United Bank : UBL Half Yearly Report 2021

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HALF YEARLY REPORT

JUNE 30, 2021 (UN-AUDITED)

CONTENTS

Company Information ..........................................................................................................................	02
Directors' Report to the Members........................................................................................................	03
Unconsolidated Condensed Interim Financial Statements of
United Bank Limited..........................................................................................................................	10
Auditors' Review Report.......................................................................................................................	11
Unconsolidated Condensed Interim Statement of Financial Position..................................................	12
Unconsolidated Condensed Interim Profit And Loss Account..............................................................	13
Unconsolidated Condensed Interim Statement of Comprehensive Income.........................................	14
Unconsolidated Condensed Interim Statement of Changes In Equity.................................................	15
Unconsolidated Condensed Interim Cash Flow Statement..................................................................	16
Notes To The Unconsolidated Condensed Interim Financial Statements............................................	17
Consolidated Condensed Interim Financial Statements of
United Bank Limited..........................................................................................................................	49
Consolidated Condensed Interim Statement of Financial Position......................................................	50
Consolidated Condensed Interim Profit And Loss Account..................................................................	51
Consolidated Condensed Interim Statement of Comprehensive Income............................................	52
Consolidated Condensed Interim Statement of Changes In Equity.....................................................	53
Consolidated Condensed Interim Cash Flow Statement.....................................................................	54
Notes To The Consolidated Condensed Interim Financial Statements................................................	55
Directors' Report to the Members (Urdu).............................................................................................	90

Half Yearly Report 2021		01

COMPANY INFORMATION

Board of Directors
Sir Mohammed Anwar Pervez, OBE, HPk		Mr. Arshad Ahmad Mir
Chairman/Non-Executive Director		Non-Executive Director
Lord Zameer M. Choudrey, CBE, SI Pk		Mr. Amar Zafar Khan
Non-Executive Director		Independent Director
Mr. Haider Zameer Choudrey		Mr. Tariq Rashid
Non-Executive Director		Independent Director
Mr. Rizwan Pervez		Ms. Shazia Syed
Non-Executive Director		Independent Director
Mr. Shazad G. Dada
President & CEO
COMMITTEES OF THE BOARD		Chief Financial Officer
BOARD AUDIT COMMITTEE (BAC):		Mr. Aameer Karachiwalla
Ms. Shazia Syed	Chairperson	Company Secretary & Chief Legal Counsel
Mr. Haider Zameer Choudrey	Member
Mr. Rizwan Pervez	Member	Mr. Aqeel Ahmed Nasir
Mr. Aqeel Ahmed Nasir	Secretary	Registered Office:
BOARD HUMAN RESOURCE & COMPENSATION
13th Floor, UBL Building, Jinnah Avenue,
COMMITTEE (HRCC):		Blue Area, Islamabad.
Mr. Tariq Rashid	Chairman	UBL Head Office
Sir Mohammed Anwar Pervez, OBE, HPk	Member	I.I. Chundrigar Road, Karachi - 74000, Pakistan.
Mr. Arshad Ahmad Mir	Member	Share Registrar
Mr. Rizwan Pervez	Member
Ms. Sadia Saeed*	Secretary	THK Associates (Pvt.) Limited
BOARD RISK & COMPLIANCE COMMITTEE (BRCC):	Plot No. 32-C, Jami Commercial Street - 2
D.H.A. Phase VII,
Mr. Arshad Ahmad Mir	Chairman	Karachi - 75500.
Phone No.: 021-35310187
Lord Zameer M. Choudrey, CBE, SI Pk	Member	UAN: 021-111-000-322
Ms. Shazia Syed	Member	Fax No.: 021-35310190
Mr. Shazad G. Dada	Member	Email: [e-mail]
Mr. Imran Sarwar	Secretary	Auditors
BOARD IT COMMITTEE (BITC):
	M/s. A. F. Ferguson & Co.,
Mr. Tariq Rashid	Chairman	Chartered Accountants
Legal Advisors
Lord Zameer M. Choudrey, CBE, SI,Pk	Member
Mr. Haider Zameer Choudrey	Member	M/s. Mehmood Abdul Ghani & Co.,
Mr. Shazad G. Dada	Member	Advocates
Mr. Muhammad Faisal Anwar	Secretary	Contacts
BOARD NOMINATION COMMITTEE (BNC):
	UAN: 111-825-111
Sir Mohammed Anwar Pervez, OBE, HPk	Chairman	Contact Centre: 111-825-888
Website: www.ubldigital.com
Lord Zameer M. Choudrey, CBE, SI Pk	Member	Email: [e-mail]
Mr. Arshad Ahmad Mir	Member
Mr. Aqeel Ahmed Nasir	Secretary

*Ms. Sadia Saeed, Secretary Board Human Resource & Compensation Committee (HRCC) has completed her term of employment on 19 July 2021 and subsequently Mr. Minhas Wirasat Ali has been given charge as Acting Head HR / Secretary HRCC.

02 United Bank Limited

DIRECTORS' REPORT TO THE MEMBERS

On behalf of the Board of Directors, we are pleased to present the financial statements of United Bank Limited (UBL) for the half year ended June 30, 2021.

Performance Overview

On a standalone basis, UBL recorded Profit Before Tax (PBT) of Rs. 25.9 billion for the half year ended June 30, 2021, a strong growth of 37% year on year. On a quarter on quarter basis, the bank recorded a strong growth in PBT of 12% Q2'21 versus Q1'21.

UBL's gross revenues stood at Rs. 46.5 billion for H1'21 (H1'20: Rs. 48.0 billion). Net mark-up income was

recorded at Rs. 35.1 billion for H1'21 (H1'20: Rs. 39.1 billion). The bank recorded non-markup income of Rs. 11.4 billion for H1'21, an increase of 28% over H1'20, owing mainly to capital gains realized on foreign bonds as well as strong growth in all major fee lines.

The bank's operating expenses stood at Rs. 20.2 billion for H1'21, a growth of 5% over H1'20. Cost to income ratio remained lean at 43% for H1'21 as against 40% in the corresponding period of last year.

The bank recorded a net provision reversal of Rs. 87 million in H1'21 against a net provision charge of Rs.

9.4 billion in H1'20, owing mainly to sustained recovery efforts within both the domestic and international segments.

Financial Highlights

On a standalone basis, UBL recorded Profit After Tax (PAT) of Rs. 15.0 billion for H1'21 versus a PAT of Rs.

1. billion for H1'20, a strong growth of 32% year on year. Earnings per share (EPS) was measured at Rs.

1. for H1'21 (H1'20: Rs. 9.31).

On a consolidated basis, UBL recorded PAT of Rs. 15.0 billion (H1'20: Rs. 10.7 billion). The consolidated EPS

was measured at Rs. 12.24 for H1'21 (H1'20: Rs. 8.94).

Net Markup Income

Net markup income was recorded at Rs. 35.1 billion for H1'21, 10% lower on a year on year basis. The bank's markup earning assets averaged Rs. 1.8 trillion in H1'21, growing by 11% year on year. Bank level Net interest margin (NIM) was measured at 3.9% for H1'21 (H1'20: 5.0%). In order to support the economy during the pandemic, the State Bank of Pakistan (SBP) reduced the policy rate from 13.25% at Dec'19 to 7.00% by Jun'20. The average interest rates stood close to 11.0% in H1'20 versus 7.0% in H1'21, due to which higher net markup income was earned in the corresponding period of last year.

Domestic deposits averaged Rs. 1.4 trillion in H1'21, with one of the highest portfolio growth levels achieved of 20%. Domestic CASA deposits averaged Rs. 1.2 trillion for H1'21, a growth of 19% year on year, with an incremental increase in the base of Rs. 195 billion. The average CASA to total deposits ratio was measured at 85.1% in H1'21 (H1'20: 85.5%). The Branch banking segment continued to actively solicit new relationships as it added approximately 290,000 new current account relationships in H1'21 as against

Half Yearly Report 2021		03