Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q1 FY2017 Earnings Presentation
34 slides from Union Bank Of India's earnings presentation, Aug 6, 2016
Slide 1: Financial Results Q1 FY 2016-17
Financial Results Q1 FY 2016-17 August 06, 2016
Slide 2: Table of Contents
Table of Contents #1 Structural Transformation #2 Business Performance #3 Financials #4 Awards & Recognition 2
Slide 3: Structural Transformation
Structural Transformation 3
Slide 4: Structural Transformation: Impact
Structural Transformation: Impact 4
Slide 5: Structural Transformation: Impact
Structural Transformation: Impact Transaction through Alternate Channels Transactions through Mobile Channel (%) 67 67 (In Lakh) 64 63 104 60 97 Jun-15 56 Mar-16 Jun-16 43 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Mobile banking users(thousands) Debit Card (lakh) Internet Banking Users (lakh) 13.2 2
Slide 6: Scaling up
Scaling up Utkarsh will be scaled to 20 new Regions in a phased manner in FY 2017. 6
Slide 7: Table of Contents
Table of Contents #1 Structural Transformation #2 Business Performance #3 Financials #4 Awards & Recognition 7
Slide 8: Performance Highlights
Performance Highlights • Global Business increased by 4.2% to ` 607280 crore Business • CASA Share improved by 320 bps over Jun 2015. • RAM segment share in domestic advances increased to 54.2% • Non Interest Income for Q1/FY17 up 32.8% to ` 1040 crore over Non Interest Income Q4/FY16; •Net Profit f
Slide 9: Strong Liability Franchise
Strong Liability Franchise Parameters Jun Mar Jun Growth (%) 2015 2016 2016 (` crore) Y-o-Y Q-o-Q Total Deposits 327264 342720 338727 3.5 -1.2 - Domestic 322026 336086 334538 3.9 -0.5 - Overseas 5238 6634 4189 -20.0 -36.9 Current Deposits 21358 29743 24474 14.6 -17.7 Savings Deposits 71254 81133 821
Slide 10: Impact of Strategy on Liability Side
Impact of Strategy on Liability Side Savings Deposit growth (%) and Movement in Cost of Deposits(%) 7.4 15.3 7.3 7.2 7.3 13.4 7.3 7.2 13.2 7.1 10.3 11.7 10.8 11.3 10.6 6.9 9.9 6.8 8.9 6.5 Mar-14 Mar-15 Mar-16 Dec-14 Dec-15 Jun-14 Sep-14 Jun-15 Sep-15 Jun-16 Savings growth rate Cost of deposits 10
Slide 11: RAM Led Advances
RAM Led Advances (` crore) Parameters Jun Mar Jun Growth (%) 2015 2016 2016 Y-o-Y Q-o-Q Gross Advances 255553 277725 268553 5.1 -3.3 - Domestic 232072 251653 242935 4.7 -3.5 - Overseas 23481 26072 25618 9.1 -1.7 Retail Advances 32712 36589 37242 13.8 1.8 Agriculture 36209 38819 39172 8.2 0.9 MSME 46
Slide 12: RAM Led Advances
RAM Led Advances Annual growth(%) RAM share (%) in Domestic advances Jun-15 6.7 16.6 3.9 Jun-15 49.7 Sep-15 10.2 Advances 51.2 Sep-15 Dec-15 5.9 7 RAM segment Dec-15 51.1 Mar-16 5.7 11.7 Mar-16 52.0 Jun-16 5.1 14.3 Jun-16 54.2 Composition of Retail Portfolio (%) 3.7 2.1 18.8 Home Vehicle Education M
Slide 13: Advances – Top Exposures (Sector wise)
Advances – Top Exposures (Sector wise) Sn. Sectors Top 10 Sectors Amount (% Share in Domestic Advances) (` crore) Jun Mar Jun Jun 2015 2016 2016 2016 1 Agriculture 15.6 15.5 16.1 39172 2 Retail Advances 14.1 14.5 15.3 37242 3 Infrastructure 16.7 13.6 14.3 34673 4 Trade 12.0 11.5 11.4 27780 5 NBFCs a
Slide 14: Investment
Investment Investment in ` Crore 101777 102647 89762 Jun-15 Mar-16 Jun-16 (` crore) Jun-16 % to Total Duration (Years) Jun-16 Held to Maturity 73560 71.6 4.09 Held for Trading 100 0.1 4.30 Available for Sale 28987 28.2 6.57 Total Investment 102647 100 4.14 • 83.99% of AFS & HFT portfolio is interest
Slide 15: Overseas Presence
Overseas Presence Overseas branches at Hong Kong, DIFC (Dubai), Antwerp (Belgium) and Sydney(Australia) Business from Overseas Branches Jun-15 Mar-16 Jun-16 Growth (` crore) (%) YoY Representative offices at Shanghai, Beijing, and Business 28719 32706 29807 3.8 Abu Dhabi Total 5238 6634 4189 -20.0 D
Slide 16: Statement of Assets & Liabilities
Statement of Assets & Liabilities (` crore) As at As at As at Growth (%) 30.06.15 31.03.16 30.06.16 Y-o-Y Q-o-Q LIABILITIES Capital 636 687 687 8.0 0.0 Reserves and surplus 19636 22204 22502 14.6 1.3 Deposits 327264 342720 338727 3.5 -1.2 Borrowings 33022 30958 33549 1.6 8.4 Other Liabilities and Pr
Slide 17: Table of Contents
Table of Contents #1 Structural Transformation #2 Business Performance #3 Financials #4 Awards & Recognition 17
Slide 18: Cost & Yield Ratio
Cost & Yield Ratio Parameters Jun-15 Mar-16 Jun-16 (%) (Q1) (Q4) (Q1) Domestic Global Domestic Global Domestic Global Cost of Deposit 7.30 7.20 6.86 6.75 6.54 6.46 Cost of Funds 6.71 6.46 6.22 5.98 6.07 5.82 Yield on Advances 10.57 9.95 10.13 9.17 9.57 8.93 Yield on Investment 7.82 7.78 7.83 7.77 7.
Slide 19: Non-Interest Income
Non-Interest Income (` crore) Parameters Jun-15 Mar-16 Jun-16 Growth (%) Growth (%) (Q1) (Q4) (Q1) Y/Y Q/Q a. Core Non Interest Income 422 551 457 8.3 -17.1 b. Treasury Income 321 390 547 70.4 40.3 W/w •Profit on Sale of 195 206 316 150.8 71.7 Investments •Exchange Profit 126 184 231 477.5 312.5 c.
Slide 20: Operating Profit
Operating Profit (` crore) Jun-15 Mar-16 Jun-16 Growth (%) Growth (%) (Q1) (Q4) (Q1) Y/Y Q/Q Parameters Interest Income 8260 7888 7878 -4.6 -0.1 Interest Expenditure 6130 5803 5775 -5.8 -0.5 Net Interest Income 2130 2085 2103 -1.3 0.9 Non Interest Income 783 997 1040 32.8 4.3 Operating Expenses 1425
Slide 21: Provisions
Provisions (` crore) Parameters Jun-15 Mar-16 Jun-16 (Q1) (Q4) (Q1) NPAs 480 2008 1347 Standard Assets -22 -63 49 Depreciation on Investment 199 42 -42 Shifting Loss 6 0 2 Restructured Advances 7 -305 -11 Others (FITL etc) -28 -118 8 Taxation 327 -251 106 Total 969 1313 1459 21
Slide 22: Net Profit
Net Profit ` crore 519 167 72.2% Q/Q 97 78 Jun-15 Dec-15 Mar-16 Jun-16 22
Slide 23: Efficiency/ Profitability Ratios
Efficiency/ Profitability Ratios Sn Efficiency Parameters Jun-15 Mar-16 Jun-16 (Q1) (Q4) (Q1) 1 Return on Avg. Assets (%) 0.55 0.10 0.17 2 Return on Equity (%) 11.02 1.95 3.36 3 Cost to Income Ratio (%) 48.92 54.25 48.28 4 Book Value Per Share (`) 296.20 287.51 288.52 5 Earnings per share (`) 32.64
Slide 24: Asset Quality: Movement in Non Performing Assets
Asset Quality: Movement in Non Performing Assets (` crore) Parameters Jun-15 Mar-16 Jun-16 (Q1) (Q4) (Q1) Gross NPAs - Opening 13031 18495 24171 Add : Additions 1508 6170 3603 Less : Reductions 395 494 493 1. Recoveries 160 204 350 2. Upgradation 78 191 141 3. Write Off 157 99 2 Gross NPAs- Closing
Slide 25: Asset Quality: Sectoral
Asset Quality: Sectoral (` crore) Sectors Slippages NPAs % to Total % to Sector Loan During Q1 June NPAs Jun Mar Jun FY 17 2016 2015 2016 2016 Agriculture 194 2080 7.62 4.62 5.21 5.31 Micro & Small 357 3628 13.30 6.67 7.79 8.15 (MSE) Retail Loans 184 1091 3.90 2.52 2.54 2.93 Others 2868 20482 75.18
Slide 26: Restructured Assets
Restructured Assets (` crore) Jun-16 (Q1) Particulars Standard NPA Total Restructured Assets as on April 01,2016 8572 9055 17628 Fresh Restructuring during the Quarter 0 0 0 Upgradation to Restructured Accounts during the Quarter 4 -4 0 Down gradation of restructured accounts during the Quarter -572
Slide 27: Sector wise Standard Restructured Accounts
Sector wise Standard Restructured Accounts (` crore) Sector Amt. % to Standard Restructured 1 Infrastructure 3309 45.7 a. Power 2034 28.1 w/w SEBs 578 8.0 2 Engineering 1010 13.9 3 Iron & Steel 482 6.7 4 Hotel 436 6.0 5 Textiles 396 5.5 Amt % to Standard % to Gross Restructured Advances Loans Outsta
Slide 28: Basel III: Capital Adequacy
Basel III: Capital Adequacy 10.56 10.75 10.14 10.26 10.30 2.42 2.36 2.68 2.60 2.85 Tier II Tier I 8.14 8.39 CRAR 7.46 7.67 7.45 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 (` crore) Jun 2015 Sep 2015 Dec 2015 Mar 2016 Jun 2016 Risk Weighted Assets 254537 260508 258677 273791 267176 Capital Funds 25805 26740
Slide 29: Shareholding Details
Shareholding Details •Share Capital ` 67.40 crore •No. of Equity Shares: 68.74 crore • Net worth: ` 19834 crore •Market Cap ` 8819 crore Shareholding Pattern (%) Public & others, 11.29% DIIs, The GoI has decided to Infuse 18.62% Rs. 721 crore in the Bank during the current Financial year. Govt. of I
Slide 30: Extensive & specialized distribution network
Extensive & specialized distribution network focused on the needs of the different business segments Branch Distribution by Urbanization Metro 18% Rural 31% Urban 21% Jammu & Kashmir Semi Urban Chandigarh (13) (16) (10) (21) Arunachal Pradesh 30% Meghalaya (1) (1) Punjab Himachal Pradesh (5) (5) (13
Slide 31: 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 Jun 30, 2016 57.50 Lakh Deposits ` 892 Crore RuPay Cards issued 54.48 Lakh Aadhar Seeding 22.91 Lakh Progr
Slide 32: Awards & Recognition
Awards & Recognition Technology award by Institute for Development & Research in Banking Best Bank Award for the Use of technology for Financial Inclusion among large banks by Institute for Development & Research in Banking Technology Six Banking Technology Awards from IBA 1. Best Technology Bank of
Slide 33: 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 34: Investor queries
Investor queries: investor.relations@unionbankofindia.com
Union Bank of India — Q1 FY2017 Earnings Presentation on 6ix