Slide 1: United Bank Limited Performance Review September 2012
United Bank Limited Performance Review September 2012 1
Slide 2: Key Highlights
Key Highlights • Standalone PAT up 28% YoY to Rs 14.1 bn. Consolidated PAT up 42% YoY to Rs 15.0 bn for 9M’ 12 • Net interest income down 2% YoY to Rs 29.1 bn o NII reduced YoY due to the lower rate environment, higher investment in mutual funds and increase in minimum PLS saving deposits rate from
Slide 3: Key Highlights
Key Highlights • Provisions are down by 47% YoY to Rs 3.4 bn o Excluding the sovereign guaranteed NPL, coverage ratio has improved to 83% in Sep’12. The domestic coverage has increased from 81% to 84% o NCL ratio improved to 1.2% in 9M’12 compared to 2.6% in 9M’11 • Administrative expenses are up Yo
Slide 4: Income Statement - Standalone
Income Statement - Standalone YTD YTD Var % Q3'12 Q2'12 Var % PKR Bn Sep'12 Sep'11 Interest Earned 55.47 52.53 6% 19.21 18.56 4% Interest Expensed (26.33) (22.90) -15% (9.29) (8.95) -4% Net Interest Income 29.14 29.63 -2% 9.93 9.61 3% Non Interest Income 13.17 8.94 47% 5.49 3.59 53% Total Revenue 42
Slide 5: Income Statement - Consolidated
Income Statement - Consolidated YTD YTD Var % Q3'12 Q2'12 Var % PKR Bn Sep'12 Sep'11 Interest Earned 56.69 53.20 7% 19.73 18.94 4% Interest Expensed (26.81) (23.07) -16% (9.51) (9.08) -5% Net Interest Income 29.88 30.12 -1% 10.22 9.86 4% Non Interest Income 14.88 9.25 61% 6.56 3.95 66% Total Revenue
Slide 6: Share Info
Share Info Trends - KSE 100 Index & UBL's Share Price Thousands Book value per share - Standalone 95 18 100 75 Cons. Equity Sep’12 – Rs 97 Bn 81 15 85 64 Cons. BV - Rs 79.5 per share Book Value - Rs. Bn Book value per share 67 12 70 53 53 10 55 42 Max 2012 : 91.17 Min 2012 : 52.65 39 7 40 31 Latest
Slide 7: Key Ratios - Bank
Key Ratios - Bank Balance Sheet Ratios Sep'12 Dec-11 Sep'12 Jun'12 Adva nces / Depos i ts 59% 57% 59% 56% As s et Qua l i ty 14.0% 14.0% 14.0% 13.7% Covera ge 79% 80% 79% 77% YTD YTD Financial Ratios Q3'12 Q2'12 Sep'12 Sep'11 Yi el d on P. Adva nces 11.9% 13.1% 11.6% 12.2% Cos t of Depos i ts 4.4% 4
Slide 8: Deposits Structure (Bank level)
Deposits Structure (Bank level) Cost of Deposits Deposits - Bank Cost of Deposits Dec'11 Sep'12 5.2% PE - PE - Bank Rs.Bn COF% Rs.Bn COF% 4.4% Domestic deposits 495 4.8% 511 4.7% 3.6% International deposits 118 2.3% 142 3.3% 2.8% Total Bank 613 4.3% 653 4.4% 2.0% International $ 1,313 2.3% 1,496 3.3
Slide 9: Net Advances
Net Advances % Net Advances - Rs. Bn Dec'11 Sep'12 Change Corporate Bank 155.2 175.1 +13% Commercial * 69.0 72.9 +6% Consumer 11.3 9.7 -14% Others 6.0 8.0 33% Total Domestic 241.4 265.7 10% International 83.9 89.8 +7% Bank 325.3 355.5 9% International US$ Mn 933.0 946.7 +1% * of which commodity adva
Slide 10: International Advances
oa heats of Privatization UNITED BANEK oo International Advances | __By Geography _| | By Business - UAE | Yemen, 12% Qatar, 11% NewYork, 0% Bahrain, 13%, EPZ, 0% UAE, 64% Consumer, 18% Personal Abu loan, 11% Dhabi, 24% Baitna, 87% 10
Slide 11: Spread Analysis – Bank Level
Spread Analysis – Bank Level Bank YTD Septem ber 2012 YTD Septem ber 2011 YTD Septem ber 201 Avg.Yield Avg.Yield Rs Bn PE AVG IE /Cost PE AVG IE /Cost Avg KIBOR - 3M 11.6% 13.5% Interest Earning Assets Performing Advances 328 316 28.2 11.9% 299 298 29.2 13.1% Corporate 158 154 15.0 13.0% 125 131 14.
Slide 12: Concentration of Advances – Standalone-Sep’12
Concentration of Advances – Standalone-Sep’12 Trading, 4% Airlines, 2% Agribusiness, 13% Automobile & Trans. Textile, 14% Equip., 1% Cement, 1% Telecom, 2% Chemical and pharmaceuticals, 2% Contractor / Sugar, 3% Constructor, 6% Fertilizer dealers, 2% Financials, 2% Prod. & Transmission Energy, 17% F
Slide 13: Non Markup / Return / Interest Income
Non Markup / Return / Interest Income YTD YTD Non Fund Income - Rs. Mn Var % Q3'12 Q2'12 Var % Sep'12 Sep'11 Fee, commission and brokerage income 5,914 4,992 18% 1,949 2,098 -7% Dividend income 1,521 430 254% 78 633 -88% Income from dealing in foreign currencies 1,533 1,517 1% 486 479 2% Gain / (los
Slide 14: Fee Commission and Brokerage Income
Fee Commission and Brokerage Income YTD YTD Fee Commission Income - Rs. Mn Var % Q3'12 Q2'12 Var % Sep'12 Sep'11 Commission on trade 1,204 1,064 13% 387 386 0% Commission on consumer loan 564 684 -18% 155 192 -19% Commission on remittance / uniremote 793 622 28% 269 278 -3% Corporate service chgs/fi
Slide 15: Administrative Expenses
Administrative Expenses YTD YTD Administrative Expenses - Rs. Mn Sep'12 Sep'11 Var % Q3'12 Q2'12 Var % Personnel Cost 7,323 6,320 -16% 2,476 2,419 -2% Premises Cost 2,511 2,368 -6% 878 868 -1% Outsourced service charges 1,532 1,106 -38% 554 509 -9% including sales commission Advertisement and public
Slide 16: Financial ratios – Consolidated (1/3)
Financial ratios – Consolidated (1/3) YTD Q T D ( A n n u a liz e d ) DuPont 2009 2010 2011 S ep'12* Dec-11 Mar-12 Jun-12 S ep-12 Spread (St) 1 5.5% 5.5% 5.6% 4.8% 5.3% 5.0% 4.8% 4.7% Net Interest Margin (St) 2 6.9% 7.0% 7.2% 6.5% 6.9% 6.7% 6.5% 6.3% Non Interest Yield 3 2.1% 1.6% 1.7% 2.3% 1.9% 2.1
Slide 17: Financial ratios – Consolidated (2/3)
Financial ratios – Consolidated (2/3) Asset Quality YTD Q T D ( A n n u a liz e d ) 2009 2010 2011 Sep'12* Dec-11 Mar-12 Jun-12 Sep-12 Gross NPLs / Gross Loan 10.3% 12.9% 13.4% 13.3% 13.4% 14.9% 13.2% 13.3% Net NPLs / Gross Loan 3.0% 3.6% 2.7% 2.8% 2.7% 4.5% 3.1% 2.8% Coverage Ratio 70.9% 71.9% 80.1
Slide 18: Financial ratios – Consolidated (3/3)
Financial ratios – Consolidated (3/3) Yearly Other Metrics Q T D ( A n n u a liz e d ) 2009 2010 2011 Sep'12* Dec-11 Mar-12 Jun-12 Sep-12 Capital Adequacy Ratio 14.0% 15.0% 14.9% 15.1% 14.9% 13.7% 14.5% 15.1% Tier-I CAR 9.5% 10.4% 10.6% 10.4% 10.6% 9.6% 10.1% 10.4% Loan / Deposits 73.7% 62.8% 57.5%
Slide 19: Quarterly Trend Analysis
Quarterly Trend Analysis Bank Level 19
Slide 20: Profit before Tax
Profit before Tax 8.5 7.5 7.2 7.2 7.3 6.5 6.6 6.1 5.0 5.2 Rs Bn 4.8 4.9 4.3 4.3 4.4 3.7 2.5 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 20
Slide 21: Profit after Tax
Profit after Tax 5.5 4.9 4.7 4.5 4.5 4.7 4.2 3.9 3.4 3.3 Rs Bn 3.1 2.8 2.9 3.1 2.4 2.3 1.5 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 21
Slide 22: Deposits
Deposits 725 685 675 653 613 614 625 594 551 557 575 Rs Bn 529 525 500 491 475 451 425 Mar'10 Jun'10 Sep'10 Dec'10 Mar'11 Jun'11 Sep'11 Dec'11 Mar'12 Jun'12 Sep'12 22
Slide 23: Net Advances
Net Advances 370 358 359 355 345 348 343 Rs Bn 335 334 334 334 337 331 326 326 325 315 Mar'10 Jun'10 Sep'10 Dec'10 Mar'11 Jun'11 Sep'11 Dec'11 Mar'12 Jun'12 Sep'12 23
Slide 24: Net Interest Income
Net Interest Income 11.0 10.3 10.4 10.2 9.9 9.8 9.6 9.6 9.8 Rs Bn 9.1 9.2 9.2 8.6 8.6 8.4 8.2 8.0 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 24
Slide 25: Total Provision
Total Provision 3.0 2.6 2.3 2.4 2.1 2.1 1.9 1.9 1.9 1.6 1.8 Rs Bn 1.0 1.2 0.8 0.7 0.6 - Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 25
Slide 26: Non Fund Income
Non Fund Income 6.0 5.5 5.2 4.1 4.3 3.8 3.6 Rs Bn 3.5 3.0 3.0 2.8 2.9 2.6 2.4 2.4 2.6 1.8 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 26
Slide 27: Gross Revenue
Gross Revenue 16.4 15.4 15.1 13.7 13.4 13.6 13.2 13.8 13.0 Rs Bn 12.2 12.4 11.9 11.2 11.1 10.6 10.7 9.8 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 27
Slide 28: Administrative Expenses
Administrative Expenses 6.4 6.1 5.8 5.9 5.5 5.4 5.0 5.0 5.0 Rs Bn 4.9 4.7 4.8 4.5 4.4 4.3 4.1 3.8 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 28
Slide 29: Forward-looking statements
The information contained herein reflects our latest business statement as at September 30, 2012. 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 variatio
Slide 30: Thank You
UNITED BANE uo Thank You 30