LEADING THE WAY IN DIGITAL REVOLUTION
N I N E M O N T H S R E P O R T S E P T E M B E R 3 0 , 2 0 2 3 ( U N - A U D I T E D )
CONTENTS
Company Information | 02 |
Directors' Report to the Members | 03 |
Unconsolidated Condensed Interim Financial Statements | 05 |
Unconsolidated Condensed Interim Statement of Financial Position | 06 |
Unconsolidated Condensed Interim Profit and Loss Account | 07 |
Unconsolidated Condensed Interim Statement of Comprehensive Income | 08 |
Unconsolidated Condensed Interim Statement of Changes in Equity | 09 |
Unconsolidated Condensed Interim Cash Flow Statement | 10 |
Notes to the Unconsolidated Condensed Interim Financial Statements | 11 |
Consolidated Condensed Interim Financial Statements | 41 |
Consolidated Condensed Interim Statement of Financial Position | 42 |
Consolidated Condensed Interim Profit and Loss Account | 43 |
Consolidated Condensed Interim Statement of Comprehensive Income | 44 |
Consolidated Condensed Interim Statement of Changes in Equity | 45 |
Consolidated Condensed Interim Cash Flow Statement | 46 |
Notes to the Consolidated Condensed Interim Financial Statements | 47 |
Directors' Report to the Members (Urdu) | 80 |
Nine Months Report 2023 | 01 | |
COMPANY INFORMATION
Board of Directors | ||
Sir Mohammed Anwar Pervez, OBE, HPk | Mr. Muhammad Irfan A. Sheikh | |
Chairman/Non-Executive Director | Non-Executive Director | |
Lord Zameer M. Choudrey, CBE, SI Pk | Mr. Daniel Michael Howlett | |
Non-Executive Director | Independent Director | |
The Honourable Haider Zameer Choudrey | Mr. Tariq Rashid | |
Non-Executive Director | Independent Director | |
Mr. Rizwan Pervez | Ms. Shazia Syed | |
Non-Executive Director | Independent Director | |
Mr. Muhammad Jawaid Iqbal | ||
President & CEO | ||
COMMITTEES OF THE BOARD | Chief Financial Officer | |
BOARD AUDIT COMMITTEE (BAC): | Mr. Arif Akmal Saifie | |
Ms. Shazia Syed | Chairperson | Company Secretary & Chief Legal Counsel |
The Honourable Haider Zameer Choudrey | Member | Mr. Aqeel Ahmed Nasir |
Mr. Rizwan Pervez | Member | |
Mr. Tariq Rashid | Member | |
Mr. Aqeel Ahmed Nasir | Secretary | Registered Office: |
BOARD HUMAN RESOURCE & COMPENSATION | 13th Floor, UBL Building, Jinnah Avenue, Blue Area, | |
Islamabad. | ||
COMMITTEE (HRCC): | UBL Head Office | |
Mr. Tariq Rashid | Chairman | |
I.I. Chundrigar Road, Karachi - 74000, Pakistan. | ||
Sir Mohammed Anwar Pervez, OBE, HPk | Member | |
Ms. Shazia Syed | Member | |
Lord Zameer M. Choudrey, CBE, SI Pk | Member | Share Registrar |
Mr. Aslam Sadruddin | Secretary | THK Associates (Pvt.) Limited |
BOARD RISK & COMPLIANCE COMMITTEE (BRCC): | Plot No. 32-C, Jami Commercial Street - 2 | |
D.H.A. Phase VII, | ||
Mr. Daniel Michael Howlett | Chairman | Karachi - 75500. |
Phone No.: 021-35310187 | ||
Lord Zameer M. Choudrey, CBE, SI Pk | Member | UAN: 021-111-000-322 |
Mr. Muhammad Irfan A. Sheikh | Member | Fax No.: 021-35310190 |
Mr. Muhammad Jawaid Iqbal | Member | Email: sfc@thk.com.pk |
Mr. Imran Sarwar | Secretary | |
BOARD IT COMMITTEE (BITC): | Auditors | |
The Honourable Haider Zameer Choudrey | Chairman | M/s. EY Ford Rhodes |
Chartered Accountants | ||
Mr. Rizwan Pervez | Member | |
Mr. Daniel Michael Howlett | Member | |
Mr. Muhammad Irfan A. Sheikh | Member | Legal Advisors |
Mr. Muhammad Jawaid Iqbal | Member | M/s. Mehmood Abdul Ghani & Co. |
Mr. Sohail Aziz | Secretary | Advocates |
BOARD NOMINATION COMMITTEE (BNC): | Contacts | |
Sir Mohammed Anwar Pervez, OBE, HPk | Chairman | |
UAN: 111-825-111 | ||
Lord Zameer M. Choudrey, CBE, SI Pk | Member | Contact Centre: 111-825-888 |
The Honourable Haider Zameer Choudrey | Member | Website: www.ubldigital.com |
Mr. Aqeel Ahmed Nasir | Secretary | Email: customer.services@ubl.com.pk |
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 nine months ended September 30, 2023.
Performance Overview
UBL reported a Standalone Profit Before Tax (PBT) of Rs. 79.1 billion for the nine months ended September 30, 2023, representing a 56% year on year increase. Profit After Tax (PAT) stood at Rs. 40.9 billion in 9M'23, compared to Rs. 18.8 billion in 9M'22 with Earnings per share (EPS) of Rs. 33.38 compared to Rs. 15.33 for the same period last year. UBL reported Consolidated PAT of Rs. 41.7 billion (9M'22: Rs. 18.5 billion) with consolidated EPS of Rs. 34.05 (9M'22: Rs. 15.09).
The Board of Directors of UBL declared an interim cash dividend of Rs. 11 per share in their meeting in Islamabad held on October 25, 2023, along with the results for the nine months ended September 30, 2023.
Revenue
The Bank posted a growth of 26% in gross revenues for 9M'23 at Rs. 119.8 billion. Net mark-up income stood at Rs. 106.6 billion, with a 47% increase over the previous year. Non-mark-up income stood at Rs. 13.1 billion in 9M'23 (9M'22: Rs. 22.1 billion). Fee-based revenues maintained the overall business momentum throughout the year with a 12% increase over the same period last year. Benchmark interest rates averaged over 21% in 9M'23 as compared to 13.5% in the same period last year, which along with repricing within the asset base resulted in improvement in interest margins and growth in earnings. Domestic CASA deposits averaged Rs. 1.6 trillion for 9M'23, with a portfolio increase of Rs. 195 billion (14% growth year on year). The average CASA to total deposits ratio continued to strengthen and was measured at 90.5% in 9M'23 (9M'22: 85.8%). Bank level performing advances averaged Rs. 707 billion for 9M'23, growing by 9% year on year. Domestic performing advances averaged Rs. 570 billion for 9M'23, with an increase of 13%.
Cost management
Due to high inflationary pressures, the Bank's operating expenses recorded a 24% increase over 9M'22 to Rs.
47.0 billion. Staff costs stood at Rs. 18.2 billion, increasing by 26%, in line with the growth across the network and hiring mainly within front office functions. Property related expenses were recorded at Rs. 7.2 billion, up 11%. IT stood at Rs 5.3 billion with an increase of 41%, impacted by the steep devaluation in the PKR. Other operating expenses increased by 24% reported at Rs. 16.2 billion, in line with increased business volumes as compared to last year.
Provisions and loan losses
UBL recorded a net provision reversal of Rs. 7.8 billion for 9M'23 against a net provision charge of Rs. 5.4 billion in the corresponding period last year. The current period includes a provision reversal of Rs 9.5 billion arising on the sale of foreign currency sovereign bonds. Bank level non-performing loans (NPLs) stood at Rs. 109.3 billion at Sep'23, (Dec'22: Rs. 93.3 billion). The increase is mainly due to the impact of currency devaluation on the International NPL portfolio.
Capital Ratios
The bank seeks to maintain an efficient capital base that provides a foundation for future growth as well as maintaining adequate buffers over regulatory requirements. The overall CAR stood at 18.6% at Sep'23 (Dec'22: 19.2%), with a buffer of 6.6% over the minimum regulatory requirement of 12.0%. The Common Equity Tier 1 (CET-1) ratio stood at 13.0% at Sep'23 (Dec'22: 13.4%). Total Tier 1 Capital ratio was measured at 14.0% at Sep'23 (Dec'22: 14.4%).
Nine Months Report 2023 | 03 | |
Credit Rating
VIS Credit Rating Company Limited (VIS) re-affirmed the entity ratings of UBL at ''AAA / A-1+" (Triple A / A-One Plus) on June 27, 2023. Furthermore, UBL's Additional Tier-1(ADT-1) TFC has also been re-affirmed at 'AA+' (Double A plus). Outlook on the assigned ratings are 'Stable'.
Economy Review
Pakistan and the International Monetary Fund (IMF) reached a staff-level agreement in Jun'23. This would support Pakistan in meeting its external financing needs and provide the much needed impetus for economic stability. In 2023, Pakistan has faced a number of challenges as a result of steep inflation, a high interest rate environment, and a declining currency. However with stabilization measures under way, there are signs of a recovery with the recent appreciation in the PKR, reduction in the current account deficit, moderation in domestic demand and a more favorable trend in non-oil commodity prices. The PSX 100 index has also depicted a positive trend more recently and increased to over 46,000 points (14% over Dec'22 levels) in September as a result of an improving business outlook. At the end of Sep'23, the banking sector's deposits stood at Rs. 26.3 trillion, an increase of 17% from Dec'22, while advances stood at Rs. 11.9 trillion, largely in line with Dec'22 level. Non-performing loans for the banking sector stood at Rs. 959 billion as of June 23, with a 3.8% growth over Dec'22 with asset quality at 7.4% in Jun'23 in line with Dec'22 levels of 7.3%.
Future Outlook
Being a leading financial institution UBL is committed to reinvesting in core businesses and supporting the Pakistan economy as it transitions to stability. We remain focused on expanding our footprint while improving our service levels across all channels. UBL continues to evolve its digital platform, as we build on our technological capabilities to deliver innovative products and redefine customer experiences. UBL's most valuable asset remains its people, and the bank continues to invest in their growth and development. UBL is committed to delivering a strong and consistent return on equity, as we expand our presence in core segments, while creating new opportunities for the future.
Acknowledgements
On behalf of the Board of Directors, we would like to express our appreciation to UBL's shareholders and customers for their continued trust in the UBL brand and to the UBL staff for their commitment and dedication. We would also like to extend our gratitude to the Government of Pakistan, the State Bank of Pakistan, the Securities and Exchange Commission of Pakistan and other regulatory bodies for their continuous guidance and support.
Muhammad Jawaid Iqbal | Daniel Michael Howlett |
President & CEO | Director |
Islamabad, | |
October 25, 2023 |
04 United Bank Limited
UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 (Un-audited)
Nine Months Report 2023 | 05 | |
UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT SEPTEMBER 30, 2023
AS AT SEPTEMBER 30, 2023
Note | (Un-audited) | (Audited) |
September 30, | December 31, | |
2023 | 2022 |
--------------- (Rupees in '000) ---------------
ASSETS | |
Cash and balances with treasury banks | 6 |
Balances with other banks | 7 |
Lendings to financial institutions | 8 |
Investments | 9 |
Advances | 10 |
Fixed assets | 11 |
Intangible assets | 12 |
Deferred tax assets | 13 |
Other assets | 14 |
LIABILITIES | |
Bills payable | 16 |
Borrowings | 17 |
Deposits and other accounts | 18 |
Liabilities against assets subject to finance lease | |
Subordinated debt | 19 |
Deferred tax liabilities | 13 |
Other liabilities | 20 |
NET ASSETS | |
REPRESENTED BY: | |
Share capital | |
Reserves | |
Surplus on revaluation of assets | 21 |
Unappropriated profit | |
CONTINGENCIES AND COMMITMENTS | 22 |
286,747,079
25,660,061
225,948,265
2,560,482,509
603,224,654
71,687,753
2,331,109
30,143,962
176,671,403
3,982,896,795
22,331,716
1,357,057,439
2,227,394,873
-
10,000,000
-
143,915,636
3,760,699,664
222,197,131
12,241,797
108,407,733
9,734,599
91,813,002
222,197,131
143,004,094
15,692,567
85,296,480
1,415,193,829
921,837,095
70,816,984
2,406,215
18,874,768
85,631,077
2,758,753,109
36,474,017
564,518,588
1,838,366,814
-
10,000,000
-
100,373,434
2,549,732,853
209,020,256
12,241,797
86,254,373
19,085,934
91,438,152
209,020,256
The annexed notes 1 to 42 form an integral part of these unconsolidated condensed interim financial statements.
Arif Akmal Saifie | Muhammad Jawaid Iqbal | Shazia Syed | Daniel Michael Howlett | Sir Mohammed Anwar Pervez, OBE, HPk |
Chief Financial Ocer | President & | Director | Director | Chairman |
Chief Executive Ocer |
06 United Bank Limited
UNCONSOLIDATED CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UN-AUDITED)
FORUNCONSOLIDATTHE NINEDMONTHSC DEN EDENDEDINT RIMSEPTEMBERPROFIT AND LOSS30,ACCOUNT2023 (UN-AUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023
July - | July - | January - | January - |
September | September | September | September |
2023 | 2022 | 2023 | 2022 |
Note ------------------------------ | (Rupees in '000) ------------------------------ |
Mark-up / return / interest earned | 24 | 147,350,437 | 73,458,895 | |||
Mark-up / return / interest expensed | 25 | 109,574,476 | 45,790,734 | |||
Net mark-up / interest income | 37,775,961 | 27,668,161 | ||||
Non mark-up / interest income | ||||||
Fee and commission income | 26 | 4,290,282 | 3,937,453 | |||
Dividend income | 219,638 | 214,056 | ||||
Foreign exchange income | 2,228,965 | 3,016,173 | ||||
Income / (loss) from derivatives | 168,164 | (25,836) | ||||
(Loss) / gain on securities - net | 27 | (6,221,102) | 92,241 | |||
Other income | 28 | 241,348 | 184,052 | |||
Total non mark-up / interest income | 927,295 | 7,418,139 | ||||
Total income | 38,703,256 | 35,086,300 | ||||
Non mark-up / interest expenses | 29 | |||||
Operating expenses | 17,057,279 | 13,683,016 | ||||
Workers' Welfare Fund | 515,376 | 333,706 | ||||
Other charges | 30 | 28,138 | 1,827 | |||
Total non mark-up / interest expenses | 17,600,793 | 14,018,549 | ||||
Profit before provisions | ||||||
21,102,463 | 21,067,751 | |||||
(Reversals) / provisions and write-offs - net | 31 | (7,370,015) | 4,650,557 | |||
Profit before taxation | ||||||
28,472,478 | 16,417,194 | |||||
Taxation | 32 | 13,926,053 | 9,517,237 | |||
Profit after taxation | ||||||
14,546,425 | 6,899,957 | |||||
337,213,439
230,576,398
106,637,041
13,061,887
1,211,050
9,136,511
28,648
(11,147,960)
835,267
13,125,403
119,762,444
46,962,707
1,550,062
32,203
48,544,972
71,217,472
(7,833,184)
79,050,656
38,185,072
40,865,584
176,306,350
103,532,638
72,773,712
11,692,037
1,473,559
7,631,091
(3,349)
666,958
658,822
22,119,118
94,892,830
37,772,363
1,033,309
17,789
38,823,461
56,069,369
5,416,317
50,653,052
31,891,222
18,761,830
--------------------------------- | (Rupees) --------------------------------- | ||||||||
Earnings per share - basic and diluted | 33 | 11.88 | 5.64 | 33.38 | 15.33 | ||||
The annexed notes 1 to 42 form an integral part of these unconsolidated condensed interim financial statements.
Arif Akmal Saifie | Muhammad Jawaid Iqbal | Shazia Syed | Daniel Michael Howlett | Sir Mohammed Anwar Pervez, OBE, HPk |
Chief Financial Ocer | President & | Director | Director | Chairman |
Chief Executive Ocer |
Nine Months Report 2023
07
UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)
FORUNCONSOLIDATTHE NINEDMONTHSC DEN ENDEDINT RIMSEPTEMBERSTA ENT OF30,COMPREHENSIVE2023 INCOME (UN-AUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023
July - | July - | January - | January - |
September | September | September | September |
2023 | 2022 | 2023 | 2022 |
------------------------------ (Rupees in '000) ------------------------------
Profit after taxation for the period
Other comprehensive income
Items that may be reclassified to profit and loss account in subsequent periods
Effect of translation of net investment in overseas branches Movement in deficit on revaluation of investments - net of tax
Items that will not be reclassified to profit and loss account in subsequent periods
Movement in surplus / (deficit) on revaluation of fixed assets - net of tax Movement in surplus on revaluation of non-banking assets - net of tax
Total comprehensive income for the period
14,546,425 | 6,899,957 | 40,865,584 | 18,761,830 | ||||
525,347 | 6,592,038 | 18,066,802 | 14,329,899 | ||||
756,013 | (6,170,137) | (7,813,130) | (17,343,461) | ||||
1,281,360 | 421,901 | 10,253,672 | (3,013,562) | ||||
140 | (4,740) | 7,190 | (105,336) | ||||
- | (25,403) | - | (10,189) | ||||
140 | (30,143) | 7,190 | (115,525) | ||||
15,827,925 | 7,291,715 | 51,126,446 | 15,632,743 | ||||
The annexed notes 1 to 42 form an integral part of these unconsolidated condensed interim financial statements.
Arif Akmal Saifie | Muhammad Jawaid Iqbal | Shazia Syed | Daniel Michael Howlett | Sir Mohammed Anwar Pervez, OBE, HPk |
Chief Financial Ocer | President & | Director | Director | Chairman |
Chief Executive Ocer |
08 United Bank Limited
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United Bank Ltd. published this content on 30 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 12:56:07 UTC.