Slide 1: United Bank Limited Performance Review (Consolidated) Annual 2007
United Bank Limited Performance Review (Consolidated) Annual 2007 February 14, 2008
Slide 2: Key Highlights
Key Highlights Profitability • PBT down 5% y-o-y at Rs.13.8B • Profitability impacted due a change in Prudential Regulations by State Bank of Pakistan due to which benefit of collateral (FSV) was withdrawal resulting in incremental provisioning charge of Rs. 3.8B • Introduction of Early Retirement S
Slide 3: Key Developments
Key Developments • Business process restructuring initiative launched • 170 branches re-branded on retail banking concept; increased focus on customer service and cross selling • Upgrade in credit rating from AA to AA+ by JCR-VIS Credit Rating Company Ltd. • Awarded “Best Domestic Bank in Pakistan 2
Slide 4: Summary
Summary Dec 2007 Dec 2006 Change Assets (PKR bn) 547 436 +25% Advances (PKR bn) 308 255 +21% Market Share-Adv- DOM 9.4% 9.2% Deposits (PKR bn) 412 344 +20% Market Share-Deposits- DOM 9.1% 9.1% Branches 1,095 1,059 36 ATMs 326 210 116 ROAA 1 2.4% 2.4% ROAE 1 30% 34% Credit Rating (JCR-VIS) AA+/A-1+ A
Slide 5: Share Info
Share Info Dec 2007 Dec 2006 EPS (Rs/share) 11.1 11.8 BV/share (Rs/share) 59.2 41.0 Price* - (Rs /share) 178.0 153.2* P/E 16.0x 13.0x P/BV 3.0x 3.7x # of shares 809M 809M * Share price (Dec'06) after announcement of results De c '07 pric e a t 08 F e b'08 De c '06 pric e a t 19 F e b'07 - a djus te
Slide 6: Income Statement (PKR bn)
Income Statement (PKR bn) QTD QTD % FY FY % Dec'07 Sep'07 change Dec'07 Dec'06 change Net Interest Income 6.23 6.36 -2% 24.80 21.37 +16% Non Interest Income 3.07 2.40 +28% 9.93 7.26 +37% Operating Revenue 9.29 8.76 +6% 34.73 28.63 +21% Operating Expense (3.66) (3.59) +2% (13.93) (11.66) +19% Pre-Pro
Slide 7: Balance Sheet (PKR bn)
Balance Sheet (PKR bn) % % Dec'07 Sep'07 Dec'07 Dec'06 change change Cash & bank balances 68.6 59.8 +15% 68.6 68.4 +0% Investments 114.0 114.5 -0% 114.0 65.7 +73% Advances 308.3 288.8 +7% 308.3 254.7 +21% Fixed assets 19.0 7.3 +163% 19.0 6.4 +199% Total Assets 546.8 498.7 +10% 546.8 435.8 +25% Depos
Slide 8: Financial Ratios
Financial Ratios QTD QTD FY FY Dec'07 Sep'07 Dec'07 Dec'06 Loan/Deposits 74.8% 73.7% 74.8% 74.1% ROAE 17.2% 16.9% 22.8% 33.7% ROAA 1.4% 1.3% 1.9% 2.4% Cost/Income Ratio 62.3% 61.6% 50.9% 44.6% Gross NPLs/Gross Advances1 6.9% 7.9% 6.9% 6.2% Net NPLs/Gross Advances2 1.9% 3.2% 1.9% 1.6% Coverage Ratio
Slide 9: Deposit Structure
Deposit Structure Deposit Mix - Bank (Parent Company) Fixed Deposits (1) 80 Other Deposits – PKR 8bn Contribution 2% 72 Cost 0.4% Fixed Deposits – PKR 127bn Contribution 32% Cost 7.4% 59 Current Deposits–PKR 114bn Contribution 28% Cost 0% 47 44 28 26 13 6 Saving Deposits – PKR 153bn 0 Contribution 3
Slide 10: Advances by Business
Advances by Business Advances by Business 2005 2006 2007 140 131 120 104 100 94 80 Rs B 64 60 55 51 49 47 44 39 40 28 27 20 17 13 10 - Corporat e B ank Commercial B ank Consumer B ank Overseas Ot hers (incl subsidiaries) % Dec'07 Dec'06 Change Yield 07 Corporate Bank 131.1 104.1 +26% 10.4% Commercia
Slide 11: Consumer Advances by Product
Consumer Advances by Product 2005 2006 2007 Yield 2007 23 30% 24 21 25% 25% 20 19% 20% 16 15 20% 14% 13% 13% 15% 12 8 10% 5 6 5 6 4 5 5 5 4 3 3 3 3 4 2 5% 1 0 0% Drive Address Credit Card Cashline Businessline Money % Dec'07 Dec'06 Change Drive 23.2 20.7 +12% Address 5.6 5.2 +6% Credit Card 5.6 5.0
Slide 12: Consumer Drivers
Consumer Drivers Advances (PKR mm) # of Accounts Dec-07 Dec-06 % Change Dec-07 Dec-06 % Change Drive 23,159 20,660 +12% 66,149 52,887 +25% Credit Card 5,572 5,011 +11% 167,831 157,725 +6% Businessline 4,842 4,992 -3% 1,401 1,233 +14% Address 5,555 5,238 +6% 1,244 1,253 -1% Money 3,201 3,397 -6% 31,9
Slide 13: Spread Analysis (bank level)
Spread Analysis (bank level) Full Year 2006 Full Year 2007 Interest Interest Average incom e / Avg.Yield Average incom e / Avg.Yield Balances (expense) /Cost Balances (expense) /Cost Interest Earning Assets Performing Advances 221,870 24,511 11.0% 266,336 29,663 11.1% Investments 60,396 5,181 8.6% 9
Slide 14: Concentration of Advances
Concentration of Advances Chemical and P harmaceuticals, Chemical & A uto mo bile 1.3% P harma 1.5% 1.4% Fertilizer , 1.5% Engineering, 0.7% A irline/ A viatio n, 1.3% Others, 21.1% Fo o d industries, 1.5% Co ntracto rs, 1.2% A gribusiness, 4.4% Sugar, 2.5% Cement, 2.5% Who lesale traders, 4.8% Text
Slide 15: Non Interest Income (PKR mm)
Non Interest Income (PKR mm) QTD QTD % FY FY % Dec'07 Sep'07 Change Dec'07 Dec'06 Change Commission on consumer loan 353 376 -6% 1,478 1,181 +25% Minimum balance charges 147 112 +31% 518 559 -7% Commission on trade 263 263 +0% 1,022 847 +21% Commission on remittances/uniremote 117 113 +4% 434 395 +1
Slide 16: Operating Expenses (PKR mm)
Operating Expenses (PKR mm) QTD QTD % FY FY % Dec'07 Sep'07 Change Dec'07 Dec'06 Change Personnel cost* 1,476 1,582 -7% 6,198 5,677 +9% Premises cost 457 400 +14% 1,521 1,073 +42% Outsourced serv.charges incl. sales comm 323 331 -2% 1,388 1,036 +34% Advertisement and publicity 164 190 -14% 590 461 +
Slide 17: E-Banking
E-Banking E-Banking Dec-07 Dec-06 % Change # of ATMs 326 210 +55% # of Transactions (M) 9.5 5.9 +60% Average transactions per day 26k 16k +63% Total transaction amount (Rs B) 48 29 +65% Average transaction size (Rs 000) 5.0 4.9 +3% Average monthly transactions per ATM (Rs M) 12 11 +6% Internet Banki
Slide 18: Financial Ratios
Financial Ratios Yearly QTD ( A nnua li z e d ) DuPont 2005 2006 2007 Sep-07 De c-07 1 Net Interest Yield 4.5% 5.4% 5.0% 5.0% 4.8% 2 Net Interest Margin 5.4% 6.4% 6.1% 5.8% 5.6% 3 Non Interest Yield 1.7% 1.8% 2.0% 1.9% 2.3% Operating Exp. / Assets 2.7% 2.9% 2.8% 2.8% 2.8% 4 Cost Income Ratio 47.3% 4
Slide 19: Financial Ratios
Financial Ratios Yearly QTD ( A nnua liz e d ) Asset Quality 2005 2006 2007 S e p-0 7 De c-07 Gross NPLs / Gross Loan 7.7% 6.2% 6.9% 7.9% 6.9% Net NPLs / Gross Loan 1.7% 1.6% 1.9% 3.2% 1.9% Coverage Ratio 84.8% 82.6% 77.9% 66.0% 77.9% Prov. held / Gross loan 6.0% 4.6% 4.9% 4.7% 4.9% 1 Prov. Exp. / G
Slide 20: Financial Ratios
Financial Ratios Yearly QTD ( A nnua liz e d ) Other Metrics 2005 2006 2007 S e p-0 7 De c-07 Capital Adequacy Ratio 10.7% 12.2% 12.4% 12.1% 12.4% Tier-I CAR 7.7% 8.9% 8.8% 9.3% 8.8% Loan / Deposits 70.9% 74.1% 74.8% 73.7% 74.8% Loan / Assets 58.7% 58.4% 56.4% 57.9% 56.4% RWA / Assets 66.8% 72.6% 73
Slide 21: Pattern of Shareholding
Pattern of Shareholding % of # of shares ordinary % of voting Shareholders (000) shares shares Bestw ay Group 206,391 25.5% 31.7% Abu Dhabi Group 206,391 25.5% 31.7% State Bank of Pakistan 117,262 14.5% 18.0% Privatization Commission of Pakistan 40,470 5.0% 6.2% General Public & Others 78,449 9.7% 1
Slide 22: Quarterly Trend Analysis
Quarterly Trend Analysis Bank Level 15-Feb-2008 12:43:11 22
Slide 23: Profit Before Tax
Profit Before Tax 5.3 4 .6 4 .4 Before FSV/ERS 4.5 4 .1 4 .1 3 .8 3 .5 3 .6 Reversal in Mar’07 3 .4 of accruals in Dec’06 3.7 Rs B 3 .0 2.9 Provision–PR amendment 2 .1 1.9 FSV / others ( Rs 1.975M) 2.1 Provision–FSV ( Rs 1,829M) ERS (Rs 307M) 1.3 Dec 05 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Se
Slide 24: Profit after Tax
Profit after Tax 3.5 3 .1 3.0 2 .6 2 .4 2 .6 2 .3 2 .2 Prior period tax adj. 2.4 2 .2 Rs B (Rs 402M) - one-off exp. 1.9 1.5 1.3 1.3 0.8 Dec 05 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 15-Feb-2008 12:43:11 24
Slide 25: Deposits
Deposits 435 403 402 381 395 3 52 335 Rs B 355 326 308 315 289 289 275 235 Dec 05 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 15-Feb-2008 12:43:11 25
Slide 26: Advances
Advances 330 299 298 280 280 266 2 52 Rs B 247 236 235 234 205 208 202 170 Dec 05 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 15-Feb-2008 12:43:11 26
Slide 27: Net Interest Income
Net Interest Income 7.0 6 .1 6 .2 6 .0 5 .8 6.2 5 .6 5 .6 5 .2 5.4 Rs B 4 .5 4 .3 4.6 3.8 3.0 Dec 05 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 15-Feb-2008 12:43:11 27
Slide 28: Net Provision
Net Provision 3.5 2 .9 2 .8 2.8 Provision–FSV Rs 1.829M 2.1 Rs B Provision–PR amendment FSV / others ( Rs 1.975M) 1.5 0 .9 0 .4 0 .4 0 .5 0 .4 0 .5 0 .5 0.8 0.1 Dec 05 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 15-Feb-2008 12:43:11 28
Slide 29: Non-Funded Income
Non-Funded Income 3.0 2 .6 2.6 2 .3 2 .2 2 .2 2 .1 2.2 Rs B 1. 6 1.7 1.8 1. 6 1.4 1.4 1.0 Dec 05 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 15-Feb-2008 12:43:11 29
Slide 30: Total Revenue
Total Revenue 9.0 7.8 7.4 7.5 7.8 6 .3 6 .1 Rs B 6.6 5.7 5.4 5.5 5.8 5.4 4.2 3.0 Dec 05 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 15-Feb-2008 12:43:11 30
Slide 31: Administrative Expenses
Administrative Expenses 4.2 3 .8 3.8 3 .4 3 .4 3 .4 ERS (Rs 307M) 3.3 Rs B 2 .9 2 .7 2 .7 Reversals in Mar’07 2.9 of accruals in Dec’06 2 .3 2 .2 2.4 2.0 Dec 05 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 15-Feb-2008 12:43:11 31
Slide 32: The information contained herein reflects our latest business statement as at December 31, 2007
The information contained herein reflects our latest business statement as at December 31, 2007 Except the historical information contained herein, statements in this Release which contain words or phrases such as ‘will’, ‘would’, ‘indicating’ expected to’ etc., and similar expressions or variations
Slide 33: Thank You
Thank You 15-Feb-2008 12:43:11 33