United Bank Limited · PSX:UBL
United Bank — Q3 2010 Earnings Presentation
34 slides from United Bank's earnings presentation, Oct 28, 2010
Slide 1: United Bank Limited Performance Review 3Q 2010
United Bank Limited Performance Review 3Q 2010 October 28, 2010 Abu Dhabi
Slide 2: Key Highlights
Key Highlights • PAT up 27% yoy at Rs. 8.1 B, while 14% yoy at Rs. 7.9 B on consolidated basis • Net Interest income up 5% – Mainly due to lower cost of funds (Sep’ 2009: 5.5%; Sep’ 2010: 4.4%) – Increase in average core deposits by 5% – Net interest margin (NIM) up to 7.1% (Sep’2009: 6.7%) • Non In
Slide 3: Key Highlights
Key Highlights • Provision charge of Rs 6.2 B, lower by 36%, – Credit provisions of Rs. 6.2 billion for the nine months ended Sept 2010 were significantly lower compared to Rs. 9.6 billion in the corresponding period last year while our coverage has improved to 72% over the same period – Net credit
Slide 4: Summary
Summary Sep 2010 Dec 2009 Change Assets (PKR bn) 650 640 +1% Advances (PKR bn) 344 362 -5% Market Share-Adv- DOM 8.6% 8.8% Deposits (PKR bn) 507 504 +1% Market Share-Deposits- DOM 8.4% 8.8% Online branches 928 928 - ATMs 413 412 +1 ROAA 1.6% 1.5% ROAE 15% 16% Credit Rating (JCR-VIS) AA+/A-1+ AA+/A-1
Slide 5: Share Info
Share Info Sep 2010 Dec 2009 EPS (Rs/share-annual.) 8.7 7.8 BV/share (Rs/share) 58.7 55.0 Price* - (Rs /share) 51.4 58.6 P/E 5.9x 7.5x P/BV 0.9x 1.1x # of shares 1,224M 1,224M * S e p-10 P ric e dat e d Oc t obe r 18, 2010 & De c - 09 P ric e dat e d Fe bruary 18, 2010 * A ll f igure s hav e be e n
Slide 6: Income Statement (Bank only)
Income Statement (Bank only) QTD QTD 9 Month 9 Month (PKR bn) Sep'10 Jun'10 Var % Sep'10 Sep'09 Var % Net Interest Income 8.57 8.32 +3% 25.08 23.90 +5% Non Interest Income 2.57 2.37 +8% 7.29 8.25 -12% Operating Revenue 11.13 10.68 +4% 32.37 32.15 +1% Operating Expense (4.43) (4.34) -2% (12.86) (12.2
Slide 7: Income Statement (Consolidated)
Income Statement (Consolidated) QTD QTD 9 Month 9 Month (PKR bn) Sep'10 Jun'10 Var % Sep'10 Sep'09 Var % Net Interest Income 8.72 8.44 +3% 25.50 24.29 +5% Non Interest Income 2.66 2.57 +3% 7.75 9.39 -18% Operating Revenue 11.38 11.02 +3% 33.25 33.68 -1% Operating Expense (4.74) (4.69) -1% (13.81) (1
Slide 8: Balance Sheet (PKR bn)
Balance Sheet (PKR bn) % Mix- Mix- Sep'10 Dec'09 Change Sep'10 Dec'09 Cash & bank balances 83.9 75.3 +11% 13% 12% Investments 158.9 137.7 +15% 24% 22% Advances 344.0 362.1 -5% 53% 57% Fixed assets 24.2 23.7 +2% 4% 4% * * * * * * * * * * * * Total Assets 649.7 640.4 +1% 100% 100% Deposits 507.4 503.8
Slide 9: Financial Ratios
Financial Ratios QTD QTD 9 month 9 month Sep'10 Jun'10 Sep'10 Sep'09 Loan/Deposits 68% 68% 68% 78% ROAE 16% 14% 15% 17% ROAA 1.7% 1.5% 1.6% 1.5% Cost/Income Ratio 42% 43% 42% 39% Gross NPLs/Gross Advances 12.6% 11.1% 12.6% 10.0% Net NPLs/Gross Advances 4.0% 3.1% 4.0% 3.3% Coverage Ratio 68% 72% 68%
Slide 10: Deposit Structure (Bank level)
Deposit Structure (Bank level) Deposit Mix (YTD Sept. 2010) - Bank (Parent Company) Cost of Deposits Other Deposits – PKR 12bn Contribution 2% QTD Sep'10 QTD Jun'10 Cost 0.0% Period Avg.Yield Period Avg.Yield end Rs B /Cost end Rs B /Cost Saving deposits 169 4.6% 173 4.9% Fixed Deposits – PKR 146bn
Slide 11: Advances by Business
Advances by Business % Net Advances-Rs.B Sep'10 Dec'09 Change Mix'10 Yield 10 Yield 09 Corporate Bank 146.7 150.1 -2% 58% 13.3% 14.3% Commercial Bank* 81.5 81.2 +0% 32% 14.4% 16.1% Consumer Bank 17.3 24.3 -29% 7% 16.4% 17.9% Others 7.3 9.3 -21% 3% 10.6% 10.2% Domestic 252.8 264.9 -5% 100% 13.0% 15.1
Slide 12: Consumer Advances by Product
Consumer Advances by Product 2008 2009 Jun-10 Yield Sep'10 24 26% 23% 20 20% 22% 18 17% 16% 16 15% 17% 13% 11 12 13% 7 8 9% 4 4 4 4 3 3 3 3 3 3 2 4 2 2 4% 1 0 0 0% Drive Address Credit Card Cashline Businessline Money % Sep'10 Dec'09 Change Mix'10 Yield 10 Yield 09 Drive 7.3 11.2 -35% 42% 15.7% 16.7
Slide 13: International Advances
International Advances By Geography By Business Yemen, 7% Qatar, 13% NewYork, 0% Bahrain, 10% EPZ, 0% Corporate, 75% UAE, 70% Consumer, 25% Abu Sharjah, Dhabi, 9% 21% Personal Others, loan, 29% 8% Dubai, Baitna, 70% 63% 10/28/2010 13 3:39:25 PM
Slide 14: Spread Analysis - Bank Level
Spread Analysis- Analysis-Bank Level Bank YTD Septem ber 2010 YTD Septem ber 2009 Avg.Yield Avg.Yield Rs B PE AVG IE /Cost PE AVG IE /Cost Avg Kibor - 6M 12.5% 13.2% Interest Earning Assets Performing Advances 313 321 29.8 12.4% 334 345 34.3 13.3% Corporate 131 138 13.7 13.3% 135 144 15.4 14.3% Comm
Slide 15: QTD – Net Interest Income (Bank Level)
QTD – Net Interest Income (Bank Level) Bank QTD Septem ber 2010 QTD June 2010 Avg.Yield Avg.Yield Rs B PE AVG IE /Cost PE AVG IE /Cost Avg Kibor - 6M 12.7% 12.3% Interest Earning Assets Performing Advances 313 321 9.9 12.3% 326 318 9.9 12.5% Corporate 131 137 4.5 13.1% 136 136 4.5 13.4% Commercial 2
Slide 16: Concentration of Advances – (Standalone)
Concentration of Advances – (Standalone) Chemical and Automobile and Telecom, 2.3% Pharmaceuticals, 1.7% transportation equipment, 1.4% Financial, 1.4% Fertilizer , 2.0% Others, 10.5% Airline/ Aviation, 0.9% Food industries, 2.7% Contractors, 0.8% Textile, 14.5% Agribusiness, 15.5% Sugar, 1.7% Cemen
Slide 17: Non Interest Income (Consolidated)
Non Interest Income-(Consolidated) QTD QTD % 9 month 9 month % Rs. M Sep'10 Jun'10 Change Sep'10 Sep'09 Change Commission on consumer loan 289 249 +16% 780 841 -7% Minimum balance charges 68 128 -47% 289 411 -30% Commission on trade 452 435 +4% 1,279 1,079 +19% Commission on remittances/uniremote 18
Slide 18: Operating Expenses (Consolidated)
Operating Expenses-(Consolidated) QTD QTD 9 month 9 month Operating Cost - Rs. M Sep'10 Jun'10 Var % Sep'10 Sep'09 Var % Personnel cost 1,835 1,798 -2% 5,532 5,601 +1% Early Retirement Scheme 10 11 +6% 70 199 +65% Outsourced cost/commission 423 348 -22% 1,102 988 -11% Premises cost 732 730 -0% 2,132
Slide 19: E-Banking
E-Banking % E-Banking Sep-10 Dec-09 Dec-08 Dec-07 Change # of ATMs 413 412 354 +16% 326 # of Transactions (M) 12.2 14.6 11.7 +25% 9.5 Average transactions per day 45k 40k 32k +25% 26k Total transaction amount (Rs B) 72 84 63 +32% 48 Average transaction size (Rs 000) 5.9 5.7 5.4 +5% 5.0 Average month
Slide 20: Financial Ratios (1 of 3)
Financial Ratios (1 of 3) Full Year QTD A nn. DuPont 2007 2008 2009 S ep'10 Dec-09 Mar-10 Jun-10 S ep-10 1 Net Interest Yield 5.0% 4.9% 5.3% 5.3% 5.8% 5.3% 5.3% 5.3% 2 Net Interest Margin 6.1% 5.8% 6.4% 6.4% 7.0% 6.5% 6.5% 6.5% 3 Non Interest Yield 2.0% 1.9% 2.1% 1.6% 2.2% 1.7% 1.6% 1.6% Operating E
Slide 21: Financial Ratios (2 of 3)
Financial Ratios (2 of 3) Asset Quality Full Year Q T D ( A n n u .) 2007 2008 2009 Se p'10 De c-09 Mar-10 Jun-10 Se p-10 Gross NPLs / Gross Loan 6.9% 7.3% 10.3% 12.6% 10.3% 11.3% 11.1% 12.6% Net NPLs / Gross Loan 1.9% 2.4% 3.0% 4.0% 3.0% 3.6% 3.1% 4.0% Coverage Ratio 71.7% 64.2% 69.1% 68.0% 69.1% 6
Slide 22: Financial Ratios (3 of 3)
Financial Ratios (3 of 3) Yearly Q T D ( A n n u .) Other Metrics 2007 2008 2009 Se p'10 De c-09 Mar-10 Jun-10 Se p-10 Capital Adequacy Ratio (St) 10.2% 9.9% 13.2% 14.4% 13.2% 13.2% 13.7% 14.4% Tier-I CAR (St) 7.4% 5.8% 9.0% 10.0% 9.0% 8.9% 9.4% 10.0% Loan / Deposits 74.8% 76.8% 72.0% 67.8% 72.0% 73
Slide 23: Quarterly Trend Analysis
Quarterly Trend Analysis Bank Level 10/28/2010 3:39:25 PM 23
Slide 24: Profit Before Tax
Profit Before Tax Prof it bef ore Tax 6.0 4.9 4.3 4.3 4.4 4.8 3.9 4.1 3.2 3.6 2.8 Rs B 2.4 1.2 - 0.1 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 10/28/2010 3:39:25 PM 24
Slide 25: Profit after Tax
Profit after Tax Prof it Af ter Tax 4.0 3.2 2.8 2.8 2.9 3.0 2.5 2.4 2.1 1.8 Rs B 2.0 1.0 - -0.6 (1.0) Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 10/28/2010 3:39:25 PM 25
Slide 26: Deposits
Deposits 540 509 516 500 492 491 492 484 Rs B 469 468 455 452 451 444 420 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 10/28/2010 3:39:25 PM 26
Slide 27: Net Advances
Net Advances 380 371 368 365 368 360 352 354 356 Rs B 343 344 335 331 332 320 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 10/28/2010 3:39:25 PM 27
Slide 28: Net Interest Income
Net Interest Income 9.5 8.9 9.0 8.6 8.2 8.3 8.5 8.2 Rs B 7.9 8.0 7.6 7.5 7.5 7.2 7.0 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 10/28/2010 3:39:25 PM 28
Slide 29: Net Provision
Net Provision * 6.0 4.4 4.2 4.8 3.5 3.6 Rs B 2.7 2.2 2.1 2.0 2.2 2.4 1.3 1.2 - Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 * Excluding other operational Write- Write-offs 10/28/2010 3:39:25 PM 29
Slide 30: Non-Funded Income
Non--Funded Income Non 5.0 4.2 3.8 3.3 3.4 3.0 Rs B 2.6 2.3 2.3 2.4 2.4 2.6 1.6 1.8 1.0 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 10/28/2010 3:39:25 PM 30
Slide 31: Gross Revenue
Gross Revenue 13.0 12.2 12.0 11.4 11.1 10.7 11.0 10.5 Rs B 10.2 10.5 10.6 10.0 9.0 8.8 8.0 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 10/28/2010 3:39:25 PM 31
Slide 32: Administrative Expenses
Administrative Expenses 4.8 4.6 4.4 4.3 4.3 4.4 Rs B 4.2 4.2 4.2 4.1 4.1 4.1 4.0 3.9 3.8 Sep 08 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 10/28/2010 3:39:25 PM 32
Slide 33: Forward-looking statements disclaimer
The information contained herein reflects our latest business statement as at September 30, 2010 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 34: Thank You
Thank You 10/28/2010 3:39:25 PM 34