Union Bank Of Colombo Plc · CSELK:UBC.N0000
Union Bank Of Colombo — Q1 2015 Earnings Presentation
30 slides from Union Bank Of Colombo's earnings presentation, 2015
Slide 1: Investor Presentation 1Q15 Update
INVESTOR PRESENTATION 1Q15 Update
Slide 2: Contents
Contents • Overview of Union Bank • Strategic Focus • Key Trends • Financial Performance 2
Slide 3: Overview of Union Bank
OVERVIEW OF UNION BANK US UNION BANK
Slide 4: Union Bank's trajectory towards greater heights
Union Bank’s trajectory towards greater heights 1995 - Established as the 8th indigenous Commercial Bank 1998 - First bank to launch Internet banking 2003 - Restructuring of the Bank through a Sampath Bank led consortium Land mark investment from Middle East - Royal Family of Saudi Arabia 2010 - Ban
Slide 5: Union Bank's trajectory towards greater heights (2012-2014)
Union Bank’s trajectory towards greater heights 2012 - Re-location to a new state of the art Head Office Listed in the “leading Brands in Sri Lanka” First bank to launch TV Banking Launch of the 1st SME Centre 2013 - Opening of the 50th Branch Selected to top 100 listed companies 2014 - New Core ban
Slide 6: Key Changes since Aug 2014
Key Changes since Aug 2014 New shareholder – TPG with 70% ownership. New capital infusion of Rs 11.4bn. Board of Directors reconstituted with P.Jayendra Nayak as Chairman Mr. Indrajit Wickramasinghe appointed as the new CEO. Management strengthened with key industry leaders. New business
Slide 7: Shareholder structure - Before and After the acquisition
Shareholder structure - Before and After the acquisition Structure Name of Shareholder 30.6.2014 31.12.2014 Culture Finance Holding (An affiliate of TPG) 0% 70.00% Vista Knowledge Pte Ltd 18.50% 5.90% Sampath Bank PLC 7.50% 0.40% Associate Electrical Corporation Ltd 7.50% 2.40% Select Gain Limited 6
Slide 8: Major Shareholder: TPG Capital
Major Shareholder TPG capital is a leading global private investment bank firm founded in 1992 with US$ 65 billion of assets under management. It is one of the largest private equity investment firms globally, focused on leveraged buyout, growth capital and leveraged recapitalization investments in
Slide 9: Board Profile
Board Profile Name Title Profile •Over 25 years of experience in India’s Financial Sector, Encompassing policy, banking and markets •Country head for Morgan Stanley (2010-2013) •Chairman and CEO of Axis Bank (2000-2009) P.Jayendra Nayak Chairman •Axis bank grew to becoming India’s fourth largest ban
Slide 10: Board Profile, Contd…
Board Profile, Contd… Name Title Profile •Appointed on the 15th of November 2014. •25 years of Management experience • Prior to his appointment at UBC he served as the Chief Operating Indrajit Wickramasinghe Executive Director/ CEO Officer of NDB Bank where he was responsible for all business areas
Slide 11: Board Profile, Contd….
Board Profile, Contd…. Name Title Profile •Appointed to the board in 2013 •Has over 26 years of experience in Finance and Management Independent Non Hussain Imtiaz Muhseen •Previously employed art Ceylon Tobacco Company and British American Executive Director Tobacco, UK. •Spearheaded the implementa
Slide 12: New Execution-Focused Management
New Execution-Focused Management Name Title Profile •Appointed on the 15th of November 2014. Director/Chief Executive •25 years of Management experience Indrajit Wickramasinghe Officer • Prior to his appointment at UBC he served as the Chief Operating Officer of NDB Bank where he was responsible for
Slide 13: Business Pillars - Union Bank Group
BUSINESS PILLARS Union Bank Group Corporate Retail SME Treasury Bancassurance NAMAL UB Banking Banking Banking & Finance Remittances HR Finance Technology Marketing Audit Risk Compliance Legal Operations 13
Slide 14: Union Bank Subsidiaries
Union Bank Subsidiaries National Asset Management Limited (NAMAL) is the UB Finance (UBF) was formed by Union Bank of Colombo pioneer Unit Trust management company in Sri Lanka PLC and its international strategic investment partner, established in 1991 with over 20 years of experience and ShoreCap I
Slide 15: Brands
Brands ULTRASAVER Offering you speed and flexibii 15 s OUSI ry ING LOANS FACTORS Ultimate working capital solution MONEY TRANSFER Fastest way to receive money from around the world m= UNION BANK
Slide 16: Distribution Reach
Distribution Reach UBC delivery channels accounted for 62 branches and 63 ATM covering all provinces by the end of 1Q15. Our alternate channels include Internet Banking, Mobile Banking, Direct sales teams and Offsite ATM’s 16
Slide 17: Strategic Focus
STRATEGIC FOCUS US UNION BANK
Slide 18: Strategic Focus
STRATEGIC FOCUS Be a key player within the top 5 Banks in Sri Lanka Align the organization structure to the business proposition and provide clear line of sight Improve the Bank rating and build the Union Bank brand to be within the top 20 brands in Sri Lanka Build a universal banking propos
Slide 19: Key Strengths
KEY STRENGTHS One of the highest capitalized Banks Within the top 5 private commercial banks in market capitalization Second highest in stated capital of all private commercial Banks in Sri Lanka. Strong international shareholder - TPG / US$ 65Bn AUM Ability to leverage on global expertise a
Slide 20: Key Trends
KEY TRENDS US UNION BANK
Slide 21: Balance sheet growth momentum
Balance sheet growth momentum Gross Loans & Receivables LKR Mn 35,000 30,000 25,000 20,000 15,000 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Gross loans and receivables to other customers (LHS) Customer Deposits LKR Mn 30,000 31% 26% 25,000 21% 16% 20,000 11% 6% 15,000 1% 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Deposit Li
Slide 22: Operating Metrics
Operating Metrics CASA 35% 30% 25% 20% 15% 10% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Gross NPL 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 22
Slide 23: Operating Metrics
Operating Metrics Interest Margin Cost to Income 4.60% 120% 4.40% 100% 4.20% 80% 4.00% 3.80% 60% 3.60% 40% 3.40% 20% 3.20% 0% 3.00% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Pre Tax Profits LKR Mn 70 12.0% 60 10.6% 10.0% 50 8.7% 8.0% 40 6.0% 30 4.6% 4.
Slide 24: Revenue Trends
Revenue Trends Net interest income LKR Mn Trading & other operating income LKR Mn 250 700 600 200 500 150 400 300 100 200 50 100 - - 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Net fee and commission income Total operating income LKR Mn LKR Mn 50 800 45
Slide 25: Capital Adequacy and Profitability Ratios
Capital Adequacy and Profitability Ratios Core Capital Adequacy 60% 50% 40% 30% 20% 10% 0% 1Q14 2Q14 3Q14 4Q14 1Q15 ROA% ROE% 0.30% 1.60% 1.40% 0.25% 1.20% 0.20% 1.00% 0.15% 0.80% 0.60% 0.10% 0.40% 0.05% 0.20% 0.00% 0.00% 1Q14 2Q14 3Q14 4Q14 1Q15 1Q14 2Q14 3Q14 4Q14 1Q15 25
Slide 26: Financial Performance
FINANCIAL PERFORMANCE US UNION BANK
Slide 27: Profit and Loss Account - (Bank)
Profit and Loss Account - (Bank) (LKR Mn) 2013 2014 Growth 1Q14 1Q15 Growth Net interest income 1,155.7 1,762.6 53% 329.9 527.9 60% Net fee and commission income 108.4 125.2 15% 27.9 25.1 -10% Net trading and other operating income 514.5 405.6 -21% 95.3 109.4 15% Total operating income 1,778.6 2,293
Slide 28: Profit and Loss Account - Growth over last 5 quarters (Bank)
Profit and Loss Account - Growth over last 5 quarters (Bank) (LKR Mn) 1Q14 2Q14 3Q14 4Q14 1Q15 Net interest income 329.9 399.4 436.5 596.8 527.9 Net fee and commission income 27.9 30.3 34.4 32.6 25.1 Net trading and other operating income 95.3 102.8 102.6 104.9 109.4 Total operating income 453.2 532
Slide 29: Balance sheet (Bank)
Balance sheet (Bank) (LKR Mn) 2014 1Q15 YTD 1Q14 1Q15 YoY Assets Cash and Balances with CB 2,409 2,213 -8% 2,154 2,213 3% Loans and receivables to other customers 25,945 29,258 13% 25,442 29,258 15% Other interest earning assets 15,558 12,546 -19% 6,575 12,546 91% Investment in subsidiaries 892 892
Slide 30: End
-End- US UNION BANK
Union Bank of Colombo — Q1 2015 Earnings Presentation on 6ix