[PPT] - 2008/ 09 T hir d Qtr Re sults Inve stor Br ie fing Vic tor PowerPoint Presentation

SLIDE 1

2008/ 09 T hir d Qtr Re sults Inve stor Br ie fing

Vic tor Osadolor E xe c utive Dir e c tor / Gr

up CF

O UBA PL C August 7, 2009

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3Q- Jun 2009 financ ials at a glanc e

Pe rforma nc e impa c te d by c ha lle ng ing ope ra ting e nvironme nt

2

GROSS E ARNINGS 160.6 120.3 34% PBT & E XCE PTIONAL ITE MS 33.7 34.9

3%

E XCE PTIONAL ITE MS 21.3 1.7 1123% PROFIT BE FORE TAX 12.4 33.1

63%

BAL ANCE SHE E T SIZE 1,979 1,586 25% TOTAL ASSE TS 1,452 1,146 27% DE POSITS 1,154 865 33% SHARE HOL DE RS' FUNDS 208 185 13% ROa E 9.7% 18.8% ROa A 1.5% 2.8% COST/ INCOME RATIO 67.2% 59.2%

Jun- 09 Jun- 08

ACT UAL (N’ bn)

PARAME T E RS GROWT H

%

ACT UAL (N’ bn)

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E

xe c utive Summa ry

De ta ile d Ana lysis o f re sults
K

e y mile sto ne s

Ope ra ting e nviro nme nt
Outlo o k fo r the re ma ining q ua rte rs
Q & A

Outline

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E xe c utive Summa ry

1) UBA – Ove rvie w of 3Q09 pe rforma nc e

Ste a dy Growth in ma rke t sha re

46% CAGR in Gro ss E

a rning s

35% CAGR in Ba la nc e She e t; I

ndustry le a de r

31% CAGR in De po sits; I

ndustry le a de r

12% Yo Y g ro wth in b ra nc he s. Curre nt le ve ls: 694 b ra nc he s 32% Yo Y g ro wth in AT

Ms to 1,592

6% g ro wth in Custo me r b a se to 6.9m

Pr
fitability and e ffic ie nc y impac te d by e xc e ptional c har

ge of N21.3bn

E

xc e ptio na l Cha rg e o f N21.3b n pre c ipita te s a de c line in PBT to N12.4b n (N1.7b n in 3Q08)

Cha rg e c o mprise s o f Spe c ia l Asse t o f N4.1b n, ML

N11.7b n, Othe rs N5.5b n

PBT

b e fo re e xc e ptio na l ite ms sta b le a t N33.7b n

…a nd la rg e ly d rive n b y impro ving fund-b a se d inc o me F

e e b a se d inc o me fla t

E

nha nc e d c o ntrib utio n fro m e x Nig e ria o pe ra tio ns (11%)

ROa A a nd C/ I

dippe d due to I nte re st ra te pe g a nd inc re a se d le ve ls o f pro visio ns

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E xe c utive Summa ry

Sta ble F

unding mix a nd Robust c a pita l a de qua c y

L

w c o st funds ste a dy a t 61%

Ca pita l Ade q ua c y Ra tio (CAR) o f 19.3; 9% a b o ve re g ula to ry minimum

Strong liquidity

L

iq uid a sse t/ to ta l a sse t a t 34%

L

iq uid ity Ra tio o f 41% (16% b uffe r o n re g ula to ry minimum)

Hug e ne t pla c e r o f funds in the I

nte rb a nk ma rke t

Stable F

itc h Rating, de spite c halle nging landsc ape

B+/ Sta ble Outlook

Mor

e Conse r vative Risk Manage me nt postur e

NPL

r atio dips to 8.9%

F

ull pro visio ning fo r Ma rg in lo a ns, de spite CBN’ s re spite till De c ’ 09

Co nve rg e nc e b e twe e n lo c a l GAAP a nd I

F RS pro visio ning sta nda rds

Spe e dy imple me nta tio n o f Ba se l I

I , COSO a nd I F RS

Re g ula r I

nte rna l Ca pita l Ade q ua c y Asse ssme nt Pro c e ss (I CAAP)

Ne t c ove ra g e ra tio - 82% L

a n/ de posit ra tio a t 46.4% c onsiste nt with g roup ta rg e ts

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E xe c utive Summa ry

2) Ke y Mile stone s with the Qua rte r

Ma jor de a ls/ Pa n Afric a n a spira tions

Re c e ive d $150m, 5-ye a r tra de fina nc e fa c ility fro m AfDB Re c e ive d $200m, 3-ye a r c le a n line fro m Sta ndc ha rt L

e d a $265mn upstre a m fina nc ing de a l fo r E xxo n Mo b il/ NNPC

L

e d a n N18.5b n Bo nd fo r I mo Sta te g o vt.

Co mme nc e d o pe ra tio ns in Se ne g a l

UBA Group now ha s 694 bra nc he s in14 c ountrie s

L

ic e nse re c e ive d to o pe ra te in Za mb ia

T
war

ds Se r vic e E xc e lle nc e … .

L

a unc he d Nig e ria ’ s first c a sh a nd c he q ue de po sit AT M

Custo me r Co mpla int Ma na g e me nt Syste m (CCMS) la unc he d F

e ma le L e a de rship Gro up (F L G) e sta b lishe d fo r se rvic e e xc e lle nc e

GSS no w fully o pe ra tio na l in 140 b ra nc he s

Commitme nt to e nha nc e d sta ke holde r va lue
A. J. Be llo a ppo inte d to the Bo a rd a s E

xe c utive Dire c to r

Pa rtne rship with CNBC fo r live b ro a dc a st o f Nig e ria n c a pita l ma rke t

upda te s

L

a unc he d ‘ UBA DNA pro g ra m’ to re invig o ra te o ur Co re Va lue s, H.E .I .R

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E xe c utive Summa ry

3) Ope ra ting e nvironme nt L

c al

F

itc h a ffirms Nig e ria ’ s BB- ra ting with sta b le o utlo o k – July’ 09

E

xte rna l re se rve s a t $43.2b n a s CBN pursue s me a sure s to stre ng the n it

GDP g ro wth a t 4.85% a s infla tio n ra te e a se s to 11.2% Ne w CBN Go ve rno r a ppo inte d

Pursue s Risk Ma na g e me nt, Re g ula tio n a nd Re po rting
F

X ra te s re ma ins fa irly sta b le a t N146/ $1

L

iq uidity sq ue e ze e a se s

Ne w DG a ppo inte d a t the SE

C to re sume la te r in the ye a r

E

q uity ma rke t g a ine d 35% in 2Q09, b ut vo la tility re ma ins

I

nc re a se d c a pita l flo ws

Wo rld Ba nk re le a se d $1b n fo r infra struc ture a nd $500mn a s b udg e ta ry suppo rt
ADB $200m e xpe c te d

Globa l

Re c e ssio n e a se s? ?

Ra te o f GDP de c line a nd jo b lo sse s slo w do wn
Ra lly in o il pric e s, up 35% in 2Q09; no w $71pb l
Glo b a l e q uity inde x re b o unds fro m Ma rc h lo ws
Ma ssive I

nje c tio n o f fisc a l stimulus suppo rts liq uidity

US/ UK

c o mpa nie s sta rt to re po rt q ua rte rly pro fits

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E

xe c utive Summa ry

De ta ile d Ana lysis of re sults
Growth in ma rke t sha re
Pro fita b ility
E

ffic ie nc y

Ba la nc e She e t Gro wth
Risk ma na g e me nt – Ca pita l Ade q ua c y, L

iq uidity & Asse t Qua lity

K

e y Mile sto ne s

Ope ra ting e nviro nme nt
Outlo o k fo r the re ma ining q ua rte rs
Q & A

Outline

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Fe e s & Comm 18 % Ot he r s 2 % FX I nc ome 4 % I nt r I nc ome 7 6 %

9

Growth in market share – Gross Income

46% CAGR in Gross Earnings (GE) Steady growth in GE QoQ Fund-Based Income is the key driver

accounts for 76% (68% in 3Q08)
Fueled by wide branch network, low

cost deposit and strong liquidity

YoY Gross Earnings 2007 – 09 (N’ bn)

75.2 120.3 160.6

60 120 180 3Q07 3Q08 3Q09

C A G R

f

4 6 %

Qua rte rly Gross E a rning s (N’ bn)

Composition of Gross Earnings

39.0 39.1 42.1 49.3 51.7 57.2 51.7 20 40 60 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09

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Growth in market share – Balance Sheet

Strong balance sheet evolution

Wider network in Nigeria
Pan African expansion
IT/GSS Enablement
enhanced risk management

framework

Strong Balance Sheet Size (N’trillion) Solid Deposit Base (N’trillion) Net Loans (N’billion)

1.08 1.59 1.98 1 2 3Q07 3Q08 3Q09 CAGR of 35.4%

0.67 0.87 1.15 1 1 2 3Q07 3Q08 3Q09

CAGR of 31.2%

325 455 535 200 400 600 3Q07 3Q08 3Q09

C A G R

f

2 8 . 3

%

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6.5 6.9 5 6 7 3Q08 3Q09 1,205 1,592 800 1200 1600 3Q08 3Q09 621 694 500 600 700 3Q08 3Q09

11

Growth in market share – footprints

Market leader in distribution network

Market share in excess of 20%
Easy access to cheap customer

deposits

Convenient banking for customers
Supported by state of the art IT

platform

Largest Branch Network Solid Customer Base ( in million) Strong growth in ATM Channels

+12% + 6

%

+32%

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E

xe c utive Summa ry

De ta ile d Ana lysis of re sults
Gro wth in ma rke t sha re
Profita bility
E

ffic ie nc y

Ba la nc e She e t
Risk ma na g e me nt – Ca pita l Ade q ua c y, L

iq uidity & Asse t Qua lity

K

e y Mile sto ne s

Ope ra ting e nviro nme nt
Outlo o k fo r the re ma ining q ua rte rs
Q & A

Outline

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38.2 38.9 20 40 3Q08 3Q09

13

E a rning s drive n L a rg e ly by fund- ba se d Inc ome

Interest & discount contribute 76% to GE
Driven by investment in Govt securities,

placement, Loans and advances

Fee based Income relatively flat
Reduced investment banking income
Open Position Limits (OPL) reduced from 20% to

5% of Shareholder funds

Reduced spreads, holding period and tradable FX

volumes

Fee Based income flat (N’bn) Composition of fund based income

Others 4% Loans 33% Bank Placements 10% BAs, CPs & GCPs 18% D-House Placements 6% Overdrafts 21% FGN Bonds 4% T-Bills 4% Fund- based Income 76% Fee- based Income 24%

Fund based income drive gross earnings

(68% in 3Q08) (32% in 3Q08)

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Improving dive rsific a tion of E a rning s

E

x Nig e ria ope ra tions a re 11% of Gross E a rning s (1.6% in 3Q08) N/ Yor

k and B/ F aso ac c ount for 60%

Contribution from Non Ba nk Subs dippe d to 2.5% (9% in 3Q08)

L

w c a pita l ma rke t a c tivitie s

Inc r

e ase in numbe r

f Bank subs

Gross Earnings by Geography

98.4% 89.0% 1.6% 11% 0% 25% 50% 75% 100% 3Q08 3Q09 N igeria Outside N igeria

n

Others 6% Benin 9% Ghana 18% N/York & GCI 32% Cameroun 7% B/Faso 28%

Analysis of Ex-Nigeria Gross Earnings

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Group Profita bility impa c te d by provisions a nd E xc . Ite ms

Inc re a se in provisions forc e s PBT

to dip

PBT

stable de spite pr

visions and de c line

in fe e ba se d inc ome

Provisions we re ma de on loa ns, diminution
n inve stme nts, c apital mar

ke t e xposur e s

Mg t’ a g g re ssive provisioning/ c onse rva tive

risk mg t posture / c onve rg e nc e to IF RS manife st

E

xc e ptiona l provisions tota le d N21.3bn (N1.74bn in 3Q08)

1.7 21.3 12 24 3Q08 3Q09

Exceptional Items (N’ bn)

+1,124%

19.6 34.9 12.4 33.7 20 40 3Q07 3Q08 3Q09 3Q09***

PBT After Exc Items (N’ bn)

w/out Exc. Items

Stable PBT Before Exc Items (N’ bn)

19.6 34.9 33.7 20 40 3Q07 3Q08 3Q09

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Br e akdown of the E xc e ptional Ite ms

Bulk of Exceptional Items are for Margin Loans

Special Assets 4.1 Margin Loans 11.7 Others 5.5 Totals 21.3

Application of Exceptional Items (N’ bn)

Conse rva tive Risk Ma na g e me nt
Provisions on ma rg in loa ns ma y

be writte n ba c k

Ma rke t se ntime nts a re

positive

E

quitie s ma rke t is c urre ntly unde rva lue d

Special Assets 19.2% Others 25.8% Margin Loans 54.9%

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ML / T r ansc or p/ VNA

Ma rg in L

a ns
Curre nt outsta nding Ba la nc e : N24bn
Re struc ture d N16bn
L

T V 70%

Stoc k pric e e rosion: 50%
Provision to da te : N11.7bn

T

ra nsc orp

Offe re d a loa n by a c onsortium of Ba nks to proc ure 51% of NIT

E L / MT E L

F

GN re voke d the sa le this ye a r a nd ha s offe re d a re fund.

Me c ha nic s/ Instrume nts a re be ing fina lize d a nd sig ne d.
Pote ntia l loss re la te s sole ly to dispute s ove r inte re st ra te for whic h we ha ve ma de

a ntic ipa te d provisions

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ML / T r ansc or p/ VNA

VNA

Owne d by a c ore fore ig n inve stor a nd othe r

dive r se loc al Institutional Inve stor s

UBA provide s ba nking re la tionship a nd e xte nde d two fa c ility type s to VNA in

2008.

A Bond se c ur

e d by two e mbr ac e r plane s

a nd A Working Ca pita l fac ility tie d to daily sa le s, and c olla te ra lize d with a le tte r of c omfort

e tc

UBA c o- loc ate s with VNA in and outside Nige r

ia for syne r gistic be ne fits

VNA’s turnove r ha s g rown four fold in the la st 2 ye a rs on the ba c k of g ood

c ustome r pa trona g e , inc r e a se d fle e t a nd route s.

L
a ns a re we ll se rvic e d a nd YT

D re pa yme nt is in e xc e ss of $32m.

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E

xe c utive Summa ry

De ta ile d Ana lysis of re sults
Gro wth in ma rke t sha re
Pro fita b ility
E

ffic ie nc y

Ba la nc e She e t
Risk ma na g e me nt – Ca pita l Ade q ua c y, L

iq uidity & Asse t Qua lity

K

e y Mile sto ne s

Ope ra ting e nviro nme nt
Outlo o k fo r the re ma ining q ua rte rs
Q & A

Outline

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E ffic ie nc y Ra tios dip..

Inte re st ra te pe g
T

his ha s ho we ve r ha s no w b e e n lib e ra lize d

Inc re a se d provisioning le ve ls
Highe r

proportion of L

ans to Cor

por a te , now 68% (64% in 3Q08)

Hig he r proportion of te nore d de posit, now

39% (34% in 3Q08)

We e xpe c t improve me nts in c oming

pe riods:

GSS initia tive a nd P20

Return on average Assets Net Interest Margins

4.5% 6.4% 6.1% 2% 4% 6% 8% 3Q07 3Q08 3Q09

Cost to Income (C/I) Ratios

62.0% 59.2% 67.2% 25% 50% 75% 3Q07 3Q08 3Q09

2.3% 2.8% 1.5% 0% 1% 2% 3% 3Q07 3Q08 3Q09

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21

Attractive enterprise value despite a temporary drop in ROaE

Return on average Equity

Strong e r c a pita l ba se

11.3% CAGR in
wne r

s’ e quity

Shareholders’ Funds (N’ billion)

168 185 208 70 140 210 3Q07 3Q08 3Q09

CAGR of 11.3%

16.8% 18.8% 9.7% 0% 10% 20% 3Q07 3Q08 3Q09

0.86 1.17 1.30 0.00 0.50 1.00 1.50 3Q07 3Q08 3Q09

Price to Book Ratio (x)

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E

xe c utive Summa ry

De ta ile d Ana lysis of re sults
Gro wth in ma rke t sha re
Pro fita b ility
E

ffic ie nc y

Balanc e She e t
Risk ma na g e me nt – Ca pita l Ade q ua c y, L

iq uidity & Asse t Qua lity

K

e y Mile sto ne s

Ope ra ting e nviro nme nt
Outlo o k fo r the re ma ining q ua rte rs
Q & A

Outline

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N475bn are Liquid assets
Liquidity ratio (Liquid Assets//Deposit – 41%)
Growing Balance Sheet Size – N2tr

Retail 32% Corporate 68%

1.08 1.59 1.98 1 2 3Q07 3Q08 3Q09

23

Strong Balance Sheet….1

Balance Sheet Mix Bal Sheet size (N’bn)

CAGR of 35.4%

Liquid Assets 33% Loans 27% Fixed Assets 5% Investments 4% Contingents 27% Other Assets 4% 325 455 535 200 400 600 3Q07 3Q08 3Q09

Net Loans (N’bn)

C A G R

f

2 8 . 3 %

Loan distribution by type

(64% in 3Q08) (36% in 3Q08)

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Strong Ba la nc e She e t… .2

Local Deposits drive funding

14% of Ba la nc e she e t funde d by e quity
De posits c ontribute 80% to funding
Re ta il re ma ins ke y sourc e of de posits

Growing De posit Ba se (N’tn)

0.67 0.87 1.15 1 1 2 3Q07 3Q08 3Q09

C A G R

f

3 1 % Public Inst. 37% Corporate 25% Retail 37% Financial Inst. 1%

Analysis of Deposits – By source

Other Liab 5% M gd Funds 1 % SHF 1 4% Foreign Deposits 8% Local Deposits 72%

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Cheap and improving spread in funding base

Deposit Liabilities by location Large distribution channels facilitate access to cheap deposits.

694 branch network
21 to be added from countries we

have obtained fresh licenses Current and Savings deposits account for 61% of deposits

88% of deposits generated in Nigeria
Contribution from ex Nigeria
perations increase from 2% to %12

Structure of Deposits, by type

Current & Savings A/C, 61% Time, 39% Outside Nigeria, 12% Nigeria, 88% (98% in 3Q08) (2% in 3Q08)

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E

xe c utive Summa ry

De ta ile d Ana lysis of re sults
Gro wth in ma rke t sha re
Pro fita b ility
E

ffic ie nc y

Ba la nc e She e t E

vo lutio n

Risk manage me nt – Capital Ade quac y, L

iquidity & Asse t Quality

K

e y Mile sto ne s

Ope ra ting e nviro nme nt
Outlo o k fo r the re ma ining q ua rte rs
Q & A

Outline

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L iquidity a nd Ca pita l Ade qua c y

Ca pita l Ade qua c y Ra tio L

a n to De posit Ra tio

12.0% 21.0% 19.3% 0% 10% 20% 3Q07 3Q08 3Q09 48.7% 52.6% 46.4% 0% 20% 40% 60% 3Q07 3Q08 3Q09

LR has a 16% buffer over

regulatory minimum

Good CAR despite challenging
perating environment
Loan/Deposit ratio in line with

group targets

L R - L iquid Asse ts to T

ta l De posits

UBA- L R Re gulatory- L R

31% 42% 41% 25% 40% 40% 0% 25% 50% 3Q07 3Q08 3Q09

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More Conse rva tive Risk Ma na g e me nt posture

5.2% 2.9% 8.9% 0% 5% 10% 3Q07 3Q08 3Q09

NPL Ra tio

Key Management Actions

Aggressive provisioning stance on Margin Loans

despite CBN’s window of Dec’09

Pursuit of convergence between local GAAP and

IFRS provisioning standards ahead of Dec

Spe e dy imple me nta tion of Ba se l II a nd IF

RS

Re g ula r Inte rna l Ca pita l Ade qua c y Asse ssme nt

Proc e ss (ICAAP)

Re g ula r Stre ss T

e sting

Sc e nar

io planning

Susta in strong c a pita l ba se a nd CAR

82% 129% 82% 0% 50% 100% 150% 3Q07 3Q08 3Q09

Ne t NPL Cove ra g e Ra tio

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E

xe c utive Summa ry

De ta ile d Ana lysis o f re sults
Ke y Mile stone s
Ope ra ting e nviro nme nt
Outlo o k fo r the re ma ining q ua rte rs
Q & A

Outline

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E xte nding our Globa l F

otprint

Abu Dha bi Paris

6.9mn a c c ounts; up from 6.5mn Ope ra tions in 14 c ountrie s; up from 8 694 bra nc he s; up from 621 1,592 AT

Ms; up from 1,205

3,713 POS T

e r m.; up fr

m 3,296

Ove r 200 ba nking produc ts; up

from 145

Re g ula to ry a ppro va l Ope ra tio na l

Ke nya Za mbia T a nza nia Nig e ria Ug a nda Ca me roon Gha na Cote d’Ivoire L ibe ria Ga mbia Se ne g a l T c ha d Burkina F a so Guine a D.R Congo Ga bon USA UK

S. L

e one Gua ng zhou Be nin Cayman Isla nd Ma li

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N18.5bn Imo State

Bond Issue

First Cash/Cheque

Deposit ATMs launched

With strong security

features

31

Ke y mile stone s

O p e r a t i

n

c

m

m e n c e d i n S e n e g a l

Total Assets – N3.1bn
Deposit Base – N943mn
Net Assets – N1.74bn
4 branches
15 ATMs
$150mn Trade

Finance Facility from the AfDB

Led a $265mn

upstream financing deal for Exxon Mobil/NNPC

Ke y Mile stone s

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E

xe c utive Summa ry

De ta ile d Ana lysis o f re sults
Re vie w o f UBA
Ope ra ting e nvironme nt
L
c a l
Glo b a l
Outlo o k fo r the re ma ining q ua rte rs
Q & A

Outline

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33

Ove rvie w of Nig e ria n e c onomy..1

YoY infla tion ra te , la st 12 months

F

itc h affir ms Nige r ia’s r ating at BB- with stable outlook

F
re ig n re se rve s a t $43.2bn- July 7 re port
1st Qtr GDP g rowth a t 4.85% ;
Infla tion ra te e a se d to 11.2%
Ra lly in oil pric e s – up by 35% ; now $71/ bl;

Produc tion le ve ls impa c te d by Nig e r De lta c ha lle ng e s

Re la tive sta bility in F

X ra te s N146/ 1$

Supply le ve ls inc re a se
Ma rg ins btw offic ia l a nd pa ra lle l ra te s

shrink to 5% (23% in 2QU9)

L

iquidity improve s

M2 rose 15.6% YoY in Ma y 2009
N806bn F

AAC funds re le a se d in 2Q09

11.2% 13.2% 12.1% 15.1% 0% 4% 8% 12% 16% J-08 J-08 A-08 S-08 O-08 N-08 D-08 J-09 F-09 M-09 A-09 M-09 J-09

Key Macro-Economic Variables 2009 2008 GDP Grow th (Mar-09) 4.85% 6.60% Inflation Rate (Jun-09) 11.2% 12.4% Monetary Policy Rate (Jul-09) 6.0% 10.3% Official Exchange Rate (N/US$) 146.5 117.0 External Reserves (US$) 43.2 62.0 NIBO Rate (Jun-09) 21.4% 13.1% NSE All Share Index (Jun-09) 26,862 55,949 Market Cap - N'trn (Jun-09) 6.13 10.92

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Ove rvie w of Nig e ria n e c onomy… 2

Ne w CBN Gove rnor a ppointe d
Promise s to stre ng the n re g ula tion, risk mg t

a nd re porting

Re le a se s ove r 15 c irc ula rs on liquidity,

Cre dit, F X ma tte rs e tc

Cuts MPR to 6% but to hove r within +/ - 2%

ba nd

WDAS re introduc e d
T

a rg e t e xa ms on Ba nks

Gua ra ntie s Inte rba nk le nding a nd

pla c e me nts by PF AS

Ope ns up Re po window for F

GN Bonds

e tc
Ne w SE

C DG a ppointe d – to re sume in Se pte mbe r 2009

NSE

pe rforma nc e re ma ins vola tile

Inc re a se d a c tivity
Avg . da ily volume of 438mn (235mn in

1Q09)

500 1,000 1,500 2,000 2,500 3,000

1-Apr 16-Apr 4-Ma y 15-Ma y 28-Ma y 11-Jun 24-Jun

5,000 10,000 15,000 20,000 25,000 30,000 35,000

Vol (mn) ASI

NSE tre nde d up April to June 2009

10.25% 9.75% 9.75% 9.75% 8.00% 6.00% 0.0% 4.0% 8.0% 12.0% 1Q- 08 2Q- 08 3Q- 08 4Q- 08 1Q- 09 2Q- 09

Cha ng e in Mone ta ry Polic y Ra te (MPR)

Jul-09 Apr-09 Feb-09 Dec-08 Sep-08 Aug-08 Jul-09 Apr-09 Feb-09 Dec-08 Sep-08 Aug-08

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35

E

xe c utive Summa ry

De ta ile d Ana lysis o f re sults
Re vie w o f UBA
Ope ra ting e nvironme nt
L
c a l E

c o no my

Globa l E

c onomy

Outlo o k fo r the re ma ining q ua rte rs
Q & A

Outline

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36

Positive outlook for oil pric e s

Sour c e : e ia

Strong re c ove ry in Bre nt c rude pric e (US$/ bbl)

Oil pric e ha s re c ove re d

by 102% in the la st 6mths

Sustaine d gr
wth in Asia

should ke e p oil de ma nd str

ng

68.11 33.73

50 100 150

Jul-04 Ma r-05 Nov-05 Jul-06 Ma r-07 Nov-07 Jul-08 Ma r-09

+102%

54%

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Confide nc e le ve l re bounds a nd slow ra te of job losse s

Ra te of job losse s Confide nc e le ve l

Confide nc e hits re bounds but

re ma ins vola tile a nd inde te rmina te

Monthly ra te of job losse s slows in

the US to 345,000 in Ma y- 09 (780,000 in Ja n- 09)

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Stable c apital flows to Afr ic a

38

IMF

for e c asts Positive ne t flow into Afric a in 2009/ 10

T

his sugge sts the r e gion has good pote ntial

Nig e ria ha s re c e ive d

$1.5bn from the World Bank for infrastr uc tur e a nd budg e ta ry support

T

his should boost loc a l c a pa c ity

Ste a dy Ca pita l F lows to Afric a (US$’Billion)

Sour c e : IMF

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Global E quitie s r e c ove r fr

m Mar

c h L

ws

Sour c e : WSJ

E

quity ma rke ts g a ine d 57% sinc e mid Mar c h 2009

Corpora te re le a se s

looking up

Impa c ting inve stor

de mand Globa l Dow Inde x

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E

xe c utive Summa ry

De ta ile d Ana lysis o f re sults
Re vie w o f UBA
Ope ra ting e nviro nme nt
Outlook for

the r e maining quar te r s

Q & A

Outline

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41

Globa l output to c ontinue its re bound
IMF

pr

je c ts 1.4% de c line in 2009 a nd a 2.5% g rowth in 2010
F

itc h r ating to r e infor c e c onfide nc e in Nige r ia

Nig e ria ’s GDP g rowth to hove r a round 4.5%
Oil pric e to re ma in strong (at btw $60- $70) on the ba c k of

susta ine d de ma nd e sp from China

L

iquidity e ase to c ontinue

Inc re a se d a c tivity in the bond ma rke t
Capital mar

ke t to de e pe n – CBN to c olla bora te with SE C, NSE

Cha lle ng ing F

X ra te s sta bility; CBN to de fe nd the Na ira

Stoc k mar

ke t volatility to r e main

Re g ula tion, Risk Ma na g e me nt a nd Re porting - A ke y foc us for

ba nks

Ove ra ll outlook for the ne xt qua rte r

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UBA’s pe r for manc e r e main solid de spite c halle nging ope r ating e nvir

nme nt
F

itc h a ffirme d ra ting of B+/ Sta ble outlook

Solid Ca pita l Ade qua c y Ra tio (19.3% )
Gr
wing mar

ke t shar e ; str

ng ba la nc e she e t a nd g ross e a rning s
We ll dive r

sifie d inc ome str e am – 11% from e x- Nig e ria ope ra tions

L

a rg e st distribution c ha nne ls in the re g ion – 694 bra nc he s, 1,592 AT Ms

L

ar ge st c ustome r base

PBT

be fore e xc ite m sta ble a t N33.7bn, de spite c ha lle ng ing ope ra ting e nvironme nt.

Inte g ra te d risk ma na g e me nt posture – Ag g re ssive Ma rgin loa n e tc

provisioning of N21.3bn de spite CBN’s re spite

Hug e ne t pla c e r of funds in the inte rba nk ma rke t
Appe a ling E

nte rprise Va lue (P/ B of 1.3x)

Pa n Afric a n E

xpa nsion stra te g y (14 c ountrie s)

Inc r

e ase d disc losur e standar ds (IF RS) and Risk Manage me nt ar c hite c tur e (Base l 2)

Ag g re ssive c ost sa ving initia tive s (GSS, P20)

Conc lusion

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T hank you

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Q&A

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Appe ndix

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Brie f history of UBA

1949 F r e nc h & Br itish Bank L imite d (“F BB”) c omme nc e s busine ss 1961 Inc or poration of UBA to take ove r the banking busine ss of the F BB 1970 IPO on the NSE 1984 E stablishme nt of NY br anc h 1998 GDR pr

g r

amme e sta blishe d 2004 E stablishme nt of UBA Ghana 2005 Me rg e r with Standar d T r ust Bank Ac quisition of Contine ntal T r ust Bank Ne w se nior manage me nt te am in plac e 2006 Pur c hase & assumption of T r a de Bank out of liquidation 2007 Suc c e ssful Public Offe r and Rights Offe r Pur c hase & assumption of 3 liquidate d banks: City E xpr e ss Bank, Me tr

politan

Bank & Afr ic an E xpr e ss Banks Inve stme nt in Afrinve st in UK (r e - br ande d UBA Capital) 2008 Pur c hase & assumption of 2 liquidate d banks: Gulf Bank & L ibe r ty Bank E stablishme nt of UBA Came r

un, UBA Cote d’Ivoir

e , UBA Uganda, UBA Sie r r a L e one & UBA L ibe ria L aunc h of UBA Mic r

financ e Bank

L aunc h of UBA F X Mar t (Bur e au de c hange ) Ac quisition of 51% of Banque Inte r nationale du Bur kina F a so 2009 Re pr e se ntative offic e ope ne d in Par is, F r anc e

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