Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q4 FY2019 Earnings Presentation
39 slides from Union Bank Of India's earnings presentation, May 14, 2019
Slide 1: Financial Results Q4 FY19 & FY 2018-19
Financial Results Q4 FY19 & FY 2018-19 Please follow us on: May 14, 2019 @unionbankofindia @UnionBank Tweets UnionBankInsta UnionBankofIndiaUtube UnionBankofIndia
Slide 2: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 New Initiatives & Outcomes #4 Awards & Accolades 2
Slide 3: Snapshot as on March 31, 2019
Snapshot as on March 31, 2019 Total Business ` 741307 crore Domestic Advances 7.8% Gross Advances ` 325392 crore Total Deposits ` 415915 crore Recovery + Saving Deposits Upgradation 8.3% Operating Profit(FY19) ` 7521 crore 188% Year on Year Growth Basel III Tier I Ratio 9.48 % FY19 Basel III Total C
Slide 4: Business Performance - Liabilities
Business Performance - Liabilities Total Deposits (` crore) 1.8 % YOY 415915 408502 402297 2816 399092 5305 2207 2670 413099 403197 396885 399627 2.5 % YOY Mar-18 Sep-18 Dec-18 Mar-19 Domestic deposit Overseas deposit CASA Portfolio CASA & Avg CASA (%) 7.8 % YOY 150141 33.2 34.1 34.5 34.7 139241 140
Slide 5: Business Performance - Assets
Business Performance - Assets Gross Advances (` crore) 325392 3.7 % YOY 318563 317513 313860 310932 7.8 % YOY 288336 302007 303330 25524 16556 14183 14460 Mar-18 Sep-18 Dec-18 Mar-19 Domestic Advances Overseas advances Retail 15.5% YOY Agriculture 7% YOY MSME 6% YOY 56524 57092 48971 67174 65936 661
Slide 6: Diversified Loan Portfolio - RAM
Diversified Loan Portfolio - RAM RAM* share (%) in Domestic advances Retail Mar-19 55.7 26.8 Dec-18 56.0 49.2 2.5 Sep-18 54.2 8.2 6.0 7.3 Mar-18 55.0 Home Vehicle Education Mortgage Personal Others *Retail, Agriculture and MSME collectively called as “RAM sector” 6
Slide 7: Diversified Loan Portfolio - RAM
Diversified Loan Portfolio - RAM Composition of Agri loan book(%) 41 38 38 37 More than 63% of Agri. portfolio is 59 62 62 63 for Small & Marginal farmers Mar-18 Sep-18 Dec-18 Mar-19 Small & Marginal Other Agri Composition of MSME loan book(%) 24 24 24 25 75% of 44 43 42 41 MSME portfolio is 32 33
Slide 8: Diversified Loan Portfolio-Industry Exposure
Diversified Loan Portfolio-Industry Exposure Top Sector Exposure S No. Sectors (% Share in Domestic Advance) Dec-18 Mar-19 ` Crore % Share ` Crore % Share 1 Infrastructure 51611 17.0 52200 16.0 2 Trade 39155 12.9 39259 12.1 3 NBFCs and HFCs 36297 12.0 36765 11.3 w/w HFCs 12438 4.1 13134 4.0 4 Constr
Slide 9: Investments
Investments Global Investment (` Crore) 126524 130063 121289 128415 23 26 26 25 77 74 74 75 Mar-18 Sep-18 Dec-18 Mar-19 SLR(%) Non-SLR(%) Duration Particulars (Domestic) Dec 2018 Mar 2019 (Years) (` Crore) (` Crore) Dec-18 Mar-19 Available for Sale 36053 42322 2.96 3.06 W/w SLR 12795 20984 3.16 3.07
Slide 10: Overseas Operations
Overseas Operations Business from Overseas Operations Growth (%) US $ in billion Mar Dec Mar (` crore) 2018 2018 2019 Y-o-Y Y-o-Y (US$) (INR) 4.7 2.4 2.4 Total Business -48.9 -44.0 (30829) (16853) (17276) 0.8 0.4 0.4 Total Deposits -50.0 -46.9 (5305) (2670) (2816) 3.9 2.0 2.0 Total Advances -48.7 -4
Slide 11: Financial Inclusion
Financial Inclusion Progress under Pradhan Mantri Jan Dhan Yojana (PMJDY) Parameters Achievements of the Bank Villages covered 18428 No. of BCs 5439 Sub Service Areas 5439 Urban Wards 2581 Accounts opened till Mar 31, 2019 98 Lakh Deposits ` 2404 Crore RuPay Cards issued 56.15 Lakh Aadhar Seeding 81
Slide 12: Financial Inclusion
Financial Inclusion Total outstanding under Mudra loan: ` 7220 crore Progress under Mudra Yojana April to March 2019 (PMMY) No. of Sanctioned Amount Outstanding Amount Category Accounts (` crore) (` crore) Shishu (< ` 50k) 53256 135 100 Kishor (Above ` 50k-5 Lakh) 121434 2628 2124 Tarun (Above ` 5 L
Slide 13: Statement of Assets & Liabilities
Statement of Assets & Liabilities (` crore) As at As at As at As at Growth (%) 31.03.18 30.09.18 31.12.18 31.03.19 Y-o-Y Q-o-Q LIABILITIES Capital 1169 1169 1169 1763 50.8 50.8 Reserves and surplus 23928 24243 24390 24724 3.3 1.4 Deposits 408501 399092 402297 415915 1.8 3.4 Borrowings 45681 44367 38
Slide 14: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 New Initiatives & Outcomes #4 Awards & Accolades 14
Slide 15: Cost & Yield Ratio
Cost & Yield Ratio Parameters Mar-18 (Q4) Dec-18 (Q3) Mar-19 (Q4) FY-2018 FY-2019 Domestic Global Domestic Global Domestic Global Domestic Global Domestic Global Cost of Deposit 5.58 5.52 5.61 5.59 5.68 5.66 5.73 5.66 5.59 5.57 Cost of Funds 4.93 4.69 4.95 4.87 4.73 4.63 5.09 4.8 4.89 4.79 Yield on
Slide 16: Movement of NIM
Movement of NIM NIM NIM (on Avg. Earning Assets/AEA) (on AEA excl.GNPA) 2.51 2.54 2.44 2.38 2.27 2.18 2.23 2.23 2.18 2.13 1.99 1.90 Mar-18 Sep-18 Dec-18 Mar-19 Mar-18 Sep-18 Dec-18 Mar-19 NIM Domestic NIM Global NIM- Global 2.50 2.28 2.32 2.17 2.23 2.07 FY 2018 FY 2019 FY 2018 FY 2019 NIM Domestic N
Slide 17: Movement of NII
Movement of NII (` crore) 2602 2494 2493 2193 Mar-18 Sep-18 Dec-18 Mar-19 Net Interest Income 10215 9305 FY 2018 FY 2019 Net Interest Income 17
Slide 18: Operating Revenues
Operating Revenues Growth Growth Mar-18 Sep-18 Dec-18 Mar-19 Growth Parameters (%) (%) FY18 FY19 (Q4) (Q2) (Q3) (Q4) (%) YoY QoQ Interest Income 8112 8539 8477 8349 2.9 -1.5 32748 34067 4.0 Interest Expense 5919 6045 5984 5748 -2.9 -3.9 23443 23852 1.7 Net Interest Income 2193 2494 2493 2602 18.7 4.
Slide 19: Non Interest Income
Non Interest Income Growth Growth Mar-18 Sep-18 Dec-18 Mar-19 Growth Parameters (%) (%) FY18 FY19 (Q4) (Q2) (Q3) (Q4) (%) YOY QOQ a. Core Non Interest Income 1127 641 660 867 -23.1 31.4 2879 2876 -0.1 b. Treasury Income 277 153 191 266 -4.0 39.3 1834 899 -51.0 W/w Profit on Sale of 132 82 110 188
Slide 20: Operating Profit
Operating Profit (` crore) 1990 Operating Profit(Quarterly) 1832 1810 1730 Mar-18 Sep-18 Dec-18 Mar-19 Operating Profit (Full Year) 7640 7521 FY18 FY19 20
Slide 21: Provisions
Provisions (` crore) Mar-18 Sep-18 Dec-18 Mar-19 Parameters FY18 FY19 (Q4) (Q2) (Q3) (Q4) NPAs 5639 1710 2139 5784 13500 11435 Standard Assets -737 21 71 21 -707 137 Depreciation on Investment 1120 146 -551 -26 1560 -404 Shifting Loss 0 0 0 0 367 411 Restructured Advances -183 -229 0 -102 -236 -356
Slide 22: Net Profit
Net Profit (` crore) Net profit(Quarterly) 153 139 Mar-18 Sep-18 Dec-18 Mar-19 -2583 -3370 Net Profit(Full Year) FY18 FY19 -2948 -5247 FY18 FY19 22
Slide 23: Efficiency/Profitability Ratios
Efficiency/Profitability Ratios Return on Avg. Assets (%) Cost to Income(%) 55.3 0.12 49.6 45.9 48.8 46.6 Mar-18 Dec-18 Mar-19 FY 18 FY 19 (Q4) (Q3) (Q4) -1.07 -0.59 -2.05 -2.71 S. Efficiency Mar-18 Sep-18 Dec-18 Mar-19 FY 2018 FY 2019 No. Parameters (Q4) (Q2) (Q3) (Q4) 1 Return on Equity (%) -56.18
Slide 24: Efficiency Ratios
Efficiency Ratios Mar-18 Sep-18 Dec-18 Mar-19 Sn. Profitability Parameters FY 18 FY 19 (Q4) (Q2) (Q3) (Q4) Business per 1 ` crore 167.9 166.8 167.7 172.7 167.9 172.7 Branch Business per 2 ` crore 19.2 18.9 19.1 19.9 19.2 19.9 employee Gross Profit per 3 ` crore 1.8 1.7 1.7 1.6 1.8 1.8 Branch Gross P
Slide 25: Asset Quality: Movement in Non Performing Assets
Asset Quality: Movement in Non Performing Assets (` crore) Mar-18 Sep-18 Dec-18 Mar-19 Parameters FY 18 FY 19 (Q4) (Q2) (Q3) (Q4) Gross NPAs - Opening 40988 50973 50157 49713 33712 49370 Add : Additions 10043 2667 2983 3275 21369 13577 Less : Reductions 1661 3483 3427 4259 5711 14218 1. Recoveries 3
Slide 26: Asset Quality: Sectoral
Asset Quality: Sectoral (` crore) Sectoral NPA % Slippages During Sectors NPAs Mar 2019 Q4 FY 19 Sep-18 Dec-18 Mar-19 Retail Loans 214 1194 2.49 2.23 2.09 Agriculture 740 3994 7.62 7.71 8.16 Micro & Small (MSE) 560 5815 12.21 12.19 11.53 Medium & Large 1761 37726 22.82 26.22 24.42 Total 3275 48729 1
Slide 27: Asset Quality: Sectoral
Asset Quality: Sectoral Standard as on Dec 2018 Standard as on Mar 2019 Scheme Amount Amount Account Account (Rs. in crore) (Rs. in crore) 5:25 12 3452 10 2670 SDR 1 0* 1 0* S4A 2 68 2 66 *Account is Non-Fund Based S.N. Sector # Outstanding NPA Std. Restructured NPA + Std. Restructured (%) 1 Infrast
Slide 28: Asset Quality - NCLT I & II
Asset Quality - NCLT I & II (` crore) st nd Particulars 1 list 2 list Total Exposure to number of accounts referred under 8 15 23 IBC (as per RBI list) Loan Outstanding as of Mar 31, 2019 6023 3687 9710 Total Provisions held upto Mar 31, 2019 4082 2917 6999 Provision Coverage Ratio as of Mar 31, 201
Slide 29: Basel III : Capital Adequacy
Basel III : Capital Adequacy Capital Adequacy Ratio RWA Optimization 91.2 11.46 11.55 11.43 11.78 87.3 86.0 85.5 2.43 2.52 2.42 2.30 9.03 9.02 9.02 9.48 58.7 58.2 57.4 56.3 Mar-18 Sep-18 Dec-18 Mar-19 Mar-18 Sep-18 Dec-18 Mar-19 RWA to Advance RWA to Assets Tier I Tier II CRAR (` crore) Particulars
Slide 30: Shareholding Pattern
Shareholding Pattern Mar-19 Share Capital ` 1763 crore 9.42% No. of Equity Shares 176.30 crore Govt. of India 13.15% FIIs 3.15% Net Worth ` 18927 crore DIIs 74.27% Public & others Market Cap ` 16854 crore Capital Raising during FY 2018-19 Particulars Government of India Employee Share Purchase Schem
Slide 31: Extensive & specialized distribution network
Extensive & specialized distribution network Branch Distribution by Urbanization METRO RURAL 21% 29% Jammu & Kashmir URBAN Chandigarh (13) (15) 20% SEMI- (10) (20) Arunachal Pradesh URBAN Meghalaya (1) (1) Punjab Himachal Pradesh (5) (4) 30% (140) (154) (20) (26) Uttarakhand (84) (115) Haryana (110)
Slide 32: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 New Initiatives & Outcomes #4 Awards & Accolades 32
Slide 33: New Initiatives & Outcomes
New Initiatives & Outcomes More than 70% of Credit Appraisal centralized Structural Development: Creation of Centralized Processing Centres (CPCs) No of Units No. of Units Particulars Sectors covered (Mar-18) (Mar-19) ULP 73 74 Retail (Housing and Mortgage Loan) USK 4 38 Retail, Agriculture and MSME
Slide 34: New Initiatives & Outcomes
New Initiatives & Outcomes Improving Quality of Advances….. Rated Advances - Lending to higher rated borrowers… Improving rating profile of New Retail loans sanctioned Retail CIBIL Rating Profile Rating Matrix of Outstanding Corporate Loans – `162,837 crore 43 63 17 26 26 17 16 31 20 15 FY16-17 FY19
Slide 35: New Initiatives & Outcomes: Early Warning Signals (EWS)
NewEarly Warning Initiatives Signals (EWS) & Outcomes Early Warning Indicators to mitigate credit risk...... Logistic regression equation and derived coefficients created to predict the riskiness of the customer The Early Stress Signals (ESS) model identified 8 major contributors to predict propensi
Slide 36: Table of Contents
Table of Contents #1 Business Performance #2 Financials #3 New Initiatives & Outcomes #4 Awards & Accolades 36
Slide 37: Awards
Awards Golden Peacock Award EASE Awards •“Udyamimitra for MSMEs” – Enhanced Access and •“National Training Award” – Corporate Leadership Service Excellence (EASE) Award under PSB & Institutional Excellance Reforms Agenda World HRD Congress SKOCH Awards •SKOCH Gold Award – Banking & Finance Gold for
Slide 38: 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 stateme
Slide 39: Investor queries: investor.relations@unionbankofindia.com
Investor queries: investor.relations@unionbankofindia.com 39
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