United Bank Ltd CAPEX jumped on 46.4% in 2016 and Revenue increased on 4.0%
17 Feb 2017 • About United Bank Ltd (
$UBLS) • By InTwits
United Bank Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- United Bank Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.8%. At the same time it's in pair with industry average of 3.6%.
- CAPEX is quite volatile: 3,248 in 2016, 1,653 in 2015, 1,402 in 2014, 2,202 in 2013, 6,298 in 2012
- The company has business model with average profitability: ROIC is at 10.7%
- It operates with high leverage: Net Debt/EBITDA is 1.7x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
United Bank Ltd ($UBLS) key annual financial indicators
| mln. PKR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 92,360 | 95,322 | 106,894 | 121,851 | 126,780 | 4.0% |
| Net Income | 19,158 | 19,286 | 23,648 | 26,154 | 27,783 | 6.2% |
Balance Sheet
|
|---|
| Cash | 73,372 | 65,391 | 49,319 | 82,938 | 133,468 | 60.9% |
| Short Term Debt | 16,900 | 33,838 | 32,258 | 71,588 | 11,761 | -83.6% |
| Long Term Debt | 79,015 | 41,744 | 53,249 | 164,237 | 205,867 | 25.3% |
Cash flow
|
|---|
| Capex | 3,837 | 3,011 | 3,073 | 4,344 | 6,359 | 46.4% |
Ratios
|
|---|
| Revenue growth | 9.5% | 3.2% | 12.1% | 14.0% | 4.0% | |
| Net Income Margin | 20.7% | 20.2% | 22.1% | 21.5% | 21.9% | 0.5% |
| CAPEX, % of revenue | 4.2% | 3.2% | 2.9% | 3.6% | 5.0% | 1.5% |
| ROIC | 11.7% | 11.8% | 13.8% | 12.6% | 10.7% | -1.9% |
| ROE | 21.0% | 18.6% | 19.6% | 18.5% | 17.9% | -0.5% |
Revenue and profitability
United Bank Ltd's Revenue increased on 4.0% in 2016.
Net Income marign showed almost no change in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 5.0%. United Bank Ltd showed small growth in CAPEX/Revenue of 1.9 pp from 3.2% in 2013 to 5.0% in 2016. Average CAPEX/Revenue for the last three years was 3.8%.
Return on investment
The company operates at good ROE (17.93%) while ROIC is low (10.73%). ROIC decreased slightly on 1.9 pp from 12.6% to 10.7% in 2016. ROE decreased slightly on 0.53 pp from 18.5% to 17.9% in 2016.
Leverage (Debt)
Debt decreased on 7.7% in 2016 while cash jumped on 60.9% in 2016.
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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kazkommertsbank JSC ($KKB) | | 6.0% | 16.3% | 41.4% | |
| Sberbank Of Russia ($SBER) | 37.2% | 25.1% | 23.4% | 27.4% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | | 23.7% | 18.9% | 26.8% | 27.0% |
| Yapi Ve Kredi Bankasi As ($YKBD) | | 4.8% | 19.7% | 25.3% | 17.8% |
| Mcb Bank Ltd ($MCBS) | | -1.7% | 19.4% | 22.4% | -10.7% |
| |
|---|
| Median (43 companies) | 17.8% | 4.8% | 11.5% | 4.2% | 4.4% |
|---|
| United Bank Ltd ($UBLS) | | 3.2% | 12.1% | 14.0% | 4.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Banque Marocaine Du Comm Exterieur ($69IR) | 3.7% | 9.7% | 4.3% | 26.8% | |
| Lloyds Banking Group ($LLPC) | 8.0% | 8.9% | 13.1% | 13.6% | 14.5% |
| Banco Santander Sa ($BNC) | 2.7% | 2.6% | 8.9% | 10.2% | 9.1% |
| Guaranty Trust Bank ($GRTB) | 6.7% | 6.1% | 6.8% | 7.7% | |
| Diamond Bank ($DBPA) | 8.2% | 7.9% | 6.0% | 6.7% | |
| |
|---|
| Median (41 companies) | 2.2% | 2.7% | 2.1% | 2.5% | 1.9% |
|---|
| United Bank Ltd ($UBLS) | 4.2% | 3.2% | 2.9% | 3.6% | 5.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 21.7% | 26.9% | 30.1% | 30.3% | 28.5% |
| Guaranty Trust Bank ($GRTB) | 19.8% | 18.9% | 17.8% | 16.0% | |
| Mcb Bank Ltd ($MCBS) | 15.0% | 14.4% | 15.8% | 14.9% | 12.5% |
| Zenith Bank ($ZENB) | 19.0% | 17.6% | 15.0% | 11.2% | |
| Halyk Savings Bank Of Kazakhstn JSC ($HSBK) | 8.8% | 9.0% | 12.9% | 10.8% | |
| |
|---|
| Median (43 companies) | 6.0% | 5.3% | 4.4% | 3.4% | 4.5% |
|---|
| United Bank Ltd ($UBLS) | 11.7% | 11.8% | 13.8% | 12.6% | 10.7% |
