United Bank For Africa Plc · NSENG:UBA
United Bank For Africa — FY2022 Earnings Presentation
33 slides from United Bank For Africa's earnings presentation, April 2023
Slide 1: United Bank for Africa (UBA) Plc FY 2022 Investor Conference Call Presentation
United Bank for Africa (UBA) Plc FY 2022 Investor Conference Call Presentation April 2023 0
Slide 2: Disclaimer
Disclaimer • IMPORTANT: From time to time, the Bank makes written and/or oral forward-looking statements. These are included in this presentation and in other communications. In addition, representatives of the Bank may make forward looking statements orally to analysts, investors, the media and oth
Slide 3: Outline
Outline About UBA 01 Operating Environment 02 Sustainability & Governance 03 Financial Performance 04 Payment Business 05 Outlook/Guidance 06 Appendices 07
Slide 4: About UBA
UBAN United Bank for Africa About UBA
Slide 5: The Evolution of UBA
The Evolution of UBA Pre-Merger Post-Merger Acquired majority interest in two banks based in Burkina Faso and Benin Successfully raised ₦22bn Successfully debt capital redeemed $500 Successfully divested million Eurobond Commenced operations British & French its non-bank Named “African issued in 201
Slide 6: Promoting Financial Services across African Continent
Promoting Financial Services across African Continent Vision Mission To be the undisputed leading and dominant financial services To be a role model for African businesses by creating superior institution in Africa. value for all stakeholders, abiding by the utmost professional and ethical standards
Slide 7: International Presence beyond Africa (Our unique spread)
International Presence beyond Africa (Our unique spread) USA UK France UAE (New York) (London) (Paris) (Dubai) • Facilitating payments by leveraging on our • UBA UK is a direct conduit for the • Raise the profile of our pan African bank • UBA is the first Pan African bank to open unique position as
Slide 8: Footprints
Footprints 20,000+ 303,703 2,676 ATMs Staff* PoS 20 African Countries + UK (London) USA (New York) France (Paris) 1,000+ UAE (Dubai) 30 million + 15.6 Customers Business Offices** million Cards
Slide 9: Financial Highlights
Financial Highlights Funding, Liquidity & Capital ▪ Strong, stable low-cost funding mix of 83% ▪ Relatively low cost of funds at 2.1% Net Loans ▪ Headroom for lower CoF, on aggressive retail Assets ▪ penetration Liquid balance sheet to fund emerging ₦10.9trn ₦3.4trn opportunities [USD7.5bn] ▪ Strong
Slide 10: UBA Plc Credit Ratings by recognized Rating Agencies
UBA Plc Credit Ratings by recognized Rating Agencies National National National National • Short-term: A1+(NG) • Short-term: ngA-3 • Short-term: Aa- • Short-term: F1+(nga) • Long-term: AA+(NG) • Long-term: ngBBB- • Long-term: A+(nga) International International International • Long-term: B • Short –
Slide 11: Governance & Sustainability
Governance & Sustainability
Slide 12: Our ESG Approach and Impact towards Sustainability
Our ESG Approach and Impact towards Sustainability APPROACH IMPACT • The Board of Directors has the ultimate responsibilities for our ESG practices, the Metrics 2022 2021 oversight functions is delegated to the Board Audit & Governance committee. Number of SMES 22,000 5,000 Governance • The Executiv
Slide 13: UBA Foundation – Touching lives
UBA Foundation – Touching lives Through UBA Foundation, we gave out a total of N1.34 billion as donations and charitable contributions during the year 2022, as a part of our commitment to the development of host communities, the environment and broader economies within which we operate.. Education E
Slide 14: Financial Performance
UBAN United Bank for Africa Financial Performance
Slide 15: Financial Highlights
Financial Highlights In millions of Nigerian Naira FY’2022 FY’2021 % Change Gross Earnings 853,173 660,219 29.2 • Remarkable gross earnings, driven by double digit growth in both interest and non interest Net Interest Income 379,488 316,711 19.8 income Operating Income 593,233 444,922 33.3 Operating
Slide 16: Solid Revenue Profile
Solid Revenue Profile Gross Earnings (₦'bn) Net Interest Income (₦'bn) PBT (₦'bn) PAT (₦'bn) 853 201 379 170 153 660 119 317 2022 2021 2022 2021 2022 2021 Earnings Contribution (%) Components of Interest Income • Non-interest income contribution continues at growth trajectory as we deepen and 35% Ca
Slide 17: Sustained growth in fee and transactional income
Sustained growth in fee and transactional income Major non-interest income lines Trend (₦’bn) Fees & Commission Income (₦'bn) Credit-related fees and commissions Account maintenance fee Electronic banking income Trade transactions income Foreign exchange trading income 211 78.9 159 64.6 39.9 37.5 27
Slide 18: Key indices trending in the right direction
Key indices trending in the right direction PBT (₦'bn) PAT (₦'bn) Net Interest Margin Cost of Funds 210 2.21% 170 5.61% 153 119 5.57% 2.09% 2022 2021 2022 2021 2022 2021 Return on Average Equity Return on Average Assets • 31% growth in PBT, buoyed by strong double digit growth in operating income. 1
Slide 19: Robust balance sheet
Robust balance sheet Total Assets (₦'trn) Customers Deposits (₦'trn) Net Customer Loans (₦'trn) 10.9 3.1 7.8 8.5 6.4 2.7 2022 2021 2022 2021 2022 2021 • The Group maintains a well-diversified Asset Mix (%) Funding Mix (%) balance sheet, with over 50% of the assets 6% 23% 8% in liquid and low-moderat
Slide 20: Resilient and diversified loan portfolio & moderating NPL ratio
Resilient and diversified loan portfolio & moderating NPL ratio Loan Book Distribution by Sector NPL Distribution By Sector Power and OthersConstruction and Energy 3% Real Estate Finance and General Commerce Governments 31% 4% 4% Insurance 3% Manufacturing 2% 14% Oil and Gas 15% Oil and Gas 16% Gene
Slide 21: Our business across Africa (ex-Nigeria) remains a strong growth pole
Our business across Africa (ex- Nigeria) remains a strong growth pole. Rev: N327.1bn (18.7%) 2022 GDP Our business in other African countries (ex- Profit: N92.6bn (46.1%) Population Growth 2023F Nigeria) continues to expand, with strong Countries (Mn) GDP ($'Bn) rate (%) Growth rate contribution to
Slide 22: Payment Business
UBAN United Bank for Africa Payment Business
Slide 23: Key Payment Channels and Digital Product Offerings
Key Payment Channels and Digital Product Offerings With UBA Leo (chat banking bot) You can now Send UBA Cards (Debit, Credit Money, Buy Airtime, Check The UBA Digital Experience on UBA Internet Banking is an UBA Mobile App provides and Prepaid) can be used to Account Balance, Pay Bills Mobile and We
Slide 24: Key Payment Channels and Digital Product Offerings (cont’d)
Key Payment Channels and Digital Product Offerings (cont’d) UBA Cardless Withdrawal Services The Cardless Withdrawal Service UBA API Banking Services The UBA Contactless Payment enables customers to carry out With this service, we have been able Allows merchants and customers to transactions on ATMs
Slide 25: Digital channels performance
Digital channels performance Chat Banking Mobile Banking Online Banking USSD Banking Cards POS YOY % YOY % YOY % YOY % YOY % YOY % Subscription (‘M) 3.7 +35% 5.6 +51% 5.0 +43% 7.9 +23% 16.19 +28% 299.6** +151% Count (‘M) FY 22 12.2 +36% 414.8 +251% 13.5 +75% 556 +35% 751 +20% 232 +20% Value (N’B) 10
Slide 26: Youthful and high long-term value customer base
Youthful and high long-term value customer base Customer demography (millions) 20.3 10.3 2.9 0-30 31-60 >60 Age Band of Customers in Years UBA Payment Business – Strategic Pole for Growth Digital Banking Income (N’B) • Over 30 million customers across geographies, contributing to the 78.9 growth in
Slide 27: Outlook/Guidance
Outlook/Guidance 26
Slide 28: FY2023 Guidance
FY2023 Guidance FY2022 FY2022 FY2023 Guidance Achieved Guidance Deposit Growth 22.9% ~15% ~17.5% Loan Growth ~10% 21.4% ~12.5% Cost of Risk 0.6% ~1% ~1% Non-Performing Loan Ratio ~4% 3.1% ~4% Return on Average Equity 19.7% ~18% ~20% Return on Average Assets ~1.8% 1.76% ~2% Capital Adequacy Ratio 28.
Slide 29: Appendices
UBAN United Bank for Africa Appendices
Slide 30: Summary Financials..1/3
Summary Financials..1/3 United Bank for Africa Plc Consolidated and Separate Statements of Comprehensive Income for the year ended 31 December 2022 In millions of Nigerian Naira Group Bank 2022 2021 2022 2021 Interest income 557,152 474,262 344,490 288,564 Interest income on amortised cost and FVOCI
Slide 31: Summary Financials..2/3
Summary Financials..2/3 United Bank for Africa Plc Consolidated and Separate Statements of Financial Position As at 31 December 2022 Group Bank 31 Dec. 22 31 Dec. 21 31 Dec. 22 31 Dec. 21 In m illions of Nigerian Naira ASSETS Cash and bank balances 2,553,629 1,818,784 2,154,971 1,446,906 Financial a
Slide 32: Summary Financials..3/3
Summary Financials..3/3 LIABILITIES Deposits from banks 1,170,238 654,211 863,795 483,110 Deposits from customers 7,824,892 6,369,189 5,046,514 4,004,306 Derivative liabilities 79 98 79 98 Other liabilities 383,283 216,209 326,690 127,338 Current income tax payable 20,281 21,415 8,327 2,751 Borrowin
Slide 33: Thank you
Thank you Africa’s Global Bank 32
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