Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q1 FY2014-15 Earnings Presentation
24 slides from Union Bank Of India's earnings presentation, Aug 1, 2014
Slide 1: Financial Results Q1 FY 2014-15
Financial Results Q1 FY 2014 -15 1st August 2014 1
Slide 2: Highlights
Highlights Business • Global Business increased to Rs. 536824 crore Margin • NIM for the quarter at 2.60% Profit • Net Profit up 18.6% to Rs. 664 crore Capital • CRAR (Basel III) at 10.41%; CET 1: 7.03% ROE • Return on Equity at 15.1%
Slide 3: Statement of Assets & Liabilities
Statement of Assets & Liabilities (Rs. crore) LIABILITIES As at As at As at YoY 30.06.13 31.03.14 30.06.14 Growth (%) Capital 708 741 741 4.7 Reserves and surplus 17140 17734 18390 7.3 Deposits 271558 297676 297420 9.5 Borrowings 23945 29317 31570 31.8 Other Liabilities and Provisions 7261 8313 8393
Slide 4: Deposits
Deposits • CASA share at 29.1% • Added 7.7 lakh CASA accounts • Cost of Deposits at 7.24%. (Rs. crore) Jun 2013 Mar 2014 Jun 2014 YoY Growth (%) Total Deposits 271558 297675 297420 9.5 Current Deposits 21445 22703 21768 1.5 Savings Deposits 57663 65098 64804 12.4 CASA 79108 87801 86572 9.4 4
Slide 5: Advances
Advances • Advances increased by 18.1% • RAM (Retail, Agriculture & MSME) sectors are major contributors • Yield on Advances at 10.47% (Rs. crore) Jun 2013 Mar 2014 Jun 2014 YoY Growth (%) Retail Advances 20406 24931 26772 31.2 Agriculture 20513 25614 26553 29.4 MSME 34688 45372 45581 31.4 Share of
Slide 6: Advances – Top Exposures
Advances – Top Exposures Sl. Sectors Top 10 Sectors Top 10 Sectors (Domestic ) (Domestic ) % Share in Advances (30th June 2014) June 2013 Mar 2014 % Share Amount (Rs. cr.) 1 Infrastructure 17.2 16.3 16.4 36433 2 Agriculture 10.1 11.8 12.0 26553 3 Trade 10.2 11.5 12.2 26973 4 Retail Advances 10.1 11.
Slide 7: Advances – Retail Loans
Advances – Retail Loans Jun 2013 Jun 2014 Share of non-home retail loans increased by 2.3% over the year, adding to the margins 7
Slide 8: Overseas Operations
Overseas Operations Overseas branches at Hong Kong, DIFC (Dubai) & Antwerp (Belgium) Business from Overseas Branches US $ 3.63 Billion Representative offices at Business (Rs. 21820 crore) Shanghai, Beijing, Abu Dhabi and Sydney Total Deposits US $ 0.71 Billion (Rs. 4283 crore) Total Advances US $ 2.
Slide 9: Investments
Investments Yield on Investments at 7.59%, up 22 bps 88% of AFS portfolio is interest sensitive. (Rs. crore) Jun 14 % to Total Duration (Yrs) Held to Maturity 70995 77.1 4.63 Held for Trading 253 0.3 4.72 Available for Sale 20840 22.6 2.63 Total 92088 100.0 4.15 9
Slide 10: Performance Highlights (April-June 2014)
Performance Highlights (April-June 2014) 10
Slide 11: NII & NIM
NII & NIM Q-o-Q Change in NIM (bps) 5 5 Jun Mar Jun 2013 2014 2014 -4 (Q1) (Q4) (Q1) -9 % % % -12 Net Interest Margin (NIM) -26 -Global 2.63 2.55 2.60 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 -Domestic 2.72 2.62 2.68 Yield on Fund YoY Growth (%) in -Global 8.87 8.98 9.11 Net Interest Income -Domest
Slide 12: Non-Interest Income
Non-Interest Income (Rs. crore) Jun 2013 Mar 2014 Jun 2014 Growth Growth (Q1) (Q4) (Q1) % % YoY QoQ a. Core Non Interest 353 519 339 -3.9 -34.7 Income W/w Inland Commission 96 133 85 -11.5 -36.1 Processing Charges 67 108 100 49.3 -7.4 Others 189 278 153 -19.0 -45.0 b. Treasury Income 358 194 250 -30
Slide 13: Operating Profit
Operating Profit • Operating Profit is at Rs. 1372 crore for Apr- June 2014 as against Rs. 1320 crore during the last quarter ended March 2014. 13
Slide 14: Provisions
Provisions (Rs. crore) Jun 2013 Mar 2014 Jun 2014 (Q1) (Q4) (Q1) NPAs 483 670 426 Standard Assets 42 71 27 Depreciation on Investment 41 5 -138 Shifting Loss 28 0 39 Restructured Advances 50 60 7 Others (FITL etc) 38 115 32 Taxation 170 -180 315 Total 852 741 708 14
Slide 15: Net Profit
Net Profit • The Net Profit for Apr-June 2014 increased to Rs 664 crore as against Rs. 579 crore for Jan-March 2014, registering a growth of 14.7%. 15
Slide 16: Asset Quality
Asset Quality (Rs. crore) Jun 2013 Mar 2014 Jun 2014 Q1 Q4 Q1 Gross NPAs - Opening 6314 8776 9564 Add : Additions 1468 1199 1274 Less : Reductions 689 411 606 1. Recoveries / 443 189 318 Upgradation 2. Write Off 246 222 288 Gross NPAs- Closing 7093 9564 10232 Gross NPA (%) 3.50 4.08 4.27 Net NPA 388
Slide 17: Asset Quality
Asset Quality (Rs. crore) SECTOR Slippages NPAs % to % to Sector Loan During Jun 14 Total Jun 13 Mar 14 Jun 14 Jun 14 NPAs Agriculture 100 1590 15.54 7.38 6.22 6.13 Micro & Small (MSE) 172 1653 16.16 3.79 5.02 5.09 Retail Loans 102 558 5.45 2.57 2.03 2.15 Others 900 6431 62.85 2.96 3.88 4.15 Total 1
Slide 18: Restructured Assets
Restructured Assets (Rs. crore) Particulars Standard NPA Total Restructured Assets as on April 1, 2014 12353 3080 15433 Fresh Restructuring during the Quarter 465 0 465 Upgradation to Restructured Accounts during the 5 -5 0 Quarter Restructured Standard Advances which cease to -348 0 -348 attract hi
Slide 19: Important Ratios
Important Ratios Jun 2013 Mar 2014 Jun 2014 (Q1) (Q4) (Q1) Cost to Income Ratio (%) 47.03 53.31 51.15 Return on Average Assets (%) 0.73 0.68 0.77 Earning Per Share (Rs.) 37.55 36.74 42.15 Book Value per Share (Rs.) 273.81 269.37 279.94 Business per Branch Rs. crore 135 137 138 Business per Employee
Slide 20: Distribution Channels
Distribution Channels Branch Mix Bank opened 16 domestic branches & 1 foreign branch at 18% Metro Antwerp and 192 ATMs during the 32% Rural 21% quarter June 2014. Urban 29% ATM to Branch Ratio at 1.7 Semi Urban Transactions through electronic channel at 61% as of Jun 2014 (% share in Total Trans
Slide 21: Capital Adequacy – Basel III
Capital Adequacy – Basel III 10.80 10.41 CRAR Tier I Tier II 7.54 7.37 CRAR under Basel III is 10.41% (excluding quarterly profit) Tier I - 7.37% (CET I : 7.03%) 3.26 3.04 & Tier II : 3.04%. Mar 14 Jun 14 (Rs. crore) Jun 2013 Mar 2014 Jun 2014 Risk Weighted Assets 207228 229207 235875 Capital Fu
Slide 22: Shareholding Details
Shareholding Details • Share Capital Rs. 630.30 crore •No. of Equity Shares: 63.03 crore • Net worth: Rs. 17645 crore • Book Value per share Rs. 280 •Return on Equity 15.1% •Market Cap Rs. 15181 crore Shareholding Pattern (%) Jun 13 Mar 14 Jun 14 Govt. of India 57.89 60.13 60.13 FIIs & FMFs 11.65 8.
Slide 23: 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 24: Investor queries
Investor queries: investor.relations@unionbankofindia.com 24
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