City Union Bank Ltd Q4 2025 Earnings Call Highlights: Advances Growth and Digital Initiatives Drive Performance

City Union Bank Ltd reported a 14% growth in gross advances for FY25, a 90 basis points reduction in gross NPA, and a 12% increase in interest income. The bank also launched digital initiatives and achieved a cost-to-income ratio of 47.77%. However, the cost of deposits increased to 6.02%, and net NPA remained at 1.25%. The bank expects 2% to 3% growth for FY26, with margins around 3.5% to 3.7%.

Title: City Union Bank Ltd Reports Strong FY25 Performance, Outlines FY26 Growth Expectations

City Union Bank Ltd (CUBL) has reported robust financial results for the fiscal year 2025 (FY25), demonstrating significant growth and strategic initiatives. The bank reported a 14% increase in gross advances, a 90 basis points reduction in gross non-performing assets (NPA), and a 12% surge in interest income. These improvements highlight the bank's strong operational performance and strategic focus on growth and efficiency.

Notably, CUBL achieved a cost-to-income ratio of 47.77%, indicating a disciplined approach to cost management. However, the cost of deposits increased to 6.02%, which may impact profitability in the short term. Despite this, the bank's net NPA remained stable at 1.25%, reflecting its effective risk management practices.

CUBL has also been proactive in launching digital initiatives, aiming to enhance customer experience and operational efficiency. The bank expects to achieve a 2% to 3% growth in gross advances for FY26, with margins projected to be around 3.5% to 3.7%. This outlook underscores CUBL's commitment to sustainable growth and profitability.

Overall, City Union Bank Ltd's FY25 results reflect a strong financial performance, driven by strategic initiatives and effective risk management. The bank's outlook for FY26 indicates a continued focus on growth and efficiency, positioning it well for future opportunities.

References:
[1] https://upstox.com/news/market-news/earnings/q4-results-live-updates-marico-latent-view-analytics-godrej-properties-city-union-bank-others-to-announce-earnings-dividend-share-price-on-may-2/liveblog-164655/
[2] https://www.globenewswire.com/news-release/2025/04/30/3070961/0/en/Strong-Q1-2025-financial-results-and-integration-gaining-momentum.html