Performance Highlights Q1 2020 Investor Relations Conference … · 2020-04-24 · UBL Performance Overview –Q1 2020 1 Speakers: Mr. Aameer Karachiwalla - Chief Financial Officer

UBL Performance Overview – Q1 2020 1

Speakers:

Mr. Aameer Karachiwalla - Chief Financial Officer

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

Performance Highlights Q1 2020

Investor Relations Conference Call

April 27th, 2020

Winner of Pakistan Stock Exchange (PSX) “Top Companies of the Year” Award for

three consecutive years (2016-18)

Declared ‘Best Digital Bank in Pakistan for 2020’ by Asiamoney


Agenda

Sr. No Description Slide

1 Key Highlights for Q1 2020 – build up in profitability 3

2 UBL - A strong legacy – market leading positions in core segments 7

3 Core Business Driving Growth – led by branch banking business 11

4 Overview of Financial Performance – key number and ratios 15


Standalone PAT at Rs. 5.1 bln, up 21.5% vs. Q1’19 – (PAT is up 7% over Q4’19)

Pre Provisions PBT of Rs 12.1Bln up 16% vs Q1’19 and up 26% vs Q4’19

Domestic PBT at Rs 10.8 Bln up 22% YoY – led by 16% revenue growth

Dom Deposits lead the way as Total - Avg Dom Deposits at Rs 1,174 bln - growth of 8% vs Q1’19

Domestic NII (which is 70% of Bank wide revenue) is up 23% Q1’20 vs Q1’19

Provisions in Q1’20 of Rs 3.7 Bln (INT charge of Rs 3.76Bln – including IFRS 9 General Provision of Rs 1.6 Bln). Domestic Bank has posted a net reversal of Rs 62 mln in the first quarter.

Admin Expenses well below inflation - up by 6% YoY and 14% below last quarter

Cost to income ratio stood at 43.0% for Q1’20, improving from 45.6% in Q1’19

CAR has remained strong at 19.5% at Mar’20 (Dec’19: 18.9%)

No increase in Risk Weighted Assets: Mar’20 at Rs 837 billion in line with Dec’19

International De-Risking continues - average loan book was reduced by 27% over Q1’19, stood at USD 799 million in Q1’20.

Key Performance Highlights for Q1’2020

Drivers of Performance in Q1’ 2020 while maintaining sound capital


Overall Revenues Net Interest Income of Rs. 17.3 bln in Q1’20 (Q1’19: Rs. 14.7 bln) strong growth up 18% YoY Interest earning asset base at Rs. 1.6 trillion for Q1’20, a growth of 10% year on year Net interest margins (NIMs) improved to 4.6% in Q1’20 to 4.3% in Q1’19

Deposits Average domestic deposits grew by 8% year on year – with Rs 85 Bln incremental volume Growth led by CASA – average growth of 5% YoY, incremental vol. of Rs. 48 bln Average Current to total deposits ratio at 41.6% (Dec’19: 43.0%) Average Domestic current deposits at Rs. 488 bln, up 4% vs. Q1’19 Average CASA for the period was 84.7% (Q1’19: 86.8%) Domestic cost of deposits at 6.4% (Q1’19 : 4.7%) – impact of higher rates

Advances – Maintain Domestic, with major reduction within International

Domestic Advances stood at Rs 483 bln in Mar’20 (Dec’19: Rs 500 bln) International Advances at USD 838 mln in Mar’20,(Dec’19: USD 882 mln, Dec’18: USD 1,232 mln)

down 32% in last 15months

Investments portfolio position and mix as at March 31st 2020 Fixed Income PIBs at Rs 256 bln in Mar’20 yielding 9.4% (Dec’19; Rs 315bln) Floating rate PIBs portfolio at Rs 190 bln in Mar’20 (Dec’19: Rs 97 bln) – yielding 14.0% T.Bill Portfolio at Rs 359 bln in Mar’20 (Dec’19: 254bln) – yielding 12.6%

Branch Banking builds deposit base in cost efficient manner - strong network performance

Avg. Total Assets of Rs. 1.86 tln in Q1’20 vs Rs. 1.69 tln in Q1’19


Fees recorded at Rs. 3.0 billion in Q1’20, down 17% year on year

Avg. Total Assets of Rs. 1.86 tln in Q1’20 vs Rs. 1.69 tln in Q1’19

Domestic - Fee income stood at Rs. 2.4 bln, 15% below Q1’19

Trade Commission at Rs 224 mln, down 21% YoY

Banca Commission at Rs 314 mln, 6% down YoY

Net UBL Omni at Rs 105 mln, down 57% YoY due to BISP impact

Home Remittances Commission Rs 322 mln, 2% down YoY

International Fees

Fee income stood at USD 3.5 mln, 35% down YoY in line with de-risking strategy

Capital Gain of Rs 342 mln vs Rs 5 mln in Q1’19

Exchange Income of Rs 732 mln, 19% down YoY

Dividend Income of Rs 394 mln, 74% up YoY

Domestic FX Income of Rs 863 mln, up Rs 76 mln YoY,

International FX Loss of USD 0.83 mln & FX Income of USD 0.87 mln in Q1’19


DOM net provision Reversal of Rs. 62 mln in Q1’20 (Q1’19: Net charge of Rs. 79 mln)

DOM asset quality stood at 6.1% at the end of Mar’20 (Dec’19: 5.2%)

International provisions of USD 24.1 mln taken in Q1’20 (Q1’19: USD 8.9 mln)

Overall NPLs closed at Rs. 86.3 bln at Mar’20 (Dec’19: Rs. 76.6 bln)

International NPLs at USD 332 mln at Mar’20 (Dec’19: USD 319 mln)

International coverage stood at 75.3% at Mar’20 (Dec’19: 77.3%)

International coverage with FSV Benefit stood at 86.2% at Mar’20 (Dec’19: 90.9%)

Overall asset quality stood at 12.4% (Dec’19: 10.9%)

At Bank level specific coverage at 77.5% (Dec’19: 82.5%) – DOM coverage at 81.5% (Dec’19: 92.1%)

Net provision charge of Rs. 3.7 bln in Q1’20 vs. Rs. 1.3 bln in Q1’19

Administrative expenses stood at Rs. 9.5 bln, up 6% YoY

Property related expenses were recorded at Rs. 1.6 billion for the current quarter, in line with Q1’19

IT expenses witnessed an increase of 13% year on year, as the bank continues to invest in technology platforms to transform banking services in line with its digital strategy

Other costs were recorded at Rs. 3.0 billion for the period under review (Q1’19: Rs. 3.2 billion)

Provisions and Admin Expenses


UBL - A strong legacy


UBL - A dominant Pakistani brand

A Look into the Past

1959 - UBL set up with first branch in Karachi

1963 - First Pakistani bank with a branch in

London

1967 - UBL enters the UAE

1974 - UBL nationalized with other private

banks

2002 - Privatized with divesture of 51% stake by

the GoP

2007 - An additional 25% of the share capital

divested by the GoP to international investorsthrough a GDR offering

2014 - Divesture of remaining 19.8% stake, a

USD 400 mln transaction, by the GoP throughsecondary public offering (SPO)

Second largest private sector bank inPakistan with 1,363 branches

Market share of 8.2%, 5.5 million customers

Highest credit ratings of AAA / A-1+ by VIS

One of the most profitable banks inPakistan - avg. RoE of 20% 2014-2019

First branchless banking proposition inPakistan i.e. UBL Omni

Cost efficient deposit mix driven by wellpenetrated branch network

Largest rural network - vast potential toincrease financial inclusion

At the forefront of innovation – digital lab,next gen mobile app, digital onboarding

Our Current Positioning

Key Strategic Advantages


UBL Innovation and Awards - continues to be acknowledged by the market

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 to launch QR code based payments in Pakistan

First Pakistani Bank to launch digital customer onboarding

First Bank to provide Instantaneous ATM/Debit cards tobranchless banking customers at the time of accountopening (UBL Omni)

First Bank in Pakistan where customer’s inward remittancesare deposited automatically on an ATM and VISA enableddebit card (UBL Tezraftaar Pardes Card)

First Bank in Pakistan to offer Prepaid VISA Debit Card

First Bank in Pakistan to offer Verified by Visa Service

First Bank in the world to issue VISA Debit Cards for G2Passistance to flood affectees

First Pakistani Bank to be granted status of AuthorizedDerivative Dealer (ADD) in Pakistan

First institution from Pakistan and third in South Asia to beaccredited with Primary Membership of International Swapsand Derivatives Association

Declared ‘Best Digital Bank in Pakistan for 2020’ byAsiamoney

Declared ‘Bank of the Year 2018 – Pakistan’ by The Banker,an affiliate of the Financial Times UK.

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

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

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

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

“National Medal of Innovation Award” 2016 for PioneeringG2P Payments – Pakistan Innovation Foundation

Top 25 Companies Award by the Pakistan Stock Exchangefor 2010-2012 and 2015 -2018

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

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

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

https://www.ubldirect.com/Corporate/BankingServices/Omni/Services/ForWalkinCustomer/AccountOpening.aspx

http://www.marketswiki.com/mwiki/File:Karachi_Stock_Logo.jpg


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

* Payout for 2018 is computed on normalized PAT excluding the effect of one-off pension cost

*

68 79 92 101

126 142 152 159 151

169 165

56 65 75 82 103 116 124 130 124

138 135

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Mar'20

Total Equity - St. BV Per share - St.

Rs in bln Cons. Equity Mar’20 - Rs. 186 blnCons. Book value Mar’20 - Rs. 152 per share

50%75% 85%

100%115%

130% 130% 130%110% 120%

25%

54.8%59.2% 58.2%

65.8% 64.2% 61.9% 57.4%63.2% 69.3%

76.8%

60.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0%

20%

40%

60%

80%

100%

120%

140%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1'20

Cash Dividend Dividend Payout Ratio

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

Ju

n-1

4

Se

p-1

4

De

c-1

4

Ma

r-1

5

Ju

n-1

5

Se

p-1

5

De

c-1

5

Ma

r-1

6

Ju

n-1

6

Se

p-1

6

De

c-1

6

Ma

r-1

7

Ju

n-1

7

Se

p-1

7

De

c-1

7

Ma

r-1

8

Ju

n-1

8

Se

p-1

8

De

c-1

8

Ma

r-1

9

Ju

n-1

9

Se

p-1

9

De

c-1

9

Ma

r-2

0

UBL's share price KSE 100 Index

Max 2020: Rs. 181.96

Dec'10 Dec'11 Dec'12 Dec'13 Dec'14 Dec'15 Dec'16 Dec'17 Dec'18 Dec'19 Mar'20

EPS 9.1 12.7 14.7 15.2 17.9 21.0 22.7 20.6 12.4 15.63 16.62

PE 7.5 4.1 5.7 8.7 9.9 7.4 10.5 9.1 9.9 10.5 6.1

0.7

5.6

10.4

15.3

20.1

25.0

2.0

5.6

9.2

12.8

16.4

20.0


Core Business Driving Growth


Bank Deposits

Deposits performance - Focus remains on growing low cost deposits

Cost of Deposits

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

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 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Domestic International Bank

Rs in bln Mar'20 Dec'19 Q1'20 Q1'19 Var % Q1'20 Q1'19

Current deposits 521 520 488 468 4.3% 0.0% 0.0%

Saving deposits 553 505 506 477 6.0% 10.8% 8.0%

CASA 1,074 1,025 994 945 5.1% 5.5% 4.0%

Tem deposits 174 192 180 144 25.4% 11.3% 8.8%

Domestic deposits 1,248 1,217 1,174 1,089 7.8% 6.4% 4.7%

International deposits 245 250 238 249 -4.0% 1.9% 2.2%

Total Bank 1,493 1,467 1,412 1,337 5.6% 5.7% 4.2%

International - USD in mln 1,470 1,617 1,529 1,788 -14.5% 1.9% 2.2%

Domestic CASA 86.1% 84.3% 84.7% 86.8%

Domestic Current to Total Deposits 41.8% 42.8% 41.6% 43.0%

Period End Cost of DepositsAverage


Advances portfolio down 2% from Dec’19

DOM advances yield up to 13.0% Q1’20 (Q1’19: 10.6%) – repricing in line with benchmark rate

Mar'20 Dec'19

Corporate Bank 365 373 -2%

Commodity 53 66 -20%

Small Enterprises 8 10 -18%

Consumer 17 17 -2%

Others 40 33 20%

Total Domestic 483 500 -3%

International 140 137 2%

Bank 623 636 -2%

International USD mln 838 882 -5%

Rs in blnDescription Var %

365

373

53

66

8

10

17

17

140

137

40

33

Mar'20

Dec'19

Corporate Bank Commodity Small Enterprises Consumer Bank International Others


DOM Investments’ yields – repricing upwards in 2020Change in mix to shorter tenor instruments

Deployment in GoP papers, RWA efficient

Non Funded income up as lower capital gains in Q1’19

363

258

446

405

10

13

33

40

64

71

55

54

Mar'20 Dec'19

T Bills PIBs

Listed shares GoP Sukuks / Eurobonds

Foreign bonds Others

Rs in bln

10.4%

11.4%

10.6%

9.0%

7.8% 7.8%

10.3%

11.6%

2013 2014 2015 2016 2017 2018 2019 Q1'20

226 394

908 732

5

342

Q1'19 Q1'20

Capital gains FX income Dividend

Rs in mln


Overview of Financial Performance


Balance Sheet - Standalone

Mar'20 Dec'19

Advances 623 636 -2.1%

Investments 970 840 15.5%

Lendings to Financial Institutions 19 20 -6.6%

Others 332 397 -16.2%

Total Assets 1,944 1,894 2.7%

Deposits 1,493 1,467 1.7%

Borrowings 186 154 20.3%

Subordinated Debts 10 10 0.0%

Others 91 93 -2.5%

Total Liabilities 1,779 1,725 3.2%

Net Assets 165 169 -2.2%

Share Capital 12 12 0.0%

Reserves 62 59 5.2%

Unappropriated Profit 71 72 -1.0%

Surplus on revaluation of Assets 20 26 -23.3%

Total Equity including Surplus 165 169 -2.2%

Rs in blnVar %Description


Income Statement - Standalone

Q1'20 Q1'19

Interest Earned 43.4 31.4 38.2%

Interest Expensed (26.0) (16.7) -55.5%

Net Interest Income 17.3 14.7 18.3%

Non Interest Income 4.7 5.0 -6.2%

Total Revenue 22.0 19.6 12.1%

Admin. Expenses (9.5) (9.0) -5.8%

Total Expenses (9.9) (9.1) -8.1%

Pre Prov. Operating Profit 12.1 10.5 15.6%

Provision Exp./Other writeoffs (3.7) (1.3) -179.7%

Profit Before Tax 8.4 9.2 -8.1%

Profit After Tax 5.1 4.2 21.5%

Effective Tax Rate 40.0% 54.6% 14.6%

Rs in blnVar %Description


Non Fund Income Standalone Results

Rs in mln

Q1'20 Q1'19

Fee, commission and brokerage income 2,440 2,864 -15%

Dividend income 387 226 71%

Income from dealing in foreign currencies 863 787 10%

Gain / (loss) on sale of securities (62) 14 -555%

Other income 219 192 14%

Domestic Total 3,847 4,083 -6%

International Total 818 892 -8%

Bank Total 4,666 4,974 -6%

International Total - USD in '000 5,251 6,418 -18%

Description Var %


Fees and Commissions performance Standalone Results

Rs in mln

Q1'20 Q1'19

Branch banking customer fees 382 419 -9%

Consumer finance related fees 212 216 -2%

Card related fees (debit and credit cards) 409 415 -1%

Investment banking fees 11 19 -43%

Financial Institution rebate / commission 58 59 -1%

Corporate service charges / facility fee 37 30 26%

Commission on trade 88 102 -13%

Commission on guarantees 135 180 -25%

Commission on cash management 182 175 4%

Commission on remittances including home remittances - net 553 671 -18%

Commission on bancassurance 314 333 -6%

Commission on Benazir Income Support Program - 179 -100%

Others 58 67 -14%


International Total 546 749 -27%

Bank Total 2,986 3,613 -17%

International Total - USD in '000 3,502 5,392 -35%

Description Var %


Administrative Expenses (1/2) Standalone Results

Q1'20 Q1'19

Total compensation expenses 3,316 2,728 -22%

Rent and taxes 94 18 -434%

Utilities cost 312 282 -11%

Security 242 224 -8%

Depreciation 188 173 -8%

Depreciation - Right of Use Assets 443 467 5%

Others 87 137 36%

Property expenses 1,367 1,301 -5%

Hardware & Software Maintenance 326 274 -19%

Depreciation & Amortisation 337 278 -21%

Network charges 143 144 1%

Information technology expenses 806 696 -16%

Rs in mlnDescription Var %


Administrative Expenses (2/2) Standalone Results

Q1'20 Q1'19

Legal and professional charges 45 59 23%

Outsourced service costs including sales commission 635 868 27%

Banking service charges 346 309 -12%

Cash transportation and sorting charges 197 248 20%

Depreciation 282 269 -5%

Stationery and printing 133 146 9%

Marketing, advertisement and publicity 98 118 17%

Insurance 47 25 -86%

Deposit protection premium 326 287 -13%

Donations 35 - -100%

Others 310 343 10%

Other operating expenses 2,454 2,673 8%


International Total 1,531 1,552 1%

Bank Total 9,474 8,951 -6%

International Total - USD in '000 9,508 11,189 15%

Cost to Income Ratio 43.0% 45.6% -2.5%

DescriptionRs in mln

Var %


Income Statement - Domestic

Q1'20 Q1'19

Interest Earned 40.1 27.7 45%

Interest Expensed (24.8) (15.2) -63%

Net Interest Income 15.2 12.4 23%

Non Interest Income 3.8 4.1 -6%

Total Revenue 19.1 16.5 16%

Admin. Expenses (7.9) (7.4) -7%

Total Expenses (8.4) (7.6) -11%

Pre Prov. Operating Profit 10.7 8.9 20%

Provision Exp./Other writeoffs 0.1 (0.1) 178%

Profit Before Tax 10.8 8.8 22%



Income Statement - Consolidated

Q1'20 Q1'19

Interest Earned 44.4 32.1 38.1%

Interest Expensed (26.6) (17.2) -54.8%

Net Interest Income 17.8 15.0 18.9%

Non Interest Income 4.9 5.8 -14.3%

Total Revenue 22.7 20.7 9.7%

Admin. Expenses (10.3) (9.8) -5.7%

Total Expenses (10.7) (9.9) -7.7%

Pre Prov. Operating Profit 12.0 10.8 11.4%

Provision Exp./Other writeoffs (3.7) (0.9) -319.2%

Profit Before Tax 8.3 9.9 -16.0%

Profit After Tax - Continued operations 4.9 4.8 1.4%

Loss from discontinued operations - net of tax (0.0) 0.8 -100.8%

Profit After Tax 4.9 4.1 21.2%

Effective Tax Rate 40.9% 51.1% 10.1%



Balance Sheet - Consolidated

Mar'20 Dec'19

Advances 683 695 -1.8%

Investments 1,010 875 15.4%

Lendings to Financial Institutions 21 22 -3.4%

Assets held for sale 0 0 2.9%

Others 364 432 -15.7%

Total Assets 2,078 2,024 2.7%

Deposits 1,592 1,558 2.2%

Borrowings 197 170 15.5%

Subordinated Debts 10 10 0.0%

Liabilities held for sale 0 0 -81.3%

Others 93 94 -1.5%

Total Liabilities 1,892 1,833 3.2%

Net Assets 186 191 -2.5%

Share Capital 12 12 0.0%

Reserves 70 67 5.6%

Unappropriated Profit 76 77 -1.2%

Surplus on revaluation of Assets 20 27 -25.4%

Total Equity attributable to equity holders of Bank 179 184 -2.3%

Non-controlling Interest (NCI) 7 7 -9.5%

Total Equity + NCI 186 191 -2.5%



Our Investment, focusand results in thelast 6 years


Balance Sheet Review

Rs. in mlns 2019 2018 2017 2016 2015 2014

Assets

Cash and balances with treasury and other banks 256,591 206,813 177,099 146,428 128,870 87,573

Lending to financial institutions 20,247 33,942 10,868 25,711 24,095 21,872

Investments- gross 849,441 792,857 1,095,555 808,959 721,651 499,060

Advances - gross 702,951 776,272 670,056 559,093 497,032 479,998

Operating fixed assets 54,348 47,556 46,205 35,582 31,630 30,303

Other assets 85,841 98,977 79,617 67,812 41,124 40,067

Total assets - gross 1,969,419 1,956,417 2,079,400 1,643,585 1,444,402 1,158,874

Provisions against non-performing advances (66,732) (60,336) (42,697) (40,525) (41,618) (45,734)

Provisions against diminution in value of investment (8,992) (6,482) (3,769) (2,428) (2,133) (1,726)

Total assets - net of provision 1,893,695 1,889,599 2,032,934 1,600,632 1,400,651 1,111,414

Liabilities & Equity

Deposits & other Accounts 1,467,063 1,366,060 1,272,788 1,167,124 1,051,235 895,083

Borrowing from financial institutions 154,484 268,124 512,650 201,550 163,132 53,065

Sub-ordinated loans 10,000 9,000 - - - -

Bills payable 22,927 27,249 29,848 24,520 13,392 9,554

Other liabilities 70,152 67,896 58,341 55,651 30,757 28,196

Total Liabilities 1,724,626 1,738,329 1,873,627 1,448,845 1,258,516 985,898

Net Assets / Liabilities 169,070 151,270 159,307 151,787 142,135 125,516

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

Reserves 59,320 54,439 43,847 40,455 38,402 34,130

Un - appropriated profit / (loss) 71,670 68,002 70,912 64,246 55,223 48,217

Equity - Tier I 143,232 134,683 127,001 116,943 105,867 94,589

Surplus on revaluation of assets 25,837 16,587 32,306 34,844 36,268 30,927

Equity 169,069 151,270 159,307 151,787 142,135 125,516

Total liabilities & equity 1,893,695 1,889,599 2,032,934 1,600,632 1,400,651 1,111,414


Profit & Loss

Rs. in mlns 2019 2018 2017 2016 2015 2014

Markup / return / interest earned 153,676 113,198 107,206 98,219 94,353 82,735

Markup / return / interest expensed (91,902) (56,964) (50,781) (41,177) (38,511) (37,769)

Net Markup / Interest income 61,774 56,234 56,425 57,042 55,842 44,967

Fee, commission, brokerage and exchange income 18,219 17,396 14,496 14,020 14,474 14,418

Capital gain & dividend income 1,541 6,709 6,762 8,629 6,442 3,806

Other income 1,916 967 904 960 1,070 1,071

Non interest income 21,676 25,072 22,162 23,609 21,986 19,296

Gross income 83,451 81,306 78,587 80,651 77,828 64,263

Administrative expenses and other charges (40,860) (43,222) (36,109) (32,809) (31,776) (29,597)

Profit before provisions 42,590 38,084 42,478 47,842 46,052 34,666

Donations (129) (203) (110) (87) (167) (112)

Provisions (8,220) (12,914) (2,450) (1,740) (3,710) (1,156)

Profit before taxation 34,242 24,967 39,918 46,015 42,175 33,398

Taxation (15,108) (9,741) (14,739) (18,285) (16,448) (11,469)

Profit after taxation 19,134 15,226 25,179 27,730 25,727 21,930


Key Financial Ratios & Share Information

Description 2019 2018 2017 2016 2015 2014

Key Financial Ratios

Return on equity (RoE) 13.8% 11.6% 20.6% 24.9% 25.7% 23.9%

Return on assets (RoA) 1.0% 0.8% 1.4% 1.8% 2.0% 2.1%

Profit before tax ratio 41.0% 30.7% 50.8% 57.1% 54.2% 52.0%

Advances to deposits ratio (ADR) - gross 44.3% 53.2% 49.8% 45.6% 45.2% 51.3%

Cost to revenue ratio 48.2% 47.8% 45.0% 39.6% 39.7% 45.2%

Growth in gross income 2.7% 3.5% -2.6% 3.6% 21.1% 14.7%

Intermediation cost ratio 2.9% 3.3% 3.0% 3.0% 3.3% 3.4%

Asset Quality (NPL ratio) 10.9% 8.8% 7.8% 8.0% 9.4% 11.2%

Net infection ratio 1.6% 1.1% 1.5% 0.8% 1.1% 1.9%

Capital adequacy ratio (CAR) 18.9% 17.7% 15.4% 15.1% 14.6% 13.9%

Share Information - Rs

Cash dividend per share 12.00 11.00 13.00 13.00 13.00 11.50

Dividend yield (based on cash dividend) 9.8% 5.9% 5.4% 8.4% 7.4% 8.7%

Dividend payout ratio (total payout) 76.8% 88.4% 63.2% 57.4% 61.9% 64.2%

Earning per share (EPS) 15.63 12.44 20.57 22.65 21.02 17.91

Price earnings ratio (PE) 10.52 9.86 9.14 10.55 7.37 9.86

Market value per share - at the end of the year 164.50 122.64 187.97 238.90 154.95 176.71

Market value per share - highest during the year 173.53 219.70 283.00 243.72 186.75 198.39


Quarterly Trends


Profit before tax (PBT) Rs in bln

7.8 8.0 8.3

9.3

10.9 11.2

10.2 9.9

11.3

13.5

10.8 10.411.2

11.8

8.4 8.8

4.1

6.55.9

8.59.2 8.8

8.3 7.98.4


+8%

-4%

-6%

-4%

+6%


Profit after tax (PAT) Rs in bln

5.2 5.3 5.3

6.1

7.1

5.6

6.5 6.5

7.37.0 7.0

6.4

7.3

6.0 5.9

6.3

2.6

3.6 3.5

5.5

4.2

5.4

4.9 4.75.1


-24%

+29%

-10%-3%

+7%


Deposits Rs in bln

847 858 866895

945992 994

1051 1070

1142 11471,0511,070

1,1421,1471,2731,301 1,2561,335

1,3661,344

1,4481,419

1,467 1493


-2%

+8%

-2%

+3%+2%


Net Advances Rs in bln

377

408 417434

420 430

459455 447

496509

519

498

565 567

627 624

675 673

716

636 642626

636 623


-11%

+2%+1%

-3% -2%


Gross Revenue Rs in bln

14.9

16.3

15.5

17.6

19.3

20.3

18.6

19.5

21.921.3

18.1

19.2

20.020.4

17.9

20.3

21.2 21.2

19.0

20.0 19.6

22.4

20.6

20.9

22.0


-2%

+14%

-8%

+1%

+5%


Net Interest Income (NII) Rs in bln

9.8

11.311.0

12.8 13.1

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

13.8 14.4

14.7 15.3 15.4

16.4

17.3


+4%

+2%

+1%

+6%

+6%


Non Funded Income (NFI) Rs in bln

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

7.37.0

5.1

5.7

5.0

7.2

5.2

4.54.7


-12%

+44%

-28%

-14%

+5%


Provisions Rs in bln

0.2

0.9

-0.10.2

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

2.62.9

5.5

1.3

3.2

2.11.7

3.7

Q1'14 Q2'14Q3'14Q4'14Q1'15Q2'15 Q3'15Q4'15Q1'16Q2'16Q3'16 Q4'16Q1'17Q2'17Q3'17Q4'17 Q1'18Q2'18 Q3'18Q4'18Q1'19 Q2'19Q3'19 Q4'19Q1'20

-76%

+140%

-17%

-34%

+114%


Administrative Expenses Rs in bln

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

9.99.6

10.7

9.0

10.3

10.0

11.0

9.5


-16%

+15%

-2%

+9%

-14%


The information contained herein reflects our latest business statement as at March31, 2020.

Except the historical information contained herein, statements in this Release whichcontain words or phrases such as ‘will’, ‘would’, ‘indicating’ expected to’ etc., andsimilar expressions or variations of such expressions may constitute ‘forward-lookingstatements’. These forward-looking statements involve a number of risks,uncertainties and other factors that could cause actual results to differ materially fromthose suggested by the forward-looking statements. These risks and uncertaintiesinclude, but are not limited to our ability to successfully implement our strategy,future levels of non-performing loans, our growth and expansion in business, theimpact of any acquisitions, the adequacy of our allowance for credit losses,technological, implementation and changes, the actual growth in demand for bankingproducts and services, investment income, cash flow projections, our exposure tomarket risks as well as other risks detailed in the reports filed by us with variousregulatory authorities as per applicable laws and regulations. UBL undertakes noobligations to update forward-looking statements to reflect event or circumstancesafter the date thereof.

Important Information


Thank You

Documents

Performance Highlights Q1 2020 Investor Relations Conference … · 2020-04-24 · UBL Performance Overview –Q1 2020 1 Speakers: Mr. Aameer Karachiwalla - Chief Financial Officer