City Union Bank Limited Earnings Summary — Q4 FY2026
City Union Bank Celebrates 120th Anniversary with Record Net Profit and Robust Asset Growth
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 10 consecutive quarters.
- Revenue of ₹1,985 Cr is 23.6% higher year-on-year.
- Revenue has compounded at 17.8% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹383 Cr is 25.1% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 19.8% annualised across the period.
- Operating margin stands at 71.7% in Q1 FY2027.
- Operating margin expanded by 214 bps year-on-year.
- Over the last two years operating margin has expanded by 74 bps.
- PBT margin is 25.3%.
- Expense growth of 14.9% remained below revenue growth of 23.6%.
- Operating profit of ₹1,424 Cr is 27.5% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 87/100 (Excellent) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 1,985 | 1,856 | 1,756 | 1,653 | 1,605 | 1,533 | 1,479 | 1,434 | 1,389 | 1,374 |
| Expenses | Improving | 561 | 617 | 580 | 512 | 488 | 489 | 455 | 451 | 403 | 402 |
| Operating Profit | Improving | 1,424 | 1,239 | 1,175 | 1,141 | 1,117 | 1,044 | 1,024 | 983 | 986 | 972 |
| Operating Margin | Stable | 71.7% | 66.8% | 66.9% | 69.0% | 69.6% | 68.1% | 69.2% | 68.6% | 71.0% | 70.8% |
| Other Income | Improving | 244 | 290 | 245 | 259 | 244 | 251 | 228 | 226 | 192 | 175 |
| Interest | Improving | 1,165 | 1,070 | 1,004 | 987 | 980 | 932 | 891 | 851 | 843 | 828 |
| Depreciation | Insufficient data | — | — | — | — | — | — | — | — | — | — |
| Profit Before Tax | Improving | 503 | 460 | 417 | 414 | 381 | 363 | 361 | 358 | 334 | 320 |
| Tax | Improving | 120 | 100 | 85 | 85 | 75 | 75 | 75 | 73 | 70 | 65 |
| Net Profit | Improving | 383 | 360 | 332 | 329 | 306 | 288 | 286 | 285 | 264 | 255 |
| Net Margin | Stable | 19.3% | 19.4% | 18.9% | 19.9% | 19.1% | 18.8% | 19.3% | 19.9% | 19.1% | 18.5% |
Key Takeaways
- Delivered record full-year net profit of INR 13.27 billion for FY2026, marking a 12.9% CAGR over the last 15 years.
- Reported significant acceleration in business growth, with advances increasing by 26% and deposits growing by 23% YoY.
- Maintains a granular asset profile with SME and MSME lending remaining the core focus, comprising 37% of the total loan book.
- Achieved a 120-year milestone of continuous profitability and dividend payouts since the bank's inception in 1904.
- Strong capital position with a Capital Adequacy Ratio (CRAR) of 21.92%, providing significant headroom for future growth.
- Asset quality remains in focus with a diversified portfolio where top 20 group borrowers contribute only 6.32% of total advances.
- The bank recently completed a 1:3 bonus share allotment (24.76 crore shares) in June 2026 to reward shareholders.
- Digital transformation is progressing with the digitalization of the Loan Origination System (LOS) to improve operational efficiency.
Management Guidance
The bank continues to focus on its specialized SME/MSME business model, targeting large untapped segments that deliver higher yields. Management aims to leverage its digital lending process and expanded branch network (949 branches) to maintain its 10%+ CAGR in business growth.
Sentiment Shift
Improving
Acceleration in both deposit and advance growth (23% and 26% respectively) compared to single-digit growth in previous years indicates a significant shift toward higher scale operations.
Outlook
The outlook remains healthy driven by strong capitalization and a proven ability to manage risk in the SME/MSME segments. The bank's credit rating of 'AA' and 'A1+' by ICRA suggests high safety regarding financial obligations.
From the Annual Report (Key Quotes)
“Celebrating 120 Years of Swadeshi Banking Excellence!”
“SME/MSME specialized business model focusing on large untapped segment consistently delivering higher yields.”
“Continuous profitability and dividend payout in all 121 years of operations.”
Official Quarterly Documents
This summary is AI-generated from City Union Bank Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.