Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — H1 FY09 Earnings Presentation
37 slides from Union Bank Of India's earnings presentation, September 2008
Slide 1: Presentation Financial Results Sept 2008 HY 08-09
YY Union Bank of India Presentation Financial Results 30% Sept., 2008 HY 08-09
Slide 2: Performance Highlights Q2 FY09
)) Union Ban an nk Performance Highlights Q2 FY 09 aTotal Business Rs. 202488cr. —@ 23.92% yoy OCore Deposits Rs. 96687cr 26.12% yoy O Gross Advances Rs. 86549cr @& 26.17% yoy ON.LI. Rs. 975c. 48.63% yoy ON.I.M. a 3.01% O Gross NPAs sa 1.93% a Net NPAs a 0.14%
Slide 3: Performance Highlights Half Year ended 30.09.2008
Performance Highlights Half Year ended 30.09.2008 Return on Average Assets (%) Earning per Share (EPS)(in Rs) Book Value per Share (in Rs) Return on Equity (ROE) (%) Capital Adequacy Ratio (CAR) Gross NPAs (%) Net NPAs (%) NPA Coverage (%) 1.05 21.84 103.56 21.09 55 2.42 0.65 73.69 1.12 28.62 122.80
Slide 4: Operating Profits (Quarterly)
YY Union Bank of India Growth — 32.339 a0 700 - 529 - a 600 - SEPT 07 SEPT 08 | OPERATING PROFIT Operating Profits (Quarterly) * Operating Profit of the Bank grew by an impressive 32.33% to Rs. 700 crs, _ fuelled by increase in NIl by Rs.319 crs (QoQ), a growth of 48.63%
Slide 5: Provisions As On 30.9.08 (Quarterly)
YY Union Bank of India Provisions As On 30.9.08(Quarterly) (Rs.in crore) Sept’07 Sept’08 (Q2) (Q2) Taxation 155 135 NPA (excluding adhoc provision for 86 160 Standard Assets) Standard Assets 43 80 Depreciation on Investment 4 -54 Others ( Frauds/ Restructured -35 17 Adv.Etc.) Total 253 338 on
Slide 6: Net Profits (Quarterly)
YY Union Bank of India Net Profits (Quarterly) 400- 362 350. ¢The overall improvement wo) in financial parameters is 250, reflected in Net Profit of ane: Rs 362 crs as on 30% bad September’08 as against baal Rs.276 crs in the previous . year, a growth of 31.16%. SEPT 07 SEPT 08 |SNET PROFIT
Slide 7: Net Interest Income (Quarterly)
Union Bank of India Growth — 48.63% 656 Lo SEPT 07 SEPT 08 | Net Interest Income Net Interest Income(NII) (Qty) 975 ¢ NIl moved up from 656 crs to Rs 975 crs recording impressive growth of 48.63%. Improvement of NIM from 2.49% as on 30 Sept’07 to 3.01% as on 30 Sept’08 resulted in impressive growth
Slide 8: Net Interest Margin (Quarterly)
YY Union Bank of India Net Interest Margin (Qty) * Yield on funds stood at 8.75% compared to 8.51% as on Sept.’07. * Cost of Funds stood at 5.74% compared to 6.02% as on Sept’07. « Net Interest Margin is 3.01% as against 2.49% on Sept’07. SEPT 07 SEPT 08 5 Yield on Funds m Cost of funds & Net Intere
Slide 9: Non-Interest Income (Quarterly)
Union Bank of India UU) Non-Interest Income- (Qty) (Rs.in crore) Sept’07 — Sept’08 Growth (Q2) (Q2) % Recovery in Write off Accounts 53 64 20.75 Profit on Sale of Investments 60 -38 -ve Other Non - Interest Income 175 257 46.86 Total 288 283 -1.74
Slide 10: Financial Results Sept 2008 Half-Year Comparisons
Financial Results — 30 Sept., 2008 PE ij Half-Year Comparisons
Slide 11: Operating Profits (HY)
Operating Profits (HY) 1316 1054 «Increase in WNIl_ by Rs. 395 crs, a growth of 28.42% resulted in Operating Profit of Rs.1316 crs, a robust growth of 24.86% for the half year ended Sept’08. SEPT 07 SEPT 08 | m@ OPERATING PROFIT 1
Slide 12: Provisions (HY)
YY Union Bank of India Provisions As On 30.9.07(HY) (Rs.in crore) Sept’07 Sept’08 (HY) (HY) Taxation 300 227 NPA (excluding adhoc provision for 214 109 Standard Assets) Standard Assets 43 81 Shifting Loss 47 12 Depreciation on Investment -16 285 Others (Frauds / Restructured -35 12 Adv.Etc.) Total 5
Slide 13: Net Profits (HY)
Net Profits (HY) 590 A Preis Growth — 17.76% / ¢The overall improvement in financial parameters is reflected in Net Profit of Rs 590 crs as on 30% September’08 as against Rs. 501 crs in the previous year, a growth of 17.76%. SEPT 07 SEPT 08 {NET PROFIT 13
Slide 14: Net Interest Income (HY)
YY Union Bank of India Net Interest Income(NII)-(HY) we 1390 ¢ Nil improved to Rs.1785 crs as on 30th Sept’08 from Rs.1390 crs in the previous year, a growth of 28.42%. Growth in NIM to 2.83% as of 30% Sept’08 from 2.75% in the previous’ year resulted in improvement in SEPT 07 . SEPT 08 Nil. Net Int
Slide 15: Net Interest Margin (HY)
Net Interest Margin- (HY) 8.53 8.50 * Yield on funds stood at 8.50% compared _ to 8.53% as on Sept.’07. « Cost of Funds stood at 5.67% compared _ to 5.78% as on Sept’07. * Net Interest Margin is 2.83% as against 2.75% on Sept’07. SEPT 07 SEPT 08 © Yield on Funds = Cost of funds = Net Interest Margin
Slide 16: Non-Interest Income (HY)
Union Bank of India UU) Non-Interest Income- (HY) (Rs.in crore) Sept’07 Sept’08 Growth (H1) (H1) % Recovery in Write off Accounts 73 87 19.18 Profit on Sale of Investments 93 -30 -ve Other Non - Interest Income 337 448 32.94 Total 503 505 0.40 16
Slide 17: Deposits
Deposits 120000 « Total deposits grew by 22.29% to Rs 115939 as of Sept’08. 100000. 30000 60000 * Retail deposits of the Bank grew by Rs. 20024 crs at a growth rate of 26.12% YoY. 40000 - 20000 SEPT 07 SEPT 08 STOTAL DEPOSITS RETAIL DEPOSITS
Slide 18: CASA Deposits
YY Union Bank CASA Deposits (Rs.in crore) Sept ’07 Sept’08 % Growth Current Deposits 9126 11905 30.45 Savings Deposits 21690 26467 22.02 Demand Deposits 30816 38372 24.52 (CASA) | = | % to total deposits 32.50 33.10 Cost of Deposits(%) 6.06% 6.16% UO) CASA deposits have shown growth of 24.52% YoY .
Slide 19: Advances
YY Union Bank of India sess Advances = * Bank registered growth of ee sases ial 26.17% YoY in advances. Sal Emphasis was on qualitative shift in credit portfolio resulting in impressive improvement in yield on advances by 51 bps to 000 -- Ad mmm —<e— yield Adi 10.66%. (Rs. in Crore) Sept'07 Sept’08
Slide 20: Investments
UU) Union Bank of India 31684 « Growth in Investments investments and yield on investments were in line with market | trends. SEPT 07 SEPT0S ‘Gu lnvestments —— Yield on Inv | (Rs. In crore) Sept-07 % Sept-08 % Held to Maturity 66.23 23113 66.66 Held for Trading 0.30 61 0.18 Available for Sale 33.47
Slide 21: Investment Duration
UU) Union Bank of India Sept-07 | Sept-08 HTM 440 ~—~—ts«4 AFS 2.68 2.16 HFT 4.26 6.25 Total § 3.69 3.51 Investment Duration 21
Slide 22: Cost to Income Ratio
50 | _ = 42.55 40 177 bps reduction in last one yr 30 | SEPT 07 SEPT 08 -- Cost to Income ratio Cost to Income ratio LJ The Cost to Income ratio which reflects the operating efficiency of the bank was at 42.55% and is one of the lowest among peer banks.
Slide 23: NPA Management
YY Union Bank of India NPA Management 3.5 — 3.28 1.4 34 12 | 25 2.42 1 | 24 a 2 coal ar a | 15 06 | T | 14 } 0.4 a 05 Ca TS a = wee 110 bps reduction in last 2 yrs a 135 bps reduction in last 2 yrs SEPT 06 SEPT 07 SEPT 08 SEPT 06 SEPT 07 SEPT 08 [~*~GROSS NPA % | [-HhHET NPA AS % | L) Net NPA% of th
Slide 24: NPA Management
)) Union Bank NPA Management = 08 Gross NPAs - Opening 1873 1657 Add: Additions 404 431 Less : Deductions 618 413 1. Due to Write Off 267 47 2. Due to upgradation 70 95 3. Due to Recoveries 281 271 Gross NPAs 1659 1675 Gross Credit 68595 86549 Gross NPA as a % age of GBC 2.42 1.93 “Net NPA 437 116 N
Slide 25: Earning Ratios
Earning Ratios* ® ReturnonAvg. Assets (%) ® Returnon Equity (NP/NW %) « Earning Per Share (Rs.) « Book Value Per Share (Rs.) * Annualised 2
Slide 26: Key Ratios - Earnings
YY Union Bank of India Key Ratios -Earnings « Cost of Deposits 6.41 6.25 * Yieldon Advances 10.26 11.16 @ Yieldon Investments 7.08 7.52 @ Non-interest Income to Total Income 11.37 9.09 « Cost of Funds 6.02 5.74 * Yieldon Funds 8.51 8.75 * Net Interest Margin 2.49 3.01 26
Slide 27: Key Ratios - Efficiency
YY Union Bank of India Key Ratios - Efficiency Efficiency Ratios * Costto Income Ratio 43.96 44.40 « Operating Exp. To AWF 1.58 173 27
Slide 28: Key Ratios - Productivity
YY Union Bank of India Key Ratios - Productivity Productivity Ratios (Rs. In lacs) « Avg. Business per 570 669 Employee « Avg. Business per Branch 6490 7294 * Net Profit per Employee 3.87 4.45 « Net Profit per Branch 44.07 48.52 « Gross Profit per Employee 8.14 0.93 * Gross Profit per Branch 92.70 1
Slide 29: Capital Adequacy
(YY Union Bank of India Capital Adequacy 12.53 U Capital Adequacy Ratio increased i ; ; from 11.55% as on 30 Sept, 2007 to 12.53% as on 30 Sept, 2008. UJ Tier-I capital funds have increased by 24.81% from Rs.5531 crore as on Sept, 2007 to Rs. 6903 crore as on Sept, 2008 mainly due to plough back of
Slide 30: Shareholding Pattern (30 Sept, 2008)
YY Union Bank of India Shareholding Pattern (30 Sept, 2008) m 19.31 @ Govt. of India () Banks, Fis, Ins. Cos. ® Others m13.41 @ FUs and Foreign Mutual Funds gf 55.43 SEPT-07 SEPT-08 GOVT. | 55.43% 55.43% Fils & FMFs 19.64% | 19.31% BANKS, INST./ 11.46% 11.85% MUTUAL FUNDS | OTHERS 13.47% | 13.41% 30
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Slide 32: Major Highlights Q2-09
(YY Union Bank of India Major Highlights Q2-09 ) The Bank unveiled its new blue and red logo on 1* September, 2008. The rebranding initiative has been undertaken with one objective in mind: to maximise customer convenience and satisfaction. U) The Bank launched “Wealth Management” services to its HN
Slide 33: Major Highlights Q2-09
Major Highlights Q2-09 ODue to adoption of technology, transactions through electronic mode moved up from 6% to 13.6% of the total transactions of the bank in the last 6 months and is expected to touch 25% by March 2009. This is expected to significantly bring down the transaction costs. O Bank form
Slide 34: Road Ahead
ROAD AHEAD 34
Slide 35: Business mix target and growth strategy for March 2009
QO) The Bank aims to reach a business mix of Rs 220000 crore by the end of March 2009, a growth of approx. 22%. Of this, Rs 127500 crore will be Deposits (growth of 23%YoY) and Rs 92500 crore will be Advances (growth of 22% YoY). QO) Bank will continue to focus on a four-pronged strategy for growth.
Slide 36: Disclaimer
(YY Union Bank of India 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
Slide 37: Dream Big
DREAM BIG