United Bank For Africa Plc · NSENG:UBA

United Bank For Africa — Q1 2013 Earnings Presentation

33 slides from United Bank For Africa's earnings presentation, May 16, 2013

  1. Slide 1: FY 2012 & Q1 2013 Results Investors/Analysts Presentation

    United Bank for Africa Plc FY 2012 & Q1 2013 Results Investors/Analysts Presentation May 16, 2013

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements From time to time, the Bank makes written and/or oral forward-looking statements, including in this presentation and in other communications. In addition, representatives of the Bank may make forward- looking statements orally to analysts, investors, the media and others.

  3. Slide 3: Important Notes

    Important Notes Definition of terms: FY means “Full Year”; and 1Q means “First Quarter”. The Full Year 2012 result was prepared in line with the International Financial Reporting Standards (IFRS). Regional split of African countries we operate in WAMZ UEMOA CEMAC E&SA Ghana Burkina Faso Cameroon Ken

  4. Slide 4: Outline

    Outline Section 1 Overview of Macro Economy Section 2 Full Year 2012 Financial Highlights Section 3 Review of Full Year 2012 Results Section 4 Review of Q1 2013 Results Section 5 Overview of Africa – Focus on UBA Senegal 4

  5. Slide 5: 1. Overview of Macro Economy

    1. Overview of Macro Economy 5

  6. Slide 6: Overview of Macro Economy

    Overview of Macro Economy Nigeria Ghana Guinea Liberia Cote d’Ivoire Locations outside Africa GDP ($bn) 243.98 GDP ($bn) 39.20 GDP ($bn) 5.13 GDP ($bn) 1.16 GDP ($bn) 24.07 GDP Growth 6.99% GDP Growth 7.0% GDP Growth 4.00% GDP Growth 9.80% GDP Growth 8.80% Population (mn) 162.47 Population (mn) 24.9

  7. Slide 7: 2. FY 2012 Financial Highlights

    2. FY 2012 Financial Highlights 7

  8. Slide 8: FY 2012 Financial Highlights

    FY 2012 Financial Highlights Comprehensive Income & Profit 31-Dec-12 31-Dec-11 % Change Gross Earnings 220,129 163,732 +34.4% Net Interest Income 91,617 68,167 +34.4% COMPREHENSIVE INCOME & Other Income 70,126 50,142 +39.9% PROFIT TREND Operating Income 153,093 118,969 +28.7% (N’million) Operating E

  9. Slide 9: 3. Review of FY 2012 Financial Results

    3. Review of FY 2012 Financial Results 9

  10. Slide 10: Income Analysis

    Income Analysis Gross income trend (N’bn) Gross earnings by income type 220.1 100% 199.9 33.5% 30.6% 31.9% 163.7 75% Non Interest Income 50% Interest Income 66.5% 69.4% 68.1% 25% 0% FY10 FY11 FY12 FY10 FY11 FY12 Revenue split by geography Strong revenue growth, up by 34.4% YoY Africa (excl. Nig.) Ni

  11. Slide 11: Profitability

    Profitability Operating Income (N’bn) Profit for the Year (N’bn) Operating Income 54.8 Net Operating Income 154.1 153.1 119.0 -1.9 (6.8) FY10 FY11 FY12 FY10 FY11 FY12 Return on Avg. Equity Return on Avg. Assets Operating income grew by 28.7% yoy – Driven by strong earnings growth 31.9% 2.6% – Net op

  12. Slide 12: Profit Drivers

    Profit Drivers Net Interest Margin Cost of Funds 6.2% 3.4% 5.9% 3.2% 3.0% 4.5% FY10 FY11 FY12 FY10 FY11 FY12 Cost-to-Income Ratio Improving Net Interest Margin and cost-to- income ratio, as well as stable cost of funds 89.2% boost profit in 2012. 75.8% 67.0% FY10 FY11 FY12 12

  13. Slide 13: Financial Position

    Financial Position Total Assets (N’trn) Total Assets plus Contingents (N’trn) 2.27 2.67 1.93 2.31 1.60 1.82 FY10 FY11 FY12 FY10 FY11 FY12 Total Assets Mix Strong asset base, aggregating N2.27 trillion 3% 3% Cash & Bank Balances 3% 5% Overall, balance sheet footing is 9% 16% Money Market Placements s

  14. Slide 14: Loan Portfolio

    Loan Portfolio Loan Book (N’bn) Loan Book, by Customer Type 1.9% 6.5% 4.1% 687 9.8% 647 5.0% 9.0% 602 13.7% 13.8% 11.5% 5.9% 9.0% 7.2% Financial Services Public Sector Others Commercial 68.7% 68.2% 65.7% Corporate FY10 FY11 FY12 FY10 FY11 FY12 Steadily growing loan book; 2year NPL Ratio Loan Distrib

  15. Slide 15: Deposit Portfolio

    Deposit Portfolio Deposit Book (N’trn) Deposit Mix, by Cost 1.78 21.6% 21.6% 20.2% 1.47 1.28 Purchased Low Cost 78.4% 78.4% 79.8% FY10 FY11 FY12 FY10 FY11 FY12 Deposit Mix, by Geography Achieved deposit growth of 21.4% yoy 17% Cheap deposits constitute about 80% to total deposits Nigeria & RoW Rest

  16. Slide 16: Funding, Liquidity and Capital Adequacy

    Funding, Liquidity and Capital Adequacy Funding Mix Capital Adequacy Ratio 23.5% Others Borrowings Equity Deposits 21.7% 18.0% 5.4% 5.9% 5.9% 5.1% 7.4% 9.9% 9.6% 8.5% 7.9% 79.9% 76.3% 78.2% FY10 FY11 FY12 Liquidity Ratio 69.0% 69.8% 65% FY10 FY11 FY12 Deposits are still the biggest source of our fun

  17. Slide 17: 4. Review of Q1 2013 Financial Results

    4. Review of Q1 2013 Financial Results 17

  18. Slide 18: Q1 2013 Financial Highlights

    Q1 2013 Financial Highlights Comprehensive Income & Profit 31-Mar-13 31-Mar-12 % Change Gross Earnings 62,765 52,413 +19.8% Net Interest Income 27,159 22,046 +23.2% COMPREHENSIVE INCOME & Other Income 18,393 16,441 +11.9% PROFIT TREND Operating Income 44,632 37,977 +17.5% (N’million) Operating Expen

  19. Slide 19: Income Analysis

    Income Analysis Gross income trend (N’bn) Gross earnings, by income type 100% 62.8 52.4 31.4% 29.3% 75% Non Interest Income 50% Interest Income 68.6% 70.7% 25% 0% 1Q12 1Q13 1Q12 1Q13 Revenue split by geography Growing revenue base, up 19.8% in Q1-2013 100% 19% 20% Funding income represents 70.7% of

  20. Slide 20: Profitability

    Profitability Operating Income (N’bn) Profit for the Period (N’bn) 44.6 15.6 38.0 13.1 1Q12 1Q13 1Q12 1Q13 Return on Avg. Equity Return on Avg. Assets 18% growth in operating income attests to the strength of the underlying business, as 30.6% 31.0% 2.5% 2.6% well as operational efficiencies and impr

  21. Slide 21: Profit Drivers

    Profit Drivers Net Interest Margin Cost of Funds (Deposits and Borrowings) 6.0% 3.2% 5.2% 3.0% 1Q12 1Q13 1Q12 1Q13 Cost-to-Income Ratio Net Interest Margins still firm at 6%, in spite of a 20 basis points increase in funding costs 65.9% to 3.2% 61.2% Cost to income ratio improved during the period,

  22. Slide 22: Financial Position

    Financial Position Total Assets plus Contingents (N’trn) Total Assets (N’trn) 2.87 2.43 2.67 2.27 FY12 1Q12 1Q13 1Q12 FY12 1Q13 Total Assets Mix Solid balance sheet position of N2.9 3% 3% trillion, of which assets constitute 3% Cash & Bank Balances 5% N2.43 trillion (85%). 16% 17% Money Market Place

  23. Slide 23: Loan Portfolio

    Loan Portfolio Loan Book (N’bn) Loan Distribution, by Sector 687 664 Consumer/Retail Oil & Gas 21% 19% Manufacturing Telecoms 8% 16% General Commerce 6% Construction 7% 13% Agriculture 10% FY12 1Q12 1Q13 Others Loan growth expected to kick in over Loan Book, by Customer Type the remaining quarters f

  24. Slide 24: Deposit Portfolio

    Deposit Portfolio Deposit Book (N’trn) Deposit Mix, by Cost 100% 2.02 20.2% 18.3% 1.78 75% Purchased Low Cost 50% 79.8% 81.7% 25% FY12 1Q11 1Q12 0% FY12 1Q12 1Q13 Cost of Deposits Deposits hit N2trillion mark, accelerating by 13.5% in the quarter 2.8% 2.6% Overall cost average 2.8% for our deposit p

  25. Slide 25: Funding, Liquidity and Capital Adequacy

    Funding, Liquidity and Capital Adequacy Funding Mix Capital Adequacy Ratio Others Borrowings Equity Deposits 26.3% 23.5% 5.9% 2.0% 6.5% 7.4% 8.6% 8.5% 78.2% 82.9% 1Q12 FY12 1Q13 Liquidity Ratio FY12 1Q12 1Q13 73.8% 69.8% Deposits represent 82.9% of total funding base – Arising from the growth record

  26. Slide 26: 5. Overview of Africa: Focus on UBA Senegal

    5. Overview of Africa: Focus on UBA Senegal 26

  27. Slide 27: UBA Senegal – Key Financial Highlights

    UBA Senegal – Key Financial Highlights Comprehensive Income & Profit 31-Dec-12 31-Dec-11 % Change Gross Earnings 3,496 1,306 +167.7% Net Interest Income 1,567 987 +58.8% COMPREHENSIVE Other Income 1,625 1,004 +61.9% INCOME & Operating Income 3,192 1,990 +60.4% PROFIT TREND Operating Expenses (1,519)

  28. Slide 28: Growing Earnings and Profits

    Growing Earnings and Profits Revenue Trend (N’bn) Revenue Mix Non-Interest Income Interest Income 3.50 43% 46% 3.50 56% 2.31 2.31 1.031.03 57% 54% 44% FY10 FY11 FY12 FY10 FY11 FY12 Strong Profit Growth (N’bn) Operating Income PBT 3.19 Revenue leaps by 43.2% yoy, and by a CAGR of 87.1% in 2years. 1.9

  29. Slide 29: Improving Profitability and Efficiency

    Improving Profitability and Efficiency Strong Net Interest Margins Downward Trend in Cost/Income 200% 7.2% 166% 150% 3.50 2.31 4.0% 100% 73.5% 2.5% 1.03 50% 47.6% 0% FY10 FY11 FY12 FY10 FY11 FY12 Return on Equity Return on Assets Improving net interest margins, now 7.2% – 4% in 2011 and 2% in 2.10.

  30. Slide 30: Financial Position

    Financial Position Growing Asset Base (N’bn) Deposits (N’bn) 32.1 26.8 26.9 23.1 3.50 14.0 2.31 10.1 1.03 FY10 FY11 FY12 FY10 FY11 FY12 Conservative Lending (N’bn) 57.0% Solid growth trajectory in assets, now N32.1bn. 2year CAGR of 51.4% achieved L/D Ratio 36.0% 33.2% Loans Strong growth in deposits

  31. Slide 31: Deposit Analysis

    Deposit Analysis Types of Deposits Sources of Deposits Others Financial Institutions Term Call Savings Demand Commercial Agencies Public Sector 3.50 2.31 12% 2.4% 21% 23% 6.1% 2% 7.4% 6.3% 24.8% 1.0310% 4% 10.1% 16.8% 2% 7.0% 33.4% 30.9% 86% 67% 73% 71.2% 43.0% 35.9% FY10 FY11 FY12 FY10 FY11 FY12 Co

  32. Slide 32: Loan Analysis

    Loan Analysis Loan Distribution, by Sector Personal & Professional 2.7% 2.5% 3.6% 3.5% 4.7% Energy 5.6% 5.7% 8.2% 28.3% Manufacturing 7.5% 48.4% 8.5% Services 28.6% 42.1% Education Health FY11 Others FY12 NPL and Coverage Ratios 30.0% NPL Ratio Energy and consumer sectors account for 25.0% 21.4% Cov

  33. Slide 33: Thank you.

    Thank you. Thank you 33

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