2007 Investor Forum - UBA Plc

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2007 Investor Forum - UBA Plc

Building Africa’s s Global BankUnited Bank for Africa PlcTony Elumelu, Group Managing Director & CEOUBA 2007 Investors ForumLagos3 December 2007


Forward looking statementsPresentation and subsequent discussion may contain certain forward-looking statements withrespect to the financial condition, results of operations and business of the Group. These forwardlookingstatements represent the Group’s expectations or beliefs concerning future events andinvolve known and unknown risks and uncertainty that could cause actual results, performance orevents to differ materially from those expressed or implied in such statements.www.ubagroup.com2


Exceeding expectationsResultForecastBalance sheet N1.6 trillion 18% N1.4 trillionCapital Adequacy 25% 5% 20%Profit Before Tax N29.5 billion 43% N20.7 billionEarnings per share N2.61 40% N1.87Dividend per share N1.20 20% N1.00www.ubagroup.com3


2007 Scorecard


Largest financial services provider in NigeriaAssets (N billion)1,6001,200CAGR = 89%1,19180088440002512005 2006 2007Note: UBA changed its financial year end from March to September in 2006. September 2006 results represent 18 monthsof tradingwww.ubagroup.com5


Retail deposit taking institutionDeposits (N billion)1,200800CAGR = 86%77697240002052005 2006 2007Note: UBA changed its financial year end from March to September in 2006. September 2006 results represent 18 monthsof tradingwww.ubagroup.com6


Rapidly growing loan bookLoans & advances (N billion)500400300200CAGR = 86%3201000681102005 2006 2007Note: UBA changed its financial year end from March to September in 2006. September 2006 results represent 18 monthsof tradingwww.ubagroup.com7


High quality asset baseAssets by typeLoans by typeLoans (27%)Other (12%)Retail (45%)Financialinstitutions(48%)T-bills + CBN (13%)Corporate (55%)www.ubagroup.com8


Steady improvement in asset qualityNPL ratio¹12.6%3.5%4.4%2005 2006 2007Coverage ratio²CommentsSpike in 2006 due to merger provisionsImprovement in 2007 due to strong riskmanagement and aggressive recoveriesAverage maturity of the portfolio is less than oneyearProvisions in line with regulatory prudentialguidelinesProportion of secured loans102.3%65.2%102.2%Otherwisesecured(66%)Unsecured(1%)Secured againstreal estate (33%)2005 2006 2007Note: Change of financial year end in 2006 from March to September. 2006 results represent 18 months of trading1NPL ratio defined as non-accrual portion of overdue loans as a percentage of gross loans2Coverage ratio defined as provisions for loan losses as a percentage of non-performing loans. Provisions include interest in suspensewww.ubagroup.com9


Measured top-line growthGross earnings (N billion)120100806040CAGR = 78%90.4109.520026.12005 2006 2007Note: UBA changed its financial year end from March to September in 2006. September 2006 results represent 18 monthsof tradingwww.ubagroup.com10


Healthy interest margins and fee incomeOperating income (N billion)CAGR = 66%816348%56%2349%51%52% 44%2005 2006 2007Fee incomeNet interest marginNote: UBA changed its financial year end from March to September in 2006. September 2006 results represent 18 monthsof tradingwww.ubagroup.com11


Strong cost controlCost-to-income ratio100%77.9%75%71.1%61.7%50%2005 2006 2007Note: UBA changed its financial year end from March to September in 2006. September 2006 results represent 18 monthsof tradingwww.ubagroup.com12


Rapid profit growthProfit before tax and exceptional items (N billion)35302520CAGR = 83%29.5151012.8506.52005 2006 2007Note: UBA changed its financial year end from March to September in 2006. September 2006 results represent 18 monthsof tradingwww.ubagroup.com13


Delivering shareholder returnsEarnings & dividends per share (N)N3.00EPSDPS2.612.502.001.871.501.000.501.001.200.002006 2007Note 1: UBA changed its financial year end from March to September in 2006. September 2006 results represent 18months of tradingNote 2: 2007 EPS based on weighted average number of shares outstanding over the yearNote 3: DPS to be ratified at AGM on 18 Januarywww.ubagroup.com14


High share price growthShare price performance (N)60.00UBA50.00Suspension during PublicOffer40.0030.00Relative NSE index20.00Oct-06Jan-07Apr-07Jul-07Oct-07www.ubagroup.com15


Capital structureShareholdersForeigninstitutions (19%)Staff (5%)Comments 11,496,779,980 fully dilutedoutstanding shares including205,600,000 shares pending listing Foreign institutions include IFC andAfrican DBOther (23%)Localinstitutions (53%)Ratios Total Balance sheet: N1.6 trillion CAR: 25% (min. 10%) SHF: 168 billionNote: shareholder split is UBA estimate based on Registry recordswww.ubagroup.com16


International expansionUBA Capital LondonUBA West Africa Nigeria Ghana Cote d’Ivoire Liberia Sierra Leone Burkina FasoUBA Central Africa CamerounUBA East Africa UgandaUBA New Yorkwww.ubagroup.com17


Future outlook (2007-2010)


Overall strategic approach3 escalating levels of focus:Phase 3GlobalSTB/UBAmergerPhase 1Nigeria… createdthe leadingfinancialinstitution inNigeria...Phase 2Africa...move intoall Africanregions...... becomeleadingemergingmarkets bankwith globalfootprint in allinternationalfinancialcentreswww.ubagroup.com19


3-year strategic intent (2010)ParametersNigerian RankingSize: Total assets Deposit base Gross earnings Branch/ATM networkProfitability: PBT ROEEnterprise Value: Market capitalizationObjectives# 1Sub-Saharan Africa Ranking Top 6Global RankingAfrican PresenceGlobal RankingTop 30030 countriesOffices in at least 8 leading emerging/ globalmarketswww.ubagroup.com20


Top 6 bank in Sub-Saharan Africa350300250200150100500Source: UBA average growth rate projectionswww.ubagroup.com21Bank of Alenxandria (Egypt)Banque Centrale de populaire (Morocco)Banque de L'agr (Algeria)Banque de Caire (Egypt)BMCE (Morocco)BNA (Algeria)Balance sheet (US$ billion)To achieveour Africanaspirationwe need toreach US$30billionbalancesheetStandard Bank (SA)First Rand (SA)ABSA (SA)NedBank (SA)Investec (SA)National Bank of EgyptUBA (2010)Bank MISR (Egypt)BEA (Algeria)Libyan Arab BankAlijariwafa (Morocco)Groupe Banques Popularies (Morocco)Credit Populaire de Maroc (Morocco)UBA (2007)Zenith Bank (Nigeria)


3-year financial goalsBalance sheet (N billion)4,5003,0001,500CAGR: 33% forbalancesheet 41% fortotalassets 37% fordepositbase02007 2008 2009 2010Balance sheet size Total assets Deposit basewww.ubagroup.com22


3-year financial goalsEarnings (N billion)3503002502001501005002007 2008 2009 2010Gross earningsProfit before taxCAGR of: 43% for gross earnings 59% for PBTwww.ubagroup.com23


More than just a bank


A bank holding companyNigeriaBankingInvestmentBankingRetailBankingInternationalBankingInsuranceCorporatebankingEnergy bankingPrestigebankingConsumerbankingCommercialbankingInstitutionalbankingGlobal marketsAssetmanagementTrusteesCustodiansStockbrokersRegistrarsMerchantbankingMicrofinancebankRetail financialservicesNorth/ West/Central AfricaEast/ SouthAfricaEurope/Americas/ Asia/Middle EastLife insuranceInsurancebrokingTransactionbankingwww.ubagroup.com25


Q&AAFRICA’SGLOBALBANKwww.ubagroup.com26

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