City Union Bank Limited · NSE:CUB
City Union Bank — Investor Presentation (June 2013)
39 slides from City Union Bank's investor presentation, June 2013
Slide 1: Investor Presentation – June 2013
INVESTOR PRESENTATION – JUNE 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 – 06 2. Outcome of Board Meeting – May 2013 … 08 - 09 3. Branch Network … 10 - 11 4. Ownership Pattern … 12 - 14 5. Management … 15 – 18 6. Financial Performance & Business Profile … 19 - 38 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 27% - Net Profit CAGR at 26% 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 Co
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. Outcome of Board Meeting – JULY 2013
2. Outcome of Board Meeting – JULY 2013 8
Slide 9: Q1 FY 2013-14 Performance – A snapshot
Q1 FY 2013-14 Performance – A snapshot Deposits increased by 20% from Rs.170,620 Mn to Rs.205,165 Mn Y-o-Y Advances registered a growth of 20% from Rs.127,732 Mn to Rs.153,877 Mn Y-o-Y Gross Profit registered a growth of 42% from Rs.1,142 Mn to Rs.1,616 Mn Y-o-Y Net Profit increased from Rs.739 Mn t
Slide 10: 3. Branch Network
CUB 3. Branch Network
Slide 11: Strong presence in the South
Strong presence in the South A network of 382 branches of which 336 branches are located in South India and 251 in Tamil Nadu alone State No. of % of Branches Business Tamilnadu 251 71 Andhra Pradesh 49 9 3 1 Karnataka 24 6 1 Maharashtra 17 7 6 Kerala 12 2 3 4 Gujarat 6 1 Others 23 4 1 Total 382 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, FII, FDI & NRI, 7.3% 29.3% Corp. Bodies, 12.1% Others, 0.1% Public, 51.2% 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 Argonaut Ventures 4.36 FMO, Nederlandse 4.35 LIC of India 4.02 Regal Investment and Trading Co. Pvt Ltd 2.03 Acacia Partners 2.00 Wasatch Core Growth Fund 1.95 Emblem 1.66 Morga
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: Q1 FY 2013-14 Performance – A snapshot
Q1 FY 2013-14 Performance – A snapshot HIGHLIGHTS FOR THE QUARTER ENDED 30th JUNE 2013 Deposits Advances Deposits increased by 20% to Rs.205,165 Mn from Rs.170,620 Mn 20% 20% Advances increased by 20% from Rs.127,732 Mn to Rs.153,877 Mn Total Business grew by 20% from Rs.298,352 Mn to Rs.359,042 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: Q1 FY 13-14 Vs Q1 FY 12-13 – Performance – A snapshot
Q1 FY 13-14 Vs Q1 FY 12-13 – Performance – A snapshot Financial Performance (in INR Mn) Particulars Q1 FY Q1 FY % FY Growth 2013-14 2012-13 Growth 2012-13 Deposits 205165 170620 34545 20% 203048 Advances 153877 127732 26145 20% 153429 Total Business 359042 298352 60690 20% 356477 Demand Deposits 122
Slide 23: Q1 FY 13-14 Vs Q1 FY 12-13 – Performance – A snapshot
Q1 FY 13-14 Vs Q1 FY 12-13 – Performance – A snapshot Financial Performance (in INR Mn) Particulars Q1 FY Q1 FY Growth % Growth FY 2013-14 2012-13 2012-13 Net Interest Income 1874 1379 495 36% 6240 Other Income 838 628 210 33% 2736 Operating Expenses 1096 865 231 27% 3742 Gross Profit 1616 1142 474
Slide 24: Income and Expenses – Breakup
Q1 FY 13-14 Vs Q1 FY 12-13 – Income and Expenses – Breakup (in INR Mn) Interest Income Breakup Interest Expenses Breakup Q1 FY Q1 FY Q1 FY Q1 FY Particulars Growth Particulars Growth 13-14 12-13 13-14 12-13 Interest on Loans 5178 4153 25% Int Exp on Deposits 4248 3511 21% Interest on Investments 102
Slide 25: Key Business Indicators
Key Business Indicators Key indicators Particulars Q1 FY 13-14 Q1 FY 12-13 FY 2013 Cost of Deposits 8.43% 8.50% 8.44% Yield on Advances 13.45% 13.43% 13.49% Yield on Investments 7.30% 7.10% 7.19% Net Interest Margin 3.55% 3.18% 3.35% Cost to Income 40.42% 43.10% 41.69% Cost of Funds 7.50% 7.78% 7.66
Slide 26: Strong Deposits and Advances growth
Strong Deposits and Advances growth Deposits Advances R 26% R2 7% CA G 203048 205165 CA G 153429 153877 163408 122217 129143 93290 102846 68967 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 30-Jun-13 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 30-Jun-13 Business CASA % % R 27 356476 359042 CAG R 20 CAG 34046
Slide 27: Income Growth over the years
Income Growth over the years … Net Interest Income Growth Other Income Growth 6240 2736 4998 2071 4200 1574 1435 2781 1874 838 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 30-Jun-13 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 30-Jun-13 CEB Growth Net Profit Growth 1727 3220 2803 1289 2151 992 1528 690 523 90
Slide 28: Cost of deposits & Yield on advances
Cost of deposits & Yield on advances Cost of Deposits and Yield on Advances 13.56 13.49 13.45 13.46 12.82 13.04 12.47 11.36 11.32 11.00 10.85 8.44 7.98 7.73 8.43 7.23 8.11 6.96 6.94 6.08 5.95 5.75 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Jun-13 Spread between cost of deposits and yield on a
Slide 29: Key Business Ratios - Yearwise
Key Business Ratios - Yearwise Net Interest Margin Return on Assets 3.64% 3.49% 3.40% 3.35% 3.22% 3.15% 1.71% 1.67% 1.60% 1.58% 1.50% 1.52% 31-Mar-08 31-Mar-09 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 31-Mar-08 31-Mar-09 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 Cost of Funds Yield on Funds 10.71% 10.3
Slide 30: Efficiency
Efficiency (Rs in Mn) Business per Employee Profit per Employee 93.8 0.93 91.8 84.7 0.84 0.85 78.1 0.80 65.1 0.6 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 30-Jun-13 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 30-Jun-13 30
Slide 31: Loan Book – Products Composition
Loan Book – Products Composition Amount Working capital loans yielding higher interest % to Total Loan Book Products Composition (in INR Advances constitute 66% of advances Mn) ODCC & Demand Loans 101895 66% Re-pricing possible at short intervals thus Term Loans 49189 32% reducing interest rate risk
Slide 32: Loan book – Composition
Loan book – Composition Sectoral Deployment as on 30th June 2013 Secured & Unsecured Advances Amount % to Total Amount % to Total Particulars (in INR Particulars Advances (INR Mn) Advances Mn) Agriculture (includes AJL – 20216 Mn) 24229 16% Secured Loans 150869 98% MSME 42182 27% Unsecured Loans 300
Slide 33: Loan Book – Sectoral Deployment
Loan Book – Sectoral Deployment Sectoral Deployment chart LA D INFRA NBFC Other s Per sonal Loan 2% 1% 1% 2% 2% Housing 5% JL Non Agr i 9% AGRI 16% CRE 5% Whl sale Tr ade MSME 10% 27% Retai l Tr ade 7% Lar ge Ind 13% 33
Slide 34: Loan Book – Advances to Major Industries
Loan Book – Advances to Major Industries Advances to Major Industries as on 30th June 2013 Amount % to Total Industry Name (in INR Mn) Advances Textiles a) Cotton 8214 5% b) Other Textiles 3727 2% Metals a) Iron & Steel 8978 6% b) Other Metals 2000 1% Paper & Paper Products 3455 2% Food Processing 2
Slide 35: Asset Quality
Asset Quality (Rs in Mn) Gross NPA Qtm & Gross NPA % Net NPA Qtm & Net NPA % 964 970 1921 1731 1235 1125 540 935 484 397 0.63% 0.63% 1.36% 0.58% 1.25% 1.21% 0.52% 1.13% 1.01% 0.44% ` 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 30-Jun-13 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 30-Jun-13 35
Slide 36: Asset Quality Position – Movement over the years
Asset Quality Position – Movement over the years FY FY FY FY QY (Rs in Mn) Mar-10 Mar-11 Mar-12 Mar-13 June-13 NPA Opening balance 1021 882 1125 1235 1731 Additions A 1075 1207 1444 2234 379 Recovery made 531 376 649 486 161 Upgradations 223 114 165 232 16 Net Addition B 321 717 630 1516 202 Write-o
Slide 37: Restructured Accounts
Restructured Accounts Balance outstanding as on 30.06.2013 in respect of Restructured borrowers: Type Restructuring No. of Amount Borrowers (in INR Mn) Under CDR Mechanism 2 324 Under SME Debt Restructuring Mechanism 12 447 Others 5 1421 Total 19 2192 As per the recent RBI circular DBOD.BP.BC.No.80/
Slide 38: Investments – At a Glance
Investments – At a Glance Investments Breakup and Categorywise (in INR Mn) Particulars JUN 2013 JUN 2012 Sovereign Bonds 52465 39873 Corporate Bonds, RIDF, etc. * 8184 6948 Equity Shares & Equity oriented MFs 409 379 Total Investments 61058 47200 Yield on Investments 7.49% 7.10% Investments Breakup:
Slide 39: Thank You
Thank You 39