United Bank For Africa Plc · NSENG:UBA
United Bank For Africa — Q1 2016 Earnings Presentation
15 slides from United Bank For Africa's earnings presentation, April 2016
Slide 1: Unaudited 2016 First Quarter Results Presentation
Unaudited 2016 First Quarter Results Presentation April 2016
Slide 2: Disclaimer and Note of Caution
Disclaimer and Note of Caution 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
Slide 3: Presentation Outline
Presentation Outline Evolution of UBA Macroeconomic Update Regulatory environment 2016 First Quarter Performance Review 2016 FY Performance Guidance 2016 First Quarter Results Presentation ::: April 2016 3
Slide 4: Evolution of UBA Plc
Evolution of UBA Plc Acquired majority interest in two banks based in B/Faso and Benin Successfully raised N20bn debt capital UBA merged with Standard Commenced operations in Won Financial Times’ Successfully Trust Bank some African countries Bankers’ Awards for completed French & British Tier 1 Sta
Slide 5: UBA Profile at a Glance
UBA Profile at a Glance A truly Pan-African Bank, with operations across 19 key un(der)banked African markets A unique and scalable platform to take full advantage of growth opportunities in all sectors of the African economy o Third largest bank in Nigeria (the biggest economy), with an estimated c
Slide 6: Macroeconomic Update
Macroeconomic Update Economic Growth: Commodity prices rebound due to supply cut 23% CrudeYTD oil Price prices (USD) Rally o Africa’s output growth is believed to have bottomed out in 2015 (3.5% GDP growth), with a positive 17% outlook of 4% growth in 2016, as commodity prices gradually recovers and
Slide 7: Policy and regulatory environment
Policy and regulatory environment Nigeria Implications o MPR increased by 100bps to 12% and CRR increased to 22.5% o A shift in MPC’s stance on interest rate environment aimed at stemming inflationary and exchange rate pressures. Yields are up 150bps YTD. o Aimed at building capital buffers. The imp
Slide 8: 2016 First Quarter Results Snapshot
2016 First Quarter Results Snapshot 31-Mar-16 31-Mar-15 % Change Gross Earnings 74,134 83,098 -10.8% COMPREHENSIVE Net Interest Income 34,421 30,783 +11.8% INCOME & PROFIT Net Operating Income 50,235 50,905 -1.3% TREND (N’million) Operating Expenses (32,143) (32,530) -1.2% Profit Before Tax 18,083 1
Slide 9: 2016 First Quarter Results Snapshot
2016 First Quarter Results Snapshot Gross earnings trend (N’billion) Gross earnings by source (%) 83 74 68 27% 29% 26% 73% 71% 74% 2014 Q1 2015 Q1 2016 Q1 2014 Q1 2015 Q1 2016 Q1 Net Operating Income (N’billion) 51 50 45 The modest decline in the Group’s revenue reflects the relatively weak liquidit
Slide 10: 2016 First Quarter Results Snapshot
2016 First Quarter Results Snapshot Profit Before Tax (N’billion) Return on Average Equity (%) 18 18 25% 22% 20% 14 2014 Q1 2015 Q1 2016 Q1 2014 Q1 2015 Q1 2016 Q1 Return on Average Asset (%) 2.50% The Group maintained its strong profitability, defying 2.40% macroeconomic pressures in its core marke
Slide 11: 2016 First Quarter Results Snapshot
2016 First Quarter Results Snapshot Cost of Funds (%) Cost-to-income Ratio (%) 4.0% 69% 64% 65% 3.6% 3.5% 2014 Q1 2015 Q1 2016 Q1 2014 Q1 2015 Q1 2016 Q1 Net Interest Margin (%) Given notable improvement in funding mix and re-priced liabilities, cost of funds improved 50bps to 3.5% in the first quar
Slide 12: 2016 First Quarter Results Snapshot
2016 First Quarter Results Snapshot Loan Book (N’trillion) Customer Deposit (N’trillion) 1.14 2.30 1.04 1.05 2.08 2.01 2015 Q1 2015 FY 2016 Q1 2015 Q1 2015 FY 2016 Q1 NPL Ratio (%) Whilst maintaining our low-to-moderate risk appetite and 1.7% 1.7% cautious stance, we stabilized our loan book, growin
Slide 13: 2016 First Quarter Results Snapshot
2016 First Quarter Results Snapshot Total Asset (N’trn) Funding Structure 8% 10% 2.96 2.75 2.73 12% 13% Others Borrowing Equity 78% 77% Deposits 2015 FY 2016 Q1 2015 Q1 2015 FY 2016 Q1 Composition of Total Asset Portfolio Other Given macroeconomic uncertainties in some of our Assets, PPE, markets in
Slide 14: 2016 Financial Year Earnings Guidance
2016 Financial Year Earnings Guidance Headlines 2015FY Actual 2016FY Guidance Net Interest Margin 6.3% >6.3% Cost-to-Income Ratio 66.7% ≈65.0% Cost of Risk 0.5% ≈1% Non-Performing Loan Ratio 1.7% <2.5 % Net Customer Loan Growth -3.3% 10% - 15% Customer Deposit Growth -4.1% 10% - 15% Return on Averag
Slide 15: Questions & Answers
Conclusion Questions & Answers 2016 First Quarter Results Presentation ::: April 2016 15
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