United Bank Limited United Bank Limited Performance Review - PowerPoint PPT Presentation

United Bank Limited United Bank Limited Performance Review (Consolidated) Performance Review (Consolidated) 1H 2009 1H 2009 July 29, 2009

Key Highlights Key Highlights • PAT declines 21% yoy at Rs. 4.6 B • Net Interest income up 19%; – Increase in NII mainly due to higher Kibor rates (Avg Kibor Jan-Jun 08: 11%; Jan-Jun 09: 14%) – Increase in average advances by 13% – Net interest margins (NIMs) remained stable at 6.3% (June 08: 6.2%) • Non-interest income at Rs. 6.5 billion was 2% down – Fee income down due to reduced investment and acquisition activity in the corporate sector – Lower fees from distribution of retail financial products – Commissions on consumer loans declined by 30% owing to net attrition in the lending portfolio – Exchange income down by 26% due to lower volatility in the Pak rupee • Provision charge of Rs 6.6 B, – 50% charge from corporate; 24% from consumer; 11% each from commercial & international – Includes impairment loss of Rs. 484M 2 7/28/2009 4:49:09 PM

Key Highlights Key Highlights • Bank expenses up by 11%; – Dom. exp.up by 10% while inflation at 18% yoy; Intl rupee exp. + 23% ; Intl dollar exp. +1% – Cost/average asset ratio for Jun’09 at 2.8% compared to 5.6% for Dec’08 • Advances maintained at Rs. 379 B; Domestic +2% ; Intl -8% ; Intl $ -11% – Reflecting reduction in systemic credit offtake and Bank’s conscious strategy of risk containment • Deposits up by 6% to Rs 521 B; Domestic +4% ; Intl +10% ; Intl $ +7% – CASA ratio increased to 62% at Jun’09 from 59% at Dec’08 – Increase of Rs. 23 bn in current deposits • Total capital adequacy* of 11.8% and Tier-1 CAR of 8.0% (Basel II) * Bank only 3 7/28/2009 4:49:09 PM

Summary Summary Jun 2009 Dec 2008 Change Assets (PKR bn) 654 620 +5% Advances (PKR bn) 379 378 +0% Market Share-Adv- DOM 9.5% 9.2% Deposits (PKR bn) 521 492 +6% Market Share-Deposits- DOM 9.5% 9.6% Online branches 920 894 +26 ATMs 382 354 +28 ROAA 1.4% 1.4% ROAE 17% 17% Credit Rating (JCR-VIS) AA+/A-1+ AA+/A-1+ re-affirmed 4 7/28/2009 4:49:09 PM

Share Info Share Info Jun 2009 Dec 2008 EPS (Rs/share-annual.) 8.3 7.5 BV/share (Rs/share) 52.3 44.4 Price* - (Rs /share) 44.7 39.3 P/E 5.4x 5.2x P/BV 0.9x 0.9x # of shares 1,113M 1,113M * Jun-09 Price dat ed July 17, 2009 * Dec-08 Price dated March 04, 2009 adjust ed f or bonus shares 5 7/28/2009 4:49:09 PM

Income Statement (PKR bn) Income Statement (PKR bn) QTD QTD 6 month 6 month Jun'09 Mar'09 Var % Jun'09 Jun'08 Var % Net Interest Income 7.88 8.18 -4% 16.06 13.55 +19% Non Interest Income 4.00 2.47 +62% 6.47 6.58 -2% Operating Revenue 11.88 10.65 +12% 22.53 20.12 +12% Operating Expense (4.46) (4.20) -6% (8.66) (7.80) -11% Pre-Provision Oper. Profit 7.42 6.45 +15% 13.87 12.33 +13% Provision Exp./Other writeoffs (4.41) (2.18) -102% (6.60) (2.73) -141% WWF / SBP Penalty (0.09) (0.08) -4% (0.17) (0.38) +56% Profit Before Tax 2.92 4.18 -30% 7.11 9.21 -23% Profit After Tax 1.83 2.76 -34% 4.60 5.86 -21% 6 7/28/2009 4:49:09 PM

Balance Sheet (PKR bn) Balance Sheet (PKR bn) % Mix- Mix- Jun'09 Dec'08 Change Jun'09 Dec'08 Cash & bank balances 80.4 64.7 +24% 12% 10% Investments 127.6 115.0 +11% 20% 19% Advances 378.8 378.3 +0% 58% 61% Fixed assets 20.2 19.9 +2% 3% 3% * * * * * * * * * * * * Total Assets 654.1 620.2 +5% 100% 100% Deposits 521.2 492.3 +6% 87% 86% Borrowings 42.0 44.7 -6% 7% 8% * * * * * * * * * * * * Total Liabilities 595.9 570.8 +4% 100% 100% Shareholder equity 52.0 47.1 +10% 89% 95% Surpl/(Def.) on reval.of assets 6.2 2.3 +174% 11% 5% Total Equity 58.3 49.4 +18% 100% 100% 7 7/28/2009 4:49:09 PM

Financial Ratios Financial Ratios QTD QTD YTD YTD FY Jun'09 Mar'09 Jun'09 Jun'08 Dec'08 Loan/Deposits 73% 75% 73% 71% 77% ROAE 13% 21% 17% 24% 17% ROAA 1.1% 1.8% 1.4% 2.1% 1.4% Cost/Income Ratio 60% 50% 54% 44% 52% Gross NPLs/Gross Advances 8.8% 8.2% 8.8% 6.5% 7.3% Net NPLs/Gross Advances 2.9% 3.0% 2.9% 1.8% 2.6% Coverage Ratio 70% 67% 70% 78% 68% CAR (Standalone-Basel II) 11.8% 11.5% 11.8% 12.7% 10.6% Tier 1 CAR (Standalone-Basel II) 8.0% 7.8% 8.0% 8.1% 8.0% 8 7/28/2009 4:49:09 PM

Deposit Structure Deposit Structure Deposit Mix Deposit Mix (YTD Jun 09) (YTD Jun 09) - - Bank (Parent Company) Bank (Parent Company) Cost of Deposits Cost of Deposits QTD Jun'09 QTD Mar'09 Period Avg.Yield Period Avg.Yield Other Deposits – PKR 12bn end Rs B /Cost end Rs B /Cost Contribution 2% Cost 0.0% Saving deposits 164 5.2% 155 5.7% Fixed Deposits – PKR 182bn Contribution 36% Current deposits 150 0.0% 124 0.0% Cost 8.7% Current Deposits–PKR 150bn Term deposits 182 8.7% 180 9.5% Contribution 30% Cost 0% Other deposits 12 0.0% 11 0.6% Total deposits 509 5.0% 469 5.7% CASA 62% 59% 395 5.5% 365 6.2% Domestic deposits International deposits 114 3.4% 104 3.7% 1,397 3.4% 1,289 3.7% Intl. deposits -US$ M Saving Deposits – PKR 164bn 71% 67% Domestic CASA Contribution 32% 29% 27% International CASA Cost 5.2% Total Deposits = PKR 509 bn Cost of Deposits = 5.4% CASA = 62% 9 7/28/2009 4:49:09 PM

Advances by Business Advances by Business % Jun'09 Dec'08 Change Mix 09 Yield 09 Yield 08 Net Advances Corporate Bank 154.4 165.9 -7% 55% 14.5% 12.5% Commercial Bank 86.2 61.4 +40% 31% 16.0% 14.4% Consumer Bank 30.0 36.4 -18% 11% 18.8% 16.5% Others 8.5 10.2 -17% 3% 10.4% 12.0% Domestic 279.1 273.9 +2% 100% 15.3% 13.5% International 89.3 97.2 -8% 8.2% 7.5% Bank 368.4 371.1 -1% 13.5% 12.1% Subsidiaries 10.4 7.2 +46% Bank-Consolidated 378.8 378.3 +0% - International (US$ M) 1,096 1,229 -11% Advances by Business 2007 2008 Jun-09 180 166 154 160 140 131 120 97 100 89 86 Rs B 80 64 61 60 49 47 36 40 30 19 17 17 20 - Corporate Bank Commercial Bank Consumer Bank Overseas Others (incl subsidiaries) 10 7/28/2009 4:49:09 PM

Consumer Advances by Product Consumer Advances by Product 2007 2008 Jun-09 Yield Jun 09 25% 26 23 22% 21% 20% 18% 22 18% 20% 18% 18 17 14 15% 13 10% 9 6 6 5 5 4 4 4 4 3 4 4 4 3 5% 4 2 1 0 0% Drive Address Credit Card Cashline Businessline Money % Jun'09 Dec'08 Change Mix 09 Yield 09 Yield 08 Drive 14.3 17.7 -19% 48% 17.9% 13.6% Address 3.7 4.4 -15% 12% 17.5% 13.9% Credit Card 3.7 4.3 -15% 12% 21.4% 23.1% Cashline 3.4 4.1 -17% 11% 20.4% 22.7% Businessline 3.6 4.0 -9% 12% 18.5% 16.1% Money 1.2 1.8 -31% 4% 22.0% 20.7% Total 30.0 36.4 -18% 100% 18.8% 16.5% 11 7/28/2009 4:49:09 PM

QTD – – Net Interest Income (Bank Level) Net Interest Income (Bank Level) QTD Bank QTD June 2009 QTD March 2009 Avg.Yiel Avg.Yiel Rs B PE AVG IE d /Cost PE AVG IE d /Cost Interest Earning Assets 356 349 11.4 13.1% 349 359 12.4 14.0% Performing Advances 149 149 5.3 14.3% 156 160 5.9 15.0% Corporate 84 74 2.8 15.2% 62 63 2.6 17.1% Commercial 28 30 1.4 18.7% 32 35 1.7 19.6% Consumer 89 89 1.8 8.2% 94 95 1.9 8.2% International 5 7 0.1 6.0% 6 7 0.2 15.0% Others Investments (earning) 120 130 3.6 11.1% 138 115 3.3 11.6% 28 14 0.4 10.5% 14 19 0.5 10.4% Lending To Financial Institution 22 27 0.1 1.6% 25 21 0.1 2.0% Others Total int. earning assets (a) 526 520 15.5 12.0% 526 515 16.3 12.8% 106 86 - 0.0% 97 70 - 0.0% Non earning assets 633 606 15.5 10.3% 622 586 16.3 11.3% Total Assets (A) Interest bearing liabilities 509 470 (5.9) 5.0% 469 468 (6.6) 5.7% Total deposits 427 382 (3.2) 3.4% 380 367 (3.2) 3.5% Core Deposits 35 35 (0.9) 9.7% 34 40 (1.1) 11.3% Unisaver Plus 47 53 (1.8) 13.5% 55 62 (2.3) 15.0% UTTIP 12 12 (0.4) 12.7% 12 12 (0.4) 13.1% Subordinated Debts - TFC 41 55 (1.5) 10.8% 69 42 (1.3) 12.4% Borrowings 561 537 (7.7) 5.8% 550 522 (8.2) 6.4% Total interest bearing liab (b) 71 69 - 0.0% 72 63 - 0.0% Non earning liabilities & equity 633 606 (7.7) 5.1% 622 586 (8.2) 5.7% Total Liabilities+Equity (B) - - 7.8 6.2% - - 8.1 6.4% Net Interest Margin (a-b) - 5.1% - 5.6% Spread (A-B) 12 7/28/2009 4:49:09 PM