United Bank Limited · PSX:UBL
United Bank — Q1 2009 Earnings Presentation
33 slides from United Bank's earnings presentation, Apr 20, 2009
Slide 1: United Bank Limited Performance Review (Consolidated) 1Q 2009
United Bank Limited Performance Review (Consolidated) 1Q 2009 April 20, 2009
Slide 2: Key Highlights
Key Highlights Profitability • PAT declines 12% yoy at Rs. 2.8B • Non Interest Income down 25%; lower derivatives income & consumer loan commissions • Net Interest income up 25%; recogn of non accrued consumer interest of Rs 250M • Provision charge of Rs 2.2 B, 78% up yoy – Impairment loss – 313M •
Slide 3: Summary
Summary Mar 2009 Dec 2008 Change Assets (PKR bn) 642 620 +3% Advances (PKR bn) 369 378 -3% Market Share-Adv- DOM 9.5% 9.2% Deposits (PKR bn) 482 492 -2% Market Share-Deposits- DOM 9.3% 9.6% Branches (all automated) 1,135 1,136 -1 Online branches 917 894 +23 ATMs 381 354 +27 ROAA 1.8% 1.4% ROAE 21% 1
Slide 4: Share Info
Share Info Mar 2009 Dec 2008 1 EPS (Rs/share-annual.) 9.9 7.5 BV/share (Rs/share) 49.6 44.4 Price* - (Rs /share) 46.2 39.3 P/E 4.7x 5.2x P/BV 0.9x 0.9x # of shares 1,113M 1,113M * Mar-09 P ric e dat e d A pril 16 2009 * De c -08 P ric e dat e d Marc h 04, 2009 - Adjust e d f or bonus share s 1 Dilut
Slide 5: Income Statement (PKR bn)
Income Statement (PKR bn) QTD QTD 3 month 3 month Mar'09 Dec'08 Var % Mar'09 Mar'08 Var % Net Interest Income 8.18 7.47 +10% 8.18 6.56 +25% Non Interest Income 2.51 1.22 +106% 2.51 3.36 -25% Operating Revenue 10.69 8.68 +23% 10.69 9.92 +8% Operating Expense (4.20) (4.43) +5% (4.20) (3.77) -12% Pre-P
Slide 6: Balance Sheet (PKR bn)
Balance Sheet (PKR bn) % Mix- Mix- Mar'09 Dec'08 Change Mar'09 Dec'08 Cash & bank balances 78.1 64.7 +21% 12% 10% Investments 142.5 115.0 +24% 22% 19% Advances 368.7 378.3 -3% 57% 61% Fixed assets 20.0 19.9 +0% 3% 3% * * * * * * * * * * * * Total Assets 642.0 620.2 +4% 100% 100% Deposits 481.8 492.3
Slide 7: Financial Ratios
Financial Ratios YTD YTD FY Mar'09 Mar'08 Dec'08 Loan/Deposits 77% 79% 77% ROAE 21% 26% 17% ROAA 1.8% 2.3% 1.4% Cost/Income Ratio 50% 43% 52% Gross NPLs/Gross Advances 8.2% 6.8% 7.3% Net NPLs/Net Advances 3.2% 2.1% 2.7% Coverage Ratio 67% 77% 68% CAR Ratio* (Basel II) 11.5% 11.2% 10.6% Tier 1 CAR* (
Slide 8: Deposit Structure
Deposit Structure Deposit Mix (YTD Mar 09) - Bank (Parent Company) Cost of Deposits QTD Mar'09 QTD Dec'08 Other Deposits – PKR 11bn Period Avg.Yield Period Avg.Yield Contribution 3% end Rs B /Cost end Rs B /Cost Cost 0.6% Saving deposits 155 5.7% 156 5.7% Fixed Deposits – PKR 180bn Contribution 38%
Slide 9: Advances by Business
Back to Balance Sheet Advances by Business % Net Advances Mar'09 Dec'08 Change Mix 09 Yield 09 Yield 08 Corporate Bank 161.1 165.9 -3% 61% 14.8% 12.5% Commercial Bank 62.1 61.4 +1% 23% 16.9% 14.4% Consumer Bank 32.9 36.4 -9% 12% 19.4% 16.5% Others 9.7 10.2 -5% 4% 15.4% 12.0% Domestic 265.8 273.9 -3%
Slide 10: Consumer Advances by Product
Consumer Advances by Product 2007 2008 Mar-09 Yield Mar 09 26 25% 23 22% 21% 22 19% 19% 19% 20% 17% 18 17 16 15% 13 10% 9 6 6 5 5 4 4 4 4 4 4 4 4 3 5% 4 2 2 0 0% Drive Address Credit Card Cashline Businessline Money % Mar'09 Dec'08 Change Mix 09 Yield 09 Yield 08 Drive 15.8 17.7 -11% 48% 19.4% 13.6%
Slide 11: QTD – Net Interest Income (Bank Level)
QTD – Net Interest Income (Bank Level) QTD Mar'09 QTD Dec'08 Interest Interest Average incom e / Avg.Yield Average incom e / Avg.Yield Balances (expense) /Cost Balances (expense) /Cost Interest Earning Assets Performing Advances 359,230 12,391 14.0% 363,898 12,072 13.2% Domestic 263,830 10,463 16.1%
Slide 12: Spread Analysis (1 of 2)
Spread Analysis (1 of 2) QTD March 2009 QTD March 2008 Interest Interest Bank Level Average incom e / Avg.Yield Average incom e / Avg.Yield Balances (expense) /Cost Balances (expense) /Cost Interest Earning Assets - Performing Advances 359,230 12,391 14.0% 299,840 8,183 10.9% Domestic 263,830 10,463
Slide 13: Spread Analysis (2 of 2)
Spread Analysis (2 of 2) QTD March 2009 QTD March 2008 Interest Interest Bank Level Average incom e / Avg.Yield Average incom e / Avg.Yield Balances (expense) /Cost Balances (expense) /Cost Interest bearing liabilities Saving deposits 157,728 (2,223) 5.7% 154,446 (1,208) 3.1% Current deposits 115,50
Slide 14: Concentration of Advances
Concentration of Advances A uto mo bile and transpo rtatio n equipment, Chemical and 2.0% Financial, 1.4% P harmaceuticals, 1.5% Teleco m, 2.2% Fertilizer , 1.4% Staff lo ans , 1.2% Others, 16.0% A irline/ A viatio n, 2.1% Fo o d industries, 2.2% Co ntracto rs, 0.8% A gribusiness, 7.9% Textile, 17.1
Slide 15: Non Interest Income (PKR mm)
Non Interest Income (PKR mm) QTD QTD % 3 month 3 month % Full year Mar'09 Dec'08 Change Mar 09 Mar 08 Change Dec'08 Commission on consumer loan 273 406 -33% 273 386 -29% 1,686 Minimum balance charges 121 159 -24% 121 113 +7% 561 Commission on trade 329 390 -16% 329 318 +3% 1,385 Commission on remitt
Slide 16: Operating Expenses (1 of 2)
Operating Expenses (1 of 2) QTD QTD 3 month 3 month Full year Rs. M Mar'09 Dec'08 Var % Mar 09 Mar 08 Var % Dec'08 Personnel cost 1,879 1,750 -7% 1,879 1,671 -12% 6,769 Early Retirement Scheme 34 92 +63% 34 21 -58% 271 Premises cost 587 540 -9% 587 510 -15% 2,224 Outsourced serv.chgs incl. sales com
Slide 17: Operating Expenses (2 of 2)
Operating Expenses (2 of 2) QTD QTD 3 month 3 month Full year Rs. M Mar'09 Dec'08 Var % Mar 09 Mar 08 Var % Dec'08 Insurance expense 12 49 +76% 12 38 +68% 117 Office running expenses 33 33 +1% 33 23 -45% 115 Entertainment 21 26 +19% 21 17 -28% 88 Cartage, freight and conveyance 17 22 +23% 17 14 -20%
Slide 18: E-Banking
E-Banking % E-Banking Mar-09 Dec-08 Dec-07 Change # of ATMs 381 354 +8% 313 # of Transactions (M) 3.2 11.7 +11% 9.5 Average transactions per day 9k 32k +13% 26k Total transaction amount (Rs B) 18 63 +15% 48 Average transaction size (Rs 000) 5.6 5.4 +4% 5.0 Average monthly trans.per ATM (Rs M) 16 15
Slide 19: Financial Ratios (1 of 3)
Financial Ratios (1 of 3) QTD Yearly ( A n n u .) DuPont 2005 2006 2007 2008 Mar-09 1 Net Interest Yield 4.5% 5.4% 5.0% 4.9% 5.2% 2 Net Interest Margin 5.4% 6.4% 6.1% 6.1% 6.2% 3 Non Interest Yield 1.7% 1.8% 2.0% 1.8% 1.6% Operating Exp. / Assets 2.6% 2.9% 2.9% 2.9% 2.7% Cost Income Ratio 46.4% 44.5
Slide 20: Financial Ratios (2 of 3)
Financial Ratios (2 of 3) QTD Asset Quality Yearly ( A n n u .) 2005 2006 2007 2008 Mar-09 Gross NPLs / Gross Loan 7.7% 6.2% 6.9% 7.3% 8.2% Net NPLs / Gross Loan 1.7% 1.6% 1.9% 2.6% 3.0% Coverage Ratio 84.8% 82.6% 77.9% 68.5% 67.0% Prov. held / Gross loan 6.0% 4.6% 4.9% 4.7% 5.2% Prov. Exp. / Gross
Slide 21: Financial Ratios (3 of 3)
Financial Ratios (3 of 3) QTD Other Metrics Yearly ( A n n u .) 2005 2006 2007 2008 Mar-09 1 Capital Adequacy Ratio 10.7% 12.2% 12.4% 10.6% 11.5% 1 Tier-I CAR 7.7% 8.9% 8.8% 7.3% 7.8% Loan / Deposits 70.9% 74.1% 74.8% 76.8% 76.5% Loan / Assets 58.7% 58.4% 56.4% 61.0% 57.4% RWA / Assets 66.8% 72.6% 7
Slide 22: Quarterly Trend Analysis
Quarterly Trend Analysis Bank Level 5/16/2009 10:38:49 AM 22
Slide 23: Profit Before Tax
Profit Before Tax Profit before Tax 6.0 Before FSV(2007, ERS) 4 .9 4 .6 4 .7 4 .4 4 .4 4.8 3 .9 3.6 Rs B Reversal in Mar’07 of accruals in Dec’06 2 .1 1.9 2.4 Impairment loss (Rs.2.2B) Provision–PR amendment 1.2 FSV / others ( Rs 1.975M) 0 .1 Provision–FSV ( Rs 1,829M) ERS (Rs 307M) - M ar 07 Jun 07
Slide 24: Profit after Tax
Profit after Tax 4.0 3 .1 3 .2 2 .9 2 .6 2 .7 3.0 2 .5 2.0 1.5 Rs B Prior period tax adj. 1.3 (Rs 402M) - one-off exp. 1.0 FSV - 0 .6 - (1.0) M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 5/16/2009 10:38:49 AM 24
Slide 25: Deposits
Deposits 525 484 466 469 480 4 55 435 Rs B 403 402 408 381 Saving deposits 390 3 52 345 300 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 5/16/2009 10:38:49 AM 25
Slide 26: Advances
Advances 400 3 71 365 360 363 329 320 326 Rs B 299 280 280 289 2 52 252 215 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 5/16/2009 10:38:49 AM 26
Slide 27: Net Interest Income
Net Interest Income 8.5 8 .1 7.9 7 .6 7 .3 7.3 Rs B 6 .8 6.7 6 .4 6 .2 6 .1 6 .0 6.1 5 .8 5.5 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 5/16/2009 10:38:49 AM 27
Slide 28: Net Provision
Net Provision 5.0 4 .4 4.0 2 .9 2 .8 Impairment Loss 2.2B 3.0 Rs B Provision–PR amendment 2 .2 FSV / others ( Rs 1.975M) Provision–FSV Rs 1.829M) 2.0 1. 2 1. 3 1.3 1.0 0 .4 0 .4 - M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 5/16/2009 10:38:49 AM 28
Slide 29: Non-Funded Income
Non-Funded Income 4.0 3.4 3 .0 3 .1 2 .9 2 .6 2.8 Rs B 2 .1 2 .2 2 .2 2 .1 2.2 Derivatives (change in 1.5 1.6 accounting Methodology) 1.0 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 5/16/2009 10:38:49 AM 29
Slide 30: Total Revenue
Total Revenue 11.0 9 .1 9.6 8 .5 8 .2 7 .8 7 .9 8.2 7 .5 Rs B 6.8 5 .8 5 .5 4 .4 5.4 4.0 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 5/16/2009 10:38:49 AM 30
Slide 31: Administrative Expenses
Administrative Expenses 4.5 4 .1 4 .1 4.1 3 .9 3 .8 ERS (Rs 92M) Amor. cost (Rs 179M) 3.7 3 .5 Rs B 3 .4 3 .4 3 .7 ERS (Rs 70M) Amor. cost (Rs 322M) 3.3 ERS (Rs 307M) 2 .9 ERS (Rs 87M) 2.9 Reversals in Mar’07 of accruals in Dec’06 2.5 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09
Slide 32: The information contained herein reflects our latest business statement as at March 31, 2009
The information contained herein reflects our latest business statement as at March 31, 2009 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 33: Thank You
Thank You 5/16/2009 10:38:49 AM 33