United Bank For Africa Plc · NSENG:UBA
United Bank For Africa — FY2021 Earnings Presentation
33 slides from United Bank For Africa's earnings presentation, March 2022
Slide 1: Investor Presentation 2021 Full Year Results
Investor Presentation 2021 Full Year Results March 2022 Africa’s Global Bank
Slide 2: Disclaimer
Disclaimer IMPORTANT: 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 and other
Slide 3: Table of Contents
Table of Contents 1 About UBA 02 2 2021 – The Year In Review 08 3 Financial Performance 13 4 UBA Payment Business Update 20 5 Outlook/Guidance & Appendices 23 2
Slide 4: Disrupting financial services across Africa Continent
Disrupting financial services across Africa Continent Vision Mission To be the undisputed leading and dominant financial services To be a role model for African businesses by creating superior institution in Africa. value for all stakeholders, abiding by the utmost professional and ethical standards
Slide 5: Our Core Values
Our Core Values E E E Excellence Execution Enterprise • Be responsive and passionate • Surpass customers’ • Get it done • Own the task expectations always • Get it done now • Go the extra mile, solve problems • Maintain quality standards • Get it done very • Show initiative • Be meticulous - make it
Slide 6: UBA at a Glance
UBA at a Glance Leveraging our pan-African strategy for optimum value Footprint /Channels 20 25 million 20,000+ 1,000+ 2,697 119,303 13.5 million African Countries Customers Staff* Business ATMs PoS Cards + Offices** UK (London) USA (New York) France (Paris) UAE (Dubai) Financial Highlights CAR 24.9
Slide 7: Sustained Credit Ratings
Sustained Credit Ratings National National National National • Short-term: A1+(NG) • Short-term: ngA-2 • Short-term: Aa- • Short-term: F1+(nga) • Long-term: AA+(NG) • Long-term: ngBBB • Long-term: A+(nga) International International International • Long-term: B • Short –term: B • Short –term: B • Lo
Slide 8: Table of Contents
Table of Contents 1 About UBA 03 2 2021 – The Year In Review 08 07 3 Financial Performance 13 4 UBA Payment Business Update 20 5 Outlook/Guidance & Appendices 23 7
Slide 9: Nigeria: Macroeconomic update
Nigeria: Macroeconomic update Interest The MPC kept policy rates unchanged in 2021; albeit, Exchange Increased pressure on the NGN, driven by rate Rate market rates remain volatile Rate adjustments, unmet demand & lean supply 500.0 481.21 482.82 MPR (%) T-Bill (%) Inter Bank Call CBN (SMIS) 459.05 B
Slide 10: Nigeria – Key Policy Events/Pronouncements in 2021
Nigeria – Key Policy Events/Pronouncements in 2021 • MPR held at 11.5% by MPC at its first 2021 meeting • CBN issued directives for IMTOS to disburse diaspora remittances in foreign currency Q1’21 • CBN emphasizes prohibition of Crypto currency transactions • CBN introduced "Naira 4 Dollar Scheme" f
Slide 11: Highlights of a few Operating Economies - ex-Nigeria
Highlights of a few Operating Economies - ex-Nigeria GDP per Capita Countries Growth Inflation Policy Rate Growth Drivers Growth 2020 0.4% -1.1% 10.4% Dec. 2020 14.5% Agriculture, Manufacturing, 2021 4.7% 3.0% 12.6% Aug. 2021 13.5% Services, Mining Ghana 2022F 6.2% 3.5% 12.2% Jan. 2022 14.5% 2020 2.
Slide 12: Table of Contents
Table of Contents 1 About UBA 03 2 2021 – The Year In Review 07 3 Financial Performance 11 4 UBA Payment Business Update 20 5 Outlook/Guidance & Appendices 23 11
Slide 13: Financial Highlights
Financial Highlights 2021 2020 % Change Gross Earnings 660,219 616,843 7% Net Interest Income 316,711 259,467 22% Comprehensive Income & Profit Trend Operating Income 442,994 403,042 10% (N’ millions) Operating Expenses 278,986 249,847 12% Profit Before Tax 153,073 127,257 20% Profit After Tax 118,6
Slide 14: Resilience amidst turbulence: Key Takeaways from FY'21 Results
Resilience amidst turbulence NPL Ratio 3.6% Asset Base: N8.5trn Dec’20: 4.7% 110bps Dec’20: N7.7tn 11% Solid balance sheet which is Improved asset quality adequately capitalised with underpinned by robust and significant headroom to explore proactive risk management opportunities across Africa pract
Slide 15: Moderated cost of funds, protecting interest margin
Moderated cost of funds, protecting interest margin PBT PAT Fig. in Nbn Net Interest Margin Cost of Funds 6.0% 6.3% 4.0% 4.1% 153.1 5.4% 5.4% 2.9% 118.7 127.3 109.2 111.3 106.8 2.20% 89.1 78.6 2021 2020 2019 2018 2021 2020 2019 2018 2021 2020 2019 2018 Return On Average Equity Return On Average Asse
Slide 16: Strong interest income growth in low yield environment
Strong interest income growth in low yield environment Gross Earnings (N’bn) Earnings Contribution (%) Earnings Contribution 660.2 616.8 28% 560.2 494.5 Interest income Non-interest income 2021 2020 2019 2018 • Steady growth in gross earnings 72% underpinned by strong growth in balance sheet, custom
Slide 17: Sustained growth in non-interest income
Sustained growth in non – interest income Fees & Commission Income (N’bn) Trends of key non-interest income lines (N’bn) 159 62.8 127 Electronic banking income Trade transactions income 111 94 44.2 38.8 27.9 19.5 19.1 19.5 14.1 2021 2020 2019 2018 FY'21 FY'20 FY'19 FY'18 Contributions to Fees and Co
Slide 18: Balance Sheet Performance
Balance Sheet Performance Total Assets (N’Trn) Customer Deposit (N’Trn) Net Loans (N’Trn) 8.5 6.4 7.7 5.7 2.8 2.7 2.3 5.6 4.9 3.8 1.7 3.3 2021 2020 2019 2018 2021 2020 2019 2018 2021 2020 2019 2018 Asset Mix(%) Funding Mix(%) • The Group maintains a well-diversified balance sheet, with about 45% of
Slide 19: Well-diversified loan book with NPL ratio on a decline
Well-diversified loan book with NPL ratio on a decline Loan Book Distribution by Sector NPL Distribution By Sector Oil and Gas Oil and Gas 21% 19% General Manufacturing 2% 1%2% 36% General Commerce General Commerce 12% Power and Energy Manufacturing 2% 9% Finance and Insurance Construction & Real Es
Slide 20: Table of Contents
Table of Contents 1 About UBA 03 2 2021 – The Year In Review 07 3 Financial Performance 12 4 UBA Payment Business Update 19 5 Outlook/Guidance & Appendices 23 19
Slide 21: Our Key Payment Channels
Our Key Payment Channels With UBA Leo You can now Send Money, Buy Airtime, UBA Cards (Debit, Credit The UBA Digital Experience on UBA Internet Banking is an Check Account Balance, UBA Mobile App provides and Prepaid) can be used to Mobile and Web is an integrated single sign-on Pay Bills and a lot m
Slide 22: Our Key Payment Channels
Our Key Payment Channels UBA Cardless Withdrawal Services UBA API Banking Services The Cardless Withdrawal Service The UBA Contactless Payment With this service, we have Allows merchants and customers to enables customers to carry out been able to extend banking transactions on ATMs across UBA accep
Slide 23: Digital channels performance
Digital channels performance Subscription (‘M) 1.4 2.1 1.6 3.6 7.6 17.2** 2.559** Count (‘M) 2019 3.0 95.0 8.7 158.4 330.3 41.2 207.3 Value (N’B) 20.7 3,639 6,750 322 2,814 309 1,940 Subscription (‘M) 2.2 2.9 2.8 5.03 9.9 33.7** 2.679** Count (‘M) 2020 5.5 191.3 11.0 260.6 394.4 84.6 174.1 8,322 528
Slide 24: Customer Demography
Customer Demography Customers # Below 30 Ppercentag Years e 2019 27% 16.1M 4.3M 2020 19.8M 6.2M 31% Our customer base is getting younger. 2021 24.7M 9.5M 39% 23
Slide 25: Digital Banking Income
Digital Banking Income 2020 2021 Growth N’B N’B Digital Banking 44.248 64.595 46% Income 24
Slide 26: Laurels across the Group in 2021
Laurels across the Group in 2021 UBA Group UBA Group UBA Benin UBA Burkina Faso Winner, Africa Bank of the Year Winner, Bank of the Year Winner, Bank of the Year Awarding Institution: The Banker Awarding Institution: The Banker Awarding Institution: The Banker Awarding Institution: The Banker Magazi
Slide 27: Table of Contents
Table of Contents 1 About UBA 03 2 2021 – The Year In Review 07 3 Financial Performance 12 4 UBA Payment Business Update 19 5 Outlook/Guidance & Appendices 26 26
Slide 28: 2022 FY Guidance
2022 FY Guidance FY’21 FY’21 FY’22 Guidance Achieved Guidance Deposit Growth ~15% 15.3% ~15% Loan Growth ~20% 7.7% ~15% Cost of Risk ~1% 0.4% ~1% Non Performing Loan Ratio ~5% 3.6% ~4% Return on Average Equity ~18% 15.6% ~18% Return on Average Assets ~1.8% 1.5% ~1.8% Capital Adequacy Ratio ~24% 24.9
Slide 29: Outlook for 2022
Outlook for 2022 Macroeconomic Banking Industry/ UBA Group environment in our largest Policy Environment - NIGERIA 2022 Key Focus Area Market - NIGERIA • Nigeria’s economy to expand 3% in 2022, driven by developments in the oil sector, according to • NIM upside is expected as interest rates trend •
Slide 30: Summary Financials..1/3
Summary Financials..1/3 United Bank for Africa Plc Consolidated and Separate Statements of Comprehensive Income For the year ended 31 December 2021 * Restated In millions of Nigerian Naira Group Bank 2021 2020 2021 2020 I nterest income 474,262 427,862 288,564 274,975 I nterest income on amortised c
Slide 31: Summary Financials..2/3
Summary Financials..2/3 United Bank for Africa Plc Consolidated and Separate Statements of Financial Position As at 31 December 2021 Group Bank * Restated 31 Dec. 21 31 Dec. 20 31 Dec. 21 31 Dec. 20 In millions of Nigerian Naira ASSETS Cash and bank balances 1,818,784 1,874,618 1,446,906 1,436,822 F
Slide 32: Summary Financials..3/3
Summary Financials..3/3 United Bank for Africa Plc Consolidated and Separate Statements of Financial Position As at 31 December 2021 Group Bank * Restated 31 Dec. 21 31 Dec. 20 31 Dec. 21 31 Dec. 20 In millions of Nigerian Naira LIABILITIES Deposits from banks 654,211 418,157 483,110 121,815 Deposit
Slide 33: Thank You
Thank You 57 Marina, Lagos Island, Lagos, Nigeria investorrelations@ubagroup.com +234-1-280 - 8760 …Happy Customer Happy Bank
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