UCO Bank (UCOBANK) Q3 24/25 earnings summary

Executive summary

• Business grew 12.28% year-over-year in Q3 FY25, with total business reaching ₹4,88,911 crore, deposits up 9.36%, and advances up 16.44%.

• Net profit for Q3 FY25 rose 27.04% year-over-year to ₹639 crore, with operating profit up 41.73% to ₹1,586 crore.

• Retail advances grew 31%, home loans 19.36%, vehicle loans 51.93%, and agriculture 20.04%.

• Digital initiatives, new product launches, and Project Parivartan have driven operational efficiency and customer engagement.

• ESG and women-centric products, branch expansion, and board approval of unaudited results are key focus areas.

Financial highlights

• Net interest income rose 19.62% year-over-year to ₹2,378 crore; non-interest income up 37.75% to ₹1,186 crore.

• Operating profit increased 41.73% year-over-year to ₹1,586 crore; net profit up 27% to ₹639 crore.

• Domestic NIM improved by 36 bps to 3.38%; global NIM up 33 bps to 3.17%.

• Cost-to-income ratio improved to 55.50% from 60.72% a year ago.

• Return on Assets (annualized) at 0.79%; Return on Equity at 14.23%; EPS at ₹0.53 for the quarter.

Outlook and guidance

• All FY25 guidance parameters, including deposit, CASA, credit growth, and asset quality, have been achieved or exceeded.

• Credit growth guidance of 12%-14% likely to be surpassed; NIM guidance of 3%-3.10% maintained.

• GNPA expected to further reduce from 2.90% by year-end if trends continue.

• Credit cost at 0.49% vs. guidance of <1%.

• Focus remains on digital expansion, customer acquisition, and maintaining a healthy RAM/corporate mix.