United Bank Limited · PSX:UBL
United Bank — Non-Deal Roadshow (May 2014)
29 slides from United Bank's roadshow presentation, May 2014
Slide 1: Investor Presentation May 2014
Investor Presentation May 2014 May 2014 These materials may not be used or relied upon for any purpose other than as specifically contemplated by a written agreement with Credit Suisse AG or its Affiliates (hereafter “Credit Suisse”). UBL | Investor Relations
Slide 2: Overview of the UBL Group – one of the largest and most profitable Banks in Pakistan
Overview of the UBL Group – one of the largest and most profitable Banks in Pakistan Subsidiaries and affiliates include Over 50 years of successful 2nd largest branch Asset Management and Insurance operational history network in Pakistan services, majority stake in with 1,281 branches Khushhali Ban
Slide 3: Financial highlights
Financial highlights Strong PBT performance Return on equity (PKR in billions) 28 29 23.4% 22.6% 24 20.7% 21.3% 19.7% 18 18.0% 17.7% 14 14 (1) 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 2014 Our shareholders – March 31, 2014 Consolidated financials – 2013 Others % Growth over 18.8%
Slide 4: Highly experienced senior management team
Highly experienced senior management team On 18 April 2014, Mr. Atif R Bokhari resigned from his position of President & CEO. He will continue as CEO until 31 May 2014 On 8 May 2014, Mr. Wajahat Husain was appointed as the new President & CEO of UBL effective 1 June 2014 − Mr. Wajahat Husain, cu
Slide 5: Our core business segments
Our core business segments Premier retail bank – The cornerstone of our banking operations Deposit base with deep penetration across banking flows within the economy Product offerings target varied customer segments with continuous innovation Consumer loans – Full product suite in the market o
Slide 6: UBL innovation and awards
UBL innovation and awards UBL “Firsts” – Initiatives to stay ahead of the market Market recognition and awards First Commercial Bank in Pakistan to launch Branchless Banking 2012 & 2013 Bank of the Year in Pakistan Award, awarded by The (UBL OMNI) Banker Magazine, an affiliate of the Financial T
Slide 7: Looking ahead
Looking ahead..… 1 Continue to invest in domestic network to maintain pace with competitors 160 branches opened in the last three years, including within the fast growing Islamic banking segment Optimizing the expanded network to accelerate low cost deposit growth remains a priority Future exp
Slide 8: Our international outreach – serving in 4 continents under the single UBL brand
Our international outreach – serving in 4 continents under the single “UBL” brand SUBSIDIARIES 4 PAKISTAN BRANCHES OVERSEAS BRANCHES 1,281 18 ASSOCIATED COMPANIES 3 Asset mix by region | FY2013 Pakistan Operation 69.0% International operations 31.0% Middle East 23.4% Europe 7.0% United States of Ame
Slide 9: Growth momentum within our distribution network and client acquisition
Growth momentum within our distribution network and client acquisition in the last couple of years No. of deposit accounts (million) No. of branches – domestic 3.81 3.95 1,278 1,283 1,281 3.28 3.31 1,218 Dec '11 Dec '12 Dec '13 Mar '14 Dec '11 Dec '12 Dec '13 Mar '14 No. of ATMs No. of Omni agents 7
Slide 10: UBL's share outperforms Pakistan bank peers based on strong growth
UBL’s share outperforms Pakistan bank peers based on strong growth UBL share price performance vs. peers(1) ‐ growth Consolidated book value per share 200 111 110 180 +107.2% 101 +106.1% 86 160 +86.9% 75 140 67 91 90 +63.6% 82 +59.1% 49 120 +35.1% 70 60 61 100 49 80 60 1‐Jan‐13 1‐Apr‐13 1‐Jul‐13 1‐O
Slide 11: Appendix – Additional materials on UBL
Appendix – Additional materials on UBL 10
Slide 12: Deposit led balance sheet growth, strong capital for expansion
Deposit led balance sheet growth, strong capital for expansion Deepening our deposit base Managing loan book (net advances) (PKR in billions) (PKR in billions) 905 415 406 890 378 386 753 362 635 342 341 568 492 504 2008 2009 2010 2011 2012 2013 Mar '14 2008 2009 2010 2011 2012 2013 Mar '14 Total as
Slide 13: Retail Banking
Retail Banking Portfolio Products and distribution Branch Banking Deposits Consumer Finance Customers Auto, Mortgage, Cashline ATMs, Call Credit Card, BTF Priority Banking HNWI Centre, IVR, Signature Omni Channels Branches Social Media. Lounges Agents Internet Banking FCY deposits General Banking Li
Slide 14: Strategy is to grow core domestic deposits while maintaining low cost of funds
Strategy is to grow core domestic deposits while maintaining low cost of funds Cost of deposits Deposits – standalone bank Dec '11 Dec '12 Dec '13 Mar '14 6.0% Bank Rs Bn PE COF % PE COF % PE COF % PE COF % 5.0% 4.5% Domestic deposits 495 4.8% 540 4.6% 619 4.1% 651 4.5% 4.0% 4.1% International depos
Slide 15: Retail bank product suite
Retail bank product suite We provide a complete set of banking solutions where “You Come First” Source: Company information. 14
Slide 16: UBL Omni – the success story continues
UBL Omni – the success story continues . . . UBL Omni Winner of GSMA International Mobile Award 2012 for “Best Commercial Launch: April 2010 Use of Mobile in Humanitarian Initiatives” and recipient of No of Accounts: 1.44mn+ No of Agents: 14,500+ Financial Insights Innovation Award 2012, Singapore
Slide 17: Asset strategy remains conservative with growth targeted in high quality names
Asset strategy remains conservative with growth targeted in high quality names Credit concentration by sector – as at March ‘14 Consolidated Portfolio size: PKR 452 billion Portfolio diversification The strategy is to have a diversified spectrum of assets Sugar Telecom Prod. & 2% 1% across multiple
Slide 18: Advances by business
Advances by business Net advances % growth % growth % growth (PKR in billions) Dec '12 Dec '13 Mar '14 Dec '12 Dec '13 Mar '14 Corporate bank 173.9 182.1 197.2 12.1% 4.7% 8.3% Commercial 18.2 19.4 16.3 (3.2%) 6.5% (16.1%) Commodity advances 48.7 39.9 25.0 6.6% (18.1%) (37.5%) Consumer 7.9 7.7 8.0 (1
Slide 19: Our focus remains on improving asset quality along with being well reserved
Our focus remains on improving asset quality along with being well reserved (PKR in billions) NPLs Coverage Asset quality Dec '10 Dec '11 Dec '12 Dec '13 Mar '14 Dec '10 Dec '11 Dec '12 Dec '13 Mar '14 Domestic ex‐ 43.0 44.5 45.2 41.5 40.9 70.3% 79.9% 83.7% 91.1% 91.7% sovereign Sovereign – – 2.7 1.
Slide 20: Appendix – Key financial data
Appendix – Key financial data 19
Slide 21: Financial ratios – consolidated
Financial ratios – consolidated Q1'14 FY'13 FY'12 FY'11 Advances / Deposits 47.9% 50.0% 55.0% 57.5% Asset Quality excl. Sovereign NPLs 11.5% 11.6% 12.9% 13.4% Coverage 83.3% 81.1% 74.6% 78.1% NCL Ratio 0.3% 0.4% 1.1% 2.0% Yield on Performing Advances (standalone) 9.1% 9.7% 11.8% 13.1% Cost of Deposi
Slide 22: Balance sheet – consolidated
Balance sheet – consolidated PKR in billions US$ in millions 1Q'14 FY'13 FY'12 1Q'14 FY'13 FY'12 Cash and balances with treasury banks 85 90 95 867 909 963 Balances with other banks 23 33 22 235 331 223 Lendings to financial institutions 17 30 23 170 303 232 Investments 511 459 381 5,190 4,657 3,869
Slide 23: An overview of UBL results – income statement consolidated
An overview of UBL results – income statement consolidated PKR in billions US$ in millions FY'13 FY'12 Var % FY'13 FY'12 Var % Net interest income 39.5 39.6 (0.3%) 401.0 402.1 (0.3%) Non interest income 20.7 19.6 5.7% 210.1 198.8 5.7% Gross revenue 60.2 59.2 1.7% 611.1 601.0 1.7% Operating expenses
Slide 24: An overview of UBL results – income statement consolidated
An overview of UBL results – income statement consolidated PKR in billions US$ in millions Q1'14 Q1'13 Var % Q1'14 Q1'13 Var % Net interest income 10.3 9.1 12.2% 104.1 92.8 12.2% Non interest income 5.8 5.1 12.9% 58.4 51.7 12.9% Gross revenue 16.0 14.2 12.4% 162.5 144.5 12.4% Operating expenses (7.5
Slide 25: Non interest income – consolidated
Non interest income – consolidated PKR in millions US$ in millions FY'13 FY'12 Var % FY'13 FY'12 Var % Fee & commission income 11,443.6 9,455.1 21.0% 116.1 96.0 21.0% Income from dealing in foreign currencies 2,211.8 1,946.2 13.6% 22.4 19.8 13.6% Dividend income 1,611.9 539.6 198.7% 16.4 5.5 198.7%
Slide 26: Non interest income – consolidated
Non interest income – consolidated PKR in millions US$ in millions Q1'14 Q1'13 Var % Q1'14 Q1'13 Var % Fee & commission income 3,112.1 2,653.6 17.3% 31.6 26.9 17.3% Income from dealing in foreign currencies 669.6 416.0 60.9% 6.8 4.2 60.9% Dividend income 655.4 542.9 20.7% 6.7 5.5 20.7% Income from d
Slide 27: Administrative expenses – consolidated
Administrative expenses – consolidated PKR in millions US$ in millions FY'13 FY'12 Var % FY'13 FY'12 Var % Personnel cost 13,796.3 12,665.1 8.9% 140.0 128.5 8.9% Premises cost 3,733.8 3,175.2 17.6% 37.9 32.2 17.6% Depreciation and amortization 1,290.1 1,206.3 6.9% 13.1 12.2 6.9% Advertisement 485.8
Slide 28: Administrative expenses – consolidated
Administrative expenses – consolidated PKR in millions US$ in millions Q1'14 Q1'13 Var % Q1'14 Q1'13 Var % Personnel cost 4,107.8 3,575.7 14.9% 41.7 36.3 14.9% Premises cost 912.5 852.0 7.1% 9.3 8.6 7.1% Depreciation and amortization 549.3 537.8 2.1% 5.6 5.5 2.1% Advertisement 130.6 112.7 15.9% 1.3
Slide 29: Important information
Important information Important Information By attending the meeting where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: The information in this presentation has been prepared by United Bank Limited (“UBL”) for use in present