City Union Bank (CUB) Q4 22/23 earnings summary

Executive summary

• FY23 total business rose 8% to ₹96,369 crore; net profit increased 23% to ₹937.48 crore, supported by 13% NII growth and lower cost-to-income ratio.

• Deposits grew 10% to ₹52,397.86 crore and gross advances rose 7% to ₹43,970.80 crore; the network expanded by 25 branches to 752.

Financial highlights

• Total income reached ₹5,524.70 crore, up 14% YoY; total expenses were ₹3,707 crore, up 13%.

• Operating profit increased 14% to ₹1,817.98 crore; net profit rose 23% to ₹937.48 crore from ₹760.16 crore.

• NII grew 13% to ₹2,162.80 crore; non-interest income increased 7% to ₹810.36 crore, mainly from recoveries in technical write-off accounts.

• Gross investments grew 17% to ₹14,360.18 crore; total assets increased 8% to ₹66,594.56 crore.

Outlook and guidance

• FY24 India real GDP growth was projected at 6.5%, with quarterly estimates of 8.0% in Q1, 6.5% in Q2, 6.0% in Q3 and 5.7% in Q4; risks were assessed as evenly balanced.

• Domestic demand, household consumption, government capex and investment were expected to support growth; expansion beyond southern states was under consideration.

• Green deposits, energy-efficient equipment, solar adoption where feasible and paperless lending were identified as priorities, with aims set for FY24.