Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q3 FY2009 Earnings Presentation
22 slides from Union Bank Of India's earnings presentation, Dec 31, 2008
Slide 1: Presentation Financial Results 31st Dec., 2008
Presentation Financial Results 31st Dec., 2008 Q3-09 1
Slide 2: Key Financials (Q309)
KEY FINANCIALS (Q309) Business Growth 28.33% 34.28% Operating Profit Net Profit 83.84% 50.00% Net Interest Income 2
Slide 3: Increasing Shareholders' Value
INCREASING SHAREHOLDERS’ VALUE Q309 over Q308 Earning per Share has increased from Rs.28.91 to Rs. 53.20. Book Value per Share has increased from Rs.110.71 to Rs. 135.89. Return on Equity has reached a level of 39.15%, in comparison to last year’s 26.11%. Return on Average Assets has increased from
Slide 4: Improvement in Quality of Assets
IMPROVEMENT IN QUALITY OF ASSETS Gross NPAs has improved from 2.10% to 1.68%. Net NPAs has improved from 0.35% to 0.14%. NPA coverage has increased from 83.57% to 91.85%, giving strength to Bank’s Balance Sheet. Capital Adequacy Ratio is at a healthy level of 12.32% despite increase in volume of bus
Slide 5: Improved Efficiency
IMPROVED EFFICIENCY Terminal Business per employee increased from Rs. 672 lacs to Rs. 821 lacs. Gross Profit (9M) per employee has increased from Rs. 8.73 lacs to Rs. 10.67 lacs. 5
Slide 6: Market Share
MARKET SHARE PARAMETER % Growth During the Quarter SCBs UBI Aggregate Deposits 5.1 11.2 Credit 4.6 9.5 Source: RBI Weekly Statistical Supplement and Form A (Returns u / s 42) As on 02.01.09 As on 26.09.08 Our Market Share in Deposits 3.39 3.21 Our Market Share in Credit 3.39 3.24 6
Slide 7: Operating Profit (Quarterly)
Operating Profit (Quarterly) Growth 34.28% 1000 900 854 • Operating Profit of 800 636 the Bank grew by an 700 impressive 34.28% 600 500 to Rs. 854 crs, 400 supported by 300 increase in NII by 200 Rs. 376 crore, a 100 0 growth of 50.00%. DEC 07 DEC 08 OPERATING PROFIT 7
Slide 8: Consistent Positive Growth Trend
CONSISTENT POSITIVE GROWTH TREND The Bank has shown consistently positive growth trend QoQ in Operating Profit as under:- (Rs.in crore) Quarterly growth Jun’08 Sept’08 Dec’08 (Q1) (Q2) (Q3) Operating Profit 616 700 854 Growth (%) (YoY) 17.33 32.33 34.28 8
Slide 9: Provisions as on 31.12.08 (Quarterly)
Provisions as on 31.12.08(Quarterly) (Rs.in crore) Dec’07 Dec’08 (Q) (Q) Taxation 160 228 NPA 136 160 Standard Assets 16 6 Depreciation on Investment -64 -291 Others ( Frauds / Restructured 23 80 Adv.Etc.) Total 271 183 9
Slide 10: Net Profit (Quarterly)
Net Profit (Quarterly) 800 Growth 83.84% 671 • The overall improvement 700 600 in financial parameters is 500 reflected in Net Profit of 400 365 Rs. 671 crore for the 300 quarter ended Dec.08 as 200 against Rs. 365 crs in 100 corresponding period of 0 the previous year, a DEC-07 DEC-08 NET PROFIT gr
Slide 11: Net Interest Income (Quarterly)
Net Interest Income(NII) (Quarterly) 1200 1128 Growth 50.00% 1100 • Inspite of increase in cost 1000 of deposits, focus on 900 MSME, Trade and Retail 752 800 loans and resultant 700 increase in yield on 600 advances, NII moved up 500 from Rs. 752 crs to Rs. 400 300 1128 crs - a growth of DEC.07 DEC.
Slide 12: Net Interest Margin (Quarterly)
Net Interest Margin (Quarterly) 10.00 9.32 8.69 Net Interest Margin 8.00 improved to 3.22 % 6.00 5.99 6.1 for the quarter ended Dec’08 from 4.00 3.22 2.7 2.70% for the 2.00 quarter ended 0.00 Dec’07. DEC' 07 DEC' 08 Yield on Funds Cost of funds Net Interest Margin 12
Slide 13: Non-Interest Income (Quarterly)
Non-Interest Income- (Quarterly) (Rs.in crore) Dec’07 Dec’08 Growth (Q3) (Q3) % Recovery in Written off accounts 42 27 -35.71 Profit on Sale of Investments 157 98 -37.58 Other Non- Interest Income 185 267 44.32 Total 384 392 2.08 13
Slide 14: Financial Results – 31st Dec., 2008 9 month Comparisons
Financial Results – 31st Dec., 2008 9 month Comparisons 14
Slide 15: Operating Profit (Nine Months)
Operating Profit (Nine Months) Growth 28.40 % 2300 2170 • Increase in NII by 2100 Rs. 770 crs, 1900 1690 1700 and resulted in 1500 1300 Operating Profit 1100 of Rs. 2170 crs, 900 700 a growth of 500 300 28.40%. DEC 07 DEC 08 OPERATING PROFIT 15
Slide 16: Provisions As On 31.12.08 (Nine Months)
Provisions As On 31.12.08 (Nine Months) (Rs.in crore) Dec’07 Dec’08 (9 mths) (9 mths) Taxation 460 455 NPA 350 269 Standard Assets 59 87 Depreciation on Investment -80 -6 Shifting Loss 48 14 Others (Frauds / Restructured -13 90 Adv.Etc.) Total 824 909 16
Slide 17: Net Profit (Nine Months)
Net Profit (Nine Months) Growth 45.61% 1400 1261 • The overall improvement 1200 in financial parameters is 1000 866 reflected in Net Profit of 800 Rs. 1261 crs as on 31st 600 December’08 as against 400 Rs. 866 crs in the 200 previous year, an 0 impressive growth of DEC 07 DEC 08 NET PROFIT 45.61 %.
Slide 18: Net Interest Income (Nine Months)
Net Interest Income (Nine Months) Growth 35.93% 2913 3000 2700 • Segmental focus on more 2400 2143 profitable sectors has 2100 resulted in increase in 1800 1500 yield on advances and 1200 corresponding increase in 900 NII to Rs. 2913 crs from 600 Rs. 2143 crs, a growth of 300 DEC 07 DEC 08 35.93% Ne
Slide 19: Net Interest Margin (Nine Months)
Net Interest Margin (Nine Months) 10.00 8.65 8.79 Net Interest Margin 8.00 for the 9 month 6.00 5.9 5.82 ended Dec’08 is at 2.97% which is 4.00 2.75 2.97 increased from 2.75% 2.00 as of December’07. 0.00 DEC '07 DEC' 08 Yield on Funds Cost of funds Net Interest Margin 19
Slide 20: Cost to Income Ratio (9 Months)
COST TO INCOME RATIO (9 Months) Improved to 43.04% from 44.21% 44.5 44.21 44 43.5 43 43.04 42.5 42 41.5 41 DEC. O7 DEC. 08 20
Slide 21: Non-Interest Income (Nine Months)
Non-Interest Income- (Nine Months) (Rs.in crore) Dec’07 Dec’08 Growth (9 mths) (9 mths) % Recovery in W/O accounts 115 113 -1.74 Profit on sale of Investments 250 68 -72.80 Other Non- Interest Income 521 716 37.43 Total 886 897 1.24 21
Slide 22: Deposits
Deposits 99227 Total Deposits grew at 30.66% which is above the industry growth. Retail Deposits improved by 37.85% to Rs.110653 crs from Rs. 80272 crs as on Dec’07. High Cost deposits to total
Union Bank of India — Q3 FY2009 Earnings Presentation on 6ix