Union Bank Of Colombo Plc · CSELK:UBC.N0000
Union Bank Of Colombo — Q1 2021 Earnings Presentation
15 slides from Union Bank Of Colombo's earnings presentation, March 2021
Slide 1: Investor Presentation
Investor Presentation March 2021 1
Slide 2: Overview
Overview Vision: “Our Vision is to be the innovator of Banking Solutions to the wider Corporate, SME and Retail Segments and to be their Bank of choice, through professional and empowered people”. Mission: ▪ To our customers we provide the means of economic upliftment through customized banking and
Slide 3: CEO's message
CEO’s message “We are off to a positive start in 2021, and the 1st quarter performance signifies the Bank’s capacity to reach the growth targets set for the year. We are continuing to support our customers who have been impacted by the COVID-19 pandemic and will be focused to achieve the desired str
Slide 4: Steady growth in 1Q 2021
Steady growth in 1Q 2021 Income Statement (Rs.Mn) 1Q 2021 1Q 2020 Inc/Dec (%) Net Interest Income 985 1,031 -4.4% Net Fee & Commission Income 216 201 7.3% Net Trading & Other Operating Income 320 267 19.8% Total Operating Income 1,521 1,498 1.5% Impairment Charge 196 93 111.3% Total Operating Expens
Slide 5: Net Fee Income increased by 7.3%
Net Fee Income increased by 7.3% Net Interest Income (Rs.Mn) Net Fees & Commission (Rs.Mn) 219 216 1,013 1,031 985 197 201 853 767 166 528 444 330 62 28 25 1Q 14 1Q 15 1Q 16 1Q 17 1Q 18 1Q 19 1Q 20 1Q 21 1Q 14 1Q 15 1Q 16 1Q 17 1Q 18 1Q 19 1Q 20 1Q 21 Net Interest Margin was 3.2% - impacted by Net F
Slide 6: Operating Expenses declined by 9.4% YoY
Operating Expenses declined by 9.4% YoY Net Trading & Other (Rs.Mn) Operating Expenses (Rs.Mn) 320 1,001 938 955 261 267 907 221 771 672 546 136 109 358 95 78 1Q 14 1Q 15 1Q 16 1Q 17 1Q 18 1Q 19 1Q 20 1Q 21 1Q 14 1Q 15 1Q 16 1Q 17 1Q 18 1Q 19 1Q 20 1Q 21 • Improved treasury performance with resultan
Slide 7: Operating Margin increased by 23.4% YoY
Operating Margin increased by 23.4% YoY Operating Margin (Rs.Mn) Operating Income (Rs.Mn) 500 1,521 450 CAGR 19% 400 350 300 453 250 200 1Q 14 1Q 21 150 100 50 - Operating Expenses (Rs.Mn) 1Q 14 1Q 15 1Q 16 1Q 17 1Q 18 1Q 19 1Q 20 1Q 21 907 CAGR 14% • Total operating income increased by 1.5% to Rs.
Slide 8: Gross NPL Ratio improved to 5.85%
Gross NPL Ratio improved to 5.85% Impairment Charge (Rs.Mn) Gross NPL (%) 8.25% 196 6.05% 5.85% 5.03% 109 3.68% 93 93 3.55% 75 2.69% 2.40% 58 51 42 1Q 14 1Q 15 1Q 16 1Q 17 1Q 18 1Q 19 1Q 20 1Q 21 2014 2015 2016 2017 2018 2019 2020 2021 The gross NPL ratio improved to 5.85% from 6.05% Impairment Char
Slide 9: Balance Sheet - Bank
Balance Sheet - Bank Growth Balance Sheet (Rs.Mn) Mar 2021 Mar 2020 (%) Treasury Assets 44,989 47,750 -5.8% Net Loans (Rs.Mn Loans & Advances 71,609 67,518 6.1% 71,609 Cash & Balances with CB 3,278 3,128 4.8% Other Assets 4,920 4,547 8.2% Total Assets 124,796 122,943 1.5% 25,944 Borrowings 20,676 20
Slide 10: CASA Ratio stood at 30.5%
CASA Ratio stood at 30.5% Net Loans (Rs.Mn Deposits (Rs.Mn) 82,384 83,829 77,358 79,251 76,532 73,749 71,609 70,578 70,326 67,518 55,438 51,841 40,095 37,653 25,944 27,809 2014 2015 2016 2017 2018 2019 2020 1Q 2014 2015 2016 2017 2018 2019 2020 1Q 2021 2021 CASA (Rs.Mn) • Total EOP CASA grew by 4.2%
Slide 11: Strong Capital Adequacy ratio of 15.75%
Strong Capital Adequacy ratio of 15.75% • Capital Adequacy Ratio - The Bank continued to maintain high capital adequacy ratios. - The total capital ratio as at end 2020 was 15.75% - well above the statutory requirement of 12%. • Liquidity Coverage - The Bank maintains a very strong position of LKR L
Slide 12: Income Statement - Group
Income Statement - Group Inc/Dec Income Statement (Rs.Mn) 1Q 2021 1Q 2020 (%) Net Interest Income 1,223 1,188 3.0% Net Fee & Commission Income 244 226 8.3% Net Trading & Other Operating Income341 288 18.4% Total Operating Income 1,808 1,701 6.3% Impairment Charge 238 136 74.4% Total Operating Expens
Slide 13: Balance Sheet - Group
Balance Sheet - Group Growth Balance Sheet (Rs.Mn) Mar 2021 Mar 2020 (%) Net Loans (Rs.Mn Treasury Assets 44,431 47,141 -5.7% 77,776 Loans & Advances 77,776 73,777 5.4% Cash & Balances with CB 3,690 3,555 3.8% Other Assets 5,409 5,098 6.1% 29,218 Total Assets 131,305 129,570 1.3% Borrowings 22,232 2
Slide 14: Key Performance Indicators
Key Performance Indicators BANK GROUP Item 31 Mar 2021 31 Dec 2020 31 Mar 2021 31 Dec 2020 Regulatory Capital - Rs '000 Common Equity Tier 1 (Basel III) 15,384,043 15,415,491 15,975,177 16,024,248 Tier 1 Capital / Core Capital (Basel III) 15,384,043 15,415,491 15,975,177 16,024,248 Total Capital / T
Slide 15: Corporate Information
Corporate Information Board of Directors Legal Form Name Title A Public Limited Liability Company incorporated in Sri Lanka under the Companies Act No. 17 of 1982. Atul Malik Chairman/Ind. Non-Exec. Director Sabry Ghouse Deputy Chairman/ Ind. Non-Exec. Director Re-registered under the Companies Act
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