Ujjivan Small Finance Bank (UJJIVANSFB) Q4 18/19 earnings summary

Executive summary

• FY19 consolidated Ind AS total income rose 30.3% to ₹2,013.6 Cr; PAT was ₹150.44 Cr vs ₹25.95 Cr. Consolidated IGAAP PAT was ₹198.37 Cr vs ₹6.86 Cr.

• Loan book expanded 46% to ₹11,049 Cr; deposits nearly doubled to ₹7,379 Cr, with retail deposits at 37.1% and CASA at 10.6%.

• Asset quality recovered sharply: GNPA 0.9% vs 3.7% and NNPA 0.3% vs 0.7%; credit cost fell to ₹40.6 Cr from ₹310.8 Cr on an Ind AS basis.

Financial highlights

• Consolidated Ind AS NII rose 32.4% to ₹1,189.8 Cr; NIM was 11.1% vs 10.6%. Total assets grew 47.3% to ₹14,025.9 Cr.

• Bank IGAAP income was ₹2,038 Cr, up 29%; PAT reached ₹199 Cr vs ₹7 Cr, as credit cost dropped 87% to ₹41 Cr.

• Operating expenses rose 54% to ₹1,003 Cr amid branch, technology and staffing expansion; cost-to-income increased to 76.5% from 67.1%.

• Disbursements grew 38% to ₹11,089 Cr; total deposits increased 96% to ₹7,379 Cr, while funding cost declined to 8.5% from 9.0%.

Outlook and guidance

• FY20 priorities include scaling secured MSE and housing, expanding rural/agri offerings, growing CASA and retail deposits, and using digital channels to improve efficiency.

• Long-term ambition: 10x customer-base growth over seven years, supported by family banking, broader products, digital technology, data analytics and FinTech partnerships.

• Equity listing was targeted by January 31, 2020; a reverse merger could be considered closer to the fifth anniversary.

• A ₹350 Cr IFC Tier II capital raise was under discussion, with completion expected in Q1 FY20; legacy borrowings were intended to be fully repaid in FY20.