United Bank For Africa Plc · NSENG:UBA

United Bank For Africa — Q1 2014 Earnings Presentation

25 slides from United Bank For Africa's earnings presentation, Apr 29, 2014

  1. Slide 1: Quarter One 2014 Investors/Analysts Presentation

    Quarter One 2014 Investors/Analysts Presentation APRIL 29, 2014 1

  2. 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. A

  3. Slide 3: Important Notes

    Important Notes Definition of terms: FY means “Full Year”; and Q1 means “First Quarter”; Q2 means “Second Quarter”; HY means “Half Year”; H1 means “First Half”; Q3 means “Third Quarter” and 9M means “Nine Months”. The results were prepared in line with the International Financial Reporting Standards

  4. Slide 4: Outline

    Outline 1 Overview of UBA 2 Macroeconomic Overview 3 Quarter One 2014 Financial Highlights 4 Review of Quarter One 2014 Financial Results 5 Focus on UBA Congo Brazzaville 6 Appendix 4

  5. Slide 5: 1. Overview of Macro Economy

    1. Overview of Macro Economy 5

  6. Slide 6: Overview of Macro Economy

    Overview of Macro Economy Nigeria Ghana Guinea Liberia Benin Republic Cameroun Locations outside Africa GDP ($bn) 432.0 GDP ($bn) 41.0 GDP ($bn) 7.0 GDP ($bn) 2.0 GDP ($bn) 8.0 GDP ($bn) 25.0 GDP Growth 6.8% GDP Growth 4.9% GDP Growth 4.2% GDP Growth 8.1% GDP Growth 4.2% GDP Growth 6.1% Population (

  7. Slide 7: 2. Quarter One 2014 Financial Highlights

    2. Quarter One 2014 Financial Highlights 7

  8. Slide 8: Q1 2014 Financial Highlights

    Q1 2014 Financial Highlights Comprehensive Income & Profit 31-Mar-14 31-Mar-13 % Change Gross Earnings 68,079 62,942 +8.16% Net Interest Income 29,272 27,159 +7.78% COMPREHENSIVE INCOME & PROFIT Operating Income 45,512 44,633 +1.97% TREND Operating Expenses (31,427) (29,393) +6.92% (N’million) Profi

  9. Slide 9: 3. Review of Quarter One 2014 Financial Highlights

    3. Review of Quarter One 2014 Financial Highlights 9

  10. Slide 10: Income Analysis

    Income Analysis Gross income trend (N’bn) Gross earnings by income type 100.0% 68.1 62.9 31.6% 29.5% 26.7% 80.0% 52.4 60.0% non interest 40.0% 73.3% 68.4% 70.5% income 20.0% interest income 0.0% Q1'12 Q1'13 Q1'14 Q1'12 Q1'13 Q1'14 Revenue split by geography Nigeria & RoW Africa (excl. Nig) • Growing

  11. Slide 11: Profitability

    Profitability Operating Income (N’bn) Profit After Tax for the Year (N’bn) 45.5 44.6 15.6 13.1 12.6 38.0 Q1'12 Q1'13 Q1'14 Q1'12 Q1'13 Q1'14 Return on Avg. Equity Return on Avg. Assets • Growth in operating income inched up by 1.9% in Q1’14. 2.6% 29.7% 1.9% • Consequently, profit after tax of N12.6

  12. Slide 12: Profit Drivers

    Profit Drivers Net Interest Margin Cost of Funds 6.0% 3.6% 5.9% 3.2% 5.2% 3.0% Q1'12 Q1'13 Q1'14 Q1'12 Q1'13 Q1'14 Cost-to-Income Ratio • Net Interest Margins nowb5.9%, regulatory induced pressure on earnings. 65.9% 69.1% • Cost-to-income ratio increased to 69.1% in 61.2% the period under review. Q1

  13. Slide 13: Financial Position

    Financial Position Total Assets (N’trn) Total Assets plus Contingents (N’trn) 3.1 2.6 2.9 2.4 2.1 Q1'13 Q1'14 Q1'12 Q1'13 Q1'14 Total Assets Mix • Solid balance sheet position of 2.7% 2.8% 3.3% 2.9% N3.1 trillion, of which assets Cash and bank balances constitute N2.6 trillion (83%). 29.4% Loans 28.

  14. Slide 14: Loan Portfolio

    Loan Portfolio Loan Book (N’bn) Loan Book, by Customer Type 6.1% 4.3% 4.1% 7.2% 8.0% 1009.8 Corporate 8.4% 4.8% 9.7% 8.3% 13.0% 13.6% 703.7 19.4% 664.2 Retail Public Sector 61.8% 65.9% 59.5% Commercial Q1'12 Q1'13 Q1'14 Financial Sector Q1,12 Q1'13 Q1'14 NPL Ratio • Loan growth expected to kick in o

  15. Slide 15: Loan Portfolio (Cont'd)

    Loan Portfolio (Cont’d) Loan Distribution, by Sector Real Estate, 1% Agric, 5% Others, 8% Construction, 6% Finance, 4% Power, 7% Personal, 13% Oil & Gas, 18% Commerce, 9% Loan Distribution, by Geography Manufacturing, 12% Government, 8% Rest of Communication, 9% World, 16% Nigeria, 84% 15 15

  16. Slide 16: Deposit Portfolio

    Deposit Portfolio Deposit Book (N’trn) Deposit Mix, by Cost 2.2 18.3% 24.2% 21.5% Expensive 2.0 Cheap 81.7% 75.8% 78.5% 1.6 Q1'13 FY'13 Q1'14 • Deposit grew by 8.5% in Q1’14 compared with Q1’13, while it declined from Q4’13 position by a marginal 1.5%. • Generated largely from cheap sources • Cheap

  17. Slide 17: Funding, Liquidity and Capital Adequacy

    Funding, Liquidity and Capital Adequacy Funding Mix Capital Adequacy Ratio Deposits Equity Borrowing Others 23.5% 23.8% 21.2% 6.6% 4.8% 1.8% 5.0% 7.2% 9.2% 9.4% 7.4% 84.3% 83.8% 65.8% Q1'13 FY'13 Q1'14 Liquidity Ratio Q1'12 FY'13 Q1'14 69.8% • Deposits represent 83.8% of total funding 60.0% base, la

  18. Slide 18: 4. Focus on Congo Brazzaville

    4. Focus on Congo Brazzaville 18

  19. Slide 19: Congo Brazzaville – Key Financial Highlights

    Congo Brazzaville – Key Financial Highlights Comprehensive Income & Profit 31-Mar-14 31-Mar-13 Change % COMPREHENSIVE INCOME Gross Earnings 799 368 118% & PROFIT TREND (N’million) Net Interest Income 237 69 245% Non Interest Income 534 292 83% Operating Income 770 361 113% Operating Expenses 538 353

  20. Slide 20: Income Analysis

    Income Analysis Revenue Trend (N’ ’mn) Revenue Mix (%) Interest Income Non Interest Income 799.9 38% 33% 367.8 62% 67% Q1'13 Q1'14 FY'13 Q1'14 Profitability (N’ ’mn) 232.0 • Gross Earnings grew by an impressive 118% from N367.8 million in Q1’13 to N800.0 million in the period under review on back of

  21. Slide 21: Financial Position

    Financial Position Growing Asset Base (N’ ’mn) Deposits (N‘ ‘mn) 18,698 24,873 18,000 21,422 15,555 12,000 10,358 6,137 6,000 - Q1'13 FY'13 Q1'14 Q1'13 FY'13 Q1'14 Loan growth (N’ ’mn) 12,000.0 11,640.9 100% Good loan growth of 592% in the period under review relative to Q1’13; it also grew 28% from

  22. Slide 22: Improving Profitability and Efficiency

    Improving Profitability and Efficiency Return on Assets Trend in Cost/Income 97.8% 85.9% 1.5% 69.9% 0.0% Q1'13 Q1'14 Q1'13 FY'13 Q1'14 Return on Equity • Robust profitability: as ROE and ROA were 6.5% impressive, at 6.5% and 1.5% respectively. • Cost to income ratio declined significantly from 85.9%

  23. Slide 23: 5. Appendix

    UBA United Bank for Africa RC: 2457 5. Appendix England France figeria = Ghana. Cameroun Cote d'Ivoire Burkina Taso Uganda Liberia Congo Brazzaville = Africa New York e London ° Paris Africa’s global bank

  24. Slide 24: Summary Historical Financials

    Summary Historical Financials FY2010 FY2011 FY2012 Q4 2013 FY2013 Q1 2014 Key P & L line (N’ million) Gross earnings 177,571 184,833 220,129 76,666 263,947 68,079 Interest income 117,745 121,422 150,003 52,943 184,623 49,917 Interest expense (46,969) (46,125) (58,386) (27,876) (82,459) (20,645) Net

  25. Slide 25: Thank you

    UBA United Bank for Africa RC: 2457 Thank you England France figeria = Ghana. Cameroun Cote d'Ivoire Burkina Taso Uganda Liberia Congo Brazzaville = Africa New York e London ° Paris Africa’s global bank

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