Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q1 FY2012 Earnings Presentation
30 slides from Union Bank Of India's earnings presentation, Jul 22, 2011
Slide 1: Financial Results Q1 – 2012 Analyst Presentation
Financial Results Q1 – 2012 Analyst Presentation 22nd July, 2011
Slide 2: Performance Highlights (YoY)
Performance Highlights (YoY) Global Business up from `. 296227 cr. to `. 344745 cr. an increase of 16.38% Net Interest Income increased from `. 1347 cr. to `. 1590 cr. a growth of 18.04 % Operating Profit has improved from `. 1044 cr. to `. 1166 cr. an increase of 11.79% Net Interest Margin on Earni
Slide 3: Net Interest Income (Q1)
NET INTEREST INCOME (Q1) 1 8 0 0 1590 1 6 0 0 Growth 18.04% 1347 1 4 0 0 1 % 26.3 1 2 0 0 GR CA 1 0 0 0 817 789 8 0 0 6 0 0 4 0 0 2 0 0 0 J U N E - 0 8 J u n e 0 9 J u n e 1 0 J u n e 1 1 NET INTEREST INCOME 3
Slide 4: Operating Profits (Q1)
Operating Profits (Q1) 70% Operating Profits for R 23 . 1166 1200 C AG the quarter ended 1044 1000 Jun’11 improved by 787 11.79% to 1166 crs 800 616 from 1044 crs in the 600 previous year. 400 Operating profits 200 grew at CAGR of 0 23.70% over the June 08 June,09 June,10 June,11 past 3 years. 4
Slide 5: Provisions
PROVISIONS (`.in crore) June’10 June’11 (Q1) (Q1) Taxation 245 273 NPAs 100 365 Standard Assets 9 -12 Depreciation on Investment 21 8 Shifting Loss 83 62 Others (Frauds / Suspense Etc.) -11 1 Restructured Advances -05 5 Total 442 702 5
Slide 6: Net Profits (Q1)
Net Profits (Q1) R 2 6.72% 601 • Net Profit for Q1-11 has CA G 600 declined by 22.80% on YoY basis from ` 601 464 500 442 crore to `. 464 crore. 400 • Net profit declined mainly due to increase 300 228 of ` 214 crs in 200 provisions on NPAs due to revised norms of RBI 100 (` 185 cr) and June-08 June
Slide 7: Non-Interest Income - Q1 Comparison
Non-Interest Income- Q1 Comparison (`in crore) Jun’10 Jun’11 % Growth Core Fee based Income 200 210 5.00 Treasury Income 155 173 11.61 W/w Profit on Sale of 113 113 0 Investment Exchange on Foreign 42 60 42.86 Currencies Income from Forex Tran. 42 42 0 Recovery in Written-Off 38 59 55.26 accounts TO
Slide 8: Net Interest Margin (NIM) [YoY]
Net Interest Margin (NIM) [YoY] 10.00 9.10 7.80 8.00 6.16 6.00 4.95 4.00 3.03 3.10 2.00 0.00 30/06/2010 30/06/2011 Yield on Funds Cost of funds NIM Net Interest Margin on Earning Assets has increased from 3.03% to 3.10% due to improvement in Net Interest Income. 8
Slide 9: Deposits
Deposits 2 1 0 0 0 0 199178 16.15% Total Deposits 1 8 0 0 0 0 19.18% 171484 increased from `.171484 cr. to 1 5 0 0 0 0 143889 34.16% `.199178 cr. a 1 2 0 0 0 0 107248 growth of 16.15% 9 0 0 0 0 CASA deposits grew 62768 by 12.40% YoY 6 0 0 0 0 55845 43742 37280 CASA deposits 3 0 0 0 0 account for
Slide 10: Advances
145567 Advances 150000 Global advances 124743 of the Bank 120000 96026 registered YoY growth of 16.69% 90000 75810 from ` 124743 cr. to ` 145567 crs. 60000 Yield on advances has improved to 30000 10.86% from 0 9.37% in the June 08 June 09 June 10 June 11 previous year. TOTAL Advances 10
Slide 11: Sector-wise Advances
SECTOR-WISE ADVANCES Across Large & Mid Corporates, SME and Corporate Agri Business Rank Sectors Outstanding (As on 30TH JUNE 2011) % Amount (`. in Crore) 1 Infrastructure 14.00 20375 2 Retail Advances 10.52 15319 3 Trade 5.60 8148 4 NBFC 5.03 7325 5 HFCs 3.64 5276 6 Chemical and chemical products 1
Slide 12: Composition of Retail Assets
COMPOSITION OF RETAIL ASSETS Product-wise composition of Retail assets Portfolio JUNE 11 16.01 Housing Loans Personal Loans Education Loans 8.02 Auto Loans Other Retail 10.78 61.51 3.68 12
Slide 13: Assets Restructured
Assets Restructured . ` in Crs Upto March 2011 During June 2011 Total Amt. Amt. Accounts Amt. Accounts Accounts Assets 120114 5616.18 90 228.60 120204 5844.78 Restructured Upto March 2011 During June 2011 Total Amt. Amt. Accounts Amt. Accounts Accounts Adjusted / 31530 788.64 2336 143.78 33866 932.4
Slide 14: Investments
60124 60000 54846 10 Investments 50000 Investments have shown a 40000 8 growth of 9.62% and Yield on 30000 Investments have increased by 20000 45 bps from 6.13% to 6.58%. 6.58 10000 6.13 6 Out of Total AFS portfolio of `. 10264 Cr. `. 4357 Cr (42.44 %) is Jun-10 Jun-11 Investments Yield on Inv inter
Slide 15: Book Value, Cost to Income Ratio, Earning Per Share
240 Book Value 222.04 220 213.17 200 173.38 180 160 137.87 140 120 100 80 60 40 20 0 Mar 09 Mar 10 Mar 11 June 11 BOOK VALUE 60 Cost to Income Ratio Earning Per Share 60 50 43.79 50 41.45 41.08 40 39.71 40 34.18 35.43 30 30 20 20 10 10 0 0 Mar 09 Mar 10 Mar 11 June 11 June-10 June-11 Earning Per Sha
Slide 16: Ratios Without Exceptional Items
RATIOS WITHOUT EXCEPTIONAL ITEMS ` in Crs RATIO ACTUAL WITHOUT Actual EXCEPTIONAL (June,2011) ITEM (June,2010) (June,2011) Net Profit 464 678 601 (Growth % YoY) (-22.80%) (12.81%) EPS 35.43 51.77 47.63 Return on Equity 15.96 22.87 25.71 Return on 0.86 1.26 1.27 Average Assets Exceptional items inclu
Slide 17: Improved Efficiency
IMPROVED EFFICIENCY 1111 1100 1004 Productivity measured 1000 900 805 by Business per 800 664 employee increased 700 from `. 1004 lacs to `. 600 500 1111 lacs. 400 Gross Profit per 300 200 employee has 100 increased from `. 15.13 0 June 08 June 09 Jun-10 Jun-11 lacs to `.16.00 lacs. BUSINESS PER
Slide 18: Movement of NPAs
Movement of NPAs (`.in crore) June 10 Mar 11 June 11 Gross NPAs – Opening 2671 2671 3623 Add : Additions 623 2924 766 Less : Deductions 558 1972 644 1. Due to Write Off 261 1126 340 2. Due to upgradation/ Recoveries 297 846 304 Gross NPAs 2736 3623 3745 Gross Credit 124743 153022 145567 Gross NPA as
Slide 19: Capital Adequacy
Capital Adequacy • As per Basel II Capital 16.00 Adequacy Ratio is at 12.88% 13.73 14.00 12.88 as of 30th June, 2011 as 12.22 12.59 12.00 against 12.59% as of June 2010. 10.00 8.82 8.18 7.88 • Tier-I Core Capital Ratio is at 8.00 7.51 8.82% as of June 2011 6.00 5.55 4.71 4.71 • The Bank has received
Slide 20: Distribution Channels
DISTRIBUTION CHANNELS BRANCH MIX Including SERVICE OUTLETS Hong Kong branch 629 847 Jun’08 Jun’09 Jun’10 Jun’11 Branches 2373 2638 2831 3038 718 Ext. Counters 118 110 56 44 843 Service 35 43 46 45 branches Total 2526 2791 2933 3127 Semi-Urban ATMs 831 1273 1995 2673 Metro Urban Rural South North Wes
Slide 21: Shareholding Pattern (30th June, 2011)
Shareholding Pattern (30th June, 2011) 14.29 Govt. of India • Share Capital `635 crore Banks, Fis, Ins. Cos. •No. of Shares 524.33 million Others 15.84 • Net worth ` 11642 crore FIIs and Foreign Mutual Funds • B. V. per share ` 222.04 57.07 •Return on Equity: 15.96 12.8 •Market Cap (30.06.2011) : `
Slide 22: Major highlights of last quarter
Major highlights of last quarter 22
Slide 23: Awards / Accolades
Awards / Accolades The Bank has won ACI Excellence Award 2011 for their project “Customer Empowerment using ACI solution BASE 24” in the Payment Transformation catagory. ACI Worldwide is a US based company offering various Payment System Solutions. Their ATM switch software BASE24 is used by over 80
Slide 24: Financial Inclusion Initiatives
Financial Inclusion Initiatives Kashi Gomti Samyut Gramin Bank (KGSG Bank) sponsored by Union Bank of India launched its first ATM today at Varanasi on 23rd May, 2011. The ATM was inaugurated by Shri M V Nair, Chairman and Managing Director in the presence of senior officials of KGSG Bank, Union Ban
Slide 25: Awards / Accolades
The Bank was awarded Prizes Awards / Accolades under Reserve Bank Rajbhasha Shield Competition 2009-10, introduced by RBI for promotional use of Hindi in Public Sector Banks/Financial Institutions at a function held in RBI on 1st June, 2011. The Bank also bagged First Prize for linguistic region 'B'
Slide 26: Financial Inclusion Initiatives
Financial Inclusion Initiatives The bank on 23rd May, 2011 announced the launch of unioninclusions, an initiative to deepen the financial inclusion. This was announced in Mumbai by Shri Pranab Mukherjee, Hon’ble Union Finance Minister, in the presence of Shri Shashi Kant Sharma, Secretary, Departmen
Slide 27: Guidance 2011-12
Guidance 2011-12 27
Slide 28: Guidance 2011-12
Guidance 2011-12 The Bank aims for a deposits growth of approx. 17% and advances growth of 19% for 2011-12. Return on Average Assets to be 1.25% by March 2012 NIM is expected to be at 3.20% by March 2012. Gross NPAs of the Bank are expected to be around 2% by March 2012. 28
Slide 29: 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 30: Thank You
Union Ban of India of India www.unionbankofindia.co.in
Union Bank of India — Q1 FY2012 Earnings Presentation on 6ix