Union Bank Of Colombo Plc · CSELK:UBC.N0000
Union Bank Of Colombo — FY2015 Earnings Presentation
23 slides from Union Bank Of Colombo's earnings presentation, February 2016
Slide 1: Investor Presentation Feb 2016
Investor Presentation Feb 2016 1
Slide 2: Vision
Vision We are geared to deliver a bold new world 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 2
Slide 3: Mission
Mission To our customers we provide the means of economic upliftment through customized banking and financial services. To our shareholders we provide a return on their investment above industry norm. To our staff we are a learning and innovative organization providing opportunities for faster caree
Slide 4: Key Company Milestones
Key Company Milestones 1995-2000 2001-2010 2011-2013 2014-2015 Established as the 8th Restructuring of the bank Listed in the CSE, TPG through its affiliate indigenous Commercial through a Sampath Bank Highest Culture Finance Holding Bank led consortium oversubscribed IPO strikes landmark deal with
Slide 5: Increasing footprint and reach
Increasing footprint and reach Num. of Branches Province 2014 2015 Western 23 26 North Western 7 7 5 Southern 7 7 Central 5 5 North Central 5 5 Northern 5 5 5 Sabaragamuwa 5 5 Eastern 2 2 7 Uva 2 2 2 Total 61 64 5 5 26 2 Channels 2012 2013 2014 2015 Branches 36 51 61 64 7 ATMS 35 50 61 103 We are ra
Slide 6: New branch outlook
New branch outlook 22 branches were refurbished during the year 6
Slide 7: Elite Circle launched
Elite Circle launched 7
Slide 8: People Management
People Management Select Select, recruit and promote based on competency. Position UB as an employer of choice externally. Develop capability so that employees are equipped to Develop do their jobs as well as develop within the Bank. Engage and energize employees so that they can perform Energize at
Slide 9: Financial Overview - Bank
Financial Overview - Bank “ 2015 was a significant year of growth and preparation, in which we laid a strong foundation that would become the launch pad for robust growth in the ensuring years” – CEO 9
Slide 10: Snapshot 2015 – Strong Performance
Snapshot 2015 – Strong Performance 2015 LKR Mn YoY Growth Net Interest Income 2,021 15% Total Operating income 2,839 24% Operating Cost 2,335 42% Net Profit for the period 193 238% Loans and Advances 40,095 55% Customer Deposits 37,653 35% Total Assets 71,005 45% Profit for Shareholders grew by 238%
Slide 11: Financial Performance – Income Statement
Financial Performance – Income Statement YoY 2015 2015 Growth Net Interest Income 2,021 15% Net Fee and commission income 181 18% Net Trading and other operating income 637 69% Total Operating income 2,839 24% Operating Cost 2,335 42% Impairment 177 -67% Net profit before taxes and VAT on FS 328 191
Slide 12: Revenue Generation
Revenue Generation LKR Mn 5,000 5.00% 4.50% Incremental Income 2015 LKR Mn YoY 4,000 4.00% 3.50% NII 259 15% 3,000 3.00% 2,021 2.50% Fee Income 27 18% 2,000 1,734 2.00% 1,233 982 1,155 1.50% Trading & Others 260 69% 1,000 1.00% 0.50% - 0.00% 2011 2012 2013 2014 2015 NII NIM Industry NIM Source: CBSL
Slide 13: Operating Expenses
Operating Expenses Incremental cost 2015 LKR Mn YoY Staff Cost Staff Cost 333 50% D&A Depreciation & 66 25% Amortization Other Operating cost Other Operating cost 296 42% 2014 2015 Cost to income ratio % Operating Expenses (LKR Mn) 81.8% 2,335 Expense distribution 2014 2015 72.9% Staff Cost 40% 43%
Slide 14: Statement of financial position – (Bank)
Statement of financial position – (Bank) LKR Mn YoY Total Assets (LKR Mn) Cash and balances with banks 2,811 17% 71,005 Reverse REPO 1,513 -86% 48,990 Placement with banks 284 284% Loans & Receivables 40,095 55% Investment in units 7,985 327% 2014 2015 Other interest earning assets 14,709 195% Loans
Slide 15: Financial Position - Composition of the Balance Sheet
Financial Position - Composition of the Balance Sheet Segmental dispersion of Loans Loans - 56% 6% 42% Corporate Assets SME Treasury Assets - 32% Retail 52% Product composition of Deposits Deposits - 53% 6% 8% Funding 16% CA SA Borrowings - 22% FD CD 69% 15
Slide 16: Financial Position - Balance Sheet growth
Financial Position - Balance Sheet growth 2014 2015 Union Bank Growth 55% Loans Industry Growth 20-23% Est. Union Bank Growth 35% Deposits Industry Growth 17-20% Est. Union Bank Growth 45% Total Assets Industry Growth 18-20% Est. Source : Based on research estimates 16 * The industry data is based o
Slide 17: Financial Position - Loan Growth & Capital Adequacy
Financial Position - Loan Growth & Capital Adequacy Loans and Receivables 2015 6% LKR Mn 45,000 42% 52% 40,000 35,000 30,000 25,000 20,000 2014 Corporate SME Retail 15,000 10,000 40% 5,000 - 2011 2012 2013 2014 2015 60% Capital Adequacy Corporate SME 45% 40% 35% 30% 25% 20% We maintained a healthy 1
Slide 18: Financial Position - Deposit Growth & CASA
Financial Position - Deposit Growth & CASA Customer Deposits LKR Mn 40,000 35,000 6% 8% 30,000 16% 25,000 CA 20,000 SA 15,000 FD 10,000 CD 5,000 - 69% 2011 2012 2013 2014 2015 CASA LKR Mn 10,000 30% 8,000 25% 20% 6,000 4,000 15% CASA grew by 31% in 2015 10% 2,000 5% - 0% 2011 2012 2013 2014 2015 CAS
Slide 19: Asset quality overview
Asset quality overview Gross NPL – Last 18 months Sector wise Exposure 16.00% 23% 14.00% 25% 12.00% 10.00% 8.00% 12% 6.00% 23% 4.00% 18% 2.00% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Note: Based on CBSL classification Traders Manufacturing 2014 2015 Financial and Busi
Slide 20: Key Indicators - Bank
Key Indicators - Bank Performance Indicators 2014 2015 Return on Equity 0.7% 1.1% Return on Assets 0.1% 0.3% Net Interest Margin 4.2% 3.4% Gross - Non Performing Loans 8.3% 3.6% Net – Non Performing Loans 7.4% 2.7% Total Capital Adequacy 41.5% 23.6% Net Asset value per share (Rs) 15.50 15.35 2014 20
Slide 21: Financial Performance – Group
Financial Performance – Group YoY 2015 2015 Growth Net Interest Income 2,440 24% Net Fee and commission income 343 17% Net Trading and other operating income 652 36% Total Operating income 3,436 25% Operating Cost 2,747 38% Impairment 260 -51% Net profit before taxes and VAT on FS 428 84% Taxes incl
Slide 22: Statement of financial position – (Bank)
Statement of financial position – (Bank) LKR Mn YoY Total Assets (LKR Mn) Cash and balances with banks 3,015 12% 76,542 Reverse REPO 1,619 -85% 52,558 Placement with banks 294 58% Loans & Receivables 45,450 56% Investment in units 7,985 327% 2014 2015 Other interest earning assets 14,135 227% Loans
Slide 23: Corporate Information
Corporate Information Board of Directors Legal Form Name Title A Public Limited Liability Company incorporated in Sri Lanka under the Companies Act No. 17 of 1982. Re-registered under the P. Jayendra Nayak Chairman Companies Act No. 7 of 2007. Listed as a public quoted Company Alexis Lovell Deputy C