City Union Bank Limited · NSE:CUB
City Union Bank — Q1 FY2025 Earnings Presentation
48 slides from City Union Bank's earnings presentation, Jul 26, 2024
Slide 1: Exchange filing cover letter
E IrV U N Itr N BNN T LIM ITED CIN : 16511OTN1904P1C00 1287 District, Tamil Nadu Regd. Office : 149, T.S.R. (Big) Street, Kumbakonam'612 001, Thanjavur -- TelePhone No:0435 '2402322 Fax: 0435 - 2431746 E-mail:shares@cityunionbank.com Website : www.cityunionbank'com rRusr AirD ExcEttEllcE 'slllcEt90l
Slide 2: Investor Presentation June 2024
INVESTOR PRESENTATION JUNE 2024
Slide 3: Disclaimer
TRUST AND EXCELLENCE 1904 - 2024 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 on
Slide 4: Table of Contents
Table of Contents TRUST AND EXCELLENCE 1904 - 2024 Overview ........................................................................................................................ 04 Performance Highlights – June 2024 ........................................................................... 10 Fi
Slide 5: Overview
TRUST AND EXCELLENCE 1904 - 2024 OVERVIEW 04
Slide 6: Facts & Figures
Overview TRUST AND EXCELLENCE 1904 - 2024 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 includ
Slide 7: Key Milestones
KEY MILESTONES 1998 TRUST AND EXCELLENCE 1904 - 2024 Initial Public 1957 Offering (IPO); Took over Listing bank’s 1904 Common shares on the Incorporation Wealth BSE, NSE & MSE of Bank Limited the Bank 02 04 06 03 1965 05 2002 01 1945 Scheduled bank Amalgamation Entered into since of ‘The City Forwar
Slide 8: City Union Bank: Specialized Banking Model
CITY UNION BANK A SPECIALIZED BANKING MODEL ALIGNED TO TARGET SEGMENT – SME / MSME TRUST AND EXCELLENCE 1904 - 2024 Prudent Risk Invested in Robust Purely retail Liability SME / MSME focus Management Infrastructure Franchise SME/MSME specialized SME exposures’ result in Comprehensive employee
Slide 9: Competitive Advantages
COMPETITIVE ADVANTAGES TRUST AND EXCELLENCE 1904 - 2024 NETWORK STRONG TRACK RECORD • Continuous profitability and dividend • Pan India presence with 800 branches payout in all 120 years of operations • Strong presence in South India (692 • Business growth of about 15% CAGR in branches) of which 524
Slide 10: Credit Rating
TRUST AND EXCELLENCE CREDIT RATING 1904 - 2024 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
Slide 11: Performance Highlights – June 2024
TRUST AND EXCELLENCE 1904 - 2024 PERFORMANCE HIGHLIGHTS – JUNE 2024 10
Slide 12: Q1 FY Performance – A Snapshot
Q1 FY 25 PERFORMANCE – A SNAPSHOT TRUST AND EXCELLENCE 1904 - 2024 • Deposits increased by 6% from Rs. 517 Bn to Rs. 549 Bn Y-o-Y • Advances registered a growth of 10% from Rs.424 Bn to Rs.465 Bn Y-o-Y • The total business grew by 8% from Rs.941 Bn to Rs. 1014 Bn Y-o-Y • Profitability and efficiency
Slide 13: Q1 FY25 vs Q1 FY24 Performance – A Snapshot
Q1 FY 25 VS Q1 FY 24 PERFORMANCE – A SNAPSHOT TRUST AND EXCELLENCE 1904 - 2024 (in INR Mn) 548,569 465,479 1,014,048 161,950 6% 10% 8% 2% 516,548 424,048 940,596 158,931 Deposits Advances Total Business CASA 3,735 2,645 5,452 49.34% - ve 16% 4% % 4,143 2,273 5,226 41.98 % Gross Profit Net Profit Net
Slide 14: FY24 vs FY23 Performance – A Snapshot
FY 24 VS FY 23 PERFORMANCE – A SNAPSHOT TRUST AND EXCELLENCE 1904 - 2024 (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 Profit Net Profit Net
Slide 15: Financial Performance & Business Profile
TRUST AND EXCELLENCE 1904 - 2024 FINANCIAL PERFORMANCE & BUSINESS PROFILE 14
Slide 16: Q1 FY25 vs Q1 FY24 Performance
TRUST AND EXCELLENCE 1904 - 2024 Q1 FY 25 VS Q1 FY 24 PERFORMANCE - A SNAPSHOT (in INR Mn) FINANCIAL PERFORMANCE PARTICULARS Q1 FY 2025 Q1 FY 2024 INC / (DEC) Growth Growth % Deposits 548,569 516,548 32,022 6% Advances 465,479 424,048 41,432 10% Total Business 1,014,049 940,596 73,452 8% Demand Depo
Slide 17: Q1 FY25 vs Q1 FY24 Performance
TRUST AND EXCELLENCE 1904 - 2024 Q1 FY 25 VS Q1 FY 24 PERFORMANCE - A SNAPSHOT FINANCIAL PERFORMANCE (in INR Mn) PARTICULARS Q1 FY 25 Q1 FY 24 INC / (DEC) Growth % Net Interest Income 5,452 5,226 226 4% Other Income 1,921 1,915 6 - Operating Expenses 3,638 2,998 640 21% Gross Profit 3,735 4,143 -408
Slide 18: FY24 vs FY23 Performance
TRUST AND EXCELLENCE 1904 - 2024 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 4
Slide 19: FY24 vs FY23 Performance
TRUST AND EXCELLENCE 1904 - 2024 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 -
Slide 20: Provisions & Contingencies – Breakup
TRUST AND EXCELLENCE 1904 - 2024 PROVISIONS & CONTINGENCIES – BREAKUP (in INR Mn) PARTICULARS Q1 FY 25 Q1 FY 24 FY 2024 FY 2023 Provision for: - Tax 700 350 2,150 2,400 - Bad Debts 320 2,400 3,270 6,900 - Contingencies 70 -650 -170 -175 - Standard Assets - -180 -170 -200 - Restructuring - -50 -70 -1
Slide 21: Q1 FY25 vs Q1 FY24 – Income and Expenses Breakup
TRUST AND EXCELLENCE 1904 - 2024 Q1 FY 25 VS Q1 FY 24 – INCOME AND EXPENSES BREAKUP INTEREST INCOME BREAKUP INTEREST EXPENSES BREAKUP (in INR Mn) PARTICULARS Q1 FY 25 Q1 FY 24 Growth % PARTICULARS Q1 FY 25 Q1 FY 24 Growth % Interest on Loans 10,865 10,089 8% Int Exp on Deposits 7,670 6,841 12% Inter
Slide 22: FY24 vs FY23 – Income and Expenses Breakup
TRUST AND EXCELLENCE 1904 - 2024 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 Investmen
Slide 23: Deposits and Advances Growth Over the Years
DEPOSITS AND ADVANCES GROWTH – OVER THE YEARS TRUST AND EXCELLENCE 1904 - 2024 DEPOSITS ADVANCES (in INR Mn) 5,56,566 5,48,569 4,64,815 4,65,479 5,23,979 4,39,708 4,76,897 4,11,560 4,45,370 3,70,206 31-03-2021 31-03-2022 31-03-2023 31-03-2024 30-06-2024 31-03-2021 31-03-2022 31-03-2023 31-03-2024 30
Slide 24: Income Growth Over the Years
INCOME GROWTH OVER THE YEARS… TRUST AND EXCELLENCE 1904 - 2024 (in INR Mn) NET INTEREST INCOME OTHER INCOME 8,104 21,628 21,235 7,591 7,417 19,165 6,887 18,297 (3 M) (3 M) 5,452 1,921 31-03-2021 31-03-2022 31-03-2023 31-03-2024 30-06-2024 31-03-2021 31-03-2022 31-03-2023 31-03-2024 30-06-2024 CEB NE
Slide 25: Key Business Indicators
TRUST AND EXCELLENCE 1904 - 2024 KEY BUSINESS INDICATORS PARTICULARS Q1 FY 25 Q1 FY 24 FY 24 FY 23 Cost of Deposits 5.72% 5.36% 5.59% 4.66% Yield on Advances * 9.59% 9.53% 9.72% 9.23% Yield on Investments 6.48% 6.10% 6.27% 5.89% Net Interest Margin * 3.54% 3.67% 3.65% 3.89% Cost to Income 49.34% 41.
Slide 26: Key Business Ratios – Yearly Trends
KEY BUSINESS RATIOS – YEARLY TRENDS TRUST AND EXCELLENCE 1904 - 2024 NET INTEREST MARGIN RETURN ON ASSETS 5.00% 1.70% 1.60% 1.52% 1.51% 4.50% 1.46% 1.50% 1.40% 1.35% 4.00% 3.98% 4.00% 3.89% 1.30% 3.65% 1.15% 3.54% 1.20% 3.50% 1.10% 1.00% 3.00% 0.90% 31-MAR-21 31-MAR-22 31-MAR-23 31-MAR-24 30-JUN-24
Slide 27: Cost of Deposits & Yield on Advances
COST OF DEPOSITS & YIELD ON ADVANCES TRUST AND EXCELLENCE 1904 - 2024 (in %) 14 13.18 12.83 12.10 12 11.46 10.95 10.76 9.91 9.72 10 9.36 9.59 9.23 8.15 8 7.62 6.82 6.29 6.17 6.20 5.59 5.72 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 JUN 24 Spread betw
Slide 28: Loan Book – Products Composition
TRUST AND EXCELLENCE 1904 - 2024 LOAN BOOK – PRODUCTS COMPOSITION % to Total Advances Trading & MSME loans constitute about 42% 1% Bills Purchased & Diversified credit portfolio reduces credit risk and Lower Bills Discounted ticket size backed by adequate collaterals Term Loan 35% Cash Credit & Dema
Slide 29: Loan Book Sectoral Deployment – 30.06.2024
LOAN BOOK SECTORAL DEPLOYMENT – POSITION AS ON 30.06.2024 Large Industries 5,951 TRUST AND EXCELLENCE 1904 - 2024 LAD Retail Traders (in INR Mn) 7,520 7,022 Wholesale Traders Infrastructure 10,942 3,096 Personal Loan 1% 13,116 2% 2% 2% NBFC 3% 14,034 3% Housing 21,529 4% 38% C R E 6% 27,173 SECTORAL
Slide 30: Loan Book – Advances to Major Industries
Corporate Governance Loan Book – Advances to Major Industries TRUST AND EXCELLENCE 1904 - 2024 (in I N R M n ) Advances to Major Industries 30th June 2024 TEXTILE a) Cotton 13,111 (3%) b) Other Textiles 28,203 (6%) METALS a) Iron & Steel 11,981 (3%) Amount % to Total Industry Name b) Other Metals 6,
Slide 31: Gold Loan Book – Q1 FY 2025
GOLD LOAN BOOK – Q1 FY 2025 TRUST AND EXCELLENCE 1904 - 2024 (in INR Mn) GOLD LOAN PORTFOLIO Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Gold Loan – Agriculture 64,774 60,639 56,847 61,130 64,418 Gold Loan – Non-Agriculture 43,031 48,159 49,063 49,317 50,214 Total Gold Loans 107,805 108,798 105,910 110,447 1
Slide 32: Asset Quality
TRUST AND EXCELLENCE 1904 - 2024 ASSET QUALITY (in INR Mn) GROSS NPA QTM & GROSS NPA % NET NPA QTM & NET NPA % 18,932 19,332 19,202 18,544 18,065 11,911 10,752 10,176 5.11% 8,987 8,535 4.70% 4.37% 2.97% 2.95% 3.99% 3.88% 2.36% 1.97% 1.87% 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 30-Jun-24 31-Mar-21 3
Slide 33: Asset Quality Position – Movement Over the Years
ASSET QUALITY POSITION – MOVEMENT OVER THE YEARS TRUST AND EXCELLENCE 1904 - 2024 (In INR MN) FY MAR-20 FY MAR-21 FY MAR-22 FY MAR-23 FY MAR-24 30-JUN-24 NPA Opening balance 9,771 14,134 18,932 19,332 19,902 18,544 Additions A 11,104 11,131 12,757 13,290 10,135 1,783 Recovery made 1,644 1,950 4,424
Slide 34: Restructured Accounts
RESTRUCTURED ACCOUNTS TRUST AND EXCELLENCE 1904 - 2024 Quarter wise balance outstanding in respect of Restructured Standard borrowers (In INR Mn) Sep-21 Mar-22 Mar-23 Mar-24 Jun-24 Type of Restructuring No. of No. of No. of No. of No. of Amt Amt Amt Amt Amt Borrowers Borrowers Borrowers Borrowers Bo
Slide 35: Investments – At a Glance
TRUST AND EXCELLENCE 1904 - 2024 INVESTMENTS – AT A GLANCE Investments Breakup and Category wise (in INR Mn) Particulars JUN-2024 JUN-2023 SLR Securities 158,617 148,834 Non-SLR Securities 1,535 1,244 Total Investments 160,152 150,078 Yield on Investments 6.48% 6.10% Investments Breakup: - A FS 23,7
Slide 36: Digital Initiatives
TRUST AND EXCELLENCE 1904 - 2024 DIGITAL INITIATIVES 35
Slide 37: New Digital Offerings
New Digital Offerings Product Offerings 01 02 03 04 05 napID New Initiatives Digital UPI Voice UPI Lite (Zero Factor Multilingual Lending Payment Authenticator) Bot U Pay to Whatsapp Products BBPS Scan & Pay/ QR UPI ATM - Contact Banking ICCW Technology/ API/Robotic Data Video KYC Voice Biometric Pr
Slide 38: Digital Products
Digital Products New Digital Lending Digital Lending - Instant napID product launch Loans (Zero Factor Authenticator) Housing Loan 1. Fraud Filter Layer – RBI’s approved Zero Retail Loan Against Property Pre-Qualified Personal Loan (PQPL) Factor Authenticator & Anti Fraud Software. Auto Loan 2. Digi
Slide 39: Strategic Partnerships – API Banking
Strategic Partnerships Account Digital Opening Lending Payments API BANKING Correspondent Customer Banking Digital Onboarding Insurance 0 038 7 38
Slide 40: Awards Received from April to June 2024
Awards Received from April to June 2024 Exemplary Tech Leadership Innovative CIO Smart CISO BIG CIO 50 Innovators CIO Awards CIOAXIS BFSI CXO Awards & Confex 2024 Artificial Intelligence Robotic Process Automation AI Evangelist Express Computer BFSI Technology Conclave Awards 2024 Visionary Awards 2
Slide 41: Branch Network
TRUST AND EXCELLENCE 1904 - 2024 BRANCH NETWORK 40
Slide 42: Pan India Presence with Strong Foothold in the South
PAN INDIA PRESENCE WITH STRONG FOOTHOLD IN THE SOUTH TRUST AND EXCELLENCE 1904 - 2024 No. of % of % of % of STATE Branches Deposits Advances Business TAMILNADU 524 81% 67% 74% ANDHRAPRADESH 54 2% 7% 4% KARNATAKA 50 6% 5% 5% TELENGANA 40 3% 6% 4% GUJARAT 26 1% 3% 2% MAHARASHTRA 26 2% 4% 3% KERALA 18
Slide 43: Shareholding Pattern
TRUST AND EXCELLENCE 1904 - 2024 SHAREHOLDING PATTERN 42
Slide 44: A Well Diversified Investor Base
A WELL DIVERSIFIED INVESTOR BASE Position as on 30-Jun-2024 TRUST AND EXCELLENCE 1904 - 2024 Major Institutional Shareholders QIB, NRI, SHAREHOLDERS* HOLDING % 3.70 1.05 SBI Mutual Fund * 8.01 HDFC AMC * 6.26 Corp Bodies, Others, CAPITAL GROUP USA * 6.11 2.13 2.61 KOTAK FUND 4.87 ICICI PRUDENTIAL FU
Slide 45: Corporate Governance
TRUST AND EXCELLENCE 1904 - 2024 CORPORATE GOVERNANCE 44
Slide 46: 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 TRUST AND EXCELLENCE M.D. & C.E.O. 1904 - 2024 Shri. Gurumoorthy Mahalingam is a career Regulator in the Financial Dr. N. Kamakodi is serving as MD & CEO of
Slide 47: Transparent Corporate Governance Practices
TRANSPARENT ‘CORPORATE GOVERNANCE’ PRACTICES TRUST AND EXCELLENCE 1904 - 2024 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 stric
Slide 48: Contact
Contact TRUST AND EXCELLENCE 1904 - 2024 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