United Bank Limited · PSX:UBL
United Bank — H1 2012 Earnings Presentation
30 slides from United Bank's earnings presentation, Jul 18, 2012
Slide 1: United Bank Limited Performance Review June 2012
United Bank Limited Performance Review June 2012 July 18, 2012 Paris 1
Slide 2: Key Highlights
Keyy Highlights g g • Standalone PAT up 39% YoY to Rs 9.3 bn. Consolidated PAT up 47% YoY to Rs 9.4 bn • Net interest income down 1% to Rs 19.2 bn YoY o NII reduced YoY due to the lower rate environment, higher investment in Mutual funds and increase in minimum PLS saving deposits rate from 5% to 6%
Slide 3: Key Highlights
Keyy Highlights g g • Provisions down YoY by 70% to Rs 1.5 bn o NCL ratio improved to 0.8% in HY’12 compared to 2.9% in HY’11 • Administrative expenses up by 16% YoY o Mainly due to full impact of additional branches opened in H2’11, core bankingg software implementation, p , OMNI expansion p and ru
Slide 4: Income Statement - Standalone
Income Statement - Standalone PKR Bn HY'12 HY'11 Var % Q2'12 Q1'12 Var % Interest Earned 36.26 34.08 6% 18.56 17.70 5% Interest Expensed (17.05) (14.75) -16% (8.95) (8.10) -11% Net Interest Income 19.21 19.33 -1% 9.61 9.60 0% Non Interest Income 7.68 5.90 30% 3.59 4.09 -12% Total Revenue 26.89 25.23
Slide 5: Income Statement - Consolidated
Income Statement - Consolidated PKR Bn HY'12 HY'11 Var % Q2'12 Q1'12 Var % Interest Earned 36.96 34.51 7% 18.94 18.01 5% Interest Expensed (17.29) (14.85) -16% (9.08) (8.21) -11% Net Interest Income 19.66 19.66 0% 9.86 9.80 1% N IInterest Non t t Income I 8 32 8.32 6 06 6.06 37% 3 95 3.95 4 37 4.37
Slide 6: Share Info
Share Info Trends ‐ KSE 100 Index & UBL's Share Price Thousands Book value per share - Standalone 95 15 100 70 Cons. Equity Jun’12 – Rs 90 Bn 81 13 85 62 Cons. BV ‐ Rs 73.2 per share Rs. Bn hare Book Value ‐ R Book value per sh 67 11 70 54 53 8 55 46 Max 2012 : 89.94 Min 2012 : 52.65 39 6 40 38 Late
Slide 7: Key Ratios - Bank
Key y Ratios - Bank Balance Sheet Ratios Dec-11 Jun'12 Mar'12 Adva nces / Depos i ts 57% 56% 61% As s et Qua l i ty 14.0% 13.7% 15.4% Covera ge 80% 77% 70% Financial Ratios HY'12 HY'11 Q2'12 Q1'12 Yi el d on P. Adva nces 12.1% 13.0% 12.2% 12.1% Cos t of Depos i ts 4.4% 4.3% 4.5% 4.3% N t Interes Net
Slide 8: Deposits Structure (Bank level)
Deposits p Structure ((Bank level)) Cost of Deposits Deposits ‐ Bank Cost of Deposits Dec'11 Jun'12 6.0% PE - PE - Bank Rs.Bn COF% Rs.Bn COF% 5.0% Domestic deposits 495 4.8% 547 4.7% 4.0% International deposits 118 2.3% 138 3.1% 3.0% Total Bank 613 4.3% 685 4.4% 2.0% 1.0% International $ 1,313 2.3%
Slide 9: Net Advances
Net Advances % Net Advances - Rs. Bn Dec'11 Jun'12 Change Corporate Bank 155.2 177.4 +14% Commercial * 69 0 69.0 73 5 73.5 +7% Consumer 11.3 10.1 -10% Others 6.0 8.0 34% Total Domestic 241 4 241.4 269 1 269.1 11% International 83.9 88.6 +6% Bank 325.3 357.7 10% I t International ti l US$ M Mn 933 0
Slide 10: International Advances
International Advances By Geography By Business - UAE Yemen, 12% Qatar, 11% NewYork, 0% Bahrain, 11% Corporate, 70% EPZ, 0% Others, 11% UAE, 66% Consumer, 19% Personal Others, 2% Abu Sharjah, loan, 12% Dhabi, 10% 29% Baitna, 86% Dubai, Dubai 61% 10
Slide 11: Spread Analysis - Bank Level
Spread p Analysis y – Bank Level Bank HY 2012 HY 2011 Avg.Yield Avg.Yield Rs Bn PE AVG IE /Cost PE AVG IE /Cost Avg KIBOR - 3M 11.9% 13.5% Interest Earning Assets Performing Advances 328 308 18.6 12.1% 308 299 19.3 13.0% Corporate 159 152 10.0 13.3% 135 135 9.3 14.0% Commercial 17 18 1.4 15.2% 23 21
Slide 12: Concentration of Advances – Standalone
Concentration of Advances – Standalone Standalone--Jun’12 Trading, Airlines, 1% 4% Agribusiness, 13% Automobile & Trans. Equip., 1% Textile, 14% Telecom, 2% Cement, 1% Chemical h i l and d pharmaceuticals, 2% Contractor / Sugar, 3% Constructor, 5% Fertilizer dealers, 1% Financials, 3% Prod. & Transm
Slide 13: Non Markup / Return / Interest Income
Non Markup / Return / Interest Income Non Fund Income - Rs. Mn HY'12 HY'11 Var % Q2'12 Q1'12 Var % Fee, commission and brokerage income 3,965 3,280 21% 2,098 1,866 12% Dividend income 1 443 1,443 322 348% 633 810 -22% Income from dealing in foreign currencies 1,044 1,076 -3% 476 568 -16% Gain / (los
Slide 14: Fee Commission and Brokerage Income
Fee Commission and Brokerage Income Fee Commission Income - Rs. Mn HY'12 HY'11 Var % Q2'12 Q1'12 Var % Commission on trade 816 771 6% 386 430 -10% Commission on consumer loan 408 449 -9% 192 217 -11% Commission on remittance / uniremote 524 413 27% 278 246 13% Corporate service chgs/finance fee/FI i
Slide 15: Administrative Expenses
Administrative Expenses p Administrative Expenses - Rs. Mn HY'12 HY'11 Var % Q2'12 Q1'12 Var % Personnel Cost 4,847 4,157 -17% 2,419 2,429 0% Premises Cost 1,632 1,536 -6% 868 764 -14% O t Outsourced d service i charges h 978 707 -38% 509 468 -9% including sales commission Advertisement and publicit
Slide 16: Financial ratios – Consolidated (1/3)
Financial ratios – Consolidated ((1/3)) YTD Q T D ( A n n u a liz e d ) DuPont 2009 2010 2011 Jun'12* Dec-11 Mar-12 Jun-12 S d (St) 1 Spread 5 5% 5.5% 5 5% 5.5% 5 6% 5.6% 4 9% 4.9% 5 3% 5.3% 5 0% 5.0% 4 8% 4.8% 2 Net Interest Margin (St) 6.9% 7.0% 7.2% 6.6% 6.9% 6.7% 6.6% 3 Non Interest Yield 2.1% 1
Slide 17: Financial ratios – Consolidated (2/3)
Financial ratios – Consolidated ((2/3)) Asset Quality YTD Q T D ( A n n u a liz e d ) 2009 2010 2011 Jun'12* De c-11 Mar-12 Jun-12 Gross NPLs / Gross Loan 10 3% 10.3% 12 9% 12.9% 13 4% 13.4% 13 2% 13.2% 13 4% 13.4% 14 9% 14.9% 13 2% 13.2% Net NPLs / Gross Loan 3.0% 3.6% 2.7% 3.1% 2.7% 4.5% 3.1% Cove
Slide 18: Financial ratios – Consolidated (3/3)
Financial ratios – Consolidated ((3/3)) Yearly Q T D ( A n n u a liz e d ) Other Metrics 2009 2010 2011 Jun'12* De c-11 Mar-12 Jun-12 Capital Adequacy Ratio 14 0% 15.0% 14.0% 15 0% 14.9% 14 9% 14 5% 14.5% 14 9% 14.9% 13 7% 13.7% 14 5% 14.5% Tier-I CAR 9.5% 10.4% 10.6% 10.1% 10.6% 9.6% 10.1% Loan / D
Slide 19: Quarterly Trend Analysis - Bank Level
Quarterly y Trend Analysis y Bank Level 19
Slide 20: Profit before Tax
Profit before Tax 8.5 75 7.5 72 7.2 7.3 6.5 6.6 61 6.1 5.0 5.2 Rs Bn 4.8 4.9 4.3 4.3 4.4 3.7 25 2.5 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 20
Slide 21: Profit after Tax
Profit after Tax 5.5 4.9 4.5 4.5 4.7 4.2 39 3.9 34 3.4 3.3 3.1 Rs Bn 2.8 2.9 3.1 2.4 2.3 15 1.5 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 21
Slide 22: Deposits
Deposits p 725 685 675 613 614 625 594 551 557 575 Rs Bn 529 525 500 491 475 451 425 Mar'10 Jun'10 Sep'10 Dec'10 Mar'11 Jun'11 Sep'11 Dec'11 Mar'12 Jun'12 22
Slide 23: Net Advances
Net Advances 365 358 354 345 343 343 335 334 334 334 Rs Bn 331 332 326 321 325 310 Mar'10 Jun'10 Sep'10 Dec'10 Mar'11 Jun'11 Sep'11 Dec'11 Mar'12 Jun'12 23
Slide 24: Net Interest Income
Net Interest Income 11.0 10.3 10.4 10.2 9.8 96 9.6 96 9.6 9.8 Rs Bn 9.1 9.2 9.2 R 86 8.6 8.6 8.4 8.2 80 8.0 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 24
Slide 25: Total Provision
Total Provision 3.0 2.6 23 2.3 2.4 2.1 2.1 1.9 1.9 1.6 1.8 Rs Bn 1.0 1.2 0.8 0.7 0.6 - Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 25
Slide 26: Non Fund Income
Non Fund Income 5.0 41 4.1 4.2 3.8 3.6 34 3.4 3.0 3.0 28 2.8 29 2.9 Rs Bn 2.6 2.4 2.4 2.6 1.8 1.0 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 26
Slide 27: Gross Revenue
Gross Revenue 14.5 13 6 13.7 13.6 13.4 13.2 13.5 13.0 12.2 12 5 12.5 11 9 11.9 Rs Bn 11.2 11.5 10.6 10.7 10.5 9.5 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 27
Slide 28: Administrative Expenses
Administrative Expenses p 62 6.2 5.8 5.7 5.5 50 5.0 5.2 5.0 5.0 4.9 Rs Bn 4.7 4.8 4.4 4.5 4.1 4.3 3.8 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 28
Slide 29: The e information o a o co contained
Thee information o a o co contained a ed herein e e reflects e ec s ou our latest a es bus business ess sstatement a e e as aat June 30, 2012. Except the historical information contained herein, statements in this Release which contain words or phrases such as ‘will’, ‘would’, ‘indicating’ expected
Slide 30: Thank You
_ ©BL UNITED BANK oo Thank You ©BL 30