United Bank Limited · PSX:UBL
United Bank — Q1 2014 Earnings Presentation
32 slides from United Bank's earnings presentation, March 2014
Slide 1: United Bank Limited Performance Review March 2014
United Bank Limited Performance Review March 2014 1
Slide 2: Key Highlights
Key Highlights Standalone PAT up 32% YoY to Rs 5.2 bn. Consolidated PAT up 12% YoY to Rs 5.5 bn Net Interest income up by 12% in Q1’14 vs Q1’13 to Rs 9.8 billion ■ Overall increase in NII is due to average balance sheet growth of 15% funded by core deposits. ■ Earnings asset yields have declined mar
Slide 3: Improving Asset Quality, NPL recoveries and control over costs remain in focus
Improving Asset Quality , NPL recoveries and control over costs remain in focus Provisions and Loan Losses are down by 58% YoY to Rs 0.2 Bn in Q1’14 ■ Active recovery and restructuring efforts within both Domestic and International operations have resulted in the overall 3% reduction in NPLs this qu
Slide 4: Strong growth momentum within retail banking
Strong growth momentum within retail banking – market share grows to highest in last 3 years ■ Strong momentum within the retail distribution network results in a 5% growth in the domestic portfolio and 4% growth in core deposits. ■ Domestic market share enhanced to 8.6% in March14. ■ Average Low co
Slide 5: Income Statement - Standalone
Income Statement - Standalone Q1 '14 Q1 '13 Var % Q4'13 Var % PKR Bn Interest Earned 19.39 17.01 14% 19.41 0% Interest Expensed (9.58) (8.22) -17% (8.84) -8% Net Interest Income 9.81 8.79 12% 10.57 -7% Non Interest Income 5.07 3.85 32% 4.86 4% Total Revenue 14.89 12.64 18% 15.44 -4% Admin. Expenses
Slide 6: Income Statement - Consolidated
Income Statement - Consolidated Q1 '14 Q1 '13 Var % Q4'13 Var % PKR Bn Interest Earned 20.11 17.71 14% 20.22 -1% Interest Expensed (9.86) (8.57) -15% (9.13) -8% Net Interest Income 10.26 9.14 12% 11.09 -8% Non Interest Income 5.75 5.10 13% 5.34 8% Total Revenue 16.01 14.24 12% 16.43 -3% Admin. Expen
Slide 7: Share Info
Share Info Trends – KSE 100 Index and UBL’s Share Price Book Value Per Share Trends - KSE 100 Index & UBL's Share Price Thousands Book value per share - Standalone 190 34 115 180 170 31 Cons. Equity Mar’14 – Rs 110 Bn 78 160 100 150 27 Cons. BV - Rs 89.9 per share Book Value - Rs. Bn 140 66 Book val
Slide 8: Key Ratios – Bank (Standalone)
Key Ratios – Bank (Standalone) Balance Sheet Ratios Dec-13 Mar-14 Adva nces / Depos i ts 50.7% 47.8% As s et Qua l i ty 12.1% 12.1% Covera ge 83.8% 85.8% Financial Ratios Q1 ' 13 Q1 ' 14 Q4'13 Yi el d on P. Adva nces 9.5% 9.1% 10.3% Cos t of Depos i ts 3.8% 4.1% 3.9% Net Interes t Ma rgi n 5.4% 5.1%
Slide 9: Deposits Structure (Bank level)
Deposits Structure (Bank level) Cost of Deposits Deposits - Bank Dec'13 Mar'14 5.2% PE - PE - Bank Rs.Bn COF% Rs.Bn COF% 4.4% Domestic deposits 619 4.1% 651 4.5% 3.6% International deposits 209 3.1% 196 2.6% 2.8% Total Bank 828 3.9% 847 4.1% 2.0% Q1 12 Q2 12 Q3 12 Q4 12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
Slide 10: Net Advances
Net Advances % Net Advances - Rs. Bn Dec'13 Mar'14 Change Corporate Bank 182.1 197.2 +8% Commodity 39.9 25.0 -37% Commercial 19.4 16.3 -16% Consumer 7.7 8.0 3% Others 12.4 10.0 -19% Total Domestic 261.6 256.4 -2% International 129.2 120.7 -7% Bank 390.8 377.1 -4% International US$ Mn 1,229.7 1,227.1
Slide 11: International Advances
International Advances By Geography By Business - UAE Qatar, 11% Yemen, 9% Bahrain, 11% NewYork, 0% EPZ, 1% Corporate, 65% Others, 24% UAE, 68% Consumer, 11% Others, 2% Sharjah, Personal Abu 6% loan, 4% Dhabi, 41% Dubai, Baitna, 94% 53% 11
Slide 12: Spread Analysis – Bank Level
Spread Analysis – Bank Level Bank Q1' 2013 Q1' 2014 Q1 Avg.Yield Avg.Yield Rs Bn PE AVG IE /Cost PE AVG IE /Cost Avg KIBOR - 3M 9.4% 10.1% Interest Earning Assets Performing Advances 324 328 7.7 9.5% 353 355 7.9 9.1% Corporate 161 159 3.9 9.9% 181 168 4.3 10.4% Commercial 17 18 0.6 13.5% 18 18 0.6 1
Slide 13: Concentration of Advances – Bank level (March’14)
Concentration of Advances – Bank level (March’14) Ai rl ines, 2% Tra di ng, Automobile & Tra ns. 4% Equi p., 2% Agri business, 10% Cement, 1% Texti l e, 16% Chemi cal and pha rmaceuticals, 2% Tel ecom, 1% Contra ctor / Cons tructor, 7% Suga r, 2% Prod. & Tra nsmission Energy, 14% Fi nancials, 3% Foo
Slide 14: Non Markup / Return / Interest Income
Non Markup / Return / Interest Income Non Fund Income - Rs. Mn Q1'14 Q1'13 Var % Q4'13 Var % Fee, commission and brokerage income 2,703 2,344 15% 2,799 -3% Dividend income 675 549 23% 1,012 -33% Income from dealing in foreign currencies 654 394 66% 603 9% Gain / (loss) on sale of securities 736 399
Slide 15: Fee Commission and Brokerage Income
Fee Commission and Brokerage Income Fee Commission Income - Rs. Mn Q1'14 Q1'13 Var % Q4'13 Var % Commission on trade 442 354 25% 443 0% Commission on consumer loan 147 156 -5% 181 -19% Commission on remittance / uniremote 511 375 36% 490 4% Corporate service chgs/finance fee/FI inc. 282 330 -15% 360
Slide 16: Administrative Expenses
Administrative Expenses Administrative Expenses - Rs. Mn Q1 '14 Q1 '13 Var % Q4'13 Var % Personnel Cost 2,823 2,602 -8% 2,669 -6% Premises Cost 875 831 -5% 959 9% Outsourced service charges 856 669 -28% 862 1% including sales commission Advertisement and publicity 120 104 -16% 268 55% Communications
Slide 17: UBL OMNI – Branchless Banking
UBL OMNI – Branchless Banking ■ Winner of GSMA International Mobile Award 2012 for “Best Use of Mobile in Humanitarian Initiatives” and recipient of Financial UBL OMNI Commercial Launch: April 2010 Insights Innovation Award 2012, Singapore. Nominated again for No of Accounts: 1.44 Million GSMA Mobil
Slide 18: Financial ratios – Consolidated (1/3)
Financial ratios – Consolidated (1/3) DuPont Full Year Q T D ( A n n u a liz e d ) 2010 2011 2012 2013 Dec-13 Mar-14 Spread (Standalone) 1 5.5% 5.6% 4.7% 4.0% 4.3% 3.9% Net Interest Margin (Standalone) 2 7.0% 7.2% 6.4% 5.4% 5.7% 5.1% Non Interest Yield 3 1.6% 1.7% 2.2% 2.0% 2.0% 2.1% Admin Exp./Avg
Slide 19: Financial ratios – Consolidated (2/3)
Financial ratios – Consolidated (2/3) QTD Asset Quality Full Year ( A n n u a liz e d ) 2010 2011 2012 Dec 13 Dec-13 Mar-14 Gross NPLs / Gross Loan 12.9% 13.4% 13.6% 11.9% 11.9% 11.7% Net NPLs / Gross Loan 3.6% 2.9% 3.4% 2.2% 2.2% 2.0% Coverage Ratio 71.9% 80.1% 76.7% 84.6% 84.6% 87.6% Prov. held /
Slide 20: Financial ratios – Consolidated (3/3)
Financial ratios – Consolidated (3/3) Full Year Other Metrics Q T D ( A n n u a liz e d ) 2009 2010 2011 2012 2013 Dec-13 Mar-14 Capital Adequacy Ratio 14.0% 15.0% 14.9% 14.8% 13.3% 13.3% 13.1% Loan / Deposits 73.7% 62.8% 57.5% 55.0% 50.0% 50.0% 48.0% Net Loans / Assets 56.5% 47.1% 42.2% 40.1% 38.3%
Slide 21: Quarterly Trend Analysis
Quarterly Trend Analysis Bank Level (Stand Alone) 21
Slide 22: Profit before Tax
Profit before Tax 8.4 8.7 7.8 8.0 7.5 7.2 7.2 7.1 7.3 6.5 6.5 6.4 Rs Bn 6.6 6.0 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 Q2 13 Q3 13 Q4 13 Q1 14 22
Slide 23: Profit after Tax
Profit after Tax 6.0 5.7 5.5 5.2 4.9 5.0 4.7 4.7 4.5 4.4 4.3 4.2 Rs Bn 4.5 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 Q2 13 Q3 13 Q4 13 Q1 14 23
Slide 24: Deposits
Deposits 900 847 850 828 800 773 752 750 685 698 703 Rs Bn 700 653 650 613 614 594 600 557 529 550 500 Mar'11Jun'11Sep'11Dec'11Mar'12Jun'12Sep'12Dec'12Mar'13Jun'13Sep'13Dec'13Mar'14 24
Slide 25: Net Advances
Net Advances 399 391 387 377 375 369 364 363 363 358 355 352 Rs Bn 351 345 339 334 334 326 325 327 315 Mar'11Jun'11Sep'11Dec'11Mar'12Jun'12Sep'12Dec'12Mar'13Jun'13Sep'13Dec'13Mar'14 25
Slide 26: Net Interest Income
Net Interest Income 11.0 10.6 10.5 10.3 10.2 9.9 10.0 9.8 9.8 9.6 9.6 Rs Bn 9.5 9.4 9.5 9.2 9.0 9.0 8.8 8.5 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 26
Slide 27: Total Provision
Total Provision 3.0 2.6 2.3 2.4 1.9 1.6 1.8 1.0 1.1 Rs Bn 1.2 0.8 0.7 0.8 0.5 0.6 0.3 0.2 (0.0) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 (0.6) -0.1 27
Slide 28: Non Fund Income
Non Fund Income 6.0 5.5 5.1 5.3 4.8 4.9 4.6 4.6 4.1 4.0 3.9 Rs Bn 3.8 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 Q2 13 Q3 13 Q4 13 Q1 14 28
Slide 29: Gross Revenue
Gross Revenue 16.5 15.4 15.4 15.6 14.9 14.7 14.1 Rs Bn 13.8 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 Q2 13 Q3 13 Q4 13 Q1 14 29
Slide 30: Administrative Expenses
Administrative Expenses 7.3 6.9 6.9 6.9 6.5 6.5 6.5 6.2 6.2 6.1 5.8 Rs Bn 6.1 5.5 5.7 5.3 5.0 5.0 5.0 4.7 4.9 4.5 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 30
Slide 31: which contain words or phrases such as ‘will’, ‘would’, ‘indicating’ expected to’ ‘forward-looking statements’.
The information contained herein reflects our latest business statement as at March 31, 2014. 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 32: Thank You
_@BL UNITED BANK oo Thank You Gai 32