Union Bank Of Colombo Plc · CSELK:UBC.N0000
Union Bank Of Colombo — FY2020 Earnings Presentation
15 slides from Union Bank Of Colombo's earnings presentation, December 2020
Slide 1: Investor Presentation
Investor Presentation December 2020 1
Slide 2: Vision
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”. Mission: ▪ To our customers we provide the means of economic upliftment through customized banking and fi
Slide 3: CEO's message
CEO’s message “Our agility and apt business continuity execution have allowed Union Bank to weather the macroeconomic storm in good shape. the Bank has safeguarded the interests of its stakeholders amidst challenges and maintained healthy liquidity levels, and stands strongly capitalised to withstan
Slide 4: Performance Snapshot 2020
Performance Snapshot 2020 Growth Income Statement (Rs.Mn) 2020 2019 (%) Net Interest Income 3,870 4,479 -13.6% Net Fee & Commission Income 703 855 -17.8% Net Trading & Other Operating Income 1,318 686 92.0% Total Operating Income 5,890 6,021 -2.2% Impairment Charge 736 390 88.5% Total Operating Expe
Slide 5: NII was Rs.3.8 Bn
NII was s.3.8 Bn Net Interest Income (Rs.Mn) Gross Fees & Commission Income (Rs.Mn) 4,479 3,870 1,069 3,652 968 873 3,046 783 2,507 667 2,022 1,763 405 197 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 Net Interest Margin declined from 3.6% to 3.2% Fee income declined by 18.4
Slide 6: Operating Expenses declined by 1.5% YoY
Operating Expenses declined by 1.5% YoY Net Trading & Other Income Operating Expenses (Rs.Mn) (Rs.Mn) 1,318 3,729 3,830 3,772 3,345 3,009 800 2,319 656 656 686 1,639 445 377 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 • Treasury recorded a notable performance with • Operati
Slide 7: Operating Margin dropped by 3.3% YoY
Operating Margin dropped by 3.3% YoY Operating Margin (Rs.Mn) 2,200 Operating Income (Rs.Mn) 1,700 CAGR 5,890 17% 1,200 2,293 700 2014 2020 200 2014 2015 2016 2017 2018 2019 2020 (300) Operating Expenses (Rs.Mn) • Total operating income reduced by 2% to Rs. 5,890 Mn 3,772 CAGR 15% • Total operating
Slide 8: Gross NPL Ratio was 6%
Gross NPL Ratio was 6% Impairment Charge (Rs.Mn) Gross NPL (%) 736 8% 541 6% 5% 390 342 4% 4% 249 3% 2% 177 152 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 Impairment Charge increased by 89% YoY The gross NPL ratio increased to 6% from 5% in 2019. • Significant provisions w
Slide 9: Balance Sheet - Bank
Balance Sheet - Bank Growth Balance Sheet (Rs.Mn) Dec-20 Dec-19 (%) Treasury Assets 47,750 34,700 37.6% Net Loans (Rs.Mn) Loans & Advances 67,518 77,358 -12.7% 67,518 Cash & Balances with CB 3,128 5,033 -37.9% CAGR Other Assets 4,547 4,662 -2.5% 17% Total Assets 122,943 121,754 1.0% 25,944 Borrowing
Slide 10: Strong CASA growth of 27% YTD
Strong CASA growth of 27% YTD Net Loans (Rs.Mn) Deposits (Rs.Mn) 82,384 77,358 79,251 76,532 70,578 73,749 70,326 67,518 55,438 51,841 40,095 37,653 25,944 27,809 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 CASA (Rs.Mn) • Total EOP CASA grew by 27% YTD. • Total deposits inc
Slide 11: Strong Capital Adequacy ratio of 16.95%
Strong Capital Adequacy ratio of 16.95% • Capital Adequacy Ratio - The Bank continued to maintain high capital adequacy ratios. - The total capital ratio as at end 2020 was 16.95% - well above the statutory requirement of 12%. • Liquidity Coverage - The Bank maintains a very strong position of LKR L
Slide 12: Income Statement - Group
Income Statement - Group Growth Income Statement (Rs.Mn) 2020 2019 (%) Net Interest Income 4,538 5,234 -13.3% Net Fee & Commission Income 792 958 -17.3% Net Trading & Other Operating Income 1,359 724 87.7% Total Operating Income 6,688 6,916 -3.3% Impairment Charge 948 580 63.4% Total Operating Expen
Slide 13: Balance Sheet - Group
Balance Sheet - Group Growth Balance Sheet (Rs.Mn) Dec-20 Dec-19 (%) Treasury Assets 47,382 34,567 37.1% Net Loans (Rs.Mn) 73,777 Loans & Advances 73,777 84,780 -13.0% CAGR Cash & Balances with CB 3,555 5,419 -34.4% 17% Other Assets 4,857 5,074 -4.3% 29,218 Total Assets 129,570 129,840 -0.2% Borrowi
Slide 14: Key Performance Indicators
Key Performance Indicators BANK GROUP Item 31 Dec 2020 31 Dec 2019 31 Dec 2020 31 Dec 2019 Regulatory Capital - Rs '000 Common Equity Tier 1 (Basel III) 15,415,491 15,286,211 16,024,248 15,810,228 Tier 1 Capital / Core Capital (Basel III) 15,415,491 15,286,211 16,024,248 15,810,228 Total Capital / T
Slide 15: Corporate Information
Corporate Information Board of Directors Legal Form Name Title A Public Limited Liability Company incorporated in Sri Lanka under the Companies Act No. 17 of 1982. Atul Malik Chairman/Ind. Non-Exec. Director Sabry Ghouse Deputy Chairman/ Ind. Non-Exec. Director Re-registered under the Companies Act