Union Bank Of Colombo Plc · CSELK:UBC.N0000
Union Bank Of Colombo — Q1 2023 Earnings Presentation
16 slides from Union Bank Of Colombo's earnings presentation, May 2023
Slide 1: Investor Presentation 1Q 2023
Investor Presentation 1Q 2023 1 Classification: Internal
Slide 2: Vision and Mission
Vision Vision: “Our Vision is to be the innovator of Banking Solutions to the wider Corporate, SME and Retail Segments and to be their Bank of choice, through professional and empowered people”. Mission: ▪ To our customers we provide the means of economic upliftment through customized banking and fi
Slide 3: Union Bank posts strong income growth in 1Q2023
Union Bank posts strong income growth in 1Q2023 Income Statement (Rs.Mn) 1Q 2023 1Q 2022 Growth % Net i nteres t i ncome 1,622 1,091 49% Net fee a nd commi s s i on i ncome 321 255 26% Net Tra di ng a nd other Opera ti ng i ncome 121 309 -61% Total operating income 2,064 1,655 25% Impa i rment Cha r
Slide 4: Net Interest Income increased by 49% YoY
Net Interest Income increased by 49% YoY Net Interest Income Gross Fees & Commission 1,622 420 318 1,091 266 271 1,013 1,031 985 254 853 224 767 191 1Q 17 1Q 18 1Q 19 1Q 20 1Q 21 1Q 22 1Q23 1Q 17 1Q 18 1Q 19 1Q 20 1Q 21 1Q 22 1Q23 Net Interest Income (NII) increased by 49 % YoY Gross fee income incr
Slide 5: Other Operating Expenses Increased by 23% YoY
Other Operating Expenses Increased by 23% YoY Net Trading & Other Income (Rs Mn) Operating Expenses (Rs Mn) 320 309 1,213 267 1,001 983 938 955 221 907 771 136 121 78 1Q 17 1Q 18 1Q 19 1Q 20 1Q 21 1Q 22 1Q23 1Q 17 1Q 18 1Q 19 1Q 20 1Q 21 1Q 22 1Q23 • Operating Income reduced by 97% as a result of •
Slide 6: Operating Margin increased by 27% YoY
Operating Margin increased by 27% YoY Operating Margin( Rs Mn) Operating Income (Rs.Mn) 851 2,064 671 CAGR 614 18% 497 413 453 333 240 1Q 14 1Q23 1Q 17 1Q 18 1Q 19 1Q 20 1Q 21 1Q 22 1Q23 Operating Expenses • Total operating income before impairments (Rs.Mn) increased by 25% to Rs. 2,064 Mn 1,213 CAG
Slide 7: Higher Impairment Provisions
Higher Impairment Provisions Impairment Charge (Rs.Mn) 450 288 196 109 93 93 51 1Q 17 1Q 18 1Q 19 1Q 20 1Q 21 1Q 22 1Q23 Impairment Charge increased by 56% YoY • Continued challenges to recovery and collection activities compelled the Bank to prudently provide for increased impairments. 7 Classifica
Slide 8: Balance Sheet - Bank
Balance Sheet - Bank Balance Sheet (Rs.Mn) 1Q 2023 1Q 2022 Growth % Net Loans ( Rs Mn) Trea s ury As s ets 39,969 43,215 -8% Loa ns & Adva nces 62,978 67,727 -7% Ca s h & Ba l a nce wi th CB 6,943 8,002 -13% CAGR 62,978 Other As s ets 8,910 10,540 -15% 11% Total Assets 118,800 129,483 -8% 25,442 Bor
Slide 9: Loan Portfolio
Loan Portfolio Net Loans (Rs Mn) Loan Product Mix 4% 5% 77,358 73,749 17% 14% 70,578 67,518 67,835 67,727 16% 62,978 17% 59% 62% Dec'22 Mar'23 Term loans Overdrafts Trade finance Lease and hire purchase Factoring Pawning & Gold loans 2017 2018 2019 2020 2021 2022 1Q23 Credit cards Staff loans Loan C
Slide 10: Strong CASA and Deposit Bases
Strong CASA and Deposit Bases Deposits (Rs.Mn) CASA (Rs.Mn) 92,592 90,250 82,384 83,416 25,146 79,251 24,510 76,532 23,000 70,326 21,723 18,719 19,332 16,310 2017 2018 2019 2020 2021 2022 1Q23 2017 2018 2019 2020 2021 2022 1Q23 • CASA ratio improved to 25.5% 10 Classification: Internal
Slide 11: Strong Total Capital Adequacy Ratio of 18.55%
Strong Total Capital Adequacy Ratio of 18.55% • Capital Adequacy Ratio - The Bank continued to maintain high capital adequacy ratios. - The Tier I Capital Adequacy Ratio as of 31st March 2023 was 17.45% - well above the statutory requirement of 8.5% - The Total Capital Ratio as at end 31st March 202
Slide 12: Investor Ratios
Investor Ratios Market Value (Rs.) ROA, ROE 14 3.08% 12 10 1.71% 8 6 0.84% 4 0.47% 0.29% 0.25% 2 0 Dec'22 Mar'23 Mar'22 Mar'23 Return on Assets (Before Tax), % Last traded price Highest price for the quarter Return on Assets (After Tax), % Lowest price for the quarter Return on Equity (After Tax), %
Slide 13: Income Statement - Group
Income Statement - Group Income Statement (Rs.Mn) 1Q 2023 1Q 2022 Growth % Net i nteres t i ncome 1,878 1,408 33% Net fee a nd commi s s i on i ncome 343 271 27% Net Tra di ng a nd other Opera ti ng i ncome 141 320 -56% Total operating income 2,362 1,999 18% Impa i rment Cha rges 482 317 52% Opera t
Slide 14: Balance Sheet - Group
Balance Sheet - Group Balance Sheet (Rs.Mn) 1Q 2023 1Q 2022 Growth % Net Loans ( Rs Mn) Trea s ury As s ets 40,843 43,712 -7% Loa ns & Adva nces 70,753 76,103 -7% CAGR 70,753 Ca s h & Ba l a nce wi th CB 7,061 8,187 -14% 10% Other As s ets 7,147 8,677 -18% Total Assets 125,803 136,679 -8% 29,217 Bor
Slide 15: Key Performance Indicators
Key Performance Indicators BANK GROUP Item 31 Mar 2023 31 Dec 2022 31 Mar 2023 31 Dec 2022 Regulatory Capital - Rs '000 Common Equity Tier 1 (Basel III) 14,219,026 14,270,811 16,285,749 16,310,515 Tier 1 Capital / Core Capital (Basel III) 14,219,026 14,270,811 16,285,749 16,310,515 Total Capital / T
Slide 16: Corporate Information
Corporate Information Board of Directors Legal Form Name Title A Public Limited Liability Company incorporated in Atul Malik Chairman/Non-Independent, Non-Executive Director Sri Lanka under the Companies Act No. 17 of 1982. Trevine Fernandopulle Deputy Chairman/Senior Independent Director Re-registe
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