UBA Group 2014 Q1 Results

Quarter One 2014

1

Investors/Analysts Presentation

APRIL 29, 2014

From time to time, the Bank makes written and/or oral forward-looking statements, including in this presentation

and in other communications. In addition, representatives of the Bank may make forward-looking statements

orally to analysts, investors, the media and others. All such statements are intended to be forward looking

statements. Forward looking statements include, but are not limited to, statements regarding the Bank’s

objectives and priorities for 2014 and beyond and strategies to achieve them, and the Bank’s anticipated financial

performance. Forward looking statements are typically identified by words such as

“will”, “should”, “believe”, “expect”, “anticipate”, “intend”, “estimate”, “may” and “could”.

By their very nature, these statements require the Bank to make assumptions and are subject to inherent risks and

uncertainties, general and specific. Especially in light of the uncertainty related to the financial, economic and

regulatory environments, such risks and uncertainties – many of which are beyond the Bank’s control and the

effects of which are difficult to predict – may cause actual results to differ materially from the expectations

Forward Looking Statements

effects of which are difficult to predict – may cause actual results to differ materially from the expectations

expressed in the forward-looking statements. Risk factors that could cause such differences include: credit, market

(including equity, commodity, foreign exchange, and interest

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such factors should be considered carefully, as well as other uncertainties and potential events, and the inherent

uncertainty of forward looking statements, when making decisions with respect to the Bank and we caution

readers not to place undue reliance on the Bank’s forward looking statements.

Any forward looking statements contained in this presentation represent the views of management only as of the

date hereof and are presented for the purpose of assisting the Bank’s investors and analysts in understanding the

Bank’s financial position, objectives and priorities and anticipated financial performance as at and for the periods

ended on the dates presented, and may not be appropriate for other purposes. The Bank does not undertake to

update any forward-looking statements, whether written or oral, that may be made from time to time by or on its

behalf, except as required under applicable securities legislation

2

Important Notes

Definition of terms:

FY means “Full Year”; and Q1 means “First Quarter”; Q2 means “Second Quarter”; HY means “Half Year”; H1 means “First Half”;

Q3 means “Third Quarter” and 9M means “Nine Months”. The results were prepared in line with the International Financial

Reporting Standards (IFRS).

Regional split of African countries we operate in

WAMZ UEMOA CEMAC E&SA

Ghana Burkina Faso Cameroon Kenya

Guinea Benin Republic Chad Mozambique

Liberia Cote d'Ivoire Congo Brazzaville Tanzania

Sierral Leone Senegal Congo DRC Uganda

3

Important disclosure:

This report was prepared by UBA to provide background information on the Group. The report is issued for information purposes

only, especially with regards to enabling users understand the inherent potentials of the business. It is therefore not a solicitation

to buy or sell the stock.

The information contained herein is subject to change and neither the bank nor its staff is under any obligation to notify you or

make public any announcement with respect to such change.

Users are hereby advised to exercise caution in attempting to rely on these information and carry out further research before

reaching conclusions regarding their investment decisions.

Sierral Leone Senegal Congo DRC Uganda

Gabon Zambia

Outline

Overview of UBA

Macroeconomic Overview

Quarter One 2014 Financial Highlights

1

2

3

4

Review of Quarter One 2014 Financial Results

Focus on UBA Congo Brazzaville

4

5

Appendix6

5

1. Overview of Macro Economy

Nigeria

GDP ($bn) 432.0

GDP Growth 6.8%

Population (mn) 166.2

Inflation Rate 7.8%

Interest Rate 12.0%

Debt-to-GDP Ratio 11.0%

Exchange Rate 162.5

Foreign Reserve ($bn) 41.3

Ghana

GDP ($bn) 41.0

GDP Growth 4.9%


Inflation Rate 14.5%

Interest Rate 18.0%


Exchange Rate 2.3

Foreign Reserve ($bn)4.7

Overview of Macro EconomyGuinea

GDP ($bn) 7.0

GDP Growth 4.2%



Interest Rate 16.0%

Debt/GDP Ratio 64.1%

Exch. Rate 7,020.0

Guinea

Senegal

Sierra

LeoneLiberia

Ivory

Coast

Ghana

Nigeria

Cameroon

Chad

DR Congo

Uganda

Kenya

Gabon

Burkina Faso

Benin

Locations outside AfricaLiberia

GDP ($bn) 2.0

GDP Growth 8.1%

Population (mn) 4.2

Inflation Rate 8.5%

Interest Rate 13.5%


Exchange Rate 85.5

Cote D’Ivoire

GDP ($bn) 25.0

GDP Growth 9.80%


Inflation Rate -0.2%

Interest Rate 3.5%


Exchange Rate 486.4

Sierra Leone

GDP ($bn) 4.0

GDP Growth 20%


Inflation Rate 8.2%

Interest Rate 10.0%


Exchange Rate 4,328.5

Burkina Faso

GDP ($bn) 10.0

GDP Growth 8.0%


Inflation Rate 0.1%

Interest Rate 3.5%


Exchange Rate 513.2

Benin Republic

GDP ($bn) 8.0

GDP Growth 4.2%


Inflation Rate 0.4%

Interest Rate 3.5%


Exchange Rate 513.2

Cameroun

GDP ($bn) 25.0

GDP Growth 6.1%


Inflation Rate 1.6%

Interest Rate 3.3%


Exchange Rate 486.4

TChad

GDP ($bn) 11.0

GDP Growth 7.2%


Inflation Rate 3.1%

Interest Rate 3.3%


Gabon

GDP ($bn) 19.0

GDP Growth 6.1%

Population (mn) 1.6

Inflation Rate 3.3%

Interest Rate 3.3%


Exchange Rate 515.4

USA

GDP ($bn) 15,685

GDP Growth 2.7%


Inflation Rate 1.6%

Interest Rate 0.3%

Debt/GDP Ratio101.6%

Exchange Rate 1.00

Foreign Reserve ($bn)

145,205

France

GDP ($bn) 2,613

GDP Growth 0.8%


Inflation Rate 0.6%

Interest Rate 0.3%


Exchange Rate 1.35

Uganda

GDP ($bn) 20.0

GDP Growth 6.9%


Inflation Rate 7.1%

Interest Rate 11.5%


Exchange Rate 2,475.00

Congo

Zambia

Tanzania

Mozambique

WA EA CA

Exchange Rate 513.2

Senegal

GDP ($bn) 14.0

GDP Growth 0.03%


Inflation Rate -0.1%

Interest Rate 3.5%


Exchange Rate 513.2

Zambia

GDP ($bn) 21.0

GDP Growth 6.5%


Inflation Rate 7.7%

Interest Rate 12.0%


Exchange Rate 5.6

Exchange Rate 515.4

Congo BrazzavilleGDP ($bn) 14.0

GDP Growth 4.9%

Population (mn) 4.3

Inflation Rate 3.4%

Interest Rate 3.3%


Exchange Rate 505.9

Congo

GDP ($bn) 18.0

GDP Growth 8.1%


Inflation Rate 1.2%

Interest Rate 2.0%


Exchange Rate 924.0

Kenya

GDP ($bn) 37.0

GDP Growth 4.4%


Inflation Rate 6.3%

Interest Rate 8.5%


Exchange Rate 86.5

Tanzania

GDP ($bn) 28.0

GDP Growth 6.5%



Interest Rate 12.0%


Exchange Rate 1621.5

Mozambique

GDP ($bn) 15.0

GDP Growth 7.1%


Inflation Rate 3.0%

Interest Rate 8.3%


Exchange Rate 30.9

Exchange Rate 1.35

Foreign Reserve (#bn)

125.7

UK

GDP ($bn) 2,440

GDP Growth 2.8%


Inflation Rate 1.9%

Interest Rate 0.5%


Exchange Rate 1.06

Foreign Reserve (#bn)

110,883

Source: Trading Economics

6

7

2. Quarter One 2014 Financial

Highlights

Q1 2014 Financial Highlights

Comprehensive Income & Profit 31-Mar-14 31-Mar-13 % Change

COMPREHENSIVE

INCOME & PROFIT

TREND

(N’million)

Gross Earnings 68,079 62,942 +8.16%

Net Interest Income 29,272 27,159 +7.78%

Operating Income 45,512 44,633 +1.97%

Operating Expenses (31,427) (29,393) +6.92%

Profit Before Tax 13,544 17,155 -21.05%

Profit After Tax 12,587 15,562 -19.12%

EFFICIENCY AND

Cost-to-Income Ratio (%) 69.1% 61.2%

Return on Average Equity (%) 22.1% 31.0%EFFICIENCY AND

RETURNReturn on Average Equity (%) 22.1% 31.0%

Return on Average Assets (%) 1.9% 2.6%

Financial Position & Risk 31-Mar-14 31-Dec-13 % Change

FINANCIAL

POSITION TREND

(N’million)

Total Assets 2,613,256 2,642,296 -1.10%

Total Deposits 2,188,861 2,221,764 -1.50%

Net Loans 1,009,811 969,591 +4.77%

Net Assets 246,279 235,036 +4.78%

BUSINESS CAPACITY

RATIOS

Loan-to-Deposit Ratio (%) 46.13% 44.30%

Capital Adequacy Ratio (%) 21.2% 23.20%

Liquidity Ratio (%) 50.5% 55.00%

8

9

3. Review of Quarter One 2014

Financial Highlights

Income Analysis

Gross earnings by income typeGross income trend (N’bn)

52.4

62.968.1

Q1'12 Q1'13 Q1'14

68.4% 70.5% 73.3%

31.6% 29.5% 26.7%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Q1'12 Q1'13 Q1'14

non

interest

income

interest

income

• Growing revenue base, up 8.2% in Q1 2014

• Interest income represents 73.3% of total

revenue;

• There’s an increasing contribution from

operations in other African countries to 21% in

first quarter 2014 from 19% in the corresponding

period in 2013.

Revenue split by geography

10

Q1'12 Q1'13 Q1'14

81.10% 79.2%

18.90% 20.8%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

Q1'13 Q1'14

Nigeria & RoW Africa (excl. Nig)

Profitability

Operating Income (N’bn) Profit After Tax for the Year (N’bn)

38.0

44.645.5

Q1'12 Q1'13 Q1'14

13.1

15.6

12.6

Q1'12 Q1'13 Q1'14

Return on Avg. Equity Return on Avg. Assets • Growth in operating income inched up by

1.9% in Q1’14.

• Consequently, profit after tax of N12.6

billion for the period, down by 19.1% from

N15.6 billion in the corresponding quarter

last year. This is due to higher effective tax

rate.

• ROE and ROA still remain strong at 22% and

1.9% respectively.

11

Q1'12 Q1'13 Q1'14

29.7%

22.1%

Q1'13 Q1'14

2.6%

1.9%

Q1'13 Q1'14

Profit Drivers

Net Interest Margin Cost of Funds

5.2%

6.0% 5.9%

3.0%3.2%

3.6%

Q1'12 Q1'13 Q1'14

Cost-to-Income Ratio • Net Interest Margins nowb5.9%, regulatory

induced pressure on earnings.

• Cost-to-income ratio increased to 69.1% in

the period under review.

12

Q1'12 Q1'13 Q1'14

Q1'12 Q1'13 Q1'14

65.9%61.2%

69.1%

Q1'12 Q1'13 Q1'14

Financial PositionTotal Assets (N’trn) Total Assets plus Contingents (N’trn)

2.1

2.4 2.6

Q1'12 Q1'13 Q1'14

2.93.1

Q1'13 Q1'14

28.8%

38.6%

26.3%

3.3% 2.9%

Q1’14

Total Assets Mix

FY’13

• Solid balance sheet position of

N3.1 trillion, of which assets

constitute N2.6 trillion (83%).

• Increase in loan from Dec-2013

during the period by 52%

• Share of loans grew to 38.6% in

Q1’14(vs. 36.4% in FY’13).

13

Q1'12 Q1'13 Q1'14Q1'13 Q1'14

29.4%

36.4%

28.7%

2.7%2.8%

Cash and

bank balances

Loans

Investment

securities

Other assets

Property and

equipment

Loan PortfolioLoan Book (N’bn) Loan Book, by Customer Type

703.7 664.2

1009.8

Q1'12 Q1'13 Q1'14

61.8%59.5%

65.9%

13.0%19.4%

13.6%

4.8% 9.7% 8.3%8.4%

7.2% 8.0%6.1% 4.3% 4.1%

Q1,12 Q1'13 Q1'14

Corporate

Retail

Public Sector

Commercial

Financial Sector

NPL Ratio

• Loan growth expected to kick in over the

remaining quarters for Oil and

Gas, Manufacturing and Telecoms

• Consumer, Oil and Gas, Manufacturing and

Telecoms still account for nearly 70% of total

loans

• 60% of loans booked to corporate customers

• NPL ratio remains at 1.2% still well below

regulatory threshold and industry average.

14

2.2%

1.2%

Q1'13 Q1'14

Q1,12 Q1'13 Q1'14

Agric, 5%Construction, 6%

Finance, 4%

Personal, 13%

Commerce, 9%

Oil & Gas, 18%

Power, 7%

Real Estate, 1%

Others, 8%

Loan Distribution, by Sector

Loan Portfolio (Cont’d)

Loan Distribution, by Geography

Government, 8%

Communication, 9%

Manufacturing, 12%

1515

Rest of

World, 16%

Nigeria, 84%

Deposit Portfolio

Deposit Book (N’trn) Deposit Mix, by Cost

1.6

2.0

2.2

81.7% 75.8% 78.5%

18.3% 24.2% 21.5%

Q1'13 FY'13 Q1'14

Expensive

Cheap

• Deposit grew by 8.5% in Q1’14 compared

with Q1’13, while it declined from Q4’13

position by a marginal 1.5%.

• Generated largely from cheap sources

• Cheap deposits make up about 78.5% of

total Deposits.

16

Q1'12 Q1'13 Q1'14

Q1'13 FY'13 Q1'14

Funding, Liquidity and Capital Adequacy

Funding Mix Capital Adequacy Ratio

65.8%84.3% 83.8%

7.4%

9.2% 9.4%7.2%1.8%6.6% 4.8% 5.0%

Deposits Equity Borrowing Others 23.5% 23.8%21.2%

Liquidity Ratio

• Deposits represent 83.8% of total funding

base, largely the same as FY’13.

• Strong capital adequacy and liquidity

positions. Ratios now 21.2% and 50.5%

respectively; improvements over FY 2013

positions.

17

Q1'12 FY'13 Q1'14

Q1'13 FY'13 Q1'14

60.0%

69.8%

50.5%

Q1'13 FY'13 Q1'14

18

4. Focus on Congo Brazzaville

Congo Brazzaville – Key Financial Highlights

Comprehensive Income & Profit 31-Mar-14 31-Mar-13 Change %

COMPREHENSIVE INCOME

& PROFIT TREND (N’million)

Gross Earnings 799 368 118%

Net Interest Income 237 69 245%

Non Interest Income 534 292 83%

Operating Income 770 361 113%

Operating Expenses 538 353 53%

Profit after Tax 232 8 2,811%

EFFICIENCY AND RETURN Cost to Income (%) 70% 98%

19

Return on Average Equity (%) 6.5% 0.2%

Return on Average Assets (%) 1.5% 0.03%

Financial Position & Risk 31-Mar-14 31-Dec-13 Change %

FINANCIAL POSITION &

TREND (N’million)

Total Assets 21,423 24,873 -14%

Total Deposits 15,555 18,698 -17%

Net Loans 11,641 9,059 +28%

Net Assets 4,244 5,428 -22%

BUSINESS CAPACITY RATIOS Loan to Deposit Ratio 75% 48%

Capital Adequacy Ratio 29% 30%

Liquidity Ratio 221% 186%19

Income AnalysisRevenue Trend (N’’’’mn) Revenue Mix (%)

367.8

799.9

Q1'13 Q1'14

62% 67%

38% 33%

Interest Income Non Interest Income

20

Profitability (N’’’’mn)

• Gross Earnings grew by an impressive 118% from

N367.8 million in Q1’13 to N800.0 million in the

period under review on back of higher Operating

income .

• Interest income grew faster (253% YoY) than non-

interest income, consequently PBT came in N232.0

million almost at par with the N279.3 million

achieved in FY’13.

Q1'13 Q1'14

8.0

232.0

Q1'13 Q1'14

FY'13 Q1'14

Financial Position Growing Asset Base (N’’’’mn) Deposits (N‘‘‘‘mn)

Loan growth (N’’’’mn)

6,137

18,698

15,555

-

6,000

12,000

18,000

Q1'13 FY'13 Q1'14

10,358

24,873

21,422

Q1'13 FY'13 Q1'14

21

Loan growth (N’’’’mn)

� Good loan growth of 592% in the period under

review relative to Q1’13; it also grew 28% from

Q4’13 t Q1’14. This translates to a loan to

deposit ratio of 75% (30% in 2013).

� Cautious lending strategy, as we increase

lending to relatively less risky sectors/segments.

� Total assets grew by 107% in Q1’14 compared to

Q1’13 but declined by 14% from Q4’13 to

Q1’14.

� Deposit growth of 153% in Q1’14 compared to

Q1’13 but declined 17% from Q4’13 to Q1’14.

1,682.2

9,059.2

11,640.9

68%

30%

75%

0%

25%

50%

75%

100%

-

3,000.0

6,000.0

9,000.0

12,000.0

Q1'13 FY'13 Q1'14Loan L/D Ratio

85.9%

97.8%

69.9%

Q1'13 FY'13 Q1'14

Trend in Cost/Income

Improving Profitability and Efficiency

0.0%

1.5%

Q1'13 Q1'14

Return on Assets

• Robust profitability: as ROE and ROA were

impressive, at 6.5% and 1.5% respectively.

• Cost to income ratio declined significantly

from 85.9% to 69.9% YoY.

0.2%

6.5%

Q1'13 Q1'14

Return on Equity

2222

23

5. Appendix

Summary Historical FinancialsFY2010 FY2011 FY2012 Q4 2013 FY2013 Q1 2014

Key P & L line (N’ million)Gross earnings 177,571 184,833 220,129 76,666 263,947 68,079 Interest income 117,745 121,422 150,003 52,943 184,623 49,917 Interest expense (46,969) (46,125) (58,386) (27,876) (82,459) (20,645) Net interest income 70,776 75,297 91,617 25,067 102,164 29,272 Non interest income 67,441 63,411 64,003 22,998 76,242 18,162Operating income 138,217 138,708 153,093 47,352 175,907 45,512 Operating expenses (103,981) (107,716) (102,592) (24,407) (110,470) (31,427) Profit/(Loss) Before Tax 3,219 (28,496) 52,010 9,230 57,254 13,544

Key Balance Sheet Items (N’ million)

Net loans 628,811 689,625 687,435 963,871 969,591 1,009,811Total assets 1,617,696 1,942,793 2,272,923 2,642,296 2,642,296 2,578,892Total assets 1,617,696 1,942,793 2,272,923 2,642,296 2,642,296 2,578,892Total deposits 1,267,171 1,444,988 1,777,788 2,221,764 2,221,764 2,171,075Shareholders' funds 176,529 166,461 192,467 235,036 235,036 246,279

Key Ratios

Non Int. Rev/Total Rev 37.9% 34.3% 31.9% 30.0% 29.9% 26.7%Cost to income 75.2% 77.7% 67.0% 60.9% 60.9% 69.1%Loan/deposit Ratio 49.6% 47.7% 38.7% 44.3% 44.3% 46.1%Loan/assets Ratio 38.9% 35.5% 30.2% 36.5% 36.5% 38.6%Equity/assets Ratio 10.9% 8.6% 8.5% 8.9% 8.9% 9.4%Pre Tax ROA 0.4% (6.1%) 2.3% 2.3% 2.3% 2.1%Pre Tax ROE 0.0% (0.6%) 27.1% 26.2% 26.2% 23.8%Tier 1 capital adequacy ratio 15.3% 15.2% 17.4% 15.4% 15.4% 15.9%Total capital adequacy ratio 18.2% 21.7% 23.5% 23.2% 23.2% 21.2%

24

25

Thank you

Investor Relations

UBA Group 2014 Q1 Results