Union Bank Of Colombo Plc · CSELK:UBC.N0000
Union Bank Of Colombo — 9M15 Earnings Presentation
23 slides from Union Bank Of Colombo's earnings presentation, 2015
Slide 1: Investor Presentation 9M15 Results
INVESTOR PRESENTATION 9M15 RESULTS 1
Slide 2: The core of our strategy
The core of our strategy To be a key player in the Sri Lankan banking sector by becoming a fully fledged commercial bank 2
Slide 3: Key Company Milestones
Key Company Milestones 1995-2000 2001-2010 2011-2013 2014-2015 Established as the 8th Restructuring of the Listed in the CSE, TPG through its affiliate indigenous Commercial bank through a Highest Culture Finance Holding Bank Sampath Bank led oversubscribed IPO strikes landmark deal consortium with
Slide 4: Union Bank Today
Union Bank TODAY New Shareholder - TPG with 70% ownership Board of directors reconstituted Management strengthened with key industry leaders New business plan with a strategic focus on Corporate, SME and Retail Banking New branch outlook and consumer focused layouts 4
Slide 5: Key Highlights - 3Q15
Key Highlights - 3Q15 Loans & Advances Loans & Advances 49% Growth YTD 49% Growth YTD Q-3 Highest ever since 2011 Q-3 Highest ever since 2011 Interest Income Fee & Other Income Q3 is the highest ever since Jan Q3 is the highest ever since Jan 2014 2014 Customer Acquisitions Personal Loans highest ev
Slide 6: Network Expansion – 3Q15
Network Expansion – 3Q15 1 15 New Branch Refurbishments 13 Offsite ATM 6
Slide 7: Debit Card launched
Debit Card launched Speed to Market award 2015 7
Slide 8: Financial results- 9M15 (Snapshot)
Financial results- 9M15 (Snapshot) Financial Highlights - Bank For the nine months ended September 2015 LKR Mn YoY Growth Net Interest Income 1,538 32% Total Operating income 2,072 33% Operating Cost 1,706 44% Net Profit for the period 117 109% Loans and Advances 38,594 56% Customer Deposits 33,471
Slide 9: Financial Results- 3Q15 (Snapshot)
Financial Results- 3Q15 (Snapshot) Financial Highlights - Bank 3Q results for 2015 LKR Mn 3Q14vs 3Q15 Variance Net Interest Income 498 14% Total Operating income 722 26% Operating Cost 597 42% Net Profit for the period 57 58% Net Profit after tax LKR Mn 60 50 40 30 20 10 0 9
Slide 10: Information of ordinary shares of the bank
Information of ordinary shares of the bank Share Price Performance (LKR) Top 10 shareholders LKR Name of Shareholder Structure 28 30.09.2015 26 Culture Finance Holdings (An affiliate of TPG) 70.00% 24 Vista Knowledge Pte Ltd 5.90% 22 Associated Electrical Corporation Ltd 2.70% 20 Mr.A.I.Lovell 2.10%
Slide 11: Net Interest Income
Net Interest Income Interest Income Interest Expense LKR Mn LKR Mn 1100 800 700 1050 600 1000 500 400 950 300 900 200 100 850 0 Net Interest Income LKR Mn • Interest Income is the highest reported for a quarter 700 since Q12014. This is due to the increased IEA. 600 • However, due to the increasing
Slide 12: Fee and Other Income
Fee and Other Income Fee and Commission Income Net Trading Income LKR Mn LKR Mn 80 80 70 70 60 60 50 50 40 40 30 30 20 20 10 10 0 0 Other Operating Income • 3Q2015 is the best quarter for all these income categories and the trend is also in the right direction LKR Mn 100 • Trade, Guarantee and incre
Slide 13: Operating Income, Expenses and Impairment
Operating Income, Expenses and Impairment Total Operating Income LKR Mn Name Business• Facility Reflecting the effectiveness of asset management to get the 800 best return, total income highlighted consistent growth over Orit Trading Lanka (Pvt) Ltd. Export of Garments last three quarters.Export Fin
Slide 14: Loans and Funding
Loans and Funding Loans Mix – 30th September 2015 Gross Loans and Receivables LKR Mn 6% 40,000 35,000 21% Term Loans O/D 30,000 52% Trade Finance 25,000 Others 21% 20,000 15,000 Deposit Mix – 30th September 2015 Customer Deposits LKR Mn 35,000 7% 9% 30,000 FD SA 25,000 17% CA 20,000 67% Others 15,00
Slide 15: Asset Quality Overview
Asset Quality Overview Gross NPL 16.0% Significant progress over the last 15 months has been made 14.0% with regard to NPL’s. 12.0% 10.0% Origination and underwriting strengthened for the future. 8.0% Recoveries streamlined and strengthened. 6.0% 4.0% 2.0% 0.0% Jul Aug Sep Oct Nov Dec Jan Feb Mar Ap
Slide 16: CASA
CASA Current Accounts Savings Accounts LKR Mn LKR Mn 3,500 6,000 3,000 5,000 2,500 4,000 2,000 3,000 1,500 1,000 2,000 500 1,000 0 0 CASA Significant progress has been made to strengthen CASA within the bank. 30% Current Accounts have grown at a compounded monthly growth rate of 25% 6% over the last
Slide 17: Financials – Income Statement (Bank)
Financials – Income Statement (Bank) 3Q14 vs 3Q15 9M14 vs 9M15 Rs Mn 3Q14 9M14 3Q15 9M15 YoY YoY Net Interest Income 436 1,166 498 1,538 14% 31% Net Fee and commission income 34 92 66 120 94% 30% Net Trading and other operating 103 301 158 414 53% 37% income Total Operating income 573 1,559 722 2,07
Slide 18: Financials – Balance Sheet (Bank)
Financials – Balance Sheet (Bank) Rs Mn 9M14 9M15 9M1 VS 9M15 YoY Assets Cash and Balances with CB 14,550 4,030 -72% Loans and receivables to other customers 24,059 38,065 58% Other interest earning assets 6,111 19,296 216% Investment in subsidiaries 892 892 Non interest earning assets 2,364 2,665 1
Slide 19: Financials – Income Statement (Group)
Financials – Income Statement (Group) 3Q14 vs 3Q15 9M14 vs 9M15 Rs Mn 3Q14 9M 14 3Q15 9M15 YoY YoY Net Interest Income 491 1,305 604 1,833 23% 4% Net Fee and commission income 68 188 111 241 63% 28% Net Trading and other operating income 130 459 167 425 29% -7% Total Operating income 689 1,952 882 2
Slide 20: Financials – Balance Sheet (Group)
Financials – Balance Sheet (Group) Rs Mn 9M 14 9M15 9M14 VS 9M15 YoY Assets Cash and Balances with CB 15,039 4,176 -72% Loans and receivables to other customers 26,881 42,653 59% Other interest earning assets 5,776 18,811 226% Non interest earning assets 3,783 4,010 6% 51,479 69,650 35% Total Equity
Slide 21: Key Initiatives taken to improve financial performance
Key Initiatives taken to improve financial performance • Accelerated loan growth • Supplemented market borrowings with customer deposits • Replaced lower yielding assets with higher yielding assets • Focused on improving fee income • Focused on trade business • Managed costs effectively • Focused ef
Slide 22: Key Highlights - 9M15
Key Highlights - 9M15 New Management and organizational structure implemented in keeping with the new business strategy. Customer reach expansion accelerated with branches totaling to 63 and 30 offsite ATMs. Branch layouts and branches are being refurbished with stronger consumer oriented branding.
Slide 23: Corporate Information
Corporate Information Board of Directors Legal Form Name Title A Public Limited Liability Company incorporated in Sri Lanka under the Companies Act No. 17 of 1982. Re-registered under the P. Jayendra Nayak Chairman Companies Act No. 7 of 2007. Listed as a public quoted Company Alexis Lovell Deputy C