CITY UNION BANK 2024-25 Annual Report Analysis

Thu, 24 Jul

CITY UNION BANK has announced its results for the year ended March 2025. Let us have a look at the detailed performance review of the bank during the year 2024-25.

CITY UNION BANK Income Statement Analysis

• Interest income during the year rose 10.7% on a year-on-year (YoY) basis.
• Interest expenses were up by 11.8% YoY during the same period.
• Operating expenses increased by 13.9% YoY during the year.
• The bank's net interest income (NII) increased by 9.1% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a decline and stood at 3.3% in FY25 as against 3.5% in FY24.
• Other income increased by 21.1% YoY during the year.
• Net profit for the year increased by 10.6% YoY.
• Net profit margins during the year declined to 19.3% in FY25 from 19.3% in FY24.

CITY UNION BANK Income Statement – 2024-25

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Interest Income	Rs m	52,706	58,340	10.7%
Other Income	Rs m	7,417	8,981	21.1%
Interest Expense	Rs m	31,471	35,183	11.8%
Net Interest Income	Rs m	21,235	23,157	9.1%
Operating Expense	Rs m	13,484	15,352	13.9%
Pre-provision Operating Profit	Rs m	15,167	16,786	10.7%
Provisions & Contingencies	Rs m	5,010	5,550	10.8%
Profit before tax	Rs m	12,307	14,166	15.1%
Tax	Rs m	2,150	2,930	36.3%
Profit after tax	Rs m	10,157	11,236	10.6%
Minority Interest	Rs m	0	0	0.0%
Net Interest Margin	%	3.5	3.3
Net profit margin	%	19.3	19.3

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CITY UNION BANK Balance Sheet Analysis

• The bank's deposits during FY25 stood at Rs 635.3 bn as compared to Rs 556.6 bn in FY24, thereby witnessing an increase of 14.1%.
• Advances for the year stood at Rs 520.8 bn as compared to Rs 455.3 bn during FY24, a rise of 14.4%.
• Cost of deposits for CITY UNION BANK fell 1.0% and stood at 5.2%, while yield on advances fell to 9.0%.
• The lender's investments rose to Rs 173.4 bn during the year from Rs 156.6 bn in FY24.
• Borrowing stood at Rs 21.7 bn, a fall of 54.1% as compared to previous year.
• Overall, the total assets and liabilities for FY25 stood at Rs 776.2 bn as against Rs 708.3 bn during FY24, thereby witnessing a rise of 9.6%.

CITY UNION BANK Balance Sheet – as on March 2025

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Networth	Rs m	84,014	94,666	12.7%
Advances	Rs m	455,257	520,813	14.4%
Deposits	Rs m	556,566	635,260	14.1%
Yield on advances	%	9.1	9.0
Cost of Deposits	%	5.2	5.2
Investments	Rs m	156,641	173,361	10.7%
Borrowings	Rs m	47,242	21,694	-54.1%
Total Assets	Rs m	708,259	776,232	9.6%

Current Valuations for CITY UNION BANK

• The trailing twelve-month earnings per share (EPS) of the bank stands at Rs 15.2, an improvement from the EPS of Rs 13.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 210.1, stands at 10.5 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 1.6 times, while the price to income ratio stands at 2.0 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Income per share (Unadj.)	Rs	71.2	78.7
Earnings per share (Unadj.)	Rs	13.7	15.2
Diluted earnings per share	Rs	13.7	15.2
Avg P/E ratio	Rs	10.5	10.5
Avg P/ABV ratio	Rs	1.4	1.6
Avg Market Cap	Rs	106,342	118,002
Dividends per share (Unadj.)	Rs	1.50	2.00

Ratio Analysis for CITY UNION BANK

• Efficiency Ratios

  Credit/Deposit Ratio: The bank's credit/deposit ratio improved and stood at 82.0x during FY25, from 81.8x during FY24. The credit/deposit ratio tells us how much money a bank has raised in the form of deposits and has deployed as loans.

  Debt to Equity Ratio: The bank's debt to equity ratio decreased and stood at 6.94x during FY25, from 7.19x during FY24. The debt to equity ratio of a bank tells us how much debt a bank uses relative to its equity.

• Liquidity Ratios

  Capital Adequacy Ratio (CAR): CITY UNION BANK's capital adequacy ratio (CAR) was at 23.8% as on 31 March 2025 as compared to 23.7% a year ago. This ratio helps measure the financial strength of the bank or any finance company to meet their obligations using their assets and capital.

  A bank that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor's money.

  Provision Coverage Ratio (PCR): Apart from CAR, you also need to take a look at the bank's PCR and LCR ratios. Provisioning coverage ratio (PCR) is the percentage of funds that a bank sets aside for covering losses due to bad debts.

  So a high PCR ratio means asset quality issues are under control and the bank is not vulnerable.

  Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that banks hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.

• Profitability Ratios

  Return on Equity (ROE): The return on equity (ROE) ratio for the bank deteriorated and stood at 11.9% during FY25, from 12.1% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

  Return on Assets (ROA): The return on asset (ROA) ratio of the bank improved and stood at 1.45% during FY25, from 1.43% during FY24. The ROA measures how efficiently the company uses its assets to generate earnings.

  Return on Capital Employed (ROCE): The ROCE for the bank improved and stood at 13.39% during FY25, from 11.70% during FY24. The ROCE measures the ability of a bank to generate profits from its total capital (shareholder capital plus debt capital) employed in the bank.

• NPA Ratios

  Gross NPA Ratio: The gross NPA ratio is the ratio of a bank's gross NPAs to gross advances. CITY UNION BANK's gross NPA ratio stood at 3.1% as of 31 March 2025 compared to 4.0% in the same period a year ago.

  A high gross NPA ratio is a bad thing as it indicates how much of a bank's loans are in danger of not being repaid.

  Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the bank has made provisions.

  The net NPA ratio of CITY UNION BANK was 1.3% in financial year 2025. This compared with 2.0% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Credit/Deposit Ratio	x	81.8	82.0
Debt to Equity Ratio	x	7.2	6.9
Loans / Deposits	x	0.1	0.0
Capital Adequacy Ratio	%	23.7	23.8
Return on Equity	%	12.1	11.9
Return on Assets	%	1.4	1.4
Return on Capital Employed	%	11.7	13.4
% of Gross NPAs	%	4.0	3.1
% of Net NPAs	%	2.0	1.3
Yield on Advances	x	9.1	9.0
Yield on Investments	x	6.3	6.5

To see how CITY UNION BANK has performed over the last 5 years, please visit here.

CITY UNION BANK Share Price Performance

Over the last one year, CITY UNION BANK share price has moved up from Rs 160.7 to Rs 210.1, registering a gain of Rs 49.4 or around 30.7%.

Meanwhile, the S&P BSE BANKEX is trading at 63,551.9 (down 0.6%). Over the last one year it has moved up from 58,784.0 to 63,551.9, registering a gain of 4,768.0 points (up 8.1%).

Overall, the S&P BSE SENSEX is up 2.1% over the year.

(To know more, you can check out historical annual results for CITY UNION BANK here and quarterly results for CITY UNION BANK here)