United Bank Limited · PSX:UBL
United Bank — FY2008 Earnings Presentation
32 slides from United Bank's earnings presentation, Mar 12, 2009
Slide 1: United Bank Limited Performance Review (Consolidated) FY 2008
United Bank Limited Performance Review (Consolidated) FY 2008 March 12, 2009
Slide 2: Key Highlights
Key Highlights Profitability • PBT up 2% yoy at Rs. 14.1B • Non Interest Income up 9%; strong exchange and fee income • Net Interest income up 16%; growth in advances • Provision charge of Rs 8.2 B, 23% up yoy – Impairment loss – 2.2B (50% of total exposure) • Reversal on unrealized gain on derivati
Slide 3: Market Developments
Market Developments System loan growth 18.5%; deposit growth 6.6% - Discount rate raised three times from 10% to 15% - CRR / SLR reduced from 28% - to 5% on DTL over 1 yr - to 24% on DTL less than 1 yr - NSS rates raised from 13% to 15% - Minimum 9% CAR under Basel II by Dec 2008 and 10% by Dec 2009
Slide 4: Summary
Summary Dec 2008 Dec 2007 Change Assets (PKR bn) 620 547 +13% Advances (PKR bn) 378 308 +23% Market Share-Adv- DOM 9.2% 9.4% Deposits (PKR bn) 492 411 +20% Market Share-Deposits- DOM 9.6% 9.1% Branches (all automated) 1,136 1,095 +41 Online branches 894 802 +92 ATMs 354 313 +41 ROAA 1.4% 1.9% ROAE 1
Slide 5: Share Info
Share Info Dec 2008 Dec 2007 EPS (Rs/share-annual.) 8.3 8.9 BV/share (Rs/share) 48.8 47.3 Price* - (Rs /share) 43.3 162.9 P/E 5.2x 18.4x P/BV 0.9x 3.4x # of shares 1,012M 1,012M * P ric e da te d M a rc h 04, 2009 * De c '07 pric e a t 19 F e b'08 - a djus te d fo r bo nus s ha re s 4/2/2009 9:32:40
Slide 6: Income Statement (PKR bn)
Income Statement (PKR bn) QTD QTD % FY FY % Dec'08 Sep'08 Change Dec'08 Dec'07 Change Net Interest Income 7.47 7.78 -4% 28.79 24.80 +16% Non Interest Income 1.22 3.00 -59% 10.79 9.93 +9% Operating Revenue 8.68 10.78 -19% 39.59 34.73 +14% Operating Expense (4.43) (4.45) -0% (16.68) (14.26) +17% Pre-P
Slide 7: Balance Sheet (PKR bn)
Balance Sheet (PKR bn) % Mix- Mix- Dec'08 Dec'07 Dec'08 Dec'07 Change Cash & bank balances 64.7 68.6 -6% 10% 13% Investments 115.0 114.0 +1% 19% 21% Advances 378.3 308.3 +23% 61% 56% Fixed assets 19.9 19.0 +5% 3% 3% * * * * * * * * * * * * Total Assets 620.2 546.8 +13% 100% 100% Deposits 492.3 411.5
Slide 8: Financial Ratios
Financial Ratios FY FY Dec'08 Dec'07 Loan/Deposits 77% 75% ROAE 17% 23% ROAA 1.4% 1.9% Cost/Income Ratio 53% 51% Gross NPLs/Gross Advances 7.3% 6.9% Net NPLs/Gross Advances 2.6% 1.9% Coverage Ratio 68% 78% CAR Ratio (Basel II) 10.5% 10.2% Tier 1 CAR (Basel II) 6.1% 7.3% 4/2/2009 9:32:40 AM 8
Slide 9: Deposit Structure
Deposit Structure Deposit Mix (FY Dec 08) - Bank (Parent Company) Cost of Deposits FY Dec'08 FY Dec'07 Other Deposits – PKR 10bn Period Avg.Yield Period Avg.Yield Contribution 2% end Rs B /Cost end Rs B /Cost Cost 0.3% Fixed Deposits – PKR 187bn Saving deposits 156 4.4% 153 2.8% Contribution 39% Cur
Slide 10: Advances by Business
Advances by Business Advances by Business 2006 2007 Dec-08 180 166 160 140 131 120 104 97 Rs B 100 80 64 61 60 55 49 44 47 36 39 40 17 17 20 13 - Co rpo rate B ank Co mmercial B ank Co nsumer B ank Overseas Others (incl subsidiaries) % Net Advances Dec'08 Dec'07 Change Mix 08 Yield 08 Yield 07 Corpo
Slide 11: Consumer Advances by Product
Consumer Advances by Product 2006 2007 2008 Yield Dec 08 23 23% 23% 25% 24 21 21% 20 18 20% 16% 16 14% 14% 15% 12 10% 8 6 6 5 5 5 5 5 4 4 5 4 4 4 3 5% 4 2 0 0% Drive Address Credit Card Cashline Businessline Money % Dec'08 Dec'07 Change Mix 08 Yield 08 Yield 07 Drive 17.7 23.2 -24% 49% 13.5% 12.6% A
Slide 12: QTD – Net Interest Income (Bank Level)
QTD – Net Interest Income (Bank Level) QTD Sep'08 QTD Dec'08 Interest Interest Average incom e / Avg.Yield Average incom e / Avg.Yield Balances (expense) /Cost Balances (expense) /Cost Interest Earning Assets Performing Advances 335,834 10,547 12.5% 363,898 12,072 13.2% Domestic 247,452 8,976 14.4%
Slide 13: Spread Analysis (bank level)
Spread Analysis (bank level) FY December 2007 FY December 2008 Interest Interest Average incom e / Avg.Yield Average incom e / Avg.Yield Balances (expense) /Cost Balances (expense) /Cost Interest Earning Assets Performing Advances 266,336 29,663 11.1% 331,148 40,347 12.2% Domestic 210,457 25,139 11.
Slide 14: Concentration of Advances
Concentration of Advances A uto mo bile and transpo rtatio n equipment, Chemical and 2.4% Financial, 1.9% P harmaceuticals, 1.2% Teleco m, 2.1% Fertilizer , 1.4% Staff lo ans , 1.2% Others, 17.9% A irline/ A viatio n, 2.0% Fo o d industries, 1.9% Co ntracto rs, 0.6% A gribusiness, 7.1% Sugar, 1.8% C
Slide 15: Non Interest Income (PKR mm)
Non Interest Income (PKR mm) QTD QTD % FY FY % Dec'08 Sep'08 Change Dec 08 Dec 07 Change Commission on consumer loan 406 497 -18% 1,686 1,478 +14% Minimum balance charges 159 129 +24% 561 518 +8% Commission on trade 390 345 +13% 1,385 1,022 +36% Commission on remittances/uniremote 162 166 -2% 591 43
Slide 16: Operating Expenses (PKR mm)
Operating Expenses (PKR mm) QTD QTD % FY FY % Dec'08 Sep'08 Change Dec 08 Dec 07 Change Personnel cost 1,750 1,711 +2% 6,769 6,190 +9% Early Retirement Scheme 92 70 +30% 271 345 -22% Premises cost 540 596 -9% 2,224 1,491 +49% Outsourced serv.chgs incl. sales comm 325 295 +10% 1,365 1,293 +6% Adverti
Slide 17: E-Banking
E-Banking % E-Banking Dec-08 Dec-07 Change Dec-06 # of ATMs 354 313 +13% 210 # of Transactions (M) 11.7 9.5 +23% 5.9 Average transactions per day 32k 26k +19% 16k Total transaction amount (Rs B) 63 48 +33% 29 Average transaction size (Rs 000) 5.4 5.0 +8% 4.9 Average monthly trans.per ATM (Rs M) 15 1
Slide 18: Financial Ratios (1 of 3)
Financial Ratios (1 of 3) Yearly DuPont 2005 2006 2007 2008 Net Interest Yield 1 4.5% 5.4% 5.0% 4.9% Net Interest Margin 2 5.4% 6.4% 6.0% 6.1% Non Interest Yield 3 1.7% 1.8% 2.0% 1.8% Operating Exp. / Assets 2.6% 2.9% 2.9% 2.9% Cost Income Ratio 46.4% 44.5% 50.8% 53.2% Loan Loss / Assets 0.4% 0.6% 1
Slide 19: Financial Ratios (2 of 3)
Financial Ratios (2 of 3) Yearly Asset Quality 2005 2006 2007 2008 Gross NPLs / Gross Loan 7.7% 6.2% 6.9% 7.3% Net NPLs / Gross Loan 1.7% 1.6% 1.9% 2.6% Coverage Ratio 84.8% 82.6% 77.9% 68.5% Prov. held / Gross loan 6.0% 4.6% 4.9% 4.7% Prov. Exp. / Gross loan 0.6% 0.8% 2.0% 1.9% Yearly Growth 2005 2
Slide 20: Financial Ratios (3 of 3)
Financial Ratios (3 of 3) Yearly Other Metrics 2005 2006 2007 2008 Capital Adequacy Ratio 5 10.7% 12.2% 10.2% 10.5% 5 Tier-I CAR 7.7% 8.9% 7.3% 6.1% Loan / Deposits 70.9% 74.1% 74.9% 76.8% Loan / Assets 58.7% 58.4% 56.4% 61.0% RWA / Assets 66.8% 72.6% 79.0% 80.0% Average Headcount 2 9,366 9,658 9,70
Slide 21: Quarterly Trend Analysis
Quarterly Trend Analysis Bank Level 4/2/2009 9:32:40 AM 21
Slide 22: Profit Before Tax
Profit Before Tax Profit before Tax 6.0 4 .9 4 .6 4 .7 4 .4 4 .4 4.8 3 .8 Impairment Loss ( Rs.2.2B) 3.6 Rs B Reversal in Mar’07 of accruals in Dec’06 2 .1 1.9 2.4 Provision–PR amendment FSV / others ( Rs 1.975M) 1.2 Provision–FSV ( Rs 1,829M) ERS (Rs 307M) 0 .1 - Dec 06 M ar 07 Jun 07 Sep 07 Dec 07
Slide 23: Profit after Tax
Profit after Tax 4.0 3 .1 3 .2 2 .9 2 .6 2 .6 3.0 2 .7 Prior period tax adj. 2.0 1.5 Rs B (Rs 402M) - one-off exp. 1.3 FSV 1.0 - - 0 .6 (1.0) Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 4/2/2009 9:32:40 AM 23
Slide 24: Deposits
Deposits 525 484 466 480 4 55 435 Rs B 403 402 408 Saving deposits 381 390 3 52 335 345 300 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 4/2/2009 9:32:40 AM 24
Slide 25: Advances
Advances 400 3 71 365 363 329 320 326 Rs B 299 280 280 289 247 2 52 252 215 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 4/2/2009 9:32:40 AM 25
Slide 26: Net Interest Income
Net Interest Income 8.3 7 .6 7 .3 7.6 6 .8 7.0 Rs B 6 .4 6 .2 6 .1 6 .0 6.3 5 .8 5 .6 5.7 5.0 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 4/2/2009 9:32:40 AM 26
Slide 27: Net Provision
Net Provision * 5.0 4 .2 4.0 2 .9 2 .8 Impairment Loss 3.0 Rs B Provision–PR amendment 2.2B FSV / others ( Rs 1.975M) Provision–FSV 2.0 Rs 1.829M) 1.2 1.3 1.3 1.0 0 .5 0 .4 0 .4 - Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 * Excluding other operational Writeoffs 4/2/2009 9:32:4
Slide 28: Non-Funded Income
Non--Funded Income Non 4.0 3.4 3 .0 3 .1 2 .9 2 .6 2.8 Rs B 2 .3 2 .2 2 .2 2 .1 2.2 1.5 1.6 1.0 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 4/2/2009 9:32:40 AM 28
Slide 29: Total Revenue
Total Revenue 11.0 9 .1 9.6 8 .5 8 .2 7 .8 8.2 7 .4 7 .5 Rs B 6.8 5 .8 5 .5 5.4 4 .4 4.0 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 4/2/2009 9:32:40 AM 29
Slide 30: Administrative Expenses
Administrative Expenses 4.5 4 .1 4 .1 4.1 3 .8 3 .7 ERS (Rs 92M) Amor. cost (Rs 179M) 3.7 Rs B 3 .4 3 .4 ERS (Rs 70M) 3 .4 Amor. cost (Rs 322M) 3.3 ERS (Rs 307M) 3 .5 ERS (Rs 87M) 2 .9 2.9 Reversals in Mar’07 of accruals in Dec’06 2.5 Dec 06 M ar 07 Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08
Slide 31: Forward-looking statements notice
The information contained herein reflects our latest business statement as at December 31, 2008 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
Slide 32: Thank You
Thank You 4/2/2009 9:32:40 AM 32