United Bank Limited · PSX:UBL
United Bank — Q1 2023 Earnings Presentation
14 slides from United Bank's earnings presentation, Mar 1, 2023
Slide 1: Investor Presentation 1st Quarter 2023
Investor Presentation 1st Quarter 2023 Performance Highlights and Business Outlook Speakers: Mr. Arif Saifie, FCA, CFA Chief Financial Officer Ms. Saira Shah - Financial Controller & Head of Investor Relations
Slide 2: Overview of the UBL Group
Overview of the UBL Group | We are one of the largest and most profitable banks in Pakistan Over 60 years of successful operational Highly experienced senior management history team with diversified experience of large Market leading positions in core segments local and global banking institutions D
Slide 3: UBL recorded strong performance in 1Q'2023
The Big Picture on Macros – UBL delivers strong results with improving EPS Overview of Key Macros in Q1’2023 ▪ Avg Market deposits for YTD Mar’23 at Rs. 22.4 tln, up 14% YoY ▪ Currency in Circulation remains high at Rs. 8.3 tln up 8% over Dec’22 (Rs 7.7 tln) ▪ Avg Market Advances for up by 19% YoY i
Slide 4: 1Q'23 Results | Solid growth supported by strong NFI with cost control
1Q’23 Results | Solid growth supported by strong NFI with cost control Rs in bln Rs in bln Margin expansion grows earnings with strong fee buildup Income Statement Var % Var % 1Q'23 1Q'22 Q4'22 ▪ Bank NIMs at 5.2% in 1Q’23 (1Q’22: 4.3%), with higher asset yields Interest Earned 89.8 48.0 87% 74.4 21
Slide 5: Balance Sheet Review
Balance Sheet Review | Building efficiencies in deposit base with well diversified investment book Rs in bln Domestic Deposits Performance - led by Branch Banking Group Balance Sheet Var % Mar'23 Dec'22 ▪ Average deposits at Rs 1.6 tln, up 7% YoY Advances 711 922 -23% ▪ Average current accounts up 1
Slide 6: Strong Dividend Payouts maintained
Strong Dividend Payouts maintained | UBL repositions to achieve larger aspirations 220 Trends - KSE 100 Index and UBL’s share price 50 Equity and Book Values Max price in 1Q’23: Rs. 117 Rs in bln Cons. Equity Mar’23 - Rs. 241 bln 200 Price at 03-May-2023: Rs. 129 45 Cons. Book value Mar’23 - Rs. 197
Slide 7: Key Ratios for the quarter
Key Ratios for the quarter | Higher ROE increasing overall levels with steady buildup in revenue Gross Revenues Cost to Income Ratio Net Interest Margins Rs in bln 42.8 42.0 Rs in bln 47.8% 35.1 8.8 5.5% 31.6 12.3 45.0% 5.0% 5.2% 4.3% 4.6% 28.3 7.4 43.5% 43.3% 3.9% 3.9% 3.5% 3.7% 24.5 41.5% 22.6 23.
Slide 8: UBL poised for growth | Capital Base strengthens
UBL poised for growth | Capital Base strengthens with more efficient allocation Capital Adequacy Ratio Risk Weighted Assets 155 bps 201 201 Mar'23: Dec'22: 76 19.2% Rs 1,043 766 81 Rs 1,000 718 17.6% bln bln 4.8% 4.3% 1.0% 0.9% Credit Market Operational Credit Market Operational 13.4% 12.4% ▪ UBL se
Slide 9: Digital Banking Group
Digital Banking Group | Focus on growing digital payment services across wider target market Digital Registrations Digital Penetration levels continue to improve 3.5 M YoY 31% No. 4.5of Active Branch Customers & Digital Customers in Millions 49% 50% 55% 4.0 45% 3.5 37% Digital Transactions 3.0 35%
Slide 10: Awards Received
Awards Received | 14 Awards in 3 Years ASIAMONEY PAKISTAN BANKING AWARDS PAKISTAN DIGITAL AWARDS CONSUMER CHOICE AWARD “Best Digital Bank Pakistan 2020” “Best Digital Banking Award 2020” “Best Emerging Technology Award 2021” “Bank with best Digital Services in “Best Digital Bank Pakistan 2021” “Best
Slide 11: UBL Digital Snapshot
UBL Digital Snapshot Digital Cheque Deposit UBL Digital Watch App UBL Urooj Account With the UBL digital watch app, you can now check UBL Urooj Account - One of a kind current account Deposit a Cheque via the UBL digital mobile your account balance, view transaction history, designed specially to su
Slide 12: Our priorities are clear
Our priorities are clear…To be the “Best Service Bank” for our customers Deposit Mobilization & People & Network Expansion Transformation Islamic Banking ▪ Raising service standards ▪ Capacity building, upskilling ▪ Building on our Islamic across all channels – making managers and leaders propositio
Slide 13: We are embedding ESG into UBL's Strategy
We are embedding ESG into UBL’s Strategy…. Some key themes Environmental Social Governance The Social aspect We keep interests of our stakeholders at Our ESG agenda guides us in making includes and goes beyond our CSR activities to conscientious investment and purpose- include development of people-
Slide 14: Important Information
Important Information The information contained herein reflects our latest business statement as at March 31, 2023. 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 expre