City Union Bank (CUB) Q4 16/17 earnings summary

Executive summary

• FY17 business grew 12% to ₹54,228 crore; deposits rose 11%, advances 13%, operating profit 19% and net profit 13%.

• Technology-led services expanded, with 83% of customer transactions conducted through digital channels and 25 branches added during the year.

Financial highlights

• Total income increased 9% to ₹3,657.73 crore; net interest income rose 22% to ₹1,199 crore and other income reached ₹483.95 crore.

• Operating profit grew 19% to ₹993.74 crore; net profit increased 13% to ₹502.77 crore, while provisions and contingencies rose 26% to ₹490.97 crore.

• Deposits rose 11% to ₹30,115.74 crore; gross advances increased 13% to ₹24,112 crore and total assets grew 11% to ₹35,271 crore.

• CASA grew 27% to ₹7,038.95 crore, 23% of deposits; deposit cost fell to 6.82% from 7.62%.

Outlook and guidance

• FY18 GDP growth was projected at 6.75%–7.50%; GST rollout from July 2017 and financial reforms were viewed as potential supports for investment and the business environment.

• Expected lending-rate reductions after demonetization and sound risk management, capital adequacy, technology and staff were cited as supports for higher business and profit growth.