United Bank Limited · PSX:UBL
United Bank — H1 2008 Earnings Presentation
31 slides from United Bank's earnings presentation, Jul 28, 2008
Slide 1: United Bank Limited Performance Review (Consolidated) 1H 2008
United Bank Limited Performance Review (Consolidated) 1H 2008 July 28, 2008
Slide 2: Key Highlights
Key Highlights Profitability • PBT up 1% y-o-y at Rs. 9.2B • Non Interest Income up 47%; strong fee income and derivatives gains • Net Interest income up 11%; significant increase in advances • Provision charge Rs 2.5B of which impact of FSV withdrawal - Rs 790M • Workers’ Welfare Fund (WWF), SBP pe
Slide 3: Summary
Summary Jun 2008 Dec 2007 Change Assets (PKR bn) 592 547 +8% Advances (PKR bn) 339 308 +10% Market Share-Adv- DOM 9.5% 9.4% Deposits (PKR bn) 474 412 +15% Market Share-Deposits- DOM 9.6% 9.1% Branches 1,100 1,095 +5 Online Branches 821 802 +19 ATMs 336 326 +10 ROAA 2.1% 1.9% ROAE 24% 23% Credit Rati
Slide 4: Share Info
Share Info Jun 2008 Dec 2007 EPS (Rs/share-annual.) 11.5 8.9 BV/share (Rs/share) 50.6 47.3 Price* - (Rs /share) 65.4 162.9* P/E 5.7x 18.4x P/BV 1.3x 3.4x # of shares 1,012M 1,012M * Share price (Dec'07) after announcement of results J un'08 pric e a t 18 J uly'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 % 6 month 6 month % Jun'08 Mar'08 Change Jun'08 Jun'07 Change Net Interest Income 6.99 6.56 +7% 13.55 12.22 +11% Non Interest Income 3.22 3.36 -4% 6.58 4.46 +47% Operating Revenue 10.20 9.92 +3% 20.12 16.68 +21% Operating Expense (3.94) (3.74) +5% (7.69) (6.68) +15%
Slide 6: Balance Sheet (PKR bn)
Balance Sheet (PKR bn) % Mix- Mix- Jun'08 Dec'07 Change Jun'08 Dec'07 Cash & bank balances 93.4 68.6 +36% 16% 13% Investments 111.1 114.0 -3% 19% 21% Advances 338.7 308.3 +10% 57% 56% Fixed assets 20.0 19.0 +5% 3% 3% Total Assets 592.2 546.8 +8% 100% 100% Deposits 474.4 412.1 +15% 88% 83% Borrowings
Slide 7: Financial Ratios
Financial Ratios QTD QTD 6 month 6 month Full year Jun'08 Mar'08 Jun'08 Jun'07 Dec'07 Loan/Deposits 71.4% 78.7% 71.4% 69.4% 74.8% ROAE 21.7% 26.2% 23.6% 32.8% 22.8% ROAA 1.9% 2.3% 2.1% 2.4% 1.9% Cost/Income Ratio* 44.5% 42.9% 43.7% 41.9% 50.9% Gross NPLs/Gross Advances 6.5% 6.8% 6.5% 6.1% 6.9% Net N
Slide 8: Deposit Structure
Deposit Structure Deposit Mix (YTD Jun 08) - Bank (Parent Company) Cost of Deposits QTD Mar'08 QTD Jun'08 Other Deposits – PKR 11bn Period Avg.Yield Period Avg.Yield Contribution 2% end Rs B /Cost end Rs B /Cost Cost 0.0% Fixed Deposits – PKR 163bn Saving deposits 151 3.1% 161 3.9% Contribution 35%
Slide 9: Advances by Business
Advances by Business Advances by Business 2006 2007 Jun-08 160 144 140 131 120 104 100 Rs B 72 80 64 60 55 57 49 47 44 43 39 40 23 17 20 13 - Corporat e Bank Commercial Bank Consumer Bank Overseas Others (incl subsidiaries) % Net Advances Jun'08 Dec'07 Change Mix 08 Yield 08 Yield 07 Corporate Bank
Slide 10: Consumer Advances by Product
Consumer Advances by Product 2006 2007 Jun-08 Yield Jun 08 23 23% 25% 24 22% 21 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 2 5% 4 0 0% Drive Address Credit Card Cashline Businessline Money % Jun'08 Dec'07 Change Mix 08 Yield 08 Yield 07 Drive 20.9 23.2 -10% 49% 13.5% 12.6%
Slide 11: QTD – Net Interest Income (Bank Level)
QTD – Net Interest Income (Bank Level) QTD Mar'08 QTD Jun'08 Interest Interest Average incom e / Avg.Yield Average incom e / Avg.Yield Balances (expense) /Cost Balances (expense) /Cost Interest Earning Assets Performing Advances 299,840 8,183 10.9% 326,697 9,353 11.5% Domestic 234,453 6,986 12.0% 25
Slide 12: Spread Analysis (Bank Level)
Spread Analysis (Bank Level) YTD June 2007 YTD June 2008 Interest Interest Average incom e / Avg.Yield Average incom e / Avg.Yield Balances (expense) /Cost Balances (expense) /Cost Interest Earning Assets Performing Advances 261,982 14,678 11.3% 314,605 17,527 11.2% Domestic 206,514 12,607 12.3% 247
Slide 13: Concentration of Advances
Concentration of Advances A uto mo bile and transpo rtatio n equipment, 2.6% Financial, 2.3% Chemical and P harmaceuticals, Teleco m, 2.5% 1.2% Others, 15.4% Fertilizer , 2.5% Staff lo ans , 1.2% A irline/ A viatio n, 2.0% Fo o d industries, 1.7% Co ntracto rs, 1.6% A gribusiness, 6.3% Textile, 17.6
Slide 14: Non Interest Income (PKR mm)
Non Interest Income (PKR mm) QTD QTD % 6 month 6 month % Full year Jun'08 Mar'08 Change Jun 08 Jun 07 Change Dec'07 Commission on consumer loan 396 386 +3% 782 750 +4% 1,478 Minimum balance charges 160 113 +41% 273 259 +5% 518 Commission on trade 332 318 +4% 650 495 +31% 1,022 Commission on remittan
Slide 15: Operating Expenses (PKR mm)
Operating Expenses (PKR mm) QTD QTD % 6 month 6 month % Full year Jun'08 Mar'08 Change Jun 08 Jun 07 Change Dec'07 Personnel cost 1,636 1,671 -2% 3,307 3,132 +6% 6,190 Premises cost 578 510 +13% 1,088 635 +71% 1,491 Outsourced serv.charges incl. sales comm 399 347 +15% 746 638 +17% 1,293 Advertiseme
Slide 16: E-Banking
E-Banking E-Banking Jun-08 Dec-07 Dec-06 % Change # of ATMs 336 326 210 +55% # of Transactions (M) 6.0 9.5 5.9 +60% Average transactions per day 33k 26k 16k +63% Total transaction amount (Rs B) 32 48 29 +65% Average transaction size (Rs 000) 5.3 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 YTD Q T D ( A n n u a liz e d ) DuPont . 2005 2006 2007 Jun 08 Mar-08 Jun-08 1 Net Interest Yield 4.5% 5.4% 5.0% 4.8% 4.8% 4.9% 2 Net Interest Margin 5.4% 6.4% 6.1% 5.8% 5.7% 5.9% 3 Non Interest Yield 1.7% 1.8% 2.0% 2.3% 2.4% 2.2% Operating Exp. / Assets 2.6% 2.9% 2.
Slide 18: Financial Ratios (2 of 3)
Financial Ratios (2 of 3) Yearly YTD Q T D ( A n n u a liz e d ) Asset Quality . 2005 2006 2007 Jun 08 Mar-08 Jun-08 Gross NPLs / Gross Loan 7.7% 6.2% 6.9% 6.5% 6.8% 6.5% Net NPLs / Gross Loan 1.7% 1.6% 1.9% 1.8% 2.0% 1.8% Coverage Ratio 84.8% 82.6% 77.9% 78.0% 76.9% 78.0% Prov. held / Gross loan 6.
Slide 19: Financial Ratios (3 of 3)
Financial Ratios (3 of 3) Yearly YTD Q T D ( A n n u a liz e d ) Other Metrics . 2005 2006 2007 Jun 08 Mar-08 Jun-08 Capital Adequacy Ratio 10.7% 12.2% 12.4% 12.7% 13.1% 12.7% Tier-I CAR 7.7% 8.9% 8.8% 8.1% 8.3% 8.1% Loan / Deposits 70.9% 74.1% 74.8% 71.4% 78.7% 71.4% Loan / Assets 58.7% 58.4% 56.4%
Slide 20: Quarterly Trend Analysis
Quarterly Trend Analysis Bank Level 07/26/2008 3:22:24 PM 20
Slide 21: Profit Before Tax
Profit Before Tax 5.3 5.5 4 .6 4 .7 Before FSV/ERS/WWF 4 .5 4.7 4 .4 3 .8 4 .4 Reversal in Mar’07 3 .6 3 .4 4 .1 4 .1 3.8 of accruals in Dec’06 Rs B 3.0 Provision–PR amendment 2 .1 1. 9 FSV / others ( Rs 1.975M) 2.1 Provision–FSV ( Rs 1,829M) ERS (Rs 307M) 1.3 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 .7 2 .2 2.4 Prior period tax adj. Rs B (Rs 402M) - one-off exp. 1.9 1.5 FSV 1.3 1.3 0.8 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 07/26/2008 3:22:24 PM 22
Slide 23: Deposits
Deposits 485 466 443 403 402 408 401 381 Rs B 3 52 359 326 335 308 317 275 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 07/26/2008 3:22:24 PM 23
Slide 24: Advances
Advances 340 329 320 312 299 280 280 284 Rs B 2 52 247 256 236 235 228 200 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 07/26/2008 3:22:24 PM 24
Slide 25: Net Interest Income
Net Interest Income 7.5 6 .8 6.9 6 .4 6 .2 6 .1 6 .0 6.3 Rs B 5 .8 5 .6 5 .6 5.7 5 .2 5.1 4.5 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 07/26/2008 3:22:24 PM 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) 1.3 1.2 1.5 0 .9 0 .5 0 .5 0.8 0 .4 0 .4 0.1 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 07/26/2008 3:22:24 PM 26
Slide 27: Non-Funded Income
Non-Funded Income 3.5 3 .1 3 .0 3.0 2 .6 2 .3 2.5 Rs B 2 .2 2 .2 2 .1 2.0 1. 6 1.4 1.5 1.0 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 07/26/2008 3:22:24 PM 27
Slide 28: Total Revenue
Total Revenue 10.0 8 .5 8.8 8 .2 7 .8 7 .4 7 .5 7.6 Rs B 6 .3 6 .1 6.4 5 .8 5 .5 5.2 4.0 Jun 06 Sep 06 Dec 06 Mar 07 Jun 07 Sep 07 Dec 07 Mar 08 Jun 08 07/26/2008 3:22:24 PM 28
Slide 29: Administrative Expenses
Administrative Expenses 4.2 3 .9 3 .8 3.9 3 .5 3 .4 3 .4 3.5 3 .4 Rs B ERS (Rs 307M) WWF (Rs 203M) ERS (Rs 87M) 3.2 2 .9 2.8 2 .7 2 .7 Reversals in Mar’07 of accruals in Dec’06 2.5 Jun 06 Sep 06 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 07/26/2008 3:22:24 PM 29
Slide 30: Forward-looking statements disclaimer
The information contained herein reflects our latest business statement as at June 30, 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 07/26/2008 3:22:24 PM 31