United Bank For Africa Plc · NSENG:UBA

United Bank For Africa — H1 2013 Earnings Presentation

24 slides from United Bank For Africa's earnings presentation, Aug 5, 2013

  1. Slide 1: United Bank for Africa Plc First Half 2013 Results

    United Bank for Africa Plc First Half 2013 Results Investors/Analysts Presenta7on August 5, 2013

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements From 7me to 7me, the Bank makes wri=en and/or oral forward-­‐looking statements, including in this presenta7on and in other communica7ons. In addi7on, representa7ves of the Bank may make forward-­‐looking statements orally to analysts, investors, the media and others. All

  3. Slide 3: Important Notes

    Important Notes Defini7on of terms: FY means “Full Year”; and 1Q means “First Quarter”; 2Q means “Second Quarter”; HY means “Half Year” and 1H means “First Half”. The result were prepared in line with the Interna7onal Financial Repor7ng Standards (IFRS). Regional split of African countries we operate

  4. Slide 4: Outline

    Outline 1 Overview of UBA 2 Macroeconomic Overview 3 First Half 2013 Financial Highlights 4 Review of First Half 2013 Financial Results 5 Appendix 4

  5. Slide 5: 1. Overview of UBA

    uBAN 1. Overview of UBA ~~ Aiba Rhlb te I= = ==een EAS eee

  6. Slide 6: Brief History

    Brief History Acquired majority interest in two banks based in B/Faso and Benin Successfully raised N20bn Won Financial UBA merged with Standard debt capital Times’ Bankers’ Trust Bank French & BriLsh Commenced operaLons in Awards for Best Bank Limited Standard ConLnental Trust Bank some African cou

  7. Slide 7: Key business strengths

    Key business strengths § Africa’s global bank, with a uniquely scaled plaeorm. § Strong retail franchise reaching over 7 million customers through more than 700 business offices spread across 22 countries globally. § Improving financial performance, underpinned by solid risk management standards. §

  8. Slide 8: 2. Overview of Macro Economy

    2. Overview of Macro Economy 8

  9. Slide 9: Overview of Macro Economy

    Overview of Macro Economy Nigeria Ghana Guinea Liberia Cote d’Ivoire Locations outside Africa GDP ($bn) 262.61 GDP ($bn) 40.71 GDP ($bn) 6.70 GDP ($bn) 1.77 GDP ($bn) 24.68 GDP Growth 6.72% GDP Growth 6.70% GDP Growth 3.90% GDP Growth 8.30% GDP Growth 9.80% Population (mn) 166.21 Population (mn) 25.

  10. Slide 10: Recent Developments in the Operating Environment

    Recent Developments in the OperaLng Environment § Nigeria’s economy con7nues to grow; 6.72% GDP growth was achieved in the second quarter of 2013. – Growth also impressive in other African countries we operate: 6.7% in Ghana, 8.3% in Liberia, 9.8% in Cote d’Ivoire, 8% in B/Faso, 7.2% in Congo. § S

  11. Slide 11: Recent Developments in the Operating Environment cont'd

    Recent Developments in the OperaLng Environment cont’d § Monetary Policy Rate (MPR) in Nigeria remain 12%. § Nigeria’s Crude Oil produc7on averages to 2.1 mb/day in the first half of 2013, from 2.4 mb/ day in December 2012. § Ghana’s exchange rate dropped to GHc2.06/US$ recently, from GHc 1.91/US$

  12. Slide 12: 3. First Half 2013 Financial Highlights

    3. First Half 2013 Financial Highlights 12

  13. Slide 13: First Half 2013 Financial Highlights

    First Half 2013 Financial Highlights Comprehensive Income & Profit 30-­‐Jun-­‐13 30-­‐Jun-­‐12 % Change Gross Earnings 125,981 107,913 16.7% Net Interest Income 53,407 45,610 17.1% COMPREHENSIVEI NCOME & PROFIT Other Income 37,357 34,097 9.6% TREND Opera7ng Income 88,455 78,676 12.4% (N’million) Oper

  14. Slide 14: 4. Review of First Half 2013 Financial Results

    4. Review of First Half 2013 Financial Results 14

  15. Slide 15: Income Analysis

    Income Analysis Gross earnings trend (N’bn) Gross earnings by income type 126.0 107.9 91.3 32% Interest Income 30% Non Interest 68% Income 70% 1H 2012 1H 2013 1H11 1H12 1H13 Revenue split by geography § Gross earnings of N126bn achieved in the first half of 2013 Africa (excl. Nig.) Nigeria & RoW – U

  16. Slide 16: Profitability

    Profitability OperaLng Income (N’bn) PBT Trend (N’bn) 88.5 33.2 30.4 78.7 68.0 12.3 1H11 1H12 1H13 1H11 1H12 1H13 Return on Avg. Equity Return on Avg. Assets § Opera7ng income was N88.5bn for the period – Grew by 12.4% YoY 30.6% 2.5% 2.4% 28.1% 28.4% 2.0% § N33.2bn was recorded as PBT for the perio

  17. Slide 17: Profit Drivers

    Profit Drivers Net Interest Margin Cost of Funds 6.1% 3.4% 3.3% 5.9% 5.8% 3.2% 1H12 FY12 1H13 1H12 FY12 1H13 Cost-­‐to-­‐Income RaLo § Stable net interest margins, now 5.8%. Improvement is expected following recent 82.0% and on-­‐going loan book expansion 62.0% 62.0% § Cost of funds remain stable a

  18. Slide 18: Financial Position

    Financial PosiLon Total Assets (N’trn) Total Assets plus ConLngents 2.43 (N’trn) 2.85 2.27 2.04 2.67 FY12 1H13 1H12 FY12 1H13 Total Assets Mix § Total assets grew by 6.9% so far this year; now N2.43 trillion. 5% 3% 3% 3% Cash & Bank Balances § Overall, balance sheet foo7ng is 16% 13% even stronger

  19. Slide 19: Loan Portfolio

    Loan Poriolio Loan Book (N’bn) Loan Book, by Customer Type 761.2 Financial Inst. 734.4 6% 687.4 Public sector 10% Commercial 6% Retail Corporate 18% 60% 1H12 FY12 1H13 § Net loan book stood at N761.2bn NPL RaLo Loan DistribuLon, by Sector – Grew by 10.7% from FY12 2.4% Consumer/Retail posi7on, and

  20. Slide 20: Deposit Portfolio

    Deposit Poriolio Total Deposits (N’trn) Deposit Mix, by Cost 2.02 Purchased Low Cost 1.71 1.78 20% 20% 21% 1H12 FY12 1H13 1H12 FY12 1H13 Deposit Mix, by geography § Total deposits stood at N2.02 trillion, up by Africa (Excl. Nigeria) Nigeria 13.5% in the year. 17% 17% 20% § Nearly 80% of deposits

  21. Slide 21: Funding, Liquidity and Capital Adequacy

    Funding, Liquidity and Capital Adequacy Funding Mix Capital Adequacy RaLo 8.6% 5.9% 3.7% 23.7% 23.5% 4.8% 22.3% 13.0% 7.4% 8.5% 8.5% 12.5% Others Borrowings Equity Deposits 1H12 FY12 1H13 Liquidity RaLo 1H12 FY12 1H13 69.8% 59.7% 53.5% § Deposits con7nue to drive asset funding. Contributed 83% to a

  22. Slide 22: 5. Appendix

    uBAN 5. Appendix 22

  23. Slide 23: Summary Historical Financial Results

    Summary Historical Financial Results FY2009 FY2010 FY2011 FY2012 1Q2013 1H2013 Key P & L line (N’ million) Gross earnings 194,315 177,571 184,833 220,129 62,765 125,981 Interest income 142,278 117,745 121,422 150,003 44,373 88,624 Interest expense (47,727) (46,969) (46,125) (58,386) (17,214) (35,217

  24. Slide 24: Thank you

    uBAN ==BhnN EAS ees frica’s global bank 24

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