00000000000000000000000000000 000 1 Vision We are geared to - - PowerPoint PPT Presentation
Investor Presentation 3Q 16 00000000000000000000000000000 00000000000000000000000000000 000 1 Vision We are geared to deliver a bold new world Our Vision is to be the innovator of banking solutions to the wider Corporate, SME and Retail
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Our Vision is to be the innovator of banking solutions to the wider Corporate, SME and Retail segments and to be their Bank of choice, through professional and empowered people
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To our customers we provide the means of economic upliftment through customized banking and financial services. To our shareholders we provide a return on their investment above industry norm. To our staff we are a learning and innovative organization providing opportunities for faster career progression within a pleasant work environment. We adhere to the practice of good Corporate Governance in the eyes of the regulatory authorities. We are conscious of the need to be a responsible corporate citizen for the betterment of our society.
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Established as the 8th indigenous Commercial Bank First bank to launch Internet banking Restructuring of the bank through a Sampath Bank led consortium Landmark investment from Middle East - Royal Family of Saudi Arabia Listed in the CSE, Highest oversubscribed IPO Acquisition of NAMAL and UB Finance CFI award for Best SME Bank TPG through its affiliate Culture Finance Holding strikes landmark deal with Union Bank New Core-Banking system Implementation First bank in Sri Lanka to implement Microsoft cloud technology 65 branches with access to over 2,700 ATM’S
2014-2016 2011-2013 2001-2010 1995-2000
Introduction of Transaction Banking BBB (Stable) rating from ICRA
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Cash Management System Implemented Fitch changed outlook from BB+ (Stable) to BB+ (Positive) Re-launched “Kidz Saver Account” 65 Branches,119 ATMs of which 54 are Offsite ATMs and Employees 1,171 Recognition at Global Excellence awards 2016 Personal Loan portfolio crossed the LKR 2,000Mn mark BBB (Stable) rating from ICRA Re-Launched an improved Online Banking platform Launched “Investment Plus” investment plan
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“Union Bank’s first 9 months’ results are impressive, given the changes taking place in the market place. The growth achieved despite macro-economic challenges can be attributed to the operational excellence and the renewed strategic business focus
With the backing of a strong capital base, a focused business plan and a dynamic team geared for performance; Union Bank will continue to build on this success, while taking on the challenges and opportunities that would emerge within the final quarter
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Group
Bank
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91% growth in Profit After Tax
LKR Mn
3Q 16 3Q 15 Net Interest Income 672 498 174
34.9%
Net Fee and commission income 67 66 1
2.1%
Net Trading and other operating income 290 158 132
83.3%
Total Operating income 1,030 722 307
42.6%
Operating Cost 793 597 (196)
(32.7%)
Impairment Charges 20 30 9
33.3%
Net profit before taxes and VAT on FS 216 95 121
128.4%
Taxes including VAT on FS 108 39 (69)
(176.9%)
Net Profit for the period 108 57 52
91.9%
Growth
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125% growth in Profit After Tax
LKR Mn
YTD 16 YTD 15 Net Interest Income 1,651 1,538 113
7.3%
Net Fee and commission income 188 120 68
56.7%
Net Trading and other operating income 846 414 432
104.3%
Total Operating income 2,685 2,072 613
29.6%
Operating Cost 2,226 1,706 (520)
(30.5%)
Impairment Charges 38 137 99
72.2%
Net profit before taxes and VAT on FS 420 230 190
82.6%
Taxes including VAT on FS 158 113 (45)
(39.8%)
Net Profit for the period 262 117 145
125.0%
Growth
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Net Interest Income Other Non-Interest Income
Net Fees and Commission
Significant increase in NII as a result of portfolio growth and improvement in NIM.
528 511 498 484 444 535 672
1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16
LKR Mn
25 30 66 60 62 59 67
1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16
LKR Mn
109 147 158 223 261 295 290
1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16
LKR Mn
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Total Assets (LKR Mn) Loans (LKR Mn) Deposits (LKR Mn) LKR Mn Sep 16 Dec 15 Treasury Assets
25,592 24,490 1,102 4.5%
Loans & Advances
52,418 40,095 12,323 30.7%
Non Earning assets
3,959 3,609 350 9.7%
Cash & Balance with CB
4,813 2,811 2,002 71.2%
Total Assets
86,783 71,005 15,777 22.2%
Borrowings
18,003 15,188 2,816 18.5%
Customer Deposits
49,589 37,653 11,937 31.7%
Non Interest Bearing Liabilities
2,121 1,243 878 70.6%
Equity
17,070 16,922 147 0.9%
Total Equity & Liabilities
86,783 71,005 15,777 22.2%
Growth
Sep 16 Dec 15 Sep 16 Dec 15 Sep 16 Dec 15
Strong growth of 22.2% YTD in Total Assets.
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Segmental dispersion of Loans
Assets Funding
Loans – 60.4% Treasury Assets – 29.4% Deposits – 57.1% Treasury Borrowings – 20.7%
Assets Composition Funding Composition
Product composition of Deposits
48% 42% 10%
Corporate SME Retail
6% 17% 77%
CA SA FD
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Loans and Receivables Capital Adequacy
Net NPL
Significant progress in NPL reduction despite the aggressive loan growth. Strong Capitalisation to support the growth.
16,902 20,024 23,462 25,945 40,095 43,259 48,513 52,418
2011 2012 2013 2014 2015 1Q 16 2Q 16 3Q 16 LKR Mn 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 2011 2012 2013 2014 2015 1Q16 2Q16 3Q 16 Core Capital Total Capital 3.0% 4.5% 7.8% 7.4% 2.7% 2.3% 2.0% 1.9%
2011 2012 2013 2014 2015 1Q 16 2Q 16 3Q 16
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Customer Deposits CASA
CASA grows by 29.5% to Rs.11,703Mn YTD.
19,345 23,642 28,340 27,809 37,653 42,598 45,803 49,589
2011 2012 2013 2014 2015 1Q16 2Q16 3Q16 LKR MN
5,262 4,752 5,441 6,924 9,039 9,809 10,583 11,703 2011 2012 2013 2014 2015 1Q16 2Q16 3Q16 LKR Mn
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Performance Indicators Sep YTD 16 Dec YTD 15
Return on Equity
2.1% 1.1%
Return on Assets
0.4% 0.3%
Net Interest Margin
2.8% 3.4%
Gross - Non Performing Loans
2.7% 3.5%
Net - Non Performing Loans
1.9% 2.7%
Core Capital Adequacy Ratio
23.0% 24.4%
Total Capital Adequacy
22.4% 24.0%
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65% growth in Profit After Tax
LKR Mn
3Q 16 3Q 15 Net Interest Income 806 604 202
33.4%
Net Fee and commission income 106 111 (5)
(4.1%)
Net Trading and other operating income 314 167 148
88.6%
Total Operating income 1,226 881 345
39.2%
Operating Cost 913 700 (213)
(30.4%)
Impairment Charges 50 48 (2)
(4.1%)
Net profit before taxes and VAT on FS 262 133 129
97.0%
Taxes including VAT on FS 122 49 (74)
(151.8%)
Net Profit for the period 140 85 55
65.6%
Growth
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148% growth in Profit After Tax
LKR Mn
Sep YTD 16 Sep YTD 15 Net Interest Income 2,035 1,833 202
11.0%
Net Fee and commission income 311 241 70
29.0%
Net Trading and other operating income 999 424 575
135.6%
Total Operating income 3,346 2,499 847
33.9%
Operating Cost 2,586 1,999 (587)
(29.4%)
Impairment Charges 110 187 77
41.3%
Net profit before taxes and VAT on FS 650 314 337
107.2%
Taxes including VAT on FS 235 146 (89)
(61.0%)
Net Profit for the period 415 167 248
148.7%
Growth
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Total Assets (LKR Mn) Loans (LKR Mn) Deposits (LKR Mn) LKR Mn Sep 16 Dec 15 Treasury Assets
24,876 24,034 842 3.5%
Loans & Advances
59,172 45,450 13,722 30.2%
Non Earning assets
4,411 4,042 369 9.1%
Cash & Balance with CB
5,117 3,015 2,102 69.7%
Total Assets
93,577 76,542 17,035 22.3%
Borrowings
19,384 16,432 2,952 18.0%
Customer Deposits
54,486 41,624 12,862 30.9%
Non Interest Bearing Liabilities
2,711 1,771 940 53.1%
Equity
16,995 16,715 280 1.7%
Total Equity & Liabilities
93,577 76,542 17,035 22.3%
Growth
Sep 16 Dec 15 Sep 16 Dec 15 Sep 16 Dec 15
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Board of Directors Legal Form
A Public Limited Liability Company incorporated in Sri Lanka under the Companies Act No. 17 of 1982. Re- registered under the Companies Act No. 7 of 2007. Listed as a public quoted Company at the Colombo Stock Exchange in 2011. A Licensed Commercial Bank under the Banking Act
Date of Incorporation
February 2nd, 1995
Auditors
Ernst & Young Chartered Accountants,
Colombo 10
Leadership Team
Name Title Indrajit Wickramasinghe Director/ Chief Executive Officer Hiranthi de Silva Vice President Wholesale Banking Malinda Samaratunga Chief Financial Officer Ravi Divulwewa Vice President Credit Rajeev Munasinghe Vice President Information Technology Ravi Jayasekera Vice President Human Resources
Vice President Operations Chaya Jayawardena Vice President Retail Banking Suhen Vanigasooriya Wije Dambawinna Chief Risk Officer Vice President Treasury
Credit Ratings
ICRA : (SL) BBB Stable Fitch : BB+ (lka) Positive Name Title
Chairman Alexis Lovell Deputy Chairman (Retired - 27-09-16) Asoka de Silva Senior Director Indrajit Wickramasinghe Executive Director/ CEO Sow Lin Chiew Non Independent, Non Executive Director Priyantha Fernando Independent, Non Executive Director Sabry Ghouse Independent, Non Executive Director Yudhishtran Kanagasabai Independent, Non Executive Director (Appointed - 27-07-2016) Ranvir Dewan Non Independent, Non Executive Director Gaurav Trehan Non Independent, Non Executive Director Puneet Bhatia Non Independent, Non Executive Director Michael J. O’Hanlon Non Independent, Non Executive Director Ayomi Aluwihare Independent, Non Executive Director Sumedh Jog Alternate Director Yoke Sun Woon Alternate Director