United Bank Limited · PSX:UBL
United Bank — FY2011 Earnings Presentation
32 slides from United Bank's earnings presentation, Feb 21, 2012
Slide 1: United Bank Limited Performance Review FY 2011
United Bank Limited Performance Review FY 2011 February 21, 2012 Abu Dhabi 1
Slide 2: Key Highlights
Key Highlights • Standalone PAT up 39% YoY to Rs.15.5 Bn. Consolidated PAT up 35% YoY to Rs 14.9 Bn • Net interest income up by 15% to Rs 39.4 Bn YoY o NIM increased by 20 bps to 7.2% YoY o Yield on earning assets increased YoY by 55 bps o Cost of funds increased YoY by 35 bps • Non markup income up
Slide 3: Key Highlights
Key Highlights • Provisions down YoY by 7% to Rs 7.5 Bn o 73% of 2011 provisions from previously classified names o Coverage ratio improved from 72% in Dec’10 to 80% in Dec’11 o Growth in NPL reduced to 5.2% in 2011 (2009: 41%, 2010: 24%) ; NPL formation down from 4% to 2.6% • Admin expenses increas
Slide 4: Income Statement (Standalone)
Income Statement (Standalone) PKR Bn FY 11 FY 10 Var % Q4'11 Q3'11 Var % Interest Earned 70.45 59.28 19% 17.92 18.47 -3% Interest Expensed (31.03) (25.00) -24% (8.13) (8.15) 0% Net Interest Income 39.42 34.28 15% 9.79 10.32 -5% Non Interest Income 12.72 10.09 26% 3.78 3.04 24% Total Revenue 52.14 44
Slide 5: Income Statement - Consolidated
Income Statement - Consolidated PKR Bn FY 11 FY 10 Var % Q4'11 Q3'11 Var % Interest Earned 71.37 60.05 19% 18.18 18.71 -3% Interest Expensed (31.34) (25.21) -24% (8.27) (8.22) -1% Net Interest Income 40.03 34.84 15% 9.91 10.49 -5% Non Interest Income 12.97 10.86 19% 3.73 3.19 17% Total Revenue 53.01
Slide 6: Share Info
Share Info Standalone Consolidated Dec 2011 Dec 2010 Dec 2011 Dec 2010 EPS (Rs/share-annual.) 12.7 9.1 12.1 9.0 BV/share (Rs/share) 64.7 55.9 70.1 61.4 Price* - (Rs /share) 63.6 63.5 63.6 63.5 P/E 5.0x 7.0x 5.3x 7.0x P/BV 1.0x 1.1x 0.9x 1.0x # of shares 1,224M 1,224M 1,224M 1,224M * De c -11 Pric e
Slide 7: Key Ratios - Bank
Key Ratios - Bank Balance Sheet Ratios Dec-10 Dec-11 Adva nces / Depos i ts 67% 60% As s et Qua l i ty 13.2% 14.0% Covera ge 72% 80% Financial Ratios FY'10 FY'11 Q3 11 Q4 11 Yi el d on P. Adva nces 12.4% 12.9% 13.1% 12.8% Cos t of Depos i ts 4.0% 4.3% 4.4% 4.2% Net Interes t Ma rgi n 7.0% 7.2% 7.2%
Slide 8: Deposits Structure (Bank level)
Deposits Structure (Bank level) Cost of Deposits Deposits - Bank Cost of Deposits Dec'10 Dec'11 6.4% Bank PE - PE - Rs.Bn Yield % Rs.Bn Yield % 5.3% Domestic deposits 442 4.4% 495 4.8% 4.2% International deposits 108 2.4% 118 2.3% 3.1% Total Bank 551 4.0% 613 4.3% 2.0% International $ 1,263 2.4% 1,3
Slide 9: Net Advances
Net Advances % YTD Yield * Net Advances - Rs. Bn Dec'10 Dec'11 Change 2010 2011 Corporate Bank 148.5 155.2 +4% 13.4% 14.4% Commercial ** 80.7 69.0 -15% 15.1% 16.1% Consumer 15.7 11.3 -28% 17.0% 19.3% Others 7.3 6.0 -18% 7.2% 8.1% Total Domestic 252.2 241.4 -4% 14.0% 15.0% International 81.5 83.9 +3%
Slide 10: Consumer Advances by Product
Consumer Advances by Product YTD Yield* Rs. Bn Dec'10 Dec'11 Change 2010 2011 Drive 6.2 3.8 -40% 15.8% 19.0% Address 2.4 1.6 -32% 19.9% 21.4% Credit Card 2.2 2.0 -8% 21.5% 23.0% Cashline 2.1 1.9 -6% 12.9% 16.2% Businessline 2.6 1.8 -29% 14.8% 17.1% CashPlus - 0.1 +100% - 22.1% Money 0.3 0.0 -85% 36.
Slide 11: International Advances
International Advances 11
Slide 12: Spread Analysis – Bank Level
Spread Analysis – Bank Level Bank FY 2011 FY 2010 FY 2 Avg.Yield Avg.Yield Rs Bn PE AVG IE /Cost PE AVG IE /Cost Avg KIBOR - 3M 13.1% 12.6% Interest Earning Assets Performing Advances 306 302 39.0 12.9% 313 319 39.7 12.4% Corporate 141 132 18.9 14.4% 135 137 18.3 13.4% Commercial 21 21 3.3 15.8% 25
Slide 13: Concentration of Advances - Standalone
Concentration of Advances - Standalone Trading, Airlines, 1% 4% Agribusiness, 13% Automobile & Trans. Equip., 1% Telecom, 2% Textile, 17% Cement, 1% Chemical and pharmaceuticals, 2% Contractor / Sugar, 2% Constructor, 7% Engineering, 0% Prod. & Transmission Fertilizer dealers, 2% Energy, 11% Financi
Slide 14: Non Markup / Return / Interest Income
Non Markup / Return / Interest Income Non Fund Income - Rs. Mn FY' 11 FY' 10 Var % Q4'11 Q3'11 Var % Fee, commission and brokerage income 6,949 6,338 10% 1,958 1,712 14% Dividend income 786 591 33% 357 108 231% Income from dealing in foreign currencies 2,078 1,654 26% 561 441 27% Gain / (loss) on sa
Slide 15: Fee Commission and Brokerage Income
Fee Commission and Brokerage Income Fee Commission Income - Rs. Mn FY' 11 FY' 10 Var % Q4'11 Q3'11 Var % Commission on trade 1,471 1,686 -13% 407 292 39% Commission on consumer loan 994 1,047 -5% 299 242 24% Commission on remittance / Uniremote 833 793 5% 211 209 1% Corporate service charges/finance
Slide 16: Administrative Expenses
Administrative Expenses Other Operating Cost - Rs. Mn FY' 11 FY' 10 Var % Q4'11 Q3'11 Var % Personnel Cost 8,573 7,465 -15% 2,251 2,163 -4% Premises Cost 2,888 2,909 1% 519 832 38% Outsourced service charges 1,603 1,485 -8% 424 425 0% including sales commission Advertisement and publicity 578 766 25
Slide 17: E-banking Statistics
E-banking Statistics E-Banking 2011 2010 % Change 2009 # of ATMs 476 436 9% 412 # of Transactions (Mn) 19.5 16.4 19% 14.6 Average transactions per day 53k 45k 18% 40k Total transaction amount (Rs Bn) 125 101 24% 84 Average transaction size (Rs 000) 6.4 6.1 4% 5.7 Average monthly trans.per ATM (Rs Mn
Slide 18: Financial ratios – Consolidated (1/3)
Financial ratios – Consolidated (1/3) Full Year Q T D ( A n n u a liz e d ) DuPont 2008 2009 2010 2011 Dec-10 Mar-11 Jun-11 S ep-11 Dec-11 Spread 1 5.1% 5.5% 5.5% 5.6% 5.5% 5.5% 5.9% 5.7% 5.3% 2 Net Interest Margin 6.1% 6.9% 7.0% 7.2% 7.2% 7.2% 7.4% 7.2% 6.9% Non Interest Yield 3 1.9% 2.1% 1.6% 1.7%
Slide 19: Financial ratios – Consolidated (2/3)
Financial ratios – Consolidated (2/3) Asset Quality Full Year Q T D ( A n n u a liz e d ) 2008 2009 2010 2011 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Gross NPLs / Gross Loan 7.2% 10.3% 12.9% 13.4% 12.9% 13.9% 13.4% 14.4% 13.4% Net NPLs / Gross Loan 2.2% 3.0% 3.6% 2.7% 3.6% 4.1% 3.5% 3.7% 2.7% Coverage Ra
Slide 20: Financial ratios – Consolidated (3/3)
Financial ratios – Consolidated (3/3) Yearly Other Metrics Q T D ( A n n u a liz e d ) 2008 2009 2010 2011 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Capital Adequacy Ratio 10.4% 14.0% 15.0% 14.9% 15.0% 14.7% 15.5% 15.9% 14.9% Tier-I CAR 6.1% 9.5% 10.4% 10.6% 10.4% 10.2% 10.8% 11.2% 10.6% Loan / Deposits 77
Slide 21: Quarterly Trend Analysis
Quarterly Trend Analysis Bank Level 21
Slide 22: Profit before Tax
Profit before Tax 8.5 7.5 7.3 6.5 6.1 5.0 5.2 Rs Bn 4.8 4.4 4.9 3.9 4.1 4.3 4.3 3.7 3.2 2.8 2.5 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 22
Slide 23: Profit after Tax
Profit after Tax 5.0 4.5 4.2 4.3 3.4 3.6 3.3 3.1 Rs Bn 2.8 2.8 2.9 2.9 2.5 2.4 2.1 2.2 1.8 1.5 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 23
Slide 24: Deposits
Deposits 650 613 594 600 551 557 550 529 509 Rs Bn 492 500 491 500 469 452 451 450 400 Mar 09 Jun 09 Sep 09Dec 09Mar 10 Jun 10 Sep 10Dec 10Mar 11 Jun 11 Sep 11Dec 11 24
Slide 25: Net Advances
Net Advances 380 368 368 360 352 354 355 Rs Bn 343 343 335 334 334 334 331 330 326 326 318 Mar 09 Jun 09 Sep 09 Dec 09Mar 10 Jun 10 Sep 10 Dec 10Mar 11 Jun 11 Sep 11 Dec 11 25
Slide 26: Net Interest Income
Net Interest Income 11.0 10.3 10.2 10.2 9.8 9.4 9.1 9.1 9.2 Rs Bn 8.6 8.6 8.1 8.2 8.2 8.4 7.8 7.8 7.0 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 26
Slide 27: Net Provision
Net Provision 6.0 4.7 4.8 3.6 3.6 2.8 2.6 Rs Bn 2.2 2.1 2.1 1.9 2.3 2.4 1.9 1.6 1.0 1.2 - Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 27
Slide 28: Non Fund Income
Non Fund Income 5.0 4.0 4.2 3.8 3.4 3.0 2.9 3.0 2.8 Rs Bn 2.6 2.6 2.2 3.2 2.4 2.4 2.0 1.8 1.0 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 28
Slide 29: Gross Revenue
Gross Revenue 14.5 13.6 13.4 13.5 13.0 12.2 12.2 12.5 11.9 Rs Bn 11.8 11.5 11.2 10.7 10.3 10.5 10.6 10.3 9.5 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 29
Slide 30: Administrative Expenses
Administrative Expenses 5.0 5.0 5.0 5.1 4.9 4.7 4.8 Rs Bn 4.4 4.5 4.4 4.4 4.2 4.2 4.1 4.0 4.1 3.8 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 30
Slide 31: Forward-looking statements
The information contained herein reflects our latest business statement as at December 31, 2011 Except the historical information contained herein, statements in this Release which contain words or phrases such as ‘will’, ‘would’, ‘indicating’ expected to’ etc., and similar expressions or variations
Slide 32: Thank You
_@GBL UNITED BANK uo. Thank You @st 32