United Bank Limited · PSX:UBL
United Bank — Q3 2014 Earnings Presentation
32 slides from United Bank's earnings presentation, September 2014
Slide 1: United Bank Limited Performance Review September 2014
United Bank Limited Performance Review September 2014 1
Slide 2: Key Highlights
Key Highlights Standalone PAT up 23% YoY to Rs 15.8B. Consolidated PAT up 22% YoY to Rs 17.2B Net Interest income up by 17% YoY to Rs 32B ■ Core deposits have funded earning assets growth of 12% in nine months ■ Earnings well supported by 13% growth in domestic loan book, leading to improvement in y
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 are down by 36% YoY to Rs 1B in Sep’14 , net reversal of Rs 122M for the quarter ■ Strong cash recoveries within both domestic and International ■ FSV benefit prudently reduced from Rs 1.35 B in Dec’13 to Rs 1B
Slide 4: Strong growth momentum within retail banking – deposits grow ahead of market
Strong growth momentum within retail banking – deposits grow ahead of market ■ 8% growth in the Total and Core domestic deposit base, ahead of market growth of 6.7% ■ Current Accounts remain core focus for retail distribution – with 20% average growth ■ Increase in cost of deposits contained at 38bp
Slide 5: Income Statement - Standalone
Income Statement - Standalone 5
Slide 6: Income Statement – Consolidated
Income Statement – Consolidated 6
Slide 7: Share Info
Share Info Trends – KSETrends 100- KSE Index and UBL’s Share Price Book Value Per Share 100 Index & UBL's Share Price Thousands Book value per share - Standalone 250 32 115 90 208 27 Cons. Equity Dec’13 – Rs 113 Bn 97 72 Book Value - Rs. Bn Cons. BV - Rs. 92.0 per share Book value per share 166 22 7
Slide 8: Key Ratios – Bank (Standalone)
Key Ratios – Bank (Standalone) Balance Sheet Ratios Dec-13 Sep-14 Adva nces / Depos i ts 50.1% 51.0% As s et Qua l i ty 12.1% 11.6% Covera ge 83.8% 81.5% Financial Ratios 9M'13 9M'14 Q2'14 Q3'14 Yi el d on P. Adva nces 9.5% 9.3% 9.7% 9.0% Cos t of Depos i ts 3.8% 4.0% 3.9% 3.9% Net Interes t Ma rgi
Slide 9: Deposits Structure
Deposits Structure Cost of Deposits Deposits - Bank 5.2% 4.4% 3.6% 2.8% 2.0% Q1 12 Q2 12 Q3 12 Q4 12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Domestic International Bank Total Deposit Low Cost Deposits Expensive Deposits 532 507 321 334 Dec'13 Sep'14 9
Slide 10: Net Advances Change
Net AdvancesChange Sep'14 vs Net Advances - Rs. Bn Dec'13 Sep'14 Dec'13 Corporate Bank 182 208 +14% Commodity 40 51 +27% Commercial 19 19 -4% Consumer 8 8 9% Others 12 10 -21% Total Domestic 262 296 13% International 129 122 -6% Bank 391 417 7% International US$ Mn 1,227 1,186 -3% 222 208 Dec'13 Sep
Slide 11: International Advances Sep-14
International Advances Sep-14 11
Slide 12: Spread Analysis – Bank Level
Spread Analysis – Bank Level Bank 9M' 2013 9M' 2014 Avg.Yield Avg.Yield Rs Bn PE AVG IE /Cost PE AVG IE /Cost Avg KIBOR - 3M 9.3% 10.1% Interest Earning Assets Performing Advances 343 331 23.5 9.5% 388 371 25.7 9.3% Corporate 151 155 11.8 10.2% 186 180 14.2 10.6% Commercial 18 17 1.7 13.6% 20 18 1.8
Slide 13: Concentration of Advances – Bank level (Sep’14)
Concentration of Advances – Bank level (Sep’14) 13
Slide 14: Non Fund Income
Non Fund Income YTD YTD Non Fund Income - Rs. Mn Var % Q3'14 Q2'14 Var % Sep'14 Sep'13 Fee, commission and brokerage income 8,428 7,250 16% 2,880 2,844 1% Dividend income 1,395 1,062 31% 355 365 -3% Income from dealing in foreign 2,298 1,553 48% 872 771 13% currencies Gain / (loss) on sale of securi
Slide 15: Fee Commission and Brokerage Income
Fee Commission and Brokerage Income 15
Slide 16: Administrative Expenses
_@GBL UNITED BANK u Administrative Expenses Sep'14 Sep'13 Var% Q3'14 Q2'14 Var% Administrative Expenses - Rs. Mn Personnel Cost 8403 7,841 -7% 2,760 2,820 -2%| Premises Cost 2,888 2,622 -10% 1,032 982 5%) Outsourced service charges including sales commission 2,678 2,178 23% 902 920 2% Advertisement
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: 1.59 Million GSMA Mobil
Slide 18: Financial ratios – Consolidated (1/3)
Financial ratios – Consolidated (1/3) Formulas 1. Net interest income / average assets 4. Risk weighted assets 2. Net interest income / average earning assets 3. Non interest income / average assets 18
Slide 19: Financial ratios – Consolidated (2/3)
Financial ratios – Consolidated (2/3) 19
Slide 20: Financial ratios – Consolidated (3/3)
Financial ratios – Consolidated (3/3) St - Standalone 1. Permanent Staff 2. Earning assets incl bal.with other banks, lending to F.I., investments & perf adv 3. Funds includes deposits, borrowings & sub-ordinated loans 20
Slide 21: Quarterly Trend Analysis Bank Level (Stand Alone)
Quarterly Trend Analysis Bank Level (Stand Alone) 21
Slide 22: Profit before Tax
Profit before Tax 8.4 8.3 8.0 7.8 7.2 7.2 7.1 6.5 6.4 Rs Bn 6.0 5.9 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 22
Slide 23: Profit after Tax
Profit after Tax 5.7 5.3 5.3 5.2 4.9 4.7 4.7 4.4 4.3 Rs Bn 3.9 4.0 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 23
Slide 24: Deposits
866 Deposits 847 858 828 773 752 685 698 703 Rs Bn 653 614 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 24
Slide 25: Advances
417 Advances 408 391 369 377 364 363 Rs Bn 358 355 352 345 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 25
Slide 26: Net Interest Income
Net Interest Income 11.3 11.0 10.6 Rs Bn 9.9 9.8 9.6 9.6 9.5 9.4 9.0 8.8 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 26
Slide 27: Provisions
Provisions 1.9 1.1 0.9 Rs Bn 0.8 0.7 0.8 0.5 0.3 0.2 -0.1 -0.1 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 27
Slide 28: Non Funded Income
Non Funded Income 5.5 5.1 5.0 4.8 4.6 4.9 4.5 4.1 4.0 Rs Bn 3.6 3.9 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 28
Slide 29: Revenue
16.3 Revenue 15.4 15.4 15.5 14.9 13.8 Rs Bn 13.7 13.2 13.4 14.1 12.6 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 29
Slide 30: Administrative Expenses
Administrative Expenses 7.2 7.1 6.9 6.9 6.5 6.5 6.2 6.2 6.1 Rs Bn 5.8 5.5 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 30
Slide 31: Forward-looking statements disclaimer
The information contained herein reflects our latest business statement as at Sep 30, 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 of
Slide 32: Thank You
_@BL UNITED BANK oo Thank You Gai 32