United Bank Limited · PSX:UBL
United Bank — FY2022 Earnings Presentation
14 slides from United Bank's earnings presentation, December 2022
Slide 1: United Bank Limited Investor Presentation FY'2022
United Bank Limited Investor Presentation FY’2022 Performance Highlights and Business Outlook Speakers: Mr. Shazad G. Dada - President & CEO Mr. Arif Saifie, CFA - Chief Financial Officer Ms. Saira Shah - Financial Controller & Head of Investor Relations
Slide 2: Overview of the UBL Group
Overview of the UBL Group | We are one of the largest and most profitable banks in Pakistan Over 60 years of successful Highly experienced senior operational history management team with diversified Market leading positions in core experience of large local and global segments banking institutions D
Slide 3: Overview of operating environment this year
Overview of operating environment this year… banking sector remains resilient despite challenges Risks and opportunities surrounding core segments…we remain focused on our core markets 1 Rate Regime Strongest Credit Rating Interest Rate remained high throughout the year in line with global trends En
Slide 4: UBL announces historic results in 2022
The Big Picture on Macros – UBL delivers strong results with improving EPS Economy impacted by rising inflation, power tariff hikes and pressure on currency ▪ Avg Market deposits for YTD Dec’22 at Rs. 21.0 tln, up 15% YoY ▪ Currency in Circulation remains high at Rs. 7.7 tln up 10% over Dec’21 (Dec’
Slide 5: 2022 Results – Solid growth supported by strong NFI with cost control
2022 Results – Solid growth supported by strong NFI with cost control Rs in bln Rs in bln Margin expansion grows earnings with aggressive fee buildup Income Statement Var % Var % ▪ Bank NIMs at 4.9% in FY’22 (FY’21: 3.8%), with higher asset yields FY'22 FY'21 Q4'22 Q3'22 ▪ Branch banking fees up 33%
Slide 6: Balance Sheet Review – Building efficiencies in deposit base
Balance Sheet Review – Building efficiencies in deposit base with well diversified investment book Rs in bln Balance Sheet Domestic Deposits Performance - Led by Branch Banking Group Var % Dec'22 Dec'21 ▪ Average deposits at Rs 1.6 tln, up 9% YoY Advances 922 646 43% Investments 1,415 1,497 -5% ▪ Av
Slide 7: Strong Dividend Payouts maintained while UBL repositions
Strong Dividend Payouts maintained while UBL repositions to achieve larger aspirations Trends - KSE 100 Index and UBL’s share price Equity and Book Values Max price in 2022: Rs. 149.81 Rs in bln Cons. Equity Dec’22 - Rs. 231 bln 240 Price at 27-Feb-2023: Rs. 113.10 50 Cons. Book value Dec’22 - Rs. 1
Slide 8: Our priorities are clear…To be the Best Service Bank
Our priorities are clear…To be the “Best Service Bank” for our customers Deposit Mobilization & People & Network Expansion Transformation Islamic Banking ▪ Raising service standards ▪ Capacity building, upskilling ▪ Building on our Islamic across all channels – making managers and leaders propositio
Slide 9: Key Ratios for the quarter
Key Ratios for the quarter – Higher ROE in Q4’22 increasing overall levels with steady buildup in revenue Gross Revenues Cost to Income Ratio Net Interest Margins Rs in bln 42.8 47.8% Policy Rate 35.1 Rs in bln +625 bps 12.3 45.0% 31.6 43.5% 43.3% 28.3 7.4 41.5% 4.9% 5.5% 4.3% 4.6% 23.9 24.5 24.2 7.
Slide 10: UBL poised for growth - Capital Base strengthens
UBL poised for growth - Capital Base strengthens with more efficient allocation Capital Adequacy Ratio Risk Weighted Assets 167 201 232 bps Dec'21: Dec'22: 21.5% 76 81 19.2% Rs 865 622 Rs 1,001 719 5.3% bln bln 4.8% 1.1% 1.0% Credit Market Operational Credit Market Operational 15.1% 13.5% ▪ UBL seek
Slide 11: Digital Banking Group – Focus on growing digital payment services
Digital Banking Group – Focus on growing digital payment services across wider target market Digital App Registrations for the year 2022 Digital Payments over Rs 2.6 tln in 2022, up 53% YoY # in 000 80 of transactions in Millions No. 2.6 2.7 2,713 Amount 70 Rs. in Trillions 2,531 2.2 60 1.7 56 2,035
Slide 12: UBL Remains in the Forefront with Market Recognition
UBL Remains in the Forefront with Market Recognition UBL “Firsts” – Initiatives to stay ahead of the market Market recognition and awards ◼ Award of excellence in ‘Market Leader of Digital Banking’ by Euromoney in 2022 ◼ Awarded ‘Best Bank for Digital Solutions’ in 2022 by Asiamoney ◼ First Commerci
Slide 13: We are embedding ESG into UBL's Strategy
We are embedding ESG into UBL’s Strategy…. Some key themes Environmental Social Governance The Social aspect We keep interests of our stakeholders at includes and goes beyond our CSR activities to Our ESG agenda guides us in making include development of people-centric conscientious investment and p
Slide 14: Important Information
Important Information The information contained herein reflects our latest business statement as at December 31, 2022. Except the historical information contained herein, statements in this Release which contain words or phrases such as ‘will’, ‘would’, ‘indicating’ expected to’ etc., and similar ex