Union Bank of India (UNIONBANK) Q3 24/25 earnings summary

Executive summary

• Net profit for Q3FY25 was ₹4,704 crore, up 28.2% YoY; nine-month net profit at ₹13,002 crore, up 25.8% YoY.

• Global business mix reached ₹21.66 trillion, with advances at ₹9.49 trillion and deposits at ₹12.17 trillion as of Dec 2024.

• Return on Assets improved to 1.3% and Return on Equity to 17.75% for Q3FY25.

• Maintains a strong presence with 8,574 branches and 9,087 ATMs, ranking as the 5th largest PSB by business mix.

• Focused on sustainable growth, prioritizing profitability and operational efficiency amid challenging macroeconomic conditions.

Financial highlights

• Net Interest Income for Q3FY25 was ₹9,240 crore, a 0.79% YoY increase; NIM for Q3FY25 stood at 2.91%.

• Operating profit for Q3FY25 was ₹7,492 crore; cost-to-income ratio at 43.56%.

• Gross NPA reduced to 3.85% YoY; Net NPA improved to 0.82%; provision coverage ratio at 93.42%.

• Capital adequacy ratio (Basel III) at 16.72% (standalone), CET1 at 13.59% as of Dec 2024.

• Credit cost for 9MFY25 was 0.81%; slippage ratio improved to 89 bps.

Outlook and guidance

• Growth expected at lower end of guidance for deposits and advances; actual YoY growth: deposits 3.76%, advances 5.94%.

• NIM for nine months at 2.94%, within guidance; QOQ NIM improved by 1 bp.

• GNPA already below FY target of 4%.

• Recovery pipeline strong, with annual recovery target of ₹16,000 crore on track.

• Anticipates improved liquidity and economic stimulus to support future growth.