United Bank Limited · PSX:UBL
United Bank — FY2009 Earnings Presentation
32 slides from United Bank's earnings presentation, Mar 1, 2010
Slide 1: United Bank Limited Performance Review FY 2009
United Bank Limited Performance Review FY 2009 March 01, 2010
Slide 2: Key Highlights
Key Highlights • PAT rises 12% yoy at Rs. 9.5 B • Net Interest income up 16% – Mainly due to higher yield on earning assets (Yield 2008: 11.0%; 2009: 11.9%) – Increase in average advances by 5% – Net interest margin (NIM) up to 6.5% (2008: 6.1%) – QTD NIM up to 7.3% (Sep 09: 6.6%) • Non Interest inc
Slide 3: Key Highlights
Key Highlights • Provision charge of Rs 13.5 B, – 40% charge from corporate; 23% from consumer; 12% from commercial & 16% from international – Includes impairment loss of Rs. 1.1B • Bank expenses up by 7%; – Dom. Exp. up by 5% while average inflation at 14% yoy; Intl rupee exp.+16%; Intl dollar exp.
Slide 4: Summary
Summary Dec 2009 Dec 2008 Change Assets (PKR bn) 640 621 +3% Advances (PKR bn) 362 378 -4% Market Share-Adv- DOM 8.8% 9.2% Deposits (PKR bn) 504 492 +2% Market Share-Deposits- DOM 8.8% 9.6% Online branches 928 894 +34 ATMs 412 354 +58 ROAA 1.5% 1.4% ROAE 16% 17% Credit Rating (JCR-VIS) AA+/A-1+ AA+/
Slide 5: Share Info
Share Info Dec 2009 Dec 2008 EPS (Rs/share-annual.) 8.6 7.5 BV/share (Rs/share) 60.5 44.4 Price* - (Rs /share) 64.1 43.3 P/E 7.5x 5.8x P/BV 1.1x 1.0x # of shares 1,113M 1,113M * De c -09 P ric e dat e d Fe bruary 26, 2010 * De c -08 P ric e dat e d Marc h 04, 2009 adjust e d f or bonus share s 3/1/2
Slide 6: Income Statement (PKR bn)
Income Statement (PKR bn) QTD QTD FY FY Dec'09 Sep'09 Var % Dec-09 Dec-08 Var % Net Interest Income 9.00 8.39 +7% 33.17 28.52 +16% Non Interest Income 3.51 2.76 +27% 13.01 11.07 +18% Operating Revenue 12.50 11.15 +12% 46.18 39.59 +17% Operating Expense (4.61) (4.53) -2% (17.80) (16.68) -7% Pre-Provi
Slide 7: Balance Sheet (PKR bn)
Balance Sheet (PKR bn) % Mix- Mix- Dec'09 Dec'08 Change Dec'09 Dec'08 Cash & bank balances 75.3 64.7 +16% 12% 10% Investments 137.7 115.1 +20% 22% 19% Advances 362.1 378.3 -4% 57% 61% Fixed assets 23.7 19.9 +19% 4% 3% * * * * * * * * * * * * Total Assets 640.4 620.7 +3% 100% 100% Deposits 503.8 492.
Slide 8: Financial Ratios
Financial Ratios QTD QTD FY FY Dec'09 Sep'09 Dec'09 Dec'08 Loan/Deposits 72% 78% 72% 77% ROAE 16% 16% 16% 17% ROAA 1.6% 1.5% 1.5% 1.4% Cost/Income Ratio 54% 56% 55% 53% Gross NPLs/Gross Advances 10.3% 10.0% 10.3% 7.3% Net NPLs/Gross Advances 3.2% 3.3% 3.2% 2.6% Coverage Ratio 71% 70% 71% 68% CAR (St
Slide 9: Deposit Structure (Bank level)
Deposit Structure (Bank level) Deposit Mix (FY 2009) - Bank (Parent Company) Cost of Deposits QTD Dec'09 QTD Sep'09 Period Avg.Yield Period Avg.Yield Other Deposits – PKR 10bn end Rs B /Cost end Rs B /Cost Contribution 2% Cost 0.4% Saving deposits 178 4.9% 158 4.9% Fixed Deposits – PKR 151bn Contrib
Slide 10: Advances by Business
Advances by Business % Net Advances-Rs.B Dec'09 Dec'08 Change Mix 09 Yield 09 Yield 08 Corporate Bank 150.1 166.2 -10% 56% 14.1% 12.5% Commercial Bank 81.2 61.4 +32% 31% 16.0% 14.6% Consumer Bank 24.3 36.4 -33% 9% 17.9% 16.5% Others 10.1 10.1 -1% 4% 1.2% 9.5% Domestic 265.7 274.1 -3% 100% 14.6% 13.5
Slide 11: Consumer Advances by Product
Consumer Advances by Product 2007 2008 Dec-09 Yield Dec 09 26 22% 25% 23 21% 22 17% 18% 18% 17% 20% 17 15% 18 13 11 10% 9 6 6 5 4 4 5 4 4 3 5% 4 3 3 3 3 2 1 0 0% Drive Address Credit Card Cashline Businessline Money % Dec'09 Dec'08 Change Mix 09 Yield 09 Yield 08 Drive 11.2 17.7 -37% 46% 16.7% 13.6%
Slide 12: QTD – Net Interest Income (Bank Level)
QTD – Net Interest Income (Bank Level) Bank QTD Dec 2009 QTD Sep 2009 Avg.Yiel Avg.Yiel Rs B PE AVG IE d /Cost PE AVG IE d /Cost Interest Earning Assets Performing Advances 343 341 11.0 12.8% 341 343 10.6 12.3% Corporate 145 141 5.0 14.0% 141 141 4.7 13.2% Commercial 79 80 3.3 16.2% 78 79 3.0 15.2%
Slide 13: Spread Analysis (Bank Level)
Spread Analysis (Bank Level) Bank FY Dec 2009 FY Dec 2008 Avg.Yiel Avg.Yiel Rs B PE AVG IE d /Cost PE AVG IE d /Cost Interest Earning Assets Performing Advances 343 349 45.2 12.9% 362 332 40.0 12.1% Corporate 145 148 20.9 14.1% 162 148 18.5 12.5% Commercial 79 73 11.7 16.0% 59 52 7.7 14.6% Consumer
Slide 14: Concentration of Advances
Concentration of Advances A uto mo bile and transpo rtatio n equipment, Teleco m, 2.2% Chemical and P harmaceuticals, 1.6% 1.4% Financial, 1.4% Fertilizer , 1.5% Others, 13.6% A irline/ A viatio n, 1.5% Fo o d industries, 1.9% Co ntracto rs, 0.7% A gribusiness, 13.3% Textile, 16.1% Sugar, 1.8% Cemen
Slide 15: Non Interest Income (PKR mm)
Non Interest Income (PKR mm) QTD QTD % FY FY % Dec'09 Sep'09 Change Dec 09 Dec 08 Change Comm.on Commodity Operations 185 7 +100% 192 33 +483% Commission on consumer loan 229 287 -20% 1,070 1,691 -37% Minimum balance charges 160 130 +23% 571 561 +2% Commission on trade 383 399 -4% 1,462 1,385 +6% Co
Slide 16: Operating Expenses
Operating Expenses QTD QTD FY FY Operating Cost - Rs. M Dec'09 Sep'09 Var % Dec 09 Dec 08 Var % Personnel cost 1,862 1,818 -2% 7,463 6,754 -11% Early Retirement Scheme 76 113 +33% 275 271 -2% Outsourced cost/commission 336 328 -3% 1,325 1,652 +20% Premises cost 702 718 +2% 2,657 2,224 -19% Advertisi
Slide 17: E-Banking
E-Banking % E-Banking Dec-09 Dec-08 Dec-07 Change # of ATMs 412 354 +16% 313 # of Transactions (M) 14.6 11.7 +25% 9.5 Average transactions per day 40k 32k +25% 26k Total transaction amount (Rs B) 84 63 +32% 48 Average transaction size (Rs 000) 5.7 5.4 +5% 5.0 Average monthly trans.per ATM (Rs M) 17
Slide 18: Financial Ratios (1 of 3)
Financial Ratios (1 of 3) DuPont Full Year Q T D A n n u a liz e d 2007 2008 2009 Mar-09 Jun-09 S ep-09 Dec-09 1 Net Interest Yield 5.0% 4.9% 5.3% 5.2% 4.9% 5.3% 5.8% 2 Net Interest Margin 6.1% 5.8% 6.4% 6.4% 6.2% 6.3% 7.0% 3 Non Interest Yield 2.0% 1.9% 2.1% 1.6% 2.6% 1.7% 2.2% Operating Exp. / Ass
Slide 19: Financial Ratios (2 of 3)
Financial Ratios (2 of 3) Asset Quality Full Year Q T D ( A n n u .) 2007 2008 2009 Mar-09 Jun-09 Se p-09 De c-09 Gross NPLs / Gross Loan 6.9% 7.3% 10.3% 8.2% 8.8% 10.0% 10.3% Net NPLs / Gross Loan 1.9% 2.4% 3.0% 3.0% 2.9% 3.0% 3.0% Coverage Ratio 77.9% 66.8% 70.9% 67.0% 70.5% 69.9% 70.9% Prov. held
Slide 20: Financial Ratios (3 of 3)
Financial Ratios (3 of 3) Yearly Q T D ( A n n u .) Other Metrics 2007 2008 2009 Mar-09 Jun-09 Se p-09 De c-09 Capital Adequacy Ratio 10.2% 9.9% 13.2% 11.4% 11.8% 12.8% 13.2% Tier-I CAR 7.4% 5.8% 9.0% 7.7% 8.0% 8.8% 9.0% Loan / Deposits 74.8% 76.8% 71.9% 76.5% 72.7% 78.1% 71.9% Loan / Assets 56.4% 6
Slide 21: Quarterly Trend Analysis
Quarterly Trend Analysis Bank Level 3/1/2010 1:35:00 PM 21
Slide 22: Profit Before Tax
Profit Before Tax Profit before Tax 6.0 4.9 4.4 4.7 4.8 4.1 3.9 3.2 2.8 Rs B 3.6 1.9 2.4 Impairment loss (Rs. 1.9B) 1.2 0.1 - Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09 Sep-09 Dec-09 3/1/2010 1:35:00 PM 22
Slide 23: Profit after Tax
Profit after Tax Profit After Tax 4.0 3.2 2.9 2.7 2.8 3.0 2.5 2.1 1.8 Rs B 2.0 1.3 1.0 Impairment loss (Rs. 1.9B) - -0.6 (1.0) Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09 Sep-09 Dec-09 3/1/2010 1:35:00 PM 23
Slide 24: Deposits
Deposits 540 509 510 492 484 480 466 469 455 Rs B Shedding of expensive deposits 450 452 420 408 402 390 Dec 07 Mar 08 Jun 08 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 3/1/2010 1:35:00 PM 24
Slide 25: Net Advances
Net Advances 400 371 368 365 360 375 354 352 Rs B 350 329 320 325 299 300 275 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09 Sep-09 Dec-09 3/1/2010 1:35:00 PM 25
Slide 26: Net Interest Income
Net Interest Income 9.5 8.9 8.8 8.2 7.9 7.6 Rs B 8.0 7.5 7.2 7.3 6.8 6.2 6.5 6.0 5.8 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09 Sep-09 Dec-09 3/1/2010 1:35:00 PM 26
Slide 27: Net Provision
Net Provision * 6.0 4.4 4.2 4.8 3.2 3.0 Rs B 3.6 2.8 2.2 2.4 1.2 1.3 1.3 Impairment loss (Rs. 1.9B) 1.2 - Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09 Sep-09 Dec-09 * Excluding other operational Write- Write-offs 3/1/2010 1:35:00 PM 27
Slide 28: Non-Funded Income
Non-Funded Income 5.0 4.2 3.8 3.1 3.1 3.3 3.0 Rs B 3.4 2.6 2.3 2.3 2.6 1.8 1.6 1.0 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09 Sep-09 Dec-09 3/1/2010 1:35:00 PM 28
Slide 29: Total Revenue
Total Revenue 11.0 9.1 9.2 9.6 8.5 8.2 7.9 8.2 7.6 7.3 Rs B 6.8 5.8 5.4 4.4 4.0 Dec 07 Mar 08 Jun 08 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 * Excluding other operational Write- Write-offs 3/1/2010 1:35:00 PM 29
Slide 30: Administrative Expenses
Administrative Expenses 4.5 4.2 4.3 4.2 4.3 4.1 4.1 3.9 Rs B 4.0 3.8 3.8 3.5 3.7 3.5 3.3 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09 Sep-09 Dec-09 3/1/2010 1:35:00 PM 30
Slide 31: The information contained herein reflects our latest business statement as at December 31, 2009
The information contained herein reflects our latest business statement as at December 31, 2009 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 variations
Slide 32: Thank You
Thank You 3/1/2010 1:35:00 PM 32