UCO Bank (UCOBANK) Q2 24/25 earnings summary

Executive summary

• Net profit for Q2 FY25 rose 50% year-over-year to ₹603 crore, with operating profit up 45.82% to ₹1,432 crore and net interest income up 20.03% to ₹2,301 crore.

• Total business grew 13.56% year-over-year to ₹4,73,704 crore, with advances up 18% to ₹1,97,927 crore and deposits up 10.57% to ₹2,75,777 crore.

• Retail advances rose 29.36%, driven by home loan growth of 18.98% and vehicle loan growth of 38.66%.

• Digital transformation initiatives, including Project Parivartan and new digital journeys, are underway.

• Board approved reviewed standalone and consolidated financial results for the quarter and half year ended 30th September 2024, with a clean limited review opinion from statutory auditors.

Financial highlights

• Net interest income for Q2 FY25 was ₹2,301 crore, up 20.03% year-over-year; non-interest income surged 53.48% to ₹993 crore.

• Operating profit for Q2 FY25 was ₹1,432 crore, up 45.82% year-over-year; cost-to-income ratio improved to 56%.

• Gross NPA ratio improved to 3.18% (down 96 bps YoY); net NPA at 0.73% (down 38 bps YoY); provision coverage ratio at 95.94%.

• Return on assets (annualized) at 0.75% (standalone), 0.76% (consolidated) for Q2 FY25; RoE at 14.22%.

• Earnings per share (standalone) for Q2 FY25 at ₹0.46; consolidated EPS at ₹0.51.

Outlook and guidance

• Deposit growth guidance of 8%-10%, with actual growth at 10.57%; CASA growth guidance of 8%-10%, achieved 8.09% in Q2.

• Credit growth guidance of 12%-14%, with actual growth at 18%; CD ratio target of 75% by March 2025, currently at 71.77%.

• Bank plans to raise up to ₹4,000 crore in equity capital in FY25.

• No new funds were raised during the quarter; all previously raised funds have been fully utilized as per stated objectives.

• Expectation to maintain or exceed recovery targets and asset quality.