City Union Bank Limited · NSE:CUB
City Union Bank — Investor Presentation (June 2017)
35 slides from City Union Bank's investor presentation, June 2017
Slide 1: Investor Presentation June 2017
INVESTOR PRESENTATION JUNE 2017 1
Slide 2: Disclaimer
Disclaimer No representation or warranty, express or implied is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain
Slide 3: Table of contents
Table of contents 1. Overview Page : 04 2. Performance Highlights – June 2017 Page : 09 3. Financial Performance & Business Profile Page : 12 4. Branch Network Page : 31 5. Shareholding Pattern Page : 32 6. Corporate Governance Page : 33 3
Slide 4: Overview Facts & Figures
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Overview City Union Bank Ltd, the oldest private sector bank in India, was founded on October 31, 1904 and is headquartered at Kumbakonam, Tamil Nadu
Slide 5: Awards & Accolades
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Overview Branch Network Corporate Governance Highlights & Business Profile Pattern AWARDS & ACCOLADES Best Small sized Bank for 2015-16 by Business World – PWC Best Banks’ Survey 2016 (Second year in a row) Won Financial Express Bes
Slide 6: Key milestones
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Key milestones Celebrated 110th year Foundation Day in Dec 2014 Incorporation Took over Initial Public Obtained licenses Rights issue @ Raised INR of the Bank
Slide 7: A specialized banking model aligned to Target Segment – SME/MSME
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern City Union Bank – A specialized banking model aligned to Target Segment – SME/MSME • SME/MSME specialized business model focusing on large untapped SM E/ M SM
Slide 8: Competitive Advantages
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Competitive Advantages • Continuos profitability and dividend payout in all 110+ years of operations Strong track record • Business growth of 20% CAGR in last
Slide 9: Q1 FY 2018 Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Q1 FY 2018 Performance – A snapshot Deposits increased by 9% from Rs.279 Bn to Rs.305 Bn Y-o-Y Advances registered a growth of 13% from Rs.212 Bn to Rs.24
Slide 10: Q1 FY 2018 Vs Q1 FY 2017 Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Q1 FY 2018 Vs Q1 FY 2017 Performance – A snapshot (All figures in I N R M n) 304,683 240,582 545,265 70,987 9% 13% 11% 23% 279,356 212,155 491,511 57,573 Depo
Slide 11: FY 2017 Vs 16 Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern FY 2017 Vs 16 Performance – A snapshot (All figures in I N R M n) 301,157 241,125 542,282 70,390 11% 13% 12% 27% 271,581 212,531 484,112 55,326 Deposits Advan
Slide 12: Q1 FY 18 Vs Q1 FY 17 – Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Q1 FY 18 Vs Q1 FY 17 – Performance – A snapshot (in I N R M n ) Financial Perform ance Inc / Particulars Q1 FY 2018 Q1 FY 2017 Growth Growth % (Dec) Deposits
Slide 13: Q1 FY 18 Vs Q1 FY 17 – Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Q1 FY 18 Vs Q1 FY 17 – Performance – A snapshot (in I N R M n ) Financial Perform ance INC / Particulars Q1 FY 2018 Q1 FY 2017 Growth % Q4 FY 2017 (DEC) Net I
Slide 14: FY 17 Vs FY 16 – Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern FY 17 Vs FY 16 – Performance – A snapshot (in I N R M n ) Financial Perform ance Inc / Particulars FY 2017 FY 2016 Growth Growth % (Dec) Deposits 301,157 271,
Slide 15: FY 17 Vs FY 16 – Performance – A snapshot
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern FY 17 Vs FY 16 – Performance – A snapshot (in I N R M n ) Financial Perform ance INC / Particulars FY 2017 FY 2016 Growth % (DEC) Net Interest Income 11,987 9
Slide 16: Q1 FY 18 Vs 17 – Income and Expenses – Breakup
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Q1 – FY 18 Vs 17 – Income and Expenses – Breakup (in I N R M n ) Interest Income Breakup Interest Expenses Breakup Q1 FY Q1 FY Growth Q1 FY Q1 FY Growth Parti
Slide 17: FY 17 Vs 16 – Income and Expenses – Breakup
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern FY 17 Vs 16 – Income and Expenses – Breakup (in I N R M n ) Interest Income Breakup Interest Expenses Breakup FY FY Growth FY FY Growth Particulars Particular
Slide 18: Strong Deposits and Advances growth
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Strong Deposits and Advances growth (in I N R M n ) Deposits Advances CAGR 10 % CAGR 12 % 301,157 304,683 241,125 240,582 271,581 212,531 240,750 180,885 220,
Slide 19: Income Growth over the years
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Income Growth over the years… (in I N R M n ) Net I nterest I ncom e Grow th Other I ncom e Grow th CAGR 18 % CAGR 17 % 11,988 4,840 9,810 4,041 4,100 7,594 8
Slide 20: Key Business Indicators
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Key Business Indicators Particulars Q1 FY 2018 Q1 FY 2017 Q4 FY 2017 FY 2016-17 Cost of Deposits 6.44% 7.12% 6.62% 6.82% Yield on Advances 11.79% 12.36% 11.86
Slide 21: Key Business Ratios – Yearly trends
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Key Business Ratios – Yearly trends Net I nterest M argin R eturn on Assets 5.00% 1.65% 1.60% 4.47% 1.60% 4.50% 1.55% 1.49% 1.50% 1.50% 4.00% 4.17% 1.50% 3.81
Slide 22: Cost of deposits & Yield on advances
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Cost of deposits & Yield on advances 16.00% 14.00% 13.46% 13.56% 13.49% 13.43% 13.04% 13.18% 12.82% 12.83% 12.47% 12.10% 11.79% 12.00% 10.00% 8.44% 8.37% 7.98
Slide 23: Efficiency
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Efficiency Cost income ratio C AS A R a t io 44.10 23.37 23.30 42.83 20.37 19.23 17.79 40.94 40.10 37.84 31-Mar-2014 31-Mar-2015 31-Mar-2016 31-Mar-2017 30-Ju
Slide 24: Loan Book – Products Composition
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Loan Book – Products Composition % to Total Advances Cash Credit & Demand • Working capital loans yielding higher interest Loans constitute 64% of advances 36
Slide 25: Loan Book – Sectoral Deployment – Position as on 30.06.2017
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Loan Book – Sectoral Deployment – Position as on 30.06.2017 (in I N R M n ) Sectorial Deploym ent Secured & Unsecured Advances Agriculture 36,950 (16%) Amount
Slide 26: Loan Book – Advances to Major Industries
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Loan Book – Advances to Major Industries (in I N R M n ) Advances to Major Industries 30 th June 2017 TEXTILE a) Cotton 11,245 (5%) b) Other Textiles 13,818 (
Slide 27: Asset Quality
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Asset Quality (in I N R M n ) G r oss NP A Q t m & Gr oss NP A % Net NP A Q t m & Net NP A % 7,350 6,820 4,083 4,260 5,120 3,232 3,358 2,328 2,931 3.05% 1973
Slide 28: Asset Quality Position – Movement over the years
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Asset Quality Position – Movement over the years FY FY FY FY FY Q1 FY (Rs in Mn) Mar - 13 Mar - 14 Mar - 15 Mar - 16 Mar – 17 2018 NPA Opening balance 1,235 1
Slide 29: Restructured Accounts
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Restructured Accounts Balance outstanding as on 30.06.2017 in respect of Restructured Standard borrowers No account has been restructured during Q1 FY 2018
Slide 30: Investments – At a Glance
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Investments – At a Glance Investments Breakup and Categoryw ise (in I N R M n) Particulars JUN 2017 JUN 2016 SLR Securities 70,210 72,836 Non-SLR Securities 3
Slide 31: Strong presence in the South
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Strong presence in the South As of Jun-2017 - 550 branches. 489 branches are located in South India out of which 379 in Tamil Nadu No. of % of % of % of State
Slide 32: A well diversified investor base
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern A well diversified investor base as of 30 th June 2017 Ownership profile Major Institutional Shareholders Shareholders % of Holding NT Asian Discovery Master
Slide 33: Transparent 'Corporate Governance' practices
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern Transparent ‘Corporate Governance’ practices Board consists of 8 Independent Directors and 2 Non-Independent Directors Various sub-committees of Board functio
Slide 34: A well experienced and strong Board
1 2 Performance 3 Financial Performance 4 5 Shareholding 6 Overview Branch Network Corporate Governance Highlights & Business Profile Pattern A well experienced and strong Board Shri. S. Mahalignam | B.Com (Honours), FCA Dr N. Kamakodi | B.Tech., MBA., PhD., CAIIB Non Executive Chairman M.D. & C.E.O
Slide 35: City Union Bank Ltd. Investor Contact
CITY UNION BANK LTD. INVESTOR CONTACT Regd. Office : 149, TSR Big Street, Kumbakonam – 612001, Tamilandu. Name : K. Jayaraman, DGM Admin Office : "Narayana" No.24 B, Gandhi Nagar, Kumbakonam - 612001,Tamil Nadu. Mob : +91 9344303740 Tel : 0435-2402322, 2401622, | FAX: 0435-2431746 | www.cityunionban