Union Bank of India- Financial Results-December 2009
Financial Performance (Quarterly) :
o Total Income increased to Rs.3758 crs in Dec. 09 from Rs.3654 crs in Dec. 08.
o Interest Income increased to Rs.3293 crs in Dec. 09 from Rs.3259 crs in Dec. 08.
o The Bank’s Net Interest Income reduced from Rs.1125 crs in Dec. 08 to Rs.1064 crs, decrease of 5.42%. Net Interest Income started moving up from Sept. 2009 as a result of corrective measures taken. On a sequential basis NII recorded a growth of 23.15% to Rs 1064 crs in Dec’09 quarter from Rs 864 crs in Sept’09 quarter.
o Non-interest income increased to Rs.465 crs in Dec. 09 quarter from Rs.395 crs in Dec 08 quarter. Core fee Income for Dec. 09 quarter has increased to Rs.214 crs from Rs.163 crs in Dec. 08 quarter registering a growth of 31.69%.
o Operating expenses have reduced to Rs.615 crs in Dec. 09 from Rs.666 crs for the quarter ended Dec.’08.
o Operating Profit increased to Rs.914 crs in Dec. 09 as compared to Rs.854 crs in Dec. 08.
Asset Quality:
o The Gross NPAs as on 31st Dec. 09 was at Rs.2092 crs as compared to Rs.1564 crores as at 31st Dec 08. The Gross NPAs to Gross Advances as on 31st Dec. 09 was at 1.96% as compared to 1.68% as on 31st Dec’08. However, the Bank has been able to retain the NPA at March’09 level of 1.96% despite downturn in the economy.
o The Net NPAs as on 31st Dec. 09 was at Rs.613 crs as compared to Rs. 127 crores as on 31st Dec’08. Net NPAs to Net Advances as of 31st Dec. 09 was at 0.58% as compared to 0.14% as of 31st Dec. 08.
o The coverage of provisions for NPAs as on 31st Dec. 09 was at 80.04% as compared to 91.85% as on 31st Dec’08 and 83.05% as on 31st March 09.
Ratio Analysis (Quarterly):
o The Net Interest Margin (NII to Earning Assets) of the Bank stood at 2.71% for the quarter ended 31st Dec. 09 as compared to 3.55% as on 31st Dec’08. However, NIM has improved from 2.28% for the quarter ended 30th June’09 and 2.34% for the quarter ended Sept. 09.
o Return on Average Assets is at 1.29% in quarter ended Dec. 09 as compared to 1.92 in quarter ended Dec’08. RoA as of Dec’09 is consistent with the last two years’ level of 1.27% as of 31st March 09 and 1.26% as of 31st March 08.
o Return on Equity (RoE) is at 25.28% as of Dec. 09 quarter as compared to 39.15% for Dec’08 quarter. RoE for Dec’09 is consistent with the last two years’ level of 24.79% as of 31st March 09 and 24.70% as of 31st March 08.
o EPS and Book value stood at Rs.39.10 and Rs.167.34 in Dec. 09 as against Rs.33.30 and Rs.135.89 respectively in Dec 08.
o Cost to Income Ratio improved to 41.29% in Dec. 09 from 43.04% in Dec 08.
FUTURE PLANS
The Bank aims for a deposit growth of approx. 20% and advances growth of 18% for 2009-10.
Bank targets CASA ratio of 35% by March 2012.
Return on Equity (ROE) to be 25% and Return on Average Assets (ROA) to be 1.25% by March 2010.
Transactions through electronic mode to reach 35% of total transactions by March 2010.
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(This is a press release from Union Bank of India)
