Ujjivan Small Finance Bank (UJJIVANSFB) Q4 17/18 earnings summary

Executive summary

• FY18 marked the first full year of banking operations, combining conversion of 187 outlets with recovery from demonetization; the year closed profitable despite high credit costs and transition spending.

• Consolidated PAT was ₹7.3 crore versus ₹207.7 crore in FY17; the bank reported PAT of ₹6.87 crore.

Financial highlights

• Consolidated total income rose 13.2% YoY to ₹1,581.7 crore; NII increased 3.2% to ₹709.5 crore.

• Credit cost increased to ₹310.8 crore from ₹75.1 crore; operating expense rose 39.3% to ₹656.8 crore, reflecting provisions and banking-transition costs.

• Gross loan book reached ₹7,560 crore, up 18.5% YoY; FY18 disbursement was ₹8,052 crore, up 12.9%.

• Deposits reached ₹3,772 crore, including ₹427 crore retail deposits; CASA was ₹138.6 crore, or 3.7% of deposits.

Outlook and guidance

• Targeting 475 banking outlets by March 2019; outlet expansion and investment in staff and infrastructure are expected to raise costs before scale benefits emerge.

• FY19 priorities include scaling retail deposits and CASA, expanding MSE and housing, selective microfinance growth, rural banking, and new personal and two-wheeler lending.

• Microfinance asset-book growth target is 20–25% for FY19; affordable housing customer base target is 12,000 by year-end.

• Technology investment of ₹400–500 crore was planned over five years; operating expense ratio was expected to worsen initially, then improve as businesses scale.