United Bank Limited · PSX:UBL
United Bank — H1 2015 Earnings Presentation
31 slides from United Bank's earnings presentation, June 2015
Slide 1: United Bank Limited Performance Review June 2015
United Bank Limited Performance Review June 2015 1
Slide 2: Key Highlights (1 of 3)
Key Highlights – (1 of 3) Standalone PBT up 40% to Rs. 22.1Bn, PAT up 21% YoY to Rs. 12.7Bn, Consolidated PAT up 18% YoY to Rs. 13.4Bn Net Interest income has increased significantly by 29% to reach Rs. 27.3Bn ■ Overall margins expand by 46bps to 5.9% despite 215bps decline in average KIBOR, HY’15 v
Slide 3: Key Highlights (2 of 3)
Key Highlights - (2 of 3) Provisions up by Rs. 1Bn YoY to Rs. 2.1Bn in HY’15 ■ Cash recoveries of Rs. 2.2Bn within domestic and Rs. 0.4Bn within International ■ Overall NPLs reduced by 1% over Dec’14 to Rs. 53.3Bn ■ Asset quality at 11.2% in Jun‘15 (11.2% as at Dec’14) ■ Coverage ratio at 81.2% in J
Slide 4: Key Highlights (3 of 3)
Key Highlights - (3 of 3) Retail Bank funding balance sheet expansion ■ 11% growth in the total deposits ahead of market growth of 9.6% in HY’15 ■ Current Accounts remains core focus for retail distribution – with 15% YoY average growth ■ Domestic cost of deposits at 3.8% in HY’15 vs 4.5% in HY’14 N
Slide 5: Income Statement - Standalone
Income Statement - Standalone PKR Bn HY'15 HY'14 Var % Q2'15 Q1'15 Var % Interest Earned 46.42 40.30 +15% 23.51 22.91 +3% Interest Expensed (19.13) (19.13) +0% (9.33) (9.80) +5% Net Interest Income 27.29 21.16 +29% 14.18 13.11 +8% Non Interest Income 12.39 10.04 +23% 6.16 6.23 -1% Total Revenue 39.6
Slide 6: Income Statement – Consolidated
Income Statement – Consolidated PKR Bn HY'15 HY'14 Var % Q2'15 Q1'15 Var % Interest Earned 47.93 41.74 +15% 24.29 23.64 +3% Interest Expensed (19.69) (19.69) -0% (9.62) (10.06) +4% Net Interest Income 28.24 22.05 +28% 14.66 13.58 +8% Non Interest Income 13.81 11.64 +19% 6.71 7.10 -6% Total Revenue 4
Slide 7: Share Info
Share Info Trends – KSE 100 Index and UBL’s Share Price Growth in Book Value Per Share by 8% in HY’15 210.00 37.00 145 200.00 133 135 130 35.00 130 Cons. Equity Jun’15 – Rs 148 Bn 126 190.00 Cons. BV Jun’15 -Rs. 121 per share 120 115 180.00 33.00 110 101 170.00 100 92 109 110 100 31.00 85 79 103 160
Slide 8: Key Ratios – Bank (Standalone)
Key Ratios – Bank (Standalone) Balance Sheet Ratios Jun-15 Dec-14 Adva nce s / De pos i ts 46.1% 51.3% As s e t Qua l i ty 11.2% 11.2% Cove ra ge 81.2% 81.2% Financial Ratios HY'15 HY'14 Q2'15 Q1'15 Yi e l d on P. Adva nce s 8.9% 9.4% 8.4% 9.4% Cos t of De pos i ts - Ba nk 3.4% 4.0% 3.1% 3.7% Cos t
Slide 9: Deposits Structure
Deposits Structure Deposits - Bank Dec'14 Jun'15 Bank Rs Bn PE COF % PE COF % Domes ti c depos i ts 697 4.4% 788 3.8% Interna ti ona l depos i ts 198 2.4% 204 1.9% Tota l Ba nk 895 3.9% 992 3.4% Interna ti ona l $ Mn 1,967 2.4% 2,006 1.9% Domes ti c CASA 85.8% 85.6% Cost of Deposits 5.0% 4.5% 4.0% 3
Slide 10: Net Advances
Net Advances Jun'15 vs Ne t Adva nce s - Rs. Bn De c'14 Jun'15 De c'15 Corporate Bank 208 209 1% Commodity 50 52 4% Commercial 22 20 -7% Consumer 9 9 5% Others 13 12 -6% Tota l Dome stic 300 302 0% International 134 129 -4% Ba nk 434 430 -1% International US$ Mn 1,332 1,230 -8% 222 208 209 Dec'14 Ju
Slide 11: International Advances Jun-15
International Advances Jun-15 11
Slide 12: Concentration of Advances – Consolidated (Jun’15)
Concentration of Advances – Consolidated (Jun’15) Energy Sector 20% Others 28% Agribusiness 10% Airline 2% Contractors 2% Pharmaceuticals 1% Individuals 9% Telecom 2% Financial 4% Food industries Construction 4% 4% Wholesale traders Textile 4% 10% 12
Slide 13: Non Fund Income - Standalone
Non Fund Income - Standalone Non Fund Income - Rs. Mn HY'15 HY'14 Var % Q2'15 Q1'15 Var % Fee, commission and brokerage income 6,167 5,548 11% 3,348 2,819 19% Dividend income 2,023 1,039 95% 1,529 494 209% Income from dealing in foreign currencies 1,233 1,426 -14% 528 705 -25% Gain / (loss) on sale
Slide 14: Fee Commission and Brokerage Income - Standalone
Fee Commission and Brokerage Income - Standalone Fee Commission Income - Rs. Mn HY'15 HY'14 Var % Q2'15 Q1'15 Var % Commission on trade 825 874 -6% 426 399 7% Commission on consumer loan 341 318 7% 167 173 -4% Commission on remittance / uniremote 1,028 1,022 1% 538 490 10% Corporate service chgs/fin
Slide 15: Administrative Expenses - Standalone
Administrative Expenses - Standalone Administrative Expenses - Rs. HY'15 HY'14 Var % Q2'15 Q1'15 Var % Mn Personnel Cost 5,928 5,643 -5% 2,973 2,956 -1% Premises Cost 1,948 1,857 -5% 1,017 930 -9% Outsourced service charges 2,130 1,785 -19% 1,149 981 -17% including sales commission Advertisement and
Slide 16: UBL OMNI – Branchless Banking
UBL OMNI – Branchless Banking UBL OMNI ■ UBL Omni launched mobile merchant payments in 2015 via which Commercial Launch: No of Accounts: April 2010 1.81 Million customers and merchants can use Omni mobile app to make No of Agents: 27,800+ payments for purchases – A first in Pakistan. Biometric accou
Slide 17: Financial ratios – Consolidated (1/3)
Financial ratios – Consolidated (1/3) QTD Full Year DuPont (Annualized) 2010 2011 2012 2013 2014 Mar-15 Jun-15 Spread (Standalone) 1 5.5% 5.6% 4.7% 4.0% 4.4% 4.6% 4.6% Net Interest Margin (Standalone) 2 7.0% 7.2% 6.4% 5.4% 5.7% 5.9% 5.9% Non Interest Yield 3 1.6% 1.7% 2.2% 2.0% 2.0% 2.3% 2.0% Admin
Slide 18: Financial ratios – Consolidated (2/3)
Financial ratios – Consolidated (2/3) QTD Full Year Asset Quality (Annualized) 2010 2011 2012 2013 2014 Mar-15 Jun-15 Gross NPLs / Gross Loan 12.9% 13.4% 13.6% 11.9% 11.1% 11.4% 10.9% Net NPLs / Gross Loan 3.6% 2.9% 3.4% 2.2% 2.4% 2.3% 2.2% Coverage Ratio 69.0% 78.1% 74.6% 81.1% 78.5% 79.5% 79.8% Pr
Slide 19: Financial ratios – Consolidated (3/3)
Financial ratios – Consolidated (3/3) QTD Full Year Other Metrics (Annualized) 2009 2010 2011 2012 2013 2014 Mar-15 Jun-15 Capital Adequacy Ratio 14.0% 15.0% 14.9% 14.8% 13.3% 14.3% 14.6% 14.8% Loan / Deposits 73.7% 62.8% 57.5% 55.0% 50.0% 51.8% 47.6% 46.5% 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 11.2 Rs Bn 9.3 8.4 8.3 7.8 8.0 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 Q2'15 21
Slide 22: Profit after Tax
Profit after Tax 7.1 Rs Bn 6.1 5.7 5.6 5.3 5.3 5.2 4.9 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 Q2'15 22
Slide 23: Deposits
992 Deposits 945 Rs Bn 895 828 847 858 866 773 752 685 698 703 653 614 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 Q2'15 23
Slide 24: Net Advances
Net Advances 434 430 417 420 408 Rs Bn 391 369 377 364 363 358 355 352 345 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 Q2'15 24
Slide 25: Net Interest Income
Net Interest Income 14.2 13.1 12.8 Rs Bn 11.3 10.6 11.0 9.9 9.8 9.6 9.6 9.4 9.5 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 Q2'15 25
Slide 26: Provisions
Provisions 1.9 Rs Bn 1.3 1.1 0.9 0.8 0.8 0.7 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 Q2'15 26
Slide 27: Non Funded Income
Non Funded Income 6.2 6.2 Rs Bn 5.5 5.1 5.0 4.8 4.6 4.8 4.5 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 Q2'15 27
Slide 28: Revenue
Revenue 20.3 19.3 Rs Bn 17.6 16.3 15.5 15.4 15.4 13.8 14.9 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 Q2'15 28
Slide 29: Administrative Expenses
Administrative Expenses 8.0 7.6 7.2 7.1 7.3 Rs Bn 6.9 6.9 6.5 6.5 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 Q2'15 29
Slide 30: Forward-looking statements
The information contained herein reflects our latest business statement as at Jun 30, 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 Gai 31