UCO Bank (UCOBANK) Q4 14/15 earnings summary

Executive summary

• FY15 global business rose 3.81% to ₹366,149 crore, while net profit fell to ₹1,138 crore from ₹1,511 crore as NII declined and NPA provisions increased.

• Deposits grew 7.42% to ₹214,337 crore; advances eased to ₹151,812 crore and the credit-deposit ratio fell to 70.83% from 76.76%.

Financial highlights

• Total income increased 9.27% to ₹21,363 crore; interest income rose 6.19% to ₹19,359 crore and non-interest income rose to ₹2,004 crore from ₹1,321 crore.

• Interest expense rose 13.36% to ₹13,797 crore; NII declined 8.20% to ₹5,562 crore from ₹6,059 crore.

• Operating profit was ₹4,910 crore versus ₹4,940 crore; net profit was ₹1,138 crore versus ₹1,511 crore.

• Reported income statement: provisions and contingencies ₹3,772 crore versus ₹3,430 crore; proposed dividend ₹2 per ₹10 equity share for FY15.

Outlook and guidance

• FY16 priorities include retail growth, product and service innovation, improving CASA through customer service and financial inclusion, and wider adoption of alternative delivery channels.

• Plans include new service outlets and products for younger customers, with priority-sector growth targeted alongside profitable performance.