United Bank Limited · PSX:UBL
United Bank — Q1 2010 Earnings Presentation
34 slides from United Bank's earnings presentation, Apr 27, 2010
Slide 1: United Bank Limited Performance Review 1Q 2010
United Bank Limited Performance Review 1Q 2010 April p 27,, 2010
Slide 2: Key Highlights (Bank only)
Key Highlights (Bank only) • PAT up 10% yoy at Rs. 2.8 B • Net Interest income up 3% – Mainly due to lower cost of funds (cost Mar’ 2009: 6.3%; Mar’ 2010: 4.7%) – Increase in average core deposits by 7% – Net interest margin (NIM) up to 7.1% (Mar’2009: 6.8%) • Non Interest income up 7% – Fee income
Slide 3: Key Highlights (Bank only)
Key Highlights (Bank only) • Bank expenses up by 4%; – Dom. Exp. up by 3% while average inflation at 13% yoy; Intl rupee exp.+8%; Intl dollar exp. +1% – Personnel cost are only up by 1%; headcount reduction by 875 (6%) to 13,872 from Mar’09 • Ad Advances reduced d d to t Rs. R 331B; 331B D Domestic
Slide 4: Summary
Summary y Mar 2010 Dec 2009 Change Assets ((PKR bn)) 606 640 -5% Advances (PKR bn) 340 362 -6% Market Share-Adv- DOM 8.6% 8.8% Deposits (PKR bn) 462 504 -8% Market Share-Deposits- DOM 8.1% 8.8% Online branches 928 928 - ATMs 412 412 - ROAA 1.8% 1.5% ROAE 16% 16% Credit Rating (JCR-VIS) (JCR VIS) AA+
Slide 5: Share Info
Share Info Mar 2010 Dec 2009 EPS (Rs/share-annual.) 90 9.0 78 7.8 BV/share (Rs/share) 54.6 55.0 Price* - (Rs /share) 61.0 58.6 P/E 6.8x 7.5x P/BV 1.1x 1.1x # of shares1 1,224 , 1,224 , 1 P ost bonus share s * Mar-10 P ric e dat e d A pril 22, 2010 * De c -09 P ric e dat e d Fe bruary 18, 2010 (pric
Slide 6: Income Statement (Bank only)
Income Statement (Bank ( only) y) QTD QTD 3 Month 3 Month (PKR bn) Mar'10 Dec'09 Var % Mar'10 Mar'09 Var % Net Interest Income 8.13 8.90 -9% 8.13 7.90 +3% Non Interest Income 2.43 3.31 -27% 2.43 2.27 +7% p g Revenue Operating 10.56 12.21 -14% 10.56 10.17 +4% Operating Expense (4.08) (4.33) +6% (4.08
Slide 7: Income Statement (Consolidated)
Income Statement (Consolidated) ( ) QTD QTD 3 Month 3 Month PKR (bn) Mar'10 Dec'09 Var % Mar'10 Mar'09 Var % Net Interest Income 8.27 9.00 -8% 8.27 8.01 +3% Non Interest Income 2.58 3.51 -26% 2.58 2.68 -4% Operating Revenue 10.85 12.50 -13% 13% 10.85 10.69 +2% Operating Expense (4.39) (4.61) +5% (4.
Slide 8: Balance Sheet
Balance Sheet % Mix- Mix- Mar'10 Dec'09 PKR (bn) Change Mar'10 Dec'09 Cash & bank balances 68.2 75.3 -9% 11% 12% Investments 140.6 137.7 +2% 23% 22% Advances 339.6 362.1 -6% 56% 57% Fixed assets 24.1 23.7 +1% 4% 4% * * * * * * * * * * * * Total Assets 605.5 640.4 -5% 100% 100% Deposits 462.4 503.8 -
Slide 9: Financial Ratios
Financial Ratios QTD QTD 3 month 3 month Mar'10 Dec'09 Mar'10 Mar'09 Loan/Deposits 73% 72% 73% 77% ROAE 16% 16% 16% 21% ROAA 1.8% 1.6% 1.8% 1.8% Cost/Income Ratio 51% 54% 51% 51% Gross NPLs/Gross Advances 11.3% 10.3% 11.3% 8.2% Net NPLs/Gross Advances 3.2% 3.0% 3.2% 2.7% Coverage Ratio 72% 71% 72% 6
Slide 10: Deposit Structure (Bank level)
Deposit p Structure (Bank ( level)) Deposit Mix (YTD March 2010) - Bank (Parent Company) Cost of Deposits QTD Mar'10 QTD Dec'09 Period Avg.Yield Period Avg.Yield Other Deposits – PKR 9bn end Rs B /Cost end Rs B /Cost Contribution 2% Cost 0.0% Saving deposits 165 4.9% 178 4.9% Fixed Deposits – PKR 13
Slide 11: Advances by Business
Advances by y Business % Net Advances-Rs.B Mar'10 Dec'09 Change Mix'10 Yield 10 Yield 09 Corporate Bank 150.3 150.1 +0% 60% 13.4% 14.3% Commercial Bank* 70.3 81.2 -13% 28% 14.7% 16.1% Consumer Bank 21.4 24.3 -12% 9% 17.3% 17.9% Others 8.5 9.3 -8% 3% 8.9% 10.2% Domestic 250.6 264.9 -5% 100% 14.0% 15.
Slide 12: Consumer Advances by Product
Consumer Advances by y Product 2008 2009 Mar-10 Yield Mar'10 24 25% 26% 20 18 20% 19% 22% 17% 16% 16 15% 17% 11 12 10 13% 8 9% 4 4 4 4 3 4 3 3 3 3 3 3 3 2 4% 1 1 0 0% Drive Address Credit Card Cashline Businessline Money % Mar'10 Dec'09 Change Mix'10 Yield 10 Yield 09 Drive 9.7 11.2 -13% 45% 16.7% 1
Slide 13: International Advances
International Advances By Geography By Business Yemen, 6% Qatar, 12% NewYork, 0.1% Bahrain, 11% EPZ, 0.3% Corporate, 72% UAE, 71% Consumer, 28% Abu Sharjah, Dhabi, 8% 16% % Personal Others, Others loan, 31% 7% Dubai, Baitna, 76% 62% 4/27/2010 13 3:10:15 PM
Slide 14: Spread Analysis - Bank Level
Spread p Analysis Analysis- y -Bank Level Bank QTD Mar 2010 QTD Mar 2009 Avg.Yiel Avg.Yiel Rs B PE AVG IE d /Cost PE AVG IE d /Cost Average Kibor 6M 12.4% 14.1% Interest Earning Assets Performing Advances 312 325 10.0 12.5% 343 352 12.2 14.1% Corporate 138 140 4.6 13.4% 149 153 5.7 15.2% Commercial
Slide 15: QTD – Net Interest Income (Bank Level)
QTD – Net Interest Income ((Bank Level)) Bank QTD Mar 2010 QTD Dec 2009 Avg.Yiel Avg.Yiel Rs B PE AVG IE d /Cost PE AVG IE d /Cost Average Kibor 6M 12.4% 12.6% Interest Earning Assets Performing Advances 312 325 10.0 12.5% 334 334 11.0 13.0% Corporate 138 140 4.6 13.4% 137 134 4.8 14.2% Commercial 2
Slide 16: Concentration of Advances
Concentration of Advances Automobile and Telecom, 2.4% Chemical and transportation Pharmaceuticals, 1.8% equipment, 1.4% Financial, 1.9% Fertilizer , 1.5% Others, 11.2% Airline/ Aviation, 1.6% Food industries, 1.9% Contractors, 0.5% Textile, 16.7% Agribusiness, 12.7% Sugar, 2.2% Cement, 1.4% Wholesa
Slide 17: Non Interest Income (PKR mm)
Non Interest Income ((PKR mm)) QTD QTD % 3month 3month % Mar'10 Dec'09 Change Mar'10 Mar'09 Change Comm.on Commodity Operations 2 185 -99% 2 0 +100% Commission on consumer loan 241 229 +5% 241 274 -12% Minimum balance charges 92 160 -42% 92 121 -24% Commission on trade 393 383 +3% 393 329 +19% Commi
Slide 18: Operating Expenses
Operating p g Expenses p QTD QTD 3month 3month Operating Cost - Rs. M Mar'10 Dec'09 Var % Mar'10 Mar'09 Var % Personnel cost 1,899 1,862 -2% 1,899 1,879 -1% Early Retirement Scheme 49 76 +35% 49 34 -45% 45% Outsourced cost/commission 331 336 +2% 331 343 +4% Premises cost 663 702 +6% 663 587 -13% Adv
Slide 19: E-Banking
E-Banking g % E-Banking Mar-10 Dec-09 Dec-08 Dec-07 Change # of ATMs 412 412 354 +16% 326 # of Transactions ((M)) 4.1 14.6 11.7 +25% 9.5 Average transactions per day 46k 40k 32k +25% 26k Total transaction amount (Rs B) 24 84 63 +32% 48 Average transaction size (Rs 000) 5.8 5.7 5.4 +5% 5.0 Average mo
Slide 20: Financial Ratios (1 of 3)
Back main ratios Financial Ratios ((1 of 3)) Full Year QTD A nn. DuPont 2007 2008 2009 Dec-09 Mar-10 1 N t Interest Net I t t Yield Yi ld 5 0% 5.0% 4 9% 4.9% 5 3% 5.3% 5 8% 5.8% 5 3% 5.3% 2 Net Interest Margin 6.1% 5.8% 6.4% 7.0% 6.5% 3 Non Interest Yield 2.0% 1.9% 2.1% 2.2% 1.7% p g Exp. Operating
Slide 21: Financial Ratios (2 of 3)
Back main ratios Financial Ratios ((2 of 3)) Asset Quality Full Year Q T D ( A n n u .) 2007 2008 2009 De c-09 Mar-10 Gross NPLs / Gross Loan 6 9% 6.9% 7 3% 7.3% 10 3% 10.3% 10 3% 10.3% 11 3% 11.3% Net NPLs / Gross Loan 1.9% 2.4% 3.0% 3.0% 3.2% Coverage Ratio 77.9% 66.8% 70.9% 70.9% 71.7% Prov. held
Slide 22: Financial Ratios (3 of 3)
Back main ratios Financial Ratios ((3 of 3)) Yearly Q T D ( A n n u .) Other Metrics 2007 2008 2009 De c-09 Mar-10 1 Capital Adequacy Ratio 10.2% 9.9% 13.2% 13.2% 13.2% Tier-I CAR 7.4% 5.8% 9.0% 9.0% 8.9% Loan / Deposits 74.8% 76.5% 73.4% 73.4% 73.4% Loan / Assets 56.4% 59.4% 53.0% 53.0% 56.1% RWA /
Slide 23: Quarterly Trend Analysis Bank Level
Q Quarterly t l Trend T d Analysis A l i Bank B kL Levell 4/27/2010 3:10:15 PM 23
Slide 24: Profit Before Tax
Profit Before Tax Prof it bef ore Tax 6.0 4.9 4.4 4.7 4.8 4.1 4.3 3.9 3.2 3.6 2.8 Rs B 2.4 Impairment loss (Rs.2.2B) 1.2 0.1 - Mar 08 Jun 08 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 4/27/2010 3:10:15 PM 24
Slide 25: Profit after Tax
Profit after Tax Prof it Af ter Tax 4.0 3.2 2.9 2.7 2.8 2.8 3.0 2.5 2.1 1.8 2.0 Rs B 1.0 - -0.6 ((1.0)) Mar 08 Jun 08 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 4/27/2010 3:10:15 PM 25
Slide 26: Deposits
Deposits p 540 509 510 492 484 480 466 469 455 452 451 Rs B 450 Saving deposits 420 408 390 Mar 08 Jun 08 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 4/27/2010 3:10:15 PM 26
Slide 27: Net Advances
Net Advances 400 380 371 368 365 360 352 353 360 Rs B 340 329 331 320 320 300 Mar 08 Jun 08 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 4/27/2010 3:10:15 PM 27
Slide 28: Net Interest Income
Net Interest Income 95 9.5 8.9 8.8 8.2 8.1 7.9 8.0 7.5 7.6 Rs B 7.2 7.3 6.8 6.5 6.2 5.8 Mar 08 Jun 08 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 4/27/2010 3:10:15 PM 28
Slide 29: Net Provision
Net Provision * 6.0 4.4 4.4 4.8 3.6 36 3.6 30 3.0 Rs B 2.2 2.1 2.4 1.2 1.3 1.3 1.2 - Mar 08 Jun 08 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 * Excluding g other operational p Write-offs Write- 4/27/2010 3:10:15 PM 29
Slide 30: Non-Funded Income
Non--Funded Income Non 5.0 4.2 3.8 3.1 3.3 3.1 30 3.0 34 3.4 Rs B 2.3 2.3 2.4 2.6 16 1.6 1.8 1.0 Mar 08 Jun 08 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 4/27/2010 3:10:15 PM 30
Slide 31: Total Revenue
Total Revenue 11.0 9.6 9.1 8.5 8.6 8.4 8.2 7.9 8.2 7.5 Rs B 7.1 6.8 5.4 4.4 40 4.0 Mar 08 Jun 08 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 * Excluding g other operational p Write-offs Write- 4/27/2010 3:10:15 PM 31
Slide 32: Administrative Expenses
Administrative Expenses p 45 4.5 4.3 4.2 4.3 4.1 4.1 4.2 4.1 3.9 4.0 Rs B 3.7 3.8 3.5 3.5 3.3 Mar 08 Jun 08 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 4/27/2010 3:10:15 PM 32
Slide 33: Forward-looking statements
Thee information o a o co contained a ed herein e e reflects e ec s ou our latest a es bus business ess sstatement a e e as aat March 31, 2010 Except the historical information contained herein, statements in this Release which contain words or phrases such as ‘will’, ‘would’, ‘indicating’ expected
Slide 34: Thank You
Thank You 4/27/2010 3:10:15 PM 34