United Bank For Africa Plc · NSENG:UBA
United Bank For Africa — 9M 2012 Earnings Presentation
31 slides from United Bank For Africa's earnings presentation, Oct 19, 2012
Slide 1: United Bank for Africa Plc Nine Months 2012 Results
United Bank for Africa Plc Nine Months 2012 Results Investors/Analysts Presentation October 19, 2012
Slide 2: Forward Looking Statements
Forward Looking Statements From time to time, the Bank makes written and/or oral forward-looking statements, including 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 others.
Slide 3: Important Notes
Important Notes Definition of terms: FY means “Full Year”; 1Q means “First Quarter”; 2Q means “Second Quarter”; 1H means “Half Year;. 3Q means “Third Quiarter” and 9M means “Nine Months”. The Nine Months 2012 result was prepared in line with the IFRS. In our analysis, the nine months 2012 balance sh
Slide 4: Outline
Outline Section 1 Financial Highlights Section 2 Review of Financial Performance Section 3 Key Management Section 4 Africa Focus: UBA Ghana Section 5 Objectives for 2012 Section 6 Outlook Section 7 Appendix 4
Slide 5: 1. Financial Highlights
UBAM United Bank for Arica Pic 1. Financial Highlights
Slide 6: Highlights – 9 Months 2012 Results
Highlights – 9 Months 2012 Results Income & Profitability 30-Sep-12 30-Sep-11 % Change Gross Earnings 168,200 138,504 +21.4% Net Interest Income 69,706 61,355 +13.6% Other Income 53,364 43,904 +21.6% INCOME TREND Operating Income 121,803 104,084 +17.0% Operating Expenses (75,015) (77,754) -3.5% Prof
Slide 7: 2. Review of Financial Performance
2. Review of Financial Performance 7
Slide 8: Revenue Trend
Revenue Trend Growing revenue base (N’bn) Revenue streams, last four quarters (N’bn) 70 60 57 57 168.2 50 54 40 45 136.4 138.5 30 20 10 0 4Q11 1Q12 2Q12 3Q12 9M10 9M11 9M12 Growing non-interest income (N’bn) Strong growth in gross earnings, 21.4% improvement year-on-year. 18.2 18.2 16.6 Revenues nor
Slide 9: Revenue Mix
Revenue Mix Revenue mix, by geography Regional Revenue split, Africa excl-Nigeria Africa excl. Nigeria Nigeria E&SA 10% 12% WAMZ 22% 23% CEMAC 29% 16% 88% 78% 77% 9M10 9M11 9M12 UEMOA 45% Non-interest income mix (N’bn) Revenue contribution from bank subsidiaries continue to move in line with our exp
Slide 10: Profit Analysis
Profit Analysis Operating income & PBT (N’bn) Improving PBT in Africa excl-Nigeria (N’bn) Operating Income PBT 4.8 FY11 9M12 121.8 2.8 104.1 2.2 96.2 1.9 0.8 0.1 44.9 11.6 9.4 (0.8) (1.3) 9M10 9M11 9M12 WAMZ UEMOA CEMAC E&SA Improving cost to income ratio Strong operating income of N122bn, up by 17%
Slide 11: Interest Margins and Return Analysis
Interest Margins and Return Analysis Net Interest Margins Return on Assets Return on Equity 28.1% 27.1% 6.1% 2.6% 2.5% 5.9% 4.8% 6.8% 0.7% 1H11 1H12 9M12 1H11 1H12 9M12 9M11 1H12 9M12 Cost of funds Net interest margins now 5.9%. Slip is largely as a result of the low margins on foreign currency (fcy
Slide 12: Assets Analysis
Assets Analysis Total assets, N’tr Total assets rose by 11.1% to N2.16tr on the back of sizeable growth in funding base. 2.16 2.04 1.95 African operations (excl-Nigeria) represent 14% of total assets UEMOA region account for 57% of assets outside Nigeria. FY11 1H12 9M12 Total asset split by geograph
Slide 13: Loans Analysis
Loans Analysis Net loan portfolio, N’bn NPL ratio Coverage ratio Africa excl-Nigeria Nigeria Incl-Air Nigeria Excl-Air Nigeria NPL 137.9 Excl-Air Nigeria Incl-Air Nigeria NPL % 58 102 101 6.8% 107.6 94.4% % 632 632 610 3.7% 2.4% 2.2% 44.3% FY11 1H12 9M12 FY11 1H12 9M12 FY11 1H12 9M12 Loan split by i
Slide 14: Deposits Analysis
Deposits Analysis Total deposits Africa excl-Nigeria Nigeria Growth in deposit base continues – Group deposits up 12% over 2011 position. 13.6% 14.9% 17.1% Proportion of low cost deposits improved further to 83% (1H12: 80%) 86.2% 84.9% 82.8% UEMOEA region accounts for 55% of deposits outside Nigeria
Slide 15: Funding and Risk Profile
Funding and Risk Profile Funding mix Robust liquidity & capital adequacy UBA's CAR Liquidity ratio Loan/deposit 60.0% 59.7% 58.6% 10% 10% 9% Borrowings 7% 7% 5% 47.7% 49.0% 9% 10% 43.5% 10% Other liabilities Equity 23.7% 23.9% 74% 73% 76% 17.0% Deposits FY11 1H12 9M12 FY11 1H12 9M12 Strong ROE Fundi
Slide 16: 3. Key Management
UBAM United Bank for Arica Pic 3. Key Management 16
Slide 17: Key Management Personnel
Key Management Personnel 17 Years of Name Position Experience Experience Phillips Oduoza GMD/CEO 25 International Merchant Bank MBCom Kennedy Uzoka DMD 18+ Crystal Bank of Africa Universal Trust Bank Plc FSB International Bank Rasheed Olaoluwa ED, UBA Nigeria, South 25+ 25+ ANZ Merchant Bank now par
Slide 18: Key Management Personnel (cont'd)
Key Management Personnel (cont’d) 18 Years of Name Position Experience Experience 25+ Ifeatu Onejeme ED, Head of Corporate Banking Femi Olaloku ED, Operations and Info. Tech 20+ Dan Okeke ED, UBA Nigeria , North 17+ Ugo Nwaghodoh Chief Finance Officer 18+ 18
Slide 19: 4. Africa Focus: UBA Ghana
UBAM United Bank for Arica Pic 4. Africa Focus: UBA Ghana 19
Slide 20: UBA Ghana: Income and Profit Analyses
UBA Ghana: Income and Profit Analyses Gross Earnings Mix (N’bn) Distribution of non-interest income Non-interest income Interest income 3.1 56.0% 55.8% 50.5% Comm. & Fees COT 2.4 5.7% 1.5 7.4% 6.6% Exchange Earnings 3.8 36.7% 37.6% 43.9% 2.3 2.6 9M10 9M11 9M12 9M10 9M11 9M12 Profits Before Tax (N’bn
Slide 21: UBA Ghana: Income and Profit Drivers
UBA Ghana: Income and Profit Drivers Loan-to-deposit ratio Robust Net Interest Margin over Cost of Funds 21.5% 48.6% 16.4% Cost of funds 11.2% 25.2% Net interest 22.3% 5.0% margins 2.9% 3.5% 9M10 9M11 9M12 9M10 9M11 9M12 Efficient cost-to-income ratio Sustained credit expansion continue to support r
Slide 22: UBA Ghana: Growing Balance Sheet
UBA Ghana: Growing Balance Sheet Total assets, N’bn Growing loans and deposits, N’bn Loans 38.8 Deposits 37.6 26.3 26.9 23.6 15.9 13.1 6.6 3.6 9M10 9M11 9M12 9M10 9M11 9M12 Deposit mix Impressive growth in assets recorded. 13.0% 19.9% 18.3% Loan book and deposits also on the rise with 14.8% 9.4% 9.3
Slide 23: 5. Objectives for 2012
UBAM United Bank for Arica Pic 5. Objectives for 2012 23
Slide 24: Objectives and Strategies for 2012
Objectives and Strategies for 2012 OBJECTIVES STRATEGIES Grow Low Cost Energize the Bank’s large branch network for low cost deposit mobilization Deposits Aggressively drive e-banking businesses to grow cheap deposit Utilize an appropriate performance mgt system to focus sales teams on deposit Targe
Slide 25: 6. Outlook
UBAM United Bank for Arica Pic 6. Outlook 25
Slide 26: Outlook for Full Year 2012
Outlook for Full Year 2012 We are poised to withstand the challenges posed by the economies we operate in; Recent trend in performance to be sustained; Contributions from bank subsidiaries in Africa to be sustained; Compliance plan on Holding Company model to be concluded; Resolution of Air Nigeria
Slide 27: In Summary, we have sustained a strong Result
In Summary, we have sustained a strong Result… Income & Profitability 30-Sep-12 30-Sep-11 % Change Gross Earnings 168,200 138,504 +21.4% Net Interest Income 69,706 61,355 +13.6% Other Income 53,364 43,904 +21.6% TREND Operating Income 121,803 104,084 +17.0% Operating Expenses (75,015) (77,754) -3.5%
Slide 28: 7. Appendix
UBAM United Bank for Arica Pic 7. Appendix 28
Slide 29: Summary Historical Financials
Summary Historical Financials 2009 2010 2011 1Q 2012 2Q 2012 3Q 2012 Key P & L line (N’ million) Gross earnings 194,315 177,571 184,833 53,864 57,140 57,196 Interest income 142,278 117,745 121,422 36,833 38,962 39,041 Interest expense (47,727) (46,969) (46,125) (14,485) (14,921) (15,724) Net interes
Slide 30: Revised Restructuring Plan Approved by the CBN
Revised Restructuring Plan Approved by the CBN UBA POST-RESTRUCTURE SHAREHOLDERS SHAREHOLDERS UBA PLC AFRICAN BANKING SUBSIDIARIES UBA AFRICA UBA UBA UBA AFRILAND PENSIONS PRUDENTIAL NEW YORK FX MART CAPITAL PROPERTIED UBA CAPITAL LIMITED UBA GHANA CUSTODIAN REGISTRARS UBA CAMEROON SA BRANCH LTD. EU
Slide 31: Thank you
UBAM United Bank for Arica Pic Thank you SMAS/EMAR, ALERTS 3¢' ae] aaa? 31
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