Union Bank Of Taiwan · TWSE:2838
Union Bank Of Taiwan — Q3 2018 Earnings Presentation
21 slides from Union Bank Of Taiwan's earnings presentation, Nov 6, 2018
Slide 1: Union Bank of Taiwan Analyst Meeting: Financial Review of 3Q18
Union Bank of Taiwan Analyst Meeting Financial Review of 3Q18 November 6th, 2018 1
Slide 2: Disclaimer
DISCLAIMER This presentation is provided by Union Bank of Taiwan (”UBOT”).The information contained within is not reviewed or reviewed by any accountant or any independent third party. Users should read this material in conjunction with all other public financial and operational information filed
Slide 3: Financial Highlights of 3Q18
Financial Highlights of 3Q18 Profitable and steady growth Net income for the month ended September, 2018, was 2.422 billion, increased 19.9% YoY, Operating revenue was 8.156 billion, increased 5.96% YoY. EPS was 0.84 in 3Q18, compare with 0.78 in 3Q17 , increased 7.69% YoY. Steady growth of busi
Slide 4: Financial Highlights of 3Q18 (conti.)
Financial Highlights of 3Q18 (conti.) Capital is adequate and robust CAR was 13.5%, Tier 1 ratio was 12.03%, and CET1 ratio was 8.85% as of September 30, 2018. Good asset quality and overdue loan coverage NPL was 441 million, NPL ratio was 0.13%, and NPL coverage ratio was 863.25% as of Septembe
Slide 5: Consolidated revenue and profit
Consolidated revenue and profit NT$ mn, % 9M18 9M17 Items Diff. % （non-audit） Net interest income 5,081 4,917 ＋3.34% Net fee income 1,796 1,705 ＋5.34% Other income 2,853 2,697 ＋5.78% Operating revenue 9,730 9,319 ＋4.41% Pre-Tax Income 2,777 2,504 ＋10.90% 5
Slide 6: Net Profit Movements
Net Profit Movements 8,156 (5,043) NT$ mn 9M18 (350) (340) 2,422 Operating Revenue Operating Expense Provision Income Tax Net Income YoY YoY YoY 9M17 +5.96% +4.13% +19.90% 7,697 (4,843) (398) (437) 2,020 Operating Revenue Operating Expense Provision Income Tax Net Income
Slide 7: Revenue Breakdown
Revenue Breakdown NII% Fee Income% NT$ mn, % Operating Revenue Other Income% Operating Revenue 9,907 7,697 10,288 8,156 8,156 100% 7,697 4,861 5,342 90% 10.64% 8.64% 12.43% 80% 12.79% 13.29% 15.08% 70% 24.77% 23.26% 22.39% 22.59% 23.16% 22.23% 60% 50% 40% 30% 64.59% 68.10% 64.82% 64.98% 63.55% 62.69
Slide 8: Financial Performance
Financial Performance NT$ mn Operating Revenue 9,907 10,288 8,850 9,806 8,156 2014 2015 2016 2017 9M18 Net Income NT$ mn EPS NT$ dollar 1.19 1.20 3,094 3,121 1.01 1.05 2,636 2,745 2,422 0.84 2014 2015 2016 2017 9M18 2014 2015 2016 2017 9M18 8
Slide 9: Operating revenue analysis
Operating revenue analysis 35.47% 34.12% 9M18 (non-audit) 9M17 Corporate Busibess 15.03% 22.35% 21.18% 21.99% 17.84% 15.03% 13.65% Others 9.31% 9.06% 17.84% Corporate Consumer Trust & Ｗealth Investment Others Business Business Mgmt. Consumer Business 2018.09 2017.09 Investment 35.47% Items portion i
Slide 10: Business Performance
Business Performance NT$ mn, % Items 2018.09 2017.09 Diff. Amt Diff. % Total deposits (avg. bal.) 476,620 446,919 29,701 6.65% Demand deposits 194,590 183,069 11,521 6.29% Time deposits 214,642 201,785 12,857 6.37% Foreign exchange deposits 67,388 62,065 5,323 8.58% Total Loans (avg. bal.) 339,773 3
Slide 11: Deposits analysis
Deposits analysis Total deposits（avg. bal.） YoY Comparison TWD$476.6 billion NT$ bn Foreign exchange deposits, 9M17 9M18 14.14% 214.6 201.8 183.1 194.6 Demand deposits, 40.83% 62.1 67.4 Time deposits, 45.03% Demand deposits Time deposits Foreign exchange deposits 11
Slide 12: Deposits balance
Deposits balance NT$ mn Demand Deposits Time Deposits 264,541 208,826 214,031 205,242 249,964 243,611 245,310 196,360 240,632 192,697 2016 6M17 2017 6M18 9M18 2016 6M17 2017 6M18 9M18 Date Total Deposits End of End of End of End of End of 2016 Jun. 2017 2017 Jun. 2018 Sep. 2018 478,572 Items 458,790
Slide 13: Loans analysis
Loans analysis Total Loans YoY Comparison TWD$329.7 billion Construction Government NT$ bn 9M17 9M18 loans , 9.0% Large 186.8 1.9% Corporate, 163.4 3.7% Consumer SME, 17.9% loans, 56.7% 58.9 49.1 32.3 29.7 34.1 35.6 8.9 12.3 7.4 6.4 Other Corporate, 10.8% Government Large SME Other Consumer Construc
Slide 14: Stable Loan Growth
Stable Loan Growth Corporate Loans Consumer Loans NT$ mn 115,596 112,673 106,295 186,448 179,956 168,173 99,076 154,226 159,117 94,786 2016 6M17 2017 6M18 9M18 2016 6M17 2017 6M18 9M18 Government Loans is excluded from Corporate Loans. 14
Slide 15: Business Performance (Cards)
Business Performance Cards, NT$ Mn,% Items Jan. to Sep. 2018 Jan. to Sep. 2017 Diff. Amt Diff. % Cards outstanding 2,105,328 2,012,530 92,798 4.61% Valid cards in 6 months 1,174,325 1,142,192 32,133 2.81% Operating income 1,862 1,743 119 6.83% Value of transactions 67,751 63,992 3,759 5.87% Value of
Slide 16: Credit Card Business
Credit Card Business Active Cards Thousand Card,% Card Consumption NT$mn 4.01% 3.20% 3.27% 3.17% 4.11% 4.04% 2.98% 3.24% 3.21% 2.76% 78,284 86,566 1,153 1,174 67,323 68,376 1,084 57,881 789 813 2014 2015 2016 2017 9M18 2014 2015 2016 2017 9M18 Active Cards Market Share-8M18 Card consumption Market S
Slide 17: NIM and Spread
NIM and Spread Overall Leanding Rate Overall Deposit Rate NIM Interest Spread 1.48% 1.46% 1.45% 1.37% 1.41% 1.41% 1.41% 1.34% 1.35% 2.15% 2.14% 2.13% 2.10% 2.11% 2.12% 1.33% 1.29% 1.29% 0.67% 0.68% 0.68% 0.69% 0.70% 0.71% 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 17
Slide 18: Assets Quality
Assets Quality NPL NT$ mn,% NPL Ratio 0.19% 551 444 441 383 0.13% 0.13% 0.12% 274 0.10% 2016 6M17 2017 6M18 9M18 2016 6M17 2017 6M18 9M18 NPL increased by Foshin Airline 200 million in 2Q17 was written off at the year ended of 2017. 18
Slide 19: Assets Quality (Conti.)
Assets Quality (Conti.) NT$ mn, % Allowance for bad debts. NPL Coverage Ratio Avg. NPL Coverage Ratio in TW Banks 4,000 1839.97% 3,806 2000.00% 3,674 3,500 3,398 3,402 1800.00% 3,197 1600.00% 3,000 2,797 1400.00% 2,500 1168.83% 1200.00% 2,000 887.26% 828.37% 863.25% 1000.00% 800.00% 1,500 555.43% 61
Slide 20: Capital Adequacy: Risk Weighted Assets
Capital Adequacy NT$ thousand Risk Weighted Assets 2014 2015 2016 2017 6M18 9M18 Regulatory capital 32,843,359 36,390,672 38,935,126 49,740,733 49,981,331 49,777,477 Common share 26,380,471 28,573,380 30,419,225 31,867,478 32,054,200 32,611,397 Other tier 1 capital 0 0 1,664,565 12,146,864 12,116,32
Slide 21: Bank BIS Ratio
Bank BIS Ratio CET1 Ratio Other Tier 1 Ratio Tier 2 Ratio 15.70% 13.47% 1.81% 13.92% 13.50% 13.19% 13.01% 12.76% 1.62% 1.47% 2.84% 2.59% 2.37% 2.08% 3.83% 0.00% 0.57% 0.70% 3.37% 3.18% 0.56% 10.35% 9.86% 10.53% 9.98% 10.06% 8.93% 8.85% 2015 6M16 2016 6M17 2017 6M18 9M18 21