United Bank For Africa Plc · NSENG:UBA
United Bank For Africa — FY2013 Earnings Presentation
32 slides from United Bank For Africa's earnings presentation, Apr 1, 2014
Slide 1: Full Year 2013 Investors/Analysts Presentation
FULL YEAR 2013 Investors/Analysts Presentation APRIL 1, 2014 1
Slide 2: Forward Looking Statements
Forward Looking Statements From time to time, the Bank makes written and/or oral forward-looking statements, including in this presentation and in other communications. In addition, representatives of the Bank may make forward-looking statements orally to analysts, investors, the media and others. A
Slide 3: Important Notes
Important Notes Definition of terms: FY means “Full Year”; and 1Q means “First Quarter”; 2Q means “Second Quarter”; HY means “Half Year”; 1H means “First Half”; 3Q means “Third Quarter” and 9M means “Nine Months”. The results were prepared in line with the International Financial Reporting Standards
Slide 4: Outline
Outline 1 Overview of UBA 2 Macroeconomic Overview 3 Full Year 2013 Financial Highlights 4 Review of Full Year 2013 Financial Results 5 Update on African Business 6 Focus on UBA Sierra Leone 7 Appendix 4
Slide 5: 1. Overview of UBA
UBA MN United Bank for Africa 1. Overview of UBA e New York e London e Paris www.ubagroup.com
Slide 6: Brief History
Brief History Acquired majority interest in two banks based in B/Faso and Benin Successfully raised N20bn Won Financial UBA merged with Standard debt capital Times’ ’ Bankers’ Trust Bank ’ French & British Commenced operations in Awards for Best Bank Limited Standard Continental Trust Bank some Afri
Slide 7: Key business strengths
Key business strengths • Africa’s global bank with a uniquely scaled platform • Strong retail franchise reaching over 7 million customers through more than 700 business offices spread across 22 countries globally • Improving financial performance underpinned by solid risk management standards • Aggr
Slide 8: 2. Overview of Macro Economy
2. Overview of Macro Economy 2. Overview of Macro Economy
Slide 9: Overview of Macro Economy
Overview of Macro Economy Nigeria Ghana Guinea Liberia Benin Republic Cameroun Locations outside Africa GDP ($bn) 263.0 GDP ($bn) 41.0 GDP ($bn) 7.0 GDP ($bn) 2.0 GDP ($bn) 8.0 GDP ($bn) 25.0 GDP Growth 0.3% GDP Growth 3.9% GDP Growth 8.3% GDP Growth 3.5% GDP Growth 6.1% GDP Growth 7.7% Population (
Slide 10: Nigerian Economic Score Card
Nigerian Economic Score Card GROWTH INVESTMENTS Real GDP Growth - 6.81% Market Cap – N12.30 trillion Global GDP ranking- 37 out of 192 Year to date gain- -7.34% (47.2% nations EARNINGS Exports- $ 87.53 billion in 2013) Jobless rate - 23.9% Credit to Private Sector – N16.51 Oil exports- 90.4% of tota
Slide 11: 3. Full Year 2013 Financial Highlights
3. Full Year 2013 Financial Highlights 11
Slide 12: FY 2013 Financial Highlights
FY 2013 Financial Highlights Comprehensive Income & Profit 31-Dec-13 31-Dec-12 Change % COMPREHENSIVE INCOME Gross Earnings 264,687 220,129 20.2% & PROFIT TREND (N’million) Net Interest Income 103,231 91,617 12.7% Non Interest Income 79,212 69,149 14.6% Operating Income 177,218 158,239 12.0% Operati
Slide 13: 4. Review of Full Year 2013 Financial Highlights
4. Review of Full Year 2013 Financial Highlights 4. Review of Full Year 2013 Financial Highlights
Slide 14: Income Analysis
Income Analysis Gross income trend (N’bn) Gross earnings by income type 100.0% 264.7 17% CAGR 22.0% 29.9% 80.0% 31.6% 220.1 non 60.0% 163.7 interest income 40.0% 78.0% 70.1% 68.4% interest income 20.0% 0.0% 2011 2012 2013 FY11 FY12 FY13 Revenue split by geography Nigeria & RoW Africa (excl. Nig) • S
Slide 15: Profitability
Profitability Operating Income (N’bn) Profit Before Tax (PBT) for the Year (N’bn) Operating Income Net operating 70.0 56.1 52.0 177.2 163.9 158.2 138.7 35.0 0.0 FY11 FY12 FY13 -35.0 -26.6 FY11 FY12 FY13 Return on Avg. Equity Return on Avg. Assets • Operating income grew by 12% YoY – Driven largely b
Slide 16: Profit Drivers
Profit Drivers Net Interest Margin Cost of Funds 3.6% 5.8% 5.9% 3.3% 3.0% 4.5% FY'11 FY'12 FY'13 FY'11 FY'12 FY'13 Cost-to-Income Ratio • Net Interest Margin inched up by 10 basis point due to improved yields from higher 89.2% loan to deposit ratios. 64.5% • Cost-to-income ratio, continues to improv
Slide 17: Financial Position
Financial Position Total Assets (N’trn) Total Assets plus Contingents (N’trn) 3.13 2.64 2.67 2.27 2.31 1.93 FY'11 FY'12 FY'13 FY'11 FY'12 FY'13 Total Assets Mix • Strong asset base, aggregating to 2.8% 2.9% N2.64 trillion 5.3%3.1% Cash and bank balances 27.1% • Overall, balance sheet footing is Loan
Slide 18: Loan Portfolio
Loan Portfolio Loan Book (N’bn) NPL Ratio Loan Book, by Customer Type Corporate Retail 963.9 Public Sector Commercial 3.0% Financial Sector 6.5% 4.1% 5.5% 9.0% 7.2% 7.6% 687.4 5.0% 9.0% 8.8% 647.2 1.9% 13.8% 11.5% 14.1% 1.2% 65.7% 68.2% 63.9% FY11 FY12 FY13 FY11 FY12 FY13 FY11 FY12 FY13 • Grew loan
Slide 19: Deposit Portfolio
Deposit Portfolio Deposit Book (N’trn) Deposit Mix, by Cost Expensive 21.1% 20.2% 24.2% 2.40 2.22 (Term) 2.00 Cheap (Current & 1.78 78.4% 79.8% 75.8% Savings) 1.60 1.47 1.20 FY11 FY12 FY13 • Deposit growth of 25% achieved YoY 0.80 • Generated largely from cheap sources 0.40 • Cheap deposits make up
Slide 20: Funding, Liquidity and Capital Adequacy
Funding, Liquidity and Capital Adequacy Funding Mix Capital Adequacy Ratio Deposits Equity Borrowing Others 23.5% 23.2% 6.1% 6.0% 4.8% 9.9% 5.0% 9.2% 17.0% 8.5% 8.8% 78.2% 84.3% 75.3% FY11 FY12 FY13 Liquidity Ratio FY11 FY12 FY13 69.8% • Deposits remain the biggest source of our 60.0% 55.0% funding
Slide 21: 5. Update on African Business
5. Update on African Business
Slide 22: Overview of our African Business
Overview of our African Business Footprint and Retail Franchise Network Senegal Burkina Faso Benin Mozambique Tanzania Established: 2009; Established: 1974; Established: 2009; Established:2010; Established:2009; Rev.: 3,473; Rev.: 83,52; Rev.: 4,723 Rev.: 942; Rev.: 1,186; Op Income: 3,141; Op Incom
Slide 23: Key Performance by Geography
Key Performance by Geography Revenue split by geography Total Assets split by geography 19.5% 20.4% 1.4% 3.6% 78.3% 76.9% Nig RoW Africa Nig RoW Africa Loans split by geography Deposit split by geography 16.4% 18.1% 3.9% 2.1% 79.8% 79.7% Nig RoW Africa Nig RoW Africa 23
Slide 24: 6. Focus on Sierra Leone
UBA MN United Bank for Africa 6. Focus on Sierra Leone e New York e London e Paris www.ubagroup.com
Slide 25: Sierra Leone Economic Scorecard
Sierra Leone Economic Scorecard GROSS DOMESTIC PRODUCT GDP – $3.80 billion GDP per Capita – $435.41 GDP Growth rate – 6.20% INDICATORS Inflation Rate – 8.96% Interest Rate – 10.00% LABOUR Population – 5.98 million Unemployment Rate – 3.4% TRADE GOVERNMENT Government Debt to GDP – 37.9% Export – $199
Slide 26: Sierra Leone – Key Financial Highlights
Sierra Leone – Key Financial Highlights Comprehensive Income & Profit 31-Dec-13 31-Dec-12 Change % COMPREHENSIVE INCOME Gross Earnings 1,151 941 22.3% & PROFIT TREND (N’million) Net Interest Income 485 349 38.7% Non Interest Income 493 394 25.1% Operating Income 978 743 31.6% Operating Expenses 539
Slide 27: Income Analysis
Income Analysis Revenue Trend (N’ ’mn) Revenue Mix (%) 1,151.0 Non Interest Income Interest Income 941.5 37.4% 598.9 54.8% 53.7% 62.6% 45.2% 46.3% FY11 FY12 FY13 FY11 FY12 FY13 Profitability (N’ ’mn) Operating income PBT 978.4 • Gross Earnings grew by 22% in the period under 743.5 review on back of
Slide 28: Financial Position
Financial Position Growing Asset Base (N’ ’mn) Deposits (N‘ ‘mn) 11,762.0 12,000.0 10,130.2 8,632.0 7,351.4 6,000.0 2,759.5 1,830.6 - FY11 FY12 FY13 FY11 FY12 FY13 Loan growth (N’ ’mn) Good loan growth at 91% YoY, and a 3-year 278.7 CAGR of 25% and translating to a loan to deposit Loan ratio of 3% (
Slide 29: Improving Profitability and Efficiency
Improving Profitability and Efficiency Strong Net Interest Margins Trend in Cost/Income 24% 82.1% 80.0% 60.0% 15% 55.0% 13% 40.0% 0.0% FY11 FY12 FY13 FY11 FY12 FY13 Return on Assets Return on Equity • Net interest margins gained 200 basis 5.2% points, from 13%. 4.2% 39% • Cost to income ratio declin
Slide 30: 7. Appendix
UBA MN United Bank for Africa 7. Appendix e New York e London e Paris www.ubagroup.com
Slide 31: Summary Historical Financials
Summary Historical Financials FY2010 FY2011 FY2012 1Q 2013 2Q 2013 3Q 2013 FY2013 Key Income Items (N’ million) Gross earnings 177,571 184,833 220,129 62,765 63216 62,040 264,687 Interest income 117,745 121,422 150,003 44373 44251 44133 185,700 Interest expense (46,969) (46,125) (58,386) (17214) (18
Slide 32: Thank you
UBA MN United Bank for Africa Thank you e New York e London e Paris www.ubagroup.com
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