City Union Bank (CUB) Q4 14/15 earnings summary

Executive summary

• FY15 net profit rose 13.83% to ₹395.02 crore; operating profit increased 19.28% to ₹692.65 crore, supported by higher other income and loan growth.

• Deposits grew 9.35% to ₹24,075 crore and gross advances rose 11.50% to ₹18,089 crore; the branch network expanded to 475.

Financial highlights

• Total income grew 9.81% to ₹3,102.96 crore; net interest income rose 6.32% to ₹807.37 crore and other income increased 44.39% to ₹404.10 crore.

• Profit before tax rose 25.98% to ₹521.02 crore; net profit increased 13.83% to ₹395.02 crore, while total provisions and contingencies rose to ₹308.52 crore from ₹233.90 crore.

• Adjusted excluding the ₹10.89 crore depreciation reversal, net profit was ₹384.13 crore; basic EPS was ₹6.63 and diluted EPS ₹6.55, versus ₹6.69 and ₹6.64 in FY14.

• Total assets increased 11.51% to ₹27,871.13 crore; operating expenses rose to ₹518.82 crore, while the cost-to-income ratio improved to 42.83% from 44.10%.

Outlook and guidance

• FY16 expected to remain challenging for business growth and asset quality, with subdued economic conditions anticipated to persist; efforts would focus on delivering the best possible results.

• Strategy prioritizes disciplined growth, customer service, technology-led efficiency, credit risk management, healthy earnings growth and low volatility.