Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — H1 FY2014-15 Earnings Presentation
30 slides from Union Bank Of India's earnings presentation, Oct 31, 2014
Slide 1: Financial Results Q2 & H1 FY 2014-15
Financial Results Q2 & H1 FY 2014 -15 31st October 2014 1
Slide 2: Highlights for Quarter
Highlights for Quarter • Global Business increased to ` 544576 Business crore Margin • Domestic NIM for the quarter at 2.60% Fee Income • Core Fee Income up 20.6% (y-o-y) Profit • Net Profit up 78.4% (y-o-y) to ` 371 crore Capital • CRAR (Basel III) at 10.30%; CET 1: 7.01%
Slide 3: Statement of Assets & Liabilities
Statement of Assets & Liabilities (` crore) LIABILITIES As at As at As at As at YoY 30.09.13 31.03.14 30.06.14 30.09.14 Growth (%) Capital 708 741 741 636 -10.17 Reserves and surplus 17338 17734 18390 18861 8.78 Deposits 287029 297676 297420 300165 4.58 Borrowings 27664 29317 31570 32636 17.97 Other
Slide 4: Deposits
Deposits • CASA share at 28.7% • Added 33 lakh CASA accounts • Cost of Deposits at 7.31%(HY) & 7.37% (Q2). (` in crore) Sept 2013 Mar 2014 Jun 2014 Sept 2014 YoY Growth (%) Total Deposits 287029 297675 297420 300165 4.6 Current Deposits 20253 22703 22205 18789 -7.2 Savings Deposits 60822 65098 64432
Slide 5: Advances
Advances • Advances increased by 10.3% 221684 244411 • RAM (Retail, Agriculture & MSME) sectors are major contributors • Yield on Advances at 10.54% (HY) & 10.60% (Q2) Sep 13 Sep 14 (` in crore) Sept 2013 Mar 2014 Sept 2014 YoY Growth (%) Retail Advances 22166 24931 28491 28.5 Agriculture 22385 2561
Slide 6: Advances – Top Exposures
Advances – Top Exposures Sl. Sectors Top 10 Sectors Top 10 Sectors (Domestic ) (Domestic ) % Share in Advances (30th Sept 2014) Sept 2013 Mar 2014 % Share Amount ( ` in cr.) 1 Infrastructure 17.4 16.3 17.1 38656 2 Agriculture 10.7 11.8 12.7 28740 4 Retail Advances 10.8 11.5 12.6 28491 4 Trade 12.3 1
Slide 7: Advances – Retail Loans
Advances – Retail Loans Sept 2013 Sept 2014 2.86 Housing Loans 8.48 8.48 Personal Loans Education Loans 59.9 20.28 Auto Loans Other Retail 7
Slide 8: Overseas Operations
Overseas Operations Overseas branches at Hong Kong, DIFC (Dubai) & Antwerp (Belgium) Business from Overseas Branches Business US $ 3.76 Billion (` 23204 crore) Representative offices at Shanghai, Beijing, Abu Dhabi and Sydney Total Deposits US $ 0.78 Billion (` 4804 crore) Union Bank of India (UK) L
Slide 9: Investments
Investments 96198 91990 Yield on Investments at 7.53%(HY) & 7.48% (Q2) 81% of AFS portfolio is interest sensitive. Sep 13 Sep 14 (` in crore) Sept 14 % to Total Duration (Yrs) Held to Maturity 69417 75.46 4.41 Held for Trading 447 0.49 5.95 Available for Sale 22126 24.05 3.35 Total 91990 100.00 4.17
Slide 10: Half Yearly Financials
(Y Union Bank of India Half Yearly Financials
Slide 11: NII & NIM
NII & NIM Sept 2013 Sept 2014 (H1) (H1) % % Net Interest Margin (NIM) -Global 2.58 2.56 -Domestic 2.67 2.64 Yield on Fund -Global 8.87 9.10 -Domestic 9.15 9.36 Cost of Fund -Global 6.45 6.68 -Domestic 6.64 6.87 11
Slide 12: Non-Interest Income
Non-Interest Income (` in crore) Sept 2013 Sept 2014 Growth % (H1) (H1) a. Core Non Interest Income 724 787 8.7 W/w Inland Commission 201 175 -13.0 Processing Charges 148 194 31.2 Others 375 418 11.5 b. Treasury Income 527 521 -1.1 W/w Profit on Sale of Investments 334 174 -47.9 Exchange Profit 193
Slide 13: Operating Profit
Operating Profit 2637 2706 • Operating Profit for the Half Year is at ` 2706 crore as against ` 2637 crore during the corresponding period of last year, showing an increase of 2.6%. Sep 13 Sep 14 13
Slide 14: Provisions
Provisions (` in crore) Sept 2013 Sept 2014 (H1) (H1) NPAs 939 1029 Standard Assets 214 72 Depreciation on Investment 39 -58 Shifting Loss 110 39 Restructured Advances 162 104 Others (FITL etc) 155 -8 Taxation 250 492 Total 1869 1670 14
Slide 15: Net Profit
Net Profit 1036 768 • The Net Profit for the Half Year registered increase of 34.9% from ` 768 crore to ` 1036 crore. Sep 13 Sep 14 15
Slide 16: Performance Highlights (July-Sept 2014)
Performance Highlights (July-Sept 2014) 16
Slide 17: NII & NIM
NII & NIM Sept Mar Sept 2013 2014 2014 (Q2) (Q4) (Q2) % % % Net Interest Margin (NIM) -Global 2.54 2.55 2.53 -Domestic 2.62 2.62 2.60 Yield on Fund -Global 8.87 8.98 9.09 -Domestic 9.15 9.29 9.34 Cost of Fund -Global 6.49 6.58 6.70 -Domestic 6.69 6.83 6.89 17
Slide 18: Non-Interest Income
Non-Interest Income (` in crore) Sept Mar June Sept Growth Growth 2013 2014 2014 2014 % % (Q2) (Q4) (Q1) (Q2) YoY QoQ a. Core Non Interest 371 519 339 448 20.6 32.0 Income W/w Inland Commission 105 133 85 90 -14.1 6.3 Processing Charges 81 108 100 93 15.7 -7.3 Others 185 278 153 265 43.2 73.2 b. Tre
Slide 19: Operating Profit
Operating Profit 1372 1334 • Operating Profit is at ` 1334 crore for July-Sept 1225 2014 as against ` 1225 crore during the corresponding period of last year. Sept 13 Jun 14 Sept 14 19
Slide 20: Provisions
Provisions (` in crore) Sept 2013 Mar 2014 June 2014 Sept 2014 (Q2) (Q4) (Q1) (Q2) NPAs 456 670 426 603 Standard Assets 172 71 27 45 Depreciation on -3 5 -138 79 Investment Shifting Loss 82 0 39 0 Restructured Advances 112 60 7 98 Others (FITL etc) 117 115 32 -39 Taxation 80 -180 315 177 Total 1016
Slide 21: Net Profit
Net Profit • The Net Profit for July-Sept 664 2014 increased to ` 371 crore as against ` 208 crore for the 371 corresponding period of last 208 year, registering a growth of 78.4%. Sept 13 Jun 14 Sept 14 21
Slide 22: Asset Quality
Asset Quality (` in crore) Sept 2013 Mar 2014 June 2014 Sept 2014 Q2 Q4 Q1 Q2 Gross NPAs - Opening 7093 8776 9564 10232 Add : Additions 1657 1199 1274 1968 Less : Reductions 689 411 606 738 1. Recoveries / 419 189 318 558 Upgradation 2. Write Off 270 222 288 180 Gross NPAs- Closing 8061 9564 10232 1
Slide 23: Asset Quality
Asset Quality (` in crore) Slippages NPAs % to % to Sector Loan SECTOR During Sept 14 Total Sep Mar June Sept Sept 14 NPAs 14 13 14 14 Agriculture 152 1620 14.1 6.93 6.22 6.13 5.73 Micro & Small 358 1903 16.6 5.15 5.02 5.09 5.26 (MSE) Retail Loans 110 578 5.0 2.29 2.03 2.15 2.10 Others 1349 7361 64.
Slide 24: Restructured Assets
Restructured Assets (` in crore) Particulars Standard NPA Total Restructured Assets as on July 1st, 2014 11967 3358 15325 Fresh Restructuring during the Quarter 738 193 931 Upgradation to Restructured Accounts during the 16 -16 0 Quarter Restructured Standard Advances which cease to -266 0 -266 attr
Slide 25: Important Ratios
Important Ratios Sept Mar June Sept 2013 2014 2014 2014 (Q2) (Q4) (Q1) (Q2) Cost to Income Ratio (%) 52.25 53.31 51.15 53.94 Return on Average Assets (%) 0.25 0.68 0.77 0.42 Earning Per Share (`) 13.95 36.74 42.15 23.52 Book Value per Share (`) 276.96 269.37 279.94 283.34 Business per Branch ` in cr
Slide 26: Distribution Channels
Distribution Channels Branch Bank opened 53 domestic branches & 1 foreign branch at Mix Antwerp and 199 ATMs during the half year ended Sept 2014. ATM to Branch Ratio at 1.7 Transactions through electronic channel at 59.3% as of Sept 2014 Alternate Delivery Channels Service Outlets (% share in T
Slide 27: Capital Adequacy – Basel III
Capital Adequacy – Basel III CRAR 10.41 10.30 Tier I Tier II 7.37 7.31 CRAR under Basel III is 10.30% (excluding quarterly profit) 3.04 2.99 Tier I - 7.31% (CET I :7.01%) & Tier II :2.99%. June 14 Sept 14 (` in crore) Sept 2013 Mar 2014 Sept 2014 Risk Weighted Assets 222984 229207 239682 Capital
Slide 28: Shareholding Details
Shareholding Details • Share Capital ` 635.8 crore •No. of Equity Shares: 63.58 crore • Net worth: ` 18015 crore • Book Value per share ` 283.34 •Return on Equity 11.50% •Market Cap ` 12004 crore 60.13 60.47 16.62 14.55 14.78 13.62 8.47 11.36 Govt. of India FIIs & FMFs Banks, Institutions/ Others Mu
Slide 29: 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 30: Investor queries: investor.relations@unionbankofindia.com
Investor queries: investor.relations@unionbankofindia.com 30
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