United Bank For Africa Plc · NSENG:UBA
United Bank For Africa — FY2015 Earnings Presentation
22 slides from United Bank For Africa's earnings presentation, Mar 17, 2016
Slide 1: Audited 2015 Full Year Results Presentation
Audited 2015 Full Year Results Presentation
Slide 2: Disclaimer and Note of Caution
Disclaimer and Note of Caution From time to time, the Bank makes written and/or oral forward-looking statements. These are included in this presentation and in other communications. In addition, representatives of the Bank may make forward-looking statements orally to analysts, investors, the media
Slide 3: Presentation Outline
Presentation Outline Evolution of UBA Macroeconomic Update Regulatory environment 2015 Nine Months Performance Review Review of 2015FY Performance Guidance 2016 Earnings Guidance Questions 2015 Full Year Results Presentation ::: March 2016 3
Slide 4: Evolution of UBA Plc
Evolution of UBA Plc Acquired majority interest in two banks based in B/Faso and Benin Successfully raised N20bn debt capital UBA merged with Standard Commenced operations in Won Financial Times’ Trust Bank some African countries Bankers’ Awards for French & British Standard Trust Continental Trust
Slide 5: UBA Profile at a Glance
UBA Profile at a Glance A truly Pan-African Bank, with operations across 19 key un(der)banked African markets A unique and scalable platform to take full advantage of growth opportunities in all sectors of the African economy o Third largest bank in Nigeria (the biggest economy), with an estimated c
Slide 6: Operating Environment…a mix of global and domestic challenges
Operating Environment…a mix of global and domestic challenges Economic Growth: Low commodity prices weigh down growth prospects YoY Change in Price (USD) o The International Monetary Fund (IMF) estimated global economy to have grown 3.1% in 2015 (30bps behind 2014 growth feat) but expects recovery t
Slide 7: Policy and regulatory environment
Policy and regulatory environment Nigeria Implications o Sterilized liquidity from the system, thus leading to reduced deposit and o Implementation of Treasury Single Accounts, with MDAs funds overall banking sector balance sheet. This policy has intensified moved to Consolidated Revenue Fund with t
Slide 8: 2015 Full Year Results Snapshot: Consolidating Gains
2015 Full Year Results Snapshot ::: Consolidating Gains 31-Dec-15 31-Dec-14 % Change Gross Earnings 314,830 286,624 +9.8% COMPREHENSIVE Net Interest Income 137,939 106,133 +30.0% INCOME & PROFIT Net Operating Income 205,190 185,877 +10.4% TREND (N’million) Operating Expenses (136,626) (129,686) +5.4
Slide 9: Gross earnings trend and split
2015 Full Year Results Snapshot ::: Consolidating Gains Gross earnings Trend (N’billion) Gross earnings by source Interest Income Non-Interest Income 13% CAGR 315 287 265 31.8% 30.0% 31.0% 26.0% 220 68.2% 70.0% 69.0% 74.0% 2012FY 2013FY 2014FY 2015FY 2012FY 2013FY 2014FY 2015FY Gross earnings split
Slide 10: Operating income, profit before tax and returns
2015 Full Year Results Snapshot ::: Consolidating Gains Operating Income (N’billion) Profit Before Tax (N’billion) 10% CAGR 10% CAGR 69 205 186 56 56 164 52 155 2012FY 2013FY 2014FY 2015FY 2012FY 2013FY 2014FY 2015FY Return on Average Equity/Assets (%) 2014FY 2015FY • Steady 10% CAGR in operating in
Slide 11: Net interest margin, cost of funds, cost-to-income
2015 Full Year Results Snapshot ::: Consolidating Gains Net Interest Margin (%) Cost of Funds (%) 6.3% 4.0% 5.9% 6.0% 3.8% 5.8% 3.6% 3.3% 2012FY 2013FY 2014FY 2015FY 2012FY 2013FY 2014FY 2015FY Cost-to-Income Ratio (%) • Tight monetary policies in a number of African economies resulted into higher f
Slide 12: Total assets and funding structure
2015 Full Year Results Snapshot ::: Consolidating Gains Total Assets (N’trillion) Funding Structure 2.8 2.8 2.6 9% 10% 12% 3% 3% 4% 2% 2.2 7% 8% Deposits Debt Other Liabilities Equity 84% 81% 78% 2012FY 2013FY 2014FY 2015FY 2013FY 2014FY 2015FY Composition of Total Asset Portfolio PPE, 3.2% Others ,
Slide 13: Loan book and NPL ratio
2015 Full Year Results Snapshot ::: Consolidating Gains Total Loan Book (N’trillion) NPL Ratio (%) 1.1 1.9% 1.1 1.7% 1.0 1.6% 0.7 1.2% 2012FY 2013FY 2014FY 2015FY 2012FY 2013FY 2014FY 2015FY 10% 5% Const. & Real Others 5% Estate Agric 2% 4% Const. & Real Estate 10% Commerce 14% Oil & Gas 15% General
Slide 14: Equity, liquidity and capital adequacy ratios
2015 Full Year Results Snapshot ::: Consolidating Gains Equity-to-Total Assets Ratio Liquidity Ratio (%) 12% 67% 63% 53% 10% 9% 8% 45% UBA Liquidity Ratio Regulatory Requirement 2012FY 2013FY 2014FY 2015FY 2012FY 2013FY 2014FY 2015FY Capital Adequacy Ratio (%) 24% UBA BASEL II Capital Ratio o Strate
Slide 15: UBA Africa (ex-Nigeria)
2015 Full Year Results Snapshot ::: UBA Africa (ex-Nigeria) Cost-to-Income Ratio (%) Pre-Tax Return on Average Assets (%) 79.8% 3.0% 2.7% 69.7% 63.3% 65.0% 2.0% 1.6% 2012FY 2013FY 2014FY 2015FY 2012FY 2013FY 2014FY 2015FY Pre-Tax Return on Average Equity (%) 28.4% 26.5% o African subsidiaries have p
Slide 16: UBA Africa (ex-Nigeria): deposits, loans, assets
2015 Full Year Results Snapshot ::: UBA Africa (ex-Nigeria) Deposit Base (N’Billion) Loan Book (N’Billion) 455 214 187 357 297 133 225 102 2012FY 2013FY 2014FY 2015FY 2012FY 2013FY 2014FY 2015FY Total Assets (N’Billion) 656 o We continue to grow deposits in double digits, leveraging 594 on technolog
Slide 17: Review of 2015 Guidance
Review of 2015 Guidance Review of 2015 Guidance Vs. Actual Performance 2015FY 2015FY Headlines 2014FY Review Guidance Actual Net Interest Margin 5.9% ≈6.0% 6.3% Outperform Cost-to-Income Ratio 69.8% <65.0% 66.7% Underperform Cost of Risk 0.7% ≈1% 0.5% In-line Non-Performing Loan Ratio 1.6% ≈2% 1.7%
Slide 18: Year-end Outlook
2016FY Guidance Burkina Faso Senegal Benin Chad Guinea Ivory Nigeria Uganda Sierra Coast Leone Year-end Outlook Liberia Ghana Cameroon Kenya Gabon DR Congo Tanzania Congo Zambia Mozambique 2015 Full Year Results Presentation ::: March 2016 18
Slide 19: The Four Tactical Strategic Thrusts
The Four Tactical Strategic Thrusts 1 Earnings Optimization 2 Cost Efficiency o Achieve higher yields on assets, through (right) pricing; new o Improve efficiency of centralized operations mix of LCY/FCY assets, and asset allocation o Continuous migration of customers to low cost o Increase transact
Slide 20: 2016 Earnings Guidance
2016 Earnings Guidance Headlines 2015FY Actual 2016FY Guidance Net Interest Margin 6.3% >6.3% Cost-to-Income Ratio 66.7% ≈65.0% Cost of Risk 0.5% ≈1% Non-Performing Loan Ratio 1.7% <2.5 % Net Customer Loan Growth -3.3% 10% - 15% Customer Deposit Growth -4.1% 10% - 15% Return on Average Asset 2.2% ≈2
Slide 21: Key Takeaways
Key Takeaways o We duly acknowledge the challenging operating environment but we are cautiously optimistic that the current challenges will open up new opportunities in the near and medium term, and we are appropriately positioning our business to take full advantage of emerging opportunities. o Our
Slide 22: Questions & Answers
Conclusion Questions & Answers 2015 Full Year Results Presentation ::: March 2016 22
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