Union Bank Of India Limited · NSE:UNIONBANK
Union Bank Of India — Q3 FY2011-12 Earnings Presentation
28 slides from Union Bank Of India's earnings presentation, Jan 25, 2012
Slide 1: Presentation Q3-12 Financial Results
Presentation Q3-12 Financial Results 31st Dec., 2011 1
Slide 2: On the Growth Path
ON THE GROWTH PATH GROWTH OF UNION BANK AND SCBs (QoQ) (DEC 2011) Domestic Aggregate Deposits (Rs. in crore) 23 Sept., 2011 30 Dec.,2011* Growth Amt. % age SCBs 5530267 5827909 297642 5.38 Union Bank 179636 193592 13956 7.77 Market Share (%) 3.25 3.32 7 bps Credit SCBs 4093155 4365645 272490 6.66 Un
Slide 3: On the Growth Path (Sequential QoQ)
ON THE GROWTH PATH (Sequential QoQ i.e from Sept to Dec’11) Net Interest Income has increased from ` 1661 crore to ` 1781 crore, an increase of 7.22% Net Interest Margin has improved from 3.21% to 3.31%. Non Interest Income has increased from `.501 crore to `.592 crore, an increase of 18.16% CASA De
Slide 4: Improving Performance QoQ (Sequentially)
Improving Performance QoQ (Sequentially) 4.00 800 2000 1781 1661 3.21 3.31 1590 3.10 592 1600 3.00 600 501 484 1200 2.00 400 800 1.00 200 400 0 0.00 0 June 11 Q1 Sep.11 Q2 Dec.11 Q3 June 11 Q1 Sep.11 Q2 Dec.11 Q3 June 11 Q1 Sep.11 Q2 Dec.11 Q3 Net Interest Income Net Interest Margin Other Income 4
Slide 5: Net Interest Income (Quarterly / Nine Monthly)
Net Interest Income(NII) (Qty / Nine Monthly) 1781 1800 5500 5032 1615 5000 4499 1600 4500 1400 4000 1200 3500 1000 3000 2500 800 2000 600 1500 400 1000 500 200 DEC10 DEC 11 DEC 10 DEC 11 Quarterly Nine Months DEC 08 DEC 09 DEC 10 DEC 11 CAGR % Net Interest Income 2887 2796 4499 5032 20.35 5
Slide 6: Net Interest Margin (Quarterly / Nine Monthly)
Net Interest Margin (Qty / Nine Monthly) 9.29 9.62 10 8.16 8.39 8 Net Interest 8 6.26 6.43 Margin (on 6 5.06 6 5.16 Earning Assets) 4 3.44 3.31 4 3.29 3.19 is 3.31% for the quarter. 2 2 NIM For Nine 0 DEC 10 DEC 11 0 DEC10 DEC 11 Months is at Yield on Funds Cost of funds NIM (Earning Assets) Yield o
Slide 7: Non-Interest Income (Quarterly / Nine Months)
Non-Interest Income- (Qty / Nine Months) (` in crore) DEC 10 DEC 11 Growth DEC 10 DEC 11 Growth (Q3) (Q3) % (9M) (9M) % Core Non Interest 278 323 16.19 806 873 8.31 Income Treasury Income 185 179 -3.24 518 513 -0.97 W/w Profit on Sale of 108 101 -6.48 352 314 -10.80 Investments Exchange on 77 78 1.3
Slide 8: Operating Profits (Quarterly / Nine Monthly)
Operating Profits (Quarterly/ Nine Monthly) 1400 1284 • Operating Profit 1261 4000 3655 for the quarter is 3435 1200 3600 at `. 1284 crore as 1000 3200 against `. 1261 2800 crore during the 800 2400 corresponding 600 2000 quarter of last 400 1600 year. 1200 200 800 • On Nine Monthly 0 400 basis Oper
Slide 9: Provisions (Quarterly / Nine Monthly)
Provisions (Quarterly / Nine Monthly) (` in crore) DEC 10 DEC 11 DEC 10 DEC 11 (Q3) (Q3) (9M) (9M) Taxation 282 114 755 617 NPA 361 425 1090 1285 Standard Assets 35 100 57 91 Depreciation on Investment 6 73 -7 163 Others -3 375 56 485 Total 681 1087 1951 2641 9
Slide 10: Net Profits (Quarterly / Nine Monthly)
Net Profits (Quarterly / Nine Monthly) • The Net Profit for Q3-12 600 579 1484 is at `.197 crore as 1500 against `. 579 crore 500 during the corresponding quarter 400 1200 1014 of last year. • The Net Profit for Nine 300 197 900 Months is at `1014 crore as against `. 1484 200 600 crore during the co
Slide 11: Deposits
210000 186655 205317 Deposits 180000 Total Deposits grew at 150000 10.00% YoY. 120000 The Bank reduced 90000 66810 Certificate of Deposits 60000 62106 from ` 9890 crore in Mar’11 to ` 4201 crore in 30000 Dec’11 which enabled the 0 DEC 10 DEC 11 bank to contain costs. TOTAL DEPOSITS CASA (` in Crore)
Slide 12: Advances
Advances Advances 156202 160000 133787 140000 120000 100000 80000 60000 40000 20000 DEC 10 DEC 11 Bank registered a YoY growth of 16.75% in Advances. 12
Slide 13: Composition of Retail Assets
COMPOSITION OF RETAIL ASSETS Product-wise composition of Retail assets Portfolio DEC 11 9.38 Housing Loans 8.24 Personal Loans Education Loans Auto Loans Other Retail 12.22 3.74 66.42 13
Slide 14: Top Sector Exposures
TOP SECTOR EXPOSURES Across Large & Mid Corporates, SME and Corporate Agri Business Rank Sectors Exposures (As on 31st December 2011) Amount (`. in Crore) % 1 Infrastructure 23740 15.20 2 Retail Advances 15005 9.61 3 Agriculture 14856 9.51 4 NBFCs and HFCs 12266 7.85 5 Trade 8225 5.27 6 Iron & Steel
Slide 15: Assets Restructured
Assets Restructured . ` in Crs Upto Sept. 2011 During Dec 2011 Total Accounts Amt. Accounts Amt. Accounts Amt. Assets 120379 6601 133 2042 120512 8643 Restructured Upto Sept. 2011 During Dec 2011 Total Amt. Amt. Accounts Amt. Accounts Accounts Amount 112076 1930 14471 228 126547 2158 Recovered W/w A
Slide 16: Investments
Investments 66355 70000 Investments has increased from ` 59030 9.00 60000 59030 cr to ` 66355 cr. i.e. increase of 6.86 50000 7.00 12.41%. 6.50 40000 5.00 Yield on Investments has shown 30000 improvement from 6.50% to 6.86% 3.00 Out of Total AFS portfolio of ` 15211 20000 10000 1.00 cr., portfolio o
Slide 17: NPA Management
NPA Management (`.in crore) DEC 10 DEC 11 Gross NPAs – Opening on 1st April 2671 3623 Add : Additions 2518 3153 Less : Deductions 1608 1567 1. Due to Write Off 866 827 2. Due to upgradation / Recovery 742 740 Gross NPAs 3581 5209 Gross Credit 133787 156202 Gross NPA as a % age of GBC 2.68 3.33 Net N
Slide 18: Cost of Credit
Cost of Credit (` in Crs) Particulars DEC 10 DEC 11 (9 M) (9 M) Gross Advances 133787 156202 Average Advances 127518 154612 (Opening + Closing / 2 ) NPA Provision 1090 1285 Credit Cost % 1.14 1.11 Note : Credit Cost % Annualised. 18
Slide 19: Capital Adequacy Ratio (Basel II)
Capital Adequacy Ratio (Basel II) 14 Capital Adequacy Ratio is at 11.88 11.72 % as on Dec. 2011 against 12 11.72 11.88% as on Dec. 2010 due to 10 increase in volume of business. 7.98 8 7.44 Tier-I capital funds have 6 increased from `.9877 crore in 4.44 Dec, 2010 to `.12171 in Dec.11 3.74 4 due
Slide 20: Distribution Channels
DISTRIBUTION CHANNELS BRANCH MIX ATMs opened during the Year - 509 Including Branches opened during the year -184 Hong Kong branch SERVICE OUTLETS 637 947 DEC DEC DEC DEC 08 09 10 11 724 Branches 2477 2768 2993 3177 869 Ext. 117 66 49 42 Counters Service 35 43 46 45 branches Metro Urban Semi-Urban R
Slide 21: Shareholding Pattern (31st Dec., 2011)
Shareholding Pattern (31st DEC., 2011) 11.01 Govt. of India Banks, Fis, Ins. Cos. 17.37 Others FIIs and Foreign Mutual Funds 57.07 • Share Capital ` 635 crore •No. of Equity Shares 524.33 million 14.55 • Net worth ` 12185 crore • B. V. per share ` 233.38 •Return on Equity: 11.10% •Market Cap (31.12.
Slide 22: Major highlights of last quarter
Major highlights of last quarter 22
Slide 23: Customer service excellence program - Multiple initiatives
Customer service excellence program - Multiple initiatives Areas Description • Established a new UnionXperience branch model by recalibrating traffic flows, branch format, choreography and roles 1 Branches • Launched 52 branches under the new model – Average CASA accounts opened (per day per branch)
Slide 24: HR Transformation
HR Transformation The Bank has identified HR Transformation as one of the key pillars of Nav Nirman Phase II. This initiative aims to align HR Strategy with the Business Strategy by benchmarking and adopting industry best practices in order to suit Bank’s requirement The following are the Key Result
Slide 25: Guidance 2011-12
Guidance 2011-12 25
Slide 26: Guidance 2011-12
Guidance 2011-12 The Bank aims for Advances growth of 16-18% for 2011- 12. Deposits growth will be calibrated accordingly. NIM is expected to be at 3.20% by March 2012. Gross NPAs to show declining trend. 26
Slide 27: 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 28: Thank You
f) f) Thank You
Union Bank of India — Q3 FY2011-12 Earnings Presentation on 6ix