Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q2 FY18 Earnings Presentation
38 slides from Union Bank Of India's earnings presentation, Nov 3, 2017
Slide 1: Financial Results Q2/FY18 & H1/FY18
Financial Results Q2/FY18 & H1/FY18 Please follow us on: November 03, 2017 @unionbankofficial @UnionBank Tweets UnionBankInsta UnionBankofIndiaUtube UnionBankofIndia
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, 2017
Snapshot as on September 30, 2017 Total Business ` 695978 crore Gross Advances ` 309953 crore Total Deposits ` 386025 crore Operating Profit ` 1939 crore Net NPA Ratio 6.70 % Basel III Tier I CAR 8.50 % Basel III Total CAR 11.22 % Branches 4295 ATMs 7674 3
Slide 4: Strong Liability Franchise
Strong Liability Franchise Total Deposits CASA Portfolio ` crore 6.8% YOY 13.7% YOY 386025 378391 375796 130308 133412 129588 6994 114011 6616 6246 361454 6693 379031 90551 104072 104761 107522 18.8 % YOY 371775 369550 354761 23460 26236 28651 22066 Sep-16 Mar-17 Jun-17 Sep-17 Sep-16 Mar-17 Jun-17 S
Slide 5: Strong Liability Franchise: Savings Deposit growth and Cost of Deposit
Strong Liability Franchise Movement in Savings Deposit growth and Cost of Deposit 46.8 28.3 27.6 23.4 25.0 18.8 15.3 13.4 7.1 6.9 10.3 6.8 8.9 6.5 6.5 6.3 5.9 5.8 5.7 5.0 5.0 Dec-15 Dec-16 Jun-16 Jun-17 Mar-17 Sep-15 Mar-16 Sep-16 Sep-17 Savings Deposit growth rate (YoY) Cost of deposit (%) 5
Slide 6: Diversified Loan Portfolio
Diversified Loan Portfolio Gross Advances (` crore) 301684 295175 309953 11.4 % YOY 278368 251888 272238 265683 277015 26480 29446 29492 32938 Sep-16 Mar-17 Jun-17 Sep-17 Domestic Advances Overseas advances Gross advances Retail Agriculture MSME 6.8% YOY 22.5% YOY 4.3% YOY 44124 44092 44739 42909 62
Slide 7: Diversified Loan Portfolio
Diversified Loan Portfolio RAM* share (%) in Domestic advances 54.0 55.4 54.1 53.8 Sep-16 Mar-17 Jun-17 Sep-17 Composition of Advances Retail Agriculture MSME 19.2 Home 3.1 Vehicle 40.6 30.6 Industry Education 8.3 53.9 59.4 Services LAP 69.4 Personal 7.2 Others 8.2 SMF Other Agri *Retail, Agricultur
Slide 8: Diversified Loan Portfolio: Top Sectors
Diversified Loan Portfolio Top 10 Sectors S No. Sectors (% Share in Domestic Advance) Sep Dec Mar Jun Sep-17 2016 2016 2017 2017 ` Crore % Share 1 Infrastructure* 18.1 18.2 17.5 18.2 48234 17.4 2 Retail Advances 14.5 14.7 14.6 15.9 44739 16.2 3 Agriculture 16.4 16.3 16.2 16.6 42909 15.5 4 Trade 12.3
Slide 9: Investments
Investments Investment (` Crore) 129343 122228 119533 113332 Sep-16 Mar-17 Jun-17 Sep-17 (` crore) Sep Duration Investment Composition (%) 2017 (Years) Held to Maturity 78397 4.2 39% Held to Maturity 60% Held for Trading 999 8.2 Held for Trading Available for Sale Available for 1% 49947 4.4 Sale Tot
Slide 10: Overseas Operations
Overseas Operations Business from Overseas Operations US $ in billion Sep Mar Sep Growth (%) (` crore) 2016# 2017 2017* Y-o-Y Y-o-Y (US$) (INR) 5.0 5.6 6.1 Total Business 22.0 20.4 (33173) (36062) (39932) 1.0 1.0 1.1 Total Deposits 10.0 4.5 (6693) (6616) (6994) 4.0 4.6 5.0 Total Advances 25.0 24.4 (
Slide 11: Statement of Assets & Liabilities
Statement of Assets & Liabilities (` crore) As at As at As at As at Growth (%) 30.09.16 31.03.17 30.06.17 30.09.17 Y-o-Y Q-o-Q LIABILITIES Capital 687 687 687 726 5.7 5.7 Share Application Money 0 541 541 0 - -100.0 Reserves and surplus 22755 22748 22846 21882 -3.8 -4.2 Deposits 361454 378391 375796
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-16 (Q2) Mar-17 (Q4) Sep-17 (Q2) H1 FY 2017 H1 FY 2018 Domestic Global Domestic Global Domestic Global Domestic Global Domestic Global Cost of Deposit 6.55 6.47 5.98 5.91 5.80 5.71 6.54 6.47 5.85 5.77 Cost of Funds 5.78 5.58 5.41 5.24 5.19 4.89 5.92 5.69 5.26 4.96 Yi
Slide 14: Movement of NIM & NII
Movement of NIM & NII 2.43 (` crore) 2.5 2.40 2.70 2.4 2.60 2387 2.3 2.20 2.19 2.2 2.50 2321 2.1 2.40 2 2.30 2277 2.27 1.9 2.30 2243 1.8 2.20 1.7 2.06 2.08 2.10 1.6 1.5 2.00 Sep-16 Mar-17 Jun-17 Sep-17 Sep-16 Mar-17 Jun-17 Sep-17 Net Interest Income NIM Global NIM Domestic 4564 2.40 2.29 2.17 4380 2
Slide 15: Non Interest Income
Non Interest Income Parameters Sep-16 Mar-17 Jun-17 Sep-17 Growth Growth H1 H1 Growth (Q2) (Q4) (Q1) (Q2) (%) (%) FY17 FY18 (%) YOY QOQ a. Core Non Interest Income 498 641 606 549 10.4 -21.9 955 1155 20.9 b. Treasury Income 598 728 789 613 2.5 -12.6 1145 1402 22.4 W/w Profit on Sale of 466 582 652
Slide 16: Operating Profit
Operating Profit (` crore) 16.0 % YOY 3996 2134 2057 1939 3445 1820 Sep-16 Mar-17 Jun-17 Sep-17 H1/FY17 H1/FY18 16
Slide 17: Provisions
Provisions (` crore) Parameters Sep-16 Mar-17 Jun-17 Sep-17 H1 H1 (Q2) (Q4) (Q1) (Q2) FY 2017 FY 2018 NPAs 1598 1505 1876 3465 2945 5341 W/w additional Provision on accounts - - - 1566 - 1566 referred to NCLT(as per RBI list 1) Standard Assets 124 249 -61 -20 179 -81 Depreciation on Investment -12 6
Slide 18: Provisions
Provisions (` crore) st nd 1 list 2 list Total Exposure to number of accounts referred under 11 18 29 IBC (as per RBI list) Loan Outstanding as of Sep 30, 2017 7665 4792 12457 Total Provisions held upto Sep 2017 4164# 1498 5662 Additional Provisions required in FY18 0 1087 1087 Provision Coverage Ra
Slide 19: Net Profit
Net Profit (` crore) 343 177 117 109 Sep-16 Mar-17 Jun-17 Sep-17 H1/FY17 H1/FY18 -1531 -1414 19
Slide 20: Efficiency/Profitability Ratios
Efficiency/Profitability Ratios Return on Avg. Assets (%) Cost to Income(%) 0.17 0.17 46.75 44.32 47.48 43.79 45.17 44.47 0.10 0.10 Sep-16 Mar-17 Jun-17 Sep-17 H1 FY 17 H1 FY 18 (Q2) (Q4) (Q1) (Q2) -0.59 Sep-16 Mar-17 Jun-17 Sep-17 H1 FY H1 FY -1.27 (Q2) (Q4) (Q1) (Q2) 17 18 S. Efficiency Sep-16 Mar
Slide 21: Efficiency Ratios
Efficiency Ratios Sn. Profitability Parameters Sep-16 Mar-17 Jun-17 Sep-17 H1 H1 (Q2) (Q4) (Q1) (Q2) FY 17 FY 18 Business per 1 ` crore 145.7 158.8 156.6 162.0 145.7 162.0 Branch Business per 2 ` crore 17.0 18.4 17.7 18.1 17.0 18.1 employee Gross Profit per 3 ` crore 1.7 2.0 1.9 1.8 1.6 1.9 Branch G
Slide 22: Asset Quality: Movement in Non Performing Assets
Asset Quality: Movement in Non Performing Assets (` crore) Parameters Sep-16 Mar-17 Jun-17 Sep-17 H1 H1 (Q2) (Q4) (Q1) (Q2) FY 17 FY 18 Gross NPAs - Opening 27281 32403 33712 37286 24171 33712 Add : Additions 3396 2951 4453 2686 6999 7139 Less : Reductions 815 1642 879 1686 1308 2565 1. Recoveries 2
Slide 23: Asset Quality: Sectoral
Asset Quality: Sectoral (` crore) Sectors Slippages NPAs Sep % to Sectoral NPA % During Q2 2017 Bank’s FY 18 GNPAs Sep-16 Mar-17 Jun-17 Sep-17 Retail Loans 126 1131 2.95 2.93 3.12 2.65 2.53 Agriculture 418 2892 7.55 5.31 5.10 7.98 6.74 Micro & Small (MSE) 654 5100 13.32 8.15 8.92 9.56 10.71 Medium &
Slide 24: Asset Quality: Sectoral
Asset Quality: Sectoral (` crore) S.N. Sector Outstanding NPA Std. Restructured NPA + Std. Restructured (%) 1 Infrastructure 48234 4729 3448 17.0 a. Power 21614 1653 2255 18.1 b. Roads 12876 1983 1156 24.4 2 Textiles 7286 1805 312 29.1 3 Iron & Steel 11353 7389 165 66.5 Sectors 5:25 SDR S4A (Standar
Slide 25: Restructured Assets
Restructured Assets (` crore) Sep-17 (Q2) Particulars Standard NPA Total Restructured Assets as on June 30, 2017 3857 10881 14738 Fresh Restructuring during the Quarter 2104 0 2104 Upgradation to Standard Restructured Accounts during the Quarter 3 -3 0 Restructured Standard Advances which cease to a
Slide 26: Basel III: Capital Adequacy
Basel III : Capital Adequacy Capital Adequacy Ratio 11.79 12.01 11.19 11.22 2.77 2.77 2.63 2.72 8.56 9.02 9.24 8.50 Sep-16 Mar-17 Jun-17 Sep-17 Tier I Tier II CRAR (` crore) Sep-16 Mar-17 Jun-17 Sep-17 Risk Weighted Assets 281316 291204 286784 290259 Capital Funds 31469 34334 34452 32567 CRAR-BASEL
Slide 27: Shareholding Pattern
Shareholding Pattern Sep-17 Public & others Share Capital ` 726.4 crore 10.71% No. of Equity Shares 72.64 crore DIIs 17.81% Net Worth ` 17098 crore Govt. of India FIIs 65.40% 6.08% Market Cap ` 9200 crore 27
Slide 28: Extensive & specialized distribution network
Extensive & specialized distribution network focused on the needs of the different business segments Branch Distribution by Urbanization METRO RURAL 21% 29% Jammu & Kashmir URBAN Chandigarh (13) (17) SEMI- (10) (25) Arunachal Pradesh 20% URBAN Meghalaya (1) (1) Punjab Himachal Pradesh (5) (5) 30% (1
Slide 29: Financial Inclusion: PMJDY
Financial Inclusion Progress under Pradhan Mantri Jan Dhan Yojana (PMJDY) Parameters Achievements of the Bank Villages covered 18396 No. of BCs 5407 Sub Service Areas 5407 Urban Wards 2581 Accounts opened till September 30, 2017 73.45 Lakh Deposits ` 1293.17 Crore RuPay Cards issued 48.56 Lakh Aadha
Slide 30: Financial Inclusion: Mudra Yojana
Financial Inclusion Progress under Mudra Yojana (PMMY) (April to September 2017) Category No. of Sanctioned Amount Outstanding Amount Accounts (` crore) (` crore) Shishu (< ` 50k) 16888 66.42 56.16 Kishor (Above ` 50k-5 Lakh) 54800 1242.64 1080.26 Tarun (Above ` 5 Lakh-10 Lakh) 8288 626.60 523.71 To
Slide 31: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 Structural Transformation #4 Awards & Accolades 31
Slide 32: Structural Transformation
Structural Transformation 915 UX, 46 ULPs,21 SARALs (65% Retail + MSME 32
Slide 33: Structural Transformation
Structural Transformation Project Utkarsh implemented in 27 regions covering 65% of Retail & MSME Branches
Slide 34: Digital Banking
Digital Banking Expanding Digital banking base Transactions through Alternate Debit Card Spends Channels (In %) 500 1636 1800 1600 71.2 450 1400 1169 400 1068 1200 1000 67.9 350 67.0 800 66.6 300 435 600 319 332 400 250 309 277 200 200 0 Sep-16 Mar-17 Jun-17 Sep-17 Sep-16 Mar-17 Jun-17 Sep-17 No. of
Slide 35: Digital Banking: New Initiatives
Digital Banking New Initiatives Union Sahyog App Union Recovery App All-in-one for all For effective monitoring Union Bank Apps. of NPA accounts, an user Interface for Internet friendly mobile based Banking, Products, application namely “Union Social media. Recovery App” launched by the Bank. This a
Slide 36: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 Structural Transformation #4 Awards & Accolades 36
Slide 37: Awards
Awards Awards from PFRDA for NPS Information Technology performance in 2016-17 • 2nd Rank - Best PSU Bank for Branch • SKOCH Order of Merit Award- Activation. • Business Continuity planning and IT Recovery • 3rd Rank - Best PSU Bank in NPS - Private • Disaster Management & Disaster Recovery Sector (
Slide 38: Investor queries
Investor queries: investor.relations@unionbankofindia.com 38