United Bank Limited · PSX:UBL
United Bank — Q3 2009 Earnings Presentation
32 slides from United Bank's earnings presentation, Oct 26, 2009
Slide 1: United Bank Limited Performance Review 3Q 2009
United Bank Limited Performance Review 3Q 2009 October 26, 2009
Slide 2: Key Highlights
Key Highlights • PAT declines 23% yoy at Rs. 6.9 B; however 28% up over last quarter • Net Interest income up 15% – Mainly due to higher yield on earning assets (Yield Jan-Sep 08: 10.8%; Jan-Sep 09: 12.1%) – Increase in average advances by 9% – Net interest margin (NIM) up to 6.4% (September 08: 6.3
Slide 3: Key Highlights
Key Highlights • Bank expenses up by 8%; – Dom. Exp. up by 6% while average inflation at 15% yoy; Intl rupee exp.+17%; Intl dollar exp. -2% – Bank intermediation cost for Sep’09 stable at 3.5% over corresponding period – Excluding rupee devaluation, admin expenses are only up by 5% • Advances reduce
Slide 4: Summary
Summary Sep 2009 Dec 2008 Change Assets (PKR bn) 614 620 -1% Advances (PKR bn) 362 378 -4% Market Share-Adv- DOM 9.0% 9.2% Deposits (PKR bn) 464 492 -6% Market Share-Deposits- DOM 8.3% 9.6% Online branches 921 894 +27 ATMs 382 354 +28 ROAA 1.5% 1.4% ROAE 17% 17% Credit Rating (JCR-VIS) AA+/A-1+ AA+/
Slide 5: Share Info
Share Info Sep 2009 Dec 2008 EPS (Rs/share-annual.) 8.3 7.5 BV/share (Rs/share) 55.5 44.4 Price* - (Rs /share) 63.7 43.3 P/E 7.7x 5.8x P/BV 1.1x 1.0x # of shares 1,113M 1,113M * S e p-09 P ric e dat e d Oc t obe r 15, 2009 * De c -08 P ric e dat e d Marc h 04, 2009 adjust e d f or bonus share s 11/1
Slide 6: Income Statement (PKR bn)
Income Statement (PKR bn) QTD QTD 9 month 9 month Sep'09 Jun'09 Var % Sep'09 Sep'08 Var % Net Interest Income 8.51 7.88 +8% 24.57 21.33 +15% Non Interest Income 2.64 4.24 -38% 9.11 9.58 -5% Operating Revenue 11.15 12.12 -8% 33.68 30.91 +9% Operating Expense (4.53) (4.46) -2% (13.19) (12.25) -8% Pre-
Slide 7: Balance Sheet (PKR bn)
Balance Sheet (PKR bn) % Mix- Mix- Sep'09 Dec'08 Change Sep'09 Dec'08 Cash & bank balances 69.7 64.7 +8% 11% 10% Investments 132.7 115.0 +15% 22% 19% Advances 362.2 378.3 -4% 59% 61% Fixed assets 20.1 19.9 +1% 3% 3% * * * * * * * * * * * * Total Assets 613.8 620.2 -1% 100% 100% Deposits 463.9 492.3
Slide 8: Financial Ratios
Financial Ratios QTD QTD YTD YTD FY Sep'09 Jun'09 Sep'09 Sep'08 Dec'08 Loan/Deposits 78% 73% 78% 81% 77% ROAE 16% 13% 17% 24% 17% ROAA 1.5% 1.1% 1.5% 2.1% 1.4% Cost/Income Ratio 55% 58% 54% 45% 52% Gross NPLs/Gross Advances 10.0% 8.8% 10.0% 6.4% 7.3% Net NPLs/Gross Advances 3.3% 2.9% 3.3% 1.9% 2.6%
Slide 9: Deposit Structure
Deposit Structure Deposit Mix (YTD Sep 09) - Bank (Parent Company) Cost of Deposits QTD Sep'09 QTD Jun'09 Other Deposits – PKR 9bn Period Avg.Yield Period Avg.Yield end Rs B /Cost end Rs B /Cost Contribution 2% Cost 0.2% Saving deposits 158 4.9% 166 5.2% Fixed Deposits – PKR 148bn Contribution 33% C
Slide 10: Advances by Business
Advances by Business % Net Advances Sep'09 Dec'08 Change Mix 09 Yield 09 Yield 08 Corporate Bank 147.2 165.9 -11% 56% 13.6% 12.5% Commercial Bank 80.0 61.4 +30% 31% 15.4% 14.4% Consumer Bank 26.9 36.4 -26% 10% 17.7% 16.5% Others 8.2 10.2 -20% 3% 9.3% 12.0% Domestic 262.3 273.9 -4% 100% 14.9% 13.5% I
Slide 11: Consumer Advances by Product
Consumer Advances by Product 2007 2008 Sep-09 Yield Sep 09 26 25% 23 22% 22% 22 19% 17% 17% 18% 20% 18 17 15% 13 13 10% 9 6 6 5 5 4 3 4 4 4 3 3 4 3 3 5% 2 1 0 0% Drive Address Credit Card Cashline Businessline Money % Sep'09 Dec'08 Change Mix 09 Yield 09 Yield 08 Drive 12.7 17.7 -28% 47% 16.9% 13.6%
Slide 12: QTD – Net Interest Income (Bank Level)
QTD – Net Interest Income (Bank Level) Bank QTD Septem ber 2009 QTD June 2009 Avg.Yiel Avg.Yiel Rs B PE AVG IE d /Cost PE AVG IE d /Cost Interest Earning Assets Performing Advances 340 343 10.8 12.5% 356 349 11.4 13.1% Corporate 141 141 4.7 13.2% 149 149 5.3 14.3% Commercial 78 79 2.9 14.9% 84 74 2.
Slide 13: Spread Analysis - Bank Level
Spread Analysis-Bank Level Bank YTD Sep 2009 YTD Sep 2008 Avg.Yiel Avg.Yiel Rs B PE AVG IE d /Cost PE AVG IE d /Cost Interest Earning Assets Performing Advances 340 352 34.7 13.2% 358 322 28.1 11.7% Corporate 141 150 15.9 14.1% 158 144 12.8 11.9% Commercial 78 71 8.4 15.9% 52 51 5.3 13.8% Consumer 2
Slide 14: Concentration of Advances
Concentration of Advances A uto mo bile and transpo rtatio n equipment, Chemical and 1.8% Financial, 1.3% P harmaceuticals, 1.7% Teleco m, 2.3% Fertilizer , 1.4% Others, 12.9% Staff lo ans , 1.3% A irline/ A viatio n, 2.0% Fo o d industries, 1.8% Co ntracto rs, 0.8% Textile, 14.8% A gribusiness, 14.
Slide 15: Non Interest Income (PKR mm)
Non Interest Income (PKR mm) QTD QTD % 9 month 9 month % Sep'09 Jun'09 Change Sep 09 Sep 08 Change Commission on consumer loan 286 278 +3% 837 1,279 -35% Minimum balance charges 130 161 -19% 411 402 +2% Commission on trade 399 351 +14% 1,079 995 +8% Comm on remittances/uniremote 195 199 -2% 578 429
Slide 16: Operating Expenses
Operating Expenses QTD QTD 9 month 9 month Operating Cost - Rs. M Sep'09 Jun'09 Var % Sep 09 Sep 08 Var % Personnel cost 1,818 1,904 +5% 5,601 5,018 -12% Early Retirement Scheme 113 52 -117% 199 179 -11% Outsourced cost/commission 333 323 -3% 1,111 1,454 +24% Premises cost 718 650 -11% 1,955 1,684 -
Slide 17: E-Banking
E-Banking % E-Banking Sep-09 Dec-08 Change Dec-07 # of ATMs 382 354 +8% 313 # of Transactions (M) 14.3 11.7 +23% 9.5 Average transactions per day 39k 32k +22% 26k Total transaction amount (Rs B) 61 63 -4% 48 Average transaction size (Rs 000) 4.3 5.4 -22% 5.0 Average monthly trans.per ATM (Rs M) 13 1
Slide 18: Financial Ratios (1 of 3)
Financial Ratios (1 of 3) DuPont Full Year Q T D A n n u a liz e d 2007 2008 S ep-09 Mar-09 Jun-09 S ep-09 1 Net Interest Yield 5.0% 4.9% 5.3% 5.2% 4.9% 5.4% 2 Net Interest Margin 6.1% 6.1% 6.4% 6.4% 6.2% 6.7% 3 Non Interest Yield 2.0% 1.8% 2.0% 1.6% 2.6% 1.5% Operating Exp. / Assets 2.9% 2.9% 2.9%
Slide 19: Financial Ratios (2 of 3)
Financial Ratios (2 of 3) Asset Quality Full Year Q T D ( A n n u .) 2007 2008 Se p-09 Mar-09 Jun-09 Sep-09 Gross NPLs / Gross Loan 6.9% 7.3% 10.0% 8.2% 8.8% 10.0% Net NPLs / Gross Loan 1.9% 2.6% 3.3% 3.0% 2.9% 3.3% Coverage Ratio 77.9% 68.5% 69.9% 67.0% 70.5% 69.9% Prov. held / Gross loan 4.9% 4.7%
Slide 20: Financial Ratios (3 of 3)
Financial Ratios (3 of 3) Yearly Q T D ( A n n u .) Other Metrics 2007 2008 Se p-09 Mar-09 Jun-09 Se p-09 Capital Adequacy Ratio 12.4% 10.6% 12.8% 11.35% 11.75% 12.77% Tier-I CAR 8.8% 7.3% 8.8% 7.72% 7.99% 8.79% Loan / Deposits 74.8% 76.8% 78.1% 76.5% 72.7% 78.1% Loan / Assets 56.4% 61.0% 59.0% 57.4
Slide 21: Quarterly Trend Analysis
Quarterly Trend Analysis Bank Level 11/10/2009 2:01:46 PM 21
Slide 22: Profit Before Tax
Profit Before Tax Profit before Tax 6.0 Before FSV(2007, ERS) 4 .9 4 .7 4 .4 4.8 3 .9 3 .2 3.6 2 .8 Rs B 2 .1 1.9 2.4 Impairment loss (Rs.2.2B) 1.2 0 .1 Provision–FSV ( Rs 1,829M) ERS (Rs 307M) - Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09 Sep-09 11/10/2009 2:01:46 PM 22
Slide 23: Profit after Tax
Profit after Tax Profit After Tax 4.0 3 .2 2 .9 2 .7 2 .5 3.0 2 .1 1.8 2.0 Rs B 1.5 1.3 1.0 - - 0 .6 (1.0) Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09 Sep-09 11/10/2009 2:01:46 PM 23
Slide 24: Deposits
Deposits 550 50 9 509 484 466 469 4 55 4 52 468 Rs B 427 402 408 Saving deposits 381 386 345 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09 Sep-09 11/10/2009 2:01:46 PM 24
Slide 25: Net Advances
Net Advances 400 3 71 368 365 375 360 3 52 350 Rs B 329 320 325 299 300 280 275 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09 Sep-09 11/10/2009 2:01:46 PM 25
Slide 26: Net Interest Income
Net Interest Income 9.0 8 .3 8 .1 8 .0 8.3 7 .6 7 .3 7.6 Rs B 6 .8 6.9 6 .4 6 .2 6 .0 6.2 5.5 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09 Sep-09 11/10/2009 2:01:46 PM 26
Slide 27: Net Provision
Net Provision * 6.0 4 .7 4 .4 4.8 3 .3 3.6 2 .9 2 .8 Rs B Impairment Loss 2 .2 2.2B 2.4 Provision–FSV Rs 1.829M) 1.2 1.3 1.3 1.2 - Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09 Sep-09 * Excluding other operational Writeoffs 11/10/2009 2:01:46 PM 27
Slide 28: Non-Funded Income
Non-Funded Income 5.0 4 .0 4.2 3 .1 3.4 3 .0 Rs B 2 .9 2 .6 2.6 2 .2 2 .1 Derivatives 1.2B 1.2B 1.5 1.8 Derivatives (change in accounting Methodology) 2 .0 1.0 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09 Sep-09 11/10/2009 2:01:46 PM 28
Slide 29: Total Revenue
Total Revenue 11.0 9 .1 9.6 8 .5 7 .9 8 .2 7 .3 8.2 7 .6 Rs B 6.8 5 .8 5 .5 5.4 4 .4 4.0 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09 Sep-09 11/10/2009 2:01:46 PM 29
Slide 30: Administrative Expenses
Administrative Expenses 4.5 4 .3 ERS (Rs 92M) Amor. cost (Rs 179M) 4 .2 4.3 4 .1 3 .9 4.0 4 .1 Rs B 3 .8 3 .7 3.8 3 .5 ERS (Rs 70M) 3 .4 Amor. cost (Rs 322M) 3.5 ERS (Rs 307M) ERS (Rs 87M) 3.3 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09 Sep-09 11/10/2009 2:01:46 PM 30
Slide 31: The information contained herein reflects our latest business statement as at September 30, 2009
The information contained herein reflects our latest business statement as at September 30, 2009 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 variation
Slide 32: Thank You
Thank You 11/10/2009 2:01:46 PM 32