United Bank Of India revenue growth decelerated to 1.6% in FY2015 vs. 14.4% a year earliner

07-05-2015 • About United Bank Of India ($UNITEDBNK) • By InTwits

United Bank Of India reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:

United Bank Of India has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
The company has potentially unprofitable business model: ROIC is at 4.2%
It operates with high leverage: Net Debt/EBITDA is 10.9x while industry average is

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

United Bank Of India ($UNITEDBNK) key annual financial indicators

mln. INR	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	69,780	86,939	103,171	118,061	119,972	1.6%
Net Income	5,240	6,325	3,919	-12,134	2,560
Balance Sheet
Cash	59,432	50,918	38,466	62,698	58,156	-7.2%
Short Term Debt	9,422	11,956	15,980	13,604	46,712	243.4%
Long Term Debt	45,310	65,851	63,930	34,728	27,616	-20.5%
Cash flow
Capex	609	558	1,119	1,508	450	-70.2%
Ratios
Revenue growth	-59.5%	24.6%	18.7%	14.4%	1.6%
Net Income Margin	7.5%	7.3%	3.8%	-10.3%	2.1%	12.4%
CAPEX, % of revenue	0.9%	0.6%	1.1%	1.3%	0.4%	-0.9%
ROIC	7.1%	6.7%	3.4%	-11.4%	4.2%	15.7%
ROE	12.3%	12.4%	6.6%	-25.4%	5.0%	30.3%

Revenue and profitability

United Bank Of India's Revenue increased slightly on 1.6% in FY2015.

Net Income marign surged on 12.4 pp from -10.3% to 2.1% in FY2015.

Capital expenditures (CAPEX) and working capital investments

In FY2015 the company had CAPEX/Revenue of 0.37%. CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 0.91%.

Return on investment

The company operates at low ROIC (4.25%) and ROE (4.97%). ROIC surged on 15.7 pp from -11.4% to 4.2% in FY2015. ROE jumped on 30.3 pp from -25.4% to 5.0% in FY2015.

Leverage (Debt)

Debt surged on 53.8% in FY2015 while cash decreased on 7.2% in FY2015.

Appendix 1: Peers in Banks

Below you can find United Bank Of India benchmarking vs. other companies in Banks industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.

Top companies by Revenue growth, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Dcb Bank ($DCBBANK)		26.7%	26.2%	22.5%	25.3%
Yes Bank ($YESBANK)		53.0%	33.7%	21.6%	17.7%
Bank Of India ($BANKINDIA)	-66.6%	30.3%	12.4%	18.1%
Karur Vysya Bank ($KARURVYSYA)		45.9%	29.7%	16.5%	11.0%
Union Bank Of India ($UNIONBANK)	-70.8%	26.9%	19.5%	15.7%
Median (28 companies)	-60.7%	29.5%	15.6%	10.3%	11.8%
United Bank Of India ($UNITEDBNK)		24.6%	18.7%	14.4%	1.6%

Top companies by CAPEX/Revenue, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Kotak Mahindra Bank ($KOTAKBANK)	1.3%	1.4%	1.4%	2.6%	1.4%
Karur Vysya Bank ($KARURVYSYA)	4.2%	2.0%	2.9%	2.5%	1.7%
Dhanlaxmi Bank ($DHANBANK)	6.8%	3.0%	1.7%	2.2%
Jammu & Kashmir Bank ($J&KBANK)	5.6%	1.4%	1.3%	2.2%
Lakshmi Vilas Bank ($LAKSHVILAS)	4.4%	2.1%	1.4%	1.6%	2.4%
Median (27 companies)	1.3%	1.2%	1.2%	1.2%	1.7%
United Bank Of India ($UNITEDBNK)	0.9%	0.6%	1.1%	1.3%	0.4%

Top companies by ROIC, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Axis Bank ($AXISBANK)	10.2%	9.6%	8.9%	9.1%	8.8%
Yes Bank ($YESBANK)	11.8%	9.8%	8.4%	8.4%	8.7%
Karnataka Bank ($KTKBANK)	5.5%	6.8%	10.2%	7.7%
Kotak Mahindra Bank ($KOTAKBANK)	7.8%	6.8%	6.5%	7.1%	8.5%
Oriental Bank Of Commerce ($ORIENTBANK)	12.4%	7.6%	7.4%	6.7%
Median (28 companies)	7.4%	7.6%	6.3%	3.4%	6.0%
United Bank Of India ($UNITEDBNK)	7.1%	6.7%	3.4%	-11.4%	4.2%

United Bank Of India stock price chart

United Bank Of India financials

mln.	FY2010	FY2011	FY2012

Revenue	172,271	69,780	86,939
EBITDA	0.000	0.000	0.000
Net income	3,224	5,240	6,325
CAPEX	1,424	609.4	557.7
Debt	31,322	54,732	77,807
Cash	47,070	59,432	50,918

About United Bank Of India

United Bank of India provides various banking products and services in India. The company operates in two segments, Treasury Operations and Banking Operations. Its deposit products include savings growth and income plans, savings schemes, fixed deposits, re-investment plans, current and flexi deposit schemes, recurring deposits, SB accounts, capital gain accounts schemes, savings bank accounts, children savings accounts, current deposit accounts, and gold and platinum current deposit schemes. The company also provides loan products comprising housing loans, smart loans, personal loans, demand loans, car loans, consumer loans, education loans, trade credit products, mortgage loans, cash rentals, reverse mortgage loans, salary payments overdrafts, and gold loans, as well as offers ATM-finance and safe deposit lockers. In addition, it provides corporate banking products and services, such as term loans, working capital finance products, corporate loans, and export credit products; and cash management and remittances services. Further, the company offers various products and services for non-resident Indians; foreign exchange operations services; and telephone and Internet banking services. Additionally, it collects direct taxes, including corporation tax, income tax, wealth tax, gift tax, fringe benefit tax, etc.; and indirect taxes comprising central excise duty, and customs and service tax, as well as pays pension payments and offers public provident fund schemes. The company also provides mutual funds, and life and non-life insurance products, as well as offers financial advisory services. As of March 31, 2014, it operated 2001 branches. United Bank of India was founded in 1918 and is headquartered in Kolkata, India.