management … 14 - 17 6. Financial Performance & Business Profile … 18 - 40 3
Slide 4: 1. Overview
1. Overview 4
Slide 5: A specialized banking model aligned to Target Segment – SME / MSME
City Union Bank – A specilized banking model aligned to Target Segment – SME / MSME SME/MSME specialized business model focusing on large untapped SME/ MSME Segment consistently delivering higher yields focus Superior client servicing leading to client retention and low business acquisition costs SM
Slide 6: Key milestones
Key milestones 2012 2007 Rights Issue @ 1 : 4 – to reward Preferential allotment for equity the existing shareholders and shares strengthening bank’s employees under “Employee capital funds Reservation Scheme” 2014 1998 Celebrated 110th Year Initial Public Offering (IPO); Foundation Day in Dec ’14 L
Slide 7: 3. Q2 / H1 FY 2016 – Performance Highlights
3. Q2 / H1 FY 2016 – PEFORMANCE HIGHLIGHTS 7
Slide 8: Q2 / H1 FY 2016 Performance – A snapshot
Q2 / H1 FY 2016 Performance – A snapshot Deposits increased by 11% from Rs.232 Bn to Rs.256 Bn Y-o-Y Advances registered a growth of 12% from Rs.169 Bn to Rs.189 Bn Y-o-Y Gross Profit registered a growth of 19% from Rs.1729 Mn to Rs.2052 Mn on Q2-Vs-Q2 basis and 16% from Rs.3455 Mn to Rs.4024 Mn on
Slide 9: 4. Branch Network
CUB 4. Branch Network
Slide 10: Strong presence in the South
Strong presence in the South As of Sep 2015 - 485 branches. 434 branches are located in South India out of which 330 in Tamil Nadu State No. of % of % of % of Branches Deposits Advances Business Tamilnadu 330 77 68 73 Seemandhra 36 3 8 5 3 Telengana 23 3 5 4 3 Karnataka 26 5 5 5 6 Maharashtra 17 4 4
Slide 11: 5. Ownership Pattern
CUB 5. Ownership Pattern
Slide 12: A well diversified investor base
A well diversified investor base Ownership profile Corp Bodies, 8.92% Dom Inst, 9.86% Public, 41.52% FPI, 14.92% NRI, 2.02% FII, 21.28% Others, 1.48% Well diversified ownership of shareholders around 83000 Approx Long term investors ensuring stability and support to management Higher Participation f
Slide 13: A well diversified investor base
A well diversified investor base Major Institutional Shareholders as on 30th September 2015 Shareholders % of holding Lavender Investments Ltd (Chrys Capital) 3.95 GKFF Ventures (Argonaut Ventures) 3.93 Smallcap World Fund INC 3.31 NT Asian Discovery Master Fund 2.86 Life Insurance Corporation of In
Slide 14: 6. Management
CUB 14 cuB 6. Management
Slide 15: Transparent 'Corporate Governance' practices
Transparent ‘Corporate Governance’ practices Board consists of 6 Independent Directors and 4 Non-Independent Directors Various sub-committees of Board functions to oversee the operations of the Bank Code of conduct for directors and senior management put in place Disclosure norms strictly adhered to
Slide 16: A well experienced and strong Board (1/2)
A well experienced and strong Board (1/2) Name Profile Mr. S. Balasubramanian is serving as Non-Executive Chairman of the Bank from May 2011 and Mr. S.Balasubramanian, has 40 year experience in the Banking industry. He holds a Masters degree in Mathematics, CAIIB and PGDFM. He joined City Union Bank
Slide 17: A well experienced and strong Board (2/2)
A well experienced and strong Board (2/2) Name Profile Mr. C.R. Muralidharan is having 40 years of vast experience in regulatory Banking who retired as Mr. C.R. Muralidharan, Chief General Manager, Dept of Banking Operations & Development, Reserve Bank of India. He Director was also a whole time mem
Slide 18: 6. Financial Performance and Business Profile
6. Financial Performance and Business Profile 18
Slide 19: H1 FY 2016 Performance – A snapshot
H1 FY 2016 Performance – A snapshot HIGHLIGHTS FOR THE HALF YEAR ENDED 30th SEPTEMBER 2015 Deposits Advances Deposits increased by 11% to Rs.256 Bn from Rs.232 Bn Advances increased by 12% from Rs.169 Bn to Rs.189 Bn 11% 12% Total Business grew by 11% from Rs.401 Bn to Rs.446 Bn CASA CASA improved b
Slide 20: FY 2014-15 Performance – A snapshot
FY 2014-15 Performance – A snapshot HIGHLIGHTS FOR THE YEAR ENDED 31st MARCH 2015 Deposits Advances Deposits increased by 9% to Rs.241 Bn from Rs.220 Bn 9% 11% Advances increased by 11% from Rs.162 Bn to Rs.181 Bn Total Business grew by 10% from Rs.382 Bn to Rs.422 Bn CASA CASA grew by 18% to Rs.46
Slide 21: H1 FY 16 Vs H1 FY 15 – Performance – A snapshot
H1 FY 16 Vs H1 FY 15 – Performance – A snapshot Financial Performance (in INR Mn) H1 FY H1 FY Inc / % FY Particulars Growth 2016 2015 (Dec) Growth 2015 Deposits 256161 231517 24644 11% 240750 Advances 189348 169084 20264 12% 180885 Total Business 445509 400601 44908 11% 421635 Demand Deposits 18740
Slide 22: Q2 FY 16 Vs Q2 FY 15 – Performance – A snapshot
Q2 FY 16 Vs Q2 FY 15 – Performance – A snapshot Financial Performance (in INR Mn) Q2 FY Q2 FY INC / % Q1 FY Particulars 2016 2015 (DEC) GROWTH 2016 Net Interest Income 2401 2062 339 16% 2236 Other Income 945 902 43 5% 1049 Operating Expenses 1294 1235 59 5% 1314 Gross Profit 2052 1729 323 19% 1972 P
Slide 23: H1 FY 16 Vs H1 FY 15 – Performance – A snapshot
H1 FY 16 Vs H1 FY 15 – Performance – A snapshot Financial Performance (in INR Mn) H1 FY H1 FY INC / % FY Particulars 2016 2015 (DEC) GROWTH 2014-15 Net Interest Income 4637 3929 708 18% 8074 Other Income 1994 2009 -15 -ve 4041 Operating Expenses 2608 2483 125 5% 5188 Gross Profit 4024 3455 569 16% 6
Slide 24: Q2 FY 16 Vs Q2 FY 15 – Income and Expenses – Breakup
Q2 FY 16 Vs Q2 FY 15 – Income and Expenses – Breakup (in INR Mn) Interest Income Breakup Interest Expenses Breakup Q2 FY Q2 FY Growth Q2 FY Q2 FY Growth Particulars Particulars 2016 2015 (%) 2016 2015 (%) Interest on Loans 5830 5469 7% Int Exp on Deposits 4868 4702 4% Interest on Investments 1433 12
Slide 25: H1 FY 16 Vs H1 FY 15 – Income and Expenses – Breakup
H1 FY 16 Vs H1 FY 15 – Income and Expenses – Breakup (in INR Mn) Interest Income Breakup Interest Expenses Breakup H1 FY H1 FY Growth H1 FY H1 FY Growth Particulars Particulars 2016 2015 (%) 2016 2015 (%) Interest on Loans 11556 10680 8% Int Exp on Deposits 9603 9207 4% Interest on Investments 2669
Slide 26: FY 15 Vs FY 14 – Income and Expenses – Breakup
FY 15 Vs FY 14 – Income and Expenses – Breakup (in INR Mn) Interest Income Breakup Interest Expenses Breakup FY FY Growth FY FY Growth Particulars Particulars 2015 2014 (%) 2015 2014 (%) Interest on Loans 21662 20921 4% Int Exp on Deposits 18532 17340 7% Interest on Investments 4925 4075 21% Other I
Slide 27: Key Business Indicators
Key Business Indicators Key indicators Q2 FY Q2 FY H1 FY H1 FY FY Particulars 2016 2015 2016 2015 2014-15 Cost of Deposits 7.69% 8.22% 7.78% 8.24% 8.15% Yield on Advances 13.00% 13.57% 12.97% 13.28% 13.18% Yield on Investments 7.42% 7.57% 7.45% 7.64% 7.63% Net Interest Margin 3.74% 3.54% 3.70% 3.43%
Slide 28: Strong Deposits and Advances growth
Strong Deposits and Advances growth Deposits Advances 20% 21% CAGR 256161 CAGR 189348 180885 240750 220169 162236 153429 203048 163408 122217 31-Mar-12 31-Mar-13 31-Mar-14 31-Mar-15 30-Sep-15 31-Mar-12 31-Mar-13 31-Mar-14 31-Mar-15 30-Sep-15 Business CASA 20% CAGR 445509 R 17% 421635 CAG 46307 49950
Slide 29: Income Growth over the years
Income Growth over the years … Net Interest Income Growth Other Income Growth 19% 27% CAGR CAGR 8074 4041 7594 6240 2736 2799 4998 4637 2071 1994 31-Mar-12 31-Mar-13 31-Mar-14 31-Mar-15 30-Sep-15 31-Mar-12 31-Mar-13 31-Mar-14 31-Mar-15 30-Sep-15 CEB Growth Net Profit Growth 20% CAGR 20% CAGR 1967 39
Slide 30: Cost of deposits & Yield on advances
Cost of deposits & Yield on advances Cost of Deposits and Yield on Advances 13.56 13.43 13.04 12.97 12.82 13.46 13.49 13.18 12.47 11.32 10.85 8.37 8.11 7.73 7.78 7.23 8.44 8.15 7.98 6.94 5.75 5.95 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Sep-15 Spread between cost of deposits and yield on a
Slide 31: Key Business Ratios - Yearwise
Key Business Ratios - Yearwise Net Interest Margin Return on Assets 3.70% 1.71% 3.64% 1.67% 3.50% 1.58% 1.49% 1.51% 1.44% 3.40% 3.44% 3.35% 31-Mar-11 31-Mar-12 31-Mar-13 31-Mar-14 31-Mar-15 30-Sep-15 31-Mar-11 31-Mar-12 31-Mar-13 31-Mar-14 31-Mar-15 30-Sep-15 Cost of Funds Yield on Funds 7.66% 7.13%
Slide 32: Efficiency
Efficiency (Rs in Mn) Business per Employee Profit per Employee 99.9 0.99 0.91 96.5 0.84 0.85 0.82 93.8 90.6 84.7 31-Mar-12 31-Mar-13 31-Mar-14 31-Mar-15 30-Sep-15 31-Mar-12 31-Mar-13 31-Mar-14 31-Mar-15 30-Sep-15 32
Slide 33: Loan Book – Products Composition
Loan Book – Products Composition Amount % to Total Working capital loans yielding higher interest Loan Book Products Composition (INR Mn) Advances constitute 65% of advances Cash Credit & Demand Loans 122320 65% Re-pricing possible at short intervals thus Term Loans 65131 34% reducing interest rate
Slide 34: Loan book – Composition
Loan book – Composition Sectoral Deployment as on 30th September 2015 Secured & Unsecured Advances Amount % to Total Amount % to Total Particulars Particulars (INR Mn) Advances (INR Mn) Advances Agriculture (includes AJL – 18039 Mn) 28540 15% Secured Loans 187610 99% MSME 66095 35% Unsecured Loans 1
Slide 35: Loan Book – Sectoral Deployment
Loan Book – Sectoral Deployment Sectoral Deployment chart L A D, 3958 Infra, 1184 NBFC, 1787 Others, 8997 Personal Loan , 5219 Agri , 28540 Housing Loans, 13205 JL Non Agri, 3373 C R E, 10731 M S M E, 66095 Whlsale Trade, 23291 Retail Trade, 10447 Large Ind, 12521 35
Slide 36: Loan Book – Advances to Major Industries
Loan Book – Advances to Major Industries Advances to Major Industries as on 30th September 2015 Amount % to Total Industry Name (in INR Mn) Advances Textiles a) Cotton 10259 5% b) Other Textiles 6230 3% Metals a) Iron & Steel 6494 4% b) Other Metals 2745 1% Paper & Paper Products 4450 2% Food Proces
Slide 37: Asset Quality
Asset Quality (Rs in Mn) Gross NPA Qtm & Gross NPA % Net NPA Qtm & Net NPA % 2559 3983 3358 1973 2931 2.10% 1731 964 1.86% 1.81% 1.30% 1.36% 1235 1.23% 484 540 1.13% 0.44% 1.01% 0.63% 31-Mar-12 31-Mar-13 31-Mar-14 31-Mar-15 30-Sep-15 31-Mar-12 31-Mar-13 31-Mar-14 31-Mar-15 30-Sep-15 37
Slide 38: Asset Quality Position – Movement over the years
Asset Quality Position – Movement over the years FY FY FY FY FY H1 FY (Rs in Mn) Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 2016 NPA Opening balance 882 1125 1235 1731 2931 3358 Additions A 1207 1444 2234 4562 4250 1752 Recovery / SR 376 649 486 1865 2118 387 Upgradations 114 165 232 168 227 204 Net Additio
Slide 39: Restructured Accounts
Restructured Accounts No account has been restructured during H1 FY 2016 Balance outstanding as on 30.09.2015 in respect of Restructured Standard borrowers: Type Restructuring No. of Amount Borrowers (in INR Mn) Under CDR Mechanism 1 708 Under SME Debt Restructuring Mechanism 4 122 Under Other Debt
Slide 40: Investments – At a Glance
Investments – At a Glance Investments Breakup and Categorywise (in INR Mn) Particulars SEP 2015 MAR 2015 SEP 2014 SLR Securities 68110 54875 61217 Non-SLR Securities 4288 3849 2684 Total Investments 72398 58724 63901 Yield on Investments 7.64% 7.63% 7.45% Investments Breakup: -AFS 20599 (28%) 14304
Slide 41: Thank You
Thank You 41
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