United Bank For Africa Plc · NSENG:UBA
United Bank For Africa — Q1 2012 Earnings Presentation
30 slides from United Bank For Africa's earnings presentation, Apr 24, 2012
Slide 1: FY 2011 & Q1 2012 Results Investors/Analysts Presentation
United Bank for Africa Plc FY 2011 & Q1 2012 Results Investors/Analysts Presentation April 24 24, 2012
Slide 2: Caution Regarding Forward Looking Statements
Caution Regarding 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
Slide 3: Important Disclosures
Important Disclosures This Q1 2012 and FY 2011 Earnings Release should be read in conjunction with our unaudited Q1 2012 consolidated financial results and our audited FY 2011 Consolidated Financial Statements both on our website at http://www.ubagroup.com/ir/. This presentation is dated April 24, 2
Slide 4: Outline
Outline Section 1 Review of FY2011 Results Section 2 Review of Q1 2012 Results Section 3 Holdco Compliance Plan Section 4 Strategy Section 5 Appendix 4
Slide 5: 1. Review of FY 2011 Results
UBA \j United Bank for Aftica Phe 1. Review of FY 2011 Results
Slide 6: Highlights – FY 2011
Highlights – FY 2011 Gross earnings of Net Interest Income Operating income of Provisions & N185bn: up 4.1% of N75.3bn: up 6.4% N139bn: up 6.2% exceptional items of N59.5bn: up 156% (2010: N177bn) (2010: N70.8bn) (2010: N131bn) (2010: N23.2bn) Total Assets of Gross loans of Total deposits of Total e
Slide 7: Revenue Analysis
Revenue Analysis Revenue split by nature (N’bn) Revenue by business segments Fee Based Income Fund Based Income 2% 1% 1% 195.3 -9.1% 177.6 +4.1% 184.8 Comm Banking 53.0 63.4 59.8 Asset Mgt Inv. Banking 96% 142.3 117.7 121.4 Pensions Custody FY09 FY10 FY11 Revenue split by geography Africa excl. Nige
Slide 8: Balance Sheet Analysis
Balance Sheet Analysis Growing total assets & contingents (N’tr) Gross loans portfolio improves YoY (N’bn) 715 Contingents Total Assets 680 676 0.95 0.69 0.65 1.94 1.55 1.62 FY09 FY1O FY11 FY09 FY1O FY11 Loan book, well diversified across key sectors Sustained deposit growth (N’tr) Power Transportat
Slide 9: Key Ratios
Key Ratios Yields, costs and NIMs Improving risk ratios 60.0% 51.6% 49.6% 47.7% 39.0% 39.0% 21.7% 18.0% 18.0% FY09 FY10 FY11 Capital adequacy Liquidity Ratio Loan/deposit Cost to income ratio Suspended interest incomes arising from AMCON 79.7% 77.7% sales leads to a decline in NIMs to 4.8% 75.2% Cos
Slide 10: 2. Review of Q1 2012 Results
2. Review of Q1 2012 Results 10
Slide 11: Highlights – Q1 2012
Highlights – Q1 2012 Gross earnings of Net Interest Income Operating income of Impairment gain of N54bn: up 32.9% of N36.8bn: up 37.3% N39.2bn: up 34.2% N2.2bn (1Q11: (N389mn) (1Q11: N40.5bn) (1Q11: N26.8bn) (1Q11: N29.2bn) Total Assets of N2.1tr: Gross loans of Total deposits of Total equity of up
Slide 12: Revenue Analysis
Revenue Analysis Revenue base (N’bn) Revenue split by nature (N’bn) 53.9 Non-interest income Interest income 48.2 40.5 16.9 11.2 13.7 37.0 37.0 26.8 1Q10 1Q11 1Q12 1Q10 1Q11 1Q12 Revenue split by geography Impressive run on revenue in first quarter. Driven largely by 38% YoY growth in interest Afric
Slide 13: Profit Drivers
Profit Drivers Operating income (N’bn) Net Interest margins 39.2 5.9% 5.2% 29.8 29.2 4.3% 1Q10 1Q11 1Q12 1Q10 1Q11 1Q12 Cost to income ratio Profits before tax (N’bn) 16.0 88.7% 82.6% 65.3% 4.8 3.5 1Q10 1Q11 1Q12 1Q10 1Q11 1Q12 13
Slide 14: Assets
Assets Total assets Return on assets 2.12 1.94 2.4% 1.62 0.0% -0.5% FY10 FY11 1Q12 FY1O FY11 1Q12 Total asset split by geography Total assets now well-seated above N2tr Africa excl. Nigeria Nigeria & RoW – CAGR of 14.4% achieved since 2010 13% African operations (excl-Nigeria) continue to 18% 19% in
Slide 15: Loans
Loans Gross loans portfolio Loan split by industry Resl Est & Power Serices education 701.2 Food & Constr. 1% 1% 1% 676 691 2% beverages 3% Hospitality 1% Transportation 6% Oil & Gas Agriculture 20% 7% Government 7% Consumer Manufacturing 15% 8% FY1O FY11 1Q12 General Fin, Institutions Commerce 9% T
Slide 16: Deposits
Deposits Strong deposit growth 1.53 1.44 1.27 Deposit base continues to improve – CAGR f 9.8% achieved since 2010 Low cost deposits still dominate our deposit book – 78% ‘CASA’ Our loan to deposit ratio remain below 50% due to: – Cautious lending strategy and pursuance of cheap FY1O FY11 1Q12 deposi
Slide 17: Funding
Funding Funding mix of assets Robust liquidity & capital adequacy Borrowings Other liabilities Equity Deposits 60.0% 5% 10% 8% 5% 11% 7% 11% 9% 9% 39.0% 39.0% Capital adequacy 21.7% Liquidity Ratio 78% 74% 18.0% 18.0% 72% FY09 FY10 FY11 FY1O FY11 1Q12 Cost of funds Strong ROE recovery 3.5% 3.2% 28.5
Slide 18: West African Economic & Monetary Union Region
West African Economic & Monetary Union Region Benin Cote D'Ivoire B/Faso Senegal Totals Key P & L Line (N’ million) Interest income 500 130 969 473 2,073 Interest expense -178 -58 -294 -94 -624 Net interest income 322 72 675 380 1,449 Non interest income 288 346 3,555 195 4,384 Operating income 610
Slide 19: West African Monetary Zone Region
West African Monetary Zone Region Liberia Ghana S/Leone Guinea Totals Key P & L Line (N’ million) Interest income 101 1,303 76 259 1,739 Interest expense -6 -423 -21 -29 -480 Net interest income 95 880 55 230 1,259 Non interest income 88 1,243 42 162 1,535 Operating income 183 2,123 97 392 2,794 Ope
Slide 20: East & Central African Region
East & Central African Region Zambia Tanzania Kenya Mozambique Uganda Totals Key P & L Line (N’ million) Interest income 68 101 170 60 198 596 Interest expense -41 -56 -73 -23 -92 -284 Net interest income 27 45 97 37 105 312 Non interest income 75 36 70 373 123 678 Operating income 102 81 167 411 22
Slide 21: Economic & Monetary Community of Central African Region
Economic & Monetary Community of Central African Region Cameroon Chad Gabon Congo Congo Totals Brazz. DRC Key P & L Line (N’ million) Interest income 252 148 103 23 35 560 Interest expense -88 -25 -34 -1 -1 -150 Net interest income 163 122 69 21 34 410 Non interest income 531 186 182 151 80 1,130 Op
Slide 22: Non-Bank Subsidiaries
Non-Bank Subsidiaries Insurance FX Mart Asset Mgt Pensions Investment Brokerage Custody Banking Key P & L Line (N' million) Interest income 25.4 19.2 278.4 191.5 254.7 Interest expense 0.0 0.0 -544.6 0.0 -14.2 Net interest income 25.4 19.2 -266.1 191.5 240.5 Non interest income 103.4 13.4 358.3 419.
Slide 23: 3. Holdco Compliance Plan
UBAN United Bank for Aftica Phe 3. Holdco Compliance Plan 23
Slide 24: 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 25: 4. Strategy
UBAN United Bank for Aftica Phe 4. Strategy 25
Slide 26: Our Strategic Intent
Our Strategic Intent Since our business combination with Standard Trust Bank in 2005, we set out to achieve a three-pronged strategy as shown below: PHASE 3 PHASE 2 …. Establish our presence in key global financial centres PHASE 1 …… Be a leading bank in Africa… ……Be a dominant and clear leader in N
Slide 27: 5. Appendix
UBAN United Bank for Aftica Phe 5. Appendix 27
Slide 28: Key Transactions in 2011
Key Transactions in 2011 Appointed as Trustees to the N3.14 trillion state-owned AMCON fund Appointed as Joint Issuing House and Underwriter to the issuance of state government bonds: – Ekiti State – N25 billion – Edo State – N25 billion, of which N5 billion was part-financed – Delta State – N50 bil
Slide 29: Awards Received -2011
Awards Received -2011 Best Agric financing bank – by the CBN Best Project Finance deal of the year – by Euromoney Africa Refinancing deal of the year – by Euromoney Bank of the Year 2011 – by The Banker/Financial Times 29
Slide 30: Thank you
30 Thank you UBA \j United Bank for Aftica Phe
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