City Union Bank Limited · NSE:CUB
City Union Bank — Investor Presentation (June 2016)
34 slides from City Union Bank's investor presentation, June 2016
Slide 1: Investor Presentation June 2016
INVESTOR PRESENTATION JUNE 2016 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 2016 Page : 08 3. Financial Performance & Business Profile Page : 11 4. Branch Network Page : 30 5. Shareholding Pattern Page : 31 6. Corporate Governance Page : 32 3
Slide 4: Overview Facts & Figures
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 Target Segment – 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 • Continuos profitability and dividend payout in all 100+ years of operations Strong track record • Business growth of 20% CAGR in last
Slide 8: Q1 FY 2016-17 Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Q1 FY 2016-17 Performance – A snapshot Deposits increased by 11% from Rs.251 Bn to Rs.279 Bn Y-o-Y Advances registered a growth of 19% from Rs.179 Bn to R
Slide 9: Q1 Vs Q1 Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Q1 Vs Q1 Performance – A snapshot (All figures in I N R M n) 279,356 212,155 491,511 57,573 11% 19% 14% 21% 251,112 179,009 430,121 47,402 Deposits Advances T
Slide 10: FY 2015-16 Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern FY 2015-16 Performance – A snapshot (All figures in I N R M n) 271,581 212,531 484,112 55,326 13% 17% 15% 19% 240,750 180,885 421,635 46,307 Deposits Advances
Slide 11: Q1 FY 17 Vs Q1 FY 16 – Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Q1 FY 17 Vs Q1 FY 16 – Performance – A snapshot (in I N R M n) Financial Perform ance Inc / Particulars Q1 FY 2017 Q1 FY 2016 Growth Growth % (Dec) Deposits 2
Slide 12: Q1 FY 17 Vs Q1 FY 16 – Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Q1 FY 17 Vs Q1 FY 16 – Performance – A snapshot (in I N R M n) Financial Perform ance INC / Particulars Q1 FY 2017 Q1 FY 2016 Growth % Q4 FY 2016 (DEC) Net In
Slide 13: FY 16 Vs FY 15 – Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern FY 16 Vs FY 15 – Performance – A snapshot (in I N R M n) Financial Perform ance Inc / Particulars FY 2016 FY 2015 Growth Growth % (Dec) Deposits 271,581 240,7
Slide 14: FY 16 Vs FY 15 – Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern FY 16 Vs FY 15 – Performance – A snapshot (in I N R M n) Financial Perform ance Particulars FY 2015-16 FY 2014-15 INC/ DEC Growth % Net Interest Income 9,810
Slide 15: Q1 – FY 17 Vs 16 – 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 17 Vs 16 – 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 Partic
Slide 16: FY 16 Vs 15 – Income and Expenses – Breakup
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern FY 16 Vs 15 – Income and Expenses – Breakup (in I N R M n) Interest Income Breakup Interest Expenses Breakup FY FY Growth FY FY Growth Particulars Particulars
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 14 % CAGR 15 % Business CASA CAGR 14 % CAGR 17 % 17
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 18 % CAGR 19 % (3M) (3M) CEB Grow th Net P rofit Grow
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 2017 Q1 FY 2016 Q4 FY 2016 FY 2015-16 Cost of Deposits 7.12% 7.85% 7.39% 7.62% Yield on Advances 12.36% 12.95% 12.59
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 Cost of Funds Yield on Funds 20
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 Spread between cost of deposits and yield on advances of our bank maintained in the last 10 years 21
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 AS A R a t io Business per Em ployee P rofit per Em ployee Business per Branch (in I N R M n) Profit per B ra n c h (in I N R M
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 • Working capital loans yielding higher interest constitute 65% of advances • Re-pricing possible at short intervals thus red
Slide 24: Loan Book – Sectoral Deployment
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Loan Book – Sectoral Deployment (in I N R M n) Sectorial Deploym ent Secured & Unsecured Advances 33,145 (15%) Amount % to Total Particulars 73,613 (35%) (INR
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 30 th June 2016 10,888 (5%) 8,729 (4%) 7,037 (3%) 3,724 (2%) Amount % to
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) G r oss NP A Q t m & Gr oss NP A % Net NP A Q t m & Net NP A % 26
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 FY (Rs in Mn) Mar - 12 Mar - 13 Mar - 14 Mar - 15 Mar - 16 2017 NPA Opening balance 1,125 1
Slide 28: 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 30.06.2016 in respect of Restructured Standard borrowers Amount Type Restructuring No. of Borrowers (in INR Mn
Slide 29: 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 Investments Breakup and Categoryw ise (in I N R M n) Particulars JUN 2016 JUN 2015 SLR Securities 68,436 69,723 Non-SLR Securities 4
Slide 30: 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 June 2016 - 525 branches. 469 branches are located in South India out of which 359 in Tamil Nadu No. of % of % of % of Stat
Slide 31: 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 30 th June 2016 Ownership profile Major Institutional Shareholders Shareholders % of Holding NT Asian Discovery Master
Slide 32: 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 7 Independent Directors and 3 Non-Independent Directors Various sub-committees of Board functio
Slide 33: 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. Mahalignam | B.Com (Honours), FCA Dr N. Kamakodi | B.Tech., MBA., PhD., CAIIB Non Executive Chairman M.D. & C.E.O
Slide 34: 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