Union Bank Of India Limited · NSE:UNIONBANK

Union Bank Of India — Q3 FY2016-17 Earnings Presentation

38 slides from Union Bank Of India's earnings presentation, Feb 8, 2017

  1. Slide 1: Financial Results Q3 & 9M FY 2016-17

    Financial Results Q3 & 9M FY 2016-17 February 8, 2017 Please follow us on: @unionbankofficial @UnionBank Tweets

  2. Slide 2: Table of Contents

    Table of Contents #1 Business Performance #2 Financials #3 Structural Transformation #4 Awards & Accolades 2

  3. Slide 3: Snapshot as on December 31, 2016

    Snapshot as on December31, 2016 Total Business ` 656819 crore Gross Advances ` 277012 crore Total Deposits ` 379807 crore Net Profit (Q3FY17) ` 104 crore Net Profit (9MFY17) ` 447 crore Earning Per Share (9MFY17) ` 8.67 ROA (%)(9MFY17) 0.14 ROE (%)(9MFY17) 3.05 Net NPA Ratio 6.95 Basel III Tier I CA

  4. Slide 4: Strong Liability Franchise

    Strong Liability Franchise Total Deposits ` crore CASA Portfolio ` crore 139708 39.5% YOY 379807 4385 110876 114011 361454 100173 342720 6693 327412 6634 110116 46.8% YOY 375422 81133 90551 6397 75024 354761 336086 321015 25149 29743 23460 29592 17.7% YOY Dec-15 Mar-16 Sep-16 Dec-16 Dec-15 Mar-16 Se

  5. Slide 5: Strong Liability Franchise: Savings Deposit Growth and Cost of Deposit

    Strong Liability Franchise Movement in savings deposit growth and Cost of Deposit 46.8 23.4 25.0 7.3 7.2 7.1 15.3 6.9 6.8 6.5 6.5 10.6 10.3 6.3 9.9 13.4 8.9 5.0 5.0 Dec-15 Dec-16 Jun-15 Jun-16 Mar-15 Mar-16 Sep-15 Sep-16 Savings growth rate (YoY) Cost of deposit (%) 5

  6. Slide 6: Diversified Loan Portfolio

    Diversified Loan Portfolio Gross Advances ` crore 277725 278368 277012 262477 235948 251653 251888 249741 26529 26072 26480 27271 Dec-15 Mar-16 Sep-16 Dec-16 Domestic Overseas Retail Advances ` crore Agriculture ` crore MSME ` crore 16.8% YOY 12.2% YOY 10.3% YOY 38847 39076 58268 57097 41159 55524 3

  7. Slide 7: Diversified Loan Portfolio

    Diversified Loan Portfolio Annual Growth (%) RAM* share (%) in Domestic advances Sep-15 3.9 54.9 10.2 54.8 54.2 Dec-15 5.9 7 Mar-16 5.7 11.7 Advances 52.0 5.1 RAM segment 51.1 Jun-16 14.3 Sep-16 9.6 17.8 Dec-16 5.3 13.5 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Dec-15 Dec-16 3.6 3.7 2.4 1.8 Home Home 18.0

  8. Slide 8: Diversified Loan Portfolio: Top Sectors

    Diversified Loan Portfolio S No. Sectors Top 10 Sectors Amount (% Share in Domestic Advances) (` crore) Dec Mar Sep Dec Dec 2015 2016 2016 2016 2016 1 Agriculture 15.6 15.5 16.3 16.3 40723 2 Retail Advances 14.7 14.5 15.4 15.6 39076 3 Infrastructure 16.1 13.6 14.5 15.6 38935 4 NBFCs and HFCs 8.6 11.

  9. Slide 9: Investments

    Investments Investment in (`) Crore 135806 119533 98580 89762 Dec-15 Mar-16 Sep-16 Dec-16 (` crore) Dec % to Total Duration Investment Composition (%) 2016 Investment (Years) Dec-16 Held to Maturity 79603 58.61 3.83 41% Held to Maturity Held for Trading 5 0.01 0 59% Held for Trading Available for 56

  10. Slide 10: Overseas Operations

    Overseas Operations Branches at Hong Kong, DIFC (Dubai), Antwerp (Belgium) and Sydney (Australia) Representative Offices at Shanghai, Beijing and Abu Dhabi Union Bank of India (UK) Limited, a wholly owned subsidiary of the Bank Total Overseas Business of the Bank stood at ` 31656 crore as on Dec-201

  11. Slide 11: Statement of Assets & Liabilities

    Statement of Assets & Liabilities (` crore) As at As at As at As at Growth (%) 31.12.15 31.03.16 30.09.16 31.12.16 Y-o-Y Q-o-Q LIABILITIES Capital 687 687 687 687 0.0 0.0 Reserves and surplus 21387 22204 22755 22890 7.0 0.6 Deposits 327412 342720 361454 379807 16.0 5.1 Borrowings 32466 30958 37541 3

  12. Slide 12: Table of Contents

    Table of Contents #1 Business Performance #2 Financials #3 Structural Transformation #4 Awards & Accolades 12

  13. Slide 13: Cost & Yield Ratio

    Cost & Yield Ratio Parameters Dec-15 (Q3) Sep-16 (Q2) Dec-16 (Q3) 9M FY 2016 9M FY 2017 Domestic Global Domestic Global Domestic Global Domestic Global Domestic Global Cost of Deposit 7.03 6.94 6.55 6.47 6.35 6.28 7.17 7.08 6.49 6.42 Cost of Funds 6.44 6.14 5.78 5.58 5.52 5.34 6.56 6.28 5.78 5.57 Yi

  14. Slide 14: Movement of NIM & NII

    Movement of NIM & NII 2.32 2.30 2.40 2.22 2.01 2.32 2.27 2.31 2.46 2.43 2.04 2.19 Dec-15 Mar-16 Sep-16 Dec-16 9M FY 2016 9M FY 2017 NIM Domestic NIM Global NIM Domestic NIM Global (` crore) (` crore) 2277 6516 2136 2085 1997 6229 Dec-15 Mar-16 Sep-16 Dec-16 9M FY 16 9M FY 17 Net Interest Income Net

  15. Slide 15: Non-Interest Income

    Non-Interest Income (` crore) Parameters Dec-15 Mar-16 Sep-16 Dec-16 Growth Growth 9M FY 9M FY Growth (Q3) (Q4) (Q2) (Q3) (%) (%) 2016 2017 YOY QOQ a. Core Non Interest 437 551 498 472 8.0 -5.1 1329 1427 7.4 Income b. Treasury Income 421 390 598 822 95.4 37.4 1177 1968 67.2 W/w  Profit on Sale of 2

  16. Slide 16: Profitability

    Profitability (` crore) (` crore) 1820 1851 5296 1410 1334 4312 Dec-15 Mar-16 Sep-16 Dec-16 9M FY 16 9M FY 17 Operating Profit Operating Profit 16

  17. Slide 17: Provisions

    Provisions (` crore) Parameters Dec-15 Mar-16 Sep-16 Dec-16 9M FY 16 9M FY 17 (Q3) (Q4) (Q2) (Q3) NPAs 1243 2008 1598 1582 2647 4527 Standard Assets -17 -63 124 78 -37 257 Depreciation on Investment 21 42 -12 81 107 27 Shifting Loss 0 0 0 0 6 2 Restructured Advances -6 -305 -1 -10 -318 -22 Others (F

  18. Slide 18: Net Profit

    Net Profit (` crore) (` crore) 177 1255 104 97 447 78 Dec-15 Mar-16 Sep-16 Dec-16 9M FY 16 9M FY 17 18

  19. Slide 19: Efficiency/Profitability Ratios

    Efficiency/Profitability Ratios Return on Avg. Assets (%) Cost to Income(%) 0.44 0.17 53.82 54.25 0.14 51.35 0.10 0.09 0.08 47.23 46.75 46.75 Dec-15 Mar-16 Sep-16 Dec-16 9M FY 9M FY Dec-15 Mar-16 Sep-16 Dec-16 9M FY 9M FY (Q3) (Q4) (Q2) (Q3) 16 17 (Q3) (Q4) (Q2) (Q3) 16 17 S. No. Efficiency Paramete

  20. Slide 20: Efficiency Ratios

    Efficiency Ratios Sn. Profitability Parameters Dec-15 Mar-16 Sep-16 Dec-16 9M FY 16 9M FY 17 (Q3) (Q4) (Q2) (Q3) 1 Business per ` crore 141.5 147.7 151.8 155.02 143.2 155.02 Branch 2 Business per ` crore 16.3 17.5 17.0 17.6 16.5 17.6 employee 3 Gross Profit per ` crore 1.3 1.3 1.7 1.7 1.4 1.7 Branch

  21. Slide 21: Asset Quality: Movement in Non Performing Assets

    Asset Quality: Movement in Non Performing Assets (` crore) Parameters Dec-15 Mar-16 Sep-16 Dec-16 9M FY 169M FY 17 (Q3) (Q4) (Q2) (Q3) Gross NPAs - Opening 15541 18495 27281 29862 13031 24171 Add : Additions 3409 6170 3396 3294 6698 10293 Less : Reductions 455 494 815 753 1233 2061 1. Recoveries 77

  22. Slide 22: Containing Slippages – A Priority

    Containing Slippages – A Priority (` crore) Slippages 6170 3603 3396 3294 3409 Dec-15 (Q3) Mar-16 (Q4) Jun-16 (Q1) Sep-16 (Q2) Dec-16 (Q3) 22

  23. Slide 23: Asset Quality: Sectoral

    Asset Quality: Sectoral (` crore) Sectors Slippages NPAs Dec % to Total % to Sector Loan During Q3 2016 NPAs FY 17 Dec-15 Mar-16 Sep-16 Dec-16 Retail Loans 53 1167 3.6 2.79 2.54 3.10 2.99 Agriculture 30 2026 6.25 4.81 5.21 5.11 5.61 Micro & Small (MSE) 169 3972 12.25 7.44 7.79 8.50 9.25 Medium & Lar

  24. Slide 24: Restructured Assets

    Restructured Assets (` crore) Dec-16 (Q3) Particulars Standard NPA Total Restructured Assets as on October 01, 2016 5636 10581 16217 Fresh Restructuring during the Quarter 0 0 0 Upgradation to Standard Restructured Accounts during the Quarter 1 -1 0 Restructured Standard Advances which cease to attr

  25. Slide 25: Stress Mostly Recognized

    Stress Mostly Recognized (` crore) S.N. Sector Amt. % to Standard Restructured 1 Infrastructure 1984 35.9 a. Power 1166 20.9 b. Roads 768 13.9 2 Engineering 1018 18.4 3 Textiles 494 8.9 4 Hotel 441 8.0 5 Iron & Steel 380 6.9 Sectors 5:25 SDR S4A During Q3 Total Outstanding During Q3 Total Outstandin

  26. Slide 26: Basel III: Capital Adequacy

    Basel III : Capital Adequacy 10.75 11.19 11.36 10.30 10.56 2.36 2.63 2.86 2.60 2.42 Tier II Tier I 7.70 8.14 8.39 8.56 8.51 CRAR Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 (` crore) Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Risk Weighted Assets 258677 273791 267176 281316 281877 Capital Funds 26632 28932 28717 314

  27. Slide 27: Shareholding Pattern

    Shareholding Pattern Share Capital ` 687.4 crore Shareholding Pattern (%) No. of Equity Shares 68.74 crore Net Worth ` 19558 crore Public & others Market Cap ` 8462 crore 10.92% DIIs 19.73% Govt. of India The GOI has decided to infuse 63.44% Capital of ` 721 crore in the Bank FIIs During the current

  28. Slide 28: Extensive & specialized distribution network

    Extensive & specialized distribution network focused on the needs of the different business segments Branch Distribution by Urbanization METRO RURAL 18% 31% URBAN Jammu & Kashmir SEMI- Chandigarh (13) (16) 21% (10) (22) Arunachal Pradesh URBAN Himachal Pradesh Meghalaya (1) (1) 30% Punjab (5) (5) (1

  29. Slide 29: Financial Inclusion

    Financial Inclusion Progress under Pradhan Mantri Jan Dhan Yojana (PMJDY) Parameters Achievements of the Bank Villages covered 18396 Sub Service Areas 5407 Urban Wards 2581 Accounts opened till December 31, 2016 64.11 Lakh Deposits ` 1565.03 Crore RuPay Cards issued 53.37 Lakh Aadhar Seeding 32.48 L

  30. Slide 30: Table of Contents

    Table of Contents #1 Business Performance #2 Financials #3 Structural Transformation #4 Awards & Accolades 30

  31. Slide 31: Structural Transformation: Key Shifts to Empower Organization Structure

    Structural Transformation Key Shifts to Empower Organization Structure End to End Ownership of End to End Ownership of Stressed Assets Home/Mortgage loan Large Corporate Business Management Structure Business • Revised model of functioning • 3 major initiatives undertaken • Development of new for In

  32. Slide 32: Structural Transformation

    Structural Transformation Sales & Marketing setup and Focused approach for increasing specialization Agri-Business • Specific focus on 4 sets of Marketing Officers • Focus on business share and potential of rural with defined key roles: and semi-urban branches • Set 1: Attached to Regional Offices •

  33. Slide 33: Digital Banking

    UU) GREEN PIN INSTANT PIN Union Bank of India Digttal Bank_---- Digital India castles satioet @ your fingertips Hitechbanking served ho, 33

  34. Slide 34: Structural Transformation: Impact

    Structural Transformation: Impact Mobile Banking Transactions (In Lacs) Internet Banking (lacs) 14.5 156 13.8 121 13.2 104 12.8 97 12.4 79 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Debit Card (lacs) Mobile Banking Users (Thousands) 457 289 277 390 359 268 322 257 277 246

  35. Slide 35: Table of Contents

    Table of Contents #1 Business Performance #2 Financials #3 Structural Transformation #4 Awards & Accolades 35

  36. Slide 36: Awards

    Awards Golden Peacock Award Union Bank of India won the Golden Peacock HR Excellence Award for the year 2016. Union Bank of India won this Award third time in a row. Award in the area of Digitization Skoch order of merit on Digital Inclusion FIS award for long lasting relationship Award in the area

  37. Slide 37: 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

  38. Slide 38: Investor queries

    Investor queries: investor.relations@unionbankofindia.com

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