United Bank Limited · PSX:UBL
United Bank — Q3 2007 Earnings Presentation
26 slides from United Bank's earnings presentation, Oct 30, 2007
Slide 1: Performance Review (Consolidated) 3Q2007
United Bank Limited Performance Review (Consolidated) 3Q2007 October 30, 2007 10/29/2007 10:20:33 AM 1
Slide 2: Key Highlights
Key Highlights • During the current quarter, the bank has changed the method of computation of provisions in order to comply with the amendments made by the State Bank of Pakistan; • Due to the withdrawal of collateral while calculating the provisioning requirements against non performing loans, the
Slide 3: Summary
Summary Sep 2007 Dec 2006 % Change Assets (PKR mm) 498,680 435,993 +14% Advances (PKR mm) 288,781 254,670 +13% Market Share-Advances 9.6% 9.2% - Deposits (PKR mm) 391,803 343,805 +14% Market Share-Deposits 8.8% 9.1% - Branches 1,072 1,059 - ATMs 307 210 +46% ROAA 1 2.5% 2.4% - ROAE 1 32% 34% - Credi
Slide 4: Share Info
Share Info Sep 2007 Dec 2006 EPS (Rs/share - annualized)1 11.0 11.8 BV/share (Rs/share) 47.8 41.0 Price* - (Rs /share) 192.0 153.2* P/E 17.5x 13.0x P/BV 4.0x 3.7x # of shares 809M 809M * Share price (Dec'06) after announcement of results S e pte m be r pric e a t 22 Oc to be r'07 De c pric e a t 19
Slide 5: Income Statement (PKR bn)
Income Statement (PKR bn) QTD QTD % 9 month 9 month % Full year Sep'07 Jun'07 Change Sep'07 Sep'06 Change Dec'06 Net Interest Income 6.36 6.23 +2% 18.57 15.60 +19% 21.37 Non Interest Income 2.40 2.27 +6% 6.86 4.84 +42% 7.26 Operating Revenue 8.76 8.49 +3% 25.44 20.44 +24% 28.63 Operating Expense (3.
Slide 6: Balance Sheet (PKR bn)
Balance Sheet (PKR bn) % % Sep'07 Jun'07 Sep'07 Dec'06 Change Change Cash and bal.with tr.banks 39.1 47.6 -18% 39.1 49.0 -20% Investments 114.5 105.1 +9% 114.5 65.9 +74% Advances 288.8 287.5 +0% 288.8 254.7 +13% Total Assets 498.7 514.6 -3% 498.7 436.0 +14% Deposits 391.8 414.1 -5% 391.8 343.8 +14%
Slide 7: Financial Ratios
Financial Ratios QTD QTD 9 month 9 month Full year Sep'07 Jun'07 Sep'07 Sep'06 Dec'06 Loan/Deposits 73.7% 69.4% 73.7% 76.0% 74.1% ROAE 16.9% 29.5% 27.3% 34.3% 33.7% ROAA 1.3% 2.2% 2.1% 2.5% 2.4% Cost/Income Ratio 61.6% 45.0% 47.8% 43.3% 45.1% Gross NPLs/Gross Advances1 7.9% 6.1% 7.9% 7.1% 6.8% Net N
Slide 8: Deposits Structure
Deposits Structure Deposit Mix - Bank Fixed Deposits (1) Other Deposits – PKR 11bn Contribution 3% Cost 0.1% 72 72 Fixed Deposits – PKR 127bn Contribution 32% Current Deposits–PKR 103bn Cost 7.5% 59 Contribution 26% Cost 0% 49 44 28 26 13 6 Saving Deposits – PKR 151bn Contribution 38% 0 Cost 2.5% To
Slide 9: Advances by Business
Advances by Business Advances by Business 2005 2006 Sep-07 140 120 116 104 100 94 80 Rs B 59 60 55 51 51 49 44 39 40 28 27 20 13 14 10 - Corporat e Bank Commercial Bank Consumer Bank Overseas Ot hers (incl subsidiaries) % Sep'07 Dec'06 Change Corporate Bank 116.0 104.1 +11.4% Commercial Bank 51.3 54
Slide 10: Consumer Advances by Product
Consumer Advances by Product 2005 2006 Sep-07 Yield Sep 07 24 30% 24 21 25% 25% 20 19% 20% 16 15 20% 15% 13% 13% 15% 12 8 10% 5 6 5 6 5 5 5 5 4 3 4 4 4 3 2 5% 1 0 0% Drive Address Credit Card Cashline Businessline Money % Loan yield- Sep'07 Dec'06 Change Sep'07 Drive 23.6 20.7 +14.2% 12.6% Address 6
Slide 11: Consumer Drivers
Consumer Drivers Advances (PKR mm) # of Accounts Sep-07 Dec-06 % Change Sep-07 Dec-06 % Change Drive 23,596 20,660 +14% 65,007 52,887 +23% Credit Card 5,628 5,011 +12% 164,579 157,725 +4% Businessline 5,106 4,992 +2% 1,403 1,233 +14% Address 5,952 5,238 +14% 1,277 1,253 +2% Money 3,611 3,397 +6% 32,
Slide 12: Spread Analysis (bank level)
Spread Analysis (bank level) Full Year 2006 YTD September 2006 YTD September 2007 Interest Interest Interest Average incom e / Avg.Yield Average incom e / Avg.Yield Average incom e / Avg.Yield Balances (expense) /Cost Balances (expense) /Cost Balances (expense) /Cost Interest Earning Assets Performi
Slide 13: Concentration of Advances
Concentration of Advances Chemical & Automobile Pharma 1.5% 1.4% Staff loans , 1.5% Financial, 1.3% Fertilizer , 1.5% Engineering, 1.7% Airline/ Aviation, 1.7% Others, 25.3% Food industries, 1.9% Contractors, 2.2% Agribusiness, 2.4% Sugar, 2.5% Cement, 2.5% Wholesale traders, 3.6% Production and tra
Slide 14: Non Interest Income
Non Interest Income QTD QTD % 9 month 9 month % Full year Sep'07 Jun'07 Change Sep'07 Sep'06 Change Dec'06 Commission on consumer loan 376 380 -1% 1,125 863 +30% 1,181 Minimum balance charges 112 147 -23% 371 398 -7% 559 Commission on trade 263 238 +11% 758 605 +25% 847 Commission on remittances/uni
Slide 15: Quarterly Trend Analysis
Quarterly Trend Analysis Bank Level 10/29/2007 10:20:33 AM 15
Slide 16: Profit Before Tax
Profit Before Tax 5.2 4 .6 4 .4 4.5 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 3.0 Provision–PR amendment FSV / others ( Rs 1.975M) 2.2 2 .0 1.5 Sep 05 Dec 05 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 10/29/2007 10:20:33 AM 16
Slide 17: Profit after Tax
Profit after Tax 3.5 3 .1 3.0 2 .6 2 .6 2 .4 2 .3 2 .2 2.4 2 .2 Rs B Prior period tax adjustment (Rs 402M) - one-off expense 1.7 1.9 Provision–PR amendment 1.4 FSV / others 1.3 0.8 Sep 05 Dec 05 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 10/29/2007 10:20:33 AM 17
Slide 18: Deposits
Deposits 435 403 381 395 3 52 335 Rs B 355 326 308 315 289 289 2 79 275 235 Sep 05 Dec 05 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 10/29/2007 10:20:33 AM 18
Slide 19: Advances
Advances 310 280 280 278 2 52 247 236 235 246 Rs B 205 208 214 173 182 150 Sep 05 Dec 05 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 10/29/2007 10:20:33 AM 19
Slide 20: Net Interest Income
Net Interest Income 7.0 6 .2 6 .1 5 .8 5 .6 5 .6 6.0 5 .2 5.0 4 .5 Rs B 4 .3 3 .8 4.0 3.0 2.0 Sep 05 Dec 05 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 10/29/2007 10:20:33 AM 20
Slide 21: Net Provision
Net Provision 3.5 3 .0 2.8 2.1 Rs B Provision–PR amendment FSV / others ( Rs 1.975M) 1.5 0 .9 0 .5 0 .5 0 .5 0 .4 0 .4 0.8 0 .4 0 .4 0.1 Sep 05 Dec 05 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 10/29/2007 10:20:33 AM 21
Slide 22: Non-Funded Income
Non-Funded Income 2.7 2 .3 2 .2 2 .2 2.3 2 .1 1. 6 1.7 1.9 Rs B 1.6 1.5 1.4 1.4 1.0 0.6 Sep 05 Dec 05 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 10/29/2007 10:20:33 AM 22
Slide 23: Total Revenue
Total Revenue 9.0 7.8 7.4 7.5 7.8 6 .3 6 .1 Rs B 6.6 5.7 Provision–PR amendment 5.4 FSV / others ( Rs 1.975M) 5.4 5.4 4 .9 4.2 3.0 Sep 05 Dec 05 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 10/29/2007 10:20:33 AM 23
Slide 24: Administrative Expenses
Administrative Expenses 3.8 3 .4 3 .4 3 .4 3.3 2 .9 2 .7 2 .7 Reversals in Mar’07 2.9 Rs B of accruals in Dec’06 2 .3 2 .2 2.4 2 .0 2.0 1.5 Sep 05 Dec 05 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 10/29/2007 10:20:33 AM 24
Slide 25: The information contained herein reflects our latest business statement as at September 30, 2007
The information contained herein reflects our latest business statement as at September 30, 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 variation
Slide 26: Thank You
Thank You 10/29/2007 10:20:33 AM 26