Union Bank of India (UNIONBANK) Q3 24/25 earnings summary

Executive summary

• Net profit for Q3FY25 reached ₹4,704 crore, up 28.2% YoY; nine-month net profit at ₹13,002 crore, up 25.8% YoY.

• Global business mix reached ₹21.66 trillion, with advances at ₹9.49 trillion and deposits at ₹12.17 trillion as of Dec 2024.

• Return on assets improved to 1.3% and ROE to 17.75% for Q3FY25.

• The bank maintains a strong presence with 8,574 branches and 9,087 ATMs, ranking as the 5th largest PSB by business mix.

• Financial statements prepared per Indian GAAP and RBI guidelines, with limited review by statutory auditors and unmodified audit opinions.

Financial highlights

• Net profit for Q3FY25: ₹4,704 crore (+28.2% YoY); nine months: ₹13,002 crore (+25.8% YoY).

• NIM for Q3FY25 stood at 2.91%, impacted by RBI's penal interest reclassification; NIM for nine months at 2.94%.

• Gross NPA at 3.85% (down 98 bps YoY), net NPA at 0.82% (down 26 bps YoY); provision coverage ratio at 93.42%.

• Operating profit for Q3FY25 was ₹7,492 crore; cost-to-income ratio for Q3FY25 was 43.56%.

• EPS for Q3FY25 was ₹1.06, and book value per share reached ₹135.90.

Outlook and guidance

• Growth for deposits and advances expected at lower end of guidance; advances growth guidance for FY25 is 11-13%, with actual YoY growth at 5.94% as of Dec 2024.

• NIM guidance for FY25 at 2.823%; current NIM above guidance, with expectation to maintain or improve.

• Recovery target for FY25 set at ₹16,000 crore, with ₹10,800 crore already achieved; balance expected in Q4.

• GNPA expected to remain below 4.00%; actual GNPA at 3.85% as of Dec 2024.