United Bank Limited · PSX:UBL
United Bank — Q1 2012 Earnings Presentation
31 slides from United Bank's earnings presentation, Apr 26, 2012
Slide 1: United Bank Limited Performance Review March 2012
United Bank Limited Performance Review March 2012 April 26, 2012 Abu Dhabi 1
Slide 2: Key Highlights
Key Highlights • Standalone PAT up 49% YoY to Rs 4.9 Bn. Consolidated PAT up 43% YoY to Rs 4.9 Bn • Net interest income up by 5% to Rs 9.6 Bn YoY o NIM reduced by 45 bps to 6.7% YoY due to the lower rate environment o Yield on earning assets reduced by 76 bps YoY o Cost of funds reduced by 31 bps Yo
Slide 3: Key Highlights
Key Highlights • Provisions down by 67% YoY to Rs 0.8 Bn o NCL ratio improved by 195 bps YoY to 0.9% in Q1’12 • Administrative expenses up by 17% YoY mainly due to the full impact of an additional 108 branches and certain one offs. Excluding this impact, administrative expenses increased by 11% YoY
Slide 4: Income Statement (Standalone)
Income Statement (Standalone) PKR Bn Q1'12 Q1'11 Var % Q4'11 Var % Interest Earned 17.70 16.71 6% 17.92 -1% Interest Expensed (8.10) (7.55) -7% (8.13) 0% Net Interest Income 9.60 9.16 5% 9.79 -2% Non Interest Income 4.09 3.03 35% 3.78 8% Total Revenue 13.69 12.18 12% 13.57 1% Admin. Expenses (5.53)
Slide 5: Income Statement - Consolidated
Income Statement - Consolidated PKR Bn Q1'12 Q1'11 Var % Q4'11 Var % Interest Earned 18.01 16.92 6% 18.18 -1% Interest Expensed (8.21) (7.60) -8% (8.27) 1% Net Interest Income 9.80 9.32 5% 9.91 -1% Non Interest Income 4.37 3.35 31% 3.73 17% Total Revenue 14.18 12.67 12% 13.64 4% Admin. Expenses (5.9
Slide 6: Share Info
Share Info Standalone Consolidated Mar 2012 Dec 2011 Mar 2012 Dec 2011 EPS (Rs/share-annual.) 15.9 12.7 15.9 12.1 BV/share (Rs/share) 63.2 64.7 69.2 70.2 Price* - (Rs /share) 84.6 76.7 84.6 76.7 P/E 5.3x 6.1x 5.3x 6.3x P/BV 1.3x 1.2x 1.2x 1.1x # of shares 1,224M 1,224M 1,224M 1,224M * Mar-12 Pric e
Slide 7: Key Ratios - Bank
Key Ratios - Bank Balance Sheet Ratios Dec-11 Mar'12 Adva nces / Depos i ts 56% 60% As s et Qua l i ty 14.2% 15.6% Covera ge 80% 70% Financial Ratios Q1'12 Q1'11 Q4 11 Yi el d on P. Adva nces 12.1% 13.2% 13.0% Cos t of Depos i ts 4.3% 4.3% 4.2% Net Interes t Ma rgi n 6.7% 7.1% 7.0% NCL Ra tio 0.9% 2
Slide 8: Deposits Structure (Bank level)
Deposits Structure (Bank level) Cost of Deposits Deposits - Bank Cost of Deposits Dec'11 Mar'12 6.4% PE - PE - Bank Rs.Bn COF% Rs.Bn COF% 5.3% Domestic deposits 495 4.8% 493 4.7% 4.2% International deposits 118 2.3% 121 2.9% 3.1% Total Bank 613 4.3% 614 4.3% 2.0% International $ 1,313 2.3% 1,337 2.9
Slide 9: Net Advances
Net Advances % Net Advances - Rs. Bn Dec'11 Mar'12 Change Corporate Bank 155.2 180.9 +17% Commercial ** 69.0 64.4 -7% Consumer 11.3 10.4 -8% Others 6.0 6.3 4% Total Domestic 241.4 262.0 9% International 83.9 83.5 -1% Bank 325.3 345.4 6% Subsidiaries 15.8 14.9 -6% Bank - Consolidated 341.1 360.3 6% I
Slide 10: International Advances
UNITED BANK uo. International Advances | By Business - UAE | Yemen, 12% Qatar, 10% UAE, 68% Personal loan, 12%
Slide 11: Spread Analysis – Bank Level
Spread Analysis – Bank Level Bank Q1 2012 Q1 2011 Avg.Yiel Avg.Yiel Rs Bn PE AVG IE d /Cost PE AVG IE d /Cost Avg KIBOR - 3M 11.9% 13.6% Interest Earning Assets Performing Advances 310 299 9.0 12.1% 305 297 9.7 13.2% Corporate 157 146 4.8 13.2% 144 132 4.7 14.5% Commercial 19 20 0.7 14.3% 20 21 0.8
Slide 12: Concentration of Advances - Standalone
Concentration of Advances - Standalone Airlines, 1% Trading, 3% Automobile & Trans. Agribusiness, 11% Equip., 1% Textile, 16% Cement, 1% Telecom, 2% Chemical and pharmaceuticals, 2% Contractor / Constructor, 6% Fertilizer dealers, 2% Sugar, 3% Financials, 3% Prod. & Transmission Food, 4% Energy, 18%
Slide 13: Non Markup / Return / Interest Income
Non Markup / Return / Interest Income Non Fund Income - Rs. Mn Q1'12 Q1'11 Var % Q4'11 Var % Fee, commission and brokerage income 1,866 1,599 17% 1,958 -5% Dividend income 810 101 701% 357 127% Income from dealing in foreign currencies 568 749 -24% 561 1% Gain / (loss) on sale of securities 415 180
Slide 14: Fee Commission and Brokerage Income
Fee Commission and Brokerage Income Fee Commission Income - Rs. Mn Q1'12 Q1'11 Var % Q4'11 Var % Commission on trade 430 406 6% 407 6% Commission on consumer loan 217 231 -6% 299 -28% Commission on remittance / uniremote 246 225 9% 211 16% Corporate service chgs/Finance fee/FI inc. 287 178 62% 314 -
Slide 15: Administrative Expenses
Administrative Expenses Rs. Mn Q1'12 Q1'11 Var % Q4'11 Var % Personnel cost 2,429 2,084 -17% 2,251 -8% Premises cost 764 729 -5% 519 -47% Outsourced service charges 468 341 -38% 496 6% including sales commission Advertisement and publicity 134 128 -4% 169 21% Communications 220 198 -11% 218 -1% Depr
Slide 16: E-banking Statistics
E-banking Statistics E-Banking Mar'12 Mar'11 % Change 2011 2010 # of ATMs 484 462 5% 476 436 # of Transactions (Mn) 6.2 4.5 38% 19.5 16.4 Average transactions per day 68k 50k 36% 53k 45k Total transaction amount (Rs Bn) 48 28 70% 125 101 Average transaction size (Rs 000) 7.8 6.3 24% 6.4 6.1 Average
Slide 17: Financial ratios – Consolidated (1/3)
Financial ratios – Consolidated (1/3) Full Year Q T D ( A n n u a liz e d ) DuPont 2008 2009 2010 2011 Dec-11 Mar-12 Spread (St) 1 5.1% 5.5% 5.5% 5.6% 5.3% 5.0% Net Interest Margin (St) 2 6.1% 6.9% 7.0% 7.2% 6.9% 6.7% Non Interest Yield 3 1.9% 2.1% 1.6% 1.7% 1.9% 2.1% Admin Exp./Avg Assets 2.9% 2.8%
Slide 18: Financial ratios – Consolidated (2/3)
Financial ratios – Consolidated (2/3) QTD Asset Quality Full Year ( A n n u a liz e d ) 2008 2009 2010 2011 Dec-11 Mar-12 Gross NPLs / Gross Loan 7.2% 10.3% 12.9% 13.4% 13.4% 14.9% Net NPLs / Gross Loan 2.2% 3.0% 3.6% 2.7% 2.7% 4.5% Coverage Ratio 69.3% 70.9% 71.9% 80.1% 80.1% 69.8% Prov. held / Gro
Slide 19: Financial ratios – Consolidated (3/3)
Financial ratios – Consolidated (3/3) Yearly Other Metrics Q T D ( A n n u a liz e d ) 2008 2009 2010 2011 Dec-11 Mar-12 Capital Adequacy Ratio 10.4% 14.0% 15.0% 14.9% 14.9% 13.7% Tier-I CAR 6.1% 9.5% 10.4% 10.6% 10.6% 9.6% Loan / Deposits 77.3% 73.7% 62.8% 57.5% 57.5% 60.7% Loan / Assets 58.3% 53.7
Slide 20: Quarterly Trend Analysis
Quarterly Trend Analysis Bank Level 20
Slide 21: Profit before Tax
Profit before Tax 8.5 7.5 7.2 7.3 6.5 6.1 5.0 5.2 Rs Bn 4.8 4.4 4.9 4.0 4.1 4.3 4.3 3.7 3.2 2.8 2.5 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 21
Slide 22: Profit after Tax
Profit after Tax 5.5 4.9 4.5 4.7 4.2 3.9 3.4 3.3 Rs Bn 3.1 2.8 2.8 2.9 3.1 2.5 2.4 2.1 2.3 1.8 1.5 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 22
Slide 23: Deposits
Deposits 650 613 614 594 600 551 557 550 529 509 500 491 Rs Bn 492 500 469 452 451 450 400 Mar 09 Jun'09 Sep'09 Dec'09 Mar'10 Jun'10 Sep'10 Dec'10 Mar'11 Jun'11 Sep'11 Dec'11 Mar'12 23
Slide 24: Net Advances
Net Advances 380 368 364 355 355 347 349 Rs Bn 339 340 343 330 329 329 329 327 330 321 320 318 Mar 09 Jun'09 Sep'09 Dec'09 Mar'10 Jun'10 Sep'10 Dec'10 Mar'11 Jun'11 Sep'11 Dec'11 Mar'12 24
Slide 25: Net Interest Income
Net Interest Income 11.0 10.3 10.2 10.2 9.8 9.6 9.4 9.1 9.1 9.2 Rs Bn 8.6 8.6 8.1 8.2 8.2 8.4 7.8 7.8 7.0 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 25
Slide 26: Total Provision
Total Provision 6.0 4.7 4.8 3.6 3.6 2.8 2.6 Rs Bn 2.2 2.1 2.1 1.9 2.3 2.4 1.9 1.6 1.0 1.2 0.8 - Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 26
Slide 27: Non Fund Income
Non Fund Income 5.0 4.1 4.2 3.8 4.0 3.2 3.4 3.0 2.9 3.0 2.8 Rs Bn 2.6 2.4 2.4 2.6 2.2 2.0 1.8 1.0 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 27
Slide 28: Gross Revenue
Gross Revenue 14.5 13.6 13.7 13.4 13.5 13.0 12.2 12.2 12.5 11.9 Rs Bn 11.2 11.5 11.8 10.6 10.7 10.3 10.3 10.5 9.5 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 28
Slide 29: Administrative Expenses
Administrative Expenses 5.8 5.5 5.4 5.0 5.0 5.0 4.9 5.0 Rs Bn 4.7 4.4 4.5 4.6 4.4 4.2 4.2 4.1 4.2 4.0 3.8 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 29
Slide 30: Forward-looking statements
The information contained herein reflects our latest business statement as at March 31, 2012 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 of
Slide 31: Thank You
_@GBL UNITED BANK uc. Thank You Gst 31