United Bank Limited · PSX:UBL
United Bank — Q1 2008 Earnings Presentation
31 slides from United Bank's earnings presentation, Apr 26, 2008
Slide 1: United Bank Limited Performance Review (Consolidated) 1Q 2008
United Bank Limited Performance Review (Consolidated) 1Q 2008 April 26, 2008
Slide 2: Key Highlights
Key Highlights Profitability • PBT up 1% y-o-y at Rs.4.7B • Impact on provisioning charge due to FSV removal - Rs 260M • PBT up 7% y-o-y before FSV impact • Non Interest Income up 53%; strong fee income and derivatives gains • Net Interest income up 9%; significant increase in advances Balance Sheet
Slide 3: Summary
Summary Mar 2008 Dec 2007 Change Assets (PKR bn) 554 547 +1% Advances (PKR bn) 328 308 +6% Market Share-Adv- DOM 9.6% 9.4% Deposits (PKR bn) 417 412 +1% Market Share-Deposits- DOM 9.1% 9.1% Branches 1,096 1,095 1 ATMs 336 326 10 ROAA 2.3% 1.9% ROAE 26% 23% Credit Rating (JCR-VIS) AA+/A-1+ AA+/A-1+ 0
Slide 4: Share Info
Share Info Mar 2008 Dec 2007 EPS (Rs/share-annual.) 12.4 8.9 BV/share (Rs/share) 47.6 47.3 Price* - (Rs /share) 161.5 162.9* P/E 13.1x 18.4x P/BV 3.1x 3.4x # of shares 1,012M 1,012M * Share price (Dec'07) after announcement of results M a r'08 pric e a t 21 Apr'08 De c '07 pric e a t 19 F e b'08 - a
Slide 5: Income Statement (PKR bn)
Income Statement (PKR bn) QTD QTD % 3 month 3 month % Full year Mar'08 Dec'07 Change Mar'08 Mar'07 Change Dec'07 Net Interest Income 6.56 6.23 +5% 6.56 5.99 +9% 24.80 Non Interest Income 3.36 3.07 +10% 3.36 2.20 +53% 9.93 Operating Revenue 9.92 9.29 +7% 9.92 8.19 +21% 34.73 Operating Expense (3.74)
Slide 6: Balance Sheet (PKR bn)
Balance Sheet (PKR bn) % Mar'08 Dec'07 Change Cash & bank balances 62.7 68.6 -9% Investments 106.2 114.0 -7% Advances 327.9 308.3 +6% Fixed assets 19.3 19.0 +1% Total Assets 553.6 546.8 +1% Deposits 416.8 412.1 +1% Borrowings 54.8 59.5 -8% Total Liabilities 505.2 498.9 +1% Equity 48.4 47.9 +1% 04/28
Slide 7: Financial Ratios
Financial Ratios QTD QTD 3 month 3 month Full year Mar'08 Dec'07 Mar'08 Mar'07 Dec'07 Loan/Deposits 78.7% 74.8% 78.7% 71.6% 74.8% ROAE 26.2% 17.2% 26.2% 37.7% 22.8% ROAA 2.3% 1.4% 2.3% 2.9% 1.9% Cost/Income Ratio 43.4% 62.3% 43.4% 39.9% 50.9% Gross NPLs/Gross Advances 6.8% 6.9% 6.8% 6.4% 6.9% Net NP
Slide 8: Deposit Structure
Deposit Structure Deposit Mix - Bank (Parent Company) Other Deposits – PKR 10bn Contribution 2% Cost 0.1% Fixed Deposits – PKR 137bn Contribution 34% Current Deposits–PKR 110bn Cost 6.8% Contribution 27% Cost 0% Saving Deposits – PKR 151bn Contribution 37% Cost 3.1% Total Deposits = PKR 408 bn Cost
Slide 9: Advances by Business
Advances by Business Advances by Business 2006 2007 Mar-08 160 145 140 131 120 104 100 Rs B 80 69 64 60 55 54 49 47 45 44 39 40 17 15 20 13 - Corporat e Bank Commercial Bank Consumer Bank Overseas Others (incl subsidiaries) % Net Advances Mar'08 Dec'07 Change Mix 08 Yield 08 Yield 07 Corporate Bank
Slide 10: Consumer Advances by Product
Consumer Advances by Product 2006 2007 Mar-08 Yield Mar 08 24% 25% 24 23 22 22% 21 21% 20 20% 15% 16 14% 14% 15% 12 10% 8 6 5 5 5 6 5 5 5 5 5 5 5 4 4 3 5% 4 0 0% Drive Address Credit Card Cashline Businessline Money % Mar'08 Dec'07 Change Mix 08 Yield 08 Yield 07 Drive 22.1 23.2 -4% 49% 13.5% 12.6%
Slide 11: QTD – Net Interest Margin (Bank Level)
QTD – Net Interest Margin (Bank Level) QTD Dec'07 QTD Mar'08 Interest Interest Average incom e / Avg.Yield Average incom e / Avg.Yield Balances (expense) /Cost Balances (expense) /Cost Interest Earning Assets Performing Advances 279,182 7,739 11.0% 299,840 8,183 10.9% Investments (earning) 107,784 2
Slide 12: Spread Analysis (bank level)
Spread Analysis (bank level) QTD March 2007 QTD March 2008 Interest Interest Average incom e / Avg.Yield Average incom e / Avg.Yield Balances (expense) /Cost Balances (expense) /Cost Interest Earning Assets Performing Advances 250,524 7,109 11.5% 299,840 8,183 10.9% Investments (earning) 68,760 1,54
Slide 13: Concentration of Advances
Concentration of Advances A uto mo bile Chemical & Chemical and P harmaceuticals P harma 1.5% 1.4% 1.3% Financial 1.8% Fertilizer 1.5% Others 20.3% Engineering 0.5% A irline/ A viatio n 2.0% Fo o d industries 1.5% Co ntracto rs 0.8% A gribusiness 6.1% Sugar 3.2% Cement 2.4% Who lesale traders 2.3% T
Slide 14: Non Interest Income (PKR mm)
Non Interest Income (PKR mm) QTD QTD % 3 month 3 month % Full year Mar'08 Dec'07 Change Mar 08 Mar 07 Change Dec'07 Commission on consumer loan 386 353 +10% 386 370 +4% 1,478 Minimum balance charges 113 147 -23% 113 112 +1% 518 Commission on trade 318 263 +21% 318 257 +24% 1,022 Commission on remitt
Slide 15: Operating Expenses (PKR mm)
Operating Expenses (PKR mm) QTD QTD % 3 month 3 month % Full year Mar'08 Dec'07 Change Mar 08 Mar 07 Change Dec'07 Personnel cost 1,671 1,476 +13% 1,671 1,508 +11% 6,190 Premises cost 510 457 +12% 510 270 +89% 1,491 Outsourced serv.charges incl. sales comm 347 323 +7% 347 290 +20% 1,293 Advertisemen
Slide 16: E-Banking
E-Banking E-Banking Mar-08 Dec-07 Dec-06 % Change # of ATMs 336 326 210 +55% # of Transactions (M) 3.3 9.5 5.9 +60% Average transactions per day 36k 26k 16k +63% Total transaction amount (Rs B) 16 48 29 +65% Average transaction size (Rs 000) 4.9 5.0 4.9 +3% Average monthly transactions per ATM (Rs M
Slide 17: Financial Ratios (1 of 3)
Financial Ratios (1 of 3) Yearly QTD ( A nnua li z e d ) DuPont 2005 2006 2007 D e c -0 7 Mar-08 1 Net Interest Yield 4.5% 5.4% 5.0% 4.8% 4.8% 2 Net Interest Margin 5.4% 6.4% 6.1% 5.6% 5.7% 3 Non Interest Yield 1.7% 1.8% 2.0% 2.3% 2.4% Operating Exp. / Assets 2.6% 2.9% 2.9% 3.0% 2.7% Cost Income Rat
Slide 18: Financial Ratios (2 of 3)
Financial Ratios (2 of 3) Yearly QTD ( A nnua liz e d ) Asset Quality 2005 2006 2007 D e c -0 7 Mar-08 Gross NPLs / Gross Loan 7.7% 6.2% 6.9% 6.9% 6.8% Net NPLs / Gross Loan 1.7% 1.6% 1.9% 1.9% 2.0% Coverage Ratio 85% 83% 78% 78% 77% Prov. held / Gross loan 6.0% 4.6% 4.9% 4.9% 4.8% Prov. Exp. / Gros
Slide 19: Financial Ratios (3 of 3)
Back main ratios Financial Ratios (3 of 3) Yearly QTD ( A nnua l iz e d ) Other Metrics 2005 2006 2007 D e c -0 7 Mar-08 Capital Adequacy Ratio 10.7% 12.2% 12.4% 12.4% 13.1% Tier-I CAR 7.7% 8.9% 8.8% 8.8% 8.3% Loan / Deposits 71% 74% 75% 75% 79% Loan / Assets 59% 58% 56% 56% 59% RWA / Assets 67% 73%
Slide 20: Quarterly Trend Analysis
Quarterly Trend Analysis Bank Level 04/28/2008 9:34:52 AM 20
Slide 21: Profit Before Tax
Profit Before Tax 5.3 4 .7 4 .6 4 .4 Before FSV/ERS 4 .4 4.5 4 .1 3 .8 4 .1 3 .5 3 .6 Reversal in Mar’07 3 .4 3.7 of accruals in Dec’06 Rs B 2.9 Provision–PR amendment 2 .1 FSV / others ( Rs 1.975M) 1.9 2.1 Provision–FSV ( Rs 1,829M) ERS (Rs 307M) 1.3 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep
Slide 22: Profit after Tax
Profit after Tax 3.5 3 .1 2 .9 3.0 2 .6 2 .6 2 .4 2 .3 2 .2 2.4 Prior period tax adj. Rs B (Rs 402M) - one-off exp. 1.9 1.5 1.3 1.3 0.8 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 04/28/2008 9:34:52 AM 22
Slide 23: Deposits
Deposits 435 403 408 402 381 395 3 52 355 335 Rs B 326 308 315 289 275 235 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 04/28/2008 9:34:52 AM 23
Slide 24: Advances
Advances 320 330 299 298 280 280 266 247 2 52 Rs B 236 235 234 208 202 170 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 04/28/2008 9:34:52 AM 24
Slide 25: Net Interest Income
Net Interest Income 7.0 6 .4 6 .1 6 .2 6 .0 5 .8 6.2 5 .6 5 .6 5 .2 5.4 Rs B 4 .5 4.6 3.8 3.0 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 04/28/2008 9:34:52 AM 25
Slide 26: Net Provision
Net Provision 3.5 2 .9 2 .8 2.8 Provision–FSV Rs 1.829M) 2.1 Rs B Provision–PR amendment FSV / others ( Rs 1.975M) 1.5 0 .9 0 .4 1.2 0 .5 0 .5 0.8 0 .4 0 .4 0.1 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 04/28/2008 9:34:52 AM 26
Slide 27: Non-Funded Income
Non-Funded Income 3 .0 3.0 2 .6 2.6 2 .3 2 .2 2 .2 2 .1 2.2 Rs B 1. 7 1.8 1.6 1. 4 1.4 1.0 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 04/28/2008 9:34:52 AM 27
Slide 28: Total Revenue
Total Revenue 9.0 7.8 8 .2 7.4 7.5 7.8 6 .3 6 .1 6.6 Rs B 5.7 5.8 5.5 5.4 4.2 3.0 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 04/28/2008 9:34:52 AM 28
Slide 29: Administrative Expenses
Administrative Expenses 4.2 3 .8 3.8 3 .4 3 .5 3 .4 3 .4 3.3 ERS (Rs 307M) Rs B 2 .9 Reversals in Mar’07 of accruals in Dec’06 2 .7 2.9 2 .7 2.4 2 .2 2.0 M ar 06 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 04/28/2008 9:34:52 AM 29
Slide 30: Information reflects latest business statement as at March 31, 2008
The information contained herein reflects our latest business statement as at March 31, 2008 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 31: Thank You
Thank You 04/28/2008 9:34:52 AM 31