United Bank For Africa Plc · NSENG:UBA
United Bank For Africa — H1 2023 Earnings Presentation
37 slides from United Bank For Africa's earnings presentation, September 2023
Slide 1: H1 2023 Investor Conference Call Presentation
H1 2023 Investor Conference Call Presentation September 2023
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: Contents
CONTENTS 01 About UBA 02 Operating Environment 03 Sustainability & Governance 04 Financial Performance 05 Payment Business 06 Outlook/Guidance 07 Appendices
Slide 4: Contents
CONTENTS 01 About UBA > 02 Operating Environment 03 Sustainability & Governance 04 Financial Performance 05 Payment Business 06 Outlook/Guidance 07 Appendices
Slide 5: Who We Are
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance WhoCredentials Our We Are 70+ years of strength, stability & stewardship Disciplined, customer-centric strategy Product leadership & innovation Proven expertise and capacity in key se
Slide 6: Promoting Financial Services across Africa
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Promoting Financial Services across Africa OUR MISSION African Footprint OUR VISION Burkina Faso Benin Chad To be the undisputed To be a role model for African leading and dominant bu
Slide 7: International Presence beyond Africa
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance International Presence beyond Africa (Our unique spread) USA (New York) United Kingdom (London) France (Paris) UAE (Dubai) • Facilitating payments by leveraging on • UBA UK is a direc
Slide 8: Our Service Network
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Our Service Network Locations Channels People POS ATM 409,301 2,622 20 African Countries Staff + 25,000+ UK (London) USA (New York) Business Offices Card Customers France (Paris) 1,00
Slide 9: Financial Highlights
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Financial Highlights Assets Net Loans Deposits Key Ratios ₦15.4 trn ₦4.7 trn ₦12.6trn CAR – 36% [USD20.3bn] [USD6.2bn] [USD16.7bn] 42% 36% 40% LR - 71% NIM – 6% Equity Earnings PBT RO
Slide 10: UBA Plc Credit Ratings by recognized Rating Agencies
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance UBA Plc Credit Ratings by recognized Rating Agencies National National National National • Short-term: ngA-2 • Short-term: A1+(NG) • Short-term: F1+(nga) • Short-term: Aa- • Long-term
Slide 11: About UBA
01 About UBA 02 Operating Environment > 03 Sustainability & Governance 04 Financial Performance 05 Payment Business 06 Outlook / Guidance 07 Appendices
Slide 12: Operating Environment
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Operating Environment Real GDP SSA 3.9 • Continued uncertainty for commodity prices and global economic 3.9 activity arising from ongoing geopolitical tensions, particularly the % 1.5
Slide 13: Nigeria Operating Context – Weak Outcomes in H1 2023
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Nigeria Operating Context – Weak Outcomes in H1 2023 Macroeconomy Political & Public Policy ➢ GDP Growth settled at 2.51% in Q2 ➢ A new administration was sworn in on 2023 - 11th cons
Slide 14: Sub Saharan Africa
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Sub Saharan Africa Economic Growth Fiscal Policy Inflation ▪ Growth has been divergent across ▪ Fiscal policy remained constrained across ▪ Inflation has remained structurally above i
Slide 15: Operating Environment
01 About UBA 02 Operating environment 03 Sustainability & Governance > 04 Financial Performance 05 Payment Business 06 Outlook/Guidance 07 Appendices
Slide 16: Our ESG Approach and Impact towards Sustainability
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Our ESG Approach and Impact towards Sustainability Approach Impact Governance Strategy Number of SMES Carbon Emission (Scope supported 1 & Scope 2 Nigerian • ESG is embedded in our vi
Slide 17: UBA Foundation - Touching lives
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance UBA Foundation - Touching lives Education Facilitating educational projects and bridging the Empowerment literacy gap on a pan- African scale. Sponsors of several skills- acquisition
Slide 18: Sustainability & Governance
01 About UBA 02 Operating Environment 03 Sustainability & Governance 04 Financial Performance > 05 Payment Business 06 Outlook / Guidance 07 Appendices
Slide 19: Financial Highlights
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Financial Highlights Income Statement (N’million) June 2023 June 2022 % Change Gross Earnings 981,775 372,358 163.7 • Remarkable growth in gross earnings, driven by double-digit growt
Slide 20: Solid Earnings Profile
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Solid Earnings Profile Interest Income (₦'bn) Components of Interest Income 66.5% 428 Gross Earnings (₦'bn) 9% Cash and bank balances 257 163.7% 45% Loans 982 46% Investment securitie
Slide 21: Elevated Trading and Revaluation Gains
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Elevated Trading and Revaluation Gains Trading & Foreign Exchange Components of Trading & Foreign Exchange Gains Gains (₦'bn) 4,474% 418 ₦25.4bn ₦15.2bn ₦377.6bn 79% 2% 1,942% (₦14.2b
Slide 22: Steady growth in fee and transactional income
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Steady growth in fee and transactional income Fees & Commission Income Contributions to Fees & Commission Income (₦'bn) 31.3% 126 96 ₦51.1bn ₦21.3bn ₦15.9bn ₦13.0bn ₦9.9bn ₦9.3bn ₦5.6
Slide 23: Key indices trending in the right direction
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Key indices trending in the right direction Profitability (₦'bn) Cost to Income Ratio Yield on Assets • Notable improvements in the 371% 438% profitability indices and cost- to-income
Slide 24: Robust Balance Sheet with well-diversified Asset Mix
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Robust Balance Sheet with well-diversified Asset Mix Total Asset • Balance sheet size driven by real growth (58%) and impact of exchange rate harmonization (42.3%). ₦15.4trn • Well-di
Slide 25: Low-Cost Funding Base
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Low-Cost Funding Base Total Deposits • Customer deposits continue to dominate the Bank’s funding mix (82%), which demonstrates combined efforts ₦12.6trn at deepening our wallet share
Slide 26: Resilient and diversified loan portfolio
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Resilient and diversified loan portfolio Loan Distribution by Sector/Industry Jun’23 Dec’22 Loan Distribution by Geography 4% General Commerce 13.8% 17.3% Government 10.2% 11.5% 31% O
Slide 27: Asset Quality supported by modest NPL ratio
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Asset Quality supported by modest NPL ratio Loan Staging Trend NPL & Coverage Ratio Trend 3.3% 3.1% 3.2% 187% 12.3% 14.6% 17.0% 159% 116% 84.4% 82.2% 79.8% 3.3% 3.1% 3.2% HY'2023 FY'2
Slide 28: Sustained Growth across Our African Markets
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Sustained Growth across Our African Markets Revenue Growth by Region (₦’bn) Regional Contribution 75% 147.4 32% 32% 67% Revenue ₦257.3bn ₦151.2bn 84.0 54% 81.1 57% 56% 48.5 11% 12% 28
Slide 29: Payment Business
01 About UBA 02 Operating Environment > 03 Sustainability & Governance > 04 Financial Performance 05 Payment Business > 06 Outlook / Guidance 07 Appendices
Slide 30: Our Key Payment Channels and offerings (1/2)
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Our Key Payment Channels and offerings (1/2) With *919# (our USSD UBA Mobile App UBA Internet Banking Banking) customers provides control, is an integrated single can open a support a
Slide 31: Our Key Payment Channels and offerings (2/2)
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Our Key Payment Channels and offerings (2/2) UBA ATMs are strategically located UBA Cardless The UBA Contactless and equipped to Withdrawal Services Payment effectively serve our The
Slide 32: Digital Channels
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Digital Channels Chat Banking Internet Banking Cards Subscription (M) 19% (4.3 vs 3.6) Subscription (M) 31% (5.9 vs 4.5) Subscription (M) 6% (15.1 vs 14.2) Count (M) 88% (7.7 vs 5.8)
Slide 33: Digital Banking Income
About Operating Sustainability & Financial Financial Payment Payment Outlook/ UBA Environment Governance Performance Performance Business Business Guidance Digital Banking Income (N’bn) 53.7% 25.7% 57.2 37.2 29.6 H1 2023 H1 2022 H1 2021 • Our investments in state-of-the-art technology continue to yi
Slide 34: Supporting Pan-African payment System
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance Supporting Pan-African payment System About PAPSS UBA-PAPSS Partnership UBA stands among the pioneer African banks to PAPSS serves as a cross-border financial 1 integrate with this fi
Slide 35: Outlook/Guidance
01 About UBA 02 Operating Environment 03 Sustainability & Governance 04 Financial Performance 05 Payment Business 06 Outlook/Guidance > 07 Appendices
Slide 36: FY2023 Guidance
About Operating Sustainability & Financial Payment Outlook/ UBA Environment Governance Performance Business Guidance FY2023 Guidance FY 2022 H1 2023 FY 2023 Achieved Achieved Guidance Deposit Growth 22.9% 40% ~45% Loan Growth 21.4% 36% ~40% Cost of Risk 0.6% 3.4% ~4% Non-Performing Loan Ratio 3.1% 3
Slide 37: Thank You
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