analyst meet q2 sept 11 24102011.pptx [read-only] us-investor... · 2011-11-09 · mutual funds...
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P f f th h lf (Y Y)Performance for the half year (YoY)
Global Business up from ` 304203 cr. to ` 342856 cr., an increaseof 12.71%
Net Interest Income increased from ` 2884 cr. to ` 3251 cr., a growthof 12.73%
Net Interest Margin on Earning Assets is at 3.14% as compared to 3.19%during the corresponding period of last year
Operating Profit has improved from ` 2174 cr to ` 2371 cr a growth of 9 06%
2
Operating Profit has improved from ` 2174 cr. to ` 2371 cr., a growth of 9.06%.
Net Interest Income(NII) (Qty / Half Yearly)
153716611800
Net Interest Income(NII) (Qty / Half Yearly)
2884
32513300
Growth 8.07% Growth 12.73%
1200
1400
16002884
2100
2400
2700
3000
600
800
1000
1200
1500
1800
2100
200
400
600
SEPT 10 SEPT 11300
600
900
SEPT 10 SEPT 11SEPT 10 SEPT 11
Quarterly Half Yearly
SEP 08 SEP 09 SEP 10 SEP 11 CAGR %
3
SEP 08 SEP 09 SEP 10 SEP 11 CAGR %Net Interest Income 1762 1707 2884 3251 22.65
)
Net Interest
Net Interest Margin (Qty / Half Yearly)8.28
9.25
8.04
9.13
Net InterestMargin (onearning5.06
6.25
6
8
5.00
6.17
6
8
earningassets) is3.21% for the
3.353.21
2
4 3.19 3.14
2
4
quarter.NIM For half0
2
SEPT 10 SEPT 110
2
SEPT 10 SEPT 11
year is at3.14%.
Yield on Funds Cost of funds NIM (Earning Assets) Yield on Funds Cost of funds NIM (Earning Assets)
Quarterly Half Yearly
4
Sequential Jun 11 Sep 11NIM (Earning Assets) 3.10 3.21
Non-Interest Income- (Qty / Half Yearly)Non-Interest Income- (Qty / Half Yearly)(` in crore)
SEPT 10
SEPT 11
Growth SEPT 10
SEPT 11
Growth10
(Q2)11
(Q2)% 10
(H1)11
(H1)%
Core Fee Based 286 298 4.20 528 550 4.17IncomeTreasury Income 179 161 -10.06 333 334 0.30
W/wW/w Profit on Sale of
Investments131 100 -23.66 244 213 -12.70
Exchange on Foreign Currencies
48 61 27.08 89 121 35.96
Recovery in Written 44 42 -4.55 83 101 21.69
5
off Accounts
Total 509 501 -1.57 944 985 4.34
O ti P fit (Q t l / H lf Y l )• Operating Profit
for the quarter
Operating Profits (Quarterly/ Half Yearly)
1131
12051400
2174
2371
2400 for the quarterincreased by6.54% from `1131crore to `1205
1131
800
1000
1200 2174
1800
2100
2400
c o e to 05crore.
• On Half yearlybasis Operating
400
600
900
1200
1500
basis OperatingProfits registeredgrowth of 9.06%from `2174 Crore
0
200
SEPT 10 SEPT 11300
600
SEPT 10 SEPT 11
from `2174 Croreto `2371 crore.Quarterly Half Yearly
` in crs
Sequential Jun 11 Sep 11
6
q(Q1)
p(Q2)
Operating Profits 1166 1205
P i i (Q t l / H lf Y l )Provisions (Quarterly / Half Yearly)(` in crore)
SEPT 10 SEPT 11 SEPT 10 SEPT 11SEPT 10(Q2)
SEPT 11(Q2)
SEPT 10(H1)
SEPT 11(H1)
Taxation 228 230 473 503Taxation 228 230 473 503NPAStandard Assets
62913
4953
72922
860-9
Depreciation on Investment -34 82 -13 90Others -9 42 58 110
Total 827 852 1269 1554
7
Net Profits (Quarterly / Half Yearly)
353400
Net Profits (Quarterly / Half Yearly)
304
300
350 905
817
800
1000 • The Net Profit forquarter hasimproved by 16.12%
150
200
250
600
800 from ` 304 crore to` 353 crore.
• However, Net profit
50
100
150
400
, pfor HY11 is ` 817crore due to lessernet profit in the first
0SEPT 10 SEPT 11
Quarterly
200SEPT 10 SEPT 11
Half Yearly
quarter.
8
Quarterly Half Yearly
Total Depositsincreased by 10 01%
177780
195572
180000
210000 Deposits
increased by 10.01%from `177780 crore to` 195572 crore.120000
150000
CASA deposits grew by7.99% from ` 58111crore to ` 62754 crore
5811162754
60000
90000
crore to ` 62754 crore.CASA share in totaldeposit is 32.09%.
0
30000
60000
0SEPT 10 SEPT 11
TOTAL DEPOSITS CASA
9
A/Cs opened NosNo of CASA Accounts opened during half year 12,54,717
38 4%45.0%
Stable CASA Ratio of Union Bank of IndiaMar‐06 Mar‐11
38.4%
32.4%30.4% 31.8%
25 0%
30.0%
35.0%
40.0%
10.0%
15.0%
20.0%
25.0%
0.0%
5.0%
Nationalized Banks Average Union Bank of India
Average CASA Ratio of Nationalized Banks was close to 40% in2006 which gradually declined to around 30% by end March 2011
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2006, which gradually declined to around 30% by end March 2011.Union Bank’s CASA share was maintained near 32%.
Global advancesAdvances
150000 126423147284
of the Bankregistered YoYgrowth of 16 50%120000
150000 126423
growth of 16.50%.It increased from`126423 crore to` 147284
90000
` 147284 crore.Yield on advanceshas improved to30000
60000
has improved to11.02% from9.49% in the0
30000
Sept 10 Sept 11
11
previous year.Sept 10 Sept 11
SECTOR WISE ADVANCESSECTOR-WISE ADVANCESAcross Large & Mid Corporates, SME and Corporate Agri Business
Rank Sectors Outstanding (As on 30TH SEPTEMBER 2011)
% Amount (Rs. in Crore)1 Infrastructure 13.26 19544.072 Retail Advances 9.84 14505.003 Trade 5.49 8094.003 Trade 5.49 8094.004 NBFC 5.41 7976.765 HFCs 3.31 4885.946 Ch i l d h i l d t 1 78 2616 976 Chemical and chemical products 1.78 2616.977 Commercial Real Estate 1.75 2582.178 Textiles 2.59 3820.99
1212
9 Gems & Jewellery 1.39 2056.2110 Petroleum 1.89 2786.08
COMPOSITION OF RETAIL ASSETSCOMPOSITION OF RETAIL ASSETSProduct-wise composition of Retail assets Portfolio SEPT 11
8.34
9.20 Housing LoansPersonal LoansEducation Loans
12.33
Education LoansAuto LoansOther Retail
66.333.80
1313
Assets Restructured ` i CAssets RestructuredUpto June 2011 During Sept 2011 Total
` in Crs.
Accounts Amt. Accounts Amt. Accounts Amt.Assets Restructured
120204 5844.78 175 756.28 120379 6601.06
Upto June 2011 During Sept 2011 Total
Accounts Amt Accounts Amt Accounts AmtAccounts Amt. Accounts Amt. Accounts Amt.Adjusted /Closed
33866 932.42 2184 81.66 36050 1014.08
Upto June 2011 During Sept. 2011 Total
Accounts Amt. Accounts Amt. Accounts Amt.
14
Amount Recovered
94511 1420.47 17565 509.31 112076 1929.78
Investments have shown ath f 4 54% d Yi ld
Investments59295 61991
6.84500006000070000 8.00
growth of 4.54% and Yield onInvestments have increased by54 bps from 6.30% to 6.84%.
6.30
200003000040000 6.00
Out of Total AFS portfolio of` 11860 Crore, ` 4204 Crore(35 44%) is interest sensitive
1000020000
SEPT. 10 SEPT. 114.00
Investments Yield on Inv (35.44%) is interest sensitive.SEP10 % Duration SEP 11 % Duration
Held to Maturity 43051 72.60 5.48 49793 80.32 4.84
Investments Yield on Inv
y
Held for Trading 185 0.31 6.72 338 0.55 4.92
Available for Sale 16059 27.09 2.58 11860 19.13 1.86
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Total 59295 100.00 4.68 61991 100.00 4.39
228 77240 Book Value
156.72
228.77
193.49
140
160
180
200
220
240 Book Value
40
60
80
100
120
140
Cost to Income Ratio
0
20
40
SEPT 09 SEPT 10 SEPT 11BOOK VALUE
Earning Per Share
43.21 44.03
40
50
60Cost to Income Ratio
37.5135 83
40
50
60Earning Per Share
10
20
30
35.83
31.16
10
20
30
0
10
SEPT 10 SEPT-11Cost to Income ratio
1616
0
10
SEPT 09 SEPT 10 SEPT 11Earning Per Share
IMPROVED EFFICIENCYProductivity measured1064
1122 Productivity measuredby Business peremployee increased
1064
900
1000
1100
employee increasedfrom ` 1064 lacs to` 1122 lacs600
700
800
900
` 1122 lacs.Gross Profit peremployee has300
400
500
600
employee hasincreased from ` 15.21lacs to `15 52 lacs0
100
200
17
lacs to `15.52 lacs. SEPT 10 SEPT 11
BUSINESS PER EMPLOYEE
Movement of NPAsMovement of NPAsSEPT 10 MAR 11 SEPT 11
(` in crore)
Gross NPAs – Opening 2671 2671 3623Add : Additions 1753 2924 2587Less : Deductions 900 1972 1074ess educt o s 900 9 0
1. Due to Write Off 414 1126 5382. Due to upgradation/ Recoveries 486 846 536
Gross NPAs 3524 3623 5136Gross NPAs 3524 3623 5136Gross Credit 126423 153022 147284Gross NPA as a % age of GBC 2.79 2.37 3.49Net NPA 1462 1803 2959Net Advances 124142 150986 144854Net NPA as a % age of Net Advances 1.18 1.19 2.04
18
gCoverage % 70.00 67.58 60.52
Capital Adequacy
13 76
16
Capital Adequacy
12.53 12.54
13.76
12
14 •As per Basel II CapitalAdequacy Ratio is at12 54% as of 30th Sept
8.547.86
8.71
8
10 12.54% as of 30th Sept.,2011 as against 12.53%as of Sept. 2010.
4.004.675.05
4
6
as of Sept. 2010.
•Tier-I Core Capital Ratio isat 8 54% as of Sept 2011
0
2at 8.54% as of Sept. 2011
19
SEPT 09 SEPT 10 SEPT 11
CRAR TIER I TIER II
DISTRIBUTION CHANNELSDISTRIBUTION CHANNELSBRANCH MIX
SERVICE OUTLETS
631854
Including Hong Kong branch
SEPT 08
SEPT 09
SEPT 10
SEPT 11
722844
Branches Ext. Counters Service
243211735
27136643
28694946
30514245
Metro Urban Semi-Urban Rural
branches35 43 46 45
Total 2584 2822 2964 3138
ATMs 1402 2130 2419 2757Metro Urban Rural
South North West East
ATMs 1402 2130 2419 2757
20
720 1234 660 436
Shareholding Pattern (30th SEPT 2011)Shareholding Pattern (30th SEPT., 2011)14.29 Govt. of India
Banks, Fis, Ins. Cos.
• Share Capital Rs 635 crore
•No. of Equity Shares 524.33 million
57 07
15.84 Others
FIIs and ForeignMutual Funds
No. of Equity Shares 524.33 million
• Net worth Rs 11995 crore
• B. V. per share Rs 228.7757.07
12.8
•Return on Equity: 13.62%
•Market Cap (30.09.2011) : Rs. 12901 cr
SEPT 08 SEPT 09 SEPT 10 SEPT 11
GOVT. 55.43 55.43 55.43 57.07GOVT. 55.43 55.43 55.43 57.07FIIs & FMFs 19.31 17.03 18.57 11.91BANKS, INST./ MUTUAL FUNDS
11.85 12.76 11.88 14.72MUTUAL FUNDSOTHERS 13.41 14.78 14.12 16.30
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Launches / New Initiatives• The Bank on 18th August, 2011 launched “Union Chetna”- an information window for the
customers as well as employees. The Bank has been actively pursuing the goal of financialliteracy and awareness as an important demand-side driver of financial deepening andinclusive growth Union Chetna is an extension of such efforts The initiative was launched by
Launches / New Initiatives
inclusive growth. Union Chetna is an extension of such efforts. The initiative was launched byShri Anand Sinha, Deputy Governor, RBI in Mumbai.
• In the Bank’s quest to becoming the No.1 Retail Bank in Customer Service Excellence, theBank is building a new model, called ‘Branch of the Future’ that will enhance our customerg ,service capabilities to leverage higher wallet share of customers. Aptly names “UnionXperience” this strategy will help in building our retail asset and liabilities profile. Presently,this model has presently been rolled out in 35 branches in Mumbai and New Delhi. We expectto roll-out this model to around 250 branches by March 2012; subsequently the model will beto roll-out this model to around 250 branches by March 2012; subsequently the model will bereplicated in all the branches at metro and urban centres.
• The Bank is revamping its system of Human Resource Management with a view to givingprimary focus on building specialized skills and developing leadership chain. These initiativeswhich are being advised by M/s Hewitt Associates will not only start showing results in the
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which are being advised by M/s Hewitt Associates, will not only start showing results in thecurrent year but also prepare Union Bank for a higher trajectory of growth. We are focused ondeveloping capabilities for becoming the preferred banker to the NextGen customers and newBankable class.
Guidance 2011-12
The Bank aims for a deposits growth of 16% andThe Bank aims for a deposits growth of 16% andadvances growth of 17-18% for 2011-12.
NIM is expected to be at 3.20% by March 2012.
Gross NPAs of the Bank is expected to be around 2.65%by March 2012.
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DisclaimerExcept for the historical information contained herein, statements in thispresentation which contain words or phrases such as “is”, “aims”, ‘will’,
Disclaimer
‘would’, ‘indicating’, ‘expected to’ etc., and similar expressions or variationsof such expressions may constitute ‘forward-looking statements’. Theseforward-looking statements involve a number of risks, uncertainties andother factors that could cause actual results to differ materially from thosesuggested by the forward looking statements. These risks anduncertainties include, but are not limited to our ability to successfully, y yimplement our strategy, future levels of non-performing loans, our growthand expansion in business, the impact of any acquisitions, the adequacy ofour allowance for credit losses, technological implementation and changes,, g p g ,the actual growth in demand for banking products and services, investmentincome, cash flow projections, our exposure to market risks as well asother risks. Union Bank undertakes no obligation to update forward-looking
26
other risks. Union Bank undertakes no obligation to update forward lookingstatements to reflect events or circumstances after the date thereof.