United Bank Limited · PSX:UBL
United Bank — Q3 2011 Earnings Presentation
32 slides from United Bank's earnings presentation, Oct 25, 2011
Slide 1: United Bank Limited Performance Review
United Bank Limited Performance Review September 2011 October 25, 2011 Abu Dhabi 1
Slide 2: Key Highlights
Key Highlights • Standalone PAT up 36% YoY to Rs.11.0 Bn. Consolidated PAT up 34% YoY at 10.6 Bn • Net interest income up by 18% to Rs 29.6 Bn o NIM increased by 30 bps to 7.3% YoY o Increase in yield on earning assets by 70 bps YoY o Increase in cost of funds by 40 bps • Non markup income up 23% to
Slide 3: Key Highlights
Key Highlights • Provisions increased by 6% to Rs. 6.5 Bn mainly due to downgrading of previously classified accounts • Administrative expenses up by 14% YoY but flat QoQ • Continuous improvement in Cost to income ratio since Q4’ 10. Improved by 1.7% YoY to 38.3% in Sep 11 and 1.1% QoQ to 37.6% in Q
Slide 4: Income Statement (Standalone)
Income Statement (Standalone) YTD YTD Var % Q3'11 Q2'11 Var % PKR Bn Sep'11 Sep'10 Interest Earned 52.53 43.24 21% 18.47 17.35 6% Interest Expensed (22.90) (18.03) -27% (8.15) (7.19) -13% Net Interest Income 29.63 25.21 18% 10.32 10.16 2% Non Interest Income 8.94 7.29 23% 3.04 2.87 6% Total Revenue
Slide 5: Income Statement - Consolidated
Income Statement - Consolidated YTD YTD Var % Q3'11 Q2'11 Var % PKR Bn Sep'11 Sep'10 Interest Earned 53.20 43.79 21% 18.71 17.57 7% Interest Expensed (23.07) (18.15) -27% (8.22) (7.25) -13% Net Interest Income 30.12 25.64 18% 10.49 10.32 2% Non Interest Income 9.24 7.75 19% 3.19 2.70 18% Total Reven
Slide 6: Share Info
Share Info Standalone Consolidated Sep 2011 Dec 2010 Sep 2011 Dec 2010 EPS (Rs/share-annual.) 11.9 9.1 11.5 9.0 BV/share (Rs/share) 60.7 55.9 66.3 61.4 Price* - (Rs /share) 56.5 63.5 56.5 63.5 P/E 4.7x 7.0x 4.9x 7.0x P/BV 0.9x 1.1x 0.9x 1.0x # of shares 1,224M 1,224M 1,224M 1,224M * S e p-11 Pric e
Slide 7: Key Ratios - Bank
Key Ratios - Bank Balance Sheet Ratios Dec-10 Sep-11 Jun-11 Adva nces / Depos i ts 63% 63% 60% As s et Qua l i ty 13.2% 14.9% 13.9% Covera ge 72% 75% 76% YTD YTD Financial Ratios Q2 11 Q3 11 Sep'10 Sep'11 Yi el d on P. Adva nces 12.4% 13.0% 12.7% 12.9% Cos t of Depos i ts 3.9% 4.3% 4.3% 4.4% Net Int
Slide 8: Deposits Structure (Bank level)
Deposits Structure (Bank level) Cost of Deposits Deposits - Bank Cost of Deposits Dec'10 Sep'11 6.4% Bank PE - COF % PE - COF % 5.3% Rs.Bn Rs.Bn Domestic deposits 442 4.4% 442 4.8% 4.2% International deposits 108 2.4% 115 2.3% 3.1% Total Bank 551 4.0% 557 4.3% 2.0% International $ 1,263 2.4% 1,313 2
Slide 9: Net Advances
Net Advances % YTD Yield * Net Advances - Rs. Bn Dec'10 Sep'11 Change 2010 Sep'11 Corporate Bank 148.5 142.1 -4% 13.4% 14.3% Commercial ** 80.7 80.6 -0% 15.1% 16.1% Consumer 15.7 11.8 -25% 17.0% 19.4% Others 7.3 6.1 -16% 7.2% 8.1% Total Domestic 252.2 240.7 -5% 14.0% 15.0% International 81.5 85.1 +4
Slide 10: Consumer Advances by Product
Consumer Advances by Product YTD Yield* Rs. Bn Dec'10 Sep'11 Change 2010 Sep'11 Drive 6.2 4.2 -32% 15.8% 19.4% Address 2.4 1.7 -27% 19.9% 22.2% Credit Card 2.2 2.0 -8% 21.5% 22.9% Cashline 2.1 1.9 -8% 12.9% 15.8% Businessline 2.6 1.9 -28% 14.8% 16.5% CashPlus - 0.1 +100% 0.0% 22.3% Money 0.3 0.1 -75
Slide 11: International Advances
UNITED BANK oo International Advances Yemen, 10% Qatar, 11% Bahrain, 9%, : f “ UAE, 70% |_—Sharjah, 9% F Consumer, 20% Personal loan, 16% Baitna, 82%
Slide 12: Spread Analysis – Bank Level
Spread Analysis – Bank Level Bank YTD Septem ber 2011 YTD Septem ber 2010 Avg.Yield Avg.Yield Rs Bn PE AVG IE /Cost PE AVG IE /Cost Avg KIBOR - 3M 13.5% 12.4% Interest Earning Assets Performing Advances 304 303 29.4 13.0% 313 321 29.7 12.4% Corporate 125 131 14.1 14.3% 131 138 13.7 13.3% Commercial
Slide 13: Concentration of Advances - Standalone
Concentration of Advances - Standalone Trading, 4% Airlines, 2% Agribusiness, 15% Automobile & Trans. Textile, 14% Telecom, 2% Equip., 1% Cement, 1% Sugar, 3% Chemical and pharmaceuticals, 2% Contractor / Constructor, 7% Prod. & Transmission Energy, 12% Fertilizer dealers, 2% Financials, 3% Others,
Slide 14: Non Markup / Return / Interest Income
Non Markup / Return / Interest Income YTD YTD Non Fund Income - Rs. Mn Var % Q3'11 Q2'11 Var % Sep'11 Sep'10 Fee, commission and brokerage income 4,992 4,710 6% 1,712 1,681 2% Dividend income 430 447 -4% 108 221 -51% Income from dealing in foreign currencies 1,517 1,197 27% 441 326 35% Gain / (loss)
Slide 15: Fee Commission and Brokerage Income
Fee Commission and Brokerage Income YTD YTD Fee Commission Income - Rs. Mn Sep'11 Sep'10 Var % Q3'11 Q2'11 Var % Commission on trade 1,064 1,279 -17% 292 365 -20% Commission on consumer loan 695 780 -11% 242 222 9% Commission on remittance / Uniremote 622 607 2% 209 189 10% Corporate service charges
Slide 16: Administrative Expenses
Administrative Expenses YTD YTD Administrative Expenses - Rs. Mn Var % Q3'11 Q2'11 Var % Sep'11 Sep'10 Personnel Cost 6,322 5,613 -13% 2,163 2,074 -4% Premises Cost 2,368 2,158 -10% 832 807 -3% Outsourced service charges 1,179 1,075 -10% 425 392 -9% including sales commission Advertisement and publi
Slide 17: E-banking Statistics
E-banking Statistics E-Banking Sep'11 Sep'10 % Change 2010 2009 # of ATMs 472 413 14% 436 412 # of Transactions (Mn) 14.5 12.2 19% 16.4 14.6 Average transactions per day 53k 45k 18% 45k 40k Total transaction amount (Rs Bn) 92 72 27% 101 84 Average transaction size (Rs 000) 6.3 5.9 7% 6.1 5.7 Average
Slide 18: 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 S ep'11 Dec-10 Mar-11 Jun-11 S ep-11 Spread (st.) 1 5.1% 5.5% 5.5% 5.7% 5.5% 5.5% 5.9% 5.7% 2 Net Interest Margin (st.) 6.1% 6.9% 7.1% 7.3% 7.2% 7.2% 7.4% 7.3% Non Interest Yield 3 1.9% 2.1% 1.6% 1.7% 1
Slide 19: Financial ratios – Consolidated (2/3)
Financial ratios – Consolidated (2/3) Asset Quality Full Year Q T D ( A n n u a liz e d ) 2008 2009 2010 Sep'11 Dec-10 Mar-11 Jun-11 Sep-11 Gross NPLs / Gross Loan 7.2% 10.3% 12.9% 14.4% 12.9% 13.9% 13.4% 14.4% Net NPLs / Gross Loan 2.2% 3.0% 3.6% 3.7% 3.6% 4.1% 3.5% 3.7% Coverage Ratio 69.3% 70.9%
Slide 20: Financial ratios – Consolidated (3/3)
Financial ratios – Consolidated (3/3) Yearly Other Metrics Q T D ( A n n u a liz e d ) 2008 2009 2010 Sep'11 Dec-10 Mar-11 Jun-11 Sep-11 Capital Adequacy Ratio 10.4% 14.0% 15.0% 15.9% 15.0% 14.7% 15.5% 15.9% Tier-I CAR 6.1% 9.5% 10.4% 11.2% 10.4% 10.2% 10.8% 11.2% Loan / Deposits 77.3% 73.7% 62.8% 6
Slide 21: Quarterly Trend Analysis
Quarterly Trend Analysis Bank Level 21
Slide 22: Profit before Tax
Profit before Tax 7.0 6.5 6.1 5.2 5.0 5.2 4.8 4.4 Rs Bn 4.3 4.3 3.9 4.1 4.3 3.2 3.4 2.8 2.5 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 22
Slide 23: Profit after Tax
Profit after Tax 5.0 4.2 4.3 3.4 3.6 3.3 3.1 Rs Bn 2.8 2.8 2.9 2.9 2.5 2.4 2.1 2.2 1.8 1.5 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 23
Slide 24: Deposits
Deposits 650 594 600 551 557 550 529 509 Rs Bn 492 500 491 500 469 452 451 450 400 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 24
Slide 25: Net Advances
Net Advances 380 368 368 360 356 352 354 Rs Bn 343 344 335 334 334 334 331 332 326 320 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 25
Slide 26: Net Interest Income
Net Interest Income 11.0 10.3 10.2 10.2 9.2 9.4 8.9 8.9 Rs Bn 8.6 8.2 8.2 8.4 8.6 7.9 7.6 7.8 7.0 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 26
Slide 27: Net Provision
Net Provision * 6.0 4.7 4.8 3.6 3.0 2.7 2.6 Rs Bn 2.2 2.1 2.2 2.3 2.4 2.0 1.8 1.6 1.2 - Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 * Excluding other operational Write-offs 27
Slide 28: Non Fund Income
Non Fund Income 5.0 4.2 3.8 3.4 3.0 3.0 2.8 2.9 Rs Bn 3.3 2.4 2.6 2.3 2.3 2.4 2.6 1.8 1.0 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 28
Slide 29: Gross Revenue
Gross Revenue 14.0 13.4 13.0 13.1 12.2 12.2 12.2 11.7 Rs Bn 11.4 11.2 11.3 10.7 10.2 10.4 10.5 10.6 9.5 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 29
Slide 30: Administrative Expenses
Administrative Expenses 5.0 5.0 5.1 4.8 4.7 4.8 Rs Bn 4.4 4.5 4.3 4.4 4.2 4.2 4.1 4.1 3.9 3.8 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 30
Slide 31: Forward-looking statements
The information contained herein reflects our latest business statement as at September 30, 2011 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 expressions or variation
Slide 32: Thank You
_@GBL UNITED BANK uc. Thank You Gst 32