Union Bank of India (UNIONBANK) Q4 21/22 earnings summary

Executive summary

• FY22 net profit rose 80.05% YoY to ₹5,232 crore; net interest income grew 12.55% to ₹27,786 crore, with Q4 NII up 25.29% YoY.

• Business reached ₹17,48,800 crore at March 31, 2022; advances grew 9.60% and deposits 11.75% YoY.

• Asset quality and capital strengthened: GNPA 11.11%, NNPA 3.68%, CRAR 14.52%; FY23 targets include ~10% deposit growth and credit cost below 1.5%.

Financial highlights

• Standalone net profit was ₹5,232 crore vs ₹2,906 crore in FY21; EPS was ₹7.73 vs ₹4.54.

• Operating profit reached ₹21,873 crore, up 11.22% YoY; total income was ₹80,469 crore and operating expenses ₹18,438 crore.

• NII was ₹27,786 crore for FY22; Q4 NII grew 25.29% YoY. Other income totaled ₹12,525 crore.

• Advances were ₹7,16,408 crore and deposits ₹10,32,392 crore; CASA deposits rose 12.40% YoY to ₹3,77,193 crore.

• Consolidated net profit was ₹5,265 crore vs ₹2,863 crore; consolidated EPS was ₹7.77 vs ₹4.47.

Outlook and guidance

• FY23 deposit growth target is ~10%; credit cost is targeted below 1.5%.

• Retail portfolio growth of 17% to ₹1,59,000 crore was projected for March 2023.

• Management cited improving credit demand and expected corporate capex as sector tailwinds, while identifying inflation, higher oil prices and rupee weakness as risks to the outlook.