City Union Bank Limited · NSE:CUB
City Union Bank — Q3 FY2025 Earnings Presentation
51 slides from City Union Bank's earnings presentation, Jan 31, 2025
Slide 1: Exchange filing cover letter
trIrV UNItrN BeNrc LIvIITED CIN : 1651 1 0TN1 904P1C001287 Regd. Office : 149, T.S.R.(Big) Street, Kumbakonam - 612 001. Thanjavur District. TamilNadu. trUB IRUSIAXD EXCET.LEICe llrcE ttoa Telephone No:0435 -2402322 Fax:0435 -2431746 E-mail : shares@cityunionbank.com Website : www.cityunionbank.com
Slide 2: Investor Presentation December 2024
INVESTOR PRESENTATION DECEMBER 2024
Slide 3: 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. Certai
Slide 4: Table of Contents
Table of Contents Overview ........................................................................................................................ 04 Performance Highlights – December 2024 ......................................................................... 10 Financial Performance & Business
Slide 5: Overview
OVERVIEW 04
Slide 6: Facts & Figures
Overview City Union Bank Ltd., the oldest Private Sector Bank in India, was founded on October 31, 1904, and is headquartered in Kumbakonam, Tamil Nadu, India. The main focus of the Bank – lending to MSME, Retail / Wholesale Trade with a granular asset profile including providing Short-term and long
Slide 7: Key Milestones
KEY MILESTONES 1998 Initial Public 1957 Offering (IPO); Took over Listing bank’s 1904 Common shares on the Incorporation Wealth BSE, NSE & MSE 06 of Bank Limited the Bank 02 04 03 1965 05 2002 01 1945 Scheduled bank Amalgamation Entered into since of ‘The City Forward Bank agreement with 22.03.1945
Slide 8: City Union Bank: Specialized Banking Model for SME/MSME
CITY UNION BANK A SPECIALIZED BANKING MODEL ALIGNED TO TARGET SEGMENT – SME / MSME Prudent Risk Invested in Robust Purely retail Liability SME / MSME focus Management Infrastructure Franchise SME/MSME specialized SME exposures’ result in Comprehensive employee No Certificate of Deposit busin
Slide 9: Competitive Advantages
COMPETITIVE ADVANTAGES NETWORK STRONG TRACK RECORD • Continuous profitability and dividend • Pan India presence with 822 branches payout in all 121 years of operations • Strong presence in South India (705 • Business growth of about 15% CAGR in branches) of which 533 are in last 10 years Tamil Nadu
Slide 10: Credit Rating
CREDIT RATING ICRA has assigned • “AA-” for Long Term - issuers with this rating are considered to have “High Degree of Safety” regarding timely servicing of financial obligations. • “A1+” for Certificate of Deposits (CD) - issuers with this rating are considered to have “Very Strong Degree of Safet
Slide 11: Performance Highlights – December 2024
PERFORMANCE HIGHLIGHTS – DECEMBER 2024 10
Slide 12: Q3 FY Performance – A Snapshot
Q3 FY 25 PERFORMANCE – A SNAPSHOT • Deposits increased by 11% from Rs. 527 Bn to Rs. 583 Bn Y-o-Y • Advances registered a growth of 15% from Rs.440 Bn to Rs.504 Bn Y-o-Y • The total business grew by 12% from Rs.967 Bn to Rs. 1087 Bn Y-o-Y • Profitability and efficiency ratios : PARTICULARS Q3 FY 25
Slide 13: Q3 FY25 vs Q3 FY24 Performance – A Snapshot
Q3 FY 25 VS Q3 FY 24 PERFORMANCE – A SNAPSHOT (in INR Mn) 582,713 504,093 1,086,806 161,319 11% 15% 12% 5% 527,264 440,173 967,437 153,589 Deposits Advances Total Business CASA 4,360 2,860 5,877 46.58 20% 13% 14% % % 3,641 2,531 5,159 48.64 % Gross Net Profit Net Interest Cost to Income Profit Incom
Slide 14: 9M FY25 vs 9M FY24 Performance – A Snapshot
9M FY 25 VS 9M FY 24 PERFORMANCE – A SNAPSHOT (in INR Mn) 582,713 504,093 1,086,806 161,319 11% 15% 12% 5% 527,264 440,173 967,437 153,589 Deposits Advances Total Business CASA 12,376 8,356 17,154 47.61 6% 10% 9% % % 11,649 7,609 15,769 45.65 % Gross Net Profit Net Interest Cost to Income Profit Inc
Slide 15: FY24 vs FY23 Performance – A Snapshot
FY 24 VS FY 23 PERFORMANCE – A SNAPSHOT (in INR Mn) 556,566 464,815 1,021,381 170,502 6% 6% 6% 9% 523,979 439,708 963,687 156,569 Deposits Advances Total Business CASA 15,167 10,157 21,235 47.06 - ve 8% - ve % % 18,180 9,375 21,628 38.85 % Gross Net Profit Net Interest Cost to Income Profit Income 1
Slide 16: Financial Performance & Business Profile
FINANCIAL PERFORMANCE & BUSINESS PROFILE 15
Slide 17: 9M FY25 vs 9M FY24 Performance - Financial Performance
9M FY 25 VS 9M FY 24 PERFORMANCE - A SNAPSHOT (in INR Mn) FINANCIAL PERFORMANCE PARTICULARS 9M FY 2025 9M FY 2024 INC / (DEC) Growth Growth % Q2 FY 2025 Deposits 582,713 527,264 55,449 11% 573,691 Advances 504,093 440,173 63,920 15% 487,220 Total Business 1,086,806 967,437 119,369 12% 1,060,911 Dema
Slide 18: 9M FY25 vs 9M FY24 Performance - Profit and Loss
9M FY 25 VS 9M FY 24 PERFORMANCE - A SNAPSHOT FINANCIAL PERFORMANCE (in INR Mn) PARTICULARS 9M FY 25 9M FY 24 INC / (DEC) Growth % Net Interest Income 17,154 15,769 1,385 9% Other Income 6,468 5,664 804 14% Operating Expenses 11,246 9,784 1,462 15% Gross Profit 12,376 11,649 727 6% Provisions & Cont
Slide 19: Q3 FY25 vs Q3 FY24 Performance
Q3 FY 25 VS Q3 FY 24 PERFORMANCE - A SNAPSHOT FINANCIAL PERFORMANCE (in INR Mn) PARTICULARS Q3 FY 25 Q3 FY 24 INC / (DEC) Growth % Net Interest Income 5,877 5,159 718 14% Other Income 2,284 1,929 355 18% Operating Expenses 3,801 3,447 354 10% Gross Profit 4,360 3,641 719 20% Provisions & Contingenci
Slide 20: FY24 vs FY23 Performance - Financial Performance
FY 24 VS FY 23 PERFORMANCE - A SNAPSHOT (in INR Mn) FINANCIAL PERFORMANCE PARTICULARS FY 2024 FY 2023 INC / (DEC) Growth Growth % Deposits 556,566 523,979 32,587 6% Advances 464,815 439,708 25,107 6% Total Business 1,021,381 963,687 57,694 6% Demand Deposits 54,888 47,637 7,251 15% Saving Deposits 1
Slide 21: FY24 vs FY23 Performance - Profit and Loss
FY 24 VS FY 23 PERFORMANCE - A SNAPSHOT FINANCIAL PERFORMANCE (in INR Mn) PARTICULARS FY 24 FY 23 INC / (DEC) Growth % Net Interest Income 21,235 21,628 -393 -2% Other Income 7,416 8,104 -688 -8% Operating Expenses 13,484 11,552 1,932 17% Gross Profit 15,167 18,180 -3,013 -17% Provisions & Contingen
Slide 22: Provisions & Contingencies – Breakup
PROVISIONS & CONTINGENCIES – BREAKUP (in INR Mn) PARTICULARS Q3 FY 25 Q3 FY 24 9M FY 25 9M FY 24 FY 2024 Provision for: - Tax 750 650 2,180 1,500 2,150 - Bad Debts 750 260 1,770 2,940 3,270 - Contingencies - 200 70 (190) -170 - Standard Assets - - - (210) -170 - Restructuring - - - - -70 - Others -
Slide 23: Q3 FY25 vs Q3 FY24 – Income and Expenses Breakup
Q3 FY 25 VS Q3 FY 24 – INCOME AND EXPENSES BREAKUP INTEREST INCOME BREAKUP INTEREST EXPENSES BREAKUP (in INR Mn) PARTICULARS Q3 FY 25 Q3 FY 24 Growth % PARTICULARS Q3 FY 25 Q3 FY 24 Growth % Interest on Loans 11,990 10,359 16% Int Exp on Deposits 8,390 7,396 13% Interest on Investments 2,689 2,465 9
Slide 24: 9M FY25 vs 9M FY24 – Income and Expenses Breakup
9M FY 25 VS 9M FY 24 – INCOME AND EXPENSES BREAKUP INTEREST INCOME BREAKUP INTEREST EXPENSES BREAKUP (in INR Mn) PARTICULARS 9M FY 25 9M FY 24 Growth % PARTICULARS 9M FY 25 9M FY 24 Growth % Interest on Loans 34,289 30,728 12% Int Exp on Deposits 24,010 21,416 12% Interest on Investments 8,020 7,072
Slide 25: FY24 vs FY23 – Income and Expenses Breakup
FY 24 VS FY 23 – INCOME AND EXPENSES BREAKUP INTEREST INCOME BREAKUP INTEREST EXPENSES BREAKUP (in INR Mn) PARTICULARS FY 24 FY 23 Growth % PARTICULARS FY 24 FY 23 Growth % Interest on Loans 41,534 38,009 9% Int Exp on Deposits 28,990 22,804 27% Interest on Investments 9,589 8,351 15% Other Int Expe
Slide 26: Deposits and Advances Growth – Over the Years
DEPOSITS AND ADVANCES GROWTH – OVER THE YEARS DEPOSITS ADVANCES (in INR Mn) 5,82,713 5,04,093 5,56,566 4,39,708 4,64,815 5,23,979 4,11,560 4,45,370 4,76,897 3,70,206 31-03-2021 31-03-2022 31-03-2023 31-03-2024 31-12-2024 31-03-2021 31-03-2022 31-03-2023 31-03-2024 31-12-2024 BUSINESS CASA 1,70,502 1
Slide 27: Income Growth Over the Years
INCOME GROWTH OVER THE YEARS… (in INR Mn) NET INTEREST INCOME OTHER INCOME (9 M) 8,104 (9 M) 21,628 21,235 7,591 7,417 19,165 6,887 6,468 18,297 17,154 31-03-2021 31-03-2022 31-03-2023 31-03-2024 31-12-2024 31-03-2021 31-03-2022 31-03-2023 31-03-2024 31-12-2024 CEB NET PROFIT (9 M) 3,598 3,338 3,166
Slide 28: Key Business Indicators
KEY BUSINESS INDICATORS PARTICULARS Q3 FY 25 Q3 FY 24 9M FY 25 9M FY 24 Q2 FY 25 FY 24 Cost of Deposits 5.88% 5.67% 5.78% 5.51% 5.75% 5.59% Yield on Advances 9.81% 9.62% 9.74% 9.64% 9.81% 9.72% Yield on Investments 6.49% 6.31% 6.50% 6.23% 6.54% 6.27% Net Interest Margin 3.58% 3.50% 3.59% 3.63% 3.67%
Slide 29: Key Business Ratios – Yearly Trends
KEY BUSINESS RATIOS – YEARLY TRENDS NET INTEREST MARGIN RETURN ON ASSETS 5.00% 1.70% 1.56% 1.60% 1.52% 4.50% 1.46% 1.50% 1.40% 1.35% 4.00% 3.98% 4.00% 3.89% 1.30% 3.65% 3.59% 1.20% 1.15% 3.50% 1.10% 1.00% 3.00% 0.90% 31-MAR-21 31-MAR-22 31-MAR-23 31-MAR-24 31-DEC-24 31-MAR-21 31-MAR-22 31-MAR-23 31-
Slide 30: Cost of Deposits & Yield on Advances
COST OF DEPOSITS & YIELD ON ADVANCES (in %) 14 13.18 12.83 12.10 12 11.46 10.95 10.76 9.91 9.72 9.74 10 9.36 9.23 8.15 8 7.62 6.82 6.29 6.17 6.20 5.59 5.78 6 5.36 4.68 4.66 4 2 0 Mar 15 Mar 16 Mar 17 Mar 18 Mar 19 Mar 20 Mar 21 Mar 22 Mar 23 Mar 24 Dec 24 Spread between cost of deposits and yield on
Slide 31: Loan Book – Products Composition
LOAN BOOK – PRODUCTS COMPOSITION Trading & MSME loans constitute about 42% % to Total Advances 1% Diversified credit portfolio reduces credit risk and Lower ticket size backed by adequate collaterals Bills Purchased & Bills Discounted Term Loan Loan Book Products Amount % toTotal Composition (INR Mn
Slide 32: Loan Book Sectoral Deployment – Position as on 31.12.2024
LOAN BOOK SECTORAL DEPLOYMENT – POSITION AS ON 31.12.2024 LAD Retail Traders (in INR Mn) 7,731 5,802 Large Industries 5,946 Wholesale Traders 9,444 Infrastructure 1% 2,975 Personal Loan 12,813 1% 1% 2% 2% NBFC 3% 15,854 3% Housing 23,980 5% 39% C R E 6% 31,516 SECTORAL MSME DEPLOYMENT 198,113 Others
Slide 33: Loan Book – Advances to Major Industries
Corporate Governance Loan Book – Advances to Major Industries (in I N R M n ) Advances to Major Industries 31st December 2024 TEXTILE a) Cotton 13,270 (2%) b) Other Textiles 29,532 (6%) METALS a) Iron & Steel 12,795 (2%) Amount % to Total Industry Name b) Other Metals 7,509 (1%) (in INR Mn) Advances
Slide 34: Gold Loan Book – 31st December 2024
GOLD LOAN BOOK – 31st December 2024 (in INR Mn) GOLD LOAN PORTFOLIO Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Gold Loan – Agriculture 60,639 56,847 61,130 64,418 69,144 70,870 Gold Loan – Non-Agriculture 48,159 49,063 49,317 50,214 54,646 58,925 Total Gold Loans 108,798 105,910 110,447 114,632 123,7
Slide 35: Asset Quality
ASSET QUALITY (in INR Mn) GROSS NPA QTM & GROSS NPA % NET NPA QTM & NET NPA % 18,932 19,332 19,202 18,544 11,911 16,930 10,752 10,176 5.11% 8,987 4.70% 7,015 4.37% 2.97% 2.95% 3.99% 2.36% 1.97% 3.36% 1.42% 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-Dec-24 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-D
Slide 36: Asset Quality Position – Movement Over the Years
ASSET QUALITY POSITION – MOVEMENT OVER THE YEARS (In INR MN) FY MAR-20 FY MAR-21 FY MAR-22 FY MAR-23 FY MAR-24 31-DEC-24 NPA Opening balance 9,771 14,134 18,932 19,332 19,202 18,544 Additions A 11,104 11,131 12,757 13,290 10,135 5,554 Recovery made 1,644 1,950 4,424 5,764 5,056 4,399 Upgradations 1,
Slide 37: Restructured Accounts
RESTRUCTURED ACCOUNTS Quarter wise balance outstanding in respect of Restructured Standard borrowers (In INR Mn) Sep-21 Mar-22 Mar-23 Mar-24 Dec-24 Type of Restructuring No. of No. of No. of No. of No. of Amt Amt Amt Amt Amt Borrowers Borrowers Borrowers Borrowers Borrowers MSME 333 15,398 395 15,03
Slide 38: Investments – At a Glance
INVESTMENTS – AT A GLANCE Investments Breakup and Category wise (in INR Mn) Particulars DEC-2024 SLR Securities 158,264 Non-SLR Securities 1,591 Total Investments 159,855 Yield on Investments 6.50% Investments Breakup: - A FS 24,325 (15%) - H TM 133,734 (83%) - FVTPL (including H F T) 1,796 (2%) Tot
Slide 39: Technology Adoption
TECHNOLOGY ADOPTION 38 35
Slide 40: Digital Offerings
Digital Offerings Product Offerings 01 02 03 04 05 Loan ONDC for National Common UPI Circle / Credit Card New Initiatives Against MSME & Mobility Card UPI Lite on UPI Securities Retail (NCMC) Whatsapp Credit Line Pay to UPI Products Banking e - BG on UPI Contact ATM Data AI/ Technology/ Voice Biomet
Slide 41: Strategic Partnerships
Strategic Partnerships Account Digital Opening Lending Payments API BANKING Correspondent Customer Banking Digital Onboarding Insurance 0 40 39 7
Slide 42: Awards Received During Q3
Awards Received During Q3 City Union Bank has received Indian Banks’ Association (IBA) Technology Awards in all the Seven categories for the second year in a row 20th Banking Technology Conference, Expo & Citations, 2024 24th Jan 2025, Mumbai 41 40
Slide 43: Awards Received During Q3
Awards Received During Q3 The TechSenate South Awards The ET BFSI Exceller Awards FINANCIAL EXPRESS FUTECH 2024 2024 AWARDS 42
Slide 44: Branch Network
BRANCH NETWORK 43
Slide 45: Pan India Presence with Strong Foothold in the South
PAN INDIA PRESENCE WITH STRONG FOOTHOLD IN THE SOUTH No. of % of % of % of STATE Branches Deposits Advances Business TAMILNADU 533 80% 66% 73% ANDHRAPRADESH 56 2% 6% 4% KARNATAKA 52 6% 5% 5% TELENGANA 41 3% 6% 4% GUJARAT 27 1% 3% 2% MAHARASHTRA 27 3% 4% 4% KERALA 18 1% 2% 2% RAJASTHAN 18 1% 2% 1% OT
Slide 46: Shareholding Pattern
SHAREHOLDING PATTERN 45
Slide 47: A Well Diversified Investor Base
A WELL DIVERSIFIED INVESTOR BASE Position as on 31-Dec-2024 Major Institutional Shareholders QIB, NRI, SHAREHOLDERS* HOLDING % 3.80 1.01 HDFC AMC * 8.41 SBI Mutual Fund * 8.38 Corp Bodies, Others, CAPITAL GROUP USA * 5.99 2.27 2.43 ICICI PRUDENTIAL FUND 2.80 FRANKLIN MUTUAL FUND 2.62 AXIS MUTUAL FUN
Slide 48: Corporate Governance
CORPORATE GOVERNANCE 47
Slide 49: A Well Experienced and Strong Board
A WELL EXPERIENCED AND STRONG BOARD Shri. G. Mahalingam| M.Sc., MBA., CAIIB Dr N. Kamakodi | B.Tech., MBA., PhD., CAIIB Non-Executive Chairman M.D. & C.E.O. Shri. Gurumoorthy Mahalingam is a career Regulator in the Financial Dr. N. Kamakodi is serving as MD & CEO of the Bank from May 2011. He Sector
Slide 50: Transparent Corporate Governance Practices
TRANSPARENT ‘CORPORATE GOVERNANCE’ PRACTICES Board consists Various sub- of 8 Independent committees of Code of conduct Directors (including Board functions Disclosure norms KYC / AML Norms for Directors and 1 Women Director), to oversee the strictly adhered to strictly complied Senior Management Ex
Slide 51: Contact
Contact Regd. Office : 149,TSR Big Street, Kumbakonam – 612001,Tamilandu. Admin Office : "Narayana" No.24 B, Gandhi Nagar, Kumbakonam - 612001,Tamil Nadu. Tel : 0435-2402322, 2401622, | FAX: 0435-2431746 | www.cityunionbank.com INVESTOR CONTACT Raguraman Gopu, SM Locate us @ Mob: + 91 77088 49222 Em