Monday, July 30, 2012

UNION BANK OF INDIA - FIRST QUARTER RESULTS - Q1 FY 2013 - TOTAL INCOME UP 21.51%YoY; NPT UP 10.16%YoY; NPAs Rise, a matter of Concern


UNION BANK OF INDIA

FIRST QUARTER RESULTS
Q1 FY 2013

Union Bank has released Mediocre results for the first quarter ending June, 2012.
HIGH LIGHTS

Total Income for Q1 FY 12 stands at Rs.6561.10 Cr; up by   0.96% from Q4 FY 12 amount of Rs.6498.79 Cr; and up by  21.51% from Q1 FY 12 amount of Rs.5399.68 Cr.

Total Expenditure  for Q1 FY 12 stands at Rs.5294.04 Cr; up by 8.04% from Q4 FY 12 amount of Rs.4900.00 Cr; and up by      25.04% from Q1 FY 12 amount of Rs.4233.88 Cr.

Profit before Interest, Dep. & Taxes for Q1 FY 12 stands at Rs.1267.06 Cr; DOWN by -20.75% from Q4 FY 12 amount of Rs.1598.79 Cr; and up by   8.69% from Q1 FY 12 amount of Rs.1165.80 Cr.

Net Profit      for Q1 FY 12 stands at Rs.511.59 Cr; Down by -33.83% from Q4 FY 12 amount of Rs.773.19 Cr; and up by  10.16% from Q1 FY 12 amount of Rs.464.42 Cr.

Diluted EPS   for Q1 FY 12 stands at Rs.9.29; and at Rs.14.74 for Q4 FY 12; and at Rs.8.86 in Q1 FY 12.

DETAILS

Interest on Advances  for Q1 FY 12 stands at Rs.4729.23 Cr; up by 7.87% from Q4 FY 12 amount of Rs.4384.03 Cr; and up by 25.97% from Q1 FY 12 amount of Rs.3754.17 Cr.

Income on Investments     for Q1 FY 12 stands at Rs.1265.69 Cr; up by   3.51% from Q4 FY 12 amount of Rs.1222.79 Cr; and up by  19.02% from Q1 FY 12 amount of Rs.1063.40 Cr.

Income on Balances With RBI for Q1 FY 12 stands at Rs.52.92 Cr; down by    -8.81% from Q4 FY 12 amount of Rs.58.03 Cr; and down by   -29.9% from Q1 FY 12 amount of Rs.75.49 Cr.

Interest Earned    for Q1 FY 12 stands at Rs.6069.90 Cr; up by 5.68% from Q4 FY 12 amount of Rs.5743.41 Cr; and up by  23.48% from Q1 FY 12 amount of Rs.4915.72 Cr.

Other Income    for Q1 FY 12 stands at Rs.491.20 Cr; down by -34.97% from Q4 FY 12 amount of Rs.755.38 Cr; and up by 1.5% from Q1 FY 12 amount of Rs.483.96 Cr.

Total Income   for Q1 FY 12 stands at Rs.6561.10 Cr; up by 0.96% from Q4 FY 12 amount of Rs.6498.79 Cr; and up by   21.51% from Q1 FY 12 amount of Rs.5399.68 Cr.

Interest Expended for Q1 FY 12 stands at Rs.4248.17 Cr; up by 9.86% from Q4 FY 12 amount of Rs.3866.81 Cr; and up by  27.74% from Q1 FY 12 amount of Rs.3325.51 Cr.

Total Expenditure(Excl.Provisions)  for Q1 FY 12 stands at Rs.5294.04 Cr; up by 8.04% from Q4 FY 12 amount of Rs.  4900.00 Cr; and up by  25.04% from Q1 FY 12 amount of Rs.4233.88 Cr.The rise in expenditure is proportionately much higher compared to rise in Total Income. That has reduced profitability all the way.

Operating Profit   for Q1 FY 12 stands at Rs.1267.06 Cr; down by -20.75% from Q4 FY 12 amount of Rs.1598.79 Cr; and up by 8.69% from Q1 FY 12 amount of Rs.1165.80 Cr.

Provisions for Q1 FY 12 stands at Rs.518.47 Cr; up by 0.26% from Q4 FY 12 amount of Rs.517.15 Cr; and up by 21.03% from Q1 FY 12 amount of Rs.428.38 Cr.

Profit  before tax for Q1 FY 12 stands at Rs.748.59 Cr; down by -30.79% from Q4 FY 12 amount of Rs.1081.64 Cr; and up by 1.51% from Q1 FY 12 amount of Rs.737.42 Cr. The PBT levels have deteriorated.

Tax Expense for Q1 FY 12 stands at Rs.237.00 Cr; down by -23.16% from Q4 FY 12 amount of Rs.308.45 Cr; and down by -13.19% from Q1 FY 12 amount of Rs. 273.00 Cr. The lesser Tax expense has saved the dya – and has improve Net Profit levels to some extent YoY.

Net Profit for Q1 FY 12 stands at Rs.511.59 Cr; down by -33.83% from Q4 FY 12 amount of Rs.773.19 Cr; and up by  10.16% from Q1 FY 12 amount of Rs.464.42 Cr. NPT is down steeply sequentially, though it is up 10% YoY.

Face Value of the Share stands at Rs.10; while, the Paid-up Equity stands at Rs.661.55 Cr.

Capital Adequacy Ratio      for Q1 FY 12 stands at 11.64% under Basel II (of which the Tier I CRAR is at 8.36%.); while CAR was 11.85% in Q4 FY 12; and 12.88% in Q1 FY 12. CAR is reasonable, but Bank may have to raise additional capital for FY 13 requirements.

Diluted EPS   for Q1 FY 12 stands at Rs.9.29; while the same was Rs.14.74 in Q4 FY 12; and Rs.8.86 in Q1 FY 12. The EPS has come down sequentially, thugh it has grown marginally YoY.

EPS (annualised) in Q1/FY13 was Rs.37.17 compared to Rs.35.43 in Q1/FY12. At the current MKT Price of around Rs.165, the PE Ratio works out to 4.44.

Gross/Net NPA     for Q1 FY 12 stands at Rs.3747.18 Cr; up by 23.87% from Q4 FY 12 amount of Rs.3025.03 Cr; and up by 97.92% from Q1 FY 12 amount of Rs.1893.30 Cr.

% of Gross/Net NPA   for Q1 FY 12 stands at 2.2%; while the same was 1.7% in Q4 FY 12; and 1.32% in Q1 FY 12.The Net NPAs Percentage has risen very steeply –reflecting the sharp deterioration in Asset Quality.

 Return on Assets  for Q1 FY 12 stands at 0.79%; while the same was 1.31% in Q4 FY 12; and 0.86% from Q1 FY 12.

Public Shareholding for Q1 FY 12 stands at 45.65%.

52 week high/low price : Rs.311.90/155.45

Current Price : Rs.165

OTHER DETAILS

Net Interest Income for Q1/FY13 increased by 14.59% to Rs.1822 Cr from Rs.1590 Cr in Q1/FY12

Net Interest Margin (on earning  assets) for Q1/FY13 was 3.01%, as
compared to 3.10% in Q1/FY12.

Non Interest Income for Q1/FY13 up by 1.45% to Rs.491 Cr, compared to Rs.484 Cr in Q1/FY12 of which  core Non Interest Income  registered growth of 17.37%.

Return on average assets (annualised) in Q1/FY13 was 0.79% compared to 0.86% in Q1/FY12.

Return on equity (annualised) in Q1/FY13 was 15.06% compared to 15.96% in Q1/FY12. 

Balance Sheet

Global Business grew by 14.87%, from Rs.344745 Cr as on June 30, 2011 to Rs.396021 Cr as on June 30, 2012.

Domestic Deposits increased from Rs.198544 cr. in June’11 to  Rs.220987 cr., a growth of 11.30%. Global Deposits increased from   Rs.199178 Cr as on June 30, 2011 to Rs.222110 Cr as on June 30, 2012 a growth rate of 11.51%.
CASA deposits grew by 9.52% to  Rs.68742 Cr from Rs.62768 Cr in the previous year. CASA share in total deposits was at 30.95%. 

Domestic Advances increased from Rs.138857 cr. to Rs.163229 cr., a growth of 17.55%. Global Advances increased from Rs.145567 Cr (June 2011) to Rs.173911 Cr (June 2012), a growth rate of 19.47%.

Delivery Channels  :- Bank has 3239 branches. 40 branches were opened during the first quarter.

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