United Bank Limited · PSX:UBL

United Bank — H1 2011 Earnings Presentation

32 slides from United Bank's earnings presentation, Jul 28, 2011

  1. Slide 1: United Bank Limited Performance Review

    United Bank Limited Performance Review June 2011 July 28, 2011 London 1

  2. Slide 2: Key Highlights

    Keyy Highlights g g • Standalone PAT up 29% YoY to Rs.6.7 Bn. Consolidated PAT up 25% YoY at 6.4 Bn • Net interest income up by 16% to Rs 19.3 Bn o NIM increased by 24 bps to 7.4% YoY o Increase in yield on earning assets by 60 bps YoY o Increase in cost of funds by 36 bps • Non markup income up 25%

  3. Slide 3: Key Highlights

    Keyy Highlights g g • Total provisions increased to Rs. 4.9 Bn mainly due to downgrading of previously classified accounts • Administrative expenses up by 14% YoY (QoQ up by 7%) o Cost to income ratio improved (HY 11: 38.6%, HY 10: 40%) • Net advances remained flat at December level to Rs Rs. 334 Bn

  4. Slide 4: Income Statement (Standalone)

    Income Statement ((Standalone)) PKR Bn HY'11 HY'10 Var % Q2'11 Q1'11 Var % Interest Earned 34.06 28.48 20% 17.35 16.71 4% Interest Expensed (14.75) (11.88) -24% (7.19) (7.55) 5% Net Interest Income 19.31 16.60 16% 10.16 9.16 11% Non Interest Income 5 90 5.90 4 73 4.73 25% 2 87 2.87 3 03 3.03 -5% 5%

  5. Slide 5: Income Statement - Consolidated

    Income Statement - Consolidated PKR Bn HY'11 HY'10 Var % Q2'11 Q1'11 Var % Interest Earned 34.49 28.82 20% 17.57 16.92 4% Interest Expensed (14.85) (11.95) -24% (7.25) (7.60) 5% Net Interest Income 19.64 16.87 16% 10.32 9.32 11% Non Interest Income 6 05 6.05 5 09 5.09 19% 2 70 2.70 3 35 3.35 -19% 19

  6. Slide 6: Share Info

    Share Info Standalone Consolidated Dec 2010 Jun 2011 Dec 2010 Jun 2011 EPS (Rs/share-annual.) 9.1 11.0 9.0 10.5 BV/share (Rs/share) 55.9 58.0 61.4 63.7 Price* - (Rs /share) 63.5 60.1 63.5 60.1 P/E 7.0x 5.5x 7.0x 5.7x P/BV 11 1.1x 10 1.0x 10 1.0x 09 0.9x # of shares 1,224M 1,224M 1,224M 1,224M * J un

  7. Slide 7: Key Ratios - Bank

    Key y Ratios - Bank Balance Sheet Ratios Dec-10 Jun-11 Mar-11 Adva nces / Depos i ts 63% 60% 67% As s et Qua l i ty 13 2% 13.2% 13 9% 13.9% 14 3% 14.3% Covera ge 72% 76% 70% Financial Ratios Q2 11 Q1 11 HY'11 HY'10 Yi el d on P. Adva nces 12.8% 13.1% 12.9% 12.4% Cos t of Depos i ts 4.3% 4.3% 4.3% 4.

  8. Slide 8: Deposits Structure (Bank level)

    Deposits p Structure ((Bank level)) Cost of Deposits Deposits ‐ Bank Cost of Deposits Dec'10 Jun'11 6.4% PE - PE - 5.3% Bank Rs.Bn COF % Rs.Bn COF % Domestic deposits 442 4.4% 482 4.8% 4.2% International deposits 108 2.4% 112 2.3% 3.1% Total Bank 551 4 0% 4.0% 594 4 3% 4.3% 2.0% International $ 1,26

  9. Slide 9: Net Advances

    Net Advances % Yield * Net Advances - Rs. Bn Dec'10 Jun'11 Change FY 10 HY 11 Corporate Bank 148.5 149.7 +1% 13.4% 14.0% Commercial ** 80.7 83.5 +3% 15.1% 16.2% Consumer 15.7 12.7 -19% 17.0% 19.8% Others 7.3 6.2 -15% 6.6% 8.4% Total Domestic 252.2 252.1 -0% 14.0% 14.9% I t International ti l 81 5 81

  10. Slide 10: Consumer Advances by Product

    Consumer Advances by y Product Yield* Rs. Bn Dec'10 Jun'11 Var. (%) FY'10 HY 11 Drive 6.2 4.7 -24% 15.8% 20.5% Address 2.4 1.8 -22% 19.9% 23.5% Credit Card 2.2 2.1 -5% 21.5% 22.6% Cashline 2.1 1.9 -8% 12.9% 15.4% Businessline 2.6 2.0 -24% 14.8% 16.7% Money 0.3 0.2 -38% 36.8% 28.9% Total 15.7 12.7 -1

  11. Slide 11: International Advances

    International Advances By Geography By Business - UAE Yemen, 8% Qatar 12% Qatar, NewYork, 0% Bahrain, 9% EPZ, 0% Corporate, 65% Others, 13% UAE, 71% Consumer, 22% Personal Abu loan, 17% Sharjah, Sharjah Others 2% Others, Dhabi, 9% 27% Baitna 81% Baitna, Dubai, 64% 11

  12. Slide 12: Spread Analysis - Bank Level

    Spread p Analysis y – Bank Level Bank HY 2011 HY 2010 Avg.Yield Avg.Yield Rs Bn PE AVG IE /Cost PE AVG IE /Cost Avg KIBOR - 3M 13.5% 12.3% Interest Earning Assets P f Performing i Advances Ad 313 304 19.5 19 5 12.9% 12 9% 325 321 19.8 19 8 12.4% 12 4% Corporate 135 135 9.3 14.0% 136 138 9.2 13.4% Co

  13. Slide 13: Concentration of Advances - Standalone

    Concentration of Advances - Standalone Trading, 4% Airlines,, 2% Agribusiness, 15% Automobile & Trans. Textile, 15% Equip., 1% Telecom, 3% Cement, 1% Chemical and pharmaceuticals, 2% Sugar, 4% Contractor / Constructor, 6% Prod. & Transmission Energy, 12% Fertilizer, 2% Financials, 2% Individuals, 13

  14. Slide 14: Non Markup / Return / Interest Income

    Non Markup / Return / Interest Income Non Fund Income - Rs. Mn HY'11 HY'10 Var % Q2'11 Q1'11 Var % Fee, commission and brokerage income 3,280 3,108 6% 1,681 1,599 5% Dividend income 322 278 16% 221 101 118% Income from dealing in foreign currencies 1,076 692 55% 326 749 -56% Gain / (loss) on sale of

  15. Slide 15: Fee Commission and Brokerage Income

    Fee Commission and Brokerage Income Fee Commission Income - Rs. Mn HY'11 HY'10 Var % Q2'11 Q1'11 Var % Commission on trade 771 828 -7% 365 406 -10% Commission on consumer loan 454 490 -7% 222 232 -4% Commission on remittance / Uniremote 413 420 -2% 189 224 -16% Corporate service charges/finance fee

  16. Slide 16: Administrative Expenses

    Administrative Expenses p Administrative Expenses-Mn HY'11 HY'10 Var % Q2'11 Q1'11 Var % Personnel Cost 4,158 3,764 -10% 2,074 2,084 0% Premises Cost 1,536 1,413 -9% 807 729 -11% Outsourced service charges 754 654 -15% 392 362 -8% including sales commission Advertisement and publicity 305 171 -78% 1

  17. Slide 17: E-banking Statistics

    E-banking g Statistics E-Banking Jun'11 Jun'10 % Change 2010 2009 # of ATMs 468 413 13% 436 412 # of Transactions (Mn) 10 0 10.0 83 8.3 20% 16 4 16.4 14 6 14.6 Average transactions per day 55k 46k 20% 45k 40k Total transaction amount (Rs Bn) 60 49 24% 101 84 Average transaction size (Rs 000) 60 6.0

  18. 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 Jun'11 Dec-10 Mar-11 Jun-11 1 Spread 5 1% 5.1% 5 5% 5.5% 5 5% 5.5% 5 7% 5.7% 5 5% 5.5% 5 5% 5.5% 5 9% 5.9% 2 Net Interest Margin 6.1% 6.9% 7.1% 7.4% 7.2% 7.2% 7.5% 3 Non Interest Yield 1.9% 2.1% 1.6%

  19. 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 Jun'11 Dec-10 Mar-11 Jun-11 G Gross NPL NPLs / G Gross L Loan 7 2% 7.2% 10 3% 10.3% 12 9% 12.9% 13 4% 13.4% 12 9% 12.9% 13 9% 13.9% 13 4% 13.4% Net NPLs / Gross Loan 2.2% 3.0% 4.0% 3.5% 4.0% 4.

  20. Slide 20: Financial ratios – Consolidated (3/3)

    Financial ratios – Consolidated ((3/3)) Yearly Q T D ( A n n u a liz e d ) Other Metrics 2008 2009 2010 Jun'11 De c-10 Mar-11 Jun-11 C i l Adequacy Capital Ad Ratio R i 10 4% 14.0% 10.4% 14 0% 15.0% 15 0% 15.5% 15 5% 15 0% 15.0% 14 7% 14.7% 15 5% 15.5% Tier-I CAR 6.1% 9.5% 10.4% 10.8% 10.4% 10.2% 10

  21. Slide 21: Quarterly Trend Analysis - Bank Level

    Quarterly y Trend Analysis y Bank Level 21

  22. Slide 22: Profit before Tax

    Profit before Tax 7.0 6.1 5.2 5.0 52 5.2 48 4.8 4.3 4.4 Rs Bn 4.3 3.9 4.1 4.3 3.2 3.4 2.8 25 2.5 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 22

  23. Slide 23: Profit after Tax

    Profit after Tax 5.0 4.3 3.4 36 3.6 33 3.3 3.1 Rs Bn 2.8 2.8 2.9 2.9 2.5 2.4 2.1 2.2 1.8 15 1.5 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 23

  24. Slide 24: Deposits

    Deposits p 650 594 600 551 550 529 509 500 Rs Bn 492 491 500 469 452 451 450 400 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 24

  25. Slide 25: Net Advances

    Net Advances 380 368 369 360 358 354 352 Rs Bn 347 343 335 334 334 334 336 331 325 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 25

  26. Slide 26: Net Interest Income

    Net Interest Income 11.0 10.2 10.2 91 9.1 9.0 92 9.2 9.4 Rs Bn 8.4 8.5 8.6 8.2 8.2 R 79 7.9 7.7 7.8 70 7.0 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 26

  27. Slide 27: Net Provision

    Net Provision * 6.0 47 4.7 4.8 3.6 3.0 27 2.7 2.6 Rs Bn 2.2 2.1 2.2 2.3 2.4 2.0 1.8 1.2 - Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 * Excluding other operational Write‐ Write‐offs 27

  28. Slide 28: Non Fund Income

    Non Fund Income 5.0 4.0 4.2 34 3.4 3.0 29 2.9 28 2.8 Rs Bn 2.6 3.2 2.4 2.4 2.6 2.2 2.0 1.8 1.0 Mar 09 Jun-09 Sep-09Dec-09 Mar-10 Jun-10 Sep-10Dec-10 Mar-11 Jun-11 28

  29. Slide 29: Gross Revenue

    Gross Revenue 13.5 13.0 12.7 12.3 12.2 11.7 11.9 11 9 11.9 Rs Bn 11.1 11.1 10.7 10.1 10.3 10.6 10.3 95 9.5 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 29

  30. Slide 30: Administrative Expenses

    Administrative Expenses p 54 5.4 5.0 5.1 4.9 4.7 4.8 Rs Bn 4.4 4.3 4.4 4.4 4.2 42 4.2 41 4.1 4.1 3.9 3.8 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 30

  31. Slide 31: Forward-looking statements notice

    Thee information o a o co contained a ed herein e e reflects e ec s ou our latest a es bus business ess sstatement a e e as aat June 30, 2011 Except the historical information contained herein, statements in this Release which contain words or phrases such as ‘will’, ‘would’, ‘indicating’ expected t

  32. Slide 32: Thank You

    _ ©BL UNITED BANK oo Thank You ©BL 32

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