City Union Bank (CUB) Q4 20/21 earnings summary

Executive summary

• FY21 total business rose 8% YoY to ₹81,558 crore; net profit reached ₹593 crore, up 25% in the financial highlights.

• NII grew 9% to ₹1,830 crore, while gross and net NPAs increased to 5.11% and 2.97%, respectively.

Financial highlights

• Total income was ₹4,839 crore versus ₹4,849 crore; total expenses fell 4% to ₹3,356 crore.

• Operating profit rose 11% to ₹1,484 crore; provisions and contingencies increased 3% to ₹891 crore.

• Net profit was ₹592.82 crore versus ₹476.32 crore; reported growth was 24% in the performance discussion.

• Deposits increased 9% to ₹44,537 crore; gross advances rose 7% to ₹37,021 crore.

• CASA grew 27% to ₹12,981 crore; non-interest income rose 4% to ₹705 crore, mainly on higher treasury income.

Outlook and guidance

• Recovery in H2 FY22 was expected to strengthen if COVID-19 cases declined and vaccine availability improved; localized lockdowns continued to weigh on activity.

• Resolution Framework 2.0 and the expanded ECLGS were cited as support for borrowers and recovery; renewed COVID waves could delay recovery and weaken credit demand.