Union Bank of India (UNIONBANK) Q2 24/25 earnings summary

Executive summary

• Achieved highest ever quarterly operating profit of ₹8,113 crore, up 12.4% YoY, and net profit of ₹4,720 crore, up 34.43% YoY for Q2 FY25.

• Global business mix reached ₹21.71 trillion, with advances at ₹9.29 trillion and deposits at ₹12.42 trillion as of September 2024.

• ROA improved to 1.35% and ROE to 19.10% for Q2 FY25.

• Financial statements prepared per Indian GAAP and RBI guidelines, reviewed and approved by the Board on October 21, 2024.

• Performance aligns with FY25 guidance, focusing on profitability and efficiency.

Financial highlights

• Net Interest Income for Q2 FY25 was ₹9,047 crore; NIM at 2.97% for H1 FY25, within guidance of 2.8%-3%.

• Deposits grew 9.2% YoY; advances grew 9.6%, with RAM lending up 12.3% and corporate lending up 6.3%.

• Cost-to-income ratio improved to 43.56% from 44.08% sequentially; remained stable at 43.82% for H1 FY25.

• Gross NPA reduced by 202 bps to 4.36%; net NPA at 0.98%; PCR improved to 92.79%.

• Operating income for Q2 FY25 was ₹14,375 crore, up 12.12% YoY.

Outlook and guidance

• Deposit growth target maintained at 9%-11%; advances growth slightly below target but expected to improve.

• NIM expected to remain in the 2.8%-3% range for the next quarters.

• Credit cost guidance at or below 1% for FY25, barring exceptional slippages.

• Recovery guidance of ₹16,000 crore for FY25, with ₹7,300 crore achieved in H1.

• GNPA expected to remain below 4.00%; actual was 4.36% as of September 2024.