United Bank Limited · PSX:UBL

United Bank — FY2010 Earnings Presentation

31 slides from United Bank's earnings presentation, Feb 21, 2011

  1. Slide 1: United Bank Limited Performance Review FY 2010

    United Bank Limited Performance Review FY 2010 February 21, 2011 Abu Dhabi 1

  2. Slide 2: Key Highlights

    Keyy Highlights g g • PBT up by 26% at 17.7B while PAT up 21% yoy at Rs.11.2B. Consolidated PAT up p byy 16% at 11.0B – On standalone basis Q4 10 PAT is higher since last eight quarters • Net Interest income up 4% – Mainly y due to lower cost of funds ((2009: 5.4%;; 2010: 4.7%)) – Increase in averag

  3. Slide 3: Key Highlights

    Keyy Highlights g g • Provision charge of Rs 8.1 B, lower by 39%, – Significant improvement in net provision charge on QoQ basis. – Coverage ratio stand at 69%. 69% – Net credit loss ratio (NCL) improved from 3.2% in Dec’09 to 2.3% in Dec’10 • Operating expenses up by 7%; – Almost 60% (or Rs. 692 M)

  4. Slide 4: Share Info

    Share Info Standalone Consolidated Dec 2010 Dec 2009 Dec 2010 Dec 2009 EPS (Rs/share-annual.) 9.1 7.5 9.0 7.8 BV/share ((Rs/share) s/s e) 55.9 49.8 61.4 55.0 Price* - (Rs /share) 63.5 58.6 63.5 58.6 P/E 7.0x 7.8x 7.0x 7.5x P/BV 1.1x 1.2x 1.0x 1.1x # of shares 1,224M 1,224M 1,224M 1,224M * De c -10 P

  5. Slide 5: Income Statement (Standalone)

    Income Statement ((Standalone)) Q4 10 Q3 10 Var % FY 10 FY 09 Var % PKR bn Interest Earned 16 08 16.08 14 77 14.77 +9% 59 33 59.33 61 11 61.11 -3% 3% Interest Expensed (7.05) (6.20) -14% (25.22) (28.16) +10% Net Interest Income 9.03 8.57 +5% 34.11 32.94 +4% P i i Exp./Other Provision E /Oth writeoff

  6. Slide 6: Income Statement - Consolidated

    Income Statement - Consolidated Q4 10 Q3 10 Var % FY 10 FY 09 Var % PKR bn Net Interest Income 9 16 9.16 8 72 8.72 +5% 34 67 34.67 33 42 33.42 +4% Provision Exp./Other writeoffs (2.06) (2.15) +4% (8.22) (13.52) +39% Non Interest Income 3.15 2.66 +18% 10.89 12.76 -15% Total Revenue 10.25 9.23 +11% 37

  7. Slide 7: Key Ratios

    Key y Ratios UBL 2010 2009 Advances / Deposits 67% 78% Asset Quality 13.2% 10.2% Coverage 69.0% 70.8% NCL Ratio 2.3% 3.2% Yield on Advances 12.5% 13.3% Cost of Deposits 4.0% 4.8% Net Interest Margin 7.1% 6.9% Revenue / Expense Ratio 2.5 2.7 Non Fund Inc. / Total Revenue 23% 26% Return on Avg Assets

  8. Slide 8: Deposits Structure (Bank Level)

    Deposits p Structure (Bank ( Level)) Deposit Mix (YTD Dec 2010) ‐ Bank (Parent Company) Cost of Deposits YTD Dec'10 YTD Dec'09 Unisaver Plus – PKR 46bn Contribution 8% Period Avg.Yield Period Avg.Yield end Rs B /Cost end Rs B /Cost Fixed Deposits – PKR 162bn Saving deposits 148 3.8% 134 3.8% Other D

  9. Slide 9: Net Advances

    Net Advances % Net Advances-Rs.B Dec'10 Dec'09 Change Yield 10 Yield 09 Corporate Bank 148.5 150.1 -1% 13.4% 14.3% Commercial Bank * 80.7 81.2 -1% 15.1% 16.0% C Consumer B Bank k 15 7 15.7 24 3 24.3 -35% 35% 17 0% 17.0% 17 9% 17.9% Others 7.3 9.3 -22% 10.2% 12.6% Domestic 252.2 264.9 -5% 14.1% 15.1%

  10. Slide 10: Consumer Advances by Product

    Consumer Advances by y Product % Dec'10 Dec'09 Change Yield 10 Yield 09 Drive 6.2 11.2 -44% 15.8% 16.7% Address 2.4 3.1 -24% 19.8% 17.7% Credit Card 2.2 3.0 -27% 20.7% 21.4% Cashline 2.1 2.8 -27% 12.8% 17.7% Businessline 2.6 3.3 -22% 14.8% 17.1% Money 0.3 0.8 -67% 35.2% 22.1% o Total 15.7 5.7 24.3 .

  11. Slide 11: International Advances

    International Advances By Geography By Business - UAE Yemen, 8% Qatar, 13% NewYork, 0% Bahrain, 11% EPZ, 0% Corporate, 68% UAE, 68% Others, 6% Consumer, 26% Personal Abu Sharjah, loan, 18% Dhabi, 8% Others, 2% 24% Dubai, Baitna, 79% 68% 11

  12. Slide 12: Spread Analysis - Bank Level

    Spread p Analysis y – Bank Level Bank FY 2010 FY 2009 Avg.Yield Avg.Yield Rs B PE AVG IE /Cost PE AVG IE /Cost Avg Kibor - 6M 12.7% 13.1% Interest Earning Assets Performing Advances 313 319 40.0 12.5% 335 342 45.5 13.3% Corporate 135 137 18.3 13.4% 137 142 20.3 14.3% Commercial 25 23 3.4 14.5% 29 29

  13. Slide 13: Concentration of Advances - Standalone

    Concentration of Advances - Standalone Trading, 6% Airlines, 2% A ib i Agribusiness, 14% Automobile & Trans. Equip., 1% Textile, 17% Cement, 2% Chemical and pharmaceuticals, 2% Contractor / Telecom, 3% Constructor, 7% Sugar, 2% Financials, 1% Prod. & Transmission Food 3% Food, Energy, 11% Individual

  14. Slide 14: Non Markup / Return / Interest Income

    Non Markup / Return / Interest Income Non Interest Income ‐ Rs. M Q4'10 Q3'10 Var % FY'10 FY'09 Var % Fee, commission and brokerage income 1,627 1,603 2% 6,338 5,925 7% Dividend income 144 170 ‐15% 591 606 ‐3% Income from dealing in foreign currencies 456 505 ‐10% 1,654 1,214 36% Gain on sale of sec

  15. Slide 15: Operating Expenses

    Operating Expenses Operating Expenses ‐ Rs. M Q4'10 Q3'10 Var % FY'10 FY'09 Var % Personnel cost 1,859 1,842 ‐1% 7,465 7,751 4% Premises cost 752 745 ‐1% 2,909 2,665 ‐9% Outsourced service charges including sales commission 418 428 2% 1,516 1,313 ‐15% Advertisement and publicity 451 143 ‐215% 766 22

  16. Slide 16: E-banking Statistics

    E-banking g Statistics % E-Banking Dec-10 Dec-09 Dec-08 Dec-07 Change # of ATMs 436 412 354 +6% 326 # of Transactions (M) 16.4 14.6 11.7 +12% 9.5 Average transactions per day 45k 40k 32k +13% 26k Total transaction amount (Rs B) 101 84 63 +20% 48 Average transaction size (Rs 000) 6.1 5.7 5.4 +7% 5.0

  17. Slide 17: Financial ratios – Consolidated – 1/3

    Financial ratios – Consolidated – 1/3 Full Year Q T D ( A n n u a liz e d ) DuPont 2007 2008 2009 2010 Dec-09 Mar-10 Jun-10 S ep-10 Dec-10 1 Spread 5 2% 5.2% 5 1% 5.1% 5 5% 5.5% 5 5% 5.5% 6 2% 6.2% 5 6% 5.6% 5 6% 5.6% 5 5% 5.5% 5 5% 5.5% 2 Net Interest Margin 6.0% 6.1% 6.9% 7.1% 7.6% 7.1% 7.1% 7.0%

  18. Slide 18: Financial ratios – Consolidated – 2/3

    Financial ratios – Consolidated – 2/3 Asset Quality Full Year Q T D ( A n n u a liz e d ) 2007 2008 2009 2010 Dec-09 Mar-10 Jun-10 Sep-10 De c-10 Gross NPLs / Gross Loan 6 9% 6.9% 7 2% 7.2% 10 3% 10.3% 12 9% 12.9% 10 3% 10.3% 11 3% 11.3% 11 1% 11.1% 12 6% 12.6% 12 9% 12.9% Net NPLs / Gross Loan 1.9%

  19. Slide 19: Financial ratios – Consolidated – 3/3

    Financial ratios – Consolidated – 3/3 Yearly Q T D ( A n n u a liz e d ) Other Metrics 2007 2008 2009 2010 De c-09 Mar-10 Jun-10 Se p-10 De c-10 Capital Adequacy Ratio (St) 10.2% 9.9% 13.2% 14.5% 13.2% 13.2% 13.7% 14.4% 14.5% Tier-I CAR (St) 7.4% 5.8% 9.0% 10.3% 9.0% 8.9% 9.4% 10.0% 10.3% Loan / Dep

  20. Slide 20: Quarterly Trend Analysis - Bank Level

    Quarterly Trend Analysis Bank Level Le el 20

  21. Slide 21: Profit before Tax

    Profit before Tax Prof it bef ore Tax 6.0 4.8 4.3 4.3 4.4 4.8 4.1 3.9 3.2 3.6 2.8 Rs B 24 2.4 1.2 0.1 - Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 21

  22. Slide 22: Profit after Tax

    Profit after Tax Prof it Af ter Tax 4.0 3.1 2.8 2.8 2.9 3.0 3 0 2.4 2.5 21 2.1 1.8 2.0 Rs B 10 1.0 - -0.6 (1.0) Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 22

  23. Slide 23: Deposits

    Deposits p 580 551 552 524 509 500 492 Rs B 484 491 496 469 468 452 451 440 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 23

  24. Slide 24: Net Advances

    Net Advances 380 371 368 369 360 352 354 358 Rs B 343 347 335 334 336 331 325 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 24

  25. Slide 25: Net Interest Income

    Net Interest Income 9.5 9.1 9.1 9.0 8.6 8.2 83 8.3 8.5 8.1 Rs B 7.9 8.0 7.7 7.5 7.2 7.0 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 25

  26. Slide 26: Net Provision

    Net Provision * 60 6.0 4.7 4.4 4.8 36 3.6 30 3.0 2.7 Rs B 2.2 2.1 2.0 2.2 2.4 1.8 1.2 - Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 * Excluding other operational Write‐ Write‐offs 26

  27. Slide 27: Non Fund Income

    Non Fund Income 50 5.0 4.0 4.2 3.2 3.4 2.8 Rs B 2.6 2.4 2.4 2.6 2.2 2.0 1.6 1.8 1.0 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 27

  28. Slide 28: Gross Revenue

    Gross Revenue 13.0 12 3 12.3 11.9 11.7 12.0 11.1 10.3 10 7 10.7 11.0 10.5 Rs B 10.1 10.0 8.8 9.0 8.0 8 0 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 28

  29. Slide 29: Administrative Expenses

    Administrative Expenses p 52 5.2 4.9 4.9 4.6 4.4 Rs B 4.3 4.4 4.2 4.3 4.1 4.2 4.1 4.1 3.9 3.8 Dec-08 Mar 09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 29

  30. Slide 30: Forward-looking statements disclaimer

    The information contained herein reflects our latest business statement as at December 31, 2010 Except the historical information contained herein, statements in this Release which hi h contain i wordsd or phrases h such h as ‘will’, ‘ ill’ ‘would’, ‘ ld’ ‘indicating’ ‘i di i ’ expected d to’’ etc.,

  31. Slide 31: Thank You

    | ©BL UNITED BANK uo Thank You ©BL

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