Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q4 FY2016 Earnings Presentation
35 slides from Union Bank Of India's earnings presentation, May 13, 2016
Slide 1: Financial Results Q4 FY 2015-16 & FY 2015-16
Financial Results Q4 FY 2015-16 & FY 2015-16 May 13, 2016
Slide 2: Table of Contents
Table of Contents #1 Story of Transformation #2 Business Performance #3 Financials 2
Slide 3: Structural Transformation
Structural Transformation 3
Slide 4: Medium Term Strategy: The HDR Framework
Structural Transformation Medium Term Strategy: The HDR (Human Resources, Digital Banking & Risk Management) Framework 4
Slide 5: Story of Transformation: Project Utkarsh
Structural Transformation Story of Transformation: Project Utkarsh 5
Slide 6: Structural Transformation
Structural Transformation 6
Slide 7: Structural Transformation: Impact
Structural Transformation: Impact Story of Transformation: Project Utkarsh 7
Slide 8: Transaction through Alternate Channels
Structural Transformation: Impact Transaction through Alternate Channels (%) 66.7 64.3 62.8 60.0 55.9 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Debit Card Base (Lakh) Internet Banking User (Lakh) Mobile Banking User 257 (Thousands) 237 246 12.8 224 12.4 211 12.0 322 11.1 11.5 277 219 167 137 Mar/15 Jun/15
Slide 9: Table of Contents
Table of Contents #1 Story of Transformation #2 Business Performance #3 Financials 9
Slide 10: Performance Highlights
Performance Highlights • Global Business increased by 7.0% to ` 620445 crore Business • CASA Share improved by 310 bps over Mar 2015. • RAM segment share in domestic advances increased to 52.4% Non Interest Income • Non Interest Income for FY16 up 3.1% to ` 3632 crore; •Net profit for FY16 stood at
Slide 11: Strong Liability Franchise
Strong Liability Franchise Parameters Mar Dec Mar Growth (%) 2015 2015 2016 (` crore) Y-o-Y Q-o-Q Total Deposits 316870 327412 342720 8.2 4.7 - Domestic 312230 321015 336086 7.6 4.7 - Overseas 4640 6397 6634 43.0 3.7 Current Deposits 21092 25149 29743 41.0 18.3 Savings Deposits 71558 75024 81133 13.
Slide 12: RAM Led Advances
RAM Led Advances Parameters Mar Dec Mar Growth (%) 2015 2015 2016 (` crore) Y-o-Y Q-o-Q Gross Advances 262757 262477 277725 5.7 5.8 - Domestic 241323 235948 251653 4.3 6.7 - Overseas 21434 26529 26072 21.6 -1.7 Retail Advances 31658 34816 36586 15.6 5.1 Agriculture 31574 36926 38962 23.4 5.5 MSME 54
Slide 13: RAM Led Advances
RAM Led Advances Advances RAM Segment RAM Share (%) in Domestic Advances 24.0 52.4 Annual Growth (%) 51.2 51.1 16.6 12.1 11.7 49.7 10.2 48.8 6.7 7.0 5.9 5.7 3.9 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 6.1 Home Loans Advances RWA to Gross Advances (%) 18.9 77.4 Vehicle L
Slide 14: Advances – Top Exposures
Advances – Top Exposures Sl. Sectors Top 10 Sectors Amount (% Share in Domestic ( ` crore) Advances) Mar Dec Mar Mar 2015 2015 2016 2016 1 Agriculture 13.1 15.6 15.5 38962 2 Retail Advances 13.1 14.7 14.5 36586 3 Infrastructure 15.9 16.1 13.6 34241 4 Trade 11.6 11.4 11.5 29017 5 NBFCs and HFCs 10.1
Slide 15: Investment
Investment Investment ` Crore 92659 89762 84866 Mar/15 Dec/15 Mar/16 (` crore) Mar-16 % to Total Duration (Years) Mar-16 Held to Maturity 58679 65.37 4.07 Held for Trading 269 0.30 5.43 Available for Sale 30814 34.33 5.70 Total Investment 89762 100.00 4.45 • 90.7% of AFS & HFT portfolio is interest
Slide 16: Rising Overseas Profile
Rising Overseas Profile Opened its 4th overseas branch in Sydney, Australia Business from Overseas Branches Mar-15 Dec-15 Mar-16* Growth (%) YoY- Already has three US $ US$ (` crore) Overseas branches at Hong Kong, DIFC (Dubai) & Business 4.2 5.0 4.9 18.2 Antwerp (Belgium) billion billion billion (2
Slide 17: Statement of Assets & Liabilities
Statement of Assets & Liabilities (` crore) As at As at As at Growth (%) 31.03.15 31.12.15 31.03.16 Y-o-Y Q-o-Q LIABILITIES Capital 636 687 687 8.0 0.0 Reserves and surplus 19125 21387 22204 16.1 3.8 Deposits 316870 327412 342720 8.2 4.7 Borrowings 35360 32466 30958 -12.4 -4.6 Other Liabilities and
Slide 18: Table of Contents
Table of Contents #1 Story of Transformation #2 Business Performance #3 Financials 18
Slide 19: Cost & Yield Ratio
Cost & Yield Ratio Parameters Mar-15 Dec-15 Mar-16 FY 15 FY16 (%) (Q4) (Q3) (Q4) Domestic Global Domestic Global Domestic Global Domestic Global Domestic Global Cost of Deposit 7.38 7.28 7.03 6.94 6.86 6.75 7.40 7.31 7.10 7.00 Cost of Funds 6.74 6.44 6.44 6.14 6.22 5.98 6.82 6.54 6.48 6.21 Yield on
Slide 20: Non-Interest Income
Non-Interest Income (` crore) Parameters Mar-15 Dec-15 Mar-16 Growth (%) Growth (%) FY 15 FY 16 Growth (Q4) (Q3) (Q4) Y/Y Q/Q (%) a. Core Non Interest Income 630 437 551 -12.5 26.0 1872 1879 0.4 b. Treasury Income 433 421 390 -9.9 -7.3 1334 1567 17.5 W/w •Profit on Sale 283 257 206 -27.2 -19.7 709 9
Slide 21: Operating Profit
Operating Profit (` crore) Mar-15 Dec-15 Mar-16 Growth (%) Growth (%) FY15 FY16 Growth Y/Y Q/Q (%)-Y/Y Parameters Interest Income 8241 7910 7888 -4.3 -0.3 32084 32199 0.4 Interest 6119 5913 5803 -5.2 -1.9 23640 23885 1.0 Expenditure Net Interest 2122 1997 2085 -1.7 4.4 8444 8314 -1.5 Income Non Inte
Slide 22: Provisions
Provisions (` crore) Parameters Mar-15 Dec-15 Mar-16 FY15 FY16 (Q4) (Q3) (Q4) NPAs 833 1243 2008 2537 4655 Standard Assets 146 -17 -63 240 -101 Depreciation on Investment 47 21 42 -38 149 Shifting Loss 0 0 0 39 6 Restructured Advances -83 -6 -305 127 -623 Others (FITL etc) 67 -4 -118 135 -209 Taxati
Slide 23: Net Profit
Net Profit ` crore Quarter Full Year 1782 443 1352 97 78 Mar/15 Dec/15 Mar/16 FY 2014-15 FY 2015-16 23
Slide 24: Efficiency/ Profitability Ratios
Efficiency/ Profitability Ratios Sl. Efficiency Parameters Mar-15 Dec-15 Mar-16 FY 15 FY 16 (Q4) (Q3) (Q4) 1 Return on Avg. Assets (%) 0.47 0.08 0.10 0.49 0.35 2 Return on Equity (%) 9.70 1.53 1.95 9.73 6.84 3 Cost to Income Ratio (%) 49.38 53.82 54.25 51.34 52.10 4 Book Value Per Share (`) 287.93 2
Slide 25: Asset Quality
Asset Quality (` crore) Parameters Mar-15 Dec-15 Mar-16 FY 15 FY 16 (Q4) (Q3) (Q4) Gross NPAs - Opening 12596 15541 18495 9564 13031 Add : Additions 1547 3409 6170 6527 12952 Less : Reductions 1112 455 494 3060 1812 1. Recoveries 550 77 204 1537 844 2. Upgradation 317 119 191 592 178 3. Write Off 24
Slide 26: Asset Quality: Sectoral
Asset Quality: Sectoral (` crore) Sectors Slippages NPAs % to Total % to Sector Loan During Q4 March NPAs Mar Sep Dec Mar FY 16 2016 2015 2015 2015 2016 Agriculture 297 2031 8.40 5.08 4.75 4.81 5.21 Micro & 466 3430 14.19 6.09 6.90 7.44 7.79 Small (MSE) Retail Loans 209 929 3.84 1.96 2.76 2.79 2.54
Slide 27: Restructured Assets
Restructured Assets (` crore) Mar-16 (Q4) FY 2015-16 Particulars Standard NPA Total Standard NPA Total Restructured Assets as on (January 1, 2016/April 1, 2015) 13617 7300 20917 13658 4470 18128 Fresh Restructuring during the (Quarter/ Year) 109 572 681 1296 675 1971 Upgradation to Restructured Acco
Slide 28: Sector wise Standard Restructured Accounts
Sector wise Standard Restructured Accounts (` crore) Sector Amt. % to Standard Restructured 1 Infrastructure 3800 44.3 a. Power 2870 33.5 w/w SEBs 1311 15.3 2 Engineering 951 11.1 3 Iron & Steel 498 5.8 4 Textiles 474 5.5 5 Hotel 427 5.0 Amt % to Standard % to Gross Restructured Advances Loans Outst
Slide 29: Basel III: Capital Adequacy
Basel III: Capital Adequacy 10.30 10.56 10.22 10.14 10.26 8.14 7.50 7.46 7.67 7.45 CRAR Tier I Tier II 2.72 2.68 2.60 2.85 2.42 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 (` crore) Mar 2015 Jun 2015 Sep 2015 Dec 2015 Mar 2016 Risk Weighted Assets 253162 254537 260508 258677 273791 Capital Funds 25885 25805
Slide 30: Shareholding Details
Shareholding Details • Share Capital `687.4 crore •No. of Equity Shares: 68.7 crore • Net worth: ` 19764 crore • Book Value per share ` 287.5 •Return on Equity 6.84% •Market Cap ` 8992 crore Shareholding Pattern (%) 60.47% 63.44% Mar/15 Dec/15 Mar/16 63.44% 18.27% 8.58% 18.04% 12.68% 8.49% 10.03% 8.
Slide 31: 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 32: 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 March 31, 2016 58.2 Lakh Deposits ` 858 Crore RuPay Cards issued 55.3 Lakh Aadhar Seeding 17.4 Lakh Progre
Slide 33: Awards & Recognition
Awards & Recognition 1st Best Corporate Vigilance Excellence Award (2015-16) in corporate category in 7th Conclave of Vigilance Officers Golden Peacock Award for excellence in HR practice in 10th International Conference on Corporate Social Responsibility. Skoch Financial Inclusion and Deepening Awa
Slide 34: 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 35: Investor queries
Investor queries: investor.relations@unionbankofindia.com
Union Bank of India — Q4 FY2016 Earnings Presentation on 6ix