United Bank For Africa Plc · NSENG:UBA
United Bank For Africa — H1 2024 Earnings Presentation
42 slides from United Bank For Africa's earnings presentation, October 2024
Slide 1: United Bank for Africa Half Year 2024 Investor Presentation
United Bank for Africa Half year 2024 Investor Presentation October 2024 Africa, USA, UK, France, UAE Africa’s Global Bank
Slide 2: United Bank for Africa Investor Presentation
UNITED BANK FOR AFRICA INVESTOR PRESENTATION October 2024 2
Slide 3: Disclaimer
Disclaimer IMPORTANT: From time to time, United Bank for Africa Plc (“UBA” or 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
Slide 4: Outline
Outline Section Page 1. About UBA Group 05 2. UBA’s Growth and Evolution Story 11 3. Global Operating Environment Overview 14 4. Sustainability & Governance 18 5. Financial Performance 21 6. Digital Business & Payment System 33 7. Outlook/Guidance 44 UBA Investor Presentation 4
Slide 5: About UBA Group
About UBA Group SECTION 1 Africa’s Global Bank
Slide 6: About UBA Group Overview
About UBA Group Overview MARKET CHANNELS STAFF PRODUCTS UBA has over 30 million UBA has one of the largest As at June 30, United Bank for AfricaPlc (UBA) is a leading pan-African UBA is a financial customers in retail, distribution networks in 2024, the institution, commercial and corporate financia
Slide 7: UBA's Credentials
UBA’s Credentials Over 7 decades of strength, stability & stewardship Disciplined, customer-centric strategy Product leadership & innovation Proven expertise and capacity in key sectors Solution-focused technology & integrated operating platform About UBA Group 7
Slide 8: UBA Today - Africa's Global Bank
UBA Today - Africa’s Global Bank 30 Million+ 1,000+ 430,000+ 160,000+ Total Customers Branches and Touchpoints Active POS Machines Agents 20 4 19.7 Million+ 2,366+ African Operations Operations outside Africa Active No of Cards Issued ATMs 30.2 Million+ 4.8 Million+ 26,000+ Digital Banking Customers
Slide 9: UBA's African Footprint
UBA’s African Footprint Carefully thought-out Pan-African strategy, focused on promoting financial services across Africa… Nigeria Benin Cameroon Kenya • Established in 1949 • Established in 2009 • Established in 2008 • Established in 2009 • Serves as Headquarters and • 16 branches • 21 branches • 5
Slide 10: UBA's International Presence
UBA’s International Presence … and being a gateway between Africa and the rest of the World United States of America United Kingdom (UK) France United Arab Emirates (UAE) ▪ Facilitating payments by ▪ UBA UK is a direct conduit for the ▪ Provide representation in France ▪ Operating as a branch of Par
Slide 11: UBA's Growth and Evolution Story
UBA’s Growth and Evolution Story SECTION 2 Africa’s Global Bank
Slide 12: UBA's History and Key Milestones
UBA’s History and Key Milestones Key policy reforms by the CBN have been focused on curtailing inflationary pressures… ▪ UBA’s London business became a subsidiary (1984) ▪ Standard Trust bank commenced operations (1997) ▪ UBA becomes the first Nigerian bank to issue Global Depository Receipts (1998)
Slide 13: UBA's History and Key Milestones
UBA’s History and Key Milestones “Our Heritage, Our Strength.” 2021 - Date ▪ UBA celebrated 70 years of banking operation in Africa. Named Africa’s Bank of the Year by The Banker magazine record ▪ Opened UBA Dubai-DIFC to facilitate international corporate relationships ▪ Expanded digital services,
Slide 14: Global Operating Environment Overview
Global Operating Environment Overview SECTION 3 Africa’s Global Bank
Slide 15: Operating Environment
Operating Environment INSIGHTS Real GDP % Commodities $ 8,210 8,243 3.7 • Global economic growth is projected to decline to 3.4 3.2% from 3.3% recorded in 2023. 3.2 3.3 • Global activity and world trade firmed up at the turn of the year, with trade spurred by strong exports from Asia, particularly i
Slide 16: Operating Environment - Sub Saharan Africa
Operating Environment - Sub Saharan Africa Economic Growth Inflation Exchange Rate ➢ Growth has been divergent across economies. ➢ Inflation has remained structurally ➢ South Africa’s real GDP expanded by above its long-term average. ➢ Currency volatility was a common 0.4% quarter-on-quarter (q-o-q)
Slide 17: Operating Environment - Nigeria
Operating Environment - Nigeria Monetary Policy Rate Inflation ➢ GDP Growth settled at 3.19% in Q2 2024 - 26.75% 32.15% 14th consecutive quarter of economic expansion. Period August’24 / August‘23 Period ➢ Monetary Policy Rate was tightened Aug ’24/ June’24 August Augus t +0.5% 2024 + 6.35% furthere
Slide 18: Sustainability & Governance
Sustainability & Governance SECTION 4 Africa’s Global Bank
Slide 19: UBA's ESG Practices
UBA’s ESG Practices ESG remains a pivotal feature of the Group’s business, with results to show for it Governance Strategy • The Board has the ultimate responsibility for • ESG is embedded in our vision to be the ESG practices, with the oversight functions undisputed leading and dominant financial d
Slide 20: UBA's Impact towards Sustainability
UBA’s Impact towards Sustainability ESG remains a pivotal feature of the Group’s business, with results to show for it 50% >42k 37.4k tCO2e >155k Female Representation on SMEs supported Carbon Emission* Agency Banking the Board c.N432mm 5 Training and Human 105 Nos. Customer Experience c.N817.7mn Ca
Slide 21: Financial Performance
Financial Performance SECTION 5 Africa’s Global Bank
Slide 22: Financial Highlights
Financial Highlights Income Statement (N’million) H1 2024 H1 2023 % Change Gross Earnings 1,371,047 981,775 39.6 • Gross earnings grew by 39.6%, Net Interest Income 674,618 278,113 142.6 driven by triple-digit growth in the Operating Income 936,593 783,958 19.5 Net Interest Income line and 85% growt
Slide 23: Key Metrics
Key Metrics Return Return on Equity on Equity Return Return on Equity on Assets Return on Equity Profit Before Tax Return on Equity Operating Return on Equity Deposits Return on &Equity Loans Income Advances 32.2k 25.2% 32.2k 2.6% 32.2k ₦401.6bn 32.2k ₦936.6bn 32.2k ₦23.2trn 32.2k ₦6.9trn 2022: 19.7
Slide 24: Balance Sheet Growth
Balance Sheet Growth … underpinned by a robust risk management practices Group Total Assets (₦’mn) Loan Book (₦’mn) % Change: +37.2% % Change: +26.1% 6,997,839 28,337,539 5,549,581 20,653,197 3,440,128 10,857,571 FY'22 FY'23 H1'24 FY'22 FY'23 H1'24 Deposits (₦’mn) Shareholders’ Funds (₦’mn) % Change
Slide 25: Solid Earning Profile
Solid Earning Profile Interest Income (₦'bn) Components of Interest Income 134.3% 5% Cash and 1,004 bank balances Gross Earnings (₦'bn) Loans 428 51% 39.6% 44% 1,371 Investment securities 27% 982 H1 2024 H1 2023 56% 73% Non-Interest Income(₦'bn) Components of Non-Interest 44% -33.6% 5% Income Net tr
Slide 26: Trading & Revaluation gains
Trading & Revaluation gains Trading & Foreign Exchange Components of Trading & Foreign Exchange Gains Gains (₦'bn) -76.5% 418 ₦31.9bn ₦51.8bn *₦14.5bn 25% 242% 96.2% 98 (₦25.4bn in H1 23) (₦15.2bn in H1 23) (₦377.7bn in H1 23) Foreign currency revaluation and fair Fixed income Foreign exchange value
Slide 27: Fee and Transactional Income
Fee and Transactional Income ..steady double- & triple-digit Growth Fees & Commission Income Contributions to Fees & Commission Income (₦'bn) 99% 251 126 ₦106.2bn ₦24.5bn ₦32.9bn ₦23.9bn ₦18.1bn ₦26.7bn ₦18.3bn 108% 16% 108% 83% 83% 189% 228% Electronic Commissions Credit- Account Trade Funds Remitt
Slide 28: Key Profitability and Efficiency Indices
Key Profitability and Efficiency Indices .. trending in the right direction Profitability (₦'bn) Cost to Income Ratio Yield on Assets -0.5% -16.4% 404 12.3% 402 378 50.2% 316 37.2% 10.4% • NIM improved Y/Y by 21.3% driven by improved earnings on our treasury assets as well as improvement in asset pr
Slide 29: Robust Balance Sheet with well diversified Asset & loan portfolio
Robust Balance Sheet with well diversified Asset & loan portfolio Well Balanced Asset Mix, with a Resilient and Diversified Loan Book and Low-Cost Funding Base Asset Mix Loan Distribution ▪ Accounts for the largest proportion Sector/Industry H1 2024 FY 2023 Investment (41%) of Total Assets General C
Slide 30: Low-Cost Funding Base
Low-Cost Funding Base • Customer deposits continue to dominate the Bank’s funding mix (82%), which demonstrates combined efforts at deepening our wallet share of the Corporate, Commercial, and Retail business. • Low-cost deposit instrumental to achieving a modest cost of funds. Equity Other Liabilit
Slide 31: Rest of Africa Operations
Rest of Africa Operations … strong growth across the markets The other African Markets have recorded impressive growth… Revenue Growth by Region (₦’bn) Regional Revenue Contribution (%) 172% HY 2024 HY 2023 H1'24 H1'23 276 196% 6% 8% 176 22% 45% 101 135% 59 47% 49 72% 21 West Africa East & Southern
Slide 32: Asset Quality
Asset Quality …supported by proactive risk management practices NPL & Coverage Ratio Trend 77.5% 63.7% • NPL slipped to 6.2% on account of further classification of some exposures. However, the portfolio remains resilient as we continue to monitor it. 6.2% 5.8% HY 2024 FY 2023 NPL NPL Coverage Sourc
Slide 33: Digital Business and Payment System
Digital Business and Payment System SECTION 5 Africa’s Global Bank
Slide 34: Quantum leap in digital banking volumes and revenue
Quantum leap in digital banking volumes and revenue The Bank boasts of a robust and growing digital business, with a plethora of e-banking channels 107.8% 40.6% • Our investments in state-of-the-art technology continue 106.2 to yield expected results, evident in the huge boost of our digital banking
Slide 35: UBA's Digital Business
UBA’s Digital Business The Bank boasts of a robust and growing digital business, with a plethora of e-banking channels UBA Leo UBA Mobile App Hi,I’m ▪ Send money, buy airtime, check ▪ Provides control, support and flexibility, account balance, pay bills and a lot offering banking and lifestyle featu
Slide 36: UBA's Digital Business
UBA’s Digital Business The Bank boasts of a robust and growing digital business, with a plethora of e-banking channels UBA Cards USSD - *919# ▪ Can be used to purchase items in ▪ Customers can open a UBA account, stores, on the Internet and collect cash transfer funds, buy airtime, pay bills, pay fr
Slide 37: UBA's Digital Business
UBA’s Digital Business The Bank boasts of a robust and growing digital business, with a plethora of e-banking channels UBA Cardless Withdrawal Services Contactless Payment ▪ The Cardless Withdrawal Service ▪ Allows merchants and customers to enables customers to carry out accept payments with the Sc
Slide 38: Digital Channels Traction
Digital Channels Traction … …Increased penetration and adoption Channel 2023 2024 % Growth Subscription (mn) 4.3 5.4 25.6% Leo Count (mn) 7.7 9.3 20.8% Value (₦’bn) 83.1 141.1 69.8% Subscription (mn) 7.4 8.1 9.5% Mobile Banking Count (mn) 316.0 322.0 1.9% Value (₦’bn) 12,294.5 17,780.4 44.6% Subscri
Slide 39: Supporting Pan-African Payment System
Supporting Pan-African Payment System UBA-PAPSS Partnership About PAPSS UBA stands among the pioneer African banks to PAPSS serves as a cross-border financial 1 integrate with this financial infrastructure infrastructure facilitating transactions throughout Africa Aligns with our commitment to bolst
Slide 40: Outlook / Guidance
Outlook / Guidance SECTION 7 Africa’s Global Bank
Slide 41: FY2024 Guidance
FY2024 Guidance FY 2024 FY 2024 H1 2024 Revised Initial Guidance Achieved Guidance Deposit Growth 20% 33.7% 45% Loan Growth 20% 26.1% 40% Cost of Risk 3.8% 1.8% 2.8% Non-Performing Loan Ratio 4.5% 6.2% 6.5% Return on Average Equity 30% 25.2% 28% Return on Average Assets 3% 2.6% 2.8% Capital Adequacy
Slide 42: Thank You
Thank You 42
United Bank for Africa — H1 2024 Earnings Presentation on 6ix