United Bank For Africa Plc · NSENG:UBA
United Bank For Africa — H1 2022 Earnings Presentation
38 slides from United Bank For Africa's earnings presentation, September 2022
Slide 1: United Bank for Africa Plc H1 2022 Investor Conference Call Presentation
United Bank for Africa Plc H1 2022 Investor Conference Call Presentation September 2022
Slide 2: Disclaimer
Disclaimer • 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 orally to analysts, investors, the media and oth
Slide 3: Outline
Outline About UBA 01 Operating Environment 02 Sustainability & Governance 03 Payment Business 04 Financial Performance 05 Outlook/Guidance 06 Appendices 07 2
Slide 4: About UBA
United Bank for Africa About UBA
Slide 5: The Evolution of UBA
The Evolution of UBA Pre-Merger Post-Merger Acquired majority interest in two banks based in Burkina Faso and Benin Successfully raised ₦22bn Successfully debt capital redeemed $500 Successfully divested million Eurobond Commenced operations British & French its non-bank Named “African issued in 201
Slide 6: Disrupting financial services across African Continent
Disrupting financial services across African Continent Vision Mission To be the undisputed leading and dominant financial services To be a role model for African businesses by creating superior institution in Africa. value for all stakeholders, abiding by the utmost professional and ethical standard
Slide 7: Unique International Positioning – Strong potential for growth
Unique International Positioning –Strong potential for growth USA* France UK UAE (New York) (Paris) (London) (Dubai) . • Facilitating payments by leveraging on our • Bring Africa closer to France and Europe: one • UBA UK is a direct conduit for the unique position as the only Sub-Saharan • UBA is th
Slide 8: Strong Customer Base and Channels
Strong Customer Base and Channels 20,000+ 242,415 2,207 ATMs Staff* PoS 20 African Countries + UK (London) USA (New York) France (Paris) 1,000+ UAE (Dubai) 25 million 14.2 Customers Business Offices** million Cards 7
Slide 9: Financial Highlights
Financial Highlights Funding, Liquidity & Capital ▪ Strong, stable low-cost funding mix of 84% ▪ Relatively low cost of funds at 2.1% Assets Net Loans ▪ Headroom for lower CoF, on aggressive retail penetration ₦9.0trn ₦3.0trn ▪ Liquid balance sheet to fund emerging [USD7.0bn] opportunities [USD21.4b
Slide 10: Sustained Credit Ratings
Sustained Credit Ratings National National National National • Short-term: A1+(NG) • Short-term: ngA-2 • Short-term: Aa- • Short-term: F1+(nga) • Long-term: AA+(NG) • Long-term: ngBBB • Long-term: A+(nga) International International International • Long-term: B • Short –term: B • Short –term: B • Lo
Slide 11: Meet the new Executive team
UBAM United Bank for Africa Meet the new Executive team
Slide 12: Poised to drive UBA's next phase of growth
Poised to drive UBA’s next phase of growth Oliver, a seasoned banking professional, comes on board with a broad range of strategic and well-grounded experience in corporate and institutional banking, consumer banking, public sector, retail and commercial banking, project management, corporate govern
Slide 13: Poised to drive UBA's next phase of growth
Poised to drive UBA’s next phase of growth Ugo has over 28 years’ experience in diverse leadership positions and more recently as the Group Chief Financial officer of UBA Plc. Before now, Ugo who joined UBA in 2004, rose through the ranks of Strategy and performance management, Corporate Business de
Slide 14: Poised to drive UBA's next phase of growth
Poised to drive UBA’s next phase of growth Alex Alozie has over two decades of banking experience driving digital transformation and operational efficiency. Prior to joining UBA in 2019, Alex was the head of operations in Diamond bank and Head of Digital in Access bank, where he successfully carried
Slide 15: Poised to drive UBA's next phase of growth
Poised to drive UBA’s next phase of growth Sampson Aneke’s rich experience and play in the digital space has come to the fore with his recent appointment as Group General Manager, Retail, Digital & Transaction Banking Group in the United Bank for Africa. He joined the Group in 2019 with the responsi
Slide 16: Governance & Sustainability
Governance & Sustainability 15
Slide 17: ESG is at the heart of our operations
ESG is at the heart of our operations Our approach to ESG focuses on four pillars E • Pursuit of Net-zero targets through appropriate methodologies • Screening and assessment of customers’ transactions/projects for E&S risks Environmental • Setting targets and measuring our Scope 1,2 & 3 emissions.
Slide 18: UBA Foundation – Touching lives
UBA Foundation – Touching lives Through UBA Foundation, we gave out a total of N660.01 billion as donations and charitable contributions in the first half of 2022, as a part of our commitment to the development of host communities, the environment and broader economies within which we operate. Educa
Slide 19: Financial Performance
UBAM United Bank for Africa Financial Performance
Slide 20: Financial Highlights
Financial Highlights In millions of Nigerian Naira H1’2022 H1’2021 % Change Gross Earnings 372,358 316,036 17.8 • Gross earnings grew 17.8%, driven by Net Interest Income 177,462 148,068 19.9 double digit growth in interest and non Operating Income 255,980 213,156 20.1 interest income. Operating Exp
Slide 21: Key indices trending in the right direction
Key indices trending in the right direction Net Interest Margin Cost of Funds Figure in N’bn 5.7% PBT PAT 2.1% 2.1% 85.7 70.3 76.2 60.6 5.2% H1'2022 H1'2021 H1'2022 H1'2021 H1'2022 H1'2021 Return On Average Equity Return On Average Assets • Double digit growth in PBT largely driven by 30.1% growth i
Slide 22: Strong interest income growth in low yield environment
Strong interest income growth in low yield environment Interest Income (N’bn) Effective yield on Assets Gross Earnings (N’bn) Earnings Contribution 8.3% 372.4 257.4 316.0 222.6 7.8% H1'2022 H1'2021 H1'2022 H1'2021 H1'2022 H1'2021 Components of Interest Income Earnings Contribution (%) 42% 58% • Gros
Slide 23: Sustained growth in non-interest income
Sustained growth in non – interest income Fees & Commission Income (N’bn) Trends of key non-interest income lines (N’bn) 96.4 36.3 74.1 29.6 27.0 27.1 Electronic banking Income Trade transaction income 17.6 15.5 Credit-related fees and 9.9 commissions H1'2022 H1'2021 7.4 Others Contributions to Fees
Slide 24: Balance Sheet Performance
Balance Sheet Performance Total Assets (N’Trn) Customer Deposit (N’Trn) Net Loans (N’Trn) 9.0 6.7 6.4 8.5 3.0 2.8 H1'2022 FY'2021 H1'2022 FY'2021 H1'2022 FY'2021 • The Group maintains a well-diversified Asset Mix(%) Funding Mix(%) balance sheet, with about 40.2% of the 9% assets in liquid, low-moder
Slide 25: Well-diversified loan book and moderating NPL ratio
Well-diversified loan book and moderating NPL ratio Loan Book Distribution by Sector 5% Oil & Gas 5% 17% • Well diversified loan book across strategic economic sectors Manufacturing 5% translating to moderate credit risk . Government 6% Finance & Insurance • Prudent underwriting standards, and proac
Slide 26: Africa (Ex-Nig.) Business: A strong growth pole for the Group
Africa (Ex – Nig.) Business : A strong growth pole for the Group Countries GDP $'Bn %Growth 2022F Ghana 75.5 4.2 • Presence in high growth rate economies, implying prospect Kenya 109.4 7.2 for higher growth. Mali 19.6 3.1 Liberia 3.4 4.2 • Cumulative GDP of countries bigger than Nigeria’s by 1.3x Ca
Slide 27: Payment Business
UBAM United Bank for Africa Payment Business
Slide 28: Our Key Payment Channels and offerings
Our Key Payment Channels and offerings With UBA Leo (chat banking bot) You can now Send UBA Cards (Debit, Credit Money, Buy Airtime, Check The UBA Digital Experience on UBA Internet Banking is an UBA Mobile App provides and Prepaid) can be used to Account Balance, Pay Bills Mobile and Web is an inte
Slide 29: Our Key Payment Channels and offerings (cont'd)
Our Key Payment Channels and offerings (cont’d) UBA Cardless Withdrawal Services The Cardless Withdrawal Service UBA API Banking Services The UBA Contactless Payment enables customers to carry out With this service, we have been able Allows merchants and customers to transactions on ATMs across UBA
Slide 30: Digital channels performance
Digital channels performance Chat Banking Mobile Banking Online Banking USSD Banking Cards POS YOY % YOY % YOY % YOY % YOY % YOY % Subscription (‘M) 3.6 50% 4.9 32% 4.5 32% 7.2 26% 14.16 37% 242.4** 134% Count (‘M) H1 22 145% 183.5 30% 6.6 14% 250 410 34% 112 19% 5.8 24% Value (N’B) 743.1 8,223 661
Slide 31: UBA Payment Business – Strategic Pole for Growth
UBA Payment Business – Strategic Pole for Growth • Over 25 million customers across geographies, contributing to the growth in revenue and improving profitability. • Of this number, 30.8% are below 30years with high long-term value • 79% of our customers use at least one form of our digital channels
Slide 32: Outlook/Guidance
Outlook/Guidance
Slide 33: 2022 FY Guidance
2022 FY Guidance FY’21 FY’21 FY’22 H1'22 Guidance Achieved Guidance Achieved Deposit Growth ~15% 15.3% ~15% 7.9% Loan Growth ~20% 7.7% ~10% 4.1% Cost of Risk ~1% 0.4% ~1% 0.8% Non Performing Loan Ratio ~5% 3.6% ~4% 3.3% Return on Average Equity ~18% 15.6% ~18% 17.7% Return on Average Assets ~1.8% 1.
Slide 34: Appendices
UBAM United Bank for Africa Appendices
Slide 35: Summary Financials 1/3
Summary Financials..1/3 United Bank for Africa Plc Consolidated and Separate Statements of Comprehensive Income For the period ended 30 June 2022 In millions of Nigerian Naira Group Bank Jun Jun Jun Jun 2022 2021 2022 2021 Interest income 257,361 222,631 154,179 132,976 Interest income on amortised
Slide 36: Summary Financials 2/3
Summary Financials..2/3 United Bank for Africa Plc Consolidated and Separate Statements of Financial Position As at 30 June 2022 Group Bank In millions of Nigerian Naira 30 Jun. 22 31 Dec. 21 30 Jun. 22 31 Dec. 21 ASSETS Cash and bank balances 1,982,022 1,818,784 1,713,350 1,446,906 Financial assets
Slide 37: Summary Financials 3/3
Summary Financials..3/3 LIABILITIES Deposits from banks 846,166 654,211 690,981 483,110 Deposits from customers 6,729,923 6,369,189 4,296,919 4,004,306 Derivative liabilities 306 98 306 98 Other liabilities 200,440 216,209 126,621 127,338 Current income tax payable 14,402 21,415 2,945 2,751 Borrowin
Slide 38: Thank you
Thank you Africa’s Global Bank
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