Union Bank of India (UNIONBANK) Q1 24/25 earnings summary

Executive summary

• Net profit for Q1 FY25 rose to INR 3,679 crore (₹36,788.5 lakh), up 13.7% year-over-year and 11.1% sequentially; consolidated net profit reached ₹36,417.8 lakh, a 12.1% increase year-over-year.

• Operating profit stood at INR 7,785 crore (₹7,78,531 lakh), growing 8.5% year-over-year and 19.1% sequentially.

• Achieved 8.5% year-over-year deposit growth and 11.5% growth in advances, in line with guidance for FY25.

• Asset quality improved significantly, with GNPA at 4.54% and NNPA at 0.90%, both showing notable YoY reductions.

• Maintained a strong capital position with CRAR at 17.02% and CET-1 at 13.81%.

Financial highlights

• Net Interest Margin (NIM) at 3.05%, above guidance of 2.8%-3%.

• Net Interest Income (NII) grew 6.47% YoY to ₹9,412 crore; non-interest income increased 15.53% YoY.

• CASA and retail term deposits form 72% of total deposits; CASA ratio declined by 120 bps YoY to 33.4%.

• Cost-to-income ratio stood at 44% for Q1FY25, expected to remain within 42%-45.5%.

• ROA improved to 1.06%, ROE to 15.7%.

Outlook and guidance

• Guidance maintained for deposit growth (9%-11%) and advances growth (11%-13%) for FY25; Q1 actuals at 8.52% and 11.46% respectively.

• NIM expected to remain above 3% for the year.

• Cost-to-income ratio expected in the 42%-45.5% range.

• ROA guidance above 1%.

• Credit cost guidance remains below 1%.