United Bank Limited · PSX:UBL

United Bank — Q1 2011 Earnings Presentation

33 slides from United Bank's earnings presentation, Apr 27, 2011

  1. Slide 1: United Bank Limited Performance Review March 2011

    United Bank Limited Performance Review March 2011 April 27, 2011 Abu Dhabi 1

  2. Slide 2: Key Highlights

    Keyy Highlights g g • On standalone basis, PAT up by 18% at Rs.3.3 Bn YoY and consolidated 24% at 3.4 Bn YoY • Net interest income up by 11% to Rs 9.1 Bn o NIM increased by 10 bps to 7.2% in Mar’11 o Increase in y yield on earning g assets by y 60 bps p o Increase in cost of funds by 50 bps • Non ma

  3. Slide 3: Key Highlights

    Keyy Highlights g g • Total provisions increased by 10% to Rs 2.3 Bn, due to downgrading of previously classified accounts. • Administrative expenses reduced QoQ by 6%, up 14% YoY o Cost to income ratio improved (Q1 11: 38.3%, Q1 10: 38.7%, Q4 10: 41.4%) o YoY expenses are up due to inflationary env

  4. Slide 4: Share Info

    Share Info Standalone Consolidated Mar 2011 Dec 2010 Mar 2011 Dec 2010 EPS (Rs/share-annual.) 10.7 9.1 11.1 9.0 BV/share (Rs/share) 54.6 55.9 60.4 61.4 Price* - (Rs /share) 64.2 63.5 64.2 63.5 P/E 6.0x 7.0x 5.8x 7.0x P/BV 1.2x 1.1x 1.1x 1.0x # of shares 1,224M 1,224M 1,224M 1,224M * Mar-11 P ric e d

  5. Slide 5: Income Statement (Standalone)

    Income Statement ((Standalone)) PKR Bn Q1'11 Q1'10 Var % Q4'10 Var % Interest Earned 16.70 14.20 18% 16.08 4% Interest Expensed (7.60) (6.00) -27% (7.05) -8% Net Interest Income 9.11 8.20 11% 9.03 1% Non Interest Income 3.01 2.36 27% 2.83 6% Total Revenue 12.11 10.56 15% 11.85 2% Operating Expense (

  6. Slide 6: Income Statement - Consolidated

    Income Statement - Consolidated PKR Bn Q1'11 Q1'10 Var % Q4'10 Var % Interest Earned 16 92 16.92 14 37 14.37 18% 16 30 16.30 4% Interest Expensed (7.64) (6.03) -27% (7.14) -7% Net Interest Income 9.27 8.34 11% 9.16 1% Non Interest Income 3.33 2.52 32% 3.15 6% Total Revenue 12.60 10.85 16% 12.31 2% O

  7. Slide 7: Key Ratios

    Key y Ratios UBL Q1 11 Q1 10 Q4 10 Advances / Deposits 70% 80% 67% Asset Quality 14.3% 11.3% 13.2% Coverage 70.3% 73.1% 71.9% NCL Ratio 2.8% 2.5% 2.3% Yield on Advances 13.1% 12.4% 12.7% Cost of Deposits 4.3% 4.0% 4.2% Net Interest Margin 7.2% 7.1% 7.2% Revenue / Expense Ratio 2.61 2.59 2.42 Non Fun

  8. Slide 8: Deposits Structure (Bank Level)

    Deposits p Structure (Bank ( Level)) Cost of Deposits Deposits ‐ Bank Cost of Deposits Mar'11 Dec'10 6.4% Bank - Rs Rs. Bn PE COF% PE COF% 5.3% Domestic deposits 428 4.8% 443 4.6% 4.2% International deposits 101 2.4% 108 2.5% Total Bank 529 4.3% 551 4.2% 3.1% International $ Mn 1,178 2.4% 1,263 2.5%

  9. Slide 9: Net Advances

    Net Advances % Yield * Net Advances - Rs. Bn Mar'11 Dec'10 Change Q1 11 Q4 '10 Corporate Bank 161.7 148.5 9% 14.5% 13.4% Commercial ** 68.4 80.7 ‐15% 16.1% 15.9% Consumer 13.8 15.7 ‐12% 18.6% 19.4% Others 7.1 7.3 ‐2% 8.4% 3.3% Domestic 251.0 252.2 0% 15.1% 14.3% International 82.9 81.5 2% 7.6% 8.0%

  10. Slide 10: Consumer Advances by Product

    Consumer Advances by y Product Yield* Rs. Bn Mar'11 Dec'10 Change Q1 11 Q4 10 Drive 5.3 6.2 -15% 17.3% 16.3% Address 2.0 2.4 -14% 23.7% 29.0% Credit Card 2.1 2.2 -5% 22.3% 22.9% Cashline 1.9 2.1 -6% 15.4% 11.7% Businessline 2.2 2.6 -14% 17.3% 15.2% Money 0.2 0.3 -32% 28.3% 98.6% Total 13.8 15.7 -12%

  11. Slide 11: International Advances

    International Advances By Geography By Business - UAE Yemen, 9% Qatar, 13% NewYork, 0% EPZ, 0% Corporate, 69% Bahrain, 11% UAE, 67% Others, 7% Consumer, 24% Personal loan, 17% Abu Sharjah, Sharjah Others 2% Others, Dhabi, 10% 24% Baitna 81% Baitna, Dubai, 66% 11

  12. Slide 12: Spread Analysis - Bank Level

    Spread p Analysis y – Bank Level Bank Mar-11 Mar-10 Avg.Yield Avg.Yield Rs Bn PE AVG IE /Cost PE AVG IE /Cost Avg Kibor - 6M 13.8% 12.4% Interest Earning Assets Performing Advances 310 302 9.8 13.1% 313 325 10.0 12.4% Corporate 144 132 4.7 14.5% 138 140 4.6 13.4% Commercial 20 21 0.8 15.6% 24 25 0.9

  13. Slide 13: QTD NIM - Bank Level

    QTD NIM – Bank Level Bank Q1 2011 Q4 2010 Avg.Yield Avg.Yield Rs Bn PE AVG IE /Cost PE AVG IE /Cost Avg Kibor - 6M 13.8% 13.4% Interest Earning Assets Performing Advances 310 302 9.8 9 8 13.1% 13 1% 313 312 10.0 10 0 12.7% 12 7% Corporate 144 132 4.7 14.5% 135 133 4.5 13.4% Commercial 20 21 0.8 15.6

  14. Slide 14: Concentration of Advances - Standalone

    Concentration of Advances - Standalone Airlines, 1% Trading, 4% Agribusiness, 12% Automobile & Trans. Equip., 1% Telecom, 2% Textile, 17% Cement, 2% Chemical and pharmaceuticals, 2% Contractor / Constructor, 6% Sugar, 3% Financials, 2% Food, 3% Prod. & Transmission Energy 13% Energy, Individuals, 15

  15. Slide 15: Non Markup / Return / Interest Income

    Non Markup / Return / Interest Income Non Fund Income - Rs. Mn Q1'11 Q1'10 Var % Q4'10 Var % Fee, commission and brokerage income 1,599 1,473 9% 1,627 -2% Dividend income 101 138 -26% 144 -30% Income from dealing in foreign currencies 749 361 107% 456 64% Gain on sale of securities 180 78 130% (4) 1

  16. Slide 16: Fee, Commission and Brokerage Income

    Fee, Commission and Brokerage Income Fee, Commission Income - Rs. Mn Q1'11 Q1'10 Var % Q4'10 Var % Commission on trade 406 393 3% 407 0% Commission on consumer loan 232 241 -4% 4% 267 -13% 13% Commission on remittance / uniremote 224 212 5% 186 20% Corporate finance fee / service charges 146 110 33%

  17. Slide 17: Administrative Expenses

    Administrative Expenses Administrative Expenses - Rs. Mn Q1'11 Q1'10 Var % Q4'10 Var % Personnel cost 2,084 1,952 -7% 1,859 -12% Premises cost 729 677 -8% 752 3% Outsourced service charges 362 318 -14% 418 13% including sales commission Advertisement and publicity 128 34 -282% 451 72% Communications

  18. Slide 18: E-banking Statistics

    E-banking g Statistics E-Banking Mar'11 Mar'10 % Change 2010 2009 # of ATMs 462 412 12% 436 412 # of Transactions (Mn) 4.5 4.1 9% 16.4 14.6 Average transactions per day 50k 46k 9% 45k 40k Total transaction amount (Rs Bn) 28 24 18% 101 84 Average transaction size (Rs 000) 63 6.3 58 5.8 8% 61 6.1 57 5

  19. Slide 19: Financial ratios – Consolidated – 1/3

    Financial ratios – Consolidated – 1/3 Full Year Q T D ( A n n u a liz e d ) DuPont 2008 2009 2010 Dec-10 Mar-11 Spread 1 5 1% 5.1% 5 5% 5.5% 5 5% 5.5% 5 5% 5.5% 5 5% 5.5% 2 Net Interest Margin 6.1% 6.9% 7.1% 7.2% 7.2% 3 Non Interest Yield 1.9% 2.1% 1.6% 1.8% 1.9% Operating Exp./Avg Assets 2.9% 2.8%

  20. Slide 20: Financial ratios – Consolidated – 2/3

    Financial ratios – Consolidated – 2/3 QTD Asset Quality Full Year ( A n n u a liz e d ) 2008 2009 2010 De c-10 Mar-11 G Gross NPL NPLs / G Gross L Loan 7 2% 7.2% 10 3% 10.3% 12 9% 12.9% 12 9% 12.9% 13 9% 13.9% Net NPLs / Gross Loan 2.2% 3.0% 4.0% 4.0% 4.1% Coverage Ratio 69.3% 70.9% 71.9% 71.9% 70.3

  21. Slide 21: Financial ratios – Consolidated – 3/3

    Financial ratios – Consolidated – 3/3 QTD Yearly ( A n n u a liz e d ) Other Metrics 2008 2009 2010 De c-10 Mar-11 Capital Adequacy Ratio (St) 9 9% 13.2% 9.9% 13 2% 14.5% 14 5% 14 5% 14.5% 13 8% 13.8% Tier-I CAR (St) 5.8% 9.0% 10.3% 10.3% 9.8% Loan / Deposits 80.8% 77.5% 66.3% 66.3% 69.7% Loan / Ass

  22. Slide 22: Quarterly Trend Analysis - Bank Level

    Quarterly y Trend Analysis y Bank Level 22

  23. Slide 23: Profit before Tax

    Profit before Tax 6.0 48 4.8 5.0 4.8 4.3 4.3 4.4 4.1 3.9 3.6 3.2 28 2.8 Rs Bn 2.4 1.2 0.1 - Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 23

  24. Slide 24: Profit after Tax

    Profit after Tax 4.0 3.1 3.3 28 2.8 2.8 29 2.9 3.0 2.4 2.5 2.1 1.8 2.0 Rs Bn 1.0 - -0.6 (1.0) Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 24

  25. Slide 25: Deposits

    Deposits p 580 551 552 529 524 509 500 Rs Bn 492 491 496 484 469 468 452 451 440 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 25

  26. Slide 26: Net Advances

    Net Advances 380 371 368 369 360 358 354 352 Rs Bn 347 343 335 334 334 336 331 325 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 26

  27. Slide 27: Net Interest Income

    Net Interest Income 9.5 9.1 90 9.0 9.1 9.0 8.6 85 8.5 82 8.2 8.3 82 8.2 Rs Bn 7.9 8.0 7.7 7.5 7.2 7.0 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 27

  28. Slide 28: Net Provision

    Net Provision * 6.0 47 4.7 4.4 4.8 3.6 3.0 27 2.7 Rs Bn 2.2 2.1 2.2 2.3 2.4 2.0 1.8 1.2 - Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 * Excluding other operational Write‐ Write‐offs 28

  29. Slide 29: Non Fund Income

    Non Fund Income 5.0 40 4.0 4.2 3.2 3.4 3.0 28 2.8 Rs Bn 2.6 2.4 2.4 2.6 2.2 1.6 18 1.8 2.0 1.0 D Dec-08 08 Mar M 09 Jun-09 J 09 Sep-09Dec-09 S 09D 09 Mar-10 M 10 Jun-10 J 10 Sep-10Dec-10 S 10D 10 Mar-11 M 11 29

  30. Slide 30: Gross Revenue

    Gross Revenue 13.0 12.3 12 1 12.1 11.7 11.9 12.0 11.1 11 0 11.0 10 6 10.7 10.6 Rs Bn 10.3 10.1 10.0 88 8.8 9.0 8.0 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 30

  31. Slide 31: Administrative Expenses

    Administrative Expenses p 52 5.2 4.9 4.9 4.6 4.6 4.4 Rs Bn 4.3 4.3 4.4 4.2 4.1 4.1 4.2 4.1 3.9 3.8 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 31

  32. Slide 32: Forward-looking statements notice

    Thee information o a o co contained a ed herein e e reflects e ec s ou our latest a es bus business ess sstatement a e e as aat March 31, 2011 Except the historical information contained herein, statements in this Release which contain words or phrases such as ‘will’, ‘would’, ‘indicating’ expected

  33. Slide 33: Thank You

    _ ©BL UNITED BANK oo Thank You ©BL 33

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