United Bank Limited · PSX:UBL
United Bank — FY2012 Earnings Presentation
31 slides from United Bank's earnings presentation, 2013
Slide 1: United Bank Limited Performance Review FY 2012
United Bank Limited Performance Review FY 2012 1
Slide 2: Key Highlights
Key Highlights • Standalone PAT up 16% YoY to Rs 18.0 bn. Consolidated PAT up 30% YoY to Rs 19.3 bn for 2012 • Net interest income down 2% YoY to Rs 38.6 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 5%
Slide 3: Key Highlights
Key Highlights • Provisions are down by 40% YoY to Rs 4.5 bn o Excluding the sovereign guaranteed NPL, coverage ratio has improved to 82% in Dec’12. The domestic coverage has increased from 81% to 84% o NCL ratio improved to 1.1% in 2012 compared to 2.1% last year • Administrative expenses are up Yo
Slide 4: Income Statement - Standalone
Income Statement - Standalone PKR Bn FY'12 FY'11 Var % Q4'12 Q3'12 Var % Interest Earned 73.51 70.45 4% 18.04 19.21 -6% Interest Expensed (34.95) (31.03) -13% (8.62) (9.29) 7% Net Interest Income 38.56 39.43 -2% 9.42 9.93 -5% Non Interest Income 17.13 12.72 35% 3.96 5.49 -28% Total Revenue 55.69 52.
Slide 5: Income Statement - Consolidated
Income Statement - Consolidated PKR Bn FY' 12 FY' 11 Var % Q4'12 Q3'12 Var % Interest Earned 75.38 71.38 6% 18.69 19.73 -5% Interest Expensed (35.74) (31.31) -14% (8.93) (9.51) 6% Net Interest Income 39.64 40.07 -1% 9.76 10.22 -4% Non Interest Income 19.59 12.90 52% 4.71 6.56 -28% Total Revenue 59.2
Slide 6: Share Info
Share Info Trends - KSE 100 Index & UBL's Share Price Thousands Book value per share - Standalone 95 18 100 78 85 15 Cons. Equity Dec’12 – Rs 101 Bn 85 66 Cons. BV - Rs 82.4 per share Book Value - Rs. Bn Book value per share 75 12 70 55 65 10 55 43 Max 2012 : 91.17 55 Min 2012 : 52.65 7 40 32 Latest
Slide 7: Key Ratios - Bank
Key Ratios - Bank Balance Sheet Ratios Dec-12 Dec-11 Adva nces / Depos i ts 56% 57% As s et Qua l i ty 13.4% 14.0% Covera ge 82% 80% Financial Ratios FY' 12 FY' 11 Q4'12 Q3'12 Yi el d on P. Adva nces 11.7% 13.1% 11.1% 11.6% Cos t of Depos i ts 4.3% 4.3% 4.1% 4.4% Net Interes t Ma rgi n 6.3% 7.2% 6.0
Slide 8: Deposits Structure (Bank level)
Deposits Structure (Bank level) Cost of Deposits Deposits - Bank Cost of Deposits Dec'11 Dec'12 5.2% PE - PE - Bank Rs.Bn COF% Rs.Bn COF% 4.4% Domestic deposits 495 4.8% 540 4.6% 3.6% International deposits 118 2.3% 160 3.4% 2.8% Total Bank 613 4.3% 700 4.3% 2.0% International $ 1,313 2.3% 1,647 3.4
Slide 9: Net Advances
Net Advances % Net Advances - Rs. Bn Dec'11 Dec'12 Change Corporate Bank 155.2 173.9 +12% Commercial * 69.0 69.2 +0% Consumer 11.3 9.4 -17% Others 6.0 8.0 34% Total Domestic 241.4 260.6 8% International 83.9 103.8 +24% Bank 325.3 364.4 12% International US$ Mn 933.0 1,068.4 +15% * of which commodity
Slide 10: International Advances
TO reg2ess34 years of Privatization UNITED BANE oo International Advances | __By Geography _| | By Business - UAE | Qatar, 11% Yemen, 11% NewYork, 0% Bahrain, 12' EPZ, 0% UAE, 66% ‘onsumer, 16% Personal Abu Shariah. loan, 10% Dhabi, 34% Baitna, 88% 10
Slide 11: Spread Analysis – Bank Level
Spread Analysis – Bank Level Bank FY 2012 FY 2011 FY 20 Avg.Yield Avg.Yield Rs Bn PE AVG IE /Cost PE AVG IE /Cost Avg KIBOR - 3M 11.1% 13.1% Interest Earning Assets Performing Advances 337 319 37.4 11.7% 301 297 38.8 13.1% Corporate 158 156 19.8 12.8% 141 132 18.9 14.4% Commercial 19 17 2.5 14.8% 21
Slide 12: Concentration of Advances – Standalone-Dec'12
Concentration of Advances – Standalone-Dec’12 Trading, Airlines, 2% 4% Agribusiness, 13% Automobile & Trans. Equip., 1% Telecom, 2% Textile, 16% Cement, 1% Chemical and pharmaceuticals, 2% Contractor / Sugar, 3% Constructor, 6% Fertilizer dealers, 1% Prod. & Transmission Energy, 14% Food, 4% Financi
Slide 13: Non Markup / Return / Interest Income
Non Markup / Return / Interest Income Non Fund Income - Rs. Mn FY'12 FY'11 Var % Q4'12 Q3'12 Var % Fee, commission and brokerage income 8,163 6,949 17% 2,249 1,949 15% Dividend income 2,664 786 239% 1,144 78 1368% Income from dealing in foreign currencies 1,863 2,078 -10% 329 486 -32% Gain / (loss)
Slide 14: Fee Commission and Brokerage Income
Fee Commission and Brokerage Income Fee Commission Income - Rs. Mn FY'12 FY'11 Var % Q4'12 Q3'12 Var % Commission on trade 1,584 1,471 8% 380 387 -2% Commission on consumer loan 765 974 -21% 202 155 30% Commission on remittance / uniremote 1,123 833 35% 330 269 23% Corporate service chgs/finance fee
Slide 15: Administrative Expenses
Administrative Expenses Administrative Expenses - Rs. Mn FY'12 FY'11 Var % Q4'12 Q3'12 Var % Personnel Cost 9,846 8,571 -15% 2,522 2,476 -2% Premises Cost 3,438 2,888 -19% 928 878 -6% Outsourced service charges 2,203 1,645 -34% 633 564 -12% including sales commission Advertisement and publicity 626
Slide 16: UBL OMNI – Branchless Banking
UBL OMNI – Branchless Banking • UBL Omni is the market leader in Commercial Launch: UBL OMNI April 2010 branchless banking. No of Agents: No of cities/towns: 10,500+ 650+ No of transactions: 60+ Million • Winner of GSMA International Mobile Transaction volume: Grant Received: PKR 166+ Billion US$ 6.
Slide 17: 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 2012 Dec-11 Mar-12 Jun-12 S ep-12 Dec-12 Spread (St) 1 5.5% 5.5% 5.6% 4.7% 5.3% 5.0% 4.8% 4.6% 4.4% 2 Net Interest Margin (St) 6.9% 7.0% 7.2% 6.3% 6.9% 6.7% 6.5% 6.3% 6.0% Non Interest Yield 3 2.1% 1.6% 1.7%
Slide 18: 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 2012 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Gross NPLs / Gross Loan 10.3% 12.9% 13.4% 13.6% 13.4% 14.9% 13.2% 13.3% 13.6% Net NPLs / Gross Loan 3.0% 3.6% 2.9% 3.4% 2.9% 4.5% 3.1% 2.8% 3.4% Coverage Ratio 7
Slide 19: 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 2012 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Capital Adequacy Ratio 14.0% 15.0% 14.9% 14.7% 14.9% 13.7% 14.5% 15.1% 14.7% Tier-I CAR 9.5% 10.4% 10.6% 10.1% 10.6% 9.6% 10.1% 10.4% 10.1% Loan / Deposits 73
Slide 20: Quarterly Trend Analysis
Quarterly Trend Analysis Bank Level 20
Slide 21: Profit before Tax
Profit before Tax 8.5 7.5 7.2 7.2 7.3 6.5 6.6 6.0 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 Q4 12 21
Slide 22: Profit after Tax
Profit after Tax 5.5 4.9 4.7 4.5 4.5 4.7 4.2 3.9 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 Q4 12 22
Slide 23: Deposits
Deposits 750 700 685 685 653 613 614 620 594 557 Rs Bn 551 555 529 500 491 490 451 425 Mar'10 Jun'10 Sep'10 Dec'10 Mar'11 Jun'11 Sep'11 Dec'11 Mar'12 Jun'12 Sep'12 Dec'12 23
Slide 24: Net Advances
Net Advances 375 364 363 358 355 351 343 345 Rs Bn 339 335 334 334 334 331 326 327 325 315 Mar'10 Jun'10 Sep'10 Dec'10 Mar'11 Jun'11 Sep'11 Dec'11 Mar'12 Jun'12 Sep'12 Dec'12 24
Slide 25: Net Interest Income
Net Interest Income 11.0 10.3 10.4 10.2 9.9 9.8 9.6 9.6 9.8 9.4 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 Q4 12 25
Slide 26: 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 1.1 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 Q4 12 26
Slide 27: Non Fund Income
Non Fund Income 6.0 5.5 5.2 4.1 4.0 4.3 3.8 3.6 Rs Bn 3.5 3.0 2.9 3.0 2.8 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 Q4 12 27
Slide 28: Gross Revenue
Gross Revenue 16.4 15.4 15.1 13.7 13.4 13.6 13.2 13.4 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 Q4 12 28
Slide 29: Administrative Expenses
Administrative Expenses 6.6 6.2 6.1 6.0 5.8 5.5 5.5 5.0 Rs Bn 4.9 5.0 5.0 4.9 4.7 4.4 4.5 4.4 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 Q4 12 29
Slide 30: Forward-looking statements
The information contained herein reflects our latest business statement as at December 31, 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 variation
Slide 31: Thank You
UNITED BANEK oo Thank You 31