United Bank Limited · PSX:UBL
United Bank — H1 2013 Earnings Presentation
32 slides from United Bank's earnings presentation, June 2013
Slide 1: United Bank Limited Performance Review June 2013
United Bank Limited Performance Review June 2013 1
Slide 2: Key Highlights
Key Highlights Standalone PAT down 11% YoY to Rs 8.3 bn. Consolidated PAT down 1% YoY to Rs 9.2bn Net Interest income down 7% YoY to Rs 17.8 bn • Net Interest Margin reduced by 137 bps to 5.3% (June 2012: 6.6%) subsequent to the 300 bps reduction in the discount rate in the last 12 months and the in
Slide 3: Key Highlights
Key Highlights Provisions and Loan Losses are down by 16% YoY to Rs 1.2 Bln • Asset quality improves to 12.7% in Jun’13 as compared to 13.4% in Dec’12. • Gross NPLs have reduced by Rs 1.9Bn in 2013, while net NPLs have reduced by Rs 3.1Bn. Both Domestic and International businesses have contributed
Slide 4: Key Highlights
Key Highlights Strategy to grow Core Domestic deposits continues • Average Core deposits have grown by 17% YoY, with a 12.5% increase in 2013. • Average Low cost deposits have grown by 12% YoY, with an 10% increase in 2013. • Core deposits market share maintained at 7.4%. • Overall Cost of Funds for
Slide 5: Income Statement - Standalone
Income Statement - Standalone PKR Bn H1'13 H1'12 Var % Q2'13 Q1'13 Var % Interest Earned 35.36 36.26 -2% 18.35 17.01 8% Interest Expensed (17.52) (17.05) -3% (9.30) (8.22) -13% Net Interest Income 17.84 19.21 -7% 9.05 8.79 3% Non Interest Income 8.63 7.68 12% 4.78 3.85 24% Total Revenue 26.47 26.89
Slide 6: Income Statement - Consolidated
Income Statement - Consolidated PKR Bn H1'13 H1'12 Var % Q2'13 Q1'13 Var % Interest Earned 36.72 36.95 -1% 19.01 17.71 7% Interest Expensed (18.22) (17.30) -5% (9.65) (8.57) -13% Net Interest Income 18.50 19.65 -6% 9.36 9.14 2% Non Interest Income 10.25 8.31 23% 5.16 5.10 1% Total Revenue 28.75 27.9
Slide 7: Share Info
Share Info Trends - KSE 100 Index & UBL's Share Price Book value per share - Standalone Thousands 100 78 135 24 125 Cons. Equity Jun’13 – Rs 105 Bn 21 85 66 Cons. BV - Rs 85.6 per share Book Value - Rs. Bn 115 Book value per share 105 18 70 55 95 15 85 55 43 75 11 Max 2013 : 137.14 65 Min 2013 : 81.
Slide 8: Key Ratios – Bank (Standalone)
Key Ratios – Bank (Standalone) Balance Sheet Ratios Jun-13 Dec-12 Advances / Depos its 52.2% 56.0% As s et Quality 12.7% 13.4% Coverage 88.2% 81.8% Financial Ratios HY' 13 HY' 12 Q2'13 Q1'13 Yield on P. Advances 9.5% 12.2% 9.6% 9.5% Cos t of Depos its 3.8% 4.4% 3.8% 3.8% Net Interes t Margin 5.3% 6.
Slide 9: Deposits Structure (Bank level)
Deposits Structure (Bank level) Cost of Deposits Deposits - Bank Dec'12 Jun'13 5.2% PE - PE - Bank Rs.Bn COF% Rs.Bn COF% 4.4% Domestic deposits 540 4.6% 578 4.0% 3.6% International deposits 160 3.4% 176 3.2% 2.8% Total Bank 700 4.3% 755 3.8% 2.0% Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13
Slide 10: Net Advances
Net Advances % Net Advances - Rs. Bn Dec'12 Jun'13 Change Corporate Bank * 222.7 216.6 -3% Commercial 22.0 18.7 -15% Consumer 7.9 7.7 -3% Others 8.0 9.8 22% Total Domestic 260.6 252.9 -3% International 103.8 110.2 +6% Bank 364.4 363.1 0% International US$ Mn 1,068.4 1,106.1 +4% * of which commodity
Slide 11: International Advances
International Advances By Geography By Business - UAE Qatar, 12% Yemen, 10% Bahrain, 10% NewYork, 0% EPZ, 0% Corporate, 62% Others, 25% UAE, 68% Consumer, 13% Personal Others, 2% Sharjah, loan, 7% Abu 8% Dhabi, 39% Dubai, Baitna, 91% 53% 11
Slide 12: Spread Analysis – Bank Level
Spread Analysis – Bank Level Bank HY 2012 HY 2013 Avg.Yield Avg.Yield Rs Bn PE AVG IE /Cost PE AVG IE /Cost Avg KIBOR - 3M 11.9% 9.4% Interest Earning Assets Performing Advances 328 308 18.6 12.2% 334 329 15.6 9.5% Corporate 159 152 10.0 13.3% 145 159 7.8 9.9% Commodity 54 47 3.4 14.6% 51 43 2.5 11.
Slide 13: Concentration of Advances – Bank level (June’13)
Concentration of Advances – Bank level (June’13) Tra di ng, 4% Ai rl ines, 2% Agri business, 14% Automobile & Tra ns. Equi p., 2% Texti l e, 15% Cement, 0% Tel ecom, Chemi cal and 2% pha rmaceuticals, 2% Suga r, 3% Contra ctor / Cons tructor, 7% Prod. & Tra nsmission Energy, 17% Fi nancials, 4% Food
Slide 14: Non Markup / Return / Interest Income
Non Markup / Return / Interest Income Non Fund Income - Rs. Mn H1'13 H1'12 Var % Q2'13 Q1'13 Var % Fee, commission and brokerage income 4,616 3,965 16% 2,272 2,344 -3% Dividend income 722 1,443 -50% 174 549 -68% Income from dealing in foreign currencies 790 1,047 -25% 396 394 1% Gain / (loss) on sal
Slide 15: Fee Commission and Brokerage Income
Fee Commission and Brokerage Income Fee Commission Income - Rs. Mn H1'13 H1'12 Var % Q2'13 Q1'13 Var % Commission on trade 754 816 -8% 400 354 13% Commission on consumer loan 295 395 -25% 139 156 -11% Commission on remittance / uniremote 763 524 46% 388 375 3% Corporate service chgs/finance fee/FI i
Slide 16: Administrative Expenses
Administrative Expenses Administrative Expenses - Rs. Mn HY' 13 HY' 12 Var % Q2'13 Q1'13 Var % Personnel Cost 5,213 4,847 -8% 2,611 2,602 0% Premises Cost 1,903 1,632 -17% 978 926 -6% Outsourced service charges 1,373 1,006 -36% 704 669 -5% including sales commission Advertisement and publicity 261 2
Slide 17: UBL OMNI – Branchless Banking
UBL OMNI – Branchless Banking UBL OMNI Commercial Launch: April 2010 • UBL Omni is the market leader in branchless No of Accounts: 1.3 Million+ banking which is a rapidly growing industry in No of Agents: No of cities/towns: 12,000+ 650+ Pakistan which has over 80% unbanked population. No of transac
Slide 18: Financial ratios – Consolidated (1/3)
Financial ratios – Consolidated (1/3) YTD DuPont QTD (Annualized) 2009 2010 2011 2012 Jun 13* Dec-12 Mar-13 Jun-13 Spread (Standalone) 1 5.5% 5.5% 5.6% 4.7% 3.9% 4.4% 4.0% 3.8% Net Interest Margin (Standalone) 2 6.9% 7.0% 7.2% 6.3% 5.3% 6.0% 5.4% 5.0% Non Interest Yield 3 2.1% 1.6% 1.7% 2.2% 2.0% 2.
Slide 19: Financial ratios – Consolidated (2/3)
Financial ratios – Consolidated (2/3) Asset Quality YTD QTD (Annualized) 2009 2010 2011 2012 Jun 13 De c-12 Mar-13 Jun-13 Gross NPLs / Gross Loan 10.3% 12.9% 13.4% 13.6% 13.4% 13.6% 13.8% 13.4% Net NPLs / Gross Loan 3.0% 3.6% 2.9% 3.2% 2.6% 3.2% 3.0% 2.6% Coverage Ratio 70.9% 71.9% 80.1% 76.7% 80.4%
Slide 20: Financial ratios – Consolidated (3/3)
Financial ratios – Consolidated (3/3) Yearly Other Metrics QTD (Annualized) 2009 2010 2011 2012 Jun 13* De c-12 Mar-13 Jun-13 Capital Adequacy Ratio 14.0% 15.0% 14.9% 14.8% 14.0% 14.8% 14.5% 14.0% Tier-I CAR 9.5% 10.4% 10.6% 10.2% 10.1% 10.2% 10.2% 10.1% Loan / Deposits 73.7% 62.8% 57.5% 54.8% 52.9%
Slide 21: Quarterly Trend Analysis
Quarterly Trend Analysis Bank Level (Stand Alone) 21
Slide 22: Profit before Tax
Profit before Tax 8.0 7.5 7.2 7.2 7.3 6.5 6.5 6.4 6.6 6.0 Rs Bn 5.9 5.9 5.2 5.0 5.2 4.5 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 22
Slide 23: Profit after Tax
Profit after Tax 5.5 4.9 5.0 4.7 4.5 4.4 4.3 4.5 4.2 Rs Bn 3.9 4.0 4.0 3.4 3.5 3.3 3.0 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 23
Slide 24: Deposits
Deposits 800 755 750 700 704 685 700 653 650 Rs Bn 613 614 594 600 557 550 529 500 Mar'11 Jun'11 Sep'11 Dec' 11 Mar'12 Jun'12 Sep'12 Dec' 12 Mar'13 Jun'13 24
Slide 25: Net Advances
Net Advances 375 364 363 363 358 355 352 351 345 Rs Bn 339 334 334 326 325 327 315 Mar'11 Jun'11 Sep'11 Dec' 11 Mar'12 Jun'12 Sep'12 Dec' 12 Mar'13 Jun'13 25
Slide 26: Net Interest Income
Net Interest Income 11.0 10.5 10.3 10.2 9.9 10.0 9.8 9.6 9.6 Rs Bn 9.4 9.5 9.2 9.0 9.0 8.8 8.5 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 26
Slide 27: Total Provision
Total Provision 3.0 2.6 2.3 2.4 1.9 1.6 1.8 Rs Bn 1.0 1.1 1.2 0.8 0.7 0.8 0.5 0.6 - Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 27
Slide 28: Non Fund Income
Non Fund Income 6.0 5.5 5.3 4.8 4.6 4.1 4.0 Rs Bn 3.8 3.9 3.9 3.6 3.0 3.0 3.2 2.9 2.5 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 28
Slide 29: Gross Revenue
Gross Revenue 16.5 15.4 15.6 14.7 Rs Bn 13.8 13.6 13.7 13.8 13.4 13.2 13.4 13.0 12.6 12.9 12.2 12.0 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 29
Slide 30: Administrative Expenses
Administrative Expenses 6.9 6.5 6.5 6.2 6.2 6.1 6.1 5.8 Rs Bn 5.5 5.7 5.3 5.0 5.0 5.0 4.9 4.7 4.5 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 30
Slide 31: The information contained herein reflects our latest business statement as at June 30, 2013
The information contained herein reflects our latest business statement as at June 30, 2013. 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 32: Thank You
_@BL UNITED BANK oo Thank You Gai 32