United Bank Limited · PSX:UBL
United Bank — H1 2010 Earnings Presentation
34 slides from United Bank's earnings presentation, Jul 30, 2010
Slide 1: United Bank Limited Performance Review 1H 2010
United Bank Limited Performance Review 1H 2010 July 30, 2010 London
Slide 2: Key Highlights (Bank only)
Key Highlights (Bank only) • PAT up 21% yoy at Rs. 5.2 B • Net Interest income up 5% at Rs 16.5 B – Mainly due to lower cost of funds (cost Jun’ 2009: 6.1%; Jun’ 2010: 4.7%) – Increase in average core deposits by 6% – Net interest margin (NIM) up to 7.1% (Jun’2009: 6.6%) • Non Interest income down 2
Slide 3: Key Highlights (Bank only)
Key Highlights (Bank only) • Provision charge of Rs 4.0 B, lower by 42% – 64% improvement in Corporate; 29% in Consumer – Provisions taken in 2Q10 are lower than the prov. taken in each of the last six quarters at Rs 2.0 B – Net credit loss ratio (NCL) improved from 3.1% in Jun’09 to 2.1% in Jun’10
Slide 4: Summary
Summary Jun 2010 Dec 2009 Change Assets (PKR bn) 669 640 +4% Advances (PKR bn) 352 362 -3% Market Share-Adv- DOM 8.6% 8.8% Deposits (PKR bn) 515 504 +2% Market Share-Deposits- DOM 8.1% 8.8% Online branches 928 928 - ATMs 413 412 +1 ROAA 1.6% 1.5% ROAE 15% 16% Credit Rating (JCR-VIS) AA+/A-1+ AA+/A-1
Slide 5: Share Info
Share Info Jun 2010 Dec 2009 EPS (Rs/share-annual.) 8.4 7.8 BV/share (Rs/share) 56.8 55.0 Price* - (Rs /share) 56.8 58.6 P/E 6.7x 7.5x P/BV 1.0x 1.1x # of shares 1,224M 1,224M * J un-10 P ric e dat e d J uly 19, 2010 * De c -09 P ric e dat e d Fe bruary 18, 2010 ( pric e and EP S adjust e d f or bon
Slide 6: Income Statement (Bank only)
Income Statement (Bank only) QTD QTD 6 Month 6 Month (PKR bn) Jun'10 Mar'10 Var % Jun'10 Jun'09 Var % Net Interest Income 8.32 8.20 +1% 16.52 15.68 +5% Non Interest Income 2.37 2.36 +0% 4.73 6.21 -24% Operating Revenue 10.68 10.56 +1% 21.24 21.89 -3% Operating Expense (4.34) (4.08) -6% (8.43) (8.07)
Slide 7: Income Statement (Consolidated)
Income Statement (Consolidated) QTD QTD 6 Month 6 Month PKR (bn) Jun'10 Mar'10 Var % Jun'10 Jun'09 Var % Net Interest Income 8.44 8.34 +1% 16.78 15.78 +6% Non Interest Income 2.57 2.52 +2% 5.09 7.03 -28% Operating Revenue 11.02 10.85 +2% 21.87 22.81 -4% Operating Expense (4.69) (4.39) -7% (9.08) (8.
Slide 8: Balance Sheet (PKR bn)
Balance Sheet (PKR bn) % Mix- Mix- Jun'10 Dec'09 Change Jun'10 Dec'09 Cash & bank balances 92.3 75.3 +23% 14% 12% Investments 168.3 137.7 +22% 25% 22% Advances 351.7 362.1 -3% 53% 57% Fixed assets 23.9 23.7 +1% 4% 4% * * * * * * * * * * * * Total Assets 668.8 640.4 +4% 100% 100% Deposits 515.1 503.8
Slide 9: Financial Ratios
Financial Ratios QTD QTD 6 month 6 month Jun'10 Mar'10 Jun'10 Jun'09 Loan/Deposits 68% 73% 68% 73% ROAE 14% 16% 15% 17% ROAA 1.5% 1.8% 1.6% 1.4% Cost/Income Ratio 51% 50% 51% 54% Gross NPLs/Gross Advances 11.1% 11.3% 11.1% 8.8% Net NPLs/Gross Advances 3.1% 3.6% 3.1% 2.9% Coverage Ratio 75% 72% 75% 7
Slide 10: Deposit Structure (Bank level)
Deposit Structure (Bank level) Deposit Mix (YTD June 2010) - Bank (Parent Company) Cost of Deposits QTD Jun'10 QTD Mar'10 Period Avg.Yield Period Avg.Yield Other Deposits – PKR 13bn end Rs B /Cost end Rs B /Cost Contribution 3% Cost 0.0% Saving deposits 173 4.9% 165 4.9% Fixed Deposits – PKR 147bn C
Slide 11: Advances by Business
Advances by Business % Net Advances-Rs.B Jun'10 Dec'09 Change Mix'10 Yield 10 Yield 09 Corporate Bank 147.8 150.1 -2% 57% 13.4% 14.3% Commercial Bank 86.7 81.2 +7% 33% 14.8% 16.1% Consumer Bank 19.3 24.3 -21% 7% 16.6% 17.9% Others 7.4 9.3 -21% 3% 13.3% 10.2% Domestic 261.1 264.9 -1% 100% 13.9% 15.1%
Slide 12: Consumer Advances by Product
Consumer Advances by Product 2008 2009 Jun-10 Yield Jun'10 24 26% 24% 20% 20 18 22% 18% 16% 16 15% 17% 14% 11 12 13% 8 8 9% 4 4 4 4 3 3 3 3 2 3 3 2 4 2 4% 1 0 0 0% Drive Address Credit Card Cashline Businessline Money % Jun'10 Dec'09 Change Mix'10 Yield 10 Yield 09 Drive 8.4 11.2 -25% 44% 16.2% 16.7
Slide 13: International Advances
International Advances By Geography By Business Yemen, 6% Qatar, 12% NewYork, 0.1% Bahrain, 11% EPZ, 0.5% Corporate, 73% UAE, 69% Consumer, 27% Abu Sharjah, Dhabi, 8% Personal Others, 20% loan, 29% 9% Dubai, Baitna, 73% 63% 8/4/2010 12:11:16 PM 13
Slide 14: Spread Analysis - Bank Level
Spread Analysis- Analysis-Bank Level Bank YTD June 2010 YTD June 2009 Avg.Yiel Avg.Yiel Rs B PE AVG IE d /Cost PE AVG IE d /Cost Avg Kibor - 6M 12.3% 13.7% Interest Earning Assets Performing Advances 326 321 20.0 12.6% 351 352 23.8 13.6% Corporate 136 138 9.2 13.4% 141 149 10.9 14.7% Commercial 24 2
Slide 15: QTD – Net Interest Income (Bank Level)
QTD – Net Interest Income (Bank Level) Bank QTD June 2010 QTD March 2010 Avg.Yiel Avg.Yiel Rs B PE AVG IE d /Cost PE AVG IE d /Cost Avg Kibor - 6M 12.3% 12.4% Interest Earning Assets Performing Advances 326 318 9.9 12.5% 312 325 10.1 12.6% Corporate 136 136 4.5 13.4% 138 140 4.6 13.4% Commercial 24
Slide 16: Concentration of Advances
Concentration of Advances Chemical and Automobile and Telecom, 2.3% Pharmaceuticals, 1.7% transportation equipment, 1.4% Financial, 1.3% Fertilizer , 1.7% Others, 10.3% Airline/ Aviation, 1.6% Food industries, 2.7% Contractors, 1.2% Textile, 15.2% Agribusiness, 16.3% Sugar, 1.9% Individuals, 17.1% C
Slide 17: Non Interest Income (PKR mm)
Non Interest Income (PKR mm) QTD QTD % 6 month 6 month % Jun'10 Mar'10 Change Jun'10 Jun'09 Change Commission on consumer loan 249 241 +3% 490 554 -11% Minimum balance charges 128 92 +39% 221 282 -22% Commission on trade 435 393 +11% 828 680 +22% Commission on remittances/uniremote 208 212 -2% 420 3
Slide 18: Operating Expenses
Operating Expenses QTD QTD 6 month 6 month Operating Cost - Rs. M Jun'10 Mar'10 Var % Jun'10 Jun'09 Var % Personnel cost 1,798 1,899 +5% 3,697 3,783 +2% Early Retirement Scheme 11 49 +78% 60 85 +30% Outsourced cost/commission 348 331 -5% 679 660 -3% Premises cost 730 670 -9% 1,400 1,236 -13% Adverti
Slide 19: E-Banking
E-Banking % E-Banking Jun-10 Dec-09 Dec-08 Dec-07 Change # of ATMs 413 412 354 +16% 326 # of Transactions (M) 8.3 14.6 11.7 +25% 9.5 Average transactions per day 93k 40k 32k +25% 26k Total transaction amount (Rs B) 49 84 63 +32% 48 Average transaction size (Rs 000) 5.8 5.7 5.4 +5% 5.0 Average monthl
Slide 20: Financial Ratios (1 of 3)
Financial Ratios (1 of 3) Full Year QTD A nn. DuPont 2007 2008 2009 Jun'10 Dec-09 Mar-10 Jun-10 1 Net Interest Yield 5.0% 4.9% 5.3% 5.1% 5.8% 5.3% 5.3% 2 Net Interest Margin 6.1% 5.8% 6.4% 6.3% 7.0% 6.5% 6.5% 3 Non Interest Yield 2.0% 1.9% 2.1% 1.6% 2.2% 1.7% 1.6% Operating Exp. / Assets 2.9% 2.9% 2
Slide 21: Financial Ratios (2 of 3)
Financial Ratios (2 of 3) Asset Quality Full Year Q T D ( A n n u .) 2007 2008 2009 Jun'10 De c-09 Mar-10 Jun-10 Gross NPLs / Gross Loan 6.9% 7.3% 10.3% 11.1% 10.3% 11.3% 11.1% Net NPLs / Gross Loan 1.9% 2.4% 3.0% 3.1% 3.0% 3.6% 3.1% Coverage Ratio 77.9% 66.8% 70.9% 74.5% 70.9% 71.7% 74.5% Prov. hel
Slide 22: Financial Ratios (3 of 3)
Financial Ratios (3 of 3) Yearly Q T D ( A n n u .) Other Metrics 2007 2008 2009 Jun'10 De c-09 Mar-10 Jun-10 Capital Adequacy Ratio 10.2% 9.9% 13.2% 13.7% 13.2% 13.2% 13.7% Tier-I CAR 7.4% 5.8% 9.0% 9.4% 9.0% 8.9% 9.4% Loan / Deposits 74.8% 72.7% 68.3% 68.3% 68.3% 73.4% 68.3% Loan / Assets 56.4% 61
Slide 23: Quarterly Trend Analysis
Quarterly Trend Analysis Bank Level 8/4/2010 12:11:16 PM 23
Slide 24: Profit Before Tax
Profit Before Tax Prof it bef ore Tax 6.0 4.9 4.7 4.8 4.1 4.3 4.3 3.9 3.2 3.6 2.8 Rs B 2.4 Impairment loss (Rs.2.2B) 1.2 0.1 - Jun 08 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 8/4/2010 12:11:16 PM 24
Slide 25: Profit after Tax
Profit after Tax Prof it Af ter Tax 4.0 3.2 2.7 2.8 2.8 3.0 2.4 2.5 2.1 1.8 Rs B 2.0 1.0 - -0.6 (1.0) Jun 08 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 8/4/2010 12:11:16 PM 25
Slide 26: Deposits
Deposits 540 509 516 500 492 492 484 Rs B 466 469 468 455 444 452 451 420 Jun 08 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 8/4/2010 12:11:16 PM 26
Slide 27: Net Advances
Net Advances 400 380 371 368 365 360 352 354 360 Rs B 343 340 329 331 320 300 Jun 08 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 8/4/2010 12:11:16 PM 27
Slide 28: Net Interest Income
Net Interest Income 9.5 8.9 8.3 8.8 8.2 8.2 7.9 8.0 7.5 7.6 Rs B 7.2 7.3 6.8 6.5 5.8 Jun 08 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 8/4/2010 12:11:16 PM 28
Slide 29: Net Provision
Net Provision * 6.0 4.4 4.4 4.8 3.6 3.6 3.0 Rs B 2.2 2.1 2.0 2.4 1.3 1.3 1.2 - Jun 08 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 * Excluding other operational Write- Write-offs 8/4/2010 12:11:16 PM 29
Slide 30: Non-Funded Income
Non--Funded Income Non 5.0 4.2 3.8 3.3 3.1 3.0 3.4 B s R 2.3 2.3 2.4 2.4 2.6 1.6 1.8 1.0 Jun 08 Sep 08 D ec-08 M ar 09 Jun-09 Sep-09 D ec-09 M ar-10 Jun-10 8/4/2010 12:11:17 PM 30
Slide 31: Total Revenue
Total Revenue 11.0 9.6 9.1 8.5 8.6 8.7 8.4 7.9 8.2 7.5 Rs B 7.1 6.8 5.4 4.4 4.0 Jun 08 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 * Excluding other operational Write- Write-offs 8/4/2010 12:11:17 PM 31
Slide 32: Administrative Expenses
Administrative Expenses 4.5 4.3 4.3 4.3 4.2 4.2 4.1 4.1 4.1 4.1 Rs B 3.9 3.9 3.7 3.7 3.5 Jun 08 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 8/4/2010 12:11:17 PM 32
Slide 33: The information contained herein reflects our latest business statement as at June 30, 2010
The information contained herein reflects our latest business statement as at June 30, 2010 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 variations of
Slide 34: Thank You
Thank You 8/4/2010 12:11:17 PM 34