City Union Bank Limited · NSE:CUB
City Union Bank — Investor Presentation (December 2013)
41 slides from City Union Bank's investor presentation, December 2013
Slide 1: Investor Presentation – December 2013
INVESTOR PRESENTATION – DECEMBER 2013 1
Slide 2: Disclaimer
Disclaimer No representation or warranty, express or implied is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain
Slide 3: Table of contents
Table of contents 1. Overview … 04 – 07 2. Performance Highlights – September 2013 … 08 - 09 3. Branch Network … 10 - 11 4. Ownership Pattern … 12 - 14 5. Management … 15 – 18 6. Financial Performance & Business Profile … 19 - 40 3
Slide 4: 1. Overview
1. Overview 4
Slide 5: Showcasing steady performance on an ongoing basis
Showcasing steady performance on an ongoing basis … The oldest Private Sector Bank in the Country having 100+ years of operations – Continuous Track Record Profitability – Dividend pay out in all 100 + years of existence Growth Business growing at CAGR 25% - Net Profit CAGR at 25% in the last 5 Year
Slide 6: A specialized banking model aligned to Target Segment – SME / MSME
City Union Bank – A specilized banking model aligned to Target Segment – SME / MSME SME/MSME specialized business model focusing on large untapped SME/ MSME Segment consistently delivering higher yields focus Superior client servicing leading to client retention and low business acquisition costs SM
Slide 7: Key milestones
Key milestones 2009 2003 Rights issue @ 1 : 4 – to reward Obtained licenses to act as a the existing shareholders agent for procuring life insurance & general insurance business 1998 Initial Public Offering (IPO); Listing Bank’s shares on the 2012 BSE, NSE & MSE Rights Issue @ 1 : 4 – to reward the
Slide 8: 2. Performance Highlights – Nine months period ended FY 2014
2. Performance Highlights – Nine months period ended FY 2014 8
Slide 9: 9M FY 2013-14 Performance – A snapshot
9M FY 2013-14 Performance – A snapshot Deposits increased by 11% from Rs.190,441 Mn to Rs.211,160 Mn Y-o-Y Advances registered a growth of 9% from Rs.145,124 Mn to Rs.158,248 Mn Y-o-Y Gross Profit registered a growth of 17% from Rs.3,738 Mn to Rs.4,370 Mn Y-o-Y Net Profit increased from Rs.2,395 Mn
Slide 10: 3. Branch Network
CUB 3. Branch Network
Slide 11: Strong presence in the South
Strong presence in the South A network of 406 branches of which 357 branches are located in South India and 270 in Tamil Nadu alone State No. of % of Branches Business Tamilnadu 270 71 Andhra Pradesh 51 8 3 1 Karnataka 24 6 1 Maharashtra 17 7 6 Kerala 12 2 3 4 Gujarat 6 2 Others 26 4 1 Total 406 6 2
Slide 12: 4. Ownership Pattern
CUB 4. Ownership Pattern
Slide 13: A well diversified investor base
A well diversified investor base Ownership profile Domestic Institutions, Corp. Bodies, 8.01% 12.44% FII's, 29.19% Others, 0.26% Public, 50.10% Well diversified ownership exceeding 90000 Long term investors ensuring stability and support to management Higher Participation from FII’s 13
Slide 14: A well diversified investor base – Major Institutional Shareholders
A well diversified investor base Major Institutional Shareholders Shareholders % of holding L & T Unnati Finance Ltd. 4.59 GKFF Ventures 4.36 FMO, Nederlandse 4.35 LIC of India 4.02 Regal Investment and Trading Co. Pvt Ltd 2.03 Wasatch Core Growth Fund 2.02 Acacia Partners 2.00 Emblem 1.75 14
Slide 15: 5. Management
CUB 5. Management
Slide 16: Transparent 'Corporate Governance' practices
Transparent ‘Corporate Governance’ practices Board consists of 8 Independent Directors and 2 Non-Independent Directors Various sub-committees of Board functions to oversee the operations of the Bank Code of conduct for directors and senior management put in place Disclosure norms strictly adhered to
Slide 17: A well experienced and strong Board (1/2)
A well experienced and strong Board (1/2) Name Profile He holds a Master degree in Mathematics, CAIIB and PGDFM and has 40 years of experience in Mr. S. Balasubramanian, the banking industry. He joined City Union Bank in 1971 as a probationary officer and was Chairman associated with the Bank in var
Slide 18: A well experienced and strong Board (2/2)
A well experienced and strong Board (2/2) Name Profile Mr. T.K. Ramkumar, He is a graduate in Commerce and Law specialized in Banking law, Company law and Director Intellectual Property Rights. He is one of the leading Lawyers in Chennai. Justice (Retd.) He is a former Judge of High Court of Madras
Slide 19: 6. Financial Performance and Business Profile
6. Financial Performance and Business Profile 19
Slide 20: 9M FY 2013-14 Performance – A snapshot
9M FY 2013-14 Performance – A snapshot HIGHLIGHTS FOR THE PERIOD ENDED 31st DECEMBER 2013 Deposits Advances Deposits increased by 11% to Rs.211,160 Mn from Rs.190,441 Mn 11% 9% Advances increased by 9% from Rs.145,124 Mn to Rs.158,248 Mn Total Business grew by 10% from Rs.335,564 Mn to Rs.369,408 Mn
Slide 21: FY 2012-13 Performance – A snapshot
FY 2012-13 Performance – A snapshot HIGHLIGHTS FOR THE YEAR ENDED 31st MARCH 2013 Deposits Advances Deposits increased by 24% to Rs.203,048 Mn from Rs.163,408 Mn 24% 26% Advances increased by 26% from Rs.122,217 Mn to Rs.153,429 Mn Total Business grew by 25% from Rs.285,625 Mn to Rs.356,477 Mn CASA
Slide 22: 9M FY 13-14 Vs 9M FY 12-13 – Performance – A snapshot
9M FY 13-14 Vs 9M FY 12-13 – Performance – A snapshot Financial Performance (in INR Mn) Particulars 9 M FY 9 M FY % FY Growth 2013-14 2012-13 Growth 2012-13 Deposits 211160 190441 20720 11% 203048 Advances 158248 145124 13124 9% 153429 Total Business 369408 335564 33844 10% 356477 Demand Deposits 14
Slide 23: 9M FY 13-14 Vs 9M FY 12-13 – Performance – A snapshot
9M FY 13-14 Vs 9M FY 12-13 – Performance – A snapshot Financial Performance (in INR Mn) 9M FY 9M FY FY Particulars Growth % Growth 2013-14 2012-13 2012-13 Net Interest Income 5747 4507 1240 28% 6240 Other Income 2104 1931 173 9% 2736 Operating Expenses 3481 2700 781 29% 3742 Gross Profit 4370 3738 6
Slide 24: Q3 FY 13-14 Vs Q3 FY 12-13 – Performance – A snapshot
Q3 FY 13-14 Vs Q3 FY 12-13 – Performance – A snapshot Financial Performance (in INR Mn) Q3 FY Q3 FY FY Particulars Growth % Growth 2013-14 2012-13 2012-13 Net Interest Income 1975 1634 341 21% 6240 Other Income 648 659 -11 -ve 2736 Operating Expenses 1277 980 297 30% 3742 Gross Profit 1347 1313 34 3
Slide 25: 9M FY 13-14 Vs 9M FY 12-13 – Income and Expenses – Breakup
9M FY 13-14 Vs 9M FY 12-13 – Income and Expenses – Breakup (in INR Mn) Interest Income Breakup Interest Expenses Breakup 9M FY 9M FY 9M FY 9M FY Particulars Growth Particulars Growth 13-14 12-13 13-14 12-13 Interest on Loans 15725 13153 20% Int Exp on Deposits 12955 10932 19% Interest on Investments
Slide 26: Q3 FY 13-14 Vs Q3 FY 12-13 – Income and Expenses – Breakup
Q3 FY 13-14 Vs Q3 FY 12-13 – Income and Expenses – Breakup (in INR Mn) Interest Income Breakup Interest Expenses Breakup Q3 FY Q3 FY Q3 FY Q3 FY Particulars Growth Particulars Growth 13-14 12-13 13-14 12-13 Interest on Loans 5327 4614 15% Int Exp on Deposits 4341 3737 16% Interest on Investments 111
Slide 27: Key Business Indicators
Key Business Indicators Key indicators Particulars 9M 9M Q3 Q3 FY FY 13-14 FY 12-13 FY 13-14 FY 12-13 2013 Cost of Deposits 8.40% 8.43% 8.32% 8.31% 8.44% Yield on Advances 13.54% 13.48% 13.52% 13.44% 13.49% Yield on Investments 7.33% 7.16% 7.39% 7.17% 7.19% Net Interest Margin 3.56% 3.32% 3.62% 3.45
Slide 28: Strong Deposits and Advances growth
Strong Deposits and Advances growth Deposits Advances 5% 6% R2 203048 211160 A GR2 153429 158248 CA G C 163408 122217 129143 93290 102846 68967 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 31-Dec-13 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 31-Dec-13 Business CASA % % R 25 R 18 369408 36924 356476 CAG CAG
Slide 29: Income Growth over the years
Income Growth over the years … Net Interest Income Growth Other Income Growth 6240 2736 5747 4998 2071 2104 4200 1574 1435 2781 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 31-Dec-13 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 31-Dec-13 CEB Growth Net Profit Growth 1727 3220 2803 1429 2637 1289 2151 992 1528
Slide 30: Cost of deposits & Yield on advances
Cost of deposits & Yield on advances Cost of Deposits and Yield on Advances 13.56 13.49 13.54 13.46 12.82 13.04 12.47 11.36 11.32 11.00 10.85 8.44 7.98 7.73 8.40 7.23 8.11 6.96 6.94 6.08 5.95 5.75 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Dec-13 Spread between cost of deposits and yield on a
Slide 31: Key Business Ratios - Yearwise
Key Business Ratios - Yearwise Net Interest Margin Return on Assets 3.40% 3.49% 3.56% 3.64% 3.15% 3.35% 1.71% 1.67% 1.58% 1.50% 1.52% 1.47% 31-Mar-09 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 31-Dec-13 31-Mar-09 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 31-Dec-13 Cost of Funds Yield on Funds 10.34% 10.6
Slide 32: Efficiency
Efficiency (Rs in Mn) Business per Employee Profit per Employee 93.8 0.84 0.85 0.84 87.8 0.80 84.7 78.1 65.1 0.6 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 31-Dec-13 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 31-Dec-13 32
Slide 33: Loan Book – Products Composition
Loan Book – Products Composition Amount % to Total Working capital loans yielding higher interest Loan Book Products Composition (INR Mn) Advances constitute 65% of advances Cash Credit & Demand Loans 102427 65% Re-pricing possible at short intervals thus Term Loans 51920 33% reducing interest rate
Slide 34: Loan book – Composition
Loan book – Composition Sectoral Deployment as on 31st December 2013 Secured & Unsecured Advances Amount % to Total Amount % to Total Particulars Particulars (INR Mn) Advances (INR Mn) Advances Agriculture (includes AJL – 20151 Mn) 23707 15% Secured Loans 155341 98% MSME 43654 27% Unsecured Loans 29
Slide 35: Loan Book – Sectoral Deployment
Loan Book – Sectoral Deployment Sectoral Deployment chart NB FC Others INF RA 2% 4% 1% L A D 4% Pers onal L oan 2% Hous ing 4% A G RI 15% J L Non A gri 7% CRE 5% MS ME 27% Whls ale Trade 11% Retail Trade 7% L arge Ind 11% 35
Slide 36: Loan Book – Advances to Major Industries
Loan Book – Advances to Major Industries Advances to Major Industries as on 31st December 2013 Amount % to Total Industry Name (in INR Mn) Advances Textiles a) Cotton 8165 5% b) Other Textiles 3031 2% Metals a) Iron & Steel 7743 5% b) Other Metals 1936 1% Paper & Paper Products 3645 2% Food Processi
Slide 37: Asset Quality
Asset Quality (Rs in Mn) Gross NPA Qtm & Gross NPA % Net NPA Qtm & Net NPA % 2632 2689 1393 1311 964 1731 1.70% 1235 0.89% 1125 0.83% 484 540 1.66% 0.63% 1.21% 1.13% 0.52% ` 1.01% 0.44% 31-Mar-11 31-Mar-12 31-Mar-13 30-Sep-13 31-Dec-13 31-Mar-11 31-Mar-12 31-Mar-13 30-Sep-13 31-Dec-13 37
Slide 38: Asset Quality Position – Movement over the years
Asset Quality Position – Movement over the years FY FY FY H1 FY Q3 FY (Rs in Mn) Mar-11 Mar-12 Mar-13 13-14 13-14 NPA Opening balance 882 1125 1235 1731 2632 Additions A 1207 1444 2234 1879 907 Recovery made 376 649 486 417 552 Upgradations 114 165 232 79 39 Net Addition B 717 630 1516 1383 316 Writ
Slide 39: Restructured Accounts
Restructured Accounts Balance outstanding as on 31.12.2013 in respect of Restructured borrowers: Type Restructuring No. of Amount Borrowers (in INR Mn) Under CDR Mechanism 2 329 Under SME Debt Restructuring Mechanism 12 484 Under Other Debt Restructuring Mechanism 7 2208 Total 21 3021 During the Dec
Slide 40: Investments – At a Glance
Investments – At a Glance Investments Breakup and Categorywise (in INR Mn) Particulars DEC 2013 DEC 2012 Sovereign Bonds 50931 41719 Corporate Bonds, RIDF, etc. 7683 6785 Equity Shares & Equity oriented MFs 300 387 Total Investments 58914 48891 Yield on Investments 7.33% 7.16% Investments Breakup: -
Slide 41: Thank You
Thank You 41
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