United Bank Limited · PSX:UBL
United Bank — Investor Presentation (October 2024)
14 slides from United Bank's investor presentation, Oct 30, 2024
Slide 1: Investor Presentation Corporate Briefing Session
Investor Presentation Corporate Briefing Session October 30, 2024
Slide 2: Achieving the Right Balance Across the Interests of Each Stakeholder
Achieving the Right Balance Across the Interests of Each Stakeholder Motivated and Competent Employees | Low Staff Turnover | High Customer Service | Higher Profitability | Higher ROE | Higher Dividends Fairness across all the stakeholders – Employees, Customers and Shareholders Undefined Clearly De
Slide 3: Competent, Engaged and Dedicated Employees are Better Serving Customers
Competent, Engaged and Dedicated Employees are Better Serving Customers • 59 new staff has been added to Middle and Senior Management in 2023 and 2024 • Compensation has been made Fair and Market Based • First Bank in the country to introduce Inflation Allowance for over 75% of its employees Employe
Slide 4: Building Shareholder Value with Combination of Growth and Payouts
Building Shareholder Value with Combination of Growth and Payouts UBL’s strategy in the last 18 months has been to build shareholder value through a combination of high growth in business and maximizing dividend payouts Building Shareholder Value Achieving industry leading Earnings and Payout growth
Slide 5: Current Accounts – Most Important Indicator for Banking Sector in Pakistan
Current Accounts – Most Important Indicator for Banking Sector in Pakistan Total Non-Remunerative Current Account UBL GCC Current Account Growth Between December 2022 and June 2024 UBL has grown by Highest ever CA growth in UBL GCC 58% compared to industry growth of 38% for same period 1,400 12.0% 1
Slide 6: Strong Growth Across Trade and Remittance Business
Strong Growth Across Trade and Remittance Business Remittance Volume Trade Market Share 33% Growth in Remittance Volumes 6.0 5.4 10.0% 8.7% 5.0 7.9% 8.0% US$ Billion 6.5% 4.1 4.0 6.0% 4.0% 3.0 2.0% 2.0 0.0% 9M 2023 9M 2024 FY 2022 FY 2023 9M 2024 US$ Billion 9M 2023 9M 2024 US$ Billion FY 2022 FY 20
Slide 7: Optimized Capital Structure with High Growth
Optimized Capital Structure with High Growth Last 8 Quarter Dividends Consolidated 2022 2023 9M-2024 110 105 EPS 25.76 45.05 40.12 90 79 DPS 22.00 44.00 33.00 Rupees in Billion 75 70 CAR 17.4% 14.6% 19.2% 50 35 34 26 30 10 UBL MEBL MCB BAHL HBL BAFL • UBL dividend payout of Rs 105 Billion in the las
Slide 8: Bank Positioned to Sustain Profit & Payouts at Lower Interest Rates
Bank Positioned to Sustain Profit & Payouts at Lower Interest Rates Portfolio Composition Amount Yield T-Bill 3,268 20.51% Fixed 1,159 15.92% Floating 1,558 20.91% Total 5,986 19.73% • Aggressive T-Bill and Fixed Bond positions have been key to hedge the risk of lower interest rates • Today the risk
Slide 9: Investment Portfolio and Borrowing Position
Investment Portfolio and Borrowing Position Fixed Income Portfolio Fixed Income Portfolio (carrying value) 1,159 Average Duration 2.03 years Yield to Maturity 15.92% Borrowing Position OMO Borrowing 4,160 Total T-Bills Portfolio 3,268 Yield on T-Bills Portfolio 20.51% T-Bill Maturities till December
Slide 10: UBL International – Re-balancing the International Portfolio Towards Quality Assets
UBL International – Re-balancing the International Portfolio Towards Quality Assets . Dec-22 Dec-23 Sep-24 Non-Investment Grade 508 291 89 Investment Grade 185 512 980 Share of Investment Grade Portfolio % 27% 64% 92% International Bond Portfolio has been substantially de-risked with 92% composition
Slide 11: UBL Relative Share Performance (Total Return) since January 2023
UBL Relative Share Performance (Total Return – dividend and capital gain) since January 2023 450% 405% 400% 350% 300% 250% 215% 214% 213% 212% 200% 172% 150% 100% 50% 0% UBL MCB MEBL BAFL BAHL HBL UBL MCB MEBL BAFL BAHL HBL Dividend 188% 89% 72% 91% 108% 53% Capital Gain 217% 126% 142% 122% 104% 119
Slide 12: Thank You
Thank You 12
Slide 13: P&L Review - Standalone
P&L Review - Standalone Rs in bln FY'22 FY'23 Var % 9M'23 9M'24 Var % Interest Earned 250.7 521.4 108% 337.2 825.9 145% Interest Expensed (147.5) (378.5) -157% (230.6) (720.7) -213% Net Interest Income 103.2 142.9 38% 106.6 105.2 -1% Non Interest Income 34.4 22.9 -34% 22.9 61.3 167% Total Revenue 13
Slide 14: BS Review - Standalone
BS Review - Standalone Rs in bln Balance Sheet Dec'23 Sep'24 Advances 614 619 Investments 4,385 6,425 FI Lendings 34 1 Others 542 665 Total Assets 5,575 7,711 Deposits 2,341 2,828 Borrowings 2,815 4,304 Subordinated Debts 10 10 Others 156 255 Total Liabilities 5,322 7,398 Net Assets 253 313 Share Ca