Union Bank of India (UNIONBANK) Q4 03/04 earnings summary

Executive summary

• FY2003-04 operating profit rose 13.73% to ₹1,483 crore and net profit rose 28.75% to ₹712 crore.

• Total business grew 14.13% to ₹81,487 crore; deposits reached ₹50,559 crore and advances ₹30,928 crore.

• Net NPA ratio improved to 2.87% from 4.91%; capital adequacy was 12.32%, above the 9% benchmark.

Financial highlights

• Interest earned was ₹4,516.31 crore and other income ₹831.46 crore; total income reached ₹5,347.77 crore versus ₹5,130.74 crore.

• Interest expense declined to ₹2,780.07 crore from ₹2,808.50 crore; operating expenses rose to ₹1,084.62 crore from ₹1,018.32 crore.

• Provisions and contingencies were ₹771.02 crore; net profit was ₹712.05 crore versus ₹552.69 crore.

• Deposits increased 12.98% and advances 16.05%; low-cost deposits represented 40% of deposits, while retail advances reached ₹6,244 crore.

Outlook and guidance

• FY2004-05 outlook anticipated better performance, supported by a near-normal monsoon, stronger credit in infrastructure, retail, agriculture and SME sectors, and improved NPA recovery conditions.

• Ambitious business targets were set for the current year; no quantified earnings or balance-sheet guidance was stated.