United Bank : H1’23 Investor Presentation

Investor Presentation H1 2023

Performance Highlights and Business Outlook

Arif Akmal Saifie Chief Financial Officer

Overview of the UBL Group | We are one of the largest and most profitable banks in Pakistan

Over 60 years of successful operational	Highly experienced senior management
history	team with diversified experience of large
Market leading positions in core segments	local and global banking institutions

Delivered consistent ROE in last few years	Historcal International presence in UAE,
with strong dividend yields	Bahrain and Qatar and the UK

One of the largest networks with 1,335	Market leader in Home Remittances with
branches, including over 150 Islamic	over USD 6 bln+ inflows each year, over
branches and 500 windows	USD 850+ mln RDA flows

Leader in Digital Banking in Pakistan with

Full service financial house with Asset

Management, Insurance and Microfinance

over 3.5 mln customers

services

2

H1'23 Results - Consolidated| Consistent growth supported by strong NII with cost control

	Rs in bln
Description	1H'23	1H'22	Var %

Rs in bln

Q2'23 Q1'23

Var %

Margin expansion grows earnings with strong fee buildup

▪ Total revenues at Rs. 85.1 billion for H1'23, with an increase of 36% YoY.

Interest Earned	195.8	105.8	85%
Interest Expensed	(123.5)	(58.9)	-110%
Net Interest Income	72.3	47.0	54%
Non Interest Income	12.8	15.7	-19%
Total Revenue	85.1	62.7	36%
Operating expenses	(32.4)	(26.0)	-25%
Total Expenses	(33.5)	(26.7)	-25%
Pre Prov. Operating Profit	51.6	36.0	44%
Provision Exp./Other writeoffs	0.4	(1.4)	130%
Profit Before Tax	52.0	34.6	50%
Profit After Tax	27.5	12.2	126%
Earnings Per Share (EPS)	22.0	9.8	125%

103.3 92.6 12%

(65.9) (57.6) -14%

37.4 34.9 7%

3.7 9.1 -60%

41.1 44.0 -7%

(16.7) (15.7) -6%

(17.3) (16.2) -6%

23.8 27.8 -15%

3.1 (2.7) 215%

26.9 25.1 7%

13.1 14.5 -10%

10.4 11.6 -11%

▪	NII stood at Rs. 72.3 bln for H1'23, with a strong growth of 54% over LY
▪	Bank NIMs at 5.5% in 1H'23 (1H'22: 4.5%), with higher asset yields

Fee Income contributing 15% to Revenues

• NFI of Rs. 12.8 billion for H1'23 with strong fee & commission income
• Branch banking fees at Rs. 1.3 bln, up by 7%
• Corporate service charges up 34% & FI rebate / commission up 9%
• Trade & guarantee income at Rs. 1.4 bln, up by 85%
• Card related fee at Rs. 1.6 bln; Remittance commission up 22% at Rs. 1.5 bln

Inflation impacts costs - reinvestments in technology and people continues

• Improving operational efficiencies remains a key focus for UBL
• Cost increase as a result of inflation, better staffing and variable expenses

3

BS Review - Consolidated| Building efficiencies in deposit base with growth in assets

Description	Rs in bln	Var %
Jun'23	Dec'22
Advances	916	1,096	-16%
Investments	1,857	1,451	28%
FI Lendings	116	86	36%
Others	552	345	60%
Total Assets	3,441	2,978	16%
Deposits	2,425	2,035	19%
Borrowings	634	566	12%
Subordinated Debts	10	10	0%
Others	122	138	-12%
Total Liabilities	3,192	2,749	16%
Net Assets	249	229	9%
Share Capital	12	12	0%
Reserves	116	92	26%
Unappropriated Profit	98	96	2%
Surplus on revaluation of Assets	10	20	-47%
Total Equity attributable to equity holders	236	220	7%
Non-controlling Interest (NCI)	13	9	47%
Total Equity + NCI	249	229	9%

Domestic Deposits Performance - led by Branch Banking Group

• Focus remains on better service and expansion in footprint
• Average current accounts up 16% YoY, savings up 9% YoY
• Average current to total deposits ratio is 48% (Jun'22: 45%)
• Average CASA ratio levels at 90% (Jun'22: 87%) - drives profitability
• New business acquisition momentum well maintained in 2023

Corporate Bank Lending continuing with strong asset quality

• We am to maintain asset quality across all segments
• Advances averaged Rs. 754 billion for H1'23, growing by 18% year on year
• NPL recoveries continue across domestic and international

Investments portfolio position and mix as at Jun 30, 2023

• Overall investments portfolio increased by 28% to Rs 1.9 tln
• Timely build up within investments strengthens NII levels
• BS well positioned for further repricing across asset base

4

Strong profitability maintained | UBL repositions to achieve larger aspirations

200	Trends - KSE 100 Index and UBL's share price		50	Equity and Book Values - consolidated
												Rs in bln					249
180														228	229
									45			208
													191
160											169
									40
																204
140														187	187
												170
											35		156
120										138
100										30
					Price at 26-July-2023:Rs. 158
80	Sep-18		Mar-19	Jun-19Sep-19	Dec-19Mar-20Jun-20Sep-20	Dec-20Mar-21Jun-21	Sep-21Dec-21Mar-22Jun-22	Sep-22Dec-22	Mar-23	25
	Jun-18	Dec-18	Jun-23	2018	2019	2020	2021	2022	Jun'23
			Total Equity - Cons.	BV Per share - Cons.
					UBL's share price	KSE 100 Index
					Dividend levels over the years					Earning Per Share - consolidated
								22.0	22.0						24.8	25.8
22.9
	7
	5
	3
1	1
9
	7
	5
	3
0	1																22.0
9
	7
	5
	3						18.0
19	1
9
	7
	5
	3
	1
8	9
7
	5
	3
7	1
9
	7
	5
	3
	1													17.1
6	9
7
	5
	3
5	1
9
	7												15.6
	5
	3
	1
4	9
7
	5
	3				12.0	12.0
3	1
9
	7
	5
	3	11.0										12.6
2	1
79
	5
	3
1	1
9
	7
	5
	3
0	1
9
	7
	5
	3
9	1
9
	7
	5
	3
8	1
9
	7
	5
	3
	1
7	9
7
	5
	3
	1
6	9
7
	5
	3
	1
5	9
7
	5
	3
	1
4	9
7
	5
	3
	1
3	9
7
	5
	3
	1
2	9
7
	5
	3
	1
1	9
7
	5
	3
0	1
9
	7
	5
	3
	1
		2018			2019	2020	2021	2022	H1'23			Dec'18	Dec'19	Dec'20	Dec'21	Dec'22	H1'23
															EPS (consol)
																	5