City Union Bank (CUB) Q3 24/25 earnings summary

Executive summary

• Achieved credit growth of 14.6% YoY in Q3 FY25, with gross advances rising to ₹504,093 Mn and deposits up 11% YoY to ₹582,713 Mn as of December 2024.

• Net profit for Q3 FY25 increased 13% YoY to ₹2,860 Mn, with 9M FY25 net profit up 10% to ₹8,356 Mn; operating profit for Q3 FY25 rose 20% YoY to ₹43,599.54 lakhs.

• Asset quality improved, with gross NPA down to 3.36% (from 4.47% YoY) and net NPA at 1.24%-1.42% in Q3 FY25.

• Focus remains on MSME, secured lending, and digital initiatives, with minimal unsecured retail exposure and a granular asset profile.

• Board approved unaudited standalone financial results for Q3 and 9M FY25, reflecting compliance with revised RBI investment portfolio guidelines.

Financial highlights

• Interest income for Q3 FY25 was ₹1,479 crore, with total income at ₹170,712.36 lakhs, and net interest margin at 3.58%-3.59%.

• Cost-to-income ratio improved to 46.58%-47.61% YoY.

• ROA at 1.56%-1.57% and ROE at 12.64%-12.68% for Q3/9M FY25.

• Recoveries (₹249 crore) exceeded slippages (₹201 crore) in Q3 FY25.

• Basic EPS for Q3 FY25 was ₹3.86, up from ₹3.42 in Q3 FY24.

Outlook and guidance

• Credit growth guidance of 12-14% annually for the next 2-3 years, with focus on MSME and retail lending.

• Retail advances expected to contribute 2-2.5% in FY26, rising to 8-9% over 3-4 years.

• Deposit growth to broadly match credit growth, targeting a CD ratio of 85%.

• Margins expected to remain stable at 3.6% ±10 bps; credit costs to stay at 60-65 bps.

• Financial results incorporate new RBI investment classification and valuation norms.