United Bank For Africa Plc · NSENG:UBA
United Bank For Africa — H1 2012 Earnings Presentation
31 slides from United Bank For Africa's earnings presentation, Jul 18, 2012
Slide 1: First Half 2012 Results Presentation
United Bank for Africa Plc First Half 2012 Results Presentation July 18, 2012
Slide 2: Forward Looking Statements
Forward Looking Statements From time to time, the Bank makes written and/or oral forward-looking statements, including in this presentation and in other communications. In addition, representatives of the Bank may make forward- looking statements orally to analysts, investors, the media and others.
Slide 3: Outline
Outline Review of Income Statement Review of Balance Sheet Organization and Ownership Structure Business Overview Appendix 3
Slide 4: UBA at a Glance
UBA at a Glance Overview Key figures Increasingly well diversified business As of Jun. 30, 2012 As of Jun. 30, 2011 Africa’s Leading player in 3 key markets Gross earnings NGN111.0 bn NGN91.3 bn Global Bank Operations in 19 African countries Operating income NGN80.6 bn NGN67.9 bn Objective is to be
Slide 5: Improving Record of Financial Performance
Improving Record of Financial Performance Highlights – H1 2012 Gross earnings of N111.0bn: up 21.6% from N91.3bn in 1H 2011 Net Interest Income of N46.4bn: up 19.3% from N38.9bn in 1H 2011 Earnings Operating income of N80.6bn: up 18.6% from N67.9bn in 1H 2011 Profits before tax of N31.8bn: up 138.4%
Slide 6: Review of Income Statement
UBAM ‘United Bank for Africa Phe Review of Income Statement
Slide 7: Strong Earnings Growth
Strong Earnings Growth Gross Earnings (N billion) Gross Earnings, Quarterly Trend (N billion) +21.6%, 111.0 57.1 53.9 YoY 44.8 91.3 41.5 87.7 3Q11 4Q11 1Q12 2Q12 Revenues were up 21.6% YoY in 1H 2012 Compound annual growth of 13% since first half 1H-2010 1H-2011 1H-2012 of 2010 N111 bn revenues achi
Slide 8: Revenue Mix
Revenue Mix Gross Earnings (N billion) Gross Earnings Mix (N billion) Non-interest income Africa (exl- Nig.) Interest income 22% 35.2 New York 30.2 30.3 1% Nigeria 77% 75.8 57.3 61.1 1H10 1H11 1H12 Non-interest income mix Interest income mix Bulk of revenues generated from Nigeria – 77% contribution
Slide 9: Revenue Drivers
Revenue Drivers Yield on Earning Assets Net Interest Margins 9.7% 9.9% 5.9% 6.1% 7.9% 4.8% 1H11 1Q12 1H12 1H11 1Q12 1H12 Cost of Funds Yields on earning assets improve to 9.9%...deliberate decision to improve asset 3.4% prices now bearing fruits. 3.2% 2.9% Net interest margin now above 6%, in spite
Slide 10: Profitability
Profitability Operating Income, PBT (N billion) Opex Analysis Operating Income PBT Staff Costs Deprec/Amort. Other Opex 80.6 67.9 39.0% 35.2% 35.7% 63.7 9.3% 9.4% 10.2% 31.8 50.8% 55.5% 54.8% 12.3 8.6 1H10 1H11 1H12 1H11 1Q12 1H12 Robust operating income delivered in 2012 Improving Cost to Income Ra
Slide 11: Review of Balance Sheet Statement
Review of Balance Sheet Statement 11
Slide 12: Asset Analysis
Asset Analysis Total Assets (N’ billion) Return on Assets 2.12 2.6% 2.04 2.4% 1.95 0.7% 1H11 1Q12 1H12 FY11 1Q12 1H12 Asset base still in excess of N2 trillion Asset Distribution by Geography – Asset optimization increases with UEMOA improving return on assets, now 2.6% West Africa 9% 12% Also, impr
Slide 13: Deposit Analysis
Deposit Analysis Total Deposits (N trillion) Deposit Mix Time Savings Demand 1.60 1.46 1.50 21.6% 22.2% 20.0% 17.1% 15.4% 17.6% 61.3% 62.4% 62.4% FY11 1Q12 1H12 FY11 1Q12 1H12 Deposit by Region (N billion) Stable deposit base of N1.5 trillion as at June 30, 2012 West UEMOA – We have seen a gradual s
Slide 14: Loan Book Analysis
Loan Book Analysis Net Loans (N’ billion) Loan Distribution, by Sector 734 Manufacturing 690 704 Real Estate & 9% Others Food & Constr. 4% 2% Transportation Beverages 6% 2% Oil & Gas Power 17% 1% Gen. Agriculture Commerce 6% 10% FY11 1Q12 1H12 Government Telecoms 10% 11% Consumer Fin. Institutions L
Slide 15: Loan Book Quality
Loan Book Quality Non Performing Loans (N’ billion) NPL Ratio improves steadily 3.7% 26.4 3.0% 20.3 2.4% 17.9 FY11 1Q12 1H12 FY11 1Q12 1H12 Strong NPL Coverage Ratios NPL ratio of 2.4% reflects the quality of our loan portfolio 102.0% 107.6% 94.4% Gross NPLs continue to decline steadily – Down by 32
Slide 16: Balance Sheet Funding
Balance Sheet Funding Shareholders’ Funds (N billion) Funding Mix Borrowings Other liabilities Equity Deposits 199.6 8% 10% 10% 181.1 7% 11% 7% 173.3 9% 9% 10% 74% 72% 73% FY11 1Q12 1H12 FY11 1Q12 1H12 Robust Return on Equity Solid growth in total equity, up by 15.2% so far 28.5% 28.1% in 2012 28% r
Slide 17: Key Risk Ratios
Key Risk Ratios Capital Adequacy Ratio Liquidity Ratio 22.9% 23.7% 60.0% 59.7% 57.3% 17.0% FY11 1Q12 1H12 FY11 1Q12 1H12 Loan to Deposit Ratio Robust capital adequacy and liquidity positions with impressive ratios of 23.7% and 59.7% 47.7% 49.0% 46.1% respectively Loan to deposit ratio of 49% provide
Slide 18: Organization and Ownership Structure
Organization and Ownership Structure 18
Slide 19: Organization Structure
Organization Structure UBA POST-RESTRUCTURE SHAREHOLDERS SHAREHOLDERS UBA PLC AFRICAN BANKING SUBSIDIARIES UBA AFRICA UBA UBA UBA AFRILAND PENSIONS PRUDENTIAL NEW YORK FX MART CAPITAL PROPERTIED UBA CAPITAL LIMITED UBA GHANA CUSTODIAN REGISTRARS UBA CAMEROON SA BRANCH LTD. EUROPE LIMITED LTD. LIMITE
Slide 20: Well Diversified Business in Africa
Well Diversified Business in Africa Footprint and retail franchise network, 1H 2012 Increasing contribution from Senegal Established: 2009 Burkina Faso Established: 1974 Benin Established: 2009 Mozambique Established: 2010 Tanzania Established: 2009 operations outside Nigeria No. of branches: 4 No.
Slide 21: Shareholding Structure
Shareholding Structure Diversified Shareholder Base Top 10 shareholders as at June 30, 2012 Shareholder Shareholding % Holding Stanbic Nominees 4,649,584,004 14.1% Banks Mutual Funds 5% 2% Govt. UBA Staff Share Investment Trust 2,457,293,963 7.5% UBA SSIT 4% 4.6% 8% Consolidated Trust Fund 1,519,187
Slide 22: Business Overview
UBAM ‘United Bank for Africa Phe 22
Slide 23: Business Strategy
Business Strategy 23 We set out to achieve a three-pronged strategy since our business combination with Standard Trust Bank in 2005. Having completed the major phase of our pan African expansion, focus is now on the consolidation of these businesses to extract value from them. PHASE 3 PHASE 2 …. Est
Slide 24: Key Business Strengths
Key Business Strengths Africa’s global bank with a well diversified business across Africa Strong retail network of over 7 million customers through more than 700 business offices spread across 22 countries globally – facilitates easy access to cheap deposits Improving financial performance underpin
Slide 25: Key Management Personnel
Key Management Personnel 25 Years of Name Position Experience Experience Phillips Oduoza GMD/CEO 25 International Merchant Bank TRUST Continental BANK LIMITED Kennedy Uzoka DMD 18+ Crystal Bank of Africa Rasheed Olaoluwa ED, UBA Nigeria, South 25+ Universal Trust Bank Plc 25+ ANZ Merchant Bank now p
Slide 26: Key Management Personnel (cont'd)
Key Management Personnel (cont’d) 26 Years of Name Position Experience Experience 25+ Ifeatu Onejeme ED, Head of Corporate Banking Femi Olaloku ED, Operations and Info. Tech 20+ Dan Okeke ED, UBA Nigeria , North 17+ Ugo Nwaghodoh Chief Finance Officer 18+ 26
Slide 27: In Conclusion, we are Determined to:
In Conclusion, we are Determined to: Maintain a solid capital position that will align with our growth aspirations. Consolidate on a low-cost banking model. Further pursue improvement in quality and diversification of earnings mix. Put the customer at the center of all business activities. Entrench
Slide 28: Appendix
UBAM ‘United Bank for Afi Phe Appendix 28
Slide 29: Summary Historical Financials
Summary Historical Financials 2009 2010 2011 1Q 2012 2Q 2012 Key P & L line (N’ million) Gross earnings 194,315 177,571 184,833 53,864 57,140 Interest income 142,278 117,745 121,422 36,833 38,962 Interest expense (47,727) (46,969) (46,125) (14,485) (14,921) Net interest income 94,551 70,776 75,297 2
Slide 30: Healthy Competitive Position with Further Upside to Improve
Healthy Competitive Position with Further Upside to Improve Total assets vs. peers (N’bn), 1Q12 Annualized ROE, 1Q12 2,978 28.5% 25.5% 2,361 2,119 1,749 1,579 Peer 1 Peer 2 UBA Peer 3 Peer 4 UBA Peer Average *FY11 Data Cost-to-income ratio, 1Q12 Capital adequacy ratio, 1Q12 NPL ratio, 1Q12 4.5% 65.3
Slide 31: Thank You
UBAM ‘United nk for Africa Phe Thank You 31
United Bank for Africa — H1 2012 Earnings Presentation on 6ix