UCO Bank (UCOBANK) Q3 24/25 earnings summary

Executive summary

• Business grew 12.28% year-over-year in Q3 FY25, reaching ₹4,88,911 crore, with deposits up 9.36% and advances up 16.44%.

• Net profit for Q3 FY25 rose 27.04% YoY to ₹639 crore (₹63,883 lakh), with operating profit up 41.73% to ₹1,586 crore.

• Asset quality improved: gross NPA at 2.91% (down 94 bps YoY), net NPA at 0.63% (down 35 bps YoY).

• Retail advances grew 31%, with home loans up 19.36% and vehicle loans up 51.93%.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended 31st December 2024.

Financial highlights

• Net interest income rose 19.62% YoY to ₹2,378 crore; non-interest income up 37.75% YoY to ₹1,186 crore.

• Global NIM at 3.17% (up 33 bps YoY); domestic NIM at 3.38%.

• Cost-to-income ratio improved to 55.50% from 60.72% YoY.

• Return on Assets (annualized) at 0.79%; Return on Equity at 14.23%.

• Fee-based income increased from ₹861 crore to ₹1,186 crore YoY.

Outlook and guidance

• All FY25 guidance parameters achieved or exceeded in Q3: deposit growth 9.36% (guidance 8-10%), credit growth 16.44% (guidance 12-14%), CASA 37.97% (guidance 37-38%), NIM global 3.17% (guidance 3-3.10%), GNPA 2.90% (guidance <3%).

• Credit cost at 0.49% vs. guidance of <1%.

• Management expects to surpass credit growth guidance, with strong momentum in Q4.

• Focus remains on maintaining/improving NIM, ROE, and asset quality.

• Deferred tax asset of ₹6,336.68 crore recognized on carry forward losses and timing differences.