Financial Results. Q3 FY15 & Nine-months ended December th January 2015

Size: px

Start display at page:

Download "Financial Results. Q3 FY15 & Nine-months ended December th January 2015"

Cassandra Mathews
6 years ago
Views:

1 Financial Results Q3 FY15 & Nine-months ended December 27 th January

2 Highlights Capital CRAR (Basel III) at 10.30%; CET 1: 7.02% Margin Domestic NIM stable at 2.6% Fee Income Core Fee Income up 11.3% (y-o-y) Profit Net Profit (Apr-Dec ) at ` 1338 crore, growth of 19.8% Business Global Business increased to ` crore

3 Statement of Assets & Liabilities (` in crore) LIABILITIES As at As at As at As at YoY Growth (%) Capital Reserves and surplus Deposits Borrowings Other Liabilities and Provisions ASSETS Cash and Balances with Reserve Bank of India Balances with Banks and Money at call and Short Notice Total Investments Advances Fixed Assets Other Assets Total

4 Deposits Total Deposits CASA Share 28.8% CASA Dec 13 Dec 14 CASA Share 28.7% Total Deposits noted annual growth of 9.8% CASA share at 28.7% The Bank added 29 Lakh CASA accounts in Dec-14 quarter (84 Lakh during Apr- Dec ) Cost of Deposits at 7.31% (Apr-Dec ) & 7.33% (Dec ). (` in crore) Dec 2013 Mar Sep Dec Growth (%) Y/Y Q/Q Total Deposits Current Deposits Savings Deposits CASA

5 Advances Dec 2013 Mar Sep Dec Growth (%) Y/Y Q/Q Retail Advances Agriculture MSME RAM Advances Share of RAM in Domestic Adv RAM Share 42% Dec 13 Dec 14 RAM Share 50% Advances increased by 8.9% RAM (Retail, Agriculture & MSME) sectors are major contributors Yield on Advances at 10.50% (Apr-Dec ) & 10.43% (Dec ) (` in crore) bps 250 bps 5

6 Advances Top Exposures Sl. Sectors Top 10 Sectors (Domestic ) % Share in Advances Top 10 Sectors (Domestic ) (31 st Dec ) Dec 2013 Mar Sep % Share Amount ( ` in cr.) 1 Infrastructure Retail Advances Agriculture Trade NBFCs Basic Metal Products Food Processing Textiles Commercial Real Estate Gems & Jewellery

Advances Retail Loans Dec 2013 Dec 13.5 2.

2 Home Loans Vehicle Loans Education Loans

7 Advances Retail Loans Dec 2013 Dec Home Loans Vehicle Loans Education Loans Mortgage Loans (LAP) Personal Loans Others 7

5 Billion (` 21538 crore) Total Deposits Total Advances Dec 2013 Dec * Growth (%) YoY- US$ US $ 0.7 Billion (` 4288 crore) US $ 2.

8 Overseas Operations Overseas branches at Hong Kong, DIFC (Dubai) & Antwerp (Belgium) Representative offices at Shanghai, Beijing, Abu Dhabi and Sydney Union Bank of India (UK) Limited (a wholly-owned subsidiary of the Bank in London) Business from Overseas Branches Business US $ 3.5 Billion (` crore) Total Deposits Total Advances Dec 2013 Dec * Growth (%) YoY- US$ US $ 0.7 Billion (` 4288 crore) US $ 2.8 Billion (` crore) US $ 4.2 Billion (` crore) US $ 0.9 Billion (` 5623 crore) US $ 3.3 Billion (` crore) *1 US$= ` as on December 31,

9 Investments Yield on Investments at 7.52% (Apr- Dec ) & 7.51% (Dec ) 83% of AFS portfolio is interest sensitive. Dec 13 Dec 14 Dec 14 % to Total Investments (` in crore) Duration (Yrs) Held to Maturity (HTM) Held for Trading (HFT) Available for Sale (AFS) Total Investments

10 Performance Highlights (Apr-Dec ) 10

11 NII & NIM Apr-Dec 2013 Apr-Dec Net Interest Income (` in crore) Net Interest Margin (NIM) (%) -Global Domestic Yield on Fund (%) -Global Domestic Cost of Fund (%) -Global Domestic

12 Non-Interest Income (` in crore) Apr-Dec 2013 Apr-Dec Growth % (YoY) a. Core Non Interest Income W/w -Inland Commission Processing Charges Others b. Treasury Income W/w -Profit on Sale of Investments -Exchange Profit c. Recovery in Written off Accounts Total

13 Operating Profit Operating Profit for the period of Apr-Dec is at `4171 crore as against `3898 crore during the corresponding period of last year, registering an increase of 7.0%. Apr-Dec 2013 Apr-Dec 13

14 Provisions (` in crore) Apr-Dec 2013 Apr-Dec NPAs Standard Assets Depreciation on Investment Shifting Loss Restructured Advances Others (FITL etc) Taxation Total

15 Net Profit The Net Profit for Apr-Dec registered increase of 19.8% from `1117 crore to `1338 crore. Apr-Dec 2013 Apr-Dec 15

16 Performance Highlights (Oct-Dec ) 16

17 NII & NIM Net Interest Income (` in crore) Dec 2013 (Q3) Sep (Q2) Dec (Q3) Net Interest Margin (NIM) (%) -Global Domestic Yield on Fund (%) -Global Domestic Cost of Fund (%) -Global Domestic

18 Non-Interest Income (` in crore) Dec 2013 (Q3) Mar (Q4) Sep (Q2) Dec (Q3) Growth % YoY Growth % QoQ a. Core Non Interest Income W/w -Inland Commission Processing Charges Others b. Treasury Income W/w -Profit on Sale of Investments Exchange Profit c. Recovery in Written off Accounts Total

19 Operating Profit Operating Profit is at `1465 crore for Oct-Dec as against `1261 crore during the corresponding period of last year. Dec 13 Sep 14 Dec 14 19

20 Provisions Dec 2013 (Q3) Mar (Q4) Sep (Q2) (` in crore) Dec (Q3) NPAs Standard Assets Depreciation on Investment Shifting Loss Restructured Advances Others (FITL etc) Taxation Total

21 Net Profit The Net Profit for Oct-Dec noted at `302 crore as against `348 crore for the corresponding period of last year. Dec 13 Sep 14 Dec 14 21

22 Asset Quality (` in crore) Dec 2013 Mar Sep Dec Q3 Q4 Q2 Q3 Gross NPAs - Opening Add : Additions Less : Reductions Recoveries Upgradation Write Off Gross NPAs- Closing Gross NPA (%) Net NPA Net NPA ( %) Provision Coverage Ratio (%) Credit Cost (%)

23 Asset Quality (` in crore) Slippages NPAs % to % to Sector Loan SECTOR During Dec Dec Total NPAs Dec 2013 Mar Sep Dec Agriculture Micro & Small (MSE) Retail Loans Others Total

24 Restructured Assets (` in crore) Particulars Standard NPA Total Restructured Assets as on October 1st, Fresh Restructuring during the Quarter Upgradation to Restructured Accounts during the Quarter Restructured Standard Advances which cease to attract higher provisioning and need not be shown as Restructured Assets Down gradation of restructured accounts during the Quarter Change in Outstanding/Write-off/ Recovery/Closures Restructured Accounts as on December 31, Outstanding Standard Restructured Assets excluding SEBs as % to Gross Advances: 2.8% 24

25 Important Ratios Dec 2013 (Q3) Mar (Q4) Sep (Q2) Dec (Q3) Efficiency Ratios Cost to Income Ratio (%) Return on Average Assets (%) Earning Per Share (`) Book Value per Share (`) Productivity Ratios Business per Branch ` in crore Business per Employee ` in crore Gross Profit per Branch ` in crore Gross Profit per Employee ` in lakh

Distribution Channels Rural 32% Semi Urban 29% Metro 18% Branch Mix Urban 21% Alternative Delivery Channels (% share in Total Transactions) Southern 21% ATMs Western

6 Transactions through electronic channel at 55% as of Dec. Service Outlets 16.2 Internet Banking Dec 2013 Mar Sep Dec 0.1 0.6 4.7 33.

26 Distribution Channels Rural 32% Semi Urban 29% Metro 18% Branch Mix Urban 21% Alternative Delivery Channels (% share in Total Transactions) Southern 21% ATMs Western 19% Northern 12% Central 32% Eastern 13% North Eastern 2% Bank added 109 branches during Oct-Dec (163 branches and 189ATMs during Apr-Dec ). ATM to Branch Ratio at 1.6 Transactions through electronic channel at 55% as of Dec. Service Outlets 16.2 Internet Banking Dec 2013 Mar Sep Dec Mobile Banking Tele Banking Branches Ext. Counters Service branches Others (Merchant Acquiring/ RTGS/NEFT/ECS) Total ATMs

27 Capital Adequacy Basel III CRAR Tier I Tier II CRAR under Basel III is 10.30% (excluding quarterly profit) Tier I 7.32% (CET I : 7.02%) & Tier II :2.98%. Mar 14 Sep 14 Dec 14 (` in crore) Dec 2013 Mar Sep Dec Risk Weighted Assets Capital Funds CRAR-BASEL III ( % ) CET Ratio (%)

Shareholding Details Share Capital ` 635.8 crore No. of Equity Shares Net worth: 63.58 crore ` 18323 crore Book Value per share ` 288 Return on Equity 9.

28 Shareholding Details Share Capital ` crore No. of Equity Shares Net worth: crore ` crore Book Value per share ` 288 Return on Equity 9.74% Market Cap ` crore Shareholding Pattern (%) as on December 31, Govt. of India FIIs & FMFs Banks, Institutions/Mutual Funds Others 28

29 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 statements. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, future levels of non-performing loans, our growth and expansion in business, the impact of any acquisitions, the adequacy of our allowance for credit losses, technological implementation and changes, the actual growth in demand for banking products and services, investment income, cash flow projections, our exposure to market risks as well as other risks. Union Bank undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof. This document does not constitute or form part of and should not be construed as an offer to sell or issue or the solicitation of an offer to buy or acquire securities of Union Bank of India or any of its subsidiaries or affiliates in any jurisdiction or as an inducement to enter into investment activity. No part of this document, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This document and its contents should not be forwarded or delivered or transmitted in any manner to any person other than its intended recipient, and should not be reproduced in any manner whatsoever. This document is not financial, legal, tax or other product advice. 29

30 Investor queries: 30

Financial Results Q1 FY July 28, 2015

Financial Results Q1 FY July 28, 2015 Financial Results Q1 FY 2015-16 July 28, 2015 A Step Towards Digitalization 2 Performance Highlights Business Opex Profitability Global Business increased by 8.6% to ` 582817 crore Savings Deposits grew