Mr. Aameer Karachiwalla - Chief Financial Officer ... · First Bank in Pakistan to offer Prepaid VISA Debit Card First Bank in Pakistan to offer Verified by Visa Service First ank

UBL Performance Overview – Q1 2019 1

During the quarter, the Bank completed the Initial Public Offering (IPO) of its Additional Tier-1 TFCs amounting to Rs. 1 billion, thus closing the total issue size of Rs. 10 billion.

Performance Highlights

- Q1 2019

Investor Relations

Earnings Call

April 29th, 2019

Speakers:

Mr. Aameer Karachiwalla - Chief Financial Officer

Mr. Arif Saifie, FCA, CFA - Financial Controller and

Head of Investor Relations

UBL Performance Overview – Q1 2019

Agenda for the call

3

10

30

PAGE

Key Highlights for Q1’ 2019

Our Investment, focus and results in the last 5 years

Execution and Delivery – A consistent performance

Quarterly Trend Analysis – Performance through the cycle

26


Maintained build up - Average domestic current deposits at Rs. 468 bln, up 13% vs. Q1’18

Average CASA for the period was 86.8% (Q1’18: 85.6%)

Domestic cost of deposits at 4.7% (Q1’18 : 2.6%) – despite rate hike of 500bps since Dec’17

Strong build up in Domestic fees - up by 17% YoY to reach Rs. 2.9 bln in Q1’19

FX income increased by 70% to Rs 908 mln in Q1’19

Overall Bank NII up by 6%, closing at Rs. 14.7 bln in Q1’19

Overall expenses growth well contained at 4% - Q1’19 vs Q1’18

Net Provision charge down to Rs. 1.3 bln in Q1’19 from Rs. 1.9 bln in Q1’18

CAR has remained strong at 17.6% at Mar’19 (Dec’18: 17.7%)

Key Performance Highlights

UBL Standalone Results

Major upsides building core earnings in Q1’19

PBT at Rs. 9.2 bln, up 126% vs. Q1’18 (Pension charge of Rs 6.4 bln in Q1’18)


Net Interest Income of Rs. 14.7 bln in Q1’19 (Q1’18: Rs. 13.9 bln)

128,000 NTB current accounts mobilized in Q1’19 (Q1’18: 149,000)

Growth led by current deposits – average growth of 13%, incremental vol. of Rs. 53 bln

Current to total deposits ratio at 47.1% (Dec’18: 45.9%).

Average domestic deposits grew by 12% year on year

Average performing advances growth of 3% - Domestic up 9%, International down 29%

Growth led by Corporate – average loan book expansion of 10%

Average Consumer portfolio grew 33% to Rs. 16 bln, SME lending up 24% to Rs. 35 bln

PIBs portfolio at Rs 421 bln (Dec’18: Rs 410 bln)

Repo book reduced from Rs. 131 bln at Dec’18 to Rs. 60 bln at Mar’19 end

4

Branch Banking builds deposit base in cost efficient manner

Avg. Total Assets of Rs. 1.69 tln in Q1’19 vs Rs. 1.91 tln in Q1’18


Overall NFI closed at Rs. 5.0 bln in Q1’19 vs Rs. 7.3 bln in Q1’18

DOM FX revenue up by 32% to reach 787 mln in Q1‘19

Fee income stood at Rs. 3.6 bln, up 23% from Q1’18

Domestic fees grew by 17% YoY to reach Rs. 2.9 bln in Q1’19:–

Branch banking customer fees up by 10% to reach Rs. 419 mln (Q1’18: Rs. 380 mln)

Debit & Credit Cards fees up by 2% to reach Rs. 388 mln (Q1’18: Rs. 378 mln)

Remittances including home remittances revenues grew by 13% to reach Rs. 671 mln - Home remittances market share 28.5% in Q1’19 (Q1’18: 31.4%)

Guarantee commission up to Rs. 180 mln from 87 mln in Q1’18

Banca revenues up 20% to reach Rs. 333 mln (Q1’18: Rs. 277 mln)

Cash management commissions grew by 6% over Q1’18 to reach Rs. 175 mln

Dividend income of Rs. 226 mln (Q1’18: 571 mln) – yield of 4.7% (Q1’18: 12.9%)

Higher Capital gains last year in Q1’18: Rs. 3.1 bln – mainly on the PIBs

FX income increased by 70% to Rs. 908 mln in Q1’19


DOM net provision charge of Rs. 0.1 bln in Q1’19 (Q1’18: net reversal of Rs. 0.8 bln)

DOM asset quality stood at 5.3% at the end of Mar’19 (Dec’18: 4.9%)

International provisions of USD 8.9 mln taken in Q1’19 (Q1’18: USD 24.5 mln)

Overall NPLs closed at Rs. 69.5 bln at Mar’19 (Dec’18: Rs. 68.6 bln)

International NPLs at USD 302 mln at Mar’19 (Dec’18: USD 293 mln)

International coverage with FSV Benefit stood at 92% at Mar’19 (Dec’18: 92%)

Overall asset quality maintained at 10.0% (Dec’18: 8.8%)

At Bank level specific coverage at 82% (Dec’18: 82%) – DOM coverage at 94% (Dec’18: 93%)

Net provision charge of Rs. 1.3 bln in Q1’19 vs. Rs. 1.9 bln in Q1’18

Administrative expenses stood at Rs. 9.0 bln, excluding DPC flat YoY

Total staff costs down 5% in Q1’19 recorded at Rs. 3.4 bln (DOM: Rs. 2.7 bln flat YoY)

Property expenses down 3% in Q1’19 to reach Rs. 1.5 bln (DOM: Rs. 1.3 bln down 6% YoY)

IT expenses up 19% in Q1’19 reported at Rs. 0.8 bln (DOM: Rs. 0.7 bln up 19% YoY)

Other opex (excluding DPC) up 4% in Q1’19 to reach Rs. 2.9 bln (DOM: Rs. 2.4 bln up 8% YoY)

Provisions and Admin Expenses


UBL Innovation and Awards

UBL “Firsts” – Initiatives to stay ahead of the market Market recognition and awards

First Commercial Bank in Pakistan to launch Branchless Banking (UBL OMNI)

First Bank in the world to issue VISA Debit Cards for G2P assistance to affectees

First Bank to provide Instantaneous ATM/Debit cards to branchless banking customers at the time of account opening (UBL Omni)

First Pakistani Bank to be granted status of Authorized Derivative Dealer (ADD) in Pakistan and First institution from Pakistan and third in South Asia to be accredited with Primary Membership of International Swaps and Derivatives Association

First Bank in Pakistan to offer Prepaid VISA Debit Card

First Bank in Pakistan to offer Verified by Visa Service

First Bank in Pakistan where customer’s inward remittances are deposited automatically on an ATM and VISA enabled debit card (UBL Tezraftaar PardesCard)

Declared ‘Bank of the Year 2018 – Pakistan’ by The Banker, an affiliate of the Financial Times UK.

“Best Bank” in the first ever Pakistan Banking Awards 2016

“Best Bank for Corporate Finance and Capital Market Development” in the Pakistan Banking Awards 2017

JCR-VIS reaffirmed UBL’s entity ratings at AAA/A-1+ (Triple A / A-One Plus)

“Innovation Award” at the Mastercard Innovation Forum for ‘Launch of UBL MasterPass QR’

“National Medal of Innovation Award” 2016 for Pioneering G2P Payments – Pakistan Innovation Foundation

Top 25 Companies Award by the Karachi Stock Exchange for 2010-2012, 2015 and 2016

“Best Bank for SMEs” by the Asia Money Pakistan Banking Awards in 2017

2012 & 2013 Bank of the Year in Pakistan Award by The Banker Magazine, an affiliate of the Financial Times, UK

ASIAMONEY Best Domestic Bank Award for 2011 and 2012

Recognized globally in 2013 as one of the 14 “Sprinters” by the GSMA’s Mobile Money for the Unbanked (MMU) program, being the only bank in the category

GSMA Global Mobile Award 2012 for “Best Use of Mobile in Emergency or Humanitarian Situations” and Financial Insights Innovation Award for “Innovation in Cash Disbursements (G2P)”

Recognized by CFA Pakistan Society for the “Best Investor Relations” function in 2013 and 2014

7


50%75% 85%

100%115%

130% 130% 130%110%

25%

54.8%59.2% 58.2%

65.8% 64.2% 61.9% 57.4%63.2% 69.3% 73.5%

0%

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30%

40%

50%

60%

70%

80%

90%

100%

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40%

60%

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120%

140%

2010 2011 2012 2013 2014 2015 2016 2017 2018 Mar'19

Cash Dividend Dividend Payout Ratio

8

Consistent earnings performance throughout the years

Equity and Book Values

Dividend Payout EPS & Price Earnings Ratio

Trends - KSE 100 Index and UBL’s share price

* Payout for 2018 is computed on normalized PAT excluding the effect of one-off pension cost

Dec'10 Dec'11 Dec'12 Dec'13 Dec'14 Dec'15 Dec'16 Dec'17 Dec'18

EPS 9.1 12.7 14.7 15.2 17.9 21.0 22.7 20.6 12.4

PE 7.5 4.1 5.7 8.7 9.9 7.4 10.5 9.1 9.9

0.7

5.6

10.4

15.3

20.1

25.0

2.0

5.6

9.2

12.8

16.4

20.0

*

68 79 92 101

126 142

152 159 151 155

56 65 75 82 103

116 124 130 124 127

2010 2011 2012 2013 2014 2015 2016 2017 2018 Mar'19

Total Equity - St. BV Per share - St.

Rs in bln Cons . Equity Mar’19 - Rs. 173 blnCons. Book value Mar’19 - Rs. 142 per share

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UBL's share price KSE 100 Index

Max 2019: Rs. 157.59 29 Mar’19: Rs. 139.5326 Apr'19: Rs. 147.09


Our international outreach - serving in 4 continents under the single “UBL” brand

9

OVERSEAS BRANCHES16

PAKISTAN BRANCHES1,359

SUBSIDIARIES4

ASSOCIATED COMPANIES3

Globally around 23% of our asset base is located overseas

Asset mix by region 2018 2017Domestic Operations 77.3% 79.9%

International Operations 22.7% 20.1%Middle East 16.4% 14.9%USA 0.1% 0.3%Europe 5.7% 4.6%Africa 0.3% 0.2%EPZ 0.2% 0.1%


Execution and Delivery in Q1’19Being one of the largest financial institutions in Pakistan, UBL continues to maintain a sound capital base to support future growth and expansion.

The Bank’s Capital Adequacy Ratio stood at 17.6% at Mar’19 (Dec’18: 17.7%)


Income Statement - Standalone

11

Q1'19 Q1'18 Var % Q4'18 Var %

Interest Earned 31.4 28.1 11.6% 29.3 7.1%

Interest Expensed (16.7) (14.3) -17.1% (15.0) -11.9%

Net Interest Income 14.7 13.9 5.8% 14.4 2.1%

Non Interest Income 5.0 7.3 -31.9% 5.7 -12.0%

Total Revenue 19.6 21.2 -7.2% 20.0 -1.9%

Admin. Expenses (9.0) (8.7) -3.4% (10.7) 16.1%

Total Expenses (9.1) (8.8) -4.0% (8.2) -12.1%

Pre Prov. Operating Profit 10.5 12.4 -15.2% 11.9 -11.4%

Provision Exp./Other writeoffs (1.3) (1.9) 30.8% (5.5) 75.8%

Profit Before Extra Ordinary / Unususal Item and Tax 9.2 10.5 -12.4% 6.4 43.7%

Extra Ordinary / Unususal Item - Pension Cost - (6.4) 100.0% 2.1 -100.0%

Profit Before Tax 9.2 4.1 125.6% 8.5 8.3%

Profit After Tax 4.2 2.6 57.4% 5.5 -24.2%

Rs in bln Rs in bln


Income Statement - Domestic

12

Q1'19 Q1'18 Var % Q4'18 Var %

Interest Earned 27.7 24.8 11.7% 25.4 9.0%




Total Revenue 16.5 18.6 -11.2% 17.7 -6.9%

Admin. Expenses (7.4) (6.8) -8.5% (7.9) 6.2%

Total Expenses (7.6) (7.1) -7.3% (8.1) 292.6%

Pre Prov. Operating Profit 8.9 11.5 -22.5% 11.8 172.4%

Provision Exp./Other writeoffs (0.1) 0.8 -109.7% (0.7) 88.9%



Profit Before Tax 8.8 5.9 49.4% 13.2 -32.9%

Rs in bln Rs in bln


Balance Sheet - Standalone

13

Mar'19 Dec'18 Var %

Advances 636 716 -11.2%

Investments 759 786 -3.5%

Lendings to Financial Institutions 44 34 30.6%

Others 315 353 -10.8%

Total Assets 1,754 1,890 -7.2%

Deposits 1,344 1,366 -1.6%

Borrowings 140 268 -47.8%

Subordinated Debts 10 9 11.1%

Others 105 95 9.9%

Total Liabilities 1,599 1,738 -8.0%

Net Assets 155 151 2.5%

Share Capital 12 12 0.0%

Reserves 56 54 2.9%

Unappropriated Profit 68 68 0.1%

Surplus on revaluation of Assets 19 17 12.7%

Total Equity including Surplus 155 151 2.5%

Rs in bln


Income Statement - Consolidated

Q1'19 Q1'18 Var % Q4'18 Var %

Interest Earned 32.1 29.1 10.6% 30.4 5.8%




Total Revenue 20.7 22.5 -7.8% 20.9 -1.0%

Admin. Expenses (9.8) (9.5) -2.7% (11.8) 17.0%

Total Expenses (9.9) (9.6) -3.2% (9.2) -7.6%

Pre Prov. Operating Profit 10.8 12.8 -16.1% 11.7 -7.9%

Provision Exp./Other writeoffs (0.9) (1.9) 54.4% (5.1) 82.7%



Profit Before Tax 9.9 4.5 119.4% 8.7 14.1%

Profit After Tax - Continued operations 4.8 2.8 75.3% 5.6 -12.9%

Loss from discontinued operations - net of tax (0.8) - -100.0% - -100.0%

Profit After Tax 4.1 2.8 46.8% 5.6 -27.1%

Rs in bln Rs in bln


Balance Sheet - Consolidated

15

Mar'19 Dec'18 Var %

Advances 670 755 -11.2%

Investments 805 831 -3.2%

Lendings to Financial Institutions 47 35 33.6%

Assets held for sale 4 - 100.0%

Others 343 381 -10.2%

Total Assets 1,869 2,002 -6.7%

Deposits 1,429 1,448 -1.4%

Borrowings 147 280 -47.3%

Subordinated Debts 10 9 11.1%

Liabilities held for sale 4 - 100.0%

Others 106 97 9.6%

Total Liabilities 1,696 1,834 -7.5%

Net Assets 173 169 2.9%

Share Capital 12 12 0.0%

Reserves 62 60 3.1%

Unappropriated Profit 74 74 -0.1%

Surplus on revaluation of Assets 20 17 14.8%

Total Equity attributable to equity holders of Bank 167 163 2.6%

Non-controlling Interest (NCI) 6 6 10.0%

Total Equity + NCI 173 169 2.9%

Rs in bln


Core Business Driving Growth


Deposits - Bank

Deposits performance - Focus remains on growing low cost deposits

Cost of Deposits

Dec'18 Dec'18 Q1'19 Q1'18 Q1'19 Q1'18

Domestic deposits - Rs in bln 1,089 1,106 1,089 969 4.7% 2.6%

International deposits - Rs in bln 256 260 249 250 2.2% 2.2%

Total Bank - Rs in bln 1,344 1,366 1,338 1,219 4.2% 2.5%

International - USD in mln 1,815 1,869 1,788 2,248 2.2% 2.2%

Domestic CASA 87.9% 86.8% 86.8% 85.6%

Domestic Current to Total Deposits 47.1% 45.9% 43.0% 42.8%

Cost of DepositsAveragePeriod End

4.7%

2.2%

4.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

Q1'13Q2'13Q3'13Q4'13Q1'14Q2'14Q3'14Q4'14Q1'15Q2'15Q3'15Q4'15Q1'16Q2'16Q3'16Q4'16Q1'17Q2'17Q3'17Q4'17Q1'18Q2'18Q3'18Q4'18Q1'19

Domestic International Bank


Advances portfolio down 11% from Dec’18

Net Advances

Mar'19 Dec'18 Var %

Corporate Bank 344 374 -8%

Commodity 60 68 -12%

Commercial 29 43 -31%

Consumer 17 16 5%

Others 30 44 -31%

Total Domestic 480 545 -12%

International 156 171 -9%

Bank 636 716 -11%

International USD mln 1,105 1,232 -10%

Rs in bln

344

374

60

68

29

43

17

16

156

171

30

44

Mar'19

Dec'18

Corporate Bank Commodity Commercial Bank Consumer Bank International Others


UAE, 78%

Bahrain, 13% Qatar, 8%

EPZ, 1%

Dubai, 61%

Abu Dhabi, 33%

Sharjah, 6%

International Performing Advances - Corporate remains the largest component

19

By Business - UAEBy Geography

Corporate,

61%

Consumer, 4%

Others, 35%

Baitna, 99%

Personal loan, 1%


Concentration of Advances as at March 31, 2019 - Standalone

20

2%

10%

11%

1%1%2%

8%

2%

26%

8%

29%

Chemical & Pharma Agribusiness Textile

Cement Sugar Autos & Transport

Financial Electronics Power & Energy

Individuals Others


Investments’ yieldsPortfolio declines in line with reduced leveraging

Diversified investment portfolio with strong market risk management

Non Funded income down as no capital gains in Q1’19

21

571 226

536 908

3,066

5

Q1'18 Q1'19

Capital gains

FX income

Dividend

Rs in mln

185 243

408

396

16 17 36

41 60

57 54

34

Mar'19 Dec'18

T Bills PIBs

Listed shares GoP Sukuks / Eurobonds

Foreign bonds Others

Rs in blnTotal 786

Total 759

10.4%

11.1%

10.4%

8.9%

7.8%7.6%

8.3%

2013 2014 2015 2016 2017 2018 Q1'19


Diversification in earningsReview of Non Interest Income & Administrative Expenses


Non Fund Income Standalone Results

Q1'19 Q1'18 Var %

Fee, commission and brokerage income 2,864 2,450 17%

Dividend income 226 571 -60%

Income from dealing in foreign currencies 787 596 32%

Gain / (loss) on sale of securities 14 2,881 -100%

Other income 192 163 17%

Domestic Total 4,083 6,662 -39%

International Total 892 647 38%

Bank Total 4,974 7,309 -32%

International Total - USD in '000 6,418 5,817 10%

Rs in mln


Fees and Commissions performance Standalone Results

Q1'19 Q1'18 Var %

Branch banking customer fees 419 380 10%

Consumer finance related fees 216 172 25%

Card related fees (debit and credit cards) 388 378 2%

Investment banking fees 19 34 -44%

Financial Institution rebate / commission 59 57 2%

Corporate service charges / facility fee 30 52 -43%

Commission on trade 102 155 -34%

Commission on guarantees 180 87 106%

Commission on cash management 175 164 6%

Commission on remittances including home remittances - net 671 593 13%

Commission on bancassurance 333 277 20%

Commission on Benazir Income Support Program 179 - 100%

Others 95 100 -5%

Domestic Total 2,864 2,450 17%

International Total 749 497 51%

Bank Total 3,613 2,947 23%


Rs in mln


Administrative Expenses Standalone Results

Q1'19 Q1'18 Var %

Total compensation expenses 2,732 2,736 0%

Rent and taxes 18 526 97%

Utilities cost 282 257 -9%

Security 224 291 23%

Depreciation 173 141 -23%

Depreciation - Right of Use Assets 467 - -100%

Others 137 163 16%

Property expenses 1,301 1,378 6%

Hardware & Software Maintenance 274 252 -9%

Depreciation & Amortisation 278 192 -45%

Network charges 144 143 -1%

Information technology expenses 696 587 -19%

Legal and professional charges 59 50 -17%

Outsourced service costs including sales commission 866 739 -17%

Banking service charges 310 286 -8%

Cash transportation and sorting charges 248 252 2%

Depreciation 320 282 -13%

Stationery and printing 146 148 1%

Marketing, advertisement and publicity 118 121 3%

Insurance (including deposit protection) 313 15 -2055%

Donations - 3 100%

Others 289 306 6%

Other operating expenses 2,669 2,203 -21%

Domestic Total 7,399 6,904 -7%

International Total 1,552 1,751 11%

Bank Total 8,951 8,655 -3%


Rs in mln


Our Investment, focus and results in the last 5 years


Balance Sheet

Rs. in mlns 2018 2017 2016 2015 2014 2013 2012

Assets

Cash and balances with treasury and other banks 206,813 177,099 146,428 128,870 87,573 114,388 109,396

Lending to financial institutions 33,942 10,868 25,711 24,095 21,872 28,835 21,953

Investments- gross 792,857 1,095,555 808,959 721,651 499,060 425,253 351,002

Advances - gross 776,272 670,056 559,093 497,032 479,998 436,749 409,090

Operating fixed assets 47,556 46,205 35,582 31,630 30,303 24,608 24,431

Other assets 98,977 79,617 67,812 41,124 40,067 27,317 26,800

Total assets - gross 1,956,417 2,079,400 1,643,585 1,444,402 1,158,874 1,057,150 942,673

Provisions against non-performing advances (60,336) (42,697) (40,525) (41,618) (45,734) (45,936) (44,727)

Provisions against diminution in value of investment (6,482) (3,769) (2,428) (2,133) (1,726) (1,476) (1,412)

Total assets - net of provision 1,889,599 2,032,934 1,600,632 1,400,651 1,111,414 1,009,739 896,535

Liabilities & Equity

Deposits & other Accounts 1,366,060 1,272,788 1,167,124 1,051,235 895,083 827,848 698,430

Borrowing from financial institutions 268,124 512,650 201,550 163,132 53,065 40,574 68,720

Sub-ordinated loans 9,000 - - - - 665 9,319

Bills payable 27,249 29,848 24,520 13,392 9,554 16,591 7,601

Other liabilities 67,896 58,341 55,651 30,757 28,196 23,147 20,226

Total Liabilities 1,738,329 1,873,627 1,448,845 1,258,516 985,898 908,825 804,296

Net Assets / Liabilities 151,270 159,307 151,787 142,135 125,516 100,914 92,238

Share capital 12,242 12,242 12,242 12,242 12,242 12,242 12,242

Reserves 54,439 43,847 40,455 38,402 34,130 33,681 29,044

Un - appropriated profit / (loss) 68,002 70,912 64,246 55,223 48,217 42,635 37,416

Equity - Tier I 134,683 127,001 116,943 105,867 94,589 88,558 78,702

Surplus on revaluation of assets 16,587 32,306 34,844 36,268 30,927 12,356 13,537

Equity 151,270 159,307 151,787 142,135 125,516 100,914 92,238

Total liabilities & equity 1,889,599 2,032,934 1,600,632 1,400,651 1,111,414 1,009,739 896,535


Profit & Loss

Rs. in mlns 2018 2017 2016 2015 2014 2013 2012

Markup / return / interest earned 113,198 107,206 98,219 94,353 82,735 72,846 73,507

Markup / return / interest expensed (56,964) (50,781) (41,177) (38,511) (37,769) (34,910) (34,948)

Net Markup / Interest income 56,234 56,425 57,042 55,842 44,967 37,936 38,560

Fee, commission, brokerage and exchange income 17,396 14,496 14,020 14,474 14,418 12,205 10,025

Capital gain & dividend income 6,709 6,762 8,629 6,442 3,806 4,845 3,131

Other income 967 904 960 1,070 1,071 1,064 3,975

Non interest income 25,072 22,162 23,609 21,986 19,296 18,114 17,131

Gross income 81,306 78,587 80,651 77,828 64,263 56,050 55,691

Administrative expenses and other charges (43,222) (36,109) (32,809) (31,776) (29,597) (26,718) (24,306)

Profit before provisions 38,084 42,478 47,842 46,052 34,666 29,332 31,385

Donations (203) (110) (87) (167) (112) (77) (35)

Provisions (12,914) (2,450) (1,740) (3,710) (1,156) (1,448) (4,499)

Profit before taxation 24,967 39,918 46,015 42,175 33,398 27,807 26,851

Taxation (9,741) (14,739) (18,285) (16,448) (11,469) (9,193) (8,960)

Profit after taxation 15,226 25,179 27,730 25,727 21,930 18,614 17,891


Key Financial Ratios & Share Information

2018 2017 2016 2015 2014 2013 2012

Key Financial Ratios

Return on equity (RoE) 11.6% 20.6% 24.9% 25.7% 23.9% 22.3% 23.8%

Return on assets (RoA) 0.8% 1.4% 1.8% 2.0% 2.1% 2.0% 2.1%

Profit before tax ratio 30.7% 50.8% 57.1% 54.2% 52.0% 49.6% 48.2%

Return on capital employed (RoCE) 11.3% 20.6% 24.9% 25.7% 23.9% 21.0% 20.9%

Advances to deposits ratio (ADR) - gross 53.2% 49.8% 45.6% 45.2% 51.3% 50.7% 56.2%

Cost to revenue ratio 47.8% 45.0% 39.6% 39.7% 45.2% 46.5% 42.6%

Growth in gross income 3.5% -2.6% 3.6% 21.1% 14.7% 0.6% 6.8%

Total assets to shareholders’ funds 12.5 12.8 10.5 9.9 8.9 10.0 9.7

Intermediation cost ratio 3.3% 3.0% 3.0% 3.3% 3.4% 3.5% 3.7%

NPL ratio 8.8% 7.8% 8.0% 9.4% 11.2% 12.1% 14.0%

Net infection ratio 1.1% 1.5% 0.8% 1.1% 1.9% 1.7% 3.5%

Capital adequacy ratio (CAR) 17.7% 15.4% 15.1% 14.6% 13.9% 13.3% 15.0%

Share Information - Rs

Cash dividend per share 11.00 13.00 13.00 13.00 11.50 10.00 8.50

Dividend yield (based on cash dividend) 5.9% 5.4% 8.4% 7.4% 8.7% 12.0% 16.2%

Dividend payout ratio (total payout) 88.4% 63.2% 57.4% 61.9% 64.2% 65.8% 58.2%

Earning per share (EPS) 12.44 20.57 22.65 21.02 17.91 15.21 14.61

Price earnings ratio (PE) 9.86 9.14 10.55 7.37 9.86 8.72 5.72

Market value per share - at the end of the year 122.64 187.97 238.90 154.95 176.71 132.55 83.67

Market value per share - highest during the year 219.70 283.00 243.72 186.75 198.39 154.21 91.99


Quarterly Trend Analysis

Bank Level - Standalone


Profit before tax Rs in bln

31

5.96.4

7.1

8.47.8 8.0 8.3

9.3

10.9 11.2

10.2 9.9

11.3

13.5

10.810.4

11.2 11.8

8.4

8.8

4.1

6.55.9

8.59.2

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

-54%

+61%

-10%

+44%

+8%


Profit after tax Rs in bln

32

4.04.3

4.7

5.7

5.2 5.3 5.3

6.1

7.1

5.6

6.56.5

7.3

7.0

7.0

6.4

7.3

6.0

5.9

6.3

2.6

3.63.5

5.5

4.2


-5%

-58%+37%

+59%+59%

-24%


Deposits Rs in bln

703752 773

828 847 858 866895

945992 994

1,051 1,070

1,1421,147 1,167

1,183

1,256 1,2541,2731,301

1,3151,3351,366 1344


+1%-2%

+2%+1%

+2%


Net Advances Rs in bln

352363 369

391377

408417 434

420 430

459 455

447

496509 519

498

565 567

627 624

675 673

716

636


-0% -11%

+8%

+6%

-0%


Revenue Rs in bln

12.6

13.814.1

15.414.9

16.3

15.5

17.6

19.3

20.3

18.6

19.5

21.9

21.3

18.1

19.220.0 20.4

17.9

20.3

21.2 21.2

19.0

20.019.6


-10%

-2%

+4% +0%

+5%


Net Interest Income Rs in bln

8.8 9.0

9.5

10.6

9.8

11.311.0

12.813.1

14.2

13.9

14.7

13.6

15.7

13.7

14.0

13.7

14.3

14.2

14.2

13.9

14.2

13.8

14.4 14.7


+2%

-3%

+2%

-3%

+4%


Non Funded Income Rs in bln

3.9

4.84.6

4.9 5.1 5.0

4.54.8

6.2 6.2

4.84.8

8.4

5.6

4.5

5.2

6.36.1

3.8

6.0

7.3

7.0

5.1

5.7

5.0


-12%

+21%-5%

-26%

+10%


Provisions Rs in bln

0.5

0.80.3

-0.1

0.2

0.9

-0.10.2

0.8

1.3

0.70.9

2.0

-0.3 -0.3

0.30.1

-0.5

0.6

2.1

1.9

2.62.9

5.5

1.3

Q1'13Q2'13Q3'13Q4'13Q1'14Q2'14Q3'14Q4'14Q1'15Q2'15Q3'15Q4'15Q1'16Q2'16Q3'16Q4'16Q1'17Q2'17Q3'17Q4'17Q1'18Q2'18Q3'18Q4'18Q1'19

+11%

-76%

-8%

+37%

+88%


Administrative Expenses Rs in bln

6.26.5 6.5

6.9 6.97.2 7.1

8.0

7.37.6

7.4

8.6 8.4

7.8

7.4

8.28.5

8.8 8.8

9.2

8.7

9.9

9.6

10.7

9.0


-2%

-16%

-6%

+14%

+11%


The information contained herein reflects our latest business statement as at March31, 2019.

Except the historical information contained herein, statements in this Release whichcontain words or phrases such as ‘will’, ‘would’, ‘indicating’ expected to’ etc., andsimilar expressions or variations of such expressions may constitute ‘forward-lookingstatements’. These forward-looking statements involve a number of risks,uncertainties and other factors that could cause actual results to differ materially fromthose suggested by the forward-looking statements. These risks and uncertaintiesinclude, but are not limited to our ability to successfully implement our strategy,future levels of non-performing loans, our growth and expansion in business, theimpact of any acquisitions, the adequacy of our allowance for credit losses,technological, implementation and changes, the actual growth in demand for bankingproducts and services, investment income, cash flow projections, our exposure tomarket risks as well as other risks detailed in the reports filed by us with variousregulatory authorities as per applicable laws and regulations. UBL undertakes noobligations to update forward-looking statements to reflect event or circumstancesafter the date thereof.

Important Information


Thank You

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