United Bank Limited · PSX:UBL
United Bank — FY2014 Earnings Presentation
32 slides from United Bank's earnings presentation, December 2014
Slide 1: United Bank Limited Performance Review December 2014
United Bank Limited Performance Review December 2014 1
Slide 2: Key Highlights (1 of 3)
Key Highlights – (1 of 3) Standalone PAT up 18% YoY to Rs. 21.9Bn, Consolidated PAT up 22% YoY to Rs. 24.0Bn Net Interest income has increased by 19% to reach Rs. 44.9Bn ■ Margins expand by 34bps to 5.7%, supported by yield enhancement from PIBs ■ Expansion in corporate loan book by 14%, yields main
Slide 3: Key Highlights (2 of 3)
Key Highlights - (2 of 3) Provisions are down by 20% YoY to Rs. 1.16Bn in 2014 ■ Strong Recoveries within domestic and international ■ FSV benefit prudently reduced from Rs. 1.4Bn in Dec’13 to Rs. 0.9Bn as at Dec’14 ■ Asset quality at 11.2% in Dec‘14 improving from 12.1% as at Dec’13 ■ Coverage slig
Slide 4: Key Highlights (3 of 3)
Key Highlights - (3 of 3) Retail Bank building deposit base ahead of market ■ 13% growth in the total domestic deposits ahead of market growth of 11% in 2014 ■ Current Accounts remains core focus for retail distribution – with 19% average growth ■ Cost of domestic deposits at 4.4% in 2014, increase
Slide 5: Income Statement - Standalone
Income Statement - Standalone YTD YTD PKR Bn Var % Q4'14 Q3'14 Var % Dec'14 Dec'13 Interest Earned 82.74 72.85 +14% 22.34 20.10 +11% Interest Expensed (37.77) (34.91) -8% (9.51) (9.12) -4% Net Interest Income 44.97 37.94 +19% 12.83 10.98 +17% Non Interest Income 19.30 18.11 +7% 4.77 4.49 +6% Total R
Slide 6: Income Statement – Consolidated
Income Statement – Consolidated YTD YTD PKR Bn Var % Q4'14 Q3'14 Var % Dec'14 Dec'13 Interest Earned 85.76 75.71 +13% 23.12 20.90 +11% Interest Expensed (38.85) (36.20) -7% (9.77) (9.39) -4% Net Interest Income 46.91 39.51 +19% 13.34 11.51 +16% Non Interest Income 22.75 20.70 +10% 5.86 5.25 +12% Tot
Slide 7: Share Info
Share Info Trends – KSE 100 Index and UBL’s Share Price Growth in Book Value Per Share by 24% in 2014 Thousands 35 145 Cons. Equity Dec’14 – Rs 137.5 Bn 125 Max Price 2014 :198.39 30 Cons. BV - Rs. 112.3 per share 210 125 Book Value - Rs. Bn 100 Book value per share 25 168 105 20 75 126 85 15 50 84
Slide 8: Key Ratios – Bank (Standalone)
Key Ratios – Bank (Standalone) Balance Sheet Ratios Dec-13 Dec-14 Adva nces / Depos i ts 50.1% 50.7% As s et Qua l i ty 12.1% 11.2% Covera ge 83.8% 81.2% Financial Ratios FY' 13 FY' 14 Q3'14 Q4'14 Yi el d on P. Adva nces 9.7% 9.5% 8.9% 9.8% Cos t of Depos i ts 3.9% 3.9% 3.9% 3.8% Net Interes t Ma rg
Slide 9: Deposits Structure
Deposits Structure Deposits - Bank Dec'13 Dec'14 Bank Rs Bn PE COF % PE COF % Dome s ti c de pos i ts 619 4.1% 697 4.4% I nte rna ti ona l de pos i ts 209 3.1% 198 2.4% Tota l Ba nk 828 3.9% 895 3.9% I nte rna ti ona l $ Mn 1,986 3.1% 1,967 2.4% Dome s ti c CASA 83% 85% Cost of Deposits 5.0% 4.5% 4.
Slide 10: Net Advances
Net Advances Cha nge De c'14 vs Ne t Adva nce s - Rs. Bn De c'13 De c'14 De c'13 Corporate Bank 182 208 14% Commodity 40 50 24% Commercial 19 22 11% Consumer 8 9 10% Others 12 13 3% Tota l Dome stic 262 300 15% International 129 134 4% Ba nk 391 434 11% International US$ Mn 1,227 1,332 9% 222 208 De
Slide 11: International Advances Dec-14
International Advances Dec-14 11
Slide 12: Spread Analysis – Bank Level
Spread Analysis – Bank Level Bank FY 2014 FY 2013 FY 2013 Avg.Yield Avg.Yield Rs Bn PE AVG IE /Cost PE AVG IE /Cost Interest Earning Assets Performing Advances 406 374 35.3 9.5% 363 337 32.7 9.7% Corporate 188 179 19.5 10.9% 164 156 17.0 10.9% Commercial 23 19 2.4 13.0% 21 17 2.3 13.5% Commodity 50
Slide 13: Concentration of Advances – Consolidated (Dec’14)
Concentration of Advances – Consolidated (Dec’14) Energy Sector Others 20% Airline 19% 2% Contractors 1% Pharmaceuticals 1% Telecom 2% Agribusiness 12% Financial 5% Construction 5% Individuals 10% Wholesale traders 5% Textile Food industries 13% 5% 13
Slide 14: Non Fund Income - Standalone
Non Fund Income - Standalone YTD YTD Non Fund Income - Rs. Mn Var % Q4'14 Q3'14 Var % Dec'14 Dec'13 Fee, commission and brokerage income 11,154 10,049 11% 2,727 2,880 -5% Dividend income 2,001 2,074 -4% 606 355 71% Income from dealing in foreign currencies 3,017 2,156 40% 719 872 -18% Gain / (loss)
Slide 15: Fee Commission and Brokerage Income - Standalone
Fee Commission and Brokerage Income - Standalone YTD YTD Fee Commission Income - Rs. Mn Var % Q4'14 Q3'14 Var % Dec'14 Dec'13 Commission on trade 1,685 1,645 2% 410 401 2% Commission on consumer loan 700 664 5% 164 218 -24% Commission on remittance / uniremote 2,023 1,703 19% 518 483 7% Corporate se
Slide 16: Administrative Expenses - Standalone
Administrative Expenses - Standalone Administrative Expenses - Rs. YTD YTD Var % Q4'14 Q3'14 Var % Mn Dec'14 Dec'13 Personnel Cost 11,265 10,510 -7% 2,862 2,760 -4% Premises Cost 3,925 3,581 -10% 1,037 1,032 -1% Outsourced service charges 3,806 3,049 -25% 1,127 902 -25% including sales commission Ad
Slide 17: UBL OMNI – Branchless Banking
UBL OMNI – Branchless Banking ■ Winner of GSMA International Mobile Award 2012 for “Best Use of Mobile in Humanitarian Initiatives” and recipient of Financial UBL OMNI Commercial Launch: April 2010 Insights Innovation Award 2012, Singapore. Nominated again for No of Accounts: 1.66 Million GSMA Mobil
Slide 18: Financial ratios – Consolidated (1/3)
Financial ratios – Consolidated (1/3) Full Year QTD (Annualized) DuPont 2010 2011 2012 2013 2014 Mar-14 Jun-14 Sep-14 Dec-14 Spread (Standalone) 1 5.5% 5.6% 4.7% 4.0% 4.4% 3.9% 4.4% 4.3% 4.8% Net Interest Margin (Standalone) 2 7.0% 7.2% 6.4% 5.4% 5.7% 5.1% 5.8% 5.6% 6.3% Non Interest Yield 3 1.6% 1.
Slide 19: Financial ratios – Consolidated (2/3)
Financial ratios – Consolidated (2/3) Full Year QTD (Annualized) Asset Quality 2010 2011 2012 2013 2014 Mar-14 Jun-14 Sep-14 Dec-14 Gross NPLs / Gross Loan 12.9% 13.4% 13.6% 11.9% 11.1% 11.7% 11.0% 11.3% 11.1% Net NPLs / Gross Loan 3.6% 2.9% 3.4% 2.2% 2.4% 2.0% 1.8% 2.3% 2.4% Coverage Ratio 69.0% 78
Slide 20: Financial ratios – Consolidated (3/3)
Financial ratios – Consolidated (3/3) Full Year QTD (Annualized) Other Metrics 2009 2010 2011 2012 2013 2014 Mar-14 Jun-14 Sep-14 Dec-14 Capital Adequacy Ratio 14.0% 15.0% 14.9% 14.8% 13.3% 14.3% 13.1% 13.4% 13.9% 14.3% Loan / Deposits 73.7% 62.8% 57.5% 55.0% 50.0% 51.8% 48.0% 51.1% 52.0% 51.8% Net
Slide 21: Quarterly Trend Analysis Bank Level (Stand Alone)
Quarterly Trend Analysis Bank Level (Stand Alone) 21
Slide 22: Profit before Tax
Profit before Tax 9.3 8.4 8.3 8.0 7.8 7.2 7.2 7.1 Rs Bn 6.5 6.4 6.0 5.9 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 22
Slide 23: Profit after Tax
Profit after Tax 6.1 5.7 5.3 5.3 5.2 4.9 4.7 4.7 Rs Bn 4.4 4.3 3.9 4.0 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 23
Slide 24: Deposits
Deposits 866 895 847 858 828 773 752 685 698 703 Rs Bn 653 614 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 24
Slide 25: Net Advances
Net Advances 434 417 408 391 369 377 Rs Bn 364 363 358 355 352 345 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 25
Slide 26: Net Interest Income
Net Interest Income 12.8 11.3 11.0 Rs Bn 10.6 9.9 9.8 9.6 9.6 9.5 9.4 9.0 8.8 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 26
Slide 27: Provisions
Provisions 1.9 1.1 0.9 Rs Bn 0.8 0.7 0.8 0.5 0.3 0.2 0.2 -0.1 -0.1 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 27
Slide 28: Non Funded Income
Non Funded Income 5.5 5.1 5.0 4.8 4.8 4.6 4.9 4.5 4.1 4.0 Rs Bn 3.6 3.9 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 28
Slide 29: Revenue
Revenue 17.6 16.3 15.5 15.4 15.4 14.9 Rs Bn 13.8 13.7 13.2 13.4 14.1 12.6 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 29
Slide 30: Administrative Expenses
Administrative Expenses 8.0 7.2 7.1 6.9 6.9 6.5 6.5 Rs Bn 6.1 6.2 6.2 5.8 5.5 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 30
Slide 31: Forward-looking statements disclaimer
The information contained herein reflects our latest business statement as at Dec 31, 2014. 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 of
Slide 32: Thank You
_@BL UNITED BANK oo Thank You Goi 32