Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q2 FY2016-17 Earnings Presentation
42 slides from Union Bank Of India's earnings presentation, Nov 4, 2016
Slide 1: Financial Results Q2 & H1 FY 2016-17
Financial Results Q2 & H1 FY 2016-17 November 4, 2016
Slide 2: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 Structural Transformation #4 Awards & Accolades 2
Slide 3: Snapshot as on September 30, 2016
Snapshot as on September 30, 2016 Total Business ` 639822 crore Gross Advances ` 278368 crore Total Deposits ` 361454 crore Net Profit (Q2FY17) ` 177 crore Net Profit (H1FY17) ` 343 crore Earning Per Share (H1FY17) ` 10 ROA (%)(H1FY17) 0.17 ROE (%)(H1FY17) 3.46 Net NPA Ratio 6.39 Basel III Tier I CA
Slide 4: Strong Liability Franchise
Strong Liability Franchise Total Deposits ` crore CASA Portfolio ` crore 110876 114011 20.8% YOY 361454 106604 94413 6693 342720 Share of 338727 High Cost 6634 81133 90551 23.4% YOY 330665 4189 Deposit 82130 73367 5699 354761 336086 334538 1% 324966 11.5% YOY 21046 29743 24474 23460 Sep-15 Mar-16 Ju
Slide 5: Strong Liability Franchise: Savings Deposit Growth and Cost of Deposit
Strong Liability Franchise Movement in savings deposit growth and Cost of Deposit 25.0 7.4 7.3 7.2 23.4 7.2 7.1 20.0 6.9 7.0 15.0 6.8 15.3 6.8 13.4 6.6 10.0 6.5 6.5 10.6 10.3 9.9 8.9 6.4 5.0 6.2 0.0 6.0 Jun-15 Dec-15 Jun-16 Mar-15 Mar-16 Sep-15 Sep-16 Savings growth rate (YoY) Cost of deposit (%) 5
Slide 6: Diversified Loan Portfolio
Diversified Loan Portfolio Gross Advances ` crore 277725 268553 278368 254022 26072 25618 26480 24683 229339 251653 242935 251888 Sep-15 Mar-16 Jun-16 Sep-16 Domestic Overseas Retail Advances ` crore Agriculture ` crore MSME ` crore 22.4% YOY 15.5% YOY 13.8% YOY 38847 55524 55349 58268 37242 41159 4
Slide 7: Diversified Loan Portfolio
Diversified Loan Portfolio Annual Growth (%) RAM* share (%) in Domestic advances 3.9 54.9 Sep-15 10.2 54.2 5.9 Dec-15 7 5.7 Advances 52.0 Mar-16 11.7 RAM segment 51.2 5.1 Jun-16 14.3 9.6 Sep-16 17.8 Sep-15 Mar-16 Jun-16 Sep-16 Sep-15 Sep-16 3.4 3.8 2.6 2.0 Home Home 17.8 Vehicle 19.0 Vehicle Educati
Slide 8: Diversified Loan Portfolio
Diversified Loan Portfolio S No. Sectors Top 10 Sectors Amount (% Share in Domestic Advances) (` crore) Sep Mar Jun Sep Sep 2015 2016 2016 2016 2016 1 Agriculture 15.8 15.5 16.1 16.3 41159 2 Retail Advances 14.6 14.5 15.3 15.4 38847 3 Infrastructure 16.5 13.6 14.3 14.5 36514 4 Trade 10.6 11.5 11.4 1
Slide 9: Investments
Investments Investment in (`) Crore 119533 104898 102647 89762 Sep-15 Mar-16 Jun-16 Sep-16 (` crore) Sep % to Total Duration Investment Composition (%) 2016 Investment (Years) Sep-16 Held to Maturity 78833 66.0 3.9 33.8% Held to Maturity Held for Trading 270 0.2 7.3 66.0% Held for Trading Available
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 ` 33173 crore as on Sep-201
Slide 11: Statement of Assets & Liabilities
Statement of Assets & Liabilities (` crore) As at As at As at As at Growth (%) 30.09.15 31.03.16 30.06.16 30.09.16 Y-o-Y Q-o-Q LIABILITIES Capital 687 687 687 687 0.0 0.0 Reserves and surplus 21316 22204 22502 22755 6.8 1.1 Deposits 330665 342720 338727 361454 9.3 6.7 Borrowings 32493 30958 33549 37
Slide 12: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 Structural Transformation #4 Awards & Accolades 12
Slide 13: Cost & Yield Ratio
Cost & Yield Ratio Parameters Sep-15 Jun-16 Sep-16 H1 FY 2016 H1 FY 2017 (Q2) (Q4) (Q2) Domestic Global Domestic Global Domestic Global Domestic Global Domestic Global Cost of Deposit 7.19 7.09 6.54 6.46 6.55 6.47 7.25 7.15 6.54 6.47 Cost of Funds 6.53 6.25 6.07 5.82 5.78 5.58 6.62 6.36 5.92 5.69 Yi
Slide 14: Movement of NIM & NII
Movement of NIM & NII 2.34 2.32 2.28 2.30 2.44 2.40 2.36 2.42 2.46 2.36 2.43 2.29 Sep-15 Mar-16 Jun-16 Sep-16 H1 FY 2016 H1 FY 2017 NIM Domestic NIM Global NIM Domestic NIM Global (` crore) (` crore) 2277 4380 2102 2085 2103 4232 Sep-15 Mar-16 Jun-16 Sep-16 H1 FY 16 H1 FY 17 Net Interest Income Net
Slide 15: Non-Interest Income
Non-Interest Income (` crore) Parameters Sep-15 Mar-16 Jun-16 Sep-16 Growth Growth H1 FY H1 FY Growth (Q1) (Q4) (Q1) (Q2) (%) Y/Y (%) Q/Q 2016 2017 (%) a. Core Non Interest 469 551 457 498 6.0 9.0 891 955 7.2 Income b. Treasury Income 435 390 547 598 37.6 9.3 756 1145 51.5 W/w Profit on Sale of 25
Slide 16: Profitability
Profitability (` crore) (` crore) 1820 3445 1626 1490 1410 2978 Sep-15 Mar-16 Jun-16 Sep-16 H1FY 16 H1FY 17 Operating Profit Operating Profit 16
Slide 17: Provisions
Provisions (` crore) Parameters Sep-15 Mar-16 Jun-16 Sep-16 H1 FY H1 FY (Q1) (Q4) (Q1) (Q2) 2016 2017 NPAs 924 2008 1347 1598 1404 2945 Standard Assets 2 -63 54 124 -20 179 Depreciation on Investment -113 42 -42 -12 86 -54 Shifting Loss 0 0 2 0 6 2 Restructured Advances -320 -305 -11 -1 -312 -13 Oth
Slide 18: Net Profit
Net Profit (` crore) (` crore) 658 1177 177 166 343 97 Sep-15 Mar-16 Jun-16 Sep-16 H1FY 16 H1FY 17 18
Slide 19: Efficiency/Profitability Ratios
Efficiency/Profitability Ratios Return on Avg. Assets (%) Cost to Income(%) 0.68 54.25 0.61 51.32 0.17 0.17 0.17 50.15 48.28 47.48 0.10 46.75 Sep-15 Mar-16 Jun-16 Sep-16 H1 FY H1 FY Sep-15 Mar-16 Jun-16 Sep-16 H1 FY H1 FY (Q1) (Q4) (Q1) (Q2) 16 17 (Q1) (Q4) (Q1) (Q2) 16 17 S. No. Efficiency Paramete
Slide 20: Efficiency Ratios
Efficiency Ratios Sn. Profitability Parameters Sep-15 Mar-16 Jun-16 Sep-16 H1 FY H1 FY (Q1) (Q4) (Q1) (Q2) 16 17 1 Business per ` crore 142.7 147.7 144.5 145.7 142.7 145.7 Branch 2 Business per ` crore 16.2 17.5 16.3 17.0 16.2 17.0 employee 3 Gross Profit per ` crore 1.45 1.34 1.5 1.7 1.5 1.6 Branch
Slide 21: Asset Quality: Movement in Non Performing Assets
Asset Quality: Movement in Non Performing Assets (` crore) Parameters Sep-15 Mar-16 Jun-16 Sep-16 H1 FY H1 FY (Q1) (Q4) (Q1) (Q2) 16 17 Gross NPAs - Opening 14144 18495 24171 27281 13031 24171 Add : Additions 1931 6170 3603 3396 3439 6999 Less : Reductions 534 494 493 815 929 1308 1. Recoveries 205
Slide 22: Positive Movement in Slippages & Recovery
Positive Movement in Slippages & Recovery (` crore) 800 7000 6170 700 6000 667 600 5000 491 500 4000 3409 400 3603 395 3396 3000 300 264 2000 200 1931 196 100 1000 0 0 Sep-15 (Q2) Dec-15 (Q3) Sep-16 (Q2) Jun-16 (Q1) Mar-16 (Q4) Cash Recovery & Upgradation Slippages 22
Slide 23: Asset Quality: Sectoral
Asset Quality: Sectoral (` crore) Sectors Slippages NPAs Sep % to Total % to Sector Loan During Q2 2016 NPAs FY 17 Sep Mar Jun Sep 2015 2016 2016 2016 Retail Loans 211 1203 4.0 2.76 2.54 2.93 3.10 Agriculture 157 2104 7.1 4.75 5.21 5.31 5.11 Micro & Small (MSE) 530 3953 13.2 6.9 7.79 8.15 8.50 Mediu
Slide 24: Restructured Assets
Restructured Assets (` crore) Sep-16 (Q2) Particulars Standard NPA Total Restructured Assets as on July 01, 2016 7247 9531 16778 Fresh Restructuring during the Quarter 0 0 0 Upgradation to Standard Restructured Accounts during the Quarter 23 -23 0 Restructured Standard Advances which cease to attrac
Slide 25: Stress Mostly Recognized
Stress Mostly Recognized (` crore) S.N. Sector Amt. % to Standard Restructured 1 Infrastructure 1949 34.6 a. Power 1153 20.5 b. Roads 750 13.3 2 Engineering 998 17.7 3 Textiles 494 8.8 4 Hotel 441 7.8 5 Iron & Steel 292 5.2 Sectors 5/25 SDR S4A During Q2 Total Outstanding During Q2 Total Outstanding
Slide 26: Basel III: Capital Adequacy
Basel III : Capital Adequacy (` crore) Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Risk Weighted Assets 260508 258677 273791 267176 281316 Capital Funds 26740 26632 28932 28717 31469 CRAR-BASEL III ( % ) 10.26 10.3 10.56 10.75 11.19 TIER 1 7.67 7.70 8.14 8.39 8.56 CET Ratio (%) 7.42 7.45 7.95 8.24 8.06 Capit
Slide 27: Shareholding Pattern
Shareholding Pattern Share Capital ` 687.4 crore Shareholding Pattern (%) No. of Equity Shares 68.74 crore Net Worth ` 19836 crore Public & others 11.17% Market Cap ` 9441 crore DIIs 19.58% Govt. of India 63.44% The GOI has decided to infuse Capital of ` 721 crore in the Bank During the current Fina
Slide 28: Extensive & specialized distribution network focused on business segments
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
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 September 30, 2016 60.35 Lakh Deposits ` 974.98 Crore RuPay Cards issued 53.96 Lakh Aadhar Seeding 28.09 L
Slide 30: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 Structural Transformation #4 Awards & Accolades 30
Slide 31: Structural Transformation
Structural Transformation Building Capabilities for Tomorrow 6 prioritized initiatives Key objectives 1 Union- Xperience 6 2 ▪ Provide better Business customer experience analytics ULP 5 key objectives ▪ Increase cross-sell ▪ Achieve higher sales productivity ▪ Improve performance of alternate/digit
Slide 32: Structural Transformation
Structural Transformation • Frontline lead/ referral generation through service 2 sales • Single window each for cash and non cash process Union1 • Improved sales efficiency through catchment planning Experience • Migration to alternate channels • Ensured efficient interaction between ULP and branch
Slide 33: Structural Transformation
Structural Transformation • Customer engagement through user friendly digital channels • Continue to invest in Digital product and platforms along with evaluating innovative partnerships and models Digitization • Induct specialized talent in senior and mid-senior level across departments & verticals
Slide 34: Structural Transformation: Impact
Structural Transformation: Impact Impact1: Regional execution Metric Baseline2 Latest3 Growth CASA Productivity 2.25 3.47 54% (CASA account acquisition/branch/day) Retail Loans sanctioned per month (`crore/region/month) 23.1 30.0 30% Loans processed by SARAL per month, (`crore/region/month) 176.3 25
Slide 35: Structural Transformation: Impact
Structural Transformation: Impact Impact1: Automation Metric Baseline2 Latest3 Growth ATM cash withdrawals <25K (number) 78.6 92.0 17% as % to total cash withdrawals Cash deposits in CDM <50K (number) 50.6 63.6 26% as % to total cash deposits Improvement in SSPB4 53.6 61.6 15% hits/machine/day 1. Re
Slide 36: Structural Transformation: Digitization
Structural Transformation: Digitization 36
Slide 37: Structural Transformation: Impact
Structural Transformation: Impact Transaction through Alternate Channels Mobile Banking Transactions (In Lacs) (%) 121 67 67 67 104 64 97 63 60 56 43 Mar-15 Dec-15 Mar-16 Sep-15 Sep-16 Jun-15 Jun-16 Sep-15 Mar-16 Jun-16 Sep-16 Debit Card (lacs) Internet Banking (lacs) Mobile Banking Users (thousands
Slide 38: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 Structural Transformation #4 Awards & Accolades 38
Slide 39: Awards
Awards Innovative HR practices recognition by Times ascent The Bank was recognized under Top 50 PSU Organization with Innovative HR Practices Technology award by Institute for Development & Research in Banking Best Bank Award for the Use of technology for Financial Inclusion among large banks by Ins
Slide 40: Brand Value
Brand Value Union Bank was ranked 36th with a Brand value of `20.72 bn in the current year edition of Best Indian Brands published by Brand Equity (The Economic Times) 40
Slide 41: 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 42: Investor queries: investor.relations@unionbankofindia.com
Investor queries: investor.relations@unionbankofindia.com
Union Bank of India — Q2 FY2016-17 Earnings Presentation on 6ix