United Bank Limited · PSX:UBL
United Bank — H1 2009 Earnings Presentation
33 slides from United Bank's earnings presentation, Jul 29, 2009
Slide 1: United Bank Limited Performance Review (Consolidated) 1H 2009
United Bank Limited Performance Review (Consolidated) 1H 2009 July 29, 2009
Slide 2: Key Highlights
Key Highlights • PAT declines 21% yoy at Rs. 4.6 B • Net Interest income up 19%; – Increase in NII mainly due to higher Kibor rates (Avg Kibor Jan-Jun 08: 11%; Jan-Jun 09: 14%) – Increase in average advances by 13% – Net interest margins (NIMs) remained stable at 6.3% (June 08: 6.2%) • Non-interest
Slide 3: Key Highlights
Key Highlights • Bank expenses up by 11%; – Dom. exp.up by 10% while inflation at 18% yoy; Intl rupee exp. + 23% ; Intl dollar exp. +1% – Cost/average asset ratio for Jun’09 at 2.8% compared to 5.6% for Dec’08 • Advances maintained at Rs. 379 B; Domestic +2% ; Intl -8% ; Intl $ -11% – Reflecting red
Slide 4: Summary
Summary Jun 2009 Dec 2008 Change Assets (PKR bn) 654 620 +5% Advances (PKR bn) 379 378 +0% Market Share-Adv- DOM 9.5% 9.2% Deposits (PKR bn) 521 492 +6% Market Share-Deposits- DOM 9.5% 9.6% Online branches 920 894 +26 ATMs 382 354 +28 ROAA 1.4% 1.4% ROAE 17% 17% Credit Rating (JCR-VIS) AA+/A-1+ AA+/
Slide 5: Share Info
Share Info Jun 2009 Dec 2008 EPS (Rs/share-annual.) 8.3 7.5 BV/share (Rs/share) 52.3 44.4 Price* - (Rs /share) 44.7 39.3 P/E 5.4x 5.2x P/BV 0.9x 0.9x # of shares 1,113M 1,113M * J un-09 P ric e dat e d J uly 17, 2009 * De c -08 P ric e dat e d Marc h 04, 2009 adjust e d f or bonus share s 7/28/2009
Slide 6: Income Statement (PKR bn)
Income Statement (PKR bn) QTD QTD 6 month 6 month Jun'09 Mar'09 Var % Jun'09 Jun'08 Var % Net Interest Income 7.88 8.18 -4% 16.06 13.55 +19% Non Interest Income 4.00 2.47 +62% 6.47 6.58 -2% Operating Revenue 11.88 10.65 +12% 22.53 20.12 +12% Operating Expense (4.46) (4.20) -6% (8.66) (7.80) -11% Pre
Slide 7: Balance Sheet (PKR bn)
Balance Sheet (PKR bn) % Mix- Mix- Jun'09 Dec'08 Change Jun'09 Dec'08 Cash & bank balances 80.4 64.7 +24% 12% 10% Investments 127.6 115.0 +11% 20% 19% Advances 378.8 378.3 +0% 58% 61% Fixed assets 20.2 19.9 +2% 3% 3% * * * * * * * * * * * * Total Assets 654.1 620.2 +5% 100% 100% Deposits 521.2 492.3
Slide 8: Financial Ratios
Financial Ratios QTD QTD YTD YTD FY Jun'09 Mar'09 Jun'09 Jun'08 Dec'08 Loan/Deposits 73% 75% 73% 71% 77% ROAE 13% 21% 17% 24% 17% ROAA 1.1% 1.8% 1.4% 2.1% 1.4% Cost/Income Ratio 60% 50% 54% 44% 52% Gross NPLs/Gross Advances 8.8% 8.2% 8.8% 6.5% 7.3% Net NPLs/Gross Advances 2.9% 3.0% 2.9% 1.8% 2.6% Co
Slide 9: Deposit Structure
Deposit Structure Deposit Mix (YTD Jun 09) - Bank (Parent Company) Cost of Deposits QTD Jun'09 QTD Mar'09 Other Deposits – PKR 12bn Period Avg.Yield Period Avg.Yield end Rs B /Cost end Rs B /Cost Contribution 2% Cost 0.0% Saving deposits 164 5.2% 155 5.7% Fixed Deposits – PKR 182bn Contribution 36%
Slide 10: Advances by Business
Advances by Business % Net Advances Jun'09 Dec'08 Change Mix 09 Yield 09 Yield 08 Corporate Bank 154.4 165.9 -7% 55% 14.5% 12.5% Commercial Bank 86.2 61.4 +40% 31% 16.0% 14.4% Consumer Bank 30.0 36.4 -18% 11% 18.8% 16.5% Others 8.5 10.2 -17% 3% 10.4% 12.0% Domestic 279.1 273.9 +2% 100% 15.3% 13.5% I
Slide 11: Consumer Advances by Product
Consumer Advances by Product 2007 2008 Jun-09 Yield Jun 09 26 25% 23 21% 22% 20% 22 18% 18% 18% 20% 18 17 14 15% 13 10% 9 6 6 5 5 4 4 4 4 4 4 4 3 3 5% 4 2 1 0 0% Drive Address Credit Card Cashline Businessline Money % Jun'09 Dec'08 Change Mix 09 Yield 09 Yield 08 Drive 14.3 17.7 -19% 48% 17.9% 13.6%
Slide 12: QTD – Net Interest Income (Bank Level)
QTD – Net Interest Income (Bank Level) Bank QTD June 2009 QTD March 2009 Avg.Yiel Avg.Yiel Rs B PE AVG IE d /Cost PE AVG IE d /Cost Interest Earning Assets Performing Advances 356 349 11.4 13.1% 349 359 12.4 14.0% Corporate 149 149 5.3 14.3% 156 160 5.9 15.0% Commercial 84 74 2.8 15.2% 62 63 2.6 17.
Slide 13: Spread Analysis - Bank Level
Spread Analysis-Bank Level Bank YTD June 2009 YTD June 2008 Avg.Yiel Avg.Yiel Rs B PE AVG IE d /Cost PE AVG IE d /Cost Interest Earning Assets Performing Advances 356 354 23.8 13.6% 322 316 17.6 11.2% Corporate 149 155 11.2 14.6% 142 143 7.9 11.1% Commercial 84 68 5.5 16.1% 57 53 3.3 12.7% Consumer
Slide 14: Concentration of Advances
Concentration of Advances A uto mo bile and transpo rtatio n equipment, Chemical and 1.7% Financial, 1.3% P harmaceuticals, 1.3% Teleco m, 2.1% Fertilizer , 1.5% Staff lo ans , 1.2% Others, 13.8% A irline/ A viatio n, 1.8% Fo o d industries, 2.4% Co ntracto rs, 1.4% Textile, 15.6% A gribusiness, 15.
Slide 15: Non Interest Income (PKR mm)
Non Interest Income (PKR mm) QTD QTD % 6 month 6 month % Full year Jun'09 Mar'09 Change Jun 09 Jun 08 Change Dec'08 Commission on consumer loan 278 273 +2% 551 782 -30% 1,686 Minimum balance charges 161 121 +33% 282 273 +3% 561 Commission on trade 351 329 +7% 680 650 +5% 1,385 Commission on remittan
Slide 16: Operating Expenses (1 of 2)
Operating Expenses (1 of 2) QTD QTD 6 month 6 month Full year Rs. M Jun'09 Mar'09 Var % Jun 09 Jun 08 Var % Dec'08 Personnel cost 1,904 1,879 -1% 3,783 3,307 -14% 6,754 Early Retirement Scheme 52 34 -53% 85 109 +21% 271 Premises cost 650 587 -11% 1,236 1,088 -14% 2,224 Outsourced serv.chgs incl. sal
Slide 17: Operating Expenses (2 of 2)
Operating Expenses (2 of 2) QTD QTD 6 month 6 month Full year Rs. M Jun'09 Mar'09 Var % Jun 09 Jun 08 Var % Dec'08 Insurance expense 33 12 -173% 45 46 +4% 48 Office running expenses 37 33 -11% 69 51 -37% 115 Entertainment 23 21 -9% 45 42 -7% 88 Cartage, freight and conveyance 18 17 -8% 35 32 -11% 72
Slide 18: E-Banking
E-Banking % E-Banking Jun-09 Dec-08 Change Dec-07 # of ATMs 382 354 +8% 313 # of Transactions (M) 13.7 11.7 +17% 9.5 Average transactions per day 37k 32k +16% 26k Total transaction amount (Rs B) 77 63 +21% 48 Average transaction size (Rs 000) 5.6 5.4 +3% 5.0 Average monthly trans.per ATM (Rs M) 17 1
Slide 19: Financial Ratios (1 of 3)
Financial Ratios (1 of 3) QTD DuPont Full Year A n n u a liz e d 2006 2007 2008 Mar-09 Jun-09 Mar-09 Jun-09 1 Net Interest Yield 5.4% 5.0% 4.9% 5.2% 5.0% 5.2% 4.9% 2 Net Interest Margin 6.4% 6.1% 6.1% 6.4% 6.3% 6.4% 6.2% 3 Non Interest Yield 1.8% 2.0% 1.8% 1.6% 2.1% 1.6% 2.6% Operating Exp. / Assets
Slide 20: Financial Ratios (2 of 3)
Financial Ratios (2 of 3) Asset Quality Full Year Q T D ( A n n u .) 2006 2007 2008 Mar-09 Jun-09 Mar-09 Jun-09 Gross NPLs / Gross Loan 6.2% 6.9% 7.3% 8.2% 8.8% 8.2% 8.8% Net NPLs / Gross Loan 1.6% 1.9% 2.6% 3.0% 2.9% 3.0% 2.9% Coverage Ratio 82.6% 77.9% 68.5% 67.0% 70.5% 67.0% 70.5% Prov. held / Gr
Slide 21: Financial Ratios (3 of 3)
Financial Ratios (3 of 3) Yearly Q T D ( A n n u .) Other Metrics 2006 2007 2008 Mar-09 Jun-09 Mar-09 Jun-09 Capital Adequacy Ratio 12.2% 12.4% 10.6% 11.4% 11.8% 11.35% 11.75% Tier-I CAR 8.9% 8.8% 7.3% 7.7% 8.0% 7.72% 7.99% Loan / Deposits 74.1% 74.8% 76.8% 76.5% 72.7% 76.5% 72.7% Loan / Assets 58.4
Slide 22: Quarterly Trend Analysis
Quarterly Trend Analysis Bank Level 7/28/2009 4:49:09 PM 22
Slide 23: Profit Before Tax
Profit Before Tax Prof it bef ore Tax 6.0 Before FSV(2007, ERS) 4.9 4.7 4.4 4.4 3.9 4.8 3.6 Rs B 2.8 2.1 1.9 2.4 Impairment loss (Rs.2.2B) Provision–PR amendment 0.1 1.2 FSV / others ( Rs 1.975M) Provision–FSV ( Rs 1,829M) ERS (Rs 307M) - Jun 07 Sep 07 Dec 07 Mar 08 Jun 08 Sep 08 Dec-08 Mar 09 Jun-0
Slide 24: Profit after Tax
Profit after Tax Prof it Af ter Tax 4.0 3.2 2.9 2.6 2.7 2.5 3.0 2.0 Rs B 1.5 1.3 1.8 1.0 - -0.6 (1.0) Jun 07 Sep 07 Dec 07 Mar 08 Jun 08 Sep 08 Dec-08 Mar 09 Jun-09 7/28/2009 4:49:09 PM 24
Slide 25: Deposits
Deposits 550 509 509 484 466 469 455 468 Rs B 427 403 402 408 Saving deposits 381 386 345 Jun 07 Sep 07 Dec 07 Mar 08 Jun 08 Sep 08 Dec-08 Mar 09 Jun-09 7/28/2009 4:49:09 PM 25
Slide 26: Net Advances
Net Advances 400 3 71 368 365 375 360 350 Rs B 329 320 325 299 300 280 280 275 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09 7/28/2009 4:49:09 PM 26
Slide 27: Net Interest Income
Net Interest Income 8.5 8 .1 7 .8 7.9 7 .6 7 .3 7.3 Rs B 6 .8 6.7 6 .4 6 .2 6 .1 6 .0 6.1 5.5 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09 7/28/2009 4:49:09 PM 27
Slide 28: Net Provision
Net Provision * 6.0 4 .4 4.8 4 .2 3.6 2 .9 2 .8 Rs B Impairment Loss 2.2B 2 .2 2.4 Provision–FSV Rs 1.829M) 1.2 1.3 1.3 1.2 0 .4 Provision–PR amendment FSV / others ( Rs 1.975M) - Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09 * Excluding other operational Writeoffs 7/28/2009 4:49:
Slide 29: Non-Funded Income
Non-Funded Income 5.0 4.2 3 .7 3 .1 3.4 3 .0 Rs B 2 .9 2 .6 2.6 2 .2 2 .2 2 .1 1. 5 1.8 1.0 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09 7/28/2009 4:49:09 PM 29
Slide 30: Total Revenue
Total Revenue 11.0 9 .1 9.6 8 .5 7 .9 8 .2 7 .8 8.2 Rs B 7 .2 6.8 5 .8 5 .5 5.4 4 .4 4.0 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09 7/28/2009 4:49:09 PM 30
Slide 31: Administrative Expenses
Administrative Expenses 4.5 ERS (Rs 92M) Amor. cost (Rs 179M) 4 .3 4.3 4 .1 3 .9 4.0 4 .1 Rs B 3 .8 3 .7 3.8 3 .5 ERS (Rs 70M) 3 .4 Amor. cost (Rs 322M) 3.5 3 .4 ERS (Rs 307M) ERS (Rs 87M) 3.3 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09 7/28/2009 4:49:09 PM 31
Slide 32: The information contained herein reflects our latest business statement as at June 30, 2009
The information contained herein reflects our latest business statement as at June 30, 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 of
Slide 33: Thank You
Thank You 7/28/2009 4:49:09 PM 33