UCO Bank (UCOBANK) Q1 24/25 earnings summary

Executive summary

• Net profit for Q1 FY25 surged 147.09% YoY to ₹551 crore (₹55,096 lakh), driven by strong net interest income and improved asset quality.

• Operating profit rose 9.81% YoY to ₹1,321 crore, with net interest income up 12.2% YoY at ₹2,254 crore.

• Gross advances grew 17.64% YoY to ₹1,93,253 crore, and deposits increased 7.39% YoY to ₹2,68,155 crore.

• Asset quality improved: gross NPA at 3.32% (down 116 bps YoY), net NPA at 0.78% (down 40 bps YoY).

• Board approved reviewed standalone and consolidated financial results for the quarter, with unmodified auditor opinion.

Financial highlights

• Total income rose 17% YoY to ₹6,85,942 lakh; interest income up 15.31% YoY to ₹6,024 crore.

• Non-interest income grew 31.91% YoY to ₹835 crore.

• Net interest margin (NIM) domestic at 3.29%, global at 3.09%.

• Cost-to-income ratio improved to 59.74% from 61.57% YoY.

• Return on assets (annualized) at 0.70%; return on equity (annualized) at 13.51%.

Outlook and guidance

• Deposit growth guidance at 8%-10%, advances growth at 12%-14% for FY25.

• Retail, agriculture, and MSME segments expected to remain key growth drivers.

• Digital transformation and product digitization planned over the next 12 months.

• Bank continues to hold Covid-19 and stressed asset provisions.

• No new funds raised during the quarter; all previous funds fully utilized.