United Bank Limited · PSX:UBL
United Bank — Q1 2015 Earnings Presentation
31 slides from United Bank's earnings presentation, March 2015
Slide 1: United Bank Limited Performance Review March 2015
United Bank Limited Performance Review March 2015 1
Slide 2: Key Highlights (1 of 3)
Key Highlights – (1 of 3) Standalone PAT up 37% YoY to Rs. 7.13 Bn, Consolidated PAT up 39% YoY to Rs. 7.70Bn Net Interest income has increased significantly by 34% to reach Rs. 13.11Bn ■ Average Loan growth of 12% over last year builds revenue despite lower rate environment ■ Buildup in PIBs expand
Slide 3: Key Highlights (2 of 3)
Key Highlights - (2 of 3) Provisions up by Rs. 0.6Bn YoY to Rs. 0.8Bn in Mar 2015 ■ FSV benefit prudently reduced from Rs. 0.9Bn in Dec’14 to Rs. 0.7Bn as at Mar’15 ■ Overall NPLs up by 1% over Dec’14 to Rs. 54.2Bn ■ Asset quality at 11.6% in Mar‘15 (11.2% as at Dec’14) ■ Coverage ratio maintained a
Slide 4: Key Highlights (3 of 3)
Key Highlights - (3 of 3) Retail Bank funding balance sheet expansion ■ 6% growth in the total deposits ahead of market growth of 2% in Q1 2015 ■ Current Accounts remains core focus for retail distribution – with 13% YoY average growth ■ Domestic cost of deposits at 4.1% in Q1 2015 vs 4.6% in Q1 201
Slide 5: Income Statement - Standalone
Income Statement - Standalone PKR Bn Q1'15 Q1'14 Var % Q4'14 Var % Interest Earned 22.91 19.39 +18% 22.34 +3% Interest Expensed (9.80) (9.58) -2% (9.51) -3% Net Interest Income 13.11 9.81 +34% 12.83 +2% Non Interest Income 6.23 5.07 +23% 4.77 +31% Total Revenue 19.34 14.89 +30% 17.59 +10% Admin. Exp
Slide 6: Income Statement – Consolidated
Income Statement – Consolidated PKR Bn Q1'15 Q1'14 Var % Q4'14 Var % Interest Earned 23.64 20.11 +18% 23.12 +2% Interest Expensed (10.06) (9.86) -2% (9.77) -3% Net Interest Income 13.58 10.26 +32% 13.34 +2% Non Interest Income 7.10 5.75 +23% 5.86 +21% Total Revenue 20.68 16.01 +29% 19.20 +8% Admin.
Slide 7: Share Info
Share Info Trends – KSE 100 Index and UBL’s Share Price Growth in Book Value Per Share by 6% in Q1’15 Thousands 250 35 145 133 130 130 126 208 30 Cons. Equity Mar’15 – Rs 146 Bn 120 115 Cons. BV - Rs. 118.8 per share 101 110 100 92 166 25 109 100 85 79 103 90 68 124 20 70 61 80 55 82 70 44 75 82 Max
Slide 8: Key Ratios – Bank (Standalone)
Key Ratios – Bank (Standalone) Balance Sheet Ratios Mar-15 Dec-14 Adva nce s / De pos i ts 47.2% 51.3% As s e t Qua l i ty 11.6% 11.2% Cove ra ge 81.2% 81.2% Financial Ratios Q1'15 Q1'14 Q4'14 Yi e l d on P. Adva nce s 9.4% 9.1% 9.8% Cos t of De pos i ts - Ba nk 3.7% 4.1% 3.8% Cos t of De pos i ts -
Slide 9: Deposits Structure
Deposits Structure Deposits - Bank Dec'14 Mar'15 Bank Rs Bn PE COF % PE COF % Domes ti c depos i ts 697 4.4% 754 4.1% Interna ti ona l depos i ts 198 2.4% 191 2.0% Tota l Ba nk 895 3.9% 945 3.7% Interna ti ona l $ Mn 1,967 2.4% 1,875 2.0% Domes ti c CASA 85.8% 85.6% Cost of Deposits 5.0% 4.5% 4.0% 4
Slide 10: Net Advances
Net Advances Mar'15 vs Net Advances - Rs. Bn Dec'14 Mar'15 Dec'14 Corporate Bank 208 209 1% Commodity 50 46 -7% Commercial 22 18 -19% Consumer 9 9 1% Others 13 13 0% Total Domestic 300 294 -2% International 134 125 -6% Bank 434 420 -3% International US$ Mn 1,332 1,230 -8% 222 208 209 Dec'14 Mar'15 1
Slide 11: International Advances Mar-15
International Advances Mar-15 11
Slide 12: Concentration of Advances – Consolidated (Mar’15)
Concentration of Advances – Consolidated (Mar’15) Others Energy Sector 25% 19% Airline 1% Contractors 2% Pharmaceuticals Agribusiness 1% 11% Telecom 3% Financial Individuals 4% 9% Construction 5% Wholesale traders Food industries 4% Textile 4% 12% 12
Slide 13: Non Fund Income - Standalone
Non Fund Income - Standalone Non Fund Income - Rs. Mn Q1'15 Q1'14 Var % Q4'14 Var % Fee, commission and brokerage income 2,819 2,703 4% 2,727 3% Dividend income 494 675 -27% 606 -18% Income from dealing in foreign currencies 705 654 8% 719 -2% Gain / (loss) on sale of securities 1,851 736 151% 360 4
Slide 14: Fee Commission and Brokerage Income - Standalone
Fee Commission and Brokerage Income - Standalone Fee Commission Income - Rs. Mn Q1'15 Q1'14 Var % Q4'14 Var % Commission on trade 399 442 -10% 410 -2% Commission on consumer loan 173 146 18% 164 5% Commission on remittance / uniremote 490 511 -4% 518 -5% Corporate service chgs/finance fee/FI inc. 27
Slide 15: Administrative Expenses - Standalone
Administrative Expenses - Standalone Administrative Expenses - Rs. Q1'15 Q1'14 Var % Q4'14 Var % Mn Personnel Cost 2,956 2,823 -5% 2,862 -3% Premises Cost 930 875 -6% 1,037 10% Outsourced service charges 981 856 -14% 1,127 13% including sales commission Advertisement and publicity 145 120 -20% 458 6
Slide 16: UBL OMNI – Branchless Banking
UBL OMNI – Branchless Banking UBL OMNI Commercial Launch: April 2010 ■ UBL Omni launched mobile merchant payments in 2015 via which No of Accounts: 1.73 Million customers and merchants can use Omni mobile app to make No of Agents: 28,500+ No of cities/towns: 1700+ payments for purchases. A first in
Slide 17: Financial ratios – Consolidated (1/3)
Financial ratios – Consolidated (1/3) QTD Full Year DuPont (Annualized) 2010 2011 2012 2013 2014 De c-14 Mar-15 Spread (Standalone) 1 5.5% 5.6% 4.7% 4.0% 4.4% 4.8% 4.6% Net Interest Margin (Standalone) 2 7.0% 7.2% 6.4% 5.4% 5.7% 6.3% 5.9% Non Interest Yield 3 1.6% 1.7% 2.2% 2.0% 2.0% 2.0% 2.3% Admin
Slide 18: Financial ratios – Consolidated (2/3)
Financial ratios – Consolidated (2/3) QTD Full Year Asset Quality (Annualized) 2010 2011 2012 2013 2014 De c-14 Mar-15 Gross NPLs / Gross Loan 12.9% 13.4% 13.6% 11.9% 11.1% 11.1% 11.4% Net NPLs / Gross Loan 3.6% 2.9% 3.4% 2.2% 2.4% 2.4% 2.3% Coverage Ratio 69.0% 78.1% 74.6% 81.1% 78.5% 78.5% 79.5% P
Slide 19: Financial ratios – Consolidated (3/3)
Financial ratios – Consolidated (3/3) QTD Full Year Other Metrics (Annualized) 2009 2010 2011 2012 2013 2014 De c-14 Mar-15 Capital Adequacy Ratio 14.0% 15.0% 14.9% 14.8% 13.3% 14.3% 14.3% 14.6% Loan / Deposits 73.7% 62.8% 57.5% 55.0% 50.0% 51.8% 51.8% 47.6% Net Loans / Assets 56.5% 47.1% 42.2% 40.1
Slide 20: Quarterly Trend Analysis Bank Level (Stand Alone)
Quarterly Trend Analysis Bank Level (Stand Alone) 20
Slide 21: Profit before Tax
Profit before Tax 10.9 9.3 8.4 8.3 7.8 8.0 Rs Bn 7.2 7.2 7.1 6.5 6.4 6.0 5.9 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 21
Slide 22: Profit after Tax
Profit after Tax 7.1 6.1 5.7 5.3 5.2 5.3 4.9 Rs Bn 4.7 4.7 4.4 4.3 3.9 4.0 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 22
Slide 23: Deposits
945 Deposits 895 866 847 858 828 773 752 698 703 Rs Bn 685 653 614 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 23
Slide 24: Net Advances
Net Advances 434 417 408 391 420 369 377 Rs Bn 364 363 358 355 352 345 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 24
Slide 25: Net Interest Income
Net Interest Income 12.8 13.1 11.3 11.0 Rs Bn 10.6 9.9 9.8 9.6 9.6 9.5 9.4 9.0 8.8 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 25
Slide 26: Provisions
Provisions 1.9 1.1 0.9 Rs Bn 0.8 0.7 0.8 0.8 0.5 0.3 0.2 0.2 -0.1 -0.1 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 26
Slide 27: Non Funded Income
Non Funded Income 6.2 5.5 5.1 5.0 4.8 4.6 4.8 4.5 Rs Bn 4.1 3.6 4.0 4.9 3.9 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 27
Slide 28: Revenue
Revenue 19.3 17.6 16.3 15.5 Rs Bn 15.4 15.4 14.9 13.8 13.7 13.2 13.4 12.6 14.1 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 28
Slide 29: Administrative Expenses
Administrative Expenses 8.0 7.2 7.1 7.3 6.9 6.9 6.5 6.5 Rs Bn 6.1 6.2 6.2 5.8 5.5 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 29
Slide 30: Forward-looking statements disclaimer
The information contained herein reflects our latest business statement as at Mar 31, 2015. 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 of
Slide 31: Thank You
_@BL UNITED BANK oo Thank You Goi 31