Performance Highlights Q1 2020 Investor Relations Conference Call - - PowerPoint PPT Presentation

UBL Performance Overview – Q1 2020

1

Speakers:

• Mr. Aameer Karachiwalla - Chief Financial Officer
• Mr. Arif Saifie, FCA, CFA - Financial Controller and Head of Investor Relations

Performance Highlights Q1 2020 Investor Relations Conference Call April 27th, 2020

Winner of Pakistan Stock Exchange (PSX) “Top Companies of the Year” Award for three consecutive years (2016-18)

Declared ‘Best Digital Bank in Pakistan for 2020’ by Asiamoney

UBL Performance Overview – Q1 2020

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Agenda

• Sr. No

Description Slide 1 Key Highlights for Q1 2020 – build up in profitability 3 2 UBL - A strong legacy – market leading positions in core segments 7 3 Core Business Driving Growth – led by branch banking business 11 4 Overview of Financial Performance – key number and ratios 15

UBL Performance Overview – Q1 2020

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• Standalone PAT at Rs. 5.1 bln, up 21.5% vs. Q1’19 – (PAT is up 7% over Q4’19)
• Pre Provisions PBT of Rs 12.1Bln up 16% vs Q1’19 and up 26% vs Q4’19
• Domestic PBT at Rs 10.8 Bln up 22% YoY – led by 16% revenue growth
• Dom Deposits lead the way as Total - Avg Dom Deposits at Rs 1,174 bln - growth of 8% vs Q1’19
• Domestic NII (which is 70% of Bank wide revenue) is up 23% Q1’20 vs Q1’19
• Provisions in Q1’20 of Rs 3.7 Bln (INT charge of Rs 3.76Bln – including IFRS 9 General Provision of

Rs 1.6 Bln). Domestic Bank has posted a net reversal of Rs 62 mln in the first quarter.

• Admin Expenses well below inflation - up by 6% YoY and 14% below last quarter
• Cost to income ratio stood at 43.0% for Q1’20, improving from 45.6% in Q1’19
• CAR has remained strong at 19.5% at Mar’20 (Dec’19: 18.9%)
• No increase in Risk Weighted Assets: Mar’20 at Rs 837 billion in line with Dec’19
• International De-Risking continues - average loan book was reduced by 27% over Q1’19, stood at

USD 799 million in Q1’20.

Key Performance Highlights for Q1’2020

Drivers of Performance in Q1’ 2020 while maintaining sound capital

UBL Performance Overview – Q1 2020

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Overall Revenues

• Net Interest Income of Rs. 17.3 bln in Q1’20 (Q1’19: Rs. 14.7 bln) strong growth up 18% YoY
• Interest earning asset base at Rs. 1.6 trillion for Q1’20, a growth of 10% year on year
• Net interest margins (NIMs) improved to 4.6% in Q1’20 to 4.3% in Q1’19

Deposits

• Average domestic deposits grew by 8% year on year – with Rs 85 Bln incremental volume
• Growth led by CASA – average growth of 5% YoY, incremental vol. of Rs. 48 bln
• Average Current to total deposits ratio at 41.6% (Dec’19: 43.0%)
• Average Domestic current deposits at Rs. 488 bln, up 4% vs. Q1’19
• Average CASA for the period was 84.7% (Q1’19: 86.8%)
• Domestic cost of deposits at 6.4% (Q1’19 : 4.7%) – impact of higher rates

Advances – Maintain Domestic, with major reduction within International

• Domestic Advances stood at Rs 483 bln in Mar’20 (Dec’19: Rs 500 bln)
• International Advances at USD 838 mln in Mar’20,(Dec’19: USD 882 mln, Dec’18: USD 1,232 mln)

down 32% in last 15months Investments portfolio position and mix as at March 31st 2020

• Fixed Income PIBs at Rs 256 bln in Mar’20 yielding 9.4% (Dec’19; Rs 315bln)
• Floating rate PIBs portfolio at Rs 190 bln in Mar’20 (Dec’19: Rs 97 bln) – yielding 14.0%
• T.Bill Portfolio at Rs 359 bln in Mar’20 (Dec’19: 254bln) – yielding 12.6%

Branch Banking builds deposit base in cost efficient manner - strong network performance

• Avg. Total Assets of Rs. 1.86 tln in Q1’20 vs Rs. 1.69 tln in Q1’19

UBL Performance Overview – Q1 2020

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Fees recorded at Rs. 3.0 billion in Q1’20, down 17% year on year

• Avg. Total Assets of Rs. 1.86 tln in Q1’20 vs Rs. 1.69 tln in Q1’19

Domestic - Fee income stood at Rs. 2.4 bln, 15% below Q1’19

• Trade Commission at Rs 224 mln, down 21% YoY
• Banca Commission at Rs 314 mln, 6% down YoY
• Net UBL Omni at Rs 105 mln, down 57% YoY due to BISP impact
• Home Remittances Commission Rs 322 mln, 2% down YoY

International Fees

• Fee income stood at USD 3.5 mln, 35% down YoY in line with de-risking strategy

Capital Gain of Rs 342 mln vs Rs 5 mln in Q1’19 Exchange Income of Rs 732 mln, 19% down YoY Dividend Income of Rs 394 mln, 74% up YoY

• Domestic FX Income of Rs 863 mln, up Rs 76 mln YoY,
• International FX Loss of USD 0.83 mln & FX Income of USD 0.87 mln in Q1’19

UBL Performance Overview – Q1 2020

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• DOM net provision Reversal of Rs. 62 mln in Q1’20 (Q1’19: Net charge of Rs. 79 mln)
• DOM asset quality stood at 6.1% at the end of Mar’20 (Dec’19: 5.2%)
• International provisions of USD 24.1 mln taken in Q1’20 (Q1’19: USD 8.9 mln)
• Overall NPLs closed at Rs. 86.3 bln at Mar’20 (Dec’19: Rs. 76.6 bln)
• International NPLs at USD 332 mln at Mar’20 (Dec’19: USD 319 mln)
• International coverage stood at 75.3% at Mar’20 (Dec’19: 77.3%)
• International coverage with FSV Benefit stood at 86.2% at Mar’20 (Dec’19: 90.9%)
• Overall asset quality stood at 12.4% (Dec’19: 10.9%)
• At Bank level specific coverage at 77.5% (Dec’19: 82.5%) – DOM coverage at 81.5% (Dec’19: 92.1%)

Net provision charge of Rs. 3.7 bln in Q1’20 vs. Rs. 1.3 bln in Q1’19 Administrative expenses stood at Rs. 9.5 bln, up 6% YoY

• Property related expenses were recorded at Rs. 1.6 billion for the current quarter, in line with Q1’19
• IT expenses witnessed an increase of 13% year on year, as the bank continues to invest in technology

platforms to transform banking services in line with its digital strategy

• Other costs were recorded at Rs. 3.0 billion for the period under review (Q1’19: Rs. 3.2 billion)

Provisions and Admin Expenses

UBL Performance Overview – Q1 2020

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7

UBL - A strong legacy

UBL Performance Overview – Q1 2020

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UBL - A dominant Pakistani brand

A Look into the Past

1959 - UBL set up with first branch in Karachi 1963 - First Pakistani bank with a branch in

London

1967 - UBL enters the UAE 1974 - UBL nationalized with other private

banks

2002 - Privatized with divesture of 51% stake by

the GoP

2007 - An additional 25% of the share capital

divested by the GoP to international investors through a GDR offering

2014 - Divesture of remaining 19.8% stake, a

USD 400 mln transaction, by the GoP through secondary public offering (SPO)

• Second

largest private sector bank in Pakistan with 1,363 branches

• Market share of 8.2%, 5.5 million customers
• Highest credit ratings of AAA / A-1+ by VIS
• One
• f

the most profitable banks in Pakistan - avg. RoE of 20% 2014-2019

• First branchless banking proposition in

Pakistan i.e. UBL Omni

• Cost efficient deposit mix driven by well

penetrated branch network

• Largest rural network - vast potential to

increase financial inclusion

• At the forefront of innovation – digital lab,

next gen mobile app, digital onboarding Our Current Positioning Key Strategic Advantages

UBL Performance Overview – Q1 2020

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UBL Innovation and Awards - continues to be acknowledged by the market

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 to launch QR code based payments in Pakistan



First Pakistani Bank to launch digital customer onboarding



First Bank to provide Instantaneous ATM/Debit cards to branchless banking customers at the time of account

• pening (UBL Omni)



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



First Bank in Pakistan to offer Prepaid VISA Debit Card



First Bank in Pakistan to offer Verified by Visa Service



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



First Pakistani Bank to be granted status of Authorized Derivative Dealer (ADD) in Pakistan



First institution from Pakistan and third in South Asia to be accredited with Primary Membership of International Swaps and Derivatives Association



Declared ‘Best Digital Bank in Pakistan for 2020’ by Asiamoney



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



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 Pakistan Stock Exchange for 2010-2012 and 2015 -2018



“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



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

UBL Performance Overview – Q1 2020

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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

*

68 79 92 101 126 142 152 159 151 169 165 56 65 75 82 103 116 124 130 124 138 135 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Mar'20

Total Equity - St. BV Per share - St. Rs in bln

• Cons. Equity Mar’20 - Rs. 186 bln
• Cons. Book value Mar’20- Rs. 152 per share

50% 75% 85% 100% 115% 130% 130% 130% 110% 120% 25% 54.8% 59.2% 58.2% 65.8% 64.2% 61.9% 57.4% 63.2% 69.3% 76.8% 60.5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 20% 40% 60% 80% 100% 120% 140% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1'20 Cash Dividend Dividend Payout Ratio

25 30 35 40 45 50 55 100 120 140 160 180 200 220 240 260 280 300

Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 UBL's share price KSE 100 Index Max 2020: Rs. 181.96

Dec'10 Dec'11 Dec'12 Dec'13 Dec'14 Dec'15 Dec'16 Dec'17 Dec'18 Dec'19 Mar'20 EPS 9.1 12.7 14.7 15.2 17.9 21.0 22.7 20.6 12.4 15.63 16.62 PE 7.5 4.1 5.7 8.7 9.9 7.4 10.5 9.1 9.9 10.5 6.1

0.7 5.6 10.4 15.3 20.1 25.0 2.0 5.6 9.2 12.8 16.4 20.0

UBL Performance Overview – Q1 2020

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11

Core Business Driving Growth

UBL Performance Overview – Q1 2020

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Bank Deposits Deposits performance - Focus remains on growing low cost deposits Cost of Deposits

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%

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 Q2'19 Q3'19 Q4'19 Q1'20

Domestic International Bank

Rs in bln Mar'20 Dec'19 Q1'20 Q1'19 Var % Q1'20 Q1'19

Current deposits 521 520 488 468 4.3% 0.0% 0.0% Saving deposits 553 505 506 477 6.0% 10.8% 8.0% CASA 1,074 1,025 994 945 5.1% 5.5% 4.0% Tem deposits 174 192 180 144 25.4% 11.3% 8.8% Domestic deposits 1,248 1,217 1,174 1,089 7.8% 6.4% 4.7% International deposits 245 250 238 249

• 4.0%

1.9% 2.2% Total Bank 1,493 1,467 1,412 1,337 5.6% 5.7% 4.2% International - USD in mln 1,470 1,617 1,529 1,788

• 14.5%

1.9% 2.2% Domestic CASA 86.1% 84.3% 84.7% 86.8% Domestic Current to Total Deposits 41.8% 42.8% 41.6% 43.0%

Period End Cost of Deposits Average

UBL Performance Overview – Q1 2020

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Advances portfolio down 2% from Dec’19

DOM advances yield up to 13.0% Q1’20 (Q1’19: 10.6%) – repricing in line with benchmark rate Mar'20 Dec'19 Corporate Bank 365 373

• 2%

Commodity 53 66

• 20%

Small Enterprises 8 10

• 18%

Consumer 17 17

• 2%

Others 40 33 20% Total Domestic 483 500

• 3%

International 140 137 2% Bank 623 636

• 2%

International USD mln 838 882

• 5%

Rs in bln Description Var %

365 373 53 66 8 10 17 17 140 137 40 33 Mar'20 Dec'19 Corporate Bank Commodity Small Enterprises Consumer Bank International Others

UBL Performance Overview – Q1 2020

14 DOM Investments’ yields – repricing upwards in 2020

Change in mix to shorter tenor instruments

Deployment in GoP papers, RWA efficient

Non Funded income up as lower capital gains in Q1’19 363 258 446 405 10 13 33 40 64 71 55 54

Mar'20 Dec'19

T Bills PIBs Listed shares GoP Sukuks / Eurobonds Foreign bonds Others

Rs in bln 10.4% 11.4% 10.6% 9.0% 7.8% 7.8% 10.3% 11.6% 2013 2014 2015 2016 2017 2018 2019 Q1'20 226 394 908 732 5 342 Q1'19 Q1'20 Capital gains FX income Dividend

Rs in mln

UBL Performance Overview – Q1 2020

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15

Overview of Financial Performance

UBL Performance Overview – Q1 2020

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Balance Sheet - Standalone

Mar'20 Dec'19

Advances 623 636

• 2.1%

Investments 970 840 15.5% Lendings to Financial Institutions 19 20

• 6.6%

Others 332 397

• 16.2%

Total Assets 1,944 1,894 2.7% Deposits 1,493 1,467 1.7% Borrowings 186 154 20.3% Subordinated Debts 10 10 0.0% Others 91 93

• 2.5%

Total Liabilities 1,779 1,725 3.2% Net Assets 165 169

• 2.2%

Share Capital 12 12 0.0% Reserves 62 59 5.2% Unappropriated Profit 71 72

• 1.0%

Surplus on revaluation of Assets 20 26

• 23.3%

Total Equity including Surplus 165 169

• 2.2%

Rs in bln Var %

Description

UBL Performance Overview – Q1 2020

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Income Statement - Standalone

Q1'20 Q1'19 Interest Earned 43.4 31.4 38.2% Interest Expensed (26.0) (16.7)

• 55.5%

Net Interest Income 17.3 14.7 18.3% Non Interest Income 4.7 5.0

• 6.2%

Total Revenue 22.0 19.6 12.1%

• Admin. Expenses

(9.5) (9.0)

• 5.8%

Total Expenses (9.9) (9.1)

• 8.1%

Pre Prov. Operating Profit 12.1 10.5 15.6% Provision Exp./Other writeoffs (3.7) (1.3)

• 179.7%

Profit Before Tax 8.4 9.2

• 8.1%

Profit After Tax 5.1 4.2 21.5% Effective Tax Rate 40.0% 54.6% 14.6% Rs in bln Var % Description

UBL Performance Overview – Q1 2020

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Non Fund Income Standalone Results

Rs in mln Q1'20 Q1'19 Fee, commission and brokerage income 2,440 2,864

• 15%

Dividend income 387 226 71% Income from dealing in foreign currencies 863 787 10% Gain / (loss) on sale of securities (62) 14

• 555%

Other income 219 192 14% Domestic Total 3,847 4,083

• 6%

International Total 818 892

• 8%

Bank Total 4,666 4,974

• 6%

International Total - USD in '000 5,251 6,418

• 18%

Description Var %

UBL Performance Overview – Q1 2020

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Fees and Commissions performance Standalone Results

Rs in mln Q1'20 Q1'19 Branch banking customer fees 382 419

• 9%

Consumer finance related fees 212 216

• 2%

Card related fees (debit and credit cards) 409 415

• 1%

Investment banking fees 11 19

• 43%

Financial Institution rebate / commission 58 59

• 1%

Corporate service charges / facility fee 37 30 26% Commission on trade 88 102

• 13%

Commission on guarantees 135 180

• 25%

Commission on cash management 182 175 4% Commission on remittances including home remittances - net 553 671

• 18%

Commission on bancassurance 314 333

• 6%

Commission on Benazir Income Support Program

• 179
• 100%

Others 58 67

• 14%

Domestic Total 2,440 2,864

• 15%

International Total 546 749

• 27%

Bank Total 2,986 3,613

• 17%

International Total - USD in '000 3,502 5,392

• 35%

Description Var %

UBL Performance Overview – Q1 2020

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Administrative Expenses (1/2) Standalone Results

Q1'20 Q1'19 Total compensation expenses 3,316 2,728

• 22%

Rent and taxes 94 18

• 434%

Utilities cost 312 282

• 11%

Security 242 224

• 8%

Depreciation 188 173

• 8%

Depreciation - Right of Use Assets 443 467 5% Others 87 137 36% Property expenses 1,367 1,301

• 5%

Hardware & Software Maintenance 326 274

• 19%

Depreciation & Amortisation 337 278

• 21%

Network charges 143 144 1% Information technology expenses 806 696

• 16%

Rs in mln Description Var %

UBL Performance Overview – Q1 2020

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Administrative Expenses (2/2) Standalone Results

Q1'20 Q1'19 Legal and professional charges 45 59 23% Outsourced service costs including sales commission 635 868 27% Banking service charges 346 309

• 12%

Cash transportation and sorting charges 197 248 20% Depreciation 282 269

• 5%

Stationery and printing 133 146 9% Marketing, advertisement and publicity 98 118 17% Insurance 47 25

• 86%

Deposit protection premium 326 287

• 13%

Donations 35

• 100%

Others 310 343 10% Other operating expenses 2,454 2,673 8% Domestic Total 7,943 7,399

• 7%

International Total 1,531 1,552 1% Bank Total 9,474 8,951

• 6%

International Total - USD in '000 9,508 11,189 15% Cost to Income Ratio 43.0% 45.6%

• 2.5%

Description Rs in mln Var %

UBL Performance Overview – Q1 2020

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Income Statement - Domestic

Q1'20 Q1'19 Interest Earned 40.1 27.7 45% Interest Expensed (24.8) (15.2)

• 63%

Net Interest Income 15.2 12.4 23% Non Interest Income 3.8 4.1

• 6%

Total Revenue 19.1 16.5 16%

• Admin. Expenses

(7.9) (7.4)

• 7%

Total Expenses (8.4) (7.6)

• 11%

Pre Prov. Operating Profit 10.7 8.9 20% Provision Exp./Other writeoffs 0.1 (0.1) 178% Profit Before Tax 10.8 8.8 22% Rs in bln Description Var %

UBL Performance Overview – Q1 2020

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Income Statement - Consolidated

Q1'20 Q1'19 Interest Earned 44.4 32.1 38.1% Interest Expensed (26.6) (17.2)

• 54.8%

Net Interest Income 17.8 15.0 18.9% Non Interest Income 4.9 5.8

• 14.3%

Total Revenue 22.7 20.7 9.7%

• Admin. Expenses

(10.3) (9.8)

• 5.7%

Total Expenses (10.7) (9.9)

• 7.7%

Pre Prov. Operating Profit 12.0 10.8 11.4% Provision Exp./Other writeoffs (3.7) (0.9)

• 319.2%

Profit Before Tax 8.3 9.9

• 16.0%

Profit After Tax - Continued operations 4.9 4.8 1.4% Loss from discontinued operations - net of tax (0.0) 0.8

• 100.8%

Profit After Tax 4.9 4.1 21.2% Effective Tax Rate 40.9% 51.1% 10.1% Rs in bln Description Var %

UBL Performance Overview – Q1 2020

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Balance Sheet - Consolidated

Mar'20 Dec'19 Advances 683 695

• 1.8%

Investments 1,010 875 15.4% Lendings to Financial Institutions 21 22

• 3.4%

Assets held for sale 2.9% Others 364 432

• 15.7%

Total Assets 2,078 2,024 2.7% Deposits 1,592 1,558 2.2% Borrowings 197 170 15.5% Subordinated Debts 10 10 0.0% Liabilities held for sale

• 81.3%

Others 93 94

• 1.5%

Total Liabilities 1,892 1,833 3.2% Net Assets 186 191

• 2.5%

Share Capital 12 12 0.0% Reserves 70 67 5.6% Unappropriated Profit 76 77

• 1.2%

Surplus on revaluation of Assets 20 27

• 25.4%

Total Equity attributable to equity holders of Bank 179 184

• 2.3%

Non-controlling Interest (NCI) 7 7

• 9.5%

Total Equity + NCI 186 191

• 2.5%

Rs in bln Description Var %

UBL Performance Overview – Q1 2020

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Our Investment, focus and results in the last 6 years

UBL Performance Overview – Q1 2020

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Balance Sheet Review

• Rs. in mlns

2019 2018 2017 2016 2015 2014 Assets Cash and balances with treasury and other banks 256,591 206,813 177,099 146,428 128,870 87,573 Lending to financial institutions 20,247 33,942 10,868 25,711 24,095 21,872 Investments- gross 849,441 792,857 1,095,555 808,959 721,651 499,060 Advances - gross 702,951 776,272 670,056 559,093 497,032 479,998 Operating fixed assets 54,348 47,556 46,205 35,582 31,630 30,303 Other assets 85,841 98,977 79,617 67,812 41,124 40,067 Total assets - gross 1,969,419 1,956,417 2,079,400 1,643,585 1,444,402 1,158,874 Provisions against non-performing advances (66,732) (60,336) (42,697) (40,525) (41,618) (45,734) Provisions against diminution in value of investment (8,992) (6,482) (3,769) (2,428) (2,133) (1,726) Total assets - net of provision 1,893,695 1,889,599 2,032,934 1,600,632 1,400,651 1,111,414 Liabilities & Equity Deposits & other Accounts 1,467,063 1,366,060 1,272,788 1,167,124 1,051,235 895,083 Borrowing from financial institutions 154,484 268,124 512,650 201,550 163,132 53,065 Sub-ordinated loans 10,000 9,000

• Bills payable

22,927 27,249 29,848 24,520 13,392 9,554 Other liabilities 70,152 67,896 58,341 55,651 30,757 28,196 Total Liabilities 1,724,626 1,738,329 1,873,627 1,448,845 1,258,516 985,898 Net Assets / Liabilities 169,070 151,270 159,307 151,787 142,135 125,516 Share capital 12,242 12,242 12,242 12,242 12,242 12,242 Reserves 59,320 54,439 43,847 40,455 38,402 34,130 Un - appropriated profit / (loss) 71,670 68,002 70,912 64,246 55,223 48,217 Equity - Tier I 143,232 134,683 127,001 116,943 105,867 94,589 Surplus on revaluation of assets 25,837 16,587 32,306 34,844 36,268 30,927 Equity 169,069 151,270 159,307 151,787 142,135 125,516 Total liabilities & equity 1,893,695 1,889,599 2,032,934 1,600,632 1,400,651 1,111,414

UBL Performance Overview – Q1 2020

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Profit & Loss

• Rs. in mlns

2019 2018 2017 2016 2015 2014

Markup / return / interest earned 153,676 113,198 107,206 98,219 94,353 82,735 Markup / return / interest expensed (91,902) (56,964) (50,781) (41,177) (38,511) (37,769) Net Markup / Interest income 61,774 56,234 56,425 57,042 55,842 44,967 Fee, commission, brokerage and exchange income 18,219 17,396 14,496 14,020 14,474 14,418 Capital gain & dividend income 1,541 6,709 6,762 8,629 6,442 3,806 Other income 1,916 967 904 960 1,070 1,071 Non interest income 21,676 25,072 22,162 23,609 21,986 19,296 Gross income 83,451 81,306 78,587 80,651 77,828 64,263 Administrative expenses and other charges (40,860) (43,222) (36,109) (32,809) (31,776) (29,597) Profit before provisions 42,590 38,084 42,478 47,842 46,052 34,666 Donations (129) (203) (110) (87) (167) (112) Provisions (8,220) (12,914) (2,450) (1,740) (3,710) (1,156) Profit before taxation 34,242 24,967 39,918 46,015 42,175 33,398 Taxation (15,108) (9,741) (14,739) (18,285) (16,448) (11,469) Profit after taxation 19,134 15,226 25,179 27,730 25,727 21,930

UBL Performance Overview – Q1 2020

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Key Financial Ratios & Share Information

Description 2019 2018 2017 2016 2015 2014 Key Financial Ratios

Return on equity (RoE) 13.8% 11.6% 20.6% 24.9% 25.7% 23.9% Return on assets (RoA) 1.0% 0.8% 1.4% 1.8% 2.0% 2.1% Profit before tax ratio 41.0% 30.7% 50.8% 57.1% 54.2% 52.0% Advances to deposits ratio (ADR) - gross 44.3% 53.2% 49.8% 45.6% 45.2% 51.3% Cost to revenue ratio 48.2% 47.8% 45.0% 39.6% 39.7% 45.2% Growth in gross income 2.7% 3.5%

• 2.6%

3.6% 21.1% 14.7% Intermediation cost ratio 2.9% 3.3% 3.0% 3.0% 3.3% 3.4% Asset Quality (NPL ratio) 10.9% 8.8% 7.8% 8.0% 9.4% 11.2% Net infection ratio 1.6% 1.1% 1.5% 0.8% 1.1% 1.9% Capital adequacy ratio (CAR) 18.9% 17.7% 15.4% 15.1% 14.6% 13.9%

Share Information - Rs

Cash dividend per share 12.00 11.00 13.00 13.00 13.00 11.50 Dividend yield (based on cash dividend) 9.8% 5.9% 5.4% 8.4% 7.4% 8.7% Dividend payout ratio (total payout) 76.8% 88.4% 63.2% 57.4% 61.9% 64.2% Earning per share (EPS) 15.63 12.44 20.57 22.65 21.02 17.91 Price earnings ratio (PE) 10.52 9.86 9.14 10.55 7.37 9.86 Market value per share - at the end of the year 164.50 122.64 187.97 238.90 154.95 176.71 Market value per share - highest during the year 173.53 219.70 283.00 243.72 186.75 198.39

UBL Performance Overview – Q1 2020

29

Quarterly Trends

UBL Performance Overview – Q1 2020

30

Profit before tax (PBT) Rs in bln

7.8 8.0 8.3 9.3 10.9 11.2 10.2 9.9 11.3 13.5 10.8 10.4 11.2 11.8 8.4 8.8 4.1 6.5 5.9 8.5 9.2 8.8 8.3 7.9 8.4

Q1'14 Q2'14Q3'14 Q4'14 Q1'15 Q2'15 Q3'15Q4'15Q1'16 Q2'16 Q3'16 Q4'16 Q1'17Q2'17 Q3'17 Q4'17 Q1'18 Q2'18Q3'18Q4'18 Q1'19 Q2'19 Q3'19 Q4'19Q1'20

+8%

• 4%
• 6%
• 4%

+6%

UBL Performance Overview – Q1 2020

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Profit after tax (PAT) Rs in bln

5.2 5.3 5.3 6.1 7.1 5.6 6.5 6.5 7.3 7.0 7.0 6.4 7.3 6.0 5.9 6.3 2.6 3.6 3.5 5.5 4.2 5.4 4.9 4.7 5.1

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 Q2'19 Q3'19 Q4'19 Q1'20

• 24%

+29%

• 10%
• 3%

+7%

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Deposits Rs in bln

847 858 866 895 945 992 994 1051 1070 1142 11471,0511,070 1,1421,1471,2731,301 1,2561,3351,3661,344 1,4481,419 1,4671493

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 Q2'19 Q3'19 Q4'19 Q1'20

• 2%

+8%

• 2%

+3% +2%

UBL Performance Overview – Q1 2020

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Net Advances Rs in bln

377 408 417 434 420 430 459 455 447 496509 519 498 565 567 627 624 675 673 716 636 642 626 636 623

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 Q2'19 Q3'19 Q4'19 Q1'20

• 11%

+2% +1%

• 3%
• 2%

UBL Performance Overview – Q1 2020

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Gross Revenue Rs in bln

14.9 16.3 15.5 17.6 19.3 20.3 18.6 19.5 21.9 21.3 18.1 19.2 20.0 20.4 17.9 20.3 21.2 21.2 19.0 20.0 19.6 22.4 20.6 20.9 22.0

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 Q2'19 Q3'19 Q4'19 Q1'20

• 2%

+14%

• 8%

+1% +5%

UBL Performance Overview – Q1 2020

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Net Interest Income (NII) Rs in bln

9.8 11.3 11.0 12.8 13.1 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 15.3 15.4 16.4 17.3

Q1'14Q2'14Q3'14Q4'14Q1'15Q2'15Q3'15Q4'15Q1'16Q2'16Q3'16Q4'16Q1'17Q2'17Q3'17Q4'17Q1'18Q2'18Q3'18Q4'18Q1'19Q2'19Q3'19Q4'19Q1'20

+4% +2% +1% +6% +6%

UBL Performance Overview – Q1 2020

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Non Funded Income (NFI) Rs in bln

5.1 5.0 4.5 4.8 6.2 6.2 4.8 4.8 8.4 5.6 4.5 5.2 6.3 6.1 3.8 6.0 7.3 7.0 5.1 5.7 5.0 7.2 5.2 4.5 4.7

Q1'14 Q2'14 Q3'14Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17Q3'17 Q4'17 Q1'18 Q2'18 Q3'18Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

• 12%

+44%

• 28%
• 14%

+5%

UBL Performance Overview – Q1 2020

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Provisions Rs in bln

0.2 0.9

• 0.1

0.2 0.8 1.3 0.7 0.9 2.0

• 0.3 -0.3

0.3 0.1

• 0.5

0.6 2.1 1.9 2.6 2.9 5.5 1.3 3.2 2.1 1.7 3.7

Q1'14Q2'14Q3'14Q4'14Q1'15Q2'15Q3'15Q4'15Q1'16Q2'16Q3'16Q4'16Q1'17Q2'17Q3'17Q4'17Q1'18Q2'18Q3'18Q4'18Q1'19Q2'19Q3'19Q4'19Q1'20

• 76%

+140%

• 17%
• 34%

+114%

UBL Performance Overview – Q1 2020

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Administrative Expenses Rs in bln

6.9 7.2 7.1 8.0 7.3 7.6 7.4 8.6 8.4 7.8 7.4 8.2 8.5 8.8 8.8 9.2 8.7 9.9 9.6 10.7 9.0 10.3 10.0 11.0 9.5

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 Q2'19 Q3'19 Q4'19 Q1'20

• 16%

+15%

• 2%

+9%

• 14%

UBL Performance Overview – Q1 2020

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The information contained herein reflects our latest business statement as at March 31, 2020. Except the historical information contained herein, statements in this Release which contain words or phrases such as ‘will’, ‘would’, ‘indicating’ expected to’ etc., and similar expressions or variations of such expressions may constitute ‘forward-looking statements’. These forward-looking statements involve a number

• f

risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, future levels of non-performing loans, our growth and expansion in business, the impact of any acquisitions, the adequacy of our allowance for credit losses, technological, implementation and changes, the actual growth in demand for banking products and services, investment income, cash flow projections, our exposure to market risks as well as other risks detailed in the reports filed by us with various regulatory authorities as per applicable laws and regulations. UBL undertakes no

• bligations to update forward-looking statements to reflect event or circumstances

after the date thereof. Important Information

UBL Performance Overview – Q1 2020

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Thank You