Union Bank Of Colombo Plc · CSELK:UBC.N0000
Union Bank Of Colombo — FY2017 Earnings Presentation
18 slides from Union Bank Of Colombo's earnings presentation, 2018
Slide 1: Investor Presentation - 4Q 2017
Investor Presentation - 4Q 2017 1
Slide 2: Vision
Vision “Our Vision is to be the innovator of Banking Solutions to the wider Corporate, SME and Retail Segments and to be their Bank of choice, through professional and empowered people”. 2 2
Slide 3: Mission
Mission To our customers we provide the means of economic upliftment through customized banking and financial services. To our shareholders we provide a return on their investment above industry norm. To our staff we are a learning and innovative organization providing opportunities for faster
Slide 4: Key Company Milestones
Key Company Milestones 1995-2010 2011-2013 2014-2016 2017 onwards Established as the 8th Listed in the CSE, TPG through its affiliate UB Brand was ranked 6 Indigenous Commercial Highest oversubscribed Culture Finance Holding notches above in the Bank IPO strikes landmark deal with Top 100 Brands lis
Slide 5: Overview - Bank
Overview - Bank “The year 2017 ended a period of transformation and the implementation of a 3 year strategic plan that resulted in significant enhancements to the business model resulting in transformational growth in the Bank’s performance during these 3 years. Our strategic aim is to be amongst th
Slide 6: Bank’s Performance
Bank’s Performance • Net Interest Income up 22% YoY to Rs. 3,046 Mn • Net Fee and Commission Income up 17% YoY to Rs. 673 Mn • Total Operating Income grew by 17% YoY to Rs.4,376 Mn • Results from Operating Activities grew by 36% YoY to Rs. 782 Mn • Profit before Tax and VAT grew by 28% YoY to Rs. 83
Slide 7: Bank’s Performance Cont…
Bank’s Performance Cont… • Despite the volatile macro environment initiatives, implemented by the Bank the Bank performed exceptionally well in following the capital infusion made in the 2017 resulting in a 35.6% increase in latter part of 2014. results from operating activities to Rs. 782Mn in comp
Slide 8: Financial Performance – Bank (YTD)
Financial Performance – Bank (YTD) LKR Mn 2017 2016 Growth Net interest income 3,046 2,507 539 22% Net fee and commission income 673 575 98 17% Net Trading and other Operating income 656 656 1 0% Total operating income 4,376 3,737 638 17% Operating cost 3,345 3,009 336 11% Impairment Charges 249 152
Slide 9: Revenue Generation - Bank
Revenue Generation - Bank Net Interest Income (Rs. Mn) Non Interest Income (Rs. Mn) • Net Interest Income (NII) rose to Rs.3,046 Mn for the period. Rise in NII was mainly driven by the balance sheet growth of the bank. NIM is at 2.9% • Net Fee and Commission Income grew to Rs. 673Mn, recording a 17%
Slide 10: Statement of Financial Position - Bank
Statement of Financial Position - Bank LKR Mn. Dec 2017 Dec 2016 Growth Treasury Assets 35,279 28,592 6,687 23% Loans & Advances 70,578 55,438 15,140 27% Cash & Balance with CB 8,483 4,994 3,489 70% Other Assets 4,667 3,984 683 17% Total Assets 119,007 93,009 25,999 28% Borrowings 28,820 22,421 6,39
Slide 11: Composition of Balance Sheet
Composition of Balance Sheet Assets Composition Segmental Loan Composition LOAN COMPOSITION Loans – 59 % Retail 18% Assets Corporate 44% Treasury Assets – 30% SME 38% Funding Composition Deposits – 59% In line with the Bank’s strategy, Retail assets Funding composition have increased to 18% from 11%
Slide 12: Loan Growth & Capital Adequacy
Loan Growth & Capital Adequacy Loans and Receivables (Rs. Mn) Net Non Performing Asset Ratio 2.30% 2.00% 1.90% 1.90% 1.78% 1.76% 1.60% 1.66% 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 Capital Adequacy Ratio • Loans and Receivables to customers grew to Rs. Capital Adequacy Ratio % 71Bn, a 27% gr
Slide 13: Deposit Growth and CASA
Deposit Growth and CASA Customer Deposits (Rs. Mn) CASA (Rs. Mn) • Customer Deposits grew by 36% to Rs. 70Bn YTD. • CASA balance grew by Rs. 3.9Bn (+32%) to Rs. 16.3Bn YTD, supported by initiatives; offsite ATM network, Debit Cards, sales force & enhanced brand awareness. • CASA Mix is at 23% 13
Slide 14: Key Indicators - Bank
Key Indicators - Bank Dec 2017 Dec 2016 Return on Assets (After Tax), % 0.4% 0.6% Return on Equity (After Tax), % 2.6% 2.7% NIM % 2.9% 3.1% NPL Ratio % ( Gross) 2.7% 2.4% NPL Ratio % ( net) 1.8% 1.6% Dec 2017 Dec 2016 Regulatory Capital Ratios % Common Equity Tier 1 Capital Ratio Mi ni mum Requi rem
Slide 15: Group’s Performance
Group’s Performance • Net Interest Income increased 23% YoY to Rs. 3,702Mn • Net Fee and Commission Income up 11% YoY to Rs. 827 Mn • Total Operating Income grew by 15% YoY to Rs.5,261Mn • Results from Operating Activities grew by 22% YoY to Rs. 1,026 Mn • Profit before Tax and VAT grew by 22% YoY t
Slide 16: Financial Performance – Group (YTD)
Financial Performance – Group (YTD) LKR Mn 2017 2016 Growth Net interest income 3,702 3,020 681 23% Net fee and commission income 827 742 85 11% Net Trading and other Operating income 733 816 (83) -10% Total operating income 5,261 4,578 683 15% Operating cost 3,858 3,487 (371) -11% Impairment Charge
Slide 17: Statement of Financial Position - Group
Statement of Financial Position - Group Dec-17 Dec-16 Growth Treasury Assets 34,945 28,039 6,906 25% Loans & Advances 79,221 62,932 16,289 26% Cash & Balance with CB 8,843 5,205 3,638 70% Other Assets 4,592 4,356 235 5% Total Assets 127,601 100,533 27,068 27% Borrowings 30,490 23,721 6,769 29% Custo
Slide 18: Corporate Information
Corporate Information Board of Directors Legal Form Name Title A Public Limited Liability Company incorporated in Sri Atul Malik Chairman Lanka under the Companies Act No. 17 of 1982. Re- Priyantha Fernando Deputy Chairman/ Senior Director registered under the Companies Act No. 7 of 2007. Listed Ind