United Bank Limited · PSX:UBL
United Bank — Q1 2013 Earnings Presentation
31 slides from United Bank's earnings presentation, March 2013
Slide 1: United Bank Limited Performance Review
United Bank Limited Performance Review March 2013 1
Slide 2: Key Highlights
Key Highlights • Standalone PAT down 19% YoY to Rs 4.0 bn. Consolidated PAT up 2% YoY to Rs 4.9 bn • Net interest income down 8% YoY to Rs 8.8 bn o NII reduced YoY due to the lower rate environment and increase in minimum PLS saving deposits rate from 5% to 6%. o Yield on earning assets reduced YoY
Slide 3: Key Highlights
Key Highlights • Provisions are down by 38% YoY to Rs 0.5B o Excluding the sovereign guaranteed NPL, coverage ratio has improved to 83% in Mar’13 as compared to 82% in Dec’12. The domestic coverage has increased from 84% in Dec’12 to 86% in Mar’13. o NCL ratio improved by 35 bps YoY to 0.5% in Q1’13
Slide 4: Income Statement - Standalone
Income Statement - Standalone PKR Bn Q1'13 Q1'12 Var % Q4'12 Var % Interest Earned 17.01 17.70 -4% 18.04 -6% Interest Expensed (8.22) (8.10) -2% (8.62) 5% Net Interest Income 8.79 9.60 -8% 9.42 -7% Non Interest Income 3.85 4.09 -6% 3.96 -3% Total Revenue 12.64 13.69 -8% 13.38 -6% Admin. Expenses (6.
Slide 5: Income Statement - Consolidated
Income Statement - Consolidated PKR Bn Q1'13 Q1'12 Var % Q4'12 Var % Interest Earned 17.71 18.01 -2% 18.69 -5% Interest Expensed (8.57) (8.21) -4% (8.93) 4% Net Interest Income 9.14 9.79 -7% 9.76 -6% Non Interest Income 5.10 4.38 16% 4.71 8% Total Revenue 14.24 14.17 0% 14.47 -2% Admin. Expenses (6.
Slide 6: Share Info
Share Info Trends - KSE 100 Index & UBL's Share Price Thousands Book value per share - Standalone 95 20 100 78 85 17 Cons. Equity Mar’13 – Rs 101 Bn 85 66 Cons. BV - Rs 82.4 per share Book Value - Rs. Bn Book value per share 75 14 70 55 65 10 55 43 Max 2013 : 94.56 Min 2013 : 81.24 55 7 Latest MP :
Slide 7: Key Ratios - Bank
Key Ratios - Bank Balance Sheet Ratios Mar-13 Dec-12 Adva nces / Depos i ts 54% 56% As s et Qua l i ty 13.7% 13.4% Covera ge 83% 82% Financial Ratios Q1' 13 Q1' 12 Q4'12 Yi el d on P. Adva nces 9.5% 12.1% 11.1% Cos t of Depos i ts 3.8% 4.3% 4.1% Net Interes t Ma rgi n 5.4% 6.6% 6.0% NCL Ra tio 0.5%
Slide 8: Deposits Structure (Bank level)
Deposits Structure (Bank level) Cost of Deposits Deposits - Bank Cost of Deposits Dec'12 Mar'13 5.2% PE - PE - Bank Rs.Bn COF% Rs.Bn COF% 4.4% Domestic deposits 540 4.6% 530 3.9% 3.6% International deposits 160 3.4% 175 3.4% 2.8% Total Bank 700 4.3% 704 3.8% 2.0% International $ 1,647 3.4% 1,776 3.4
Slide 9: Net Advances
Net Advances % Net Advances - Rs. Bn Dec'12 Mar'13 Change Corporate Bank 173.9 177.6 +2% Commercial * 70.7 56.6 -20% Consumer 7.9 7.7 -3% Others 8.0 7.1 -11% Total Domestic 260.6 249.0 -4% International 103.8 103.1 -1% Bank 364.4 352.1 -3% International US$ Mn 1,068.4 1,047.0 -2% * of which commodit
Slide 10: International Advances
Bahrain, UNITED BANK oo International Advances NewYork, 0% EPZ, 0% Personal |_—Sharjah, loan, 9% 9%
Slide 11: Spread Analysis – Bank Level
Spread Analysis – Bank Level Bank Q1' 13 Q1' 12 Q1' 13 Avg.Yield Avg.Yield Rs Bn PE AVG IE /Cost PE AVG IE /Cost Avg KIBOR - 3M 9.4% 11.9% Interest Earning Assets Performing Advances 324 328 7.7 9.5% 310 299 9.0 12.1% Corporate 161 159 3.9 9.9% 157 146 4.8 13.2% Commercial 17 18 0.6 13.5% 20 21 0.7
Slide 12: Concentration of Advances – Standalone-Mar'13
Concentration of Advances – Standalone-Mar’13 Trading, 4% Airlines, 2% Automobile & Trans. Equip., 2% Agribusiness, 10% Cement, 0% Textile, 16% Chemical and Telecom, 2% pharmaceuticals, 2% Contractor / Constructor, 6% Sugar, 4% Financials, 3% Food, 5% Prod. & Transmission Energy, 18% Individuals, 11
Slide 13: Non Markup / Return / Interest Income
Non Markup / Return / Interest Income Non Fund Income - Rs. Mn Q1'13 Q1'12 Var % Q4'12 Var % Fee, commission and brokerage income 2,344 1,866 26% 2,249 4% Dividend income 549 810 -32% 1,144 -52% Income from dealing in foreign currencies 394 568 -31% 329 20% Gain / (loss) on sale of securities 399 41
Slide 14: Fee Commission and Brokerage Income
Fee Commission and Brokerage Income Fee Commission Income - Rs. Mn Q1'13 Q1'12 Var % Q4'12 Var % Commission on trade 354 430 -18% 380 -7% Commission on consumer loan 156 210 -26% 202 -23% Commission on remittance / uniremote 375 246 53% 330 14% Corporate service chgs/finance fee/FI inc. 330 287 15%
Slide 15: Administrative Expenses
Administrative Expenses Administrative Expenses - Rs. Mn Q1'13 Q1'12 Var % Q4'12 Var % Personnel Cost 2,602 2,429 -7% 2,522 -3% Premises Cost 926 764 -21% 928 0% Outsourced service charges 669 482 -39% 633 -6% including sales commission Advertisement and publicity 104 134 23% 62 -66% Communications
Slide 16: UBL OMNI – Branchless Banking
UBL OMNI – Branchless Banking • UBL Omni is the market leader in Commercial Launch: UBL OMNI April 2010 branchless banking. No of Agents: No of cities/towns: 11,000+ 650+ No of transactions: 71+ Million • Winner of GSMA International Mobile Transaction volume: Grant Received: PKR 211+ Billion US$ 6.
Slide 17: Financial ratios – Consolidated (1/3)
Financial ratios – Consolidated (1/3) YTD Q T D ( A n n u a liz e d ) DuPont 2009 2010 2011 2012 Dec-12 Mar-13 Spread (St) 1 5.5% 5.5% 5.6% 4.7% 4.4% 4.0% Net Interest Margin (St) 2 6.9% 7.0% 7.2% 6.3% 6.0% 5.4% Non Interest Yield 3 2.1% 1.6% 1.7% 2.2% 2.0% 2.1% Admin Exp./Avg Assets 2.8% 2.8% 2.8%
Slide 18: Financial ratios – Consolidated (2/3)
Financial ratios – Consolidated (2/3) QTD Asset Quality YTD ( A n n u a liz e d ) 2009 2010 2011 2012 Dec-12 Mar-13 Gross NPLs / Gross Loan 10.3% 12.9% 13.4% 13.6% 13.6% 13.8% Net NPLs / Gross Loan 3.0% 3.6% 2.9% 3.2% 3.2% 3.0% Coverage Ratio 70.9% 71.9% 80.1% 76.7% 76.7% 78.3% Prov. held / Gross lo
Slide 19: Financial ratios – Consolidated (3/3)
Financial ratios – Consolidated (3/3) Yearly Other Metrics Q T D ( A n n u a liz e d ) 2009 2010 2011 2012 Dec-12 Mar-13 Capital Adequacy Ratio 14.0% 15.0% 14.9% 14.8% 14.8% 14.5% Tier-I CAR 9.5% 10.4% 10.6% 10.2% 10.2% 10.2% Loan / Deposits 73.7% 62.8% 57.5% 54.8% 54.8% 53.0% Net Loans / Assets 56.
Slide 20: Quarterly Trend Analysis
Quarterly Trend Analysis Bank Level 20
Slide 21: Profit before Tax
Profit before Tax 8.0 7.5 7.2 7.2 7.3 6.5 6.6 6.6 6.0 Rs Bn 5.9 5.9 5.2 5.0 5.2 4.5 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 21
Slide 22: Profit after Tax
Profit after Tax 5.5 4.9 5.0 4.7 4.5 4.5 4.5 4.2 Rs Bn 3.9 4.0 4.0 3.4 3.5 3.3 3.0 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 22
Slide 23: Deposits
Deposits 750 700 704 685 700 653 650 613 614 Rs Bn 594 600 557 550 529 500 Mar'11 Jun'11 Sep'11 Dec'11 Mar'12 Jun'12 Sep'12 Dec'12 Mar'13 23
Slide 24: Net Advances
Net Advances 375 364 363 358 355 352 351 345 Rs Bn 339 334 334 326 325 327 315 Mar'11 Jun'11 Sep'11 Dec'11 Mar'12 Jun'12 Sep'12 Dec'12 Mar'13 24
Slide 25: Net Interest Income
Net Interest Income 11.0 10.5 10.3 10.2 9.9 10.0 9.8 9.6 9.6 Rs Bn 9.4 9.5 9.2 9.0 8.8 8.5 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 25
Slide 26: Total Provision
Total Provision 3.0 2.6 2.3 2.4 1.9 1.6 1.8 Rs Bn 1.0 1.1 1.2 0.8 0.7 0.5 0.6 - Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 26
Slide 27: Non Fund Income
Non Fund Income 6.0 5.5 5.3 4.6 4.1 4.0 Rs Bn 3.8 3.9 3.9 3.6 3.0 3.0 3.2 2.9 2.5 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 27
Slide 28: Gross Revenue
Gross Revenue 16.5 15.4 15.6 14.7 Rs Bn 13.6 13.7 13.8 13.4 13.2 13.4 13.0 12.6 12.9 12.2 12.0 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 28
Slide 29: Administrative Expenses
Administrative Expenses 6.5 6.2 6.2 6.1 6.1 5.8 5.7 5.5 Rs Bn 5.3 5.0 5.0 5.0 4.9 4.7 4.5 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 29
Slide 30: Forward-looking statements
The information contained herein reflects our latest business statement as at March 31, 2013. 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 o
Slide 31: Thank You
_@Bt UNITED BANK oo Thank You Cai iil