City Union Bank (CUB) Q4 15/16 earnings summary

Executive summary

• FY16 total business reached ₹48,411 crore, up 15% YoY; deposits grew 13% and gross advances 17%.

• Net profit rose 13% to ₹444.69 crore; operating profit increased 20% to ₹833 crore.

• Growth came amid rising NPAs and subdued banking-sector credit conditions; network expansion and technology investment supported operations.

Financial highlights

• Total income was ₹3,354.19 crore, up 8.10%; net revenue rose 14.82% to ₹1,391.01 crore.

• Net interest income increased 21.51% to ₹981 crore; other income was ₹409.98 crore versus ₹404.10 crore.

• Profit before tax rose 15.68% to ₹602.69 crore; net profit reached ₹444.69 crore, up 12.57%.

• Deposits grew 13% to ₹27,158 crore; gross advances increased 17.49% to ₹21,253 crore; total assets rose 12.13% to ₹31,251.96 crore.

• Operating profit was ₹833 crore versus ₹693 crore; provisions and contingencies increased to ₹388.59 crore from ₹308.52 crore.

Outlook and guidance

• FY16-17 outlook targets higher business and profits, supported by expected 8% domestic GDP growth, technology, trained staff and capital funds.

• Plans called for further branch and ATM additions to increase market share and business growth.