United Bankers Oyj Class A · OMXHEX:UNITED
United Bankers Oyj Class A — FY2023 Earnings Presentation
28 slides from United Bankers Oyj Class A's earnings presentation, Feb 16, 2024
Slide 1: Record profit supported by new strategic funds
United Bankers Plc Result 2023 Record profit supported by new strategic funds Patrick Anderson, CEO 16 February 2024
Slide 2: Contents
Contents ▪ Highlights for 2023 ▪ Key financial figures and performance ▪ Positive development in wealth management ▪ Growth from new funds ▪ Low activity in capital markets ▪ Aiming for climate-resilient growth ▪ Outlook and guidance 2 Public
Slide 3: Highlights for 2023
Highlights for 2023 ▪ The strongest year in the company's 37-year history in terms of revenue and operating profit ▪ Assets under management up by around four per cent ▪ Real asset-focused solutions and strategically important new funds enabled stable performance ▪ Forest Industry Green Growth Fund
Slide 4: Key financial figures
Key financial figures AUM Revenue €4.6 bn. €52.1 Meur +3.9% +7.4% Adjusted operating profit Earnings per share €16.9 Meur €1.24 +2.2% +4.1% 4 Public
Slide 5: A turbulent operating environment
A turbulent operating environment ▪ Record policy rate hikes and decisive action by central ▪ Despite the economic and geopolitical turmoil, the banks to bring inflation under control were the key environment for forest investments remained stable in themes in the markets United Bankers' forest fund
Slide 6: July-December 2023
July-December 2023 ▪ The company achieved the best half-year result in its history ▪ Fee income from forest funds played a significant role in the financial performance in the latter half of the year ▪ Profitability development returned to an upward trend towards the end of the year as the company's
Slide 7: Record revenue and profit
Record revenue and profit ▪ Despite market headwinds, United Bankers managed to increase its revenue and profit to another record level Revenue ▪ Positive development was mainly driven by an increase in fund management fees +7.4% ▪ Fee income from structured investment loans grew clearly ▪ Capital m
Slide 8: Stable growth in revenue
Stable growth in revenue 8 Public
Slide 9: Positive development in wealth management
Positive development in wealth management ▪ United Bankers’ wealth management fee income remained on growth track ▪ Business success now on an even broader footing thanks to the new funds ▪ Net fee income from wealth management increased by 5.2 per cent compared to the preceding year ▪ Management fe
Slide 10: Performance of assets under management
Performance of assets under management ▪ Group’s assets under management increased to EUR 4.6 billion ▪ Capitals continued to flow into company's most profitable funds ▪ Sales of wealth management services and net fund subscriptions remained positive ▪ Especially UB Forest Industry Green Growth Fund
Slide 11: Share of funds from AUM
Share of funds from AUM ▪ 63 per cent of assets under management, or EUR 2.9 billion, were invested in funds at the end of the year ▪ Capital in real asset funds increased to EUR 1.9 billion ▪ Real asset funds accounted for 66 per cent of total fund capital and 41 per cent of total assets under mana
Slide 12: AUM breakdown
AUM breakdown AUM BREAKDOWN AUM ASSET CLASS BREAKDOWN Other Other Real Funds Stocks Assets Asset Management (without funds) Fixed Income
Slide 13: Sales of wealth management products
Sales of wealth management products ▪ Total sales of wealth management products and services amounted to EUR 501 million ▪ Net subscriptions to funds amounted to EUR 187 million (including investment commitments of LP funds) ▪ Sales of UB360 and Private Investment Office (PIO) asset management strat
Slide 14: Forests played a major role in real assets
Forests played a major role in real assets ▪ Real asset-focused solutions and strategically important new funds provided stable performance even in volatile market conditions ▪ Real asset funds accounted for 66 per cent of total fund assets ▪ The company's success will continue to be based on a fund
Slide 15: Headwinds in the real estate market
Headwinds in the real estate market ▪ Soaring inflation and rapidly rising interest rates brought headwinds to the Nordic real estate market ▪ Significant redemptions from the Finnish real estate funds during 2023 ▪ Redemptions from United Bankers' real estate funds during the year amounted to just
Slide 16: Strong performance by forest funds
Strong performance by forest funds ▪ Forest sector funds collected positive net subscriptions of around EUR 42 million during the year ▪ In early July, the selection of forest funds was strengthened with the launch of a new fund for professional investors, UB Nordic Forest Fund IV LP ▪ Over the year
Slide 17: Growth from new funds
Growth from new funds ▪ As a major forest owner, United Bankers wants to offer investors the opportunity to participate in the value chain of the wood processing industry and, above all, in growth projects that support the resource-efficient use of wood ▪ The UB Forest Industry Green Growth Fund I,
Slide 18: Low activity in capital markets
Low activity in capital markets ▪ The volume and value of Nordic M&A and capital markets transactions fell significantly during the year compared to the previous year ▪ Increased economic uncertainty and rising interest rates and the resulting challenges in valuing companies weighed on overall deman
Slide 19: Aiming for climate-resilient growth
Aiming for climate-resilient growth ▪ United Bankers published its climate roadmap in the autumn and committed to setting climate targets in line with the SBT initiative ▪ The company was among the first financial institutions in Finland to commit to setting short- and long-term climate targets unde
Slide 20: Outlook and guidance for 2024
Outlook and guidance for 2024 ▪ High interest rates will continue to weigh on economic growth prospects at least in the first half of 2024 The company ▪ Central banks are expected to start cutting policy rates in the spring or summer at the latest estimates ▪ For investors, the main risk at the mome
Slide 21: Proposal for distribution of funds and the AGM
Proposal for distribution of funds and the AGM ▪ The Board of Directors’ proposal for the distribution of funds is a total of EUR 1.00, of which ▪ dividend of EUR 0.50 per share, to be paid in April 2024 ▪ equity repayment of EUR 0.50 per share, to be paid in October 2024 ▪ In the future, the compan
Slide 22: United Bankers' share price development 2023
United Bankers’ share price development 2023 22 Public
Slide 23: CEO Patrick Anderson and investor relations contacts
CEO Patrick Anderson patrick.anderson@unitedbankers.fi tel. +358 400 244 544 Chief Communications Officer Inka Noramaa inka.noramaa@unitedbankers.fi tel. +358 40 576 4202 Investor Relations Manager Marjo Åström marjo.astrom@unitedbankers.fi tel. +358 40 507 6546 Investor Relations ir@unitedbankers.f
Slide 24: Appendixes
Appendixes
Slide 25: Key figures
Key figures * The percentage change has been calculated using the actual figures, the figures shown in the table have been rounded. ** The number of personnel stated has been converted to full-time equivalent 25 Public
Slide 26: Key figures of the income statement
Key figures of the income statement 26 Public
Slide 27: United Bankers' investment funds
United Bankers’ investment funds 27 Public
Slide 28: Responsibility at the heart of the strategy
Responsibility at the heart of the strategy Sustainability focus areas Sustainable products Meaningful and Reliable and and services inspiring work transparent governance Responsibility integrated into our investment activities We offer solutions for We want to be ambitious sustainable investment in