United Bank Limited · PSX:UBL
United Bank — FY2013 Earnings Presentation
32 slides from United Bank's earnings presentation, December 2013
Slide 1: United Bank Limited Performance Review December 2013
United Bank Limited Performance Review December 2013 1
Slide 2: Key Highlights
Key Highlights Standalone PAT up 4% YoY to Rs 18.6 bn. Consolidated PAT up 3% YoY to Rs 19.7 bn Net Interest income down 2% YoY to Rs 37.9 bn ■ Net Interest Margins reduced by 105 bps to 5.4% (Dec 2012: 6.4%) impacted by the downward shift in interest rates in the last 2 years and the increase in mi
Slide 3: Improving Asset Quality, NPL recoveries and control over costs remain in focus
Improving Asset Quality , NPL recoveries and control over costs remain in focus Provisions and Loan Losses are down by 68% YoY to Rs 1.4 Bn in Dec’13 ■ Asset quality improved to 12.1% in 2013 as compared to 14.0% in Dec’12. ■ Diligent portfolio management has resulted in gross NPLs reducing by Rs 4.
Slide 4: Balance sheet crossed Rs trillion; growth momentum within core businesses
In 2013 the balance sheet has crossed a landmark of Rs 1 trillion, growing by 13% over Dec 2012 Growth momentum maintained within core businesses despite market challenges Strategy to grow Core Domestic deposits continues ■ Average Core deposits have grown by 17% YoY in 2013. ■ In line with our focu
Slide 5: Income Statement - Standalone
Income Statement - Standalone FY '13 FY '12 Var % Q4'13 Q3'13 Var % PKR Bn Interest Earned 72.85 73.51 -1% 19.41 18.08 7% Interest Expensed (34.91) (34.95) 0% (8.84) (8.55) -3% Net Interest Income 37.94 38.56 -2% 10.57 9.52 11% Non Interest Income 18.11 17.13 6% 4.86 4.62 5% Total Revenue 56.05 55.6
Slide 6: Income Statement - Consolidated
Income Statement - Consolidated FY '13 FY '12 Var % Q4'13 Q3'13 Var % PKR Bn Interest Earned 75.71 75.38 0% 20.22 18.77 8% Interest Expensed (36.20) (35.76) -1% (9.13) (8.85) -3% Net Interest Income 39.51 39.62 0% 11.09 9.92 12% Non Interest Income 20.70 19.59 6% 5.34 5.11 5% Total Revenue 60.21 59.
Slide 7: Share Info
Share Info Trends – KSE 100 Index and UBL’s Share Price Book Value Per Share Trends - KSE 100 Index & UBL's Share Price Thousands Book value per share - Standalone 160 31 115 150 140 27 Cons. Equity Dec’13 – Rs 111 Bn 78 130 100 120 24 Cons. BV - Rs 90.9 per share Book Value - Rs. Bn Book value per
Slide 8: Key Ratios – Bank (Standalone)
Key Ratios – Bank (Standalone) Balance Sheet Ratios Dec-12 Dec-13 Adva nces / Depos i ts 56.1% 50.7% As s et Qua l i ty * 13.4% 11.7% Covera ge* 81.8% 89.7% Financial Ratios FY ' 12 FY ' 13 Q3'13 Q4'13 Yi el d on P. Adva nces 11.8% 9.7% 9.4% 10.3% Cos t of Depos i ts 4.3% 3.9% 3.8% 3.9% Net Interes
Slide 9: Deposits Structure (Bank level)
Deposits Structure (Bank level) Cost of Deposits Deposits - Bank Dec'12 Dec'13 5.2% PE - PE - Bank Rs.Bn COF% Rs.Bn COF% 4.4% Domestic deposits 540 4.6% 619 4.1% 3.6% International deposits 158 3.4% 209 3.1% 2.8% Total Bank 698 4.3% 828 3.9% 2.0% Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1'13
Slide 10: Net Advances
Net Advances % Net Advances - Rs. Bn Dec'12 Dec'13 Change Corporate Bank * 222.7 222.0 -0% Commercial 6.5 7.6 +16% Consumer 7.9 7.7 -2% Others 23.5 24.0 2% Total Domestic 260.6 261.3 0% International 103.8 129.5 +25% Bank 364.4 390.8 7% International US$ Mn 1,068.4 1,229.7 +15% * of which commodity
Slide 11: International Advances
International Advances By Geography By Business - UAE Yemen, 10% Qatar, 11% NewYork, 1% Bahrain, 11% Corporate, 65% EPZ, 0% Others, 23% UAE, 67% Consumer, 11% Personal Others, 2% loan, 5% Sharjah, 7% Abu Dhabi, 42% Baitna, 92% Dubai, 51% 11
Slide 12: Spread Analysis – Bank Level
Spread Analysis – Bank Level Bank FY' 2012 FY' 2013 FY' 2012 Avg.Yield Avg.Yield Rs Bn PE AVG IE /Cost PE AVG IE /Cost Avg KIBOR - 3M 11.1% 9.4% Interest Earning Assets Performing Advances 337 319 37.5 11.8% 363 337 32.7 9.7% Corporate 158 156 19.8 12.8% 164 156 17.0 10.9% Commercial 20 18 2.7 14.9%
Slide 13: Concentration of Advances – Bank level (December’13)
Concentration of Advances – Bank level (December’13) Tra di ng, 5% Ai rl ines, 2% Agri business, 13% Automobile & Tra ns. Equi p., 1% Texti l e, 15% Cement, 1% Tel ecom, Chemi cal and 2% pha rmaceuticals, 1% Suga r, 1% Contra ctor / Prod. & Tra nsmission Cons tructor, 7% Energy, 13% Fi nancials, 3%
Slide 14: Non Markup / Return / Interest Income
Non Markup / Return / Interest Income Non Fund Income - Rs. Mn FY' 13 FY' 12 Var % Q4'13 Q3'13 Var % Fee, commission and brokerage income 10,049 8,163 23% 2,799 2,634 6% Dividend income 2,074 2,664 -22% 1,012 340 198% Income from dealing in foreign currencies 2,156 1,863 16% 603 763 -21% Gain / (los
Slide 15: Fee Commission and Brokerage Income
Fee Commission and Brokerage Income Fee Commission Income - Rs. Mn FY' 13 FY' 12 Var % Q4'13 Q3'13 Var % Commission on trade 1,645 1,584 4% 443 448 -1% Commission on consumer loan 669 738 -9% 181 192 -6% Commission on remittance / uniremote 1,703 1,123 52% 490 450 9% Corporate service chgs/finance f
Slide 16: Administrative Expenses
Administrative Expenses Administrative Expenses - Rs. Mn FY' 13 FY' 12 Var % Q4'13 Q3'13 Var % Personnel Cost 10,510 10,023 -5% 2,669 2,629 -2% Premises Cost 3,581 3,069 -17% 959 914 -5% Outsourced service charges 3,040 2,203 -38% 862 805 -7% including sales commission Advertisement and publicity 64
Slide 17: UBL OMNI – Branchless Banking
UBL OMNI – Branchless Banking ■ Winner of GSMA International Mobile Award 2012 for “Best Use of Mobile in Humanitarian Initiatives” and recipient of Financial UBL OMNI Commercial Launch: April 2010 Insights Innovation Award 2012, Singapore. Nominated again for No of Accounts: 1.36Million+ GSMA Mobil
Slide 18: Financial ratios – Consolidated (1/3)
Financial ratios – Consolidated (1/3) DuPont YTD Q T D ( A n n u a liz e d ) 2009 2010 2011 2012 2013 Mar-13 Jun-13 S ep-13 Dec-13 Spread (Standalone) 1 5.5% 5.5% 5.6% 4.7% 4.0% 4.0% 3.8% 4.0% 4.3% Net Interest Margin (Standalone) 2 6.9% 7.0% 7.2% 6.4% 5.4% 5.4% 5.0% 5.3% 5.7% Non Interest Yield 3 2
Slide 19: Financial ratios – Consolidated (2/3)
Financial ratios – Consolidated (2/3) Asset Quality YTD Q T D ( A n n u a liz e d ) 2009 2010 2011 2012 Dec 13 Mar-13 Jun-13 Sep-13 Dec-13 Gross NPLs / Gross Loan 10.3% 12.9% 13.4% 13.6% 11.9% 13.8% 13.4% 12.5% 11.9% Net NPLs / Gross Loan 3.0% 3.6% 2.9% 3.4% 2.2% 3.0% 2.6% 1.8% 2.2% Coverage Ratio 7
Slide 20: Financial ratios – Consolidated (3/3)
Financial ratios – Consolidated (3/3) Yearly Q T D ( A n n u a liz e d ) Other Metrics 2009 2010 2011 2012 2013 Mar-13 Jun-13 Sep-13 Dec-13 Capital Adequacy Ratio 14.0% 15.0% 14.9% 14.8% 13.3% 14.5% 14.0% 13.8% 13.3% Loan / Deposits 73.7% 62.8% 57.5% 55.0% 50.0% 53.0% 51.1% 50.7% 50.0% Net Loans / A
Slide 21: Quarterly Trend Analysis
Quarterly Trend Analysis Bank Level (Stand Alone) 21
Slide 22: Profit before Tax
Profit before Tax 8.4 8.7 8.0 7.5 7.2 7.2 7.1 7.3 6.5 6.5 6.4 Rs Bn 6.6 6.0 5.9 5.9 5.2 5.0 5.2 4.5 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 22
Slide 23: Profit after Tax
Profit after Tax 6.0 5.7 5.5 4.9 5.0 4.7 4.7 4.5 4.4 4.3 4.2 Rs Bn 4.5 3.9 4.0 4.0 3.4 3.5 3.3 3.0 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 23
Slide 24: Deposits
Deposits 850 828 800 773 752 750 698 703 685 700 653 Rs Bn 650 613 614 594 600 557 550 529 500 Mar'11 Jun'11 Sep'11 Dec'11 Mar'12 Jun'12 Sep'12 Dec'12 Mar'13 Jun'13 Sep'13 Dec'13 24
Slide 25: Net Advances
Net Advances 399 391 387 375 369 364 363 363 358 355 352 Rs Bn 351 345 339 334 334 326 325 327 315 Mar'11 Jun'11 Sep'11 Dec'11 Mar'12 Jun'12 Sep'12 Dec'12 Mar'13 Jun'13 Sep'13 Dec'13 25
Slide 26: Net Interest Income
Net Interest Income 11.0 10.6 10.5 10.3 10.2 9.9 10.0 9.8 9.6 9.6 Rs Bn 9.5 9.4 9.5 9.2 9.0 9.0 8.8 8.5 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 26
Slide 27: Total Provision
Total Provision 3.0 2.6 2.3 2.4 1.9 1.6 1.8 1.0 1.1 Rs Bn 1.2 0.8 0.7 0.8 0.5 0.6 0.3 (0.0) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 (0.6) -0.1 27
Slide 28: Non Fund Income
Non Fund Income 6.0 5.5 5.3 4.8 4.9 4.6 4.6 4.1 4.0 3.9 Rs Bn 3.8 3.9 3.6 3.0 3.0 3.2 2.9 2.5 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 28
Slide 29: Gross Revenue
Gross Revenue 16.5 15.4 15.4 15.6 14.7 14.1 Rs Bn 13.8 13.6 13.7 13.8 13.4 13.2 13.4 13.0 12.6 12.9 12.2 12.0 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 29
Slide 30: Administrative Expenses
Administrative Expenses 7.3 6.9 6.9 6.5 6.5 6.5 6.2 6.2 6.1 5.8 Rs Bn 6.1 5.5 5.7 5.3 5.0 5.0 5.0 4.7 4.9 4.5 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 30
Slide 31: Forward-looking statements
The information contained herein reflects our latest business statement as at December 31, 2013. 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 variation
Slide 32: Thank You
_@BL UNITED BANK oo Thank You Gai 32