Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q2 FY2012 Earnings Presentation
27 slides from Union Bank Of India's earnings presentation, Oct 24, 2011
Slide 1: Financial Results Q2 – 2012 Analyst Presentation
Financiall Results l Q2 – 2012 Analyst y Presentation 24th October, 2011
Slide 2: Performance for the half year (YoY)
P f Performance f th for the half h lf year (Y (YoY) Y) Global Business up from ` 304203 cr. to ` 342856 cr., an increase of 12.71% Net Interest Income increased from ` 2884 cr. to ` 3251 cr., a growth of 12.73% Net Interest Margin on Earning Assets is at 3.14% as compared to 3.19% during the corres
Slide 3: Net Interest Income (Quarterly / Half Yearly)
Net Interest Income(NII) (Qty / Half Yearly) Growth 8.07% Growth 12.73% 1800 1661 3251 3300 1537 2884 1600 3000 1400 2700 2400 1200 2100 1000 1800 800 1500 1200 600 900 400 600 200 300 SEPT 10 SEPT 11 SEPT 10 SEPT 11 Quarterly Half Yearly SEP 08 SEP 09 SEP 10 SEP 11 CAGR % Net Interest Income 1762 1
Slide 4: Net Interest Margin (Quarterly / Half Yearly)
Net Interest Margin (Qty / Half Yearly) 9.25 9.13 8.28 8.04 8 8 Net Interest 6.25 6.17 Margin (on 6 6 earning 5.06 5.00 4 3.35 3.21 4 3.19 3.14 assets) is 3.21% for the quarter. 2 2 0 SEPT 10 SEPT 11 0 SEPT 10 SEPT 11 NIM For half Yield on Funds Cost of funds NIM (Earning Assets) Yield on Funds Cost
Slide 5: Non-Interest Income (Quarterly / Half Yearly)
Non-Interest Income- (Qty / Half Yearly) (` in crore) SEPT SEPT Growth SEPT SEPT Growth 10 11 % 10 11 % (Q2) (Q2) (H1) (H1) Core Fee Based 286 298 4.20 528 550 4.17 Income Treasury Income 179 161 -10.06 333 334 0.30 W/w Profit on Sale of 131 100 -23.66 244 213 -12.70 Investments Exchange on Foreign
Slide 6: Operating Profits (Quarterly / Half Yearly)
O Operating ti Profits P fit (Quarterly/ (Q t l / Half H lf Yearly) Y l ) 2371 1400 1205 • Operating Profit 1200 1131 2400 2174 for the quarter 2100 increased by 1000 1800 6.54% from `1131 800 1500 o e to `1205 crore c 05 600 crore. 1200 400 900 • On Half yearly basis Operating 200 600 Profits regis
Slide 7: Provisions (Quarterly / Half Yearly)
P Provisions i i (Quarterly (Q t l / Half H lf Yearly) Y l ) (` in crore) SEPT 10 SEPT 11 SEPT 10 SEPT 11 (Q2) (Q2) (H1) (H1) Taxation 228 230 473 503 NPA 629 495 729 860 Standard Assets 13 3 22 -9 Depreciation on Investment -34 82 -13 90 Others -9 42 58 110 Total 827 852 1269 1554 7
Slide 8: Net Profits (Quarterly / Half Yearly)
Net Profits (Quarterly / Half Yearly) 400 353 350 1000 905 • The Net Profit for 304 817 quarter has 300 improved by 16.12% 800 250 from ` 304 crore to 200 ` 353 crore. 600 150 • However,, Net p profit 100 for HY11 is ` 817 400 crore due to lesser 50 net profit in the first 0 200 SEPT 10 SEPT 11 quar
Slide 9: Deposits
2 1 0 0 0 0 177780 195572 Deposits Total Deposits 1 8 0 0 0 0 increased by 10.01% 10 01% 1 5 0 0 0 0 from `177780 crore to ` 195572 crore. 1 2 0 0 0 0 CASA deposits grew by 9 0 0 0 0 58111 62754 7.99% from ` 58111 6 0 0 0 0 crore to ` 62754 crore. crore 3 0 0 0 0 CASA share in total deposit is
Slide 10: Stable CASA Ratio of Union Bank of India
Stable CASA Ratio of Union Bank of India Mar‐06 Mar‐11 45.0% 40.0% 38 4% 38.4% 35.0% 32.4% 31.8% 30.4% 30.0% 25 0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Nationalized Banks Average Union Bank of India Average CASA Ratio of Nationalized Banks was close to 40% in 2006 which gradually declined to around 30%
Slide 11: Advances
147284 Advances 126423 Global advances 150000 of the Bank registered YoY 120000 growth of 16.50%. 16 50% 90000 It increased from `126423 crore to 60000 ` 147284 crore. Yield on advances 30000 has improved to 11.02% from 0 9.49% in the Sept 10 Sept 11 previous year. 11
Slide 12: Sector Wise Advances
SECTOR WISE ADVANCES SECTOR-WISE Across Large & Mid Corporates, SME and Corporate Agri Business Rank Sectors Outstanding (As on 30TH SEPTEMBER 2011) % Amount (Rs. in Crore) 1 Infrastructure 13.26 19544.07 2 Retail Advances 9.84 14505.00 3 Trade 5.49 8094.00 4 NBFC 5.41 7976.76 5 HFCs 3.31 4885.94 6
Slide 13: Composition of Retail Assets
COMPOSITION OF RETAIL ASSETS Product-wise composition of Retail assets Portfolio SEPT 11 9.20 Housing Loans 8.34 Personal Loans Education Loans Auto Loans Other Retail 12.33 3.80 66.33 13
Slide 14: Assets Restructured
Assets Restructured ` in i Crs C . Upto June 2011 During Sept 2011 Total Accounts Amt. Accounts Amt. Accounts Amt. Assets 120204 5844.78 175 756.28 120379 6601.06 Restructured Upto June 2011 During Sept 2011 Total Accounts Amt Amt. Accounts Amt Amt. Accounts Amt Amt. Adjusted / 33866 932.42 2184 81.
Slide 15: Investments
70000 59295 61991 8.00 Investments 60000 6.84 Investments have shown a 50000 40000 6.30 6.00 growth th off 4.54% 4 54% and d Yield Yi ld on 30000 Investments have increased by 20000 54 bps from 6.30% to 6.84%. 10000 4.00 Out of Total AFS portfolio of ` 11860 Crore, ` 4204 Crore SEPT. 10 SEPT. 11 Inv
Slide 16: Book Value, Cost to Income Ratio, Earning Per Share
240 Book Value 228 77 228.77 220 200 193.49 180 156.72 160 140 120 100 80 60 40 20 0 SEPT 09 SEPT 10 SEPT 11 BOOK VALUE 60 Cost to Income Ratio Earning Per Share 60 50 50 43.21 44.03 40 40 37.51 35 83 35.83 31.16 30 30 20 20 10 10 0 0 SEPT 09 SEPT 10 SEPT 11 SEPT 10 SEPT-11 Earning Per Share Cost to
Slide 17: Improved Efficiency
IMPROVED EFFICIENCY 1122 1064 Productivity measured 1100 1000 by Business per 900 employee increased from ` 1064 lacs to 800 700 600 ` 1122 lacs. lacs 500 400 Gross Profit per 300 200 employee has 100 increased from ` 15.21 0 SEPT 10 SEPT 11 lacs to `15.52 `15 52 lacs. lacs BUSINESS PER EMPLOYEE
Slide 18: Movement of NPAs
Movement of NPAs (` in crore) SEPT 10 MAR 11 SEPT 11 Gross NPAs – Opening 2671 2671 3623 Add : Additions 1753 2924 2587 Less ess : Deductions educt o s 900 1972 9 1074 0 1. Due to Write Off 414 1126 538 2. Due to upgradation/ Recoveries 486 846 536 Gross NPAs 3524 3623 5136 Gross Credit 126423 15302
Slide 19: Capital Adequacy
Capital Adequacy 16 13 76 13.76 14 12.53 12.54 • As per Basel II Capital 12 Adequacy Ratio is at 10 12 54% as of 30th Sept., 12.54% Sept 8.71 8.54 7.86 2011 as against 12.53% 8 as of Sept. 2010. 6 5.05 4.67 4 4.00 • Tier-I Core Capital Ratio is at 8.54% 8 54% as of Sept. Sept 2011 2 0 SEPT 09 SEPT 1
Slide 20: Distribution Channels
DISTRIBUTION CHANNELS BRANCH MIX Including SERVICE OUTLETS Hong Kong branch 631 854 SEPT SEPT SEPT SEPT 08 09 10 11 Branches 2432 2713 2869 3051 722 Ext. Counters 117 66 49 42 844 Service 35 43 46 45 branches Total 2584 2822 2964 3138 Metro Urban Semi-Urban Rural ATMs 1402 2130 2419 2757 South North
Slide 21: Shareholding Pattern (30th Sept 2011)
Shareholding Pattern (30th SEPT., SEPT 2011) 14.29 Govt. of India • Share Capital Rs 635 crore Banks, Fis, Ins. Cos. •No. No. of Equity Shares 524.33 million Others 15.84 • Net worth Rs 11995 crore FIIs and Foreign Mutual Funds • B. V. per share Rs 228.77 57 07 57.07 •Return on Equity: 13.62% 12.8 •
Slide 22: Major highlights of last quarter
Major M j hihighlights hli ht off last quarter q 22
Slide 23: Launches / New Initiatives
Launches / New Initiatives • The Bank on 18th August, 2011 launched “Union Chetna”- an information window for the customers as well as employees. The Bank has been actively pursuing the goal of financial literacy and awareness as an important demand-side driver of financial deepening and inclusive g
Slide 24: Guidance 2011-12
Guidance 2011-12 24
Slide 25: Guidance 2011-12
Guidance 2011-12 The Bank aims for a deposits growth of 16% and advances growth of 17-18% for 2011-12. NIM is expected to be at 3.20% by March 2012. Gross NPAs of the Bank is expected to be around 2.65% by March 2012. 25
Slide 26: 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 27: Thank You
f) f) Thank You
Union Bank of India — Q2 FY2012 Earnings Presentation on 6ix