United Bank For Africa Plc · NSENG:UBA
United Bank For Africa — Investor Day (December 2007)
26 slides from United Bank For Africa's investor day presentation, Dec 3, 2007
Slide 1: Building Africa's Global Bank
Building Africa’s Global Bank United Bank for Africa Plc Tony Elumelu, Group Managing Director & CEO UBA 2007 Investors Forum Lagos 3 December 2007
Slide 2: Forward looking statements
Forward looking statements Presentation and subsequent discussion may contain certain forward-looking statements with respect to the financial condition, results of operations and business of the Group. These forward- looking statements represent the Group’s expectations or beliefs concerning future
Slide 3: Exceeding expectations
Exceeding expectations Result Forecast Balance sheet N1.6 trillion 18% N1.4 trillion Capital Adequacy 25% 5% 20% Profit Before Tax N29.5 billion 43% N20.7 billion Earnings per share N2.61 40% N1.87 Dividend per share N1.20 20% N1.00 www.ubagroup.com 3
Slide 4: 2007 Scorecard
2007 Scorecard
Slide 5: Largest financial services provider in Nigeria
Largest financial services provider in Nigeria Assets (N billion) 1,600 = 89% 1,200 R C AG 1,191 800 884 400 251 0 2005 2006 2007 Note: UBA changed its financial year end from March to September in 2006. September 2006 results represent 18 months of trading www.ubagroup.com 5
Slide 6: Retail deposit taking institution
Retail deposit taking institution Deposits (N billion) 1,200 = 86% C AG R 800 972 776 400 205 0 2005 2006 2007 Note: UBA changed its financial year end from March to September in 2006. September 2006 results represent 18 months of trading www.ubagroup.com 6
Slide 7: Rapidly growing loan book
Rapidly growing loan book Loans & advances (N billion) 500 400 = 86% R 300 CAG 320 200 100 110 68 0 2005 2006 2007 Note: UBA changed its financial year end from March to September in 2006. September 2006 results represent 18 months of trading www.ubagroup.com 7
Slide 8: High quality asset base
High quality asset base Assets by type Loans by type Other (12%) Retail (45%) Loans (27%) Financial institutions (48%) Corporate (55%) T-bills + CBN (13%) www.ubagroup.com 8
Slide 9: Steady improvement in asset quality
Steady improvement in asset quality NPL ratio¹ Comments Spike in 2006 due to merger provisions 12.6% Improvement in 2007 due to strong risk management and aggressive recoveries Average maturity of the portfolio is less than one 4.4% year 3.5% Provisions in line with regulatory prudential guidelines
Slide 10: Measured top-line growth
Measured top-line growth Gross earnings (N billion) 120 GR = 78% 100 CA 109.5 80 90.4 60 40 20 26.1 0 2005 2006 2007 Note: UBA changed its financial year end from March to September in 2006. September 2006 results represent 18 months of trading www.ubagroup.com 10
Slide 11: Healthy interest margins and fee income
Healthy interest margins and fee income Operating income (N billion) = 6 6% CA GR 81 63 56% 48% 23 49% 52% 44% 51% 2005 2006 2007 Fee income Net interest margin Note: UBA changed its financial year end from March to September in 2006. September 2006 results represent 18 months of trading www.ubagrou
Slide 12: Strong cost control
Strong cost control Cost-to-income ratio 100% 77.9% 75% 71.1% 61.7% 50% 2005 2006 2007 Note: UBA changed its financial year end from March to September in 2006. September 2006 results represent 18 months of trading www.ubagroup.com 12
Slide 13: Rapid profit growth
Rapid profit growth Profit before tax and exceptional items (N billion) 35 30 8 3% G R= 29.5 25 CA 20 15 10 12.8 5 6.5 0 2005 2006 2007 Note: UBA changed its financial year end from March to September in 2006. September 2006 results represent 18 months of trading www.ubagroup.com 13
Slide 14: Delivering shareholder returns
Delivering shareholder returns Earnings & dividends per share (N) N EPS DPS 3.00 2.61 2.50 1.87 2.00 1.50 1.00 1.20 0.50 1.00 0.00 2006 2007 Note 1: UBA changed its financial year end from March to September in 2006. September 2006 results represent 18 months of trading Note 2: 2007 EPS based on wei
Slide 15: High share price growth
High share price growth Share price performance (N) 60.00 UBA Suspension during Public 50.00 Offer 40.00 Relative NSE index 30.00 20.00 7 06 07 07 7 r-0 l- 0 - - n- ct ct Ju p Ja A O O www.ubagroup.com 15
Slide 16: Capital structure
Capital structure Shareholders Comments 11,496,779,980 fully diluted Foreign outstanding shares including institutions (19%) 205,600,000 shares pending listing Foreign institutions include IFC and Staff (5%) African DB Ratios Other (23%) Total Balance sheet: N1.6 trillion Local CAR: 25% (min. 10%) i
Slide 17: International expansion
International expansion UBA Capital London UBA West Africa Nigeria UBA East Africa Ghana Uganda Cote d’Ivoire Liberia Sierra Leone Burkina Faso UBA Central Africa Cameroun UBA New York www.ubagroup.com 17
Slide 18: Future outlook (2007-2010)
Future outlook (2007-2010)
Slide 19: Overall strategic approach
Overall strategic approach 3 escalating levels of focus: Phase 3 Global Phase 2 ... become Africa leading Phase 1 emerging Nigeria markets bank ...move into with global STB/UBA footprint in all all African merger … created regions... international the leading financial financial centres institution
Slide 20: 3-year strategic intent (2010)
3-year strategic intent (2010) Parameters Objectives Nigerian Ranking Size: Total assets Deposit base #1 Gross earnings Branch/ATM network Profitability: PBT ROE Enterprise Value: Market capitalization Sub-Saharan Africa Ranking Top 6 Global Ranking Top 300 African Presence 30 countries Global Ranki
Slide 21: Top 6 bank in Sub-Saharan Africa
St an da rd Ba Fi nk 0 50 100 150 200 250 300 350 rst (S Ra A nd ) (S A A BS ) N A ed Ba (SA Na ) t io In nk ( na v es S A lB te ) an c k ( SA of ) Eg Ba U y pt nk BA M (2 G ISR 01 0) ro (E g Balance sheet (US$ billion) up Source: UBA average growth rate projections BE yp e Lib A t) C Ba ya (A re di
Slide 22: 3-year financial goals
3-year financial goals Balance sheet (N billion) 4,500 CAGR: 33% for balance 3,000 sheet 41% for total assets 1,500 37% for deposit base 0 2007 2008 2009 2010 Balance sheet size Total assets Deposit base www.ubagroup.com 22
Slide 23: 3-year financial goals
3-year financial goals Earnings (N billion) 350 300 250 200 150 100 50 0 2007 2008 2009 2010 Gross earnings Profit before tax CAGR of: 43% for gross earnings 59% for PBT www.ubagroup.com 23
Slide 24: More than just a bank
More than just a bank
Slide 25: A bank holding company
A bank holding company Nigeria Investment Retail International Insurance Banking Banking Banking Banking Corporate Global markets Microfinance North/ West/ Life insurance banking bank Central Africa Asset Insurance Energy banking management Retail financial East/ South broking services Africa Presti
Slide 26: Africa's Global Bank - Q&A
Q&A AFRICA’S GLOBAL BANK www.ubagroup.com 26
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