Performance Highlights H1 2018 Investor Relations ... · UBL Performance Overview –H1 2018 Performance Highlights –H1 2018 Investor Relations Conference Call August 3rd, 2018

UBL Performance Overview – H1 2018

Performance Highlights – H1 2018

Investor Relations Conference Call

August 3rd, 2018

Speakers:

Mr. Aameer Karachiwalla - Chief Financial Officer

Mr. Arif Saifie, FCA, CFA - Financial Controller and Head of Investor Relations Investor Relations Release


Table of Contents

3

8

31

PAGE

Key Highlights

Growth at a Glance

Execution and Delivery

Quarterly Trend Analysis

27

UBL Performance Overview – H1 2018 3

PBT before extraordinary items at Rs. 19.0 bln, down 17% vs. H1’17

PBT at Rs. 10.6 bln, down 54% vs. H1’17

Major downsides impacting results in H1’18:

Rs 8.4 bln recorded as pension liability (Q1’18: Rs 6.4 bln; Q2’18: Rs 2.0 bln) – Refer details in presentation

International Provisions of Rs 5.1 bln taken in H1’18 (Q1’18 Rs 2.7 bln; Q2’18: Rs 2.4) to build coverage from 58% in Dec’17 to 71% in Jun’18.

Major upsides building core earnings in H1’18:

Average domestic current deposits at Rs. 438 bln, up 17% vs. H1’17

Average CASA for the period was 86.3% (H1’17: 82.4%)

Domestic cost of deposits reduced to 2.60% (H1’17: 2.75%) – with strong current accounts growth

Average performing advances growth of 24% - Domestic up 38%, International down 12%

Domestic fees grew by 30% YoY to reach Rs 5.8 bln in H1’18

FX income increased by 76% to Rs 1.4 bln in H1’18

Overall Bank revenues up by 5%, closing at Rs. 42.3 bln in H1’18

Overall operating expenses growth well contained at 5% - H1’18 vs H1’17

CAR has improved from 15.45% in Dec’17 to 16.34% in Jun’18

Key Performance Highlights

UBL Standalone Results


277,000 NTB current accounts mobilized in H1’18 (H1’17: 240,000)

Growth led by current deposits – average growth of 17%, incremental vol. of Rs. 62 bln

Domestic CASA of 89.6% at Jun’18 end (Jun’17: 83.1%). Current to total deposits ratio at 49.5%

(Jun’17: 44.5%). Average domestic deposits grew by 5% year on year

Average performing advances growth of 24% - Domestic up 38%, International down 12%

Growth led by Corporate – average loan book expansion of 35%

Average Consumer portfolio grew 33% to Rs. 13 bln, SME lending up 32% to Rs. 28 bln

PIBs portfolio at Rs 450 bln (Dec’17: Rs 542 bln) - maturities of Rs 27 bln in H1’18

Repo book reduced from Rs. 450 bln at Dec’17 to Rs. 178 bln at Jun’18 end

4

Branch Banking builds deposit base in cost efficient manner

Avg. Total Assets of Rs 1.82 tln in H1’18, a growth of 13% over H1’17


Overall revenues grow by 5% YoY to Rs 42.3 bln in H1’18 - Domestic up 9% to Rs 37.0 bln

Net Interest Income of Rs. 28.1 bln in H1’18 (H1’17: Rs. 28.0 bln)

Average earning assets grew by Rs 201 bln YoY to Rs 1,552 bln in H1’18

Average 3 months KIBOR up from 6.1% in H1’17 to 6.4% in H1’18

Domestic cost of deposits reduced to 2.60% (H1’17: 2.75%) - strong current accounts growth

Advances yield at 6.4% in H1’18 (H1’17: 6.2%)

Domestic loan yield stood at 6.9% in H1’18 (H1’17: 6.9%)

International advances yield up at 5.0% (H1’17: 4.8%)

Overall investment yield stood at 8.2% in H1’17 to 7.5% in H1’18

PIB yields move from 9.0% in H1’17 to 8.6% in H1’18 in line with maturities

Significant buildup in T bills portfolio –avg. vol up from Rs 163 bln to Rs. 286 bln


Overall NFI closed at Rs 14.3 bln in H1’18, a 16% growth over H1’17

DOM FX revenue up by Rs 825 mln to Rs 1.39 bln in H1’18 – amidst higher FX volumes

Fee income stood at Rs 6.7 bln, up 14% from H1’171

Domestic fees grew by 30% YoY to reach Rs 5.8 bln in H1’18:–

Home remittances revenues grew by 29% - market share up to 30% (H1’17: 25%)

Trade commissions growth of 15% to reach Rs 489 mln

Debit card commissions grew by 35% - 340,000 new cards issued (H1’17: 329,000)

Banca revenues maintained momentum to reach Rs 616 mln (H1’17: Rs 467 mln)

Cash management commissions grew by 26% over H1’17 to reach Rs 266 mln

Dividend income of Rs. 1.2 bln (H1’17: 1.3 bln) – yield of 9.2% (H1’17: 9.4%)2

Capital gains of Rs. 4.5 bln realized (H1’17: Rs 3.8 bln) – mainly on the PIBs portfolio 3

FX income increased by 76% to Rs 1.4 bln in H1’184


DOM net provision reversal of Rs 544 mln in H1’18 (H1’17: Rs 1.17 bln reversal)

DOM asset quality stood at 5.2% at the end of Jun’18 (Dec’17: 6.2%)

International provisions of USD 44.5 mln taken in H1’18 (H1’17: USD 6.7 mln)

Overall NPLs closed at Rs. 56.0 bln at Jun’18 (Dec’17: Rs. 51.1 bln)

International NPLs up from USD 207 mln in Dec’17 to USD 233 mln at Jun’18

Overall asset quality maintained at 7.7% (Dec’17: 7.9%)

Specific coverage at 80% (Dec’17: 76%) – DOM coverage at 89% (Dec’17: 91%)

7

Net provision charge of Rs. 4.5 bln in H1’18 vs. net reversal of Rs. 0.5 bln in H1’17

Administrative expenses stood at Rs. 18.5 bln, up 7% YoY

Personnel costs for H1’18 at Rs. 8.3 bln, up 4% vs H1’17

Premises cost up 3% in H1’18 to reach Rs 3.4 bln

Variable / Other costs increased by 13% - primarily due to higher sales related commissions,

cash transportation charges, consultancy charges etc.

Strong recoveries in Domestic, coverage buildup in International


Execution and Delivery


50%75% 85%

100%115%

130% 130% 130%

60%

54.8%59.2% 58.2%

65.8% 64.2% 61.9% 57.4% 62.6% 63.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

0%

20%

40%

60%

80%

100%

120%

140%

2010 2011 2012 2013 2014 2015 2016 2017 H1'18

Cash Dividend Dividend Payout Ratio

9

Consistent earnings performance throughout the years

Equity and Book Values

Dividend Payout EPS & Price Earnings Ratio

Trends - KSE 100 Index and UBL’s share price

Dec'10 Dec'11 Dec'12 Dec'13 Dec'14 Dec'15 Dec'16 Dec'17

EPS 9.1 12.7 14.7 15.2 17.9 21.0 22.7 20.8

PE 7.5 4.1 5.7 8.7 9.9 7.4 10.5 9.1

0.7

5.6

10.4

15.3

20.1

25.0

2.0

5.6

9.2

12.8

16.4

20.0*

* Payout for H1’18 is computed on normalized PAT excluding the effect of one-off pension cost

25

30

35

40

45

50

55

100

120

140

160

180

200

220

240

260

280

300

De

c-1

3

Ma

r-1

4

Jun

-14

Se

p-1

4

De

c-1

4

Ma

r-1

5

Jun

-15

Se

p-1

5

De

c-1

5

Ma

r-1

6

Jun

-16

Se

p-1

6

De

c-1

6

Ma

r-1

7

Jun

-17

Se

p-1

7

De

c-1

7

Ma

r-1

8

Jun

-18

UBL's share price KSE 100 Index

Max H1'18: Rs. 215.16 29 Jun’18: Rs. 168.9802 Aug'18: Rs. 165.17

68 79 92 101

126 142

152 159 152

56 65 75 82 103

116 124 130 124

2010 2011 2012 2013 2014 2015 2016 2017 Jun'18Total Equity - St. BV Per share - St.

Rs in bln Cons . Equity Jun’18 - Rs. 167 bln

Cons . Book va lue Jun’18 - Rs. 136 per share


Income Statement - Standalone

10

H1'18 H1'17 Var % Q2'18 Q1'18 Var %

Interest Earned 54.2 49.7 9.0% 26.0 28.1 -7.6%

Interest Expensed (26.1) (21.7) -20.5% (11.8) (14.3) 17.3%

Net Interest Income 28.1 28.0 0.1% 14.2 13.9 2.5%

Non Interest Income 14.3 12.3 15.7% 7.0 7.3 -4.6%

Total Revenue 42.3 40.4 4.9% 21.2 21.2 0.1%

Admin. Expenses (18.5) (17.3) -6.9% (9.9) (8.7) -13.9%

Operating Expenses (18.8) (17.8) -5.3% (10.0) (8.8) -14.2%

Pre Prov. Operating Profit 23.5 22.5 4.6% 11.2 12.4 -9.9%

Provision Exp./Other writeoffs (4.5) 0.5 -1084.4% (2.6) (1.9) -37.0%

Profit Before Extra Ordinary / Unususal Item and Tax 19.0 23.0 -17.3% 8.5 10.5 -18.5%

Extra Ordinary / Unususal Item - Pension Cost (8.4) - -100.0% (2.0) (6.4) 68.8%

Profit Before Tax 10.6 23.0 -53.8% 6.5 4.1 60.6%

Profit After Tax 6.3 13.2 -52.7% 3.6 2.6 37.1%

Rs in bln Rs in bln


Income Statement - Domestic

11

H1'18 H1'17 Var % Q2'18 Q1'18 Var %

Interest Earned 47.2 42.7 10.6% 22.4 24.8 -9.5%




Total Revenue 37.0 34.0 8.9% 18.5 18.6 -0.5%

Admin. Expenses (15.1) (14.1) -6.5% (8.0) (7.1) -13.3%



Provision Exp./Other writeoffs 0.5 1.2 -53.3% (0.3) 0.8 -133.1%

Profit Before Extra Ordinary / Unususal Item and Tax 22.5 20.8 7.9% 10.2 12.3 -17.4%



Profit After Tax 7.9 11.9 -33.5% 4.4 3.4 28.8%

Rs in bln Rs in bln


Balance Sheet - Standalone

12

Jun'18 Dec'17 Var %

Advances 675 605 11.7%

Investments 800 1,092 -26.7%

Lendings to Financial Institutions 42 34 24.6%

Others 300 277 8.0%

Total Assets 1,816 2,007 -9.5%

Deposits 1,315 1,289 2.0%

Borrowings 293 513 -42.8%

Others 56 46 20.9%

Total Liabilities 1,665 1,848 -9.9%

Net Assets 152 159 -4.8%

Share Capital 12 12 0.0%

Reserves 49 44 11.0%

Unappropriated Profit 66 71 -6.3%

Total Equity 127 127 0.3%

Surplus on revaluation of Assets 24 32 -24.5%

Total Equity + Surplus 152 159 -4.8%

Rs in bln


Income Statement - Consolidated

H1'18 H1'17 Var % Q2'18 Q1'18 Var %

Interest Earned 56.2 51.3 9.5% 27.1 29.1 -6.7%




Total Revenue 44.5 42.4 5.1% 22.0 22.5 -2.0%

Admin. Expenses (20.3) (18.9) -7.5% (10.8) (9.5) -13.1%



Provision Exp./Other writeoffs (4.7) 0.2 -2548.7% (2.8) (1.9) -45.1%

Profit Before Extra Ordinary / Unususal Item and Tax 19.2 23.2 -17.1% 8.3 10.9 -23.8%



Profit After Tax 6.1 13.3 -54.0% 3.4 2.8 21.5%

Rs in bln Rs in bln


Balance Sheet - Consolidated

14

Jun'18 Dec'17 Var %

Advances 716 643 11.4%

Investments 840 1,125 -25.3%

Lendings to Financial Institutions 44 36 21.7%

Others 321 302 6.4%

Total Assets 1,921 2,105 -8.8%

Deposits 1,396 1,366 2.2%

Borrowings 300 517 -42.0%

Others 58 48 22.3%

Total Liabilities 1,754 1,931 -9.2%

Net Assets 167 174 -4.3%

Share Capital 12 12 0.0%

Reserves 52 47 10.9%

Unappropriated Profit 72 76 -6.1%

Total Equity attributable to euity holders of Bank 136 136 0.4%

Non-controlling Interest (NCI) 5 5 5.5%

Surplus on revaluation of Assets 26 34 -24.6%

Total Equity + NCI + Surplus 167 174 -4.3%

Rs in bln


Deposits - Bank

Deposits performance - Focus remains on growing low cost deposits

Cost of Deposits

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Domestic International Bank

2.6%

2.5%

2.3%

Jun'18 Dec'17 H1'18 H1'17 H1'18 H1'17

Domestic deposits - Rs in bln 1,063 1,033 994 945 2.6% 2.8%

International deposits - Rs in bln 252 256 248 228 2.2% 2.2%

Total Bank - Rs in bln 1,315 1,289 1,242 1,173 2.5% 2.6%

International - USD in mln 2,077 2,322 2,174 2,176 2.2% 2.2%

Domestic CASA 89.6% 84.7% 86.3% 82.4%

Domesctic Current to Total Deposits 49.5% 44.3% 44.1% 39.8%

Period End Cost of DepositsAverage


Advances portfolio up 12% over Dec’17

Net Advances

Jun'18 Dec'17 Var %

Corporate Bank 351 303 16%

Commodity 78 47 66%

Commercial 35 35 0%

Consumer 14 12 18%

Others 34 34 0%

Total Domestic 512 431 19%

International 163 173 -6%

Bank 675 605 12%

International USD mln 1,342 1,569 -14%

Rs in bln

351

303

78

47

35

35

14

12

163

173

34

34

Jun'18

Dec'17

Corporate Bank Commodity Commercial Bank Consumer Bank International Others


Dubai, 64%

Abu Dhabi,

30%Sharjah, 6%

International Advances - Corporate advances remains the largest component

17

By Business - UAEBy Geography

Corporate,

61%

Consumer,

4%

Others, 35%

Baitna, 98%

Personal loan, 1%

Others, 1%

UAE, 75%

Bahrain, 14%

Qatar, 11%Yemen, 0%

NewYork, 0%

EPZ, 0%


Concentration of Advances as at June 30, 2018 - Standalone

18

2%

10%

10%

1%2%

3%

6%

2%

30%

7%

27%

Chemical & Pharma Agribusiness Textile

Cement Sugar Autos & Transport

Financial Electronics Power & Energy

Individuals Others


Diversified investment portfolio with strong market risk management

Investments’ yields

Non Funded revenue streams continue to grow

Portfolio declines in line with reduced leveraging

19

10.4%

11.1%

10.4%

8.9%

7.8% 7.5%

2013 2014 2015 2016 2017 H1'18

1,292 1,159

822 1,447

3,836

4,542

H1'17 H1'18

Capital gains

FX income

Dividend

Rs in mln

218

414

450

542 18

18

42

39

51

47

0

1

20

31

Jun'18 Dec'17

T Bills PIBs

Listed shares GoP Sukuks / Eurobonds

Foreign bonds Mutual funds

Others

Rs in blnTotal 1,092

Total 800


Our international outreach - serving in 4 continents under the single “UBL” brand

20

OVERSEAS BRANCHES20

PAKISTAN BRANCHES1,361

SUBSIDIARIES4

ASSOCIATED COMPANIES3

Globally around 20% of our asset base is located overseas

Asset mix by region 2017 2016Domestic Operations 79.9% 76.4%

International Operations 20.1% 23.6%Middle East 14.8% 17.5%USA 0.2% 0.7%Europe 4.7% 5.0%Africa 0.2% 0.3%EPZ 0.1% 0.1%


UBL Innovation and Awards

UBL “Firsts” – Initiatives to stay ahead of the market Market recognition and awards

First Commercial Bank in Pakistan to launch Branchless Banking (UBL OMNI)

First Bank in the world to issue VISA Debit Cards for G2P assistance to affectees

First Bank to provide Instantaneous ATM/Debit cards to branchless banking customers at the time of account opening (UBL Omni)

First Pakistani Bank to be granted status of Authorized Derivative Dealer (ADD) in Pakistan and First institution from Pakistan and third in South Asia to be accredited with Primary Membership of International Swaps and Derivatives Association

First Bank in Pakistan to offer Prepaid VISA Debit Card

First Bank in Pakistan to offer Verified by Visa Service

First Bank in Pakistan where customer’s inward remittances are deposited automatically on an ATM and VISA enabled debit card (UBL Tezraftaar PardesCard)

“Best Bank” in the first ever Pakistan Banking Awards 2016

“Best Bank for Corporate Finance and Capital Market Development” in the Pakistan Banking Awards 2017

JCR-VIS reaffirmed UBL’s entity ratings at AAA/A-1+ (Triple A / A-One Plus)

“Innovation Award” at the Mastercard Innovation Forum for ‘Launch of UBL MasterPass QR’

“National Medal of Innovation Award” 2016 for Pioneering G2P Payments – Pakistan Innovation Foundation

Top 25 Companies Award by the Karachi Stock Exchange for 2010-2012, 2015 and 2016

“Best Bank for SMEs” by the Asia Money Pakistan Banking Awards in 2017

2012 & 2013 Bank of the Year in Pakistan Award by The Banker Magazine, an affiliate of the Financial Times, UK

ASIAMONEY Best Domestic Bank Award for 2011 and 2012

Recognized globally in 2013 as one of the 14 “Sprinters” by the GSMA’s Mobile Money for the Unbanked (MMU) program, being the only bank in the category

GSMA Global Mobile Award 2012 for “Best Use of Mobile in Emergency or Humanitarian Situations” and Financial Insights Innovation Award for “Innovation in Cash Disbursements (G2P)”

Recognized by CFA Pakistan Society for the “Best Investor Relations” function in 2013 and 2014

21


Update on Pension Estimated Cost

22

March 2018 June 2018

Headcount Estimated

Cost

Headcount Estimated

Cost

Minimum For Commuted - Pension not restored Rs 4,000 Rs 8,000

Minimum For Commuted - Pension restored Rs 8,000 Rs 8,000

Pensioners - Status verified 1,896 1,906 2,801 3,128

Pensioners - Status not verified 3,704 2,359 2,858 754

Pensioners - Total 5,600 4,265 5,659 3,883

Retrenched Employees - Status verified - - 2,453 3,653

Retrenched Employees - Status not verified 3,854 2,689 1,376 1,095

Retrenched - Total 3,854 2,689 3,829 4,749

Active Employees' Estimated Cost 1,159 1,024 1,120 1,250

Total Pension Fund Estimated Cost 10,613 7,978 10,608 9,882 Pension Fund Movement

Opening Balance 1,572 7,978 Add: Estimated Charge for the quarter * 6,406 2,000 Less: Payments - (96)

Total Pension Fund Closing Balance 10,613 7,978 10,608 9,882

Discount Rate 7.75% 9.75%

Rupees in Million

* This estimated charge for pension has been taken into accounts on "Without Prejudice basis" and subject to the Honorable Supreme Courts' final decision.

The extraordinary charge of Rs. 8.4 Billion represents the estimated amount of the cost of pensionpayable as per Honorable Supreme Court’s Order increasing the minimum pension to Rs. 8,000 permonth subject to 5% annual increase from January 1, 2019. Estimate is based on on-going lifeverification of both pensioners and retrenched employees. The estimate is also based on the paymentof pension without taking effect of commutation. The Bank has sought clarification from the HonorableSupreme Court on the effect of commutation in calculation of minimum pension and the treatment ofex-employees who were separated under the Golden Handshake Scheme described as RetrenchmentScheme of 1997. The amount will be adjusted based on the guidance received from the HonorableSupreme Court.

Disclosure Note 17 of Condensed Financial Statements for the period ended June 30, 2018


Review of Non Interest Income & Administrative Expenses


Non Fund Income Standalone Results

H1'18 H1'17 Var %

Fee, commission and brokerage income 5,753 4,433 30%

Dividend income 1,152 1,285 -10%

Income from dealing in foreign currencies 1,389 563 147%

Gain / (loss) on sale of securities 4,350 3,611 20%

Other income 360 419 -14%

Domestic Total 13,003 10,311 26%

International Total 1,283 2,035 -37%

Bank Total 14,286 12,346 16%

International Total - USD in '000 11,255 19,407 -42%

Rs in mln


Fees and Commissions performance Standalone Results

H1'18 H1'17 Var %

OMNI fee & commissions 994 910 9%

Commission on trade 489 427 15%

Corporate service charges/ Facility fee 109 113 -3%

Corporate finance fee 413 47 783%

FIG commission 127 50 157%

Commission on ATM/ Debit cards 764 564 35%

Commission on home remittances (net) 516 400 29%

Commission on remittances/ uniremote services 487 428 14%

Commission on consumer loan 348 309 13%

Commission income - Bancassurance 616 467 32%

Commission on cash management 266 212 26%

Commission others 624 507 23%

Domestic Total 5,753 4,433 30%

International Total 975 1,475 -34%

Bank Total 6,728 5,908 14%

International Total - USD in '000 8,548 14,068 -39%

Rs in mln


Administrative Expenses Standalone Results

H1'18 H1'17 Var %

Salaries, allowances & Staff fund

charges5,702 5,311 -7%

Rent taxes insurance etc. 1,908 1,904 0%

Outsourced service charges

including sales commission2,137 2,011 -6%

Advertisement and publicity 325 429 24%

Communications 580 453 -28%

Depreciation / Amortization 1,318 1,147 -15%

Legal and professional charges 111 161 31%

Banking service charges 707 476 -48%

Stationery and printing 332 294 -13%

Travelling 94 107 12%

Cash transportation charges 504 340 -48%

Repairs and maintenance 726 688 -5%

Vehicle expenses 91 85 -7%

Office running expenses 206 394 48%

Insurance expense 46 45 -1%

Others 269 289 7%

Domestic Total 15,056 14,136 -7%

International Total 3,461 3,181 -9%

Bank Total 18,517 17,317 -7%

International Total - USD in '000 30,369 30,343 0%

Rs in mln


Growth at a Glance


Balance Sheet

Rs. in mlns 2017 2016 2015 2014 2013 2012

Assets

Cash and balances with treasury and other banks 177,099 146,428 128,870 87,573 114,388 109,396

Lending to financial institutions 33,664 34,168 24,095 21,872 28,835 21,953

Investments- gross 1,095,555 808,959 721,651 499,060 425,253 351,002

Advances - gross 646,552 550,636 497,032 479,998 436,749 409,090

Operating fixed assets 46,205 35,582 31,630 30,303 24,608 24,431

Other assets 54,065 44,731 41,124 40,067 27,317 26,800

Total assets - gross 2,053,140 1,620,504 1,444,402 1,158,874 1,057,150 942,673

Provisions against non-performing advances (41,990) (40,525) (41,618) (45,734) (45,936) (44,727)

Provisions against diminution in value of investment (3,769) (2,428) (2,133) (1,726) (1,476) (1,412)

Total assets - net of provision 2,007,381 1,577,551 1,400,651 1,111,414 1,009,739 896,535

Liabilities & Equity

Deposits & other Accounts 1,289,247 1,179,887 1,051,235 895,083 827,848 698,430

Borrowing from financial institutions 512,650 201,550 163,132 53,065 40,574 68,720

Sub-ordinated loans - - - - 665 9,319

Bills payable 13,388 11,756 13,392 9,554 16,591 7,601

Other liabilities 32,789 32,571 30,757 28,196 23,147 20,226

Total Liabilities 1,848,074 1,425,764 1,258,516 985,898 908,825 804,296

Net Assets / Liabilities 159,307 151,787 142,135 125,516 100,914 92,238

Share capital 12,242 12,242 12,242 12,242 12,242 12,242

Reserves 43,847 40,455 38,402 34,130 33,681 29,044

Un - appropriated profit / (loss) 71,154 64,246 55,223 48,217 42,635 37,416

Equity - Tier I 127,243 116,943 105,867 94,589 88,558 78,702

Surplus on revaluation of assets 32,064 34,844 36,268 30,927 12,356 13,537

Equity 159,307 151,787 142,135 125,516 100,914 92,238

Total liabilities & equity 2,007,381 1,577,551 1,400,651 1,111,414 1,009,739 896,535


Profit & Loss

Rs. in mlns 2017 2016 2015 2014 2013 2012

Markup / return / interest earned 107,206 98,219 94,353 82,735 72,846 73,507

Markup / return / interest expensed (50,781) (41,177) (38,511) (37,769) (34,910) (34,948)

Net Markup / Interest income 56,425 57,042 55,842 44,967 37,936 38,560

Fee, commission, brokerage and exchange income 14,496 14,020 14,474 14,418 12,205 10,025

Capital gain & dividend income 6,762 8,629 6,442 3,806 4,845 3,131

Other income 904 960 1,070 1,071 1,064 3,975

Non interest income 22,162 23,609 21,986 19,296 18,114 17,131

Gross income 78,587 80,651 77,828 64,263 56,050 55,691

Administrative expenses and other charges (36,109) (32,809) (31,776) (29,597) (26,718) (24,306)

Profit before provisions 42,478 47,842 46,052 34,666 29,332 31,385

Donations (110) (87) (167) (112) (77) (35)

Provisions (2,208) (1,740) (3,710) (1,156) (1,448) (4,499)

Profit before taxation 40,160 46,015 42,175 33,398 27,807 26,851

Taxation (14,739) (18,285) (16,448) (11,469) (9,193) (8,960)

Profit after taxation 25,421 27,730 25,727 21,930 18,614 17,891


Key Financial Ratios & Share Information

2017 2016 2015 2014 2013 2012

Key Financial Ratios

Return on equity (RoE) 20.8% 24.9% 25.7% 23.9% 22.3% 23.8%

Return on assets (RoA) 1.4% 1.9% 2.0% 2.1% 2.0% 2.1%

Profit before tax ratio 51.1% 57.1% 54.2% 52.0% 49.6% 48.2%

Return on capital employed (RoCE) 20.8% 24.9% 25.7% 23.9% 21.0% 20.9%

Advances to deposits ratio (ADR) - gross 47.3% 44.4% 45.2% 51.3% 50.7% 56.2%

Cost to revenue ratio 45.0% 39.6% 39.7% 45.2% 46.5% 42.6%

Growth in gross income -2.6% 3.6% 21.1% 14.7% 0.6% 6.8%

Total assets to shareholders’ funds 12.6 10.4 9.9 8.9 10.0 9.7

Intermediation cost ratio 2.9% 2.9% 3.3% 3.4% 3.5% 3.7%

NPL ratio 7.9% 8.1% 9.4% 11.2% 12.1% 14.0%

Net infection ratio 1.5% 0.8% 1.1% 1.9% 1.7% 3.5%

Capital adequacy ratio (CAR) 15.4% 15.1% 14.6% 13.9% 13.3% 15.0%

Share Information - Rs

Cash dividend per share 13.00 13.00 13.00 11.50 10.00 8.50

Dividend yield (based on cash dividend) 5.4% 8.4% 7.4% 8.7% 12.0% 16.2%

Dividend payout ratio (total payout) 62.6% 57.4% 61.9% 64.2% 65.8% 58.2%

Earning per share (EPS) 20.77 22.65 21.02 17.91 15.21 14.61

Price earnings ratio (PE) 9.05 10.55 7.37 9.86 8.72 5.72

Market value per share - at the end of the year 187.97 238.90 154.95 176.71 132.55 83.67

Market value per share - highest during the year 283.00 243.72 186.75 198.39 154.21 91.99


Quarterly Trend Analysis

Bank Level - Standalone


Profit before tax Rs in bln

32

5.96.4

7.1

8.47.8 8.0 8.3

9.3

10.9 11.2

10.2 9.9

11.3

13.5

10.810.4

11.2 11.8

8.4

8.8

4.1

6.5


+7%+6%

-29% +4%

-54% +61%


Profit after tax Rs in bln

33

4.04.3

4.7

5.7

5.2 5.3 5.3

6.1

7.1

5.6

6.56.5

7.3

7.0

7.0

6.4

7.3

6.0

5.9

6.3

2.6

3.6


-17%

+13%

-2%

+8%

-58%+37%


Deposits Rs in bln

703752 773

828 847 858 866895

945992 994

1,051 1,070

1,142 1,1471,180 1,183

1,256 1,2541,2891,301

1,315


+6%

+0%

-0%+3% +1%

+1%


Net Advances Rs in bln

352363 369

391377

408417

434420

430

459 455

447

496509 510

498

565 567

605624

675


+13%

-2%

+0%

+7%

+3%

+8%


Revenue Rs in bln

12.6

13.814.1

15.414.9

16.3

15.5

17.6

19.3

20.3

18.6

19.5

21.9

21.3

18.1

19.220.0 20.4

17.9

20.3

21.2 21.2


+4%+2%

-12% +13%

+4%

+0%


Net Interest Income Rs in bln

8.8 9.0

9.5

10.6

9.8

11.311.0

12.813.1

14.2

13.9

14.7

13.6

15.7

13.7

14.0

13.7

14.3

14.2

14.2

13.9

14.2


+4%

-2%

-1%

+1%

-3%

+2%


Non Funded Income Rs in bln

3.9

4.84.6

4.9 5.1 5.0

4.54.8

6.2 6.2

4.8 4.8

8.4

5.6

4.5

5.2

6.36.1

3.8

6.0

7.3

7.0


-3%

+21%

-38%

+60%

+21%

-5%


Provisions Rs in bln

0.50.8 0.3

-0.1

0.2

0.9

-0.1

0.2

0.8

1.3

0.7

0.9

2.0

-0.3 -0.3

0.30.1

-0.5

0.6

2.1

1.9

2.6


-777%

-76%

+207%

+260%-8%

+37%


Administrative Expenses Rs in bln

6.26.5 6.5

6.9 6.97.2 7.1

8.0

7.37.6

7.4

8.6 8.4

7.8

7.4

8.28.5

8.8 8.8

9.2

8.7

9.9


+3%

+3%-0%

+5%

-6%

+14%


The information contained herein reflects our latest business statement as atJune 30, 2018.

Except the historical information contained herein, statements in this Releasewhich contain words or phrases such as ‘will’, ‘would’, ‘indicating’ expected to’ etc.,and similar expressions or variations of such expressions may constitute ‘forward-looking statements’. These forward-looking statements involve a number of risks,uncertainties and other factors that could cause actual results to differ materiallyfrom those suggested by the forward-looking statements. These risks anduncertainties include, but are not limited to our ability to successfully implementour strategy, future levels of non-performing loans, our growth and expansion inbusiness, the impact of any acquisitions, the adequacy of our allowance for creditlosses, technological, implementation and changes, the actual growth in demandfor banking products and services, investment income, cash flow projections, ourexposure to market risks as well as other risks detailed in the reports filed by uswith various regulatory authorities as per applicable laws and regulations. UBLundertakes no obligations to update forward-looking statements to reflect event orcircumstances after the date thereof.

Important Information


Thank You

Documents

Performance Highlights H1 2018 Investor Relations ... · UBL Performance Overview –H1 2018 Performance Highlights –H1 2018 Investor Relations Conference Call August 3rd, 2018