United Bank Of India reports 4.9% revenue decline in FY2016

17-05-2016 • About United Bank Of India ($UNITEDBNK) • By InTwits

United Bank Of India reported FY2016 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 0.8%.
The company has unprofitable business model: ROIC is -2.0%
It operates with medium-size leverage: Net Debt/EBITDA is 0.4x while industry average is

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

Revenue and profitability

United Bank Of India's Revenue decreased on 4.9%. Revenue decline was accelerating on average at -7.6 pp per annum in FY2012-FY2016.

Net Income margin decreased on 4.6 pp from 2.1% to -2.5% in FY2016.

Investments (CAPEX, working capital and M&A)

In FY2016 the company had CAPEX/Revenue of 0.79%. CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 0.81%.

Return on investment

The company operates at negative ROIC (-2.0%) and ROE (-4.6%). ROIC decreased on 6.3 pp from 4.2% to -2.0% in FY2016. ROE decreased on 9.6 pp from 5.0% to -4.6% in FY2016.

Leverage (Debt)

Debt dropped on 55.8% while cash increased on 4.4%.

United Bank Of India has no short term refinancing risk: cash is higher than short term debt (1,616.9%).

Financial and operational results

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

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	86,939	103,171	118,061	119,972	114,042	-4.9%
Net Income	6,325	3,919	-12,134	2,560	-2,820	-210.1%
Balance Sheet
Cash	50,918	38,466	62,698	58,156	60,704	4.4%
Short Term Debt	11,956	15,980	13,604	46,712	3,754	-92.0%
Long Term Debt	65,851	63,930	34,728	27,616	29,117	5.4%
Cash flow
Capex	558	1,119	1,508	450	896	99.3%
Ratios
Revenue growth	24.6%	18.7%	14.4%	1.6%	-4.9%

Net Income Margin	7.3%	3.8%	-10.3%	2.1%	-2.5%	-4.6%
CAPEX, % of revenue	0.6%	1.1%	1.3%	0.4%	0.8%	0.4%

ROIC	6.7%	3.4%	-11.4%	4.2%	-2.0%	-6.3%
ROE	12.4%	6.6%	-25.4%	5.0%	-4.6%	-9.6%

Peers in Banks

Below we provide United Bank Of India benchmarking against other companies in Banks industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.

Top companies by Revenue growth, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Kotak Mahindra Bank ($KOTAKBANK)	-	22.9%	7.1%	26.1%	29.2%
Dcb Bank ($DCBBANK)	-	26.2%	22.5%	25.3%	20.8%
Syndicate Bank ($SYNDIBANK)	-	11.9%	7.9%	20.2%	8.4%
Yes Bank ($YESBANK)	-	33.7%	21.6%	17.7%	18.9%
Axis Bank ($AXISBANK)	-	24.5%	13.1%	15.6%	14.9%
Median (28 companies)	32.0%	15.7%	10.6%	10.8%	4.7%
United Bank Of India ($UNITEDBNK)	-	18.7%	14.4%	1.6%	-4.9%

Top companies by CAPEX/Revenue, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Bank Of India ($BANKINDIA)	2.0%	1.1%	1.5%	3.6%	-
State Bank Of Mysore ($MYSOREBANK)	1.6%	1.3%	-	3.5%	1.4%
Jammu & Kashmir Bank ($J&KBANK)	1.4%	1.3%	2.2%	3.3%	-
Lakshmi Vilas Bank ($LAKSHVILAS)	2.1%	1.4%	1.6%	2.4%	2.4%
Dcb Bank ($DCBBANK)	9.0%	7.0%	1.6%	1.9%	2.2%
Median (28 companies)	1.3%	1.2%	1.2%	1.3%	1.3%
United Bank Of India ($UNITEDBNK)	0.6%	1.1%	1.3%	0.4%	0.8%

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Karnataka Bank ($KTKBANK)	6.8%	10.2%	7.7%	10.4%	-
Axis Bank ($AXISBANK)	9.6%	8.9%	9.1%	8.8%	7.6%
Yes Bank ($YESBANK)	9.8%	8.4%	8.4%	8.7%	9.0%
Kotak Mahindra Bank ($KOTAKBANK)	6.8%	6.5%	7.1%	8.5%	7.3%
Lakshmi Vilas Bank ($LAKSHVILAS)	6.5%	7.5%	0.7%	6.1%	5.8%
Median (28 companies)	7.6%	6.5%	3.4%	4.5%	4.0%
United Bank Of India ($UNITEDBNK)	6.7%	3.4%	-11.4%	4.2%	-2.0%

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.