Monday, May 14, 2012

UNION BANK OF INDIA - RESULTS - For Q4 FY 12 -NPT UP 29.38% YoY (GOOD PROGRESS IN Q4) - FY 2012 - MINUS 15% YoY - DUE TO PROVISIONS & NPAs - GUIDANCE FOR FY 13 IS GOOD


Union Bank of India
NSE Symbol        UNIONBANK

UNION BANK of India has declared its results for Q4 and FY2012.

Annual results review
FY12(consol) vs FY 11(Consol) vs FY 10 (NC)

Interest on Advances in FY 12 stands at Rs.16026.63 Cr; up 33% from FY 11 (Rs.12031.24 Cr); and up 65% from FY 10 (Rs.9696.36 Cr).

Income on Investments                in FY 12 stands at Rs.4578.28 Cr; up 14% from FY 11 (Rs.4011 Cr); and up 31% from FY 10 (Rs.3482.30 Cr).

Interest Earned                in FY 12 stands at Rs.21152.48 Cr; up 29% from FY 11 (Rs.16460.94 Cr); and up 59% from FY 10 (Rs.13302.68 Cr).

Other Income    in FY 12 stands at Rs.2316.31 Cr; up 14% from FY 11 (Rs.2039.72 Cr); and up 17% from FY 10 (Rs.1974.74 Cr).

Total Income     in FY 12 stands at Rs.23468.79 Cr; up 27% from FY 11 (Rs.18500.66 Cr); and up 54% from FY 10 (Rs.15277.42 Cr).Total Income has of course grown impressively YoY.

Interest Expended in FY 12 stands at Rs.14229.73 Cr; up 39% from FY 11 (Rs.10234.31 Cr); and up 56% from FY 10 (Rs.9110.27 Cr).

Net Interest Income in FY 12 stands at Rs.6922.75 Cr; up 11% from FY 11 (Rs.6226.63 Cr); and up 65% from FY 10 (Rs.4192.41 Cr). Increase in NII also is impressive.

Employees cost                in FY 12 stands at Rs.2496.51 Cr; down    -4% from FY 11 (Rs.2604.23 Cr); and up   84% from FY 10 (Rs.1354.49 Cr).

Other Operating Expenses in FY 12 stands at Rs.                1519.76 Cr; up    11% from FY 11 (Rs.1370.05 Cr); and up 32% from FY 10 (Rs.1153.35 Cr).

Operating Expenses in FY 12 stands at Rs.4016.27 Cr; up 1% from FY 11 (Rs.3974.28 Cr); and up    60% from FY 10 (Rs.2507.84 Cr).

Total Expdr(Excl.Provisions) in FY 12 stands at Rs.18246 Cr; up 28% from FY 11 (Rs.14208.59 Cr); and up 57% from FY 10 (Rs.11618.11 Cr). Expenditure has grown more than proportionately compared to Income.

Operating Profit  in FY 12 stands at Rs.5222.79 Cr; up 22% from FY 11 (Rs.4292.07 Cr); and up 43% from FY 10 (Rs.3659.31 Cr). At the OPT level, performance of Union Bank is quite impressive.

Provisions in FY 12 stands at Rs.2541.42 Cr; up    88% from FY 11 (Rs.1349.59 Cr); and up  208% from FY 10 (Rs.826.39 Cr). Provisions has grown very fast in LAT 2 YEARS.

Profit before tax in FY 12 stands at Rs.2681.37 Cr; down -9% from FY 11 (Rs.2942.48 Cr); and down -5% from FY 10 (Rs.2832.92 Cr). Because of excessive Provisions, the PBT has actually come down compared to LAST 2 Years.

Tax Expense in FY 12 stands at Rs.925.62 Cr; up 6% from FY 11 (Rs.873.45 Cr); and up 22% from FY 10 (Rs.758.00 Cr). There is growth in Tax expense also.

Net Profit in FY 12 stands at Rs.1755.75 Cr; down -15% from FY 11 (Rs.2069.03 Cr); and down -15% from FY 10 (Rs.2074.92 Cr). There is a 15% negative turn in NPT because of High Provisions and higher Tax Expense.

Face Value of the share stands at Rs.10

Paid-up Equity  in FY 12 stands at Rs.661.55Cr.

Reserves in FY 12 stands at Rs.12583.32 Cr; up 17% from FY 11 (Rs.10723.27 Cr); and up   52% from FY 11 (Rs.8302.69 Cr).

Capital Adequacy Ratio in FY 12 stands at 11.85%;compared to 12.95% in FY 11; and 12.51% in FY 10.

Basic EPS in FY 12 stands at Rs.33.79;compared to Rs.39.46 in FY 11; and Rs.41.08 in FY 10 – indicating a clear downturn in profitability.

Gross/Net NPA in FY 12 stands at Rs.3025.23 Cr; up 68% from FY 11 (Rs.1803.44 Cr); and up 213% from FY 11 (Rs.965.33 Cr). A213% increase in NPAs in last 2 years has taken a big toll in terms of Profitability.

% of Gross/Net NPA in FY 12 stands at 1.7% ;compared to 1.19% in FY 11; and 0.81% in FY 10.

Return on Assets in FY 12 stands at 0.79% in FY 12; compared to 1.05% in FY 11; and 1.25% in FY 10.

QUARTERLY RESULTS REVIEW
Q4FY12 vs Q3FY12 vs Q4 FY11

The quarterly results comparison is given below :

Interest on Advances in Q4 FY 12 stands at Rs.4384.03 Cr; up 8.79% from Q3 FY 12 (Rs.4029.81 Cr); and up 26.8% from Q4 FY 11 (Rs.3457.56 Cr).

Income on Investments   in Q4 FY 12 stands at Rs.1222.79 Cr; up 6.98% from Q3 FY 12 (Rs.1142.96 Cr); and up 8.31% from Q4 FY 11 (Rs.1033.54 Cr).

Interest Earned  in Q4 FY 12 stands at Rs.5743.41 Cr; up    6.86% from Q3 FY 12 (Rs.5374.71 Cr); and up 24.44% from Q4 FY 11 (Rs.4615.26 Cr).

Other Income    in Q4 FY 12 stands at Rs.755.38 Cr; up 27.57% from Q3 FY 12 (Rs.592.11 Cr); and up 25.78% from Q4 FY 11 (Rs.600.55 Cr).

Total Income     in Q4 FY 12 stands at Rs.6498.79 Cr; up    8.92% from Q3 FY 12 (Rs.5966.82 Cr); and up 24.6% from Q4 FY 11 (Rs.5215.81 Cr). Total Income has grown reasonably compared to previous and corresponding Qtrs.

Interest Expended in Q4 FY 12 stands at Rs.3866.81 Cr; up 7.6% from Q3 FY 12 (Rs.3593.85 Cr); and up  33.4% from Q4 FY 11 (Rs.2898.74 Cr).

Net Interest Income   in Q4 FY 12 stands at Rs.1876.60 Cr; up 5.38% from Q3 FY 12 (Rs.1780.86 Cr); and up  9.33% from Q4 FY 11 (Rs.1716.52 Cr). NII growth is good.

Total Expenditure(excl.provisions)  in Q4 FY 12 stands at Rs.4900 Cr; up  4.64% from Q3 FY 12 (Rs.4682.72 Cr); and up  12.74% from Q4 FY 11 (Rs.4346.27 Cr). Expenditure in Q4 FY 12 has gorwn less than proportionately compared to Income in previous and corresponding Qtrs.

Operating Profit  in Q4 FY 12 stands at Rs.1598.79 Cr; up 24.51% from Q3 FY 12 (Rs.1284.10 Cr); and up 83.87% from Q4 FY 11 (Rs.869.54 Cr). Operating Profit has grown decently in Q4 FY 12 compared to previous and corresponding Qtrs.

Provisions  in Q4 FY 12 stands at Rs.517.15 Cr; down -46.83% from Q3 FY 12 (Rs.972.67 Cr); and up 237.5% from Q4 FY 11 (Rs.153.23 Cr). Provisions are showing a downward trend in Q4 FY 12.

Profit  before tax in Q4 FY 12 stands at Rs.1081.64 Cr; up 247.31% from Q3 FY 12 (Rs.311.43 Cr); and up    51% from Q4 FY 11 (Rs.716.31 Cr). Growth in PBT is impressive.

Tax Expense in Q4 FY 12 stands at Rs.308.45 Cr; up 169.55% from Q3 FY 12 (Rs.114.43 Cr); and up 159.83% from Q4 FY 11 (Rs.118.71 Cr). Tax has grown considerably in Q4 FY 12 compared to Q4 FY 11.

Net Profit  in Q4 FY 12 stands at Rs.773.19 Cr; up 292.48% from Q3 FY 12 (Rs.197 Cr); and up 29.38% from Q4 FY 11 (Rs.597.60 Cr). Overall Net Profit growth in Q4 FY 12 is very good.

Capital Adequacy Ratio in Q4 FY 12 stands at 11.85%; compared to 11.72% in Q3 FY 12; and 12.95% in Q4 FY 11. CAR is reasonable and can support grown well in next quarter.

Basic EPS in Q4 FY 12 stands at Rs.14.74; compared to Rs.3.76 in Q3 Fyn 12 and Rs.11.38 in Q4 FY 11. EPS Growth is impressive.

Gross/Net NPA in Q4 FY 12 stands at Rs.3025.03 Cr; up    5.08% from Q3 FY 12 (Rs.2878.91 Cr); and up 67.74% from Q4 FY 11 (Rs.1803.44 Cr). NPAs have grown high – and do need greater control.

 % of Gross/Net NPA in Q4 FY 12 stands at 1.7%; compared to 1.88% in Q3 FY 12; and 1.19% in Q4 FY 11.

Return on Assets in Q4 FY 12 stands at 1.31%; compared to 0.35% in Q3 FY 12; and 1.05% in Q4 FY 11. Though &of Net NPAs is still better than some other banks, yet, NPAs do seem to need better control.

OTHER DETAILS

Performance for the quarter-ended March 31, 2012

Net Interest Income for Q4/FY12 up 9.32% to Rs. 1877 Cr from Rs.1717 Cr in Q4/FY11

Net Interest Margin (on earning assets) for Q4/FY12 was 3.26%, as compared to 3.44% in Q4/FY11.

Non Interest Income for Q4/FY12 up by 25.72% to Rs. 755 Cr, compared to Rs. 601 Cr in Q4/FY11.

Net Profit for Q4/FY12 increased to Rs.773 Cr as compared to Rs. 598 Cr in Q4/FY11 an increase of 29.26%.

Gross NPA ratio stood at 3.01% in Q4/FY12 as against 2.37% in March’11.

Net NPA ratio stood at 1.70% as against 1.19% in March’11.

Performance on Sequential basis for Q4-12 Over Q3-12

Net Interest Income for Q4/FY12 up 5.39% to Rs. 1877 Cr from Rs. 1781 Cr in Q3/FY12

Net Interest Margin (on earning assets) for Q4/FY12 was 3.26%,as compared to 3.31% in Q3/FY12.

Non Interest Income for Q4/FY12 up by 27.53% to Rs. 755 Cr, compared to Rs. 592 Cr in Q3/FY12.

Gross NPA ratio stood at 3.01% in Q4/FY12 as compared to 3.33% in Q3/FY12. 

Net NPA ratio stood at 1.70% in Q4/FY 12 as compared to 1.88% in Q3/FY 12.

Net Profit for Q4/FY12 increased to Rs 773 Cr from Rs 197 crs as of Q3/FY12.

Performance for the 12 month period ended March 31, 2012

Net Interest Income for FY12 up 11.15% to Rs. 6909 Cr from Rs.6216 Cr in FY11

Net Interest Margin (on earning assets) for FY12 was 3.21%, as compared to 3.33% in FY11.

Non Interest Income for FY12 was Rs. 2332 Cr, compared to Rs. 2039 Cr in FY11, an increase of 14.37%.

Net Profit for FY12 stood at Rs. 1787 Cr as compared to Rs. 2082 Cr in FY11. Reduction is attributed to increase in provisions, towards NPAs, restructured advances and depreciation on investments.

Bank added 2.77 million CASA accounts during the year.

Balance Sheet

Global Business grew by 13.62%, from Rs. 355483 Cr to Rs. 403900 Cr as on March 31, 2012.

Global Deposits increased from Rs. 202461 Cr (March 2011) to Rs.222869 Cr (March 2012) a growth rate of 10.08%.

CASA share in total deposits was at 31.28%.

Global Advances increased from Rs. 153022 Cr (March 2011) to Rs.181031 Cr (March 2012), a growth rate of 18.30%.

Capital Adequacy

Capital Adequacy ratio of the Bank, under Basel II, is 11.85% as on March 31, 2012 as compared to 12.95% as on March 31, 2011.

The Tier I CRAR is at 8.37% as on March 2012 as against 8.69% in March 2011.

Dividend
• The Bank’s Board has recommended a dividend of Rs 8 per share for 2011-12.

Guidance for 2012-13

• The Bank projects a growth of 17% for Deposits and 19% for Advances for 2012-13.

• The Net Interest Margin (NIM) of the Bank is expected to be above 3% for 2012-13.


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