Union Bank Of Colombo Plc · CSELK:UBC.N0000
Union Bank Of Colombo — H1 2023 Earnings Presentation
17 slides from Union Bank Of Colombo's earnings presentation, August 2023
Slide 1: Investor Presentation 1H 2023
Investor Presentation 1H 2023 1 Classification: Internal
Slide 2: Vision and Mission
Vision 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 fi
Slide 3: Union Bank posts strong performance in 1H 2023
Union Bank posts strong performance in 1H 2023 Inc/Dec Income Statement (Rs.Mn) 1H 2023 1H 2022 (%) Gross Income 11,729 7,426 57.9% Net Interest Income 3,118 2,509 24.2% Net Fee & Commission Income 595 504 18.1% Net Trading & Other Operating Income 317 561 -43.6% Total Operating Income 4,030 3,575 1
Slide 4: Net Interest Income increased by 24% YoY
Net Interest Income increased by 24% YoY Net Interest Income (Rs.Mn) Net Fees & Commission (Rs.Mn) 3,118 595 2,509 504 2,131 2,022 2,103 385 412 407 1,785 1,561 319 287 1,039 978 729 121 58 55 1H 14 1H 15 1H 16 1H 17 1H 18 1H 19 1H 20 1H 21 1H 22 1H 23 1H 14 1H 15 1H 16 1H 17 1H 18 1H 19 1H 20 1H 21
Slide 5: Operating Expenses Increased by 21% YoY
Operating Expenses Increased by 21% YoY Net Trading & Other (Rs.Mn) Operating Expenses (Rs.Mn) 642 556 561 2,496 527 2,059 1,899 1,974 1,914 405 1,809 357 1,619 317 1,433 256 1,109 235 198 765 1H 14 1H 15 1H 16 1H 17 1H 18 1H 19 1H 20 1H 21 1H 22 1H 23 1H 14 1H 15 1H 16 1H 17 1H 18 1H 19 1H 20 1H 21
Slide 6: Operating Margin increased by 24% YoY
Operating Margin increased by 24% YoY Operating Margin (Rs.Mn) Operating Income 1,800 (Rs.Mn) 4,030 1,600 1,400 CAGR 1,200 17% 1,000 800 986 600 400 200 1H 14 1H 23 - 1H 14 1H 15 1H 16 1H 17 1H 18 1H 19 1H 20 1H 21 1H 22 1H 23 Operating Expenses (Rs.Mn) 2,496 • Total operating income before impairme
Slide 7: Reduced Impairment Provisions
Reduced Impairment Provisions Impairment Charge (Rs.Mn) 961 726 436 281 186 158 132 139 107 18 1H 14 1H 15 1H 16 1H 17 1H 18 1H 19 1H 20 1H 21 1H 22 1H 23 Impairment Charge decreased by 24% YoY The reduction is as a result of stringent recovery measures. 7 Classification: Internal
Slide 8: Improved results from operating activities
Improved results from operating activities Results from Operating Activities PBT (before Tax expense) (Rs.Mn) (Rs.Mn) 568 791 807 533 787 517 755 506 555 518 354 304 364 248 204 104 135 80 34 14 1H 14 1H 15 1H 16 1H 17 1H 18 1H 19 1H 20 1H 21 1H 22 1H 23 1H 14 1H 15 1H 16 1H 17 1H 18 1H 19 1H 20 1H
Slide 9: Balance Sheet - Bank
Balance Sheet - Bank Growth Balance Sheet (Rs.Mn) June 2023 Dec 2022 (%) Net Loans (Rs.Mn) Treasury Assets 51,116 44,875 13.9% 62,446 Loans & Advances 62,446 67,727 -7.8% Cash & Balances with CB 6,322 8,002 -21.0% CAGR Other Assets 9,020 8,880 1.6% 11% Total Assets 128,904 129,483 -0.4% 23,922 Borro
Slide 10: Loan Portfolio
Loan Portfolio Loan Product Mix Net Loans (Rs.Mn) 4% 5% 77,358 73,749 70,578 67,518 67,835 67,727 13% 17% 62,446 55,438 17% 40,095 17% 25,944 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H 23 62% 59% Loan Currency Mix 19% 15% Dec'22 Mar'23 81% 85% Term loans Overdrafts Trade finance Lease and hire
Slide 11: Strong CASA and Deposit Bases
Strong CASA and Deposit Bases Deposits (Rs.Mn) CASA (Rs.Mn) 92,592 88,907 79,251 82,384 83,416 24,510 25,146 76,532 70,326 21,723 22,395 18,719 19,332 51,841 16,310 12,358 37,653 27,809 9,039 6,914 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H 23 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H 23
Slide 12: Strong Total Capital Adequacy Ratio of 19.01%
Strong Total Capital Adequacy Ratio of 19.01% • Capital Adequacy Ratio - The Bank continued to maintain high capital adequacy ratios. - The Tier I Capital Adequacy Ratio as of 30th June 2023 was 17.92%, well above the minimum statutory requirement of 8.5%. - The Total Capital Ratio as at end 30th Ju
Slide 13: Investor Ratios
Investor Ratios Market Value ROA, ROE 12 3.11% 10 8 1.71% 6 0.83% 4 0.46% 0.29% 0.25% 2 0 Dec'22 June'23 June'22 June'23 Return on Assets (Before Tax), % Last traded price Highest price for the quarter Return on Assets (After Tax), % Lowest price for the quarter Return on Equity (After Tax), % 13 Cl
Slide 14: Income Statement - Group
Income Statement - Group Inc/Dec Income Statement (Rs.Mn) 1H 2023 1H 2022 (%) Net Interest Income 3,599 3,056 17.8% Net Fee & Commission Income 641 535 19.9% Net Trading & Other Operating Income 371 610 -39.2% Total Operating Income 4,612 4,202 9.8% Impairment Charge 780 1,203 -35.2% Total Operating
Slide 15: Balance Sheet - Group
Balance Sheet - Group Growth Balance Sheet (Rs.Mn) June 2023 Dec 2022 (%) Net Loans (Rs.Mn) Treasury Assets 52,978 45,371 16.8% 70,214 Loans & Advances 70,214 76,103 -7.7% Cash & Balances with CB 6,583 8,187 -19.6% CAGR Other Assets 7,216 7,018 2.8% 12% Total Assets 136,990 136,679 0.2% 26,256 Borro
Slide 16: Key Performance Indicators
Key Performance Indicators BANK GROUP Item 30 Jun 2023 31 Dec 2022 30 Jun 2023 31 Dec 2022 Regulatory Capital - Rs '000 Common Equity Tier 1 (Basel III) 14,302,095 14,270,811 16,414,892 16,310,515 Tier 1 Capital / Core Capital (Basel III) 14,302,095 14,270,811 16,414,892 16,310,515 Total Capital / T
Slide 17: Corporate Information
Corporate Information Board of Directors Legal Form Name Title A Public Limited Liability Company incorporated in Atul Malik Chairman/Non-Independent, Non-Executive Director Sri Lanka under the Companies Act No. 17 of 1982. Trevine Fernandopulle Deputy Chairman/Senior Independent Director Re-registe
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