United Bank For Africa Plc · NSENG:UBA
United Bank For Africa — FY2016 Earnings Presentation
19 slides from United Bank For Africa's earnings presentation, April 2017
Slide 1: Management Presentation: Audited 2016FY Results
MANAGEMENT PRESENTATION AUDITED 2016FY RESULTS A P R I L 2 0 1 7
Slide 2: Disclaimer and Note of Caution
Disclaimer and Note of Caution From time to time, the Bank makes written and/or oral forward-looking statements. These are included in this presentation and in other communications. In addition, representatives of the Bank may make forward-looking statements orally to analysts, investors, the media
Slide 3: Presentation Outline
Presentation Outline Evolution of UBA and Footprints Macroeconomic Environment 2016 Full Year Performance Review Review of 2016FY Performance Guidance and 2017 Targets Questions Audited 2016 Full Year Results Presentation ::: April 2017 3
Slide 4: Evolution of UBA Plc
Evolution of UBA Plc Acquired majority interest in two banks based in B/Faso and Benin Successfully raised N20bn debt capital UBA merged with Standard Commenced operations in Won Financial Times’ Trust Bank some African countries Bankers’ Awards for French & British Standard Trust Continental Trust
Slide 5: UBA Profile at a Glance
UBA Profile at a Glance A truly Pan-African Bank, with operations across 19 key un(der)banked African markets A unique and scalable platform to take full advantage of growth opportunities in all sectors of the African economy o Third largest bank in Nigeria, with an estimated c.10% market share o Th
Slide 6: Operating Environment...it was as challenging as ever
Operating Environment…it was as challenging as ever o The International Monetary Fund (IMF) revised downward the global growth outlook by 10bps to 3.1%, largely due to the downside risk that “Brexit” presents; uncertainties about trade and capital flows 2016 Commodity Price Perfroamance o Africa’s G
Slide 7: Nigeria: Key macroeconomic development and impact
Nigeria : Key macroeconomic development and impact Policies remain tight Monetary Policy to stem exchange rate and inflationary MPC MPC increased MPR by 100bps in March to 12% pressures and another 200bps hike to 14% in July. MPR Decisions CRR MPC mandated the CBN to adopt a flexible 14.0% 22.5% exc
Slide 8: 2016 Full Year Results Snapshot ::: Proven Resilience
2016 Full Year Results Snapshot ::: Proven Resilience 31-Dec-16 31-Dec-15 % Change Gross Earnings 383,647 314,844 +21.9% Net Interest Income 165,200 133,599 +23.7% COMPREHENSIVE INCOME & PROFIT Net Operating Income 270,889 210,257 +28.8% TREND (N’million) Operating Expenses (152,501) (136,640) +11.6
Slide 9: 2016 Full Year Results Snapshot: Gross Earnings
2016 Full Year Results Snapshot ::: Proven Resilience Gross earnings Trend (N’billion) Gross earnings by source Interest Income Non-Interest Income 384 315 30% 31% 26% 31% 287 265 70% 69% 74% 69% 2013FY 2014FY 2015FY 2016FY 2013FY 2014FY 2015FY 2016FY Gross earnings split by geography Nigeria Africa
Slide 10: 2016 Full Year Results Snapshot: Operating Income and Profit
2016 Full Year Results Snapshot ::: Proven Resilience Operating Income (N’billion) Profit Before Tax (N’billion) 271 91 205 186 68 164 56 56 2013 2014 2015 2016 2013 2014 2015 2016 Return on Average Equity/Assets (%) • A strong 29% growth in operating income, reflecting the simultaneous growth in bo
Slide 11: 2016 Full Year Results Snapshot: Margins and Cost-to-Income
2016 Full Year Results Snapshot ::: Proven Resilience Net Interest Margin (%) Cost of Funds (%) 6.7% 4.0% 6.3% 3.8% 3.7% 5.9% 6.0% 3.6% 2013 2014 2015 2016 2013 2014 2015 2016 • Net interest margin (NIM) improved 360bps to 6.7%, reflecting lower cost Cost-to-Income Ratio (%) of funds (CoF) as we dee
Slide 12: 2016 Full Year Results Snapshot: Total Assets and Funding
2016 Full Year Results Snapshot ::: Proven Resilience Total Assets (N’trillion) Funding Structure 3.5 9.3% 11.2% 12.7% 4.7% 3.0% 4.0% 3.4% 7.4% 9.9% 2.8 2.8 Deposits 2.6 Debt Others 82.0% 78.4% 74.0% Equity 2013 2014 2015 2016 2014 2015 2016 Composition of Total Asset Portfolio Other Assets o Largel
Slide 13: 2016 Full Year Results Snapshot: Loan Book and NPL Ratio
2016 Full Year Results Snapshot ::: Proven Resilience Total Loan Book (N’trillion) NPL Ratio (%) 1.6 3.9% 1.1 1.1 1.0 1.6% 1.7% 1.2% 2013 2014 2015 2016 2013 2014 2015 2016 Loan Book Distribution by Sector o Partly driven by Naira devaluation, the loan book grew 45% in nominal terms. Isolating the i
Slide 14: 2016 Full Year Results Snapshot: Capital and Liquidity Ratios
2016 Full Year Results Snapshot ::: Proven Resilience Equity-to-Total Assets Ratio (%) Liquidity Ratio (%) UBA Liquidity Ratio Regulatory Requirement 12.7% 53% 12.0% 45% 10.0% 39% 9.0% 2013FY 2014FY 2015FY 2016FY 2014FY 2015FY 2016FY Capital Adequacy Ratio (%) Loan-to-Deposit Ratio (%) UBA BASEL II
Slide 15: 2017 Outlook
Burkina Faso Senegal Benin Chad Guinea Ivory Nigeria Uganda Sierra Coast Leone 2017 Outlook Liberia Ghana Cameroon Kenya Gabon DR Congo Tanzania Congo Zambia Mozambique Audited 2016 Full Year Results Presentation ::: April 2017 15
Slide 16: The Four Tactical Strategic Thrusts
The Four Tactical Strategic Thrusts 1 Earnings Optimization 2 Cost Efficiency o Achieve higher yields on assets, through (right) pricing; new o Improve efficiency of centralized operations mix of LCY/FCY assets, and asset allocation o Continuous migration of customers to low cost o Increase transact
Slide 17: Review of 2016 Guidance and 2017 Targets
Review of 2016 Guidance and 2017 Targets Headline 2015FY 2016 Forecast 2016 Actual Remark 2017 Forecast Net Interest Margin 6.30% ≈6.3% 6.70% Outperform >6.5% Cost-to-Income Ratio 67% <65% 63% Outperform ≈60% Cost of Risk 0.5% ≈1 % 1.8% Underperform ≈1.5% NPL Ratio 1.8% 2.5% 3.9% Underperform 3.5% L
Slide 18: Our Shared Values
Our Shared Values Audited 2016 Full Year Results Presentation ::: April 2017 18
Slide 19: Questions & Answers
Conclusion Questions & Answers Audited 2016 Full Year Results Presentation ::: April 2017 19
United Bank for Africa — FY2016 Earnings Presentation on 6ix