Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q1 FY2015-16 Earnings Presentation
34 slides from Union Bank Of India's earnings presentation, Jul 28, 2015
Slide 1: Financial Results Q1 FY 2015-16
Financial Results Q1 FY 2015-16 July 28, 2015
Slide 2: A Step Towards Digitalization
A Step Towards Digitalization 2
Slide 3: Performance Highlights
Performance Highlights • Global Business increased by 8.6% to ` 582817 crore Business • Savings Deposits grew by 10.6%; Share of High cost deposits declined to 5.4%. • Opex growth contracted on both annual and sequential (0.8% y/y Opex and 11.7% q/q respectively); • Non-employee expenses declined ov
Slide 4: Quarterly Trends
Quarterly Trends ROA (%) ROE (%; Annualized) 0.77 15.1 0.55 11.0 0.47 9.7 0.42 8.3 0.34 6.6 Jun/14 Sep/14 Dec/14 Mar/15 Jun/15 Jun/14 Sep/14 Dec/14 Mar/15 Jun/15 Cost to Income Ratio (%) Slippages (` crore) 53.94 1968 1738 1547 1508 51.15 51.13 1274 49.38 48.92 Jun/14 Sep/14 Dec/14 Mar/15 Jun/15 Jun
Slide 5: Business Performance
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Slide 6: Deposits
Deposits Parameters Jun Mar Jun Growth (%) (` crore) 2014 2015 2015 Y-o-Y Q-o-Q Total Deposits 297420 316870 327264 10.0 3.3 Current Deposits 22205 21092 21358 -3.8 1.3 Savings Deposits 64432 71558 71254 10.6 -0.4 CASA 86637 92650 92612 6.9 0.0 • The Bank activated 3.9 lakh Dormant accounts during Q
Slide 7: Advances
Advances Parameters Jun Mar Jun Growth (%) (` crore) 2014 2015 2015 Y-o-Y Q-o-Q Gross Advances 239404 262757 255553 6.7 -2.7 - Domestic 221867 241323 232072 4.6 -3.8 - Overseas 17537 21434 23481 33.9 9.6 Retail Advances 26772 31658 32712 22.2 3.3 Agriculture 26553 31574 36209 36.4 14.7 MSME 45581 54
Slide 8: Advances
Advances Annual Growth (%) Advances RAM Segment RAM Share (%) in Domestic Advances 30.8 50 30.3 49 26.6 24.0 18.1 16.6 12.1 45 10.3 8.9 6.7 Jun/14 Sep/14 Dec/14 Mar/15 Jun/15 Jun/14 Mar/15 Jun/15 Jun-14 Jun-15 7.5 7.6 14.9 17.0 Home Loans Vehicle Loans 8.5 7.7 Education Loans 60.4 59.5 8.6 Mortgage
Slide 9: Advances – Top Exposures
Advances – Top Exposures Sl. Sectors Top 10 Sectors Top 10 Sectors (Domestic ) (Domestic ) % Share in Advances (30th Jun 2015) Jun Mar % Share Amount 2014 2015 ( ` crore) 1 Infrastructure 16.4 15.9 16.7 38838 2 Agriculture 12.0 13.1 15.6 36209 3 Retail Advances 12.1 13.1 14.1 32712 4 Trade 12.2 11.6
Slide 10: Investments
Investments Investments 101777 (` crore) 94497 92088 Jun/14 Mar/15 Jun/15 Jun 2015 % to Total Duration (Yrs) Jun 2015 Held to Maturity 73600 72.3 4.2 Held for Trading 319 0.3 6.4 Available for Sale 27858 27.4 4.9 Total Investment* 101777* 100 4.4 * Excludes RIDF amount of ` 9711 crore • 83% of AFS &
Slide 11: Overseas Operations
Overseas Operations Overseas branches at Business from Overseas Branches Hong Kong, DIFC (Dubai) & Growth Jun-14 Mar-15 Jun-15* Antwerp (Belgium) US $ (%) YoY- (` crore) US$ Business 3.4 4.1 4.5 31.6 billion billion billion Representative offices at (21820) (26074) (28719) Shanghai, Beijing, Abu Dha
Slide 12: Statement of Assets & Liabilities
Statement of Assets & Liabilities (` crore) LIABILITIES As at As at As at Growth (%) 30.06.14 31.03.15 30.06.15 Y-o-Y Q-o-Q Capital 741 636 636 -14.2 0.0 Reserves and surplus 18390 19125 19636 6.8 2.7 Deposits 297420 316870 327264 10.0 3.3 Borrowings 31570 35360 33022 4.6 -6.6 Other Liabilities and
Slide 13: Financial Highlights
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Slide 14: Cost & Yield Ratio
Cost & Yield Ratio Parameters Jun-14 Mar-15 Jun-15 (Q1) (Q4) (Q1) Domestic Global Domestic Global Domestic Global Cost of Deposit 7.33 7.24 7.38 7.28 7.30 7.20 Cost of Funds 6.86 6.65 6.74 6.44 6.71 6.46 Yield on Advances 11.06 10.47 10.83 10.18 10.57 9.95 Yield on Investment 8.37 7.83 8.39 7.83 7.8
Slide 15: Non-Interest Income
Non-Interest Income (` crore) Parameters Jun-14 Mar-15 Jun-15 Growth (%)- Growth (Q1) (Q4) (Q1) Y/Y (%)-Q/Q a. Core Non Interest Income 339 630 422 24.4 -33.0 b. Treasury Income 250 433 321 28.4 -25.9 W/w •Profit on Sale of 99 283 195 97.0 -31.1 Investments •Exchange Profit 151 150 126 -16.6 -16.0 c
Slide 16: Operating Profit
Operating Profit (` crore) Jun-14 Mar-15 Jun-15 Growth (%)- Growth (Q1) (Q4) (Q1) Y/Y (%)-Q/Q Parameters Interest Income 7856 8241 8260 5.1 0.2 Interest Expenditure 5739 6119 6130 6.8 0.2 Net Interest Income 2117 2122 2130 0.6 0.4 Non Interest Income 691 1143 783 13.3 -31.5 Operating Expenses 1436 1
Slide 17: Provisions
Provisions (` crore) Parameters Jun-14 Mar-15 Jun-15 (Q1) (Q4) (Q1) NPAs 426 833 480 Standard Assets 27 146 -22 Depreciation on Investment -138 47 199 Shifting Loss 39 0 6 Restructured Advances 7 -83 7 Others (FITL etc) 32 67 -28 Taxation 315 199 327 Total 708 1209 969 17
Slide 18: Net Profit
Net Profit ` crore Net Profit 664 519 443 371 302 Jun/14 Sep/14 Dec/14 Mar/15 Jun/15 18
Slide 19: Efficiency/ Profitability Ratios
Efficiency/ Profitability Ratios Sl. Efficiency Parameters Jun-14 Mar-15 Jun-15 (Q1) (Q4) (Q1) 1 Return on Assets (%) 0.77 0.47 0.55 2 Return on Equity (%) 15.05 9.70 11.02 3 Cost to Income Ratio (%) 51.15 49.38 48.92 4 Book Value Per Share (Rs) 279.94 288.01 296.26 5 Earnings per share (Rs) 42.15 2
Slide 20: Asset Quality
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Slide 21: Asset Quality
Asset Quality (` crore) Parameters Jun-14 Mar-15 Jun-15 (Q1) (Q4) (Q1) Gross NPAs - Opening 9564 12596 13031 Add : Additions 1274 1547 1508 Less : Reductions 606 1112 395 1. Recoveries 217 550 160 2. Upgradation 101 317 78 3. Write Off 288 245 157 Gross NPAs- Closing 10232 13031 14144 Gross NPA (%)
Slide 22: Asset Quality
Asset Quality (` crore) Sectors Slippages NPAs % to % to Sector Loan During Q1 Jun Total Jun Sept Mar Jun FY 16 2015 NPAs 2014 2014 2015 2015 Agriculture 171 1672 11.82 6.13 5.73 5.08 4.62 Micro & 217 2616 18.50 5.09 5.26 6.09 6.67 Small (MSE) Retail Loans 159 824 5.83 2.15 2.10 1.96 2.52 Others 961
Slide 23: Restructured Assets
Restructured Assets (` crore) Jun-15 (Q1) Particulars Standard NPA Total Restructured Assets as on Mar 31, 2015 13658 4470 18128 Fresh Restructuring during the Quarter 751 1 752 Upgradation to Restructured Accounts during the 10 -10 0 Quarter Restructured Standard Advances which cease to attract -37
Slide 24: Sector wise Standard Restructured Accounts
Sector wise Standard Restructured Accounts (` crore) Sector Amt. % to Standard Quarterly slippage % from Restructured Restructured Asset 1 Infrastructure 8754 62.0 5.0 4.5 a. Power 7225 51.2 2.9 w/w SEBs 6012 42.6 2.0 2 Iron & Steel 1283 9.1 1.4 3 Hotel 661 4.7 4 Engineering 336 2.4 Jun-14 Sep-14 De
Slide 25: Human Capital
Human Capital Mar 2014 Jun 2014 Mar 2015 Jun 2015 Officers 18158 18961 18290 19252 Clerks 9323 9732 11731 11713 Sub-Staff 6325 6007 5493 5412 Total 33806 34700 35514 36377 Average age of Employee (year) 42 41 40 40 Mar 14 Jun 14 Mar 15 Jun 15 25
Slide 26: Extensive & specialized distribution network
Extensive & specialized distribution network focused on the needs of the different business segments Branch Distribution by Urbanization Rural Metro 31.4 18.1 Jammu & Kashmir Urban Chandigarh (12) (20) 21.0 (10) (22) Arunachal Pradesh Semi Urban Himachal Pradesh Meghalaya (1) (1) 29.5 Punjab (5) (4)
Slide 27: Multiple Delivery Channels
Multiple Delivery Channels Internet Banking User (lakh) Mobile Banking User (thousands) 167 11.1 11.5 137 9.6 8.3 7.4 87 55 42 Mar/12 Mar/13 Mar/14 Mar/15 Jun/15 Mar/12 Mar/13 Mar/14 Mar/15 Jun/15 Transactions through Alternative Channels (%) 60% ATMs 14.9 Internet Banking Mobile Banking 1.2 2.0 Tel
Slide 28: Basel III: Capital & Liquidity
Basel III: Capital & Liquidity 10.41 10.22 10.14 Liquidity Coverage Ratio (LCR) 7.37 7.50 7.46 LCR for quarter ended June 2015 CRAR Tier I at 116.1% compared to regulatory Tier II minimum requirement of 60% 3.04 2.72 2.68 Jun/14 Mar/15 Jun/15 (` crore) Jun 2014 Sep 2014 Dec 2014 Mar 2015 Jun 2015
Slide 29: Shareholding Details
Shareholding Details • Share Capital ` 635.8 crore •No. of Equity Shares: 63.58 crore • Net worth: ` 18836 crore • Book Value per share ` 296.26 •Return on Equity 11.02% •Market Cap ` 9387 crore Shareholding Pattern (%) 13.63% 12.69% 12.25% 15.57% 18.26% 19.42% 60.13% 10.67% 60.47% 8.58% 60.47% 7.86
Slide 30: 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 June 30, 2015 51.4 Lakh Deposits ` 471.7 Crore RuPay Cards issued 49.5 Lakh Aadhar Seeding 13.4 Lakh Progr
Slide 31: Awards During the Quarter
Awards During the Quarter SKOCH FINANCIAL INCLUSION AND DEEPENING AWARD 2015 FINANCIAL IRCTC UNION BANK FINANCIAL INCLUSION PREPAID CARD INCLUSION TECHNOLOGY CNBC TV 18 Financial Advisors Awards 2014 -15 in Best PSU Banks 31
Slide 32: Digital Initiatives
Digital Initiatives Customer convenience through following digital initiatives: 1.IMPS through branches for Retail and Corporate customers; 2.Mobile Passbook (M Passbook); 3.Missed call facility for Mobile Banking & Account balance; 4.SMS based value added services. 32
Slide 33: 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 statem
Slide 34: Investor queries: investor.relations@unionbankofindia.com
Investor queries: investor.relations@unionbankofindia.com
Union Bank of India — Q1 FY2015-16 Earnings Presentation on 6ix