CMP 102.30 Target Price 120.00 ISIN: INE491A01021 JULY 4 th , 2015 CITY UNION BANK LTD. Result Update (PARENT BASIS): Q4 FY15 BUY BUY BUY BUY Stock Data Sector Banking BSE Code 532210 Face Value 1.00 52wk. High / Low (Rs.) 105.95/70.75 Volume (2wk. Avg ) 111000 Market Cap ( Rs in mn ) 61029.11 Annual Estimated Results (A*: Actual / E*: Estimated) Years FY14A FY15E FY16E T. Interest Earned 26988.56 28769.80 30323.37 GII 12114.72 13145.27 14135.55 Net Profit 3950.20 4338.22 4729.15 EPS 6.62 7.27 7.93 P/E 15.45 14.07 12.90 Shareholding Pattern (%) 1 Year Comparative Graph CITY UNION BANK LTD. S&P BSE SENSEX Highlights City Union Bank was incorporated on 31 st October, 1904 as ‘The Kumbakonam Bank’, headquartered in Chennai. Profit after Tax was Rs. 990.76 mn as against Rs. 833.47 mn in the corresponding quarter of the previous year, rose by 18.87% y-o-y. Total Interest Earned of the Bank rose by 8.30% y-o-y of Rs. 6881.77 million against Rs. 833.47 million in the corresponding quarter of the previous year. Net Interest Margin and Return on Asset for the 4 th quarter of FY15 stood at 3.40% & 1.45% respectively. Gross & Net NPA level stood at 1.86% & 1.30% respectively and Provision Coverage Ratio as at March 31, 2015 stood at 58%. The total Deposits as on 31 st Mar 2015, increased from Rs. 220168.92 mn to Rs. 240749.56 mn thereby registering a growth of 9 % y-o-y basis. The bank has recommended a dividend @ 110% i.e., Rs. 1.10/- per share on the face value of Rs. 1.00/- each for the Financial Year 2014-15. As on Mar 31, 2015 Advances portfolio registered a growth of 12% y-o-y basis to Rs. 179655.00 mn, from Rs. 160968.37 mn as on Mar 31, 2014. Total branches & ATM of Bank as on March, 2015 were 475 & 1086 respectively. Total Interest Earned and PAT of the company are expected to grow at a CAGR of 6% and 11% over 2014 to 2017E respectively. PEER GROUPS CMP MARKET CAP. EPS P/E (X) P/BV(X) DIVIDEND Company Name (Rs.) Rs. in mn. (Rs.) Ratio Ratio (%) City Union Bank Ltd. 102.30 61029.11 6.62 15.45 2.26 110.00 Punjab National Bank 142.25 263810.70 16.51 8.62 0.72 165.00 Lakshmi Vilas Bank 89.95 16125.50 7.38 12.19 1.09 20.00 Karnataka Bank 149.55 28184.70 23.95 6.24 0.83 50.00
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CMP 102.30
Target Price 120.00
ISIN: INE491A01021
JULY 4th
, 2015
CITY UNION BANK LTD.
Result Update (PARENT BASIS): Q4 FY15
BUYBUYBUYBUY
Stock Data
Sector Banking
BSE Code 532210
Face Value 1.00
52wk. High / Low (Rs.) 105.95/70.75
Volume (2wk. Avg ) 111000
Market Cap ( Rs in mn ) 61029.11
Annual Estimated Results (A*: Actual / E*: Estimated)
Years FY14A FY15E FY16E
T. Interest Earned 26988.56 28769.80 30323.37
GII 12114.72 13145.27 14135.55
Net Profit 3950.20 4338.22 4729.15
EPS 6.62 7.27 7.93
P/E 15.45 14.07 12.90
Shareholding Pattern (%)
1 Year Comparative Graph
CITY UNION BANK LTD. S&P BSE SENSEX
Highlights
City Union Bank was incorporated on 31st
October, 1904 as ‘The Kumbakonam Bank’,
headquartered in Chennai.
Profit after Tax was Rs. 990.76 mn as against Rs.
833.47 mn in the corresponding quarter of the
previous year, rose by 18.87% y-o-y.
Total Interest Earned of the Bank rose by 8.30%
y-o-y of Rs. 6881.77 million against Rs. 833.47
million in the corresponding quarter of the
previous year.
Net Interest Margin and Return on Asset for the
4th quarter of FY15 stood at 3.40% & 1.45%
respectively.
Gross & Net NPA level stood at 1.86% & 1.30%
respectively and Provision Coverage Ratio as at
March 31, 2015 stood at 58%.
The total Deposits as on 31st Mar 2015, increased
from Rs. 220168.92 mn to Rs. 240749.56 mn
thereby registering a growth of 9 % y-o-y basis.
The bank has recommended a dividend @ 110%
i.e., Rs. 1.10/- per share on the face value of Rs.
1.00/- each for the Financial Year 2014-15.
As on Mar 31, 2015 Advances portfolio registered
a growth of 12% y-o-y basis to Rs. 179655.00 mn,
from Rs. 160968.37 mn as on Mar 31, 2014.
Total branches & ATM of Bank as on March, 2015
were 475 & 1086 respectively.
Total Interest Earned and PAT of the company
are expected to grow at a CAGR of 6% and 11%
over 2014 to 2017E respectively.
PEER GROUPS CMP MARKET CAP. EPS P/E (X) P/BV(X) DIVIDEND
Company Name (Rs.) Rs. in mn. (Rs.) Ratio Ratio (%)
City Union Bank Ltd. 102.30 61029.11 6.62 15.45 2.26 110.00
Punjab National Bank 142.25 263810.70 16.51 8.62 0.72 165.00
Lakshmi Vilas Bank 89.95 16125.50 7.38 12.19 1.09 20.00
Karnataka Bank 149.55 28184.70 23.95 6.24 0.83 50.00
Quarterly Highlights (PARENT BASIS)
Results updates- Q4 FY15
City Union Bank Ltd has achieved Total Interest Earned of Rs. 6881.77 million for the 4th quarter of the financial
year 2015 as against Rs. 6354.26 million in the corresponding quarter of the previous year. The bank has
reported a net profit of Rs. 990.76 million against Rs. 833.47 million in the corresponding quarter of the previous
year. The bank has reported an EPS of Rs. 1.66 for the 4th quarter as against an EPS of Rs. 1.54 in the
corresponding quarter of the previous year.
Segment-wise Revenue
(In Rs. Millions) Q4 FY15 Q4 FY14 CHNG %
Treasury Operations 1790.50 1307.00 37
Corporate/wholesale 1875.60 1908.10 (2)
Retail banking 4245.70 3953.60 7
other banking Op. 24.60 37.80 (35)
Rs. In million Mar-15 Mar-14 % CHNG
Total Interest Earned 6881.77 6354.26 8.30
PAT 990.76 833.47 18.87
EPS 1.66 1.54 8.15
Net Interest Income 2046.62 1846.61 10.83
Asset Quality of the Bank
Asset Quality (In mn) As on 31-03-15 As on 31-03-14 CHNG %
Amount of Gross NPAs 3358.24 2930.64 15%
Amount of Net NPAs 2327.92 1972.92 18%
% of Gross NPAs 1.86 1.81 5 BP
% of Net NPAs 1.30 1.23 7 BP
Other updates:
• The Bank has inaugurated its 475th branch on 30th March, 2015 at Anna Salai located at Ponnamaravathy,
Pudukkottai – Dist, Tamil Nadu.
• The Bank’s Balance Sheet size increased by 11.52% to RS. 278710.00 mn as on March 31, 2015 from Rs.
249930.00 mn as on March 31, 2014.
• The bank’s net worth as on 31.03.2015 increased by 33% to Rs.26660.00 mn from Rs.20060.00 mn as on
31.03.2014.
• During the Financial Year -2014-15, the bank has opened 50 more branches and installed 121 ATMs. The
total branches & ATM as on date is 475 and 1086 respectively.
• Advances and Deposits
Total Advances of the bank recorded a growth of 12% and rose from Rs.160968.37 mn as on 31st March,
2014 to Rs.179655.00 mn as on 31st March, 2015. Similarly total Deposits of the Bank increased by 9% from
Rs.220168.92 mn as on 31st March, 2014 to Rs.240749.56 mn as on 31st March, 2015.
• Asset Quality.
Gross & Net NPA level stood at 1.86% & 1.30% respectively as on March 31, 2015. The Provision Coverage
Ratio as at March 31, 2015 stood at 58%.
• Capital adequacy Ratio
The bank has been maintaining Capital adequacy ratio well above the minimum levels prescribed by RBI. As
on Mar 31st 2015, the total CRAR of the bank stood at 16.52% of which Tier I CRAR was healthier at 16.03 %.
Bank Profile
City Union Bank was incorporated on 31st October, 1904 as ‘The Kumbakonam Bank’, headquartered in
Chennai. The bank in the beginning preferred the role of a regional bank and slowly but steadily built for itself a
place in the Delta District Thanjavur.
The company set up its first branch at Mannargud on 24th January 1930. After this the company started set up a
series of branches at Nagapattinam, Sannanallur, Ayyampet, Tirukattupalli, Tiruvarur, Manapparai, Mayuram and
Porayar within a period of 25 years.
In the year 1957 the bank took over assets and liabilities of the Common Wealth Bank. Due to this five Branches
of Common Wealth Bank located at Aduthurai, Kodavasal, Valangaiman, Jayankondacholopuram and Ariyalur
were transferred to City Union Bank. In April 1965 two bank namely 'The City Forward Bank’ and 'The Union
Bank’ were amalgamated and name of bank was changed to 'The Kumbakonam City Union Bank’. In November
1965 CUBL set up its first branch at Madras. Due to this six more branches added to the existing one.
City Union Bank provides three forms of banking are as follows:
� Personal Banking
� Corporate Banking
� NRI Banking
Branch Net work:
Total branches & ATM of Bank as on March, 2015 were 475 & 1086 respectively. During the current fiscal the
Bank will expand the network by opening more branches and installing more ATMS.