United Bank For Africa Plc · NSENG:UBA
United Bank For Africa — FY2023 Earnings Presentation
36 slides from United Bank For Africa's earnings presentation, April 2024
Slide 1: FY 2023 Investor Conference Call Presentation
FY 2023 Investor Conference Call Presentation April 2024
Slide 2: Disclaimer
Disclaimer • IMPORTANT: From time to time, the Bank makes written and/or oral forward-looking statements. These are included 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 oth
Slide 3: Contents
CONTENTS 01 About UBA 02 Operating Environment 03 Sustainability & Governance 04 Financial Performance 05 Payment Business 06 Outlook/Guidance 07 Appendices
Slide 4: About UBA
CONTENTS 01 About UBA > 02 Operating Environment 03 Sustainability & Governance 04 Financial Performance 05 Payment Business 06 Outlook/Guidance 07 Appendices
Slide 5: Who We Are: Our Credentials
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance WhoCredentials Our We Are 75 years of strength, stability & stewardship Disciplined, customer-centric strategy Product leadership & innovation Proven expertise and capacity in key sec
Slide 6: Promoting Financial Services across Africa
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Promoting Financial Services across Africa OUR MISSION African Footprint OUR VISION Burkina Faso Benin Chad To be the undisputed To be a role model for African leading and dominant bu
Slide 7: International Presence beyond Africa
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance International Presence beyond Africa (Our unique spread) USA (New York) United Kingdom (London) France (Paris) UAE (Dubai) • Facilitating payments by leveraging on • UBA UK is a direc
Slide 8: Our Service Network
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Our Service Network Locations Channels People POS ATM 351,701 2,000 20 African Countries Staff + 25,000+ UK (London) USA (New York) Business Offices Card Customers France (Paris) 1,00
Slide 9: Financial Highlights
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Financial Highlights Assets Net Loans Deposits Key Ratios ₦20.7 trn ₦5.6 trn ₦14.9trn CAR – 32.6% [USD21.7bn] [USD5.9bn] [USD15.7bn] 90% 61% 90% LR - 64% NIM – 6.8% Equity Earnings PB
Slide 10: UBA Plc Credit Ratings by recognized Rating Agencies
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance UBA Plc Credit Ratings by recognized Rating Agencies National National National National • Short-term: ngA-2 • Short-term: A1+(NG) • Short-term: F1+(nga) • Short-term: Aa- • Long-term
Slide 11: Operating Environment
01 About UBA 02 Operating Environment > 03 Sustainability & Governance 04 Financial Performance 05 Payment Business 06 Outlook / Guidance 07 Appendices
Slide 12: Global Operating Environment
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Global Operating Environment Real GDP 3.3 • Global growth remained slow and fragile with offsetting results SSA recorded in some major economies. The IMF estimates the global 4.0 % ec
Slide 13: Sub Saharan Africa
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Sub Saharan Africa Policy Economic Socio-Political Monetary Policy Economic Growth Regional Tensions • Monetary Policy remained largely • East Africa was an outperformer in • Rwanda a
Slide 14: Nigeria Operating Context
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Nigeria Operating Context Economic Regulatory and Fiscal Demographic Ratings → On an annual basis, policy → The Federal → United Nations → Moody’s, Fitch, and GDP grew by 2.7% in → CB
Slide 15: Sustainability & Governance
01 About UBA 02 Operating environment 03 Sustainability & Governance > 04 Financial Performance 05 Payment Business 06 Outlook/Guidance 07 Appendices
Slide 16: Our ESG Approach and Impact towards Sustainability
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Our ESG Approach and Impact towards Sustainability Approach Impact Governance Strategy Number of SMES Carbon Emission (Scope supported 1 & Scope 2 Nigeria • ESG is embedded in our vis
Slide 17: UBA Foundation - Touching lives
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance UBA Foundation - Touching lives Education Facilitating educational projects and bridging the Empowerment literacy gap on a pan- African scale. Sponsors of several skills- acquisition
Slide 18: Financial Performance
01 About UBA 02 Operating Environment 03 Sustainability & Governance 04 Financial Performance > 05 Payment Business 06 Outlook / Guidance 07 Appendices
Slide 19: Financial Highlights
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Financial Highlights Income Statement (N’million) FY 2023 FY 2022 % Change Gross Earnings 2,075,386 853,175 143.3 • Gross earnings nearly tripled, driven by strong growth across all i
Slide 20: Solid Earnings Profile
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Solid Earnings Profile Interest Income (₦'bn) Components of Interest Income 93% 1,075 Gross Earnings (₦'bn) 7% Cash and bank balances 557 143.7% 47% Loans 2,075 46% Investment securit
Slide 21: Trading and Revaluation Gains
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Trading and Revaluation Gains Trading & Foreign Exchange Components of Trading & Foreign Exchange Gains Gains (₦'bn) 814% 659 ₦63.3bn ₦112.1bn ₦483.8bn 216% 181% 3,848% (₦20.0bn in FY
Slide 22: Steady growth in fee and transactional income
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Steady growth in fee and transactional income Fees & Commission Income Contributions to Fees & Commission Income (₦'bn) 46% 307 211 ₦125.6bn ₦41.4bn ₦34.2bn ₦30.4bn ₦28.7bn ₦31.5bn ₦1
Slide 23: Key indices trending in the right direction
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Key indices trending in the right direction Profitability (₦'bn) Cost to Income Ratio Yield on Assets • Notable improvements in the profitability indices and cost- 277% 257% to-income
Slide 24: Robust Balance Sheet with well-diversified Asset Mix
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Robust Balance Sheet with well-diversified Asset Mix Total Asset • Balance sheet size driven by both real growth and impact of exchange rate harmonization. ₦20.7trn • Well-diversified
Slide 25: Low-Cost Funding Base
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Low-Cost Funding Base Total Deposits • Customer deposits continue to dominate the Bank’s funding mix (84%), which demonstrates combined efforts ₦17.4trn at deepening our wallet share
Slide 26: Resilient and diversified loan portfolio
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Resilient and diversified loan portfolio Loan Distribution by Sector/Industry FY 23 FY 22 Loan Distribution by Geography 6% General Commerce 10.7% 17.3% Government 9.1% 11.5% Oil and
Slide 27: Asset Quality supported by proactive risk management posture
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Asset Quality supported by proactive risk management posture Loan Staging Trend NPL & Coverage Ratio Trend 82.1% 6.0% 3.0% 14.0% 15.0% 72.2% 80.0% 82.0% 5.85% 2.95% FY 2023 FY 2022 FY
Slide 28: Sustained Growth across Our African Markets
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Sustained Growth across Our African Markets Revenue Growth by Region (₦’bn) Regional Contribution 147% 31% 33% 439.2 188% Revenue ₦767.5bn ₦327.0bn 125% 57% 54% 236.6 178.0 12% 109.0
Slide 29: Payment Business
01 About UBA 02 Operating Environment > 03 Sustainability & Governance > 04 Financial Performance 05 Payment Business > 06 Outlook / Guidance 07 Appendices
Slide 30: Our Key Payment Channels and offerings (1/2)
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Our Key Payment Channels and offerings (1/2) With *919# (our USSD UBA Mobile App UBA Internet Banking Banking) customers provides control, is an integrated single can open a support a
Slide 31: Our Key Payment Channels and offerings (2/2)
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Our Key Payment Channels and offerings (2/2) UBA ATMs are strategically located UBA Cardless The UBA Contactless and equipped to Withdrawal Services Payment effectively serve our The
Slide 32: Strong digital channels penetration and adoption
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Strong digital channels penetration and adoption Chat Banking Internet Banking Cards Subscription (M) 30% (4.8 vs 3.7) Subscription (M) 24% (6.2 vs 5.0) Subscription (M) 6% (19.5 vs 1
Slide 33: Digital Banking Income
About Sustainability & Payment Outlook/ UBA Operating Environment Governance Financial Performance Business Guidance Digital Banking Income (N’bn) 65.8% 56.6% 131.7 79.4 50.7 FY 2023 FY 2022 FY 2021 • Our investments in state-of-the-art technology continue to yield expected results, evident in the h
Slide 34: Outlook/Guidance
01 About UBA 02 Operating Environment 03 Sustainability & Governance 04 Financial Performance 05 Payment Business 06 Outlook/Guidance > 07 Appendices
Slide 35: FY 2024 Guidance
About Sustainability & Payment Outlook/ UBA Operating Environment Governance Financial Performance Business Guidance FY 2024 Guidance FY 2023 FY 2023 FY 2024 Guidance Achieved Guidance Deposit Growth 45% 93% 20% Loan Growth 40% 61% 20% Cost of Risk 4% 3.1% 3.8% Non-Performing Loan Ratio 3.5% 5.9% 4.
Slide 36: Thank You
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United Bank for Africa — FY2023 Earnings Presentation on 6ix