United Bank Ltd revenue surged on 14.0% in 2015
17 Feb 2016 • About United Bank Ltd (
$UBLS) • By InTwits
United Bank Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- United Bank Ltd is a growth stock: 2015 revenue growth was 14.0%, 5 year revenue CAGR was 11.5% at 2015 ROIC 12.6%
- United Bank Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's in pair with industry average of 3.2%.
- CAPEX is quite volatile: 2,516 in 2015, 4,103 in 2014, 9,997 in 2013, 14,978 in 2012, 20,502 in 2011
- The company has highly profitable business model: ROIC is at 12.6%
- It operates with high leverage: Net Debt/EBITDA is 1.9x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
United Bank Ltd ($UBLS) key annual financial indicators
| mln. PKR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 84,359 | 92,360 | 95,322 | 106,894 | 121,851 | 14.0% |
| Net Income | 14,855 | 19,158 | 19,286 | 23,648 | 26,154 | 10.6% |
Balance Sheet
|
|---|
| Cash | 64,161 | 73,372 | 65,391 | 49,319 | 82,938 | 68.2% |
| Short Term Debt | 17,226 | 16,900 | 33,838 | 32,258 | 71,588 | 121.9% |
| Long Term Debt | 62,163 | 79,015 | 41,744 | 53,249 | 164,237 | 208.4% |
Cash flow
|
|---|
| Capex | 2,371 | 3,837 | 3,011 | 3,073 | 4,344 | 41.4% |
Ratios
|
|---|
| Revenue growth | 19.4% | 9.5% | 3.2% | 12.1% | 14.0% | |
| Net Income Margin | 17.6% | 20.7% | 20.2% | 22.1% | 21.5% | -0.7% |
| CAPEX, % of revenue | 2.8% | 4.2% | 3.2% | 2.9% | 3.6% | 0.7% |
| ROIC | 12.6% | 11.7% | 11.8% | 13.8% | 12.6% | -1.2% |
| ROE | 19.0% | 21.0% | 18.6% | 19.6% | 18.5% | -1.2% |
Revenue and profitability
The company's Revenue surged on 14.0% in 2015.
Net Income marign decreased slightly on 0.66 pp from 22.1% to 21.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
United Bank Ltd's CAPEX/Revenue was 3.6% in 2015. United Bank Ltd's CAPEX/Revenue decreased slightly on 0.59 pp from 4.2% in 2012 to 3.6% in 2015. It's average level of CAPEX/Revenue for the last three years was 3.2%.
Return on investment
The company operates at good ROIC (12.59%) and ROE (18.46%). ROIC decreased slightly on 1.2 pp from 13.8% to 12.6% in 2015. ROE decreased slightly on 1.2 pp from 19.6% to 18.5% in 2015.
Leverage (Debt)
Debt surged on 176% in 2015 while cash surged on 68.2% in 2015.
Appendix 1: Peers in Banks
Below we provide United Bank Ltd benchmarking against other companies in Banks industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Banque Intl Arabe De Tunisie ($BIND) | 9.5% | -20.2% | 17.3% | 50.2% | |
| European Islamic Investment Bank ($EIIB) | -41.8% | 121.2% | 12.6% | 42.3% | |
| Tsb Banking Grp ($TSB) | | -3.2% | -33.8% | 39.2% | -1.4% |
| VTB Bank JSC ($VTBR) | 23.8% | 48.1% | 16.5% | 29.8% | |
| Bank Audi S.A.L. ($BQAD) | | 9.1% | 11.7% | 23.9% | 7.1% |
| |
|---|
| Median (43 companies) | 9.5% | 10.0% | 4.8% | 11.5% | 3.5% |
|---|
| United Bank Ltd ($UBLS) | | 9.5% | 3.2% | 12.1% | 14.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lloyds Banking Group ($LLPC) | | 8.0% | 8.9% | 13.1% | 13.6% |
| Banco Santander Sa ($BNC) | 2.2% | 2.7% | 2.6% | 8.9% | 10.2% |
| Finansbank ($FBKD) | 2.0% | 1.9% | 2.8% | 8.5% | |
| Tsb Banking Grp ($TSB) | 1.3% | 1.8% | 4.4% | 7.2% | 3.4% |
| Guaranty Trust Bank ($GRTB) | 10.0% | 6.7% | 6.1% | 6.8% | |
| |
|---|
| Median (40 companies) | 2.3% | 2.2% | 2.7% | 2.1% | 2.4% |
|---|
| United Bank Ltd ($UBLS) | 2.8% | 4.2% | 3.2% | 2.9% | 3.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 16.3% | 21.7% | 26.9% | 30.1% | 30.3% |
| Guaranty Trust Bank ($GRTB) | 14.2% | 19.8% | 18.9% | 17.8% | |
| Mcb Bank Ltd ($MCBS) | 18.7% | 15.0% | 14.4% | 15.8% | 14.9% |
| Zenith Bank ($ZENB) | 13.8% | 19.0% | 17.6% | 15.0% | |
| Halyk Savings Bank Of Kazakhstn JSC ($HSBK) | 5.1% | 8.8% | 9.0% | 12.9% | |
| |
|---|
| Median (43 companies) | 6.9% | 6.0% | 5.3% | 4.4% | 3.3% |
|---|
| United Bank Ltd ($UBLS) | 12.6% | 11.7% | 11.8% | 13.8% | 12.6% |
