United Bank For Africa Plc · NSENG:UBA
United Bank For Africa — Investor Presentation (June 2020)
37 slides from United Bank For Africa's investor presentation, June 2020
Slide 1: Investor Presentation
Investor Presentation June 2020 Africa’s Global Bank
Slide 2: Outline
Outline 04 Introduction to UBA 13 Operating Environment 19 Financial Performance 30 Outlook/Guidance 33 Appendix 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: Introduction to UBA
Introduction to UBA Our Strategic Focus
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 Full-Service Pan-African Banking Franchise
Footprint Across Africa A Leading Full-Service Burkina Faso Benin Chad Pan-African Banking Franchise DR. Congo Uganda Mali With a 71-year history, UBA is one of the Senegal strongest and most recognised banking Guinea brands to originate from Sub-Sahara Africa. UBA has growing operations in 20 Afric
Slide 7: UBA at a Glance
UBA at a Glance Footprint /Channels 20 18 million+ 20,000+ 1,000+ 2,561 24,947 7 million African Countries Customers Staff* Branches ATMs PoS Debit/Credit + Cards London New York Paris Financial Highlights CAR 23.4% ₦5.6tn ₦598bn ₦3.8tn ₦2.1tn ₦560bn ₦111bn LR 54.9% [USD15.4bn] [USD1.6bn] [USD10.5bn
Slide 8: UBA's Credit Ratings
UBA’s Credit Ratings National National National International • Short-term: AA- • Short-term: A1+ (NG) •Short-term: F1+ (nga) • Long-term: B- • Long-term: AA - NG) •Long-term: AA- (nga) International International • Long-term: B+ •Short-term: B •Long-term: B Note: S&P and Fitch assigned Credit Ratin
Slide 9: Our ESG/Sustainability Profile
Our ESG/Sustainability Profile Our ESG Practices are guided by the Impact Areas following standards: 1. The Nigerian Sustainable Banking Principles (NSBP) The Financial Gender 2. The Equator Principles Education Health Environment Infrastructure Inclusion inclusiveness 3. The Sustainable Development
Slide 10: Corporate Social Responsibility
Corporate Social Responsibility Education Empowerment Environment Special Projects* N41.7 N115.9 N334.6 N260.8 million million million million FY2019 CSR Spend: N752.82m Through its special purpose CSR vehicle, UBA Foundation, the Group donated N752.8million in 2019 across its four cardinal focus ar
Slide 11: Leadership and Governance
Leadership 11 and Governance UBA is listed on the Premium Board of the Nigerian Stock Exchange, having achieved over 70% rating on the NSE's Corporate Governance Rating System (CGRS) Strong Governance Framework Active and engaging board and management Consistently high Board Evaluation rating commit
Slide 12: Our Operating Environment
Our Operating Environment
Slide 13: Global Economic Performance
Global Economic Performance Slow, Volatile Progress Growth(%) 2017 2018 2019 2020f World 3.9 3.6 2.9 -3.0 Advanced Economies 2.5 2.2 1.7 -6.1 Themes that shaped Emerging Market 4.8 4.5 3.7 -1.0 Global Economy in Sub-Saharan Africa 3.0 3.3 3.1 -1.6 MENA 1.7 1.0 0.3 -3.3 2019/2020 Global Merchandise 4
Slide 14: Nigeria - Recent Regulatory/Policy Events
Nigeria - Recent Regulatory/Policy Events Minimum SDF JUL. FEB. Exclusions from the reduced to N2Bn OMO market MAR CBN embarks on technical The CBN reduced the minimum CBN announced exclusion of local devaluation IMPACT remunerated daily placement for corporates and individuals from Standard Deposit
Slide 15: Nigeria: Macro variables relatively stable..1/2
Nigeria: Macro variables relatively stable..1/2 Gross Domestic Product External Reserves Credit to Private Sector (US$’bn) 30 (N’tn) 26.7 26.6 26.7 28.2 50 8% 45.1 25 45 Real GDP growth 38.6 38.0 20 6% Non-oil sector 40 Oil Sector 5.06% 34.5 15 35 4% 30 10 1.87% 5 1.55% 25 2% 20 0 0% Q3 18 Q4 18 Q1
Slide 16: Nigeria: Macro variables relatively stable..2/2
Nigeria: Macro variables relatively stable..2/2 Inflation Exchange Rate Interest Rate Headline Core Food Call Rate (%) MPR (%) 91-D T-Bill (%) 16.0 CBN BDC 391.6 14% 15.04% 378.9 13.5 380.0 365.5 12.0 361.0 12.40% 8.0 8.5 10% 361.0 10.12% 330.0 4.0 3.0 307.0 6% 0.0 Apr-19 May-19 Sep-19 Mar-19 Oct-19
Slide 17: Selected African Markets – Key developments
Selected African Markets – Key developments Ghana Senegal Kenya Uganda • Ghana grew 4.9% YOY in Q1 2020, • The economy of Senegal • Kenya’s economy grew by • Uganda’s GDP grew 0.3% in against 7.9% in the same period advanced by 3.3% y/y in 5.5% y/y in Q4:2019, following Q4 2019, (1.0% Q3:2019). The
Slide 18: COVID-19 Locked Down Global Economies
COVID-19 Locked Down Global Economies 22/06/20 Cases Deaths Recoveries Countries Economic & Business Implications Global 9.1m 471k 4.8m 215 Africa 309k 8.1k 148k 57 Nigeria 20k 518 6.8k NA Source: worldometer 2020 Growth Outlook (%) 2019 Issued Oct. Revised Apr. Covid-19 Crash in 2019 2020 Pandemic
Slide 19: COVID-19: Opportunities and Threats to Our Business
COVID-19: Opportunities and Threats to Our Business Development Opportunities Potential Threats 1 Significant intervention funds from national & supranational agencies 1 Heightened risk of credit default Our Funding/float - UBA to trap funds in all jurisdictions across the Group Our We will defensiv
Slide 20: Financial Performance Highlights (FY 2019 & Q1 2020)
Financial Performance Highlights (FY 2019 & Q1 2020)
Slide 21: Group FY2019 Financial Highlights
Group FY2019 Financial Highlights 2019 2018 % Change Gross Earnings 559,805 494,045 13.3% Net Interest Income 221,875 205,646 7.9% Comprehensive Income & Profit Trend Net Operating Income 346,293 308,218 12.4% (N’ Million) Operating Expenses (217,167) (197,342) 10.0% Profit Before Tax 111,287 106,76
Slide 22: Group Balance Sheet
Group Balance Sheet Total Assets (N’ Trillion) Total Deposits (N’ Trillion) 2.1 Total Loans (N’ Trillion) 5.6 3.8 4.9 3.3 1.7 1.7 4.1 1.5 2.7 3.5 2.5 Dec-19 Dec-18 Dec-17 Dec-16 Dec-19 Dec-18 Dec-17 Dec-16 Dec-19 Dec-18 Dec-17 Dec-16 Components of Total Assets • Total asset grew 15.1% YoY in 2019FY,
Slide 23: Risk Asset Portfolio Analysis
Risk Asset Portfolio Analysis Loan Book Distribution by Sector NPL Distribution By Sector Oil and Gas 3% 1% 3% Oil and Gas 3% 2% Public Sector Consumer Loans 4% 18.0% 7% 5% Manufacturing General Commerce General Commerce 6% 39% Public Sector Power and Energy 14% 7% Manufacturing Information and 16%
Slide 24: Revenue Decomposition
Revenue Decomposition Gross Earnings (N'Bn) 560 Interest Income (N'Bn) 3.5% Components of Interest Income Earnings Contribution 405 494 363 3.7% 462 326 Loans (N211.8 Bn) 384 264 Interest income (N404.8Bn) Investment 27.7% Securities (N163.7 Bn) Non-interest 40.4% 52.3% Cash and bank 72.3% income ba
Slide 25: Margins Analysis
Margins Analysis Net Interest Margin Cost of Funds PBT PAT 7.0% 7.1% 4.1% 111.3 6.3% 106.8 104.2 6.0% 4.0% 89.1 90.6 78.6 77.5 3.7% 3.7% 72.3 2019 2018 2017 2016 2019 2018 2017 2016 2019 2018 2017 2016 ROE 19.0% ROA Cost of Risk 2.3% 0.90% • The Group has maintained impressive 2.1% profitability, wi
Slide 26: Performance By Geography- FY 2019
Performance By Geography- FY 2019 CONTRIBUTION Nigeria Rest of Africa Rest of the World* Group Total revenue 69% 28% 3% 100% Operating expenses 65% 32% 3% 100% Profit before tax 52% 42% 6% 100% Loans and advances 68% 25% 7% 100% Deposits from customers and banks 67% 29% 4% 100% GROWTH Nigeria Rest o
Slide 27: Digital Banking Presence- FY 2019
Digital Banking Presence- FY 2019 2,561 24,947 2,962,590 3,628,884 2,023,370 2,136,402 Users/Issuances 24% Growth 3.3% Growth 35% Growth 47% Growth 41% Growth 113% Growth Transaction Volume 1,773,944 331,631 2,850,582 329,266 3,659,883 17,930 (NGN) (N‘m) 10.6% Growth 64.4% Growth 5.8% Growth 4.2% Gr
Slide 28: Group 2020 Q1 Financial Highlights
Group 2020 Q1 Financial Highlights 2020 Q1 2019 Q1 % Change Gross Earnings 147,169 131,668 11.77% Net Interest Income 65,417 58,075 12.64% Comprehensive Income & Profit Trend Net Operating Income 91,302 81,999 11.35% (N’ Million) Operating Expenses (58,657) (51,944) 12.92% Profit Before Tax 32,726 3
Slide 29: 2020 Q1 Financial Highlights
2020 Q1 Financial Highlights Gross Earnings (N’Bn) Net Interest Income N’Bn Total Assets (N’ Trillion) 147.2 6.4 65 131.7 5.6 58 119.4 4.9 54 52 101.2 4.1 2020Q1 2019Q1 2018Q1 2017Q1 Mar-20 Dec-19 Dec-18 Dec-17 2020Q1 2019Q1 2018Q1 2019Q1 Earnings Contribution Components of Total Assets Interest Ear
Slide 30: Outlook/Guidance
Outlook/Guidance —
Slide 31: Outlook for 2020
Outlook for 2020 Macroeconomic Environment Banking Industry/Policy Environment UBA Group - 2020 Key Focus Areas COVID-19 scare and the oil price war poses huge risk to global growth and financial Recession likely Market share growth across all geographies stability Sub-Saharan Africa is projected to
Slide 32: 2020 FY Guidance
2020 FY Guidance FY 2019 FY 2019 FY 2020 (Guidance) (Achieved) (Guidance) Deposit Growth ~8% 14.4% ~20% Gross Loan Growth ~18% 23.8% ~15% Cost of Risk ~1% 0.9% ~1% NPL Ratio ~5% 5.1% ~6.5% RoAE ~18% 16.2% ~16% RoAA ~2.2% 1.7% ~1.6% CAR NA 23.4% ~23% CIR (ex impairment) ~60% 62.70% ~62% ----- NIM >6.
Slide 33: Appendix
United Bank for Africa Appendix
Slide 34: Summary Financials..1/3
Summary Financials..1/3 Statements of Comprehensive Income In millions of Nigerian Naira For the year ended 31 December 2019 2018 Interest income 404,830 362,922 Interest income on amortised cost and FVOCI securities 390,304 360,583 Interest income on FVTPL securities 14,526 2,339 Interest expense (
Slide 35: Summary Financials..2/3
Summary Financials..2/3 Statements of Financial Position As at 31 December 2019 31 December 2018 In millions of Nigerian Naira ASSETS Cash and bank balances 1,396,228 1,220,596 Financial assets at fair value through profit or loss 102,388 19,439 Derivative assets 48,131 34,784 Loans and advances to
Slide 36: Summary Financials..3/3
Summary Financials..3/3 Statements of Financial Position As at 31 December 2019 31 December 2018 In millions of Nigerian Naira LIABILITIES Derivative liabilities 852 99 Deposits from banks 267,070 174,836 Deposits from customers 3,832,884 3,349,120 Other liabilities 107,255 120,764 Current tax liabi
Slide 37: Thank you
Thank you Contact Information: UBA House 57 Marina, Lagos, Nigeria www.ubagroup.com Investorrelations@ubagroup.com Africa’s Global Bank
United Bank for Africa — Investor Presentation (June 2020) on 6ix