City Union Bank (CUB) investor relations material

Executive summary

• Achieved record quarterly PAT of INR 3,059 million (₹30,591.96 lakhs), up 16% YoY, with gross profit up 21% and net interest income up 15%.

• Deposits grew 20% YoY to INR 657,345 million, advances up 16% to INR 540,203 million, and total business rose 18% to INR 1,197,548 million.

• Asset quality improved, with gross NPA at 2.99% (down from 3.88%) and net NPA at 1.20% (down from 1.87%) YoY.

• Capital adequacy remains strong at 23.10% (Basel III), with Tier I at 22.09%.

• Retail and MSME segments are core growth drivers, with retail disbursements of INR 825 crores and gold loans up 31% YoY.

Financial highlights

• Advances increased to INR 54,420 crores, deposits reached INR 65,734 crores, and total income for Q1 FY2026 was ₹184,920.40 lakhs.

• Net profit for Q1 FY2026 stood at ₹30,591.96 lakhs, with operating profit before provisions at ₹45,091.96 lakhs.

• NIM held steady at 3.54% for Q1 FY26; ROA at 1.55% and ROE at 12.85%.

• Cost-to-income ratio improved to 48.12% from 49.34% YoY.

• Earnings per share for Q1 FY26 was INR 4.13, up from INR 3.57 in Q1 FY25.

Outlook and guidance

• Credit growth expected to remain 2–3% above industry, with mid-teen growth targeted.

• NIM guidance maintained at ~3.5% for FY26, with minor fluctuations expected in Q2.

• ROA expected to stay above 1.5%; cost-to-income ratio to remain in 48–50% range.

• Focus remains on MSME, retail, and digitalization, with strong capital ratios.