United Bank Limited · PSX:UBL
United Bank — Q3 2013 Earnings Presentation
32 slides from United Bank's earnings presentation, September 2013
Slide 1: United Bank Limited Performance Review
United Bank Limited Performance Review September 2013 1
Slide 2: Key Highlights
Key Highlights Standalone PAT down 7% YoY to Rs 12.9 bn. Consolidated PAT down 6% YoY to Rs 14.0 bn Net Interest income down 6% YoY to Rs 27.4 bn ■ Net Interest Margin reduced by 125 bps to 5.3% (Sep 2012: 6.5%) subsequent to the reductions in the discount rate in the last 12 months and the increase
Slide 3: Key Highlights
Key Highlights Improving Asset Quality , NPL recoveries and control over costs remain in focus Provisions and Loan Losses are down by 55% YoY to Rs 1.5 Bn in Sep’13 ■ Asset quality improved to 12.4% in Sep’13 as compared to 13.4% in Dec’12. ■ Gross NPLs have reduced by Rs 4.9Bn (8.6%) in 2013, with
Slide 4: Key Highlights
Key Highlights Strategy to grow Core Domestic deposits continues ■ Average Core deposits have grown by 17% YoY. Whilst average low cost deposits grew by 13%. ■ On a period end basis, core and low cost deposits have grown by 7% during 2013. ■ Core deposits market share stands at 7.4% in Sep’13, which
Slide 5: Income Statement - Standalone
Income Statement - Standalone YTD Sept YTD Sept Var % Q3'13 Q2'13 Var % PKR Bn '13 '12 Interest Earned 53.43 55.47 -4% 18.08 18.35 -2% Interest Expensed (26.07) (26.33) 1% (8.55) (9.30) 8% Net Interest Income 27.36 29.14 -6% 9.52 9.05 5% Non Interest Income 13.25 13.17 1% 4.62 4.78 -3% Total Revenue
Slide 6: Income Statement - Consolidated
Income Statement - Consolidated YTD Sept YTD Sept Var % Q3'13 Q2'13 Var % PKR Bn '13 '12 Interest Earned 55.49 56.69 -2% 18.77 19.01 -1% Interest Expensed (27.07) (26.82) -1% (8.85) (9.65) 8% Net Interest Income 28.42 29.87 -5% 9.92 9.36 6% Non Interest Income 15.36 14.85 3% 5.11 5.16 -1% Total Reve
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 100 155 24 145 78 21 Cons. Equity Sep’13 – Rs 108 Bn 135 85 Book Value - Rs. Bn Cons. BV - Rs 88.3 per share 66 Book value per share 125
Slide 8: Key Ratios – Bank (Standalone)
Key Ratios – Bank (Standalone) Balance Sheet Ratios Dec-12 Sep-13 Adva nces / Depos i ts 56.1% 51.7% As s et Qua l i ty 13.4% 12.4% Covera ge 81.8% 90.6% YTD YTD Financial Ratios Q2'13 Q3'13 Sep'12 Sep'13 Yi el d on P. Adva nces 12.0% 9.5% 9.6% 9.4% Cos t of Depos i ts 4.4% 3.8% 3.8% 3.8% Net Intere
Slide 9: Deposits Structure (Bank level)
Deposits Structure (Bank level) Cost of Deposits Deposits - Bank Dec'12 Sep'13 5.2% PE - PE - Bank Rs.Bn COF% Rs.Bn COF% 4.4% Domestic deposits 540 4.6% 575 4.0% 3.6% International deposits 158 3.4% 198 3.2% 2.8% Total Bank 698 4.3% 773 3.8% 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 Sep'13 Change Corporate Bank * 229.2 219.9 -4% Commercial 15.4 10.7 -31% Consumer 7.9 7.8 -2% Others 8.4 10.4 24% Total Domestic 260.9 248.7 -5% International 103.5 120.7 +17% Bank 364.4 369.4 1% International US$ Mn 1,068.4 1,140.7 +7% * of which commodit
Slide 11: International Advances
International Advances By Geography By Business - UAE Yemen, 11% Qatar, 12% NewYork, 0% Bahrain, 11% Corporate, 67% EPZ, 0% Others, 20% UAE, 66% Consumer, 13% Personal Sharjah, Others, 2% Abu loan, 7% 8% Dhabi, 36% Dubai, Baitna, 91% 56% 11
Slide 12: Spread Analysis – Bank Level
Spread Analysis – Bank Level Bank 9M 2012 9M 2013 Avg.Yield Avg.Yield Rs Bn PE AVG IE /Cost PE AVG IE /Cost Avg KIBOR - 3M 11.6% 9.3% Interest Earning Assets Performing Advances 328 316 28.3 12.0% 343 331 23.5 9.5% Corporate 158 154 15.0 13.0% 151 155 11.8 10.2% Commercial 16 19 2.1 15.0% 17 17 1.7
Slide 13: Concentration of Advances – Bank level (September’13)
Concentration of Advances – Bank level (September’13) Tra di ng, 5% Ai rl ines, 2% Agri business, 14% Automobile & Tra ns. Equi p., 1% Textil e, 15% Cement, 1% Tel ecom, 2% Chemi cal and pha rmaceuticals, 1% Suga r, 3% Contra ctor / Cons tructor, 7% Prod. & Tra nsmission Energy, 16% Fi nancials, 3%
Slide 14: Non Markup / Return / Interest Income
Non Markup / Return / Interest Income Non Fund Income - Rs. Mn 9M' 13 9M' 12 Var % Q3'13 Q2'13 Var % Fee, commission and brokerage income 7,250 5,914 23% 2,634 2,272 16% Dividend income 1,062 1,521 -30% 340 174 96% Income from dealing in foreign currencies 1,553 1,533 1% 763 396 92% Gain / (loss) on
Slide 15: Fee Commission and Brokerage Income
Fee Commission and Brokerage Income Fee Commission Income - Rs. Mn 9M' 13 9M' 12 Var % Q3'13 Q2'13 Var % Commission on trade 1,202 1,204 0% 448 400 12% Commission on consumer loan 487 543 -10% 192 139 38% Commission on remittance / uniremote 1,213 793 53% 450 388 16% Corporate service chgs/finance f
Slide 16: Administrative Expenses
Administrative Expenses Administrative Expenses - Rs. Mn 9M' 13 9M' 12 Var % Q3'13 Q2'13 Var % Personnel Cost 7,841 7,456 -5% 2,629 2,611 -1% Premises Cost 2,919 2,511 -16% 1,015 978 -4% Outsourced service charges 2,178 1,570 -39% 805 704 -14% including sales commission Advertisement and publicity 3
Slide 17: UBL OMNI – Branchless Banking
UBL OMNI – Branchless Banking UBL OMNI • UBL Omni is the market leader in branchless Commercial Launch: April 2010 No of Accounts: 1.3 Million+ banking which is a rapidly growing industry in No of Agents: 12,000+ Pakistan which has over 80% unbanked population. No of cities/towns: 650+ No of transac
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 S ep 13* Dec-12 Mar-13 Jun-13 S ep-13 Spread (Standalone) 1 5.5% 5.5% 5.6% 4.7% 3.9% 4.4% 4.0% 3.8% 4.0% Net Interest Margin (Standalone) 2 6.9% 7.0% 7.2% 6.3% 5.3% 6.0% 5.4% 5.0% 5.2% 3 Non Interest Yie
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 Sep 13 Dec-12 Mar-13 Jun-13 Sep-13 Gross NPLs / Gross Loan 10.3% 12.9% 13.4% 13.6% 12.5% 13.6% 13.8% 13.4% 12.5% Net NPLs / Gross Loan 3.0% 3.6% 2.9% 3.2% 1.8% 3.2% 3.0% 2.6% 1.8% 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 Sep 13* Dec-12 Mar-13 Jun-13 Sep-13 Capital Adequacy Ratio 14.0% 15.0% 14.9% 14.8% 13.8% 14.8% 14.5% 14.0% 13.8% Tier-I CAR 9.5% 10.4% 10.6% 10.2% 9.9% 10.2% 10.2% 10.1% 9.9% Loan / Deposits 73
Slide 21: Quarterly Trend Analysis
Quarterly Trend Analysis Bank Level (Stand Alone) 21
Slide 22: Profit before Tax
Profit before Tax 8.0 7.5 7.2 7.2 7.1 7.3 6.5 6.5 6.4 6.6 6.0 Rs Bn 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 22
Slide 23: Profit after Tax
Profit after Tax 5.5 4.9 5.0 4.7 4.7 4.5 4.4 4.3 4.5 4.2 Rs Bn 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 23
Slide 24: Deposits
Deposits 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 24
Slide 25: Net Advances
Net Advances 375 369 364 363 363 358 355 352 351 345 Rs Bn 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 25
Slide 26: Net Interest Income
Net Interest Income 11.0 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 26
Slide 27: Total Provision
Total Provision 3.0 2.6 2.3 2.4 1.9 1.6 1.8 Rs Bn 1.0 1.1 1.2 0.8 0.7 0.8 0.5 0.6 0.3 - Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 27
Slide 28: Non Fund Income
Non Fund Income 6.0 5.5 5.3 4.8 4.6 4.6 4.1 4.0 Rs Bn 3.8 3.9 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 28
Slide 29: Gross Revenue
Gross Revenue 16.5 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 29
Slide 30: Administrative Expenses
Administrative Expenses 6.9 6.5 6.5 6.5 6.2 6.2 6.1 6.1 5.8 Rs Bn 5.5 5.7 5.3 5.0 5.0 5.0 4.9 4.7 4.5 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 30
Slide 31: Forward-looking statements
The information contained herein reflects our latest business statement as at September 30, 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 variatio
Slide 32: Thank You
_@BL UNITED BANK oo Thank You Gai 32