United Bank For Africa Plc · NSENG:UBA
United Bank For Africa — H1 2021 Earnings Presentation
36 slides from United Bank For Africa's earnings presentation, September 2021
Slide 1: Investor Presentation: 2021 Half Year Results
Investor Presentation 2021 Half Year Results September 2021 Africa’s Global Bank
Slide 2: Outline
Outline 04 About UBA 10 Operating Environment 14 Financial Performance 21 UBA Payments Business Update 28 Outlook/Guidance 31 Appendices 2
Slide 3: Disclaimer & Caution Regarding Forward-Looking Statements
Disclaimer & Caution Regarding Forward-Looking Statements • IMPORTANT: From time to time, the Bank makes written and/or oral forward looking statements. These are included in this presentation and in other communications. In addition, representatives of the Bank may make forward looking statements o
Slide 4: About UBA
About UBA
Slide 5: We are Africa's Global Bank
We are Africa’s Global Bank Our Vision To be the undisputed leading and dominant financial services institution in Africa. Our Mission To be a role model for African businesses by creating superior value for all our stakeholders, abiding by the utmost professional and ethical standards, and by build
Slide 6: A Leading Pan-African Banking Franchise
Footprint Across Africa A Leading Pan-African Banking Benin Chad Burkina Faso Franchise With a 72-year history, UBA is one of the leading and most recognised banking DR. Congo brands to originate from Sub-Sahara Africa. Uganda Mali UBA has growing operations in 20 African Senegal countries, the UK a
Slide 7: UBA at a Glance
UBA at a Glance Leveraging our pan-African strategy for optimum value Footprint /Channels 20 25 million+ 20,000+ 1,000+ 2,669 87,223 21.1 million African Countries Customers Staff* Business ATMs PoS Cards + Offices** London New York Paris Financial Highlights CAR 23.9% Assets Equity Deposits Net Loa
Slide 8: UBA's Investment Proposition
UBA’s Investment Proposition 1 2 3 4 Resilience through Growth Opportunities Strong balance sheet Governance & diversification supporting returns Sustainability UBA is Africa’s Global Bank UBA is well-positioned for UBA’s capital base and UBA is listed on the premium diversified by business, busines
Slide 9: UBA Ratings
UBA Ratings We have consistently maintained very strong credit ratings National National National National • Short-term: AA- • Short-term: A1+ •Short-term: F1 • ngA-2 • Long-term: AA – •Long-term: A+ International International International •Short-term: B • Long-term: B+ • Short-term: B- •Long-term
Slide 10: Our Operating Environment
Our Operating Environment
Slide 11: Global economy
Global economy Stronger, with uneven recovery Growth(%) 2020 2021f 2022f World Output -3.3 6.0 4.4 Sub-Saharan Africa Global Economy Advanced Economies -4.7 5.1 3.6 Euro Area -6.6 4.4 3.8 • The global economy is projected • Sub-Saharan Africa is expected to Emerging Markets -2.4 6.7 5.0 to grow 6.0%
Slide 12: Nigerian economy
Nigerian economy Resilient amidst increasing uncertainty Economic Growth Interest Rate Exchange Rate ▪ The IMF projects Nigeria to grow by 2.5% in ▪ The MPR remains at 11.5% since ▪ The CBN recently adjusted the official 2021, up from its earlier (January) September 2020, as monetary authorities USD
Slide 13: Sub-Saharan Africa
Sub-Saharan Africa The 19 African countries (ex-Nigeria) where we operate also remained resilient Highlights of a few of our Operating Economies - ex-Nigeria GDP per Capita Countries Growth Inflation Policy Rate Growth Drivers Growth 2020 0.9% -1.1% 10.6% Dec. 2020 14.5% Agriculture, Manufacturing,
Slide 14: Financial Performance Highlights (H1'21)
Financial Performance Highlights (H1’21)
Slide 15: Financial Performance Summary
Financial Performance Summary Positive growth in profit and other key parameters H1’21 H1’20 % Change Gross Earnings 316,036 300,610 5.1% Net Interest Income 148,068 119,324 24.1% Comprehensive Income & Profit Trend Operating Income 213,156 196,709 8.4% (N’ Million) Operating Expenses 132,833 132,12
Slide 16: Balance Sheet Performance
Balance Sheet Performance Customer Deposits (N’ Trillion) Gross Loans (N’ Trillion) Total Assets (N’ Trillion) 6.1 2.9 5.7 2.7 8.3 7.7 2.3 5.6 3.8 1.7 3.3 1.7 4.9 4.1 2.7 Jun-21 Dec-20 Dec-19 Dec-18 Dec-17 Jun-21 Dec-20 Dec-19 Dec-18 Dec-17 Jun-21 Dec-20 Dec-19 Dec-18 Dec-17 Components of Total Asse
Slide 17: Gross Loans and Coverage
Gross Loans and Coverage Loan Book Distribution by Sector NPL Distribution By Sector Oil and Gas 4% 3% 19% 1% 1% 3% Oil and Gas Public Sector 5% 4% 3% 37% 6% Manufacturing Consumer Loans General Commerce General Commerce 7% Power and Energy 13% Public Sector Finance and Insurance Manufacturing Consu
Slide 18: Headline Earnings
Headline Earnings Impressive interest income growth despite low yield environment Gross Earnings (N’Bn) Earnings Contribution 30% • Gross earnings grew 5.1%, driven by 315 300 294 8.3% and 33% respective growth in 258 222 Interest income interest income and fees and commission income. • Interest inc
Slide 19: Non-funded Income
Non-funded Income Electronic banking and trade continue to drive growth in fees and commissions Fees and Commission Income (N'Bn) Trend in key non-interest income lines 74 Electronic banking income 29.6 Trade transactions income 56 52 46 37 17.9 16.9 12.1 9.9 9.5 10.2 9.8 7.5 5.1 H1'21 H1'20 H1'19 H
Slide 20: Margin Analysis
Margin Analysis Moderated cost of funds as net interest margin improves Net Interest Margin Cost of Funds PAT PBT 7.0% 4.0% 4.1% 6.0% 6.3% 3.7% 5.8% 76.2 5.4% 2.9% 70.2 60.6 58.1 57.5 2.30% 57.1 56.7 44.4 43.8 42.3 Jun-21 Dec-20 Dec-19 Dec-18 Dec-17 Jun-21 Dec-20 Dec-19 Dec-18 Dec-17 H1'21 H1'20 H1'
Slide 21: UBA Payments Business
UBA Payments Business H1 2021 Performance Update
Slide 22: Our Digital Spread
Our Digital Spread 3.5m+ Retail & 20m+ Cardholders 2.5m+ Customers Corporate Clients Mali Chad Senegal Burkina Faso Guinea Nigeria Ghana Cote D’Ivoire 5m+ Customers 8k+ Merchants Cameroon DR Congo Uganda Congo Gabon Kenya Tanzania UBA is strategically positioned 2.7k ATMs 200k+ Merchants & 4m+ Custo
Slide 23: Our Key Payment Channels/Propositions
Our Key Payment Channels/Propositions UBA Business Direct © is an integrated UBA Cards can be used to purchase With UBA Leo You can now Send UBA Mobile App provides control, single sign-on product suite through items in stores, on the Internet and Money, Buy Airtime, Check Account support and flexib
Slide 24: Our Recent Wins
Our Recent Wins • LEO has such impressive feedback and usage and was the only AI BoT showcased at the F8 in Mark’s Opening Remarks • In 2019, LEO won 3 different awards: The Finnovex Awards: Excellence in Automated Chatbot Initiative; the CIBN Awards: Next Generation Class of 2019 and the Asian Bank
Slide 25: Fintech | Partnerships
Fintech | Partnerships Overview of FinTech Service Offering at UBA Group LENDING INSURTECH MONEY TRANSFER PERSONAL PAYMENTS & BILLING FINANCE & REMITTANCES Companies selling Payment processing, Marketplace lending, insurance digitally, Tools to manage bills cards & subscription, microlending & partn
Slide 26: Our Open Banking Ecosystem
Our Open Banking Ecosystem Payment Gateway Services Secured transaction processing along with PCI-DSS SECURITY Compliance, Fraud management solutions to protect card holders, merchants and Aggregators API Banking Services Supports major payment card scheme (MasterCard, VISA FLEXIBILITY and Verve), A
Slide 27: UBA Market Share
UBA Market Share Mobile Money And MFI's – Share of Wallet with UBA (July 2021) Region ($'million) West Africa 442.6 CEMAC 26.6 E&S/AFRICA 1.3 Total 470.6 Mobile Money Deposits in UBA (July 2021) Balance as Balance as at Region Institution Category at Jan. 2021 Jul. 2021 Growth ($'million) ($'million
Slide 28: Outlook/Guidance
Outlook/Guidance —
Slide 29: 2021 FY Guidance
2021 FY Guidance FY 2020 FY 2020 FY 2021 (Guidance) (Achieved) (Guidance) Deposit Growth ~25% 48.1% ~15% Gross Loan Growth ~15% 24.2% ~20% Cost of Risk ~1% 0.9% ~1% NPL Ratio ~5% 4.7% ~5% RoAE ~16% 17.2% ~18% RoAA ~1.6% 1.71% ~1.8% CAR ~25% 22.4% ~24% CIR (ex impairment) ~65% 61.29% ~60% ----- NIM ~
Slide 30: Outlook for 2021
Outlook for 2021 Macroeconomic Environment Banking Industry/Policy Environment UBA Group - 2021 Key Focus Areas Vaccine distribution globally offers hope of Interest rates are expected to normalize further Market share growth across all geographies, gradual return to normalcy. Economic during the ye
Slide 31: Appendices
United Bank for Africa Appendices
Slide 32: UBA continues to support customers, businesses and economies through the pandemic
UBA continues to support our customers, their businesses and economies through the pandemic SUPPORT TO SUPPORT TO SUPPORT TO CUSTOMERS COMMUNITIES EMPLOYEES Supported customers with safe & Made donations to support a Equipped our workforce to serve convenient banking, credits and comprehensive pan-A
Slide 33: Summary Financials 1/3
Summary Financials..1/3 Interim Consolidated and Separate Statements of Comprehensive Income For the period ended 30 June 2021 Group Bank In millions of Nigerian Naira 2021 2020 2021 2020 Interest income 222,631 205,586 132,976 135,983 Interest income on amortised cost and FVOCI securities 220,322 2
Slide 34: Summary Financials 2/3
Summary Financials..2/3 Interim Consolidated and Separate Statements of Financial Position Group Bank As at 30 June 2021 Jun. 2021 Dec. 2020 Jun. 2021 Dec. 2020 In millions of Nigerian Naira ASSETS Cash and bank balances 2,065,021 1,874,618 1,650,541 1,436,822 Financial assets at fair value through
Slide 35: Summary Financials 3/3
Summary Financials..3/3 Interim Consolidated and Separate Statements of Financial Position Group Bank As at 30 June 2021 Jun. 2021 Dec. 2020 Jun. 2021 Dec. 2020 In millions of Nigerian Naira LIABILITIES Derivative Financial Liabilities 220 508 79 508 Deposits from banks 561,545 418,157 290,742 121,8
Slide 36: Thank you
Thank you Contact Information: UBA House 57 Marina, Lagos, Nigeria www.ubagroup.com Investorrelations@ubagroup.com Africa’s Global Bank
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