UBL Overview Presentation

7/30/2019 UBL Overview Presentation

1/19

HK000MSI_Roadshow

United Bank LimitedUnited Bank Limited


2/19

2

Investment HighlightsInvestment Highlights

Broad and UniqueBroad and Unique

Distribution NetworkDistribution Network

Strong RevenueStrong Revenue

DiversificationDiversification

DriversDrivers

Strong Asset QualityStrong Asset Quality

PositionPosition

High Calibre andHigh Calibre andExperiencedExperienced

Management TeamManagement Team

Attractive SectorAttractive Sector

FundamentalsFundamentals

Support GrowthSupport Growth

1 2

45

6

Leading ConsumerLeading Consumer

Finance FranchiseFinance Franchise

3


3/19

3

Robust GDP growth and increasing income

levels

Strong regulatory framework, focus on assetquality

Low consumer loan penetration presents

significant opportunities

Favorable demographics and consumption

trend

Attractive Sector Fundamentals Support GrowthAttractive Sector Fundamentals Support Growth

Source: Company reports; SBP, Banking System Review

(1) Represents 2004 June 2007 CAGR

(2) Represents June 2007 figures

1

Macroeconomic HighlightsMacroeconomic Highlights Industry GrowthIndustry Growth

Loan Growth (1)

15.0%

Bank Sector ROAE(2)

20.6%

2007 GDP

7.0%

Banks Sector ROAA(2)

2.0%

3,043

2004 Jun'07

Assets (PKR bn) Loans (PKR bn) Deposits (PKR bn)

CAGR:1

8%

CAGR:1

5%

CAGR:1

5%

1,630

2,484

2004 Jun'07

2,393

3,682

2004 Jun'07

4952


4/19 4

Broad and Unique Distribution NetworkBroad and Unique Distribution Network2

Transform branches from deposit focus

to sales and customer service oriented

170 branches already restructured

Leverage branch networks as a

distribution channel to increase cross

selling opportunities

Synergize with core banking

application

Implementation of new core bankingsystem

Provide and negotiate real-time

customer and product data to all

branches

Robust, intelligent control and riskmanagement

Business Process Reengineering

P

roxima

Genesis

RepublicRepublic

of Yemenof Yemen

BahrainBahrain

SwitzerlandSwitzerland

OmanOman

UAEUAE

UKUK

USUS

International Branches

17

LahoreLahore

IslamabadIslamabadPeshawarPeshawar

QuettaQuetta

SialkotSialkot

FaisalabadFaisalabad

HyderabadHyderabad

MultanMultan

KarachiKarachi

Sindh

220

Baluchistan

41

Punjab

593

NWFP153 Azad Kashmir

71

ATMs

326

Domestic Branches

1,078

Most Internationally Focused Bank in PakistanDomestic and International ReachDomestic and International Reach Branch Network UpgradeBranch Network Upgrade

Source: Company reports, as of December 31, 2007

QatarQatar


5/19 5

21%

12%

9%10%

13%

Auto Credit Card Housing *Personal Total

Consumer

Leading Consumer Finance FranchiseLeading Consumer Finance Franchise

Consumer LoansConsumer Loans --

Market Share (JunMarket Share (Jun07)07)Credit CardCredit Card

Products yieldProducts yield

(Dec(Dec07)07)

* Personal loan includes Cashline, Businessline & Money

3

First Among the Big 5 Domestic Banks to Launch Consumer Banking

13% Market Share within

3 Years of Launch (2004)

13%

25%

13%

17%16%

A uto C redit

Card

H o us ing *P e rs o na l T o t al

consumer

Rs 47bn Total Consumer portfolio

Key Highlights

Over 200,000 credit cards issued

Introduced first ever Smart Chip

credit card

First ever chip picture card in

Pakistan


6/19 6

Strong Revenue Diversification DriversStrong Revenue Diversification Drivers

Investment Banking

Biggest investment bank in Pakistan

First authorized derivative dealer in

the country

UBL Fund Managers

PKR33 bn of assets undermanagement

5 different funds, including 2 Shariah-

compliant fund

UBL Insurers

Launched in Dec 2006

Set-up as a non life insurance

company

Synergies expected from UBL retail &

corporate banking products

Non Interest Income (PKR mm)Non Interest Income (PKR mm) Expansion into NonExpansion into Non--Banking RevenueBanking Revenue

4

2,888

3,9094,799

5,899

4,819

5,372

7,262

9,931

2004 2005 2006 2007

Fee and Commission Income

2004

2007C

AGR:27%

Implementing Universal Banking Model

Source: UBL Consolidated


7/19 77


Offers the full spectrum of services; mostspecialized domestic player with dedicated desks for

DCM/Syndications, Equity & Corporate Advisoryand Project Finance

Prominent project financier for the domestic powersector, with projects of over US$ 1.1b closed overthe last 2 years

Awarded The Largest Corporate Finance House

by

the CFA Association of Pakistan for 3 consecutiveyears (2003-2005)

Executed Pakistans largest domestic projectfinance facility, largest syndicated loan and largestleveraged buyout transaction to-date

Only domestic bank that is an AuthorizedDerivatives Dealer and has primary membership on

the International Swaps and Derivatives Association

Largest Investment BankLargest Investment Bank (FY2003(FY2003--FY2005)FY2005) Key HighlightsKey Highlights

58,61153,307

45,060

156,462

2004 2005 2006 2007

No. ofTransactions

18 19 13 23

Transaction Volume (PKR mm)

#1

4

Recognized Expertise in Investment Banking#1

Source: Company reports


8/198UBL - Consolidated


30

39

64 71

13%13%

18%17%

-

16

32

48

64

80

2004 2005 2006 2007

RsB

0%

4%

8%

12%

16%

20%

Deposits Contribution to Bank

21

26

39

64

14%

12%

15%

21%

-

14

28

42

56

70

2004 2005 2006 2007

RsB

0%

4%

9%

13%

18%

22%

Advances Contribution to Bank

DepositsDeposits

4

International Capabilities and Core Competency

1.2

1.9

2.5

3.324%

20%17%

24%

-

0.7

1.4

2.1

2.8

3.5

2004 2005 2006 2007

0%

5%

10%

15%

20%

25%

Profit (PBT) Contribution to Bank

AdvancesAdvances Profit (PBT)Profit (PBT)

2004

2007C

AGR:33

%

2004

2007C

AGR:45

%

2004

2007C

AGR:40

%


9/199

Asset Quality PositionAsset Quality Position

7.1%

12.5%

7.7%

8.3%

11.6%

6.9%6.2%

6.9%

2004 2005 2006 2007

Low Gross NPL RatioLow Gross NPL Ratio Adequate CapitalizationAdequate CapitalizationHigh Coverage RatioHigh Coverage Ratio

Source: Company reports, SBP

Note: 2007 industry average as of 1H07 (SBP Banking System Review)

70%

77% 78%75%

79%

85%83%

78%

2004 2005 2006 2007

12.1%

10.7%

12.2% 12.4%

7.9% 7.7%

8.9% 8.8%

2004 2005 2006 2007

CAR ratio Tier 1

5

Improving Asset Quality Dynamics, Better than Industry Average Position

Industry Average UBL Industry Average UBL


10/1910

Deposit StructureDeposit Structure

Deposit MixDeposit Mix Fixed DepositsFixed Deposits (1)(1)


(1) Includes domestic fixed deposits only

4744

28

6

0

80

72

26

13

59

2003 2004 2005 2006 2007

Consumer Loans Fixed Deposits

Current Deposits

Contribution 28%

Cost 0.0%

Other Deposits

Contribution 2%

Cost 0.4%

Savings Deposits

Contribution 38%

Cost 2.8%

Total Deposits = PKR 412 bn

Cost of Deposits = 3.6%CASA = 66%

Fixed Deposits

Contribution 32%

Cost 7.4%


11/19

11

High Calibre and Experienced Management TeamHigh Calibre and Experienced Management Team6

Sustained ProfitabilitySustained Profitability


(1) Business as usual ratios

Superior Growth (PKR bn)Superior Growth (PKR bn)

Name PositionGlobal BankExperience

Years ofBank

Experience

Atif R. Bokhari President & ChiefExecutive Officer

Bank of America 23

AameerKarachiwalla

CFO & GroupExecutive GlobalShared Services

Citibank 19

Ali Sameer Group Executive,

Risk & Credit Policy

Robert Fleming 22

MohammadAsghar

Group ExecutiveRetail Bank

- 39

Hasan Raza Group Executive,Corporate Bank

Bank of America 18

WajahatHusain

Head Of Middle East Union NationalBank,Mashreq

Bank

23

Saeed Iqbal Head of InvestmentBanking

ANZGrindlays

16

Najeeb

Agrawalla

Group Head

Marketing - RetailBank

Amercian

Express

12

21.2%28.3% 33.7% 29.6%

1.51%

1.93%

2.44% 2.45%

2004 2005 2006 2007

ROAE ROAA

282358

164225

268

547

436326

25%22%27%

25%

19%

21%

37%38%

2004 2005 2006 2007

Assets Gross Loans

Assets Growth Gross Loans Growth

(1)

Core Management TeamCore Management TeamManagement Team Has Delivered Outstanding Results

(1)


12/19HK000MSI_Roadshow

Financial HighlightsFinancial Highlights


13/19

13

Superior Balance Sheet GrowthSuperior Balance Sheet Growth

Assets (PKR bn)Assets (PKR bn) Gross Loans (PKR bn)Gross Loans (PKR bn) Deposits (PKR bn)Deposits (PKR bn)

282

358

436

547

2004 2005 2006 2007

Top 4

Average

CAGR: 14%

2004

2007

CAGR

:25%

164

225

268

326

2004 2005 2006 2007

Top 4

Average

CAGR: 15%

2004

2007

CAGR

:26%

237

296

344

412

2004 2005 2006 2007

Top 4

Average

CAGR: 11%

2004

2007

CAGR

:20%



14/19

14

5.3%

6.5%6.0%

3.6%

5.5%

7.9%

11.0% 11.1%

2004 2005 2006 2007

Net Interest Margin Loan Yield

6.5

15.5

25.7 31.39.7

20.7

33.6

42.0

2004 2005 2006 2007

Interest Income from Loans

High MarginsHigh Margins

Interest Income (PKR bn)Interest Income (PKR bn) Loan Yield and Net Interest MarginLoan Yield and Net Interest Margin

TotalInterestIncomeCAGR:63%

(20042007)

LoanInterestIncomeCAGR:69%

(20042007)


15/19

15

37%35%

11%

-3%2004 2005 2006 2007

16%

47%

85%

7%

2004 2005 2006 2007

Strong Fee Income Growth and ContributionStrong Fee Income Growth and Contribution

Net Interest Income GrowthNet Interest Income Growth Total RevenueTotal Revenue(1)(1) (PKR bn)(PKR bn)


(1) Defined as net interest income plus non interest income

12.7

19.9

28.6

34.7

2004 2005 2006 2007

2004200

7CAGR:4

0%

Non Interest Income GrowthNon Interest Income Growth


16/19

16

Sustained ProfitabilitySustained Profitability

Earnings TrendEarnings Trend Profitability RatiosProfitability Ratios

3,821

6,168

9,6679,237

2004 2005 2006 2007

20.3%25.0% 23.8%

20.6%

28.3%

33.7%

22.8%21.2%

2004 2005 2006 2007

ROAE(1)

1.2%

1.8%2.1% 2.0%1.9%

2.4%

1.9%

1.5%

2004 2005 2006 2007

ROAA

Industry average (2)


(1) Includes minority interest and surplus on revaluation of assets

(2) Source: SBP (Banking System Review June 2007)

200420

07CAGR:34%

Net Profit (PKR mm)

UBL* 2007 results impacted by change in prudential regulations


17/19

HK000MSI_Roadshow

AppendixAppendix


18/19

18

Income StatementIncome Statement

(PKR mm)

Net Interest Income (1) 7,860 14,531 21,367 24,799 47%

Non Interest Income 4,818 5,372 7,262 9,930 27%

Operating Revenue (1) 12,679 19,903 28,629 34,729 40%

Operating Expense 7,346 8,727 12,328 14,734 26%

Pre-Provision Operating Profit 5,332 11,176 16,301 19,995 55%

Provision Expenses 357 1,434 2,240 6,423 162%

Others 35 (32) 439 224 86%

Net Income 3,821 6,168 9,667 9,237 34%

2004 2005 2006 2007 04-07 CAGR

(1) Before provision expenses


19/19

19

Balance SheetBalance Sheet

(1) Includes minority interest and surplus on revaluation of assets

(PKR mm)

Cash and Bank Balances 48,119 52,832 68,442 68,605 13%

Investments Net52,708 61,559 65,735 114,026 29%

Loans and Advances Net148,225 210,153 254,670 308,271 28%

Total Assets282,248 358,056 435,835 546,796 25%

Customer Deposits237,054 296,499 343,805 412,138 20%

Borrowings12.637 22.751 38.625 59.491 68%

Total Liabilities262,869 333,783 402,658 498,905 24%

Equity(1) 19,379 24,274 33,177 47,891 35%

2004 2005 2006 2007 04-07 CAGR

Date post:	14-Apr-2018
Category:	Documents
Upload:	badshah-salamut
View:	230 times
Download:	1 times

UBL Overview Presentation

Documents