United Bank For Africa Plc · NSENG:UBA
United Bank For Africa — H1 2016 Earnings Presentation
18 slides from United Bank For Africa's earnings presentation, August 2016
Slide 1: Management Presentation: Audited 2016 Half Year Results
Management Presentation Audited 2016 Half Year Results August 2016
Slide 2: Disclaimer and Note of Caution
Disclaimer and Note of Caution 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
Slide 3: Presentation Outline
Presentation Outline Evolution of UBA Macroeconomic Update Regulatory environment 2016 Half Year Performance Review Review of 2016FY Performance Guidance Questions Audited 2016 Half Year Results Presentation ::: August 2016 3
Slide 4: Evolution of UBA Plc
Evolution of UBA Plc Acquired majority interest in two banks based in B/Faso and Benin Successfully raised N20bn debt capital UBA merged with Standard Commenced operations in Won Financial Times’ Trust Bank some African countries Bankers’ Awards for French & British Standard Trust Continental Trust
Slide 5: UBA Profile at a Glance
UBA Profile at a Glance A truly Pan-African Bank, with operations across 19 key un(der)banked African markets A unique and scalable platform to take full advantage of growth opportunities in all sectors of the African economy o Third largest bank in Nigeria (the biggest economy), with an estimated c
Slide 6: Operating Environment…All eyes on recovery
Operating Environment…All eyes on recovery o The International Monetary Fund (IMF) revised downward the global growth outlook by 10bps to 3.1%, largely due to the downside risk that “Brexit” presents; uncertainties about trade and capital flows Commodity Price Growth 31% o Africa’s GDP is expected t
Slide 7: Policy and regulatory environment
Policy and regulatory environment Nigeria Implications o Raises yields on assets, as sovereign yields spikes to new highs; albeit o 300bps hike in MPR (+100bps in March and +200bps in July). funding cost has risen, with savings deposit rate rising by 90bps to 4.2% o Returning confidence to the Niger
Slide 8: 2016 Half Year Results Snapshot ::: Proven Resilience
2016 Half Year Results Snapshot ::: Proven Resilience 30-June-16 30-June-15 % Change Gross Earnings 165,580 165,743 -0.1% Net Interest Income 64,132 64,390 -0.4% COMPREHENSIVE INCOME & PROFIT Net Operating Income 109,367 108,776 +0.5% TREND (N’million) Operating Expenses (69,026) (69,678) -0.9% Prof
Slide 9: 2016 Half Year Results Snapshot: Gross earnings
2016 Half Year Results Snapshot ::: Proven Resilience Gross earnings Trend (N’billion) Gross earnings by source 166 166 Interest Income Non-Interest Income 138 126 30% 29% 30% 35% 70% 71% 70% 65% 2013H1 2014H1 2015H1 2016H1 2013H1 2014H1 2015H1 2016H1 Gross earnings split by geography • We achieved
Slide 10: 2016 Half Year Results Snapshot: Operating income and profit
2016 Half Year Results Snapshot ::: Proven Resilience Operating Income (N’billion) Profit Before Tax (N’billion) 40 39 109 109 33 90 90 29 2013H1 2014H1 2015H1 2016H1 2013H1 2014H1 2015H1 2016H1 Return on Average Equity/Assets (%) • Our operating income remained stable year-on-year at N109 billion.
Slide 11: 2016 Half Year Results Snapshot: Margins and efficiency
2016 Half Year Results Snapshot ::: Proven Resilience Net Interest Margin (%) Cost of Funds (%) 6.2% 4.2% 5.9% 5.9% 5.9% 3.9% 3.3% 3.4% 2013H1 2014H1 2015H1 2016H1* 2013H1 2014H1 2015H1 2016H1* Cost-to-Income Ratio (%) • Net interest margin settled at 5.9% in the period, reflecting our biased exposu
Slide 12: 2016 Half Year Results Snapshot: Total assets and funding
2016 Half Year Results Snapshot ::: Proven Resilience Total Assets (N’trillion) Funding Structure 3.3 9.6% 10.5% 12.4% 2.9 5.5% 3.1% 4.2% 5.3% 7.0% Deposits 7.3% 2.4 2.5 Debt Other 79.6% 79.5% Liabilities 76.1% Equity 2013H1 2014H1 2015H1 2016H1 2014H1 2015H1 2016H1 Composition of Total Asset Portfo
Slide 13: 2016 Half Year Results Snapshot: Loan book and NPL
2016 Half Year Results Snapshot ::: Proven Resilience Total Loan Book (N’trillion) 1.3 NPL Ratio (%) 1.2 2.4% 0.9 2.0% 0.8 1.8% 1.6% 2013H1 2014H1 2015H1 2016H1 2013H1 2014H1 2015H1 2016H1 Sector Split of Loan Book o Largely driven by Naira devaluation, the loan book grew by 25% year-to-date, albeit
Slide 14: 2016 Half Year Results Snapshot: Capital and liquidity
2016 Half Year Results Snapshot ::: Proven Resilience Equity-to-Total Assets Ratio (%) Liquidity Ratio (%) UBA Liquidity Ratio Regulatory Requirement 12.4% 53% 12.0% 45% 45% 10.0% 9.0% 2013FY 2014FY 2015FY 2016H1 2014FY 2015FY 2016H1 Capital Adequacy Ratio (%) Loan-to-Deposit Ratio (%) UBA BASEL II
Slide 15: Year-end Outlook
Burkina Faso Senegal Benin Chad Guinea Ivory Nigeria Uganda Sierra Coast Leone Year-end Outlook Liberia Ghana Cameroon Kenya Gabon DR Congo Tanzania Congo Zambia Mozambique Audited 2016 Half Year Results Presentation ::: August 2016 15
Slide 16: The Four Tactical Strategic Thrusts
The Four Tactical Strategic Thrusts 1 Earnings Optimization 2 Cost Efficiency o Achieve higher yields on assets, through (right) pricing; new o Improve efficiency of centralized operations mix of LCY/FCY assets, and asset allocation o Continuous migration of customers to low cost o Increase transact
Slide 17: Review of 2016 Guidance
Review of 2016 Guidance Revised Headlines 2015FY 2016H1 Actual 2016FY Target Scorecard 2016FY Target Net Interest Margin (NIM) 6.3% 5.9% ≈6.3% Underperform ≈6.3% Cost-to-Income Ratio (CIR) 66.7% 63.1% ≈65% Achieved ≈65% Cost of Risk 0.5% 1.1% ≈1% Achieved ≈1% NPL Ratio 1.7% 2.4% ≈2.5% Achieved ≈2.5%
Slide 18: Questions & Answers
Conclusion Questions & Answers Audited 2016 Half Year Results Presentation ::: August 2016 18
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