United Bank Limited United Bank Limited Performance Review - - PowerPoint PPT Presentation

SLIDE 1

United Bank Limited United Bank Limited

Performance Review Performance Review (Consolidated)

(Consolidated)

1H 2009 1H 2009 July 29, 2009

SLIDE 2

Key Highlights Key Highlights

• PAT declines 21% yoy at Rs. 4.6 B
• Net Interest income up 19%;

– Increase in NII mainly due to higher Kibor rates (Avg Kibor Jan-Jun 08: 11%; Jan-Jun 09: 14%) – Increase in average advances by 13% – Net interest margins (NIMs) remained stable at 6.3% (June 08: 6.2%)

• Non-interest income at Rs. 6.5 billion was 2% down

– Fee income down due to reduced investment and acquisition activity in the corporate sector – Lower fees from distribution of retail financial products – Commissions on consumer loans declined by 30% owing to net attrition in the lending portfolio – Exchange income down by 26% due to lower volatility in the Pak rupee

• Provision charge of Rs 6.6 B,

– 50% charge from corporate; 24% from consumer; 11% each from commercial & international – Includes impairment loss of Rs. 484M

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SLIDE 3

Key Highlights Key Highlights

• Bank expenses up by 11%;

–

• Dom. exp.up by 10% while inflation at 18% yoy; Intl rupee exp. + 23% ; Intl dollar exp. +1%

– Cost/average asset ratio for Jun’09 at 2.8% compared to 5.6% for Dec’08

• Advances maintained at Rs. 379 B; Domestic +2% ; Intl -8% ; Intl $ -11%

– Reflecting reduction in systemic credit offtake and Bank’s conscious strategy of risk containment

• Deposits up by 6% to Rs 521 B; Domestic +4% ; Intl +10% ; Intl $ +7%

– CASA ratio increased to 62% at Jun’09 from 59% at Dec’08 – Increase of Rs. 23 bn in current deposits

• Total capital adequacy* of 11.8% and Tier-1 CAR of 8.0% (Basel II)

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3 * Bank only

SLIDE 4

Summary Summary

Jun 2009 Dec 2008 Change Assets (PKR bn) 654 620 +5% Advances (PKR bn) 379 378 +0% Market Share-Adv-DOM 9.5% 9.2% Deposits (PKR bn) 521 492 +6% Market Share-Deposits-DOM 9.5% 9.6% Online branches 920 894 +26 ATMs 382 354 +28 ROAA 1.4% 1.4% ROAE 17% 17% Credit Rating (JCR-VIS) AA+/A-1+ AA+/A-1+

re-affirmed

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SLIDE 5

Share Info Share Info

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Jun 2009 Dec 2008 EPS (Rs/share-annual.) 8.3 7.5 BV/share (Rs/share) 52.3 44.4 Price* - (Rs /share) 44.7 39.3 P/E 5.4x 5.2x P/BV 0.9x 0.9x # of shares 1,113M 1,113M

* Jun-09 Price dat ed July 17, 2009 * Dec-08 Price dated March 04, 2009 adjust ed f or bonus shares

SLIDE 6

Income Statement Income Statement (PKR bn)

(PKR bn)

QTD Jun'09 QTD Mar'09 Var % 6 month Jun'09 6 month Jun'08 Var % Net Interest Income 7.88 8.18

• 4%

16.06 13.55 +19% Non Interest Income 4.00 2.47 +62% 6.47 6.58

• 2%

Operating Revenue 11.88 10.65 +12% 22.53 20.12 +12% Operating Expense (4.46) (4.20)

• 6%

(8.66) (7.80)

• 11%

Pre-Provision Oper. Profit 7.42 6.45 +15% 13.87 12.33 +13% Provision Exp./Other writeoffs (4.41) (2.18)

• 102%

(6.60) (2.73)

• 141%

WWF / SBP Penalty (0.09) (0.08)

• 4%

(0.17) (0.38) +56% Profit Before Tax 2.92 4.18

• 30%

7.11 9.21

• 23%

Profit After Tax 1.83 2.76

• 34%

4.60 5.86

• 21%

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SLIDE 7

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Balance Sheet Balance Sheet (PKR bn)

(PKR bn)

Jun'09 Dec'08 % Change

Mix- Jun'09 Mix- Dec'08

Cash & bank balances 80.4 64.7 +24% 12% 10% Investments 127.6 115.0 +11% 20% 19% Advances 378.8 378.3 +0% 58% 61% Fixed assets 20.2 19.9 +2% 3% 3% Total Assets 654.1 620.2 +5% 100% 100% Deposits 521.2 492.3 +6% 87% 86% Borrowings 42.0 44.7

• 6%

7% 8% Total Liabilities 595.9 570.8 +4% 100% 100% Shareholder equity 52.0 47.1 +10% 89% 95% Surpl/(Def.) on reval.of assets 6.2 2.3 +174% 11% 5% Total Equity 58.3 49.4 +18% 100% 100%

* * * * * * * * * * * * * * * * * * * * * * * *

SLIDE 8

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Financial Ratios Financial Ratios

QTD Jun'09 QTD Mar'09 YTD Jun'09 YTD Jun'08 FY Dec'08 Loan/Deposits 73% 75% 73% 71% 77% ROAE 13% 21% 17% 24% 17% ROAA 1.1% 1.8% 1.4% 2.1% 1.4% Cost/Income Ratio 60% 50% 54% 44% 52% Gross NPLs/Gross Advances 8.8% 8.2% 8.8% 6.5% 7.3% Net NPLs/Gross Advances 2.9% 3.0% 2.9% 1.8% 2.6% Coverage Ratio 70% 67% 70% 78% 68% CAR (Standalone-Basel II) 11.8% 11.5% 11.8% 12.7% 10.6% Tier 1 CAR (Standalone-Basel II) 8.0% 7.8% 8.0% 8.1% 8.0%

SLIDE 9

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Deposit Structure Deposit Structure

Deposit Mix Deposit Mix (YTD Jun 09)

(YTD Jun 09) -

• Bank (Parent Company)

Bank (Parent Company) Cost of Deposits Cost of Deposits Total Deposits = PKR 509 bn Cost of Deposits = 5.4% CASA = 62%

Fixed Deposits – PKR 182bn Contribution 36% Cost 8.7% Other Deposits – PKR 12bn Contribution 2% Cost 0.0% Current Deposits–PKR 150bn Contribution 30% Cost 0% Saving Deposits – PKR 164bn Contribution 32% Cost 5.2% QTD Jun'09 QTD Mar'09

Period end Rs B Avg.Yield /Cost Period end Rs B Avg.Yield /Cost

Saving deposits 164 5.2% 155 5.7% Current deposits 150 0.0% 124 0.0% Term deposits 182 8.7% 180 9.5% Other deposits 12 0.0% 11 0.6% Total deposits 509 5.0% 469 5.7% CASA 62% 59%

Domestic deposits

395 5.5% 365 6.2%

International deposits

114 3.4% 104 3.7%

• Intl. deposits -US$ M

1,397 3.4% 1,289 3.7%

Domestic CASA

71% 67%

International CASA

29% 27%

SLIDE 10

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Advances by Business Advances by Business

131 49 47 64 17 166 61 36 97 17 154 86 30 89 19

• 20

40 60 80 100 120 140 160 180

Corporate Bank Commercial Bank Consumer Bank Overseas Others (incl subsidiaries)

Rs B Advances by Business

2007 2008 Jun-09

Net Advances

Jun'09 Dec'08 % Change Mix 09 Yield 09 Yield 08 Corporate Bank 154.4 165.9

• 7%

55% 14.5% 12.5% Commercial Bank 86.2 61.4 +40% 31% 16.0% 14.4% Consumer Bank 30.0 36.4

• 18%

11% 18.8% 16.5% Others 8.5 10.2

• 17%

3% 10.4% 12.0% Domestic 279.1 273.9 +2% 100% 15.3% 13.5% International 89.3 97.2

• 8%

8.2% 7.5% Bank 368.4 371.1

• 1%

13.5% 12.1% Subsidiaries 10.4 7.2 +46% Bank-Consolidated 378.8 378.3 +0%

• International (US$ M)

1,096 1,229

• 11%

SLIDE 11

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11

Consumer Advances by Product Consumer Advances by Product

23 6 6 5 5 3 18 4 4 4 4 2 14 4 4 3 4 1

18% 18% 21% 20% 18% 22% 0% 5% 10% 15% 20% 25% 4 9 13 17 22 26 Drive Address Credit Card Cashline Businessline Money

2007 2008 Jun-09 Yield Jun 09

Jun'09 Dec'08 % Change Mix 09 Yield 09 Yield 08 Drive 14.3 17.7

• 19%

48% 17.9% 13.6% Address 3.7 4.4

• 15%

12% 17.5% 13.9% Credit Card 3.7 4.3

• 15%

12% 21.4% 23.1% Cashline 3.4 4.1

• 17%

11% 20.4% 22.7% Businessline 3.6 4.0

• 9%

12% 18.5% 16.1% Money 1.2 1.8

• 31%

4% 22.0% 20.7% Total 30.0 36.4

• 18%

100% 18.8% 16.5%

SLIDE 12

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12

QTD QTD – – Net Interest Income (Bank Level) Net Interest Income (Bank Level)

Bank

QTD June 2009 QTD March 2009

Rs B

PE AVG IE Avg.Yiel d /Cost PE AVG IE Avg.Yiel d /Cost

Interest Earning Assets Performing Advances

356 349 11.4 13.1% 349 359 12.4 14.0%

Corporate

149 149 5.3 14.3% 156 160 5.9 15.0%

Commercial

84 74 2.8 15.2% 62 63 2.6 17.1%

Consumer

28 30 1.4 18.7% 32 35 1.7 19.6%

International

89 89 1.8 8.2% 94 95 1.9 8.2%

Others

5 7 0.1 6.0% 6 7 0.2 15.0%

Investments (earning)

120 130 3.6 11.1% 138 115 3.3 11.6%

Lending To Financial Institution

28 14 0.4 10.5% 14 19 0.5 10.4%

Others

22 27 0.1 1.6% 25 21 0.1 2.0%

Total int. earning assets (a)

526 520 15.5 12.0% 526 515 16.3 12.8%

Non earning assets

106 86

• 0.0%

97 70

• 0.0%

Total Assets (A)

633 606 15.5 10.3% 622 586 16.3 11.3%

Interest bearing liabilities Total deposits

509 470 (5.9) 5.0% 469 468 (6.6) 5.7%

Core Deposits

427 382 (3.2) 3.4% 380 367 (3.2) 3.5%

Unisaver Plus

35 35 (0.9) 9.7% 34 40 (1.1) 11.3%

UTTIP

47 53 (1.8) 13.5% 55 62 (2.3) 15.0%

Subordinated Debts - TFC

12 12 (0.4) 12.7% 12 12 (0.4) 13.1%

Borrowings

41 55 (1.5) 10.8% 69 42 (1.3) 12.4%

Total interest bearing liab (b)

561 537 (7.7) 5.8% 550 522 (8.2) 6.4%

Non earning liabilities & equity

71 69

• 0.0%

72 63

• 0.0%

Total Liabilities+Equity (B)

633 606 (7.7) 5.1% 622 586 (8.2) 5.7%

Net Interest Margin (a-b)

• 7.8

6.2%

• 8.1

6.4%

Spread (A-B)

• 5.1%
• 5.6%

SLIDE 13

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13

Spread Analysis Spread Analysis-

• Bank Level

Bank Level

Bank

YTD June 2009 YTD June 2008

Rs B

PE AVG IE Avg.Yiel d /Cost PE AVG IE Avg.Yiel d /Cost

Interest Earning Assets Performing Advances

356 354 23.8 13.6% 322 316 17.6 11.2%

Corporate

149 155 11.2 14.6% 142 143 7.9 11.1%

Commercial

84 68 5.5 16.1% 57 53 3.3 12.7%

Consumer

28 33 3.1 18.8% 42 44 3.5 16.2%

International

89 92 3.8 8.2% 72 67 2.5 7.4%

Others

5 6 0.3 11.4% 9 9 0.4 7.9%

Investments (earning)

120 123 6.9 11.3% 100 94 4.4 9.3%

Lending To Financial Institution

28 17 0.9 10.5% 17 23 1.0 8.4%

Others

22 24 0.2 1.8% 27 14 0.2 3.1%

Total int. earning assets (a)

526 518 31.8 12.4% 466 448 23.1 10.4%

Non earning assets

106 78

• 0.0%

110 83

• 0.0%

Total Assets (A)

633 596 31.8 10.8% 576 530 23.1 8.8%

Interest bearing liabilities Total deposits

509 469 (12.7) 5.4% 466 416 (7.3) 3.5%

Core Deposits

427 375 (6.6) 3.6% 386 336 (3.7) 2.2%

Unisaver Plus

35 37 (2.0) 10.5% 41 40 (1.7) 8.2%

UTTIP

47 57 (4.1) 14.3% 38 40 (1.9) 9.5%

Subordinated Debts - TFC

12 12 (0.8) 12.9% 12 9 (0.6) 13.3%

Borrowings

41 49 (2.6) 10.6% 34 46 (2.1) 9.2%

Total interest bearing liab (b)

561 530 (16.0) 6.1% 511 471 (10.0) 4.3%

Non earning liabilities & equity

71 66

• 0.0%

65 59 0.0%

Total Liabilities+Equity (B)

633 596 (16.0) 5.4% 576 530 (10.0) 3.8%

Net Interest Margin (a-b)

• 15.8

6.3%

• 13.2

6.2%

Spread (A-B)

• 5.4%
• 5.0%

SLIDE 14

Concentration of Advances

Others, 1 3.8% Textile, 1 5.6% Individuals, 1 9.8% Construction, 5.7% Production and transmission

• f energy, 1

0.2% Wholesale traders, 2.0% Cement, 1 .8% Sugar, 1 .6% Agribusiness, 1 5.1 % Contractors, 1 .4% Food industries, 2.4% Airline/ Aviation, 1 .8% Staff loans , 1 .2% Financial, 1 .3% Telecom, 2.1 % Automobile and transportation equipment, 1 .7% Chemical and Pharmaceuticals, 1 .3% Fertilizer , 1 .5%

SLIDE 15

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Non Interest Income (PKR mm) Non Interest Income (PKR mm)

QTD Jun'09 QTD Mar'09 % Change 6 month Jun 09 6 month Jun 08 % Change

Full year Dec'08

Commission on consumer loan 278 273 +2% 551 782

• 30%

1,686 Minimum balance charges 161 121 +33% 282 273 +3% 561 Commission on trade 351 329 +7% 680 650 +5% 1,385 Commission on remittances/uniremote 199 184 +8% 383 263 +45% 591 Commission on utility bills 37 38

• 5%

75 98

• 23%

342 Commission on ATM/debit card 120 42 +186% 161 87 +86% 167 Corp.service charges / facility fee (Intl) 64 3 +1789% 68 91

• 26%

241 Corporate finance fee 93 57 +63% 151 323

• 53%

494 Other commission 323 241 +34% 564 484 +17% 839 Sub total - fee, commission income 1,626 1,289 +26% 2,915 3,051

• 4%

6,305 Capital gain / Dividend Income 203 143 +42% 345 554

• 38%

769 Exchange income 206 319

• 35%

525 728

• 28%

1,461 Gain / loss on Derivatives 1,370 82 +100% 1,452 963 +51% 575 Recoveries from client 123 106 +16% 228 252

• 9%

467 Ijarah rental income 64 63 +1% 126 99 +27% 214 Other income (unclaimed Dep. & VISA) 123 66 +85% 190 387

• 51%

610 Total non funded income 3,713 2,067 +80% 5,781 6,034

• 4%

10,401 Subsidiaries 254 225 +13% 479 572

• 16%

520 Share of (loss) / income of associates 32 180

• 82%

212 (27) +890% (128) Total non funded income-Consol. 4,000 2,472 +62% 6,472 6,579

• 2%

10,792

SLIDE 16

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16

Operating Expenses Operating Expenses (1 of 2)

(1 of 2)

• Rs. M

QTD Jun'09 QTD Mar'09 Var % 6 month Jun 09 6 month Jun 08 Var %

Full year Dec'08

Personnel cost 1,904 1,879

• 1%

3,783 3,307

• 14%

6,754 Early Retirement Scheme 52 34

• 53%

85 109 +21% 271 Premises cost 650 587

• 11%

1,236 1,088

• 14%

2,224 Outsourced serv.chgs incl. sales comm 318 343 +7% 660 746 +11% 1,643 Advertisement and publicity 34 42 +20% 76 128 +41% 388 Communications / courier charges 186 169

• 10%

355 298

• 19%

667 Depreciation 263 264 +0% 527 408

• 29%

880 Legal and professional charges 50 47

• 7%

97 86

• 13%

243 Banking service charge 135 116

• 16%

250 193

• 30%

443 Stationery and printing 83 66

• 25%

149 129

• 16%

289 Traveling 41 36

• 14%

78 67

• 16%

182 Repairs and maintenance 67 38

• 75%

105 65

• 62%

172

Cont Cont’ ’d d

SLIDE 17

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17

Operating Expenses Operating Expenses (2 of 2)

(2 of 2)

• Rs. M

QTD Jun'09 QTD Mar'09 Var % 6 month Jun 09 6 month Jun 08 Var %

Full year Dec'08

Insurance expense 33 12

• 173%

45 46 +4% 48 Office running expenses 37 33

• 11%

69 51

• 37%

115 Entertainment 23 21

• 9%

45 42

• 7%

88 Cartage, freight and conveyance 18 17

• 8%

35 32

• 11%

72 Sub-Debt cost 2 2 +0% 4 23 +82% 26

• Comm. & brokerage to dealers

16 7

• 115%

23 78 +70% 517 Cash Transportation / Sorting 109 94

• 15%

203 99

• 104%

228 Other expenses 132 110

• 20%

242 237

• 2%

563 Total Operating Cost - Bank 4,150 3,918

• 6%

8,068 7,229

• 12%

15,813 Subsidiaries 309 282

• 10%

591 566

• 4%

867 Total Operating Cost - Consolidated 4,459 4,199

• 6%

8,659 7,796

• 11%

16,680

SLIDE 18

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18

E E-

• Banking

Banking

E-Banking

Jun-09 Dec-08

% Change

Dec-07 # of ATMs

382 354 +8% 313

# of Transactions (M)

13.7 11.7 +17% 9.5

Average transactions per day

37k 32k +16% 26k

Total transaction amount (Rs B)

77 63 +21% 48

Average transaction size (Rs 000)

5.6 5.4 +3% 5.0

Average monthly trans.per ATM (Rs M) 17

15 +12% 13

Internet Banking Users

60,421 52,766 +15% 37,408

Total # of transactions (000)

375 253 +48% 148

Total transaction amount (Rs M)

8,230 8,746

• 6%

2,089

Average transaction size (Rs 000)

22 35

• 37%

14

Click N Remit Users

24,696 23,255 +6% 19,950

Total # of transactions (000)

70 78

• 10%

79

Total transaction amount (US$ M)

54 65

• 17%

70

Average transaction size (US$)

771 834

• 8%

885

Home Remittances Total # of transactions (000)

722 636 +14% 595

Total transaction amount (US$ M)

986 823 +20% 709

Average transaction size (US$)

1,366 1,295 +6% 1,192

* annualized Jun 09

SLIDE 19

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Financial Ratios Financial Ratios (1 of 3)

(1 of 3)

Full Year

QTD A nnua lize d

2006 2007 2008 Mar-09 Jun-09 Mar-09 Jun-09

Net Interest Yield

1

5.4% 5.0% 4.9% 5.2% 5.0% 5.2% 4.9% Net Interest Margin

2

6.4% 6.1% 6.1% 6.4% 6.3% 6.4% 6.2% Non Interest Yield

3

1.8% 2.0% 1.8% 1.6% 2.1% 1.6% 2.6% Operating Exp. / Assets 2.9% 2.9% 2.9% 2.7% 2.8% 2.7% 2.8% Cost Income Ratio 44.5% 50.8% 52.3% 49.2% 53.7% 49.2% 58.7% Loan Loss / Assets 0.6% 1.3% 1.3% 1.4% 2.1% 1.4% 2.8% Loan Loss / RWA

4

0.8% 1.8% 1.8% 1.8% 2.8% 1.8% 3.5% Effective Tax Rate 33.3% 33.0% 39.9% 33.9% 35.3% 34% 37% Pre-Provision ROA

5

2.8% 2.8% 2.2% 2.7% 2.8% 2.7% 2.9% ROA 2.4% 1.9% 1.4% 1.8% 1.4% 1.8% 1.1% Return on RWA 3.5% 2.6% 1.9% 2.2% 1.9% 2.2% 1.4% Pre-Provision ROE

6

38.9% 33.4% 26.9% 32.4% 33.2% 32.4% 32.7% ROE 33.7% 22.8% 17.4% 21.2% 17.1% 21.2% 12.9%

DuPont

Formulas

• 1. Net interest income / average assets
• 4. Risk weighted assets
• 2. Net interest income / average earning assets
• 5. Return on avg. assets (before net provisions)
• 3. Non interest income / average assets
• 6. Return on average equity (before net provisions)

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Financial Ratios Financial Ratios (2 of 3)

(2 of 3)

Full Year

QTD (A nnu.)

2006 2007 2008

Mar-09 Jun-09 Mar-09 Jun-09

Gross NPLs / Gross Loan 6.2% 6.9% 7.3% 8.2% 8.8% 8.2% 8.8% Net NPLs / Gross Loan 1.6% 1.9% 2.6% 3.0% 2.9% 3.0% 2.9% Coverage Ratio 82.6% 77.9% 68.5% 67.0% 70.5% 67.0% 70.5%

• Prov. held / Gross loan

4.6% 4.9% 4.7% 5.2% 5.9% 5.2% 5.9%

• Prov. Exp. / Gross loan

0.8% 2.0% 1.9% 2.3% 3.3% 2.3% 4.4% Full Year

QTD (A nnu.)

2006 2007 2008

Mar-09 Jun-09 Mar-09 Jun-09

Growth in Loan Book 21.2% 21.0% 22.7%

• 2.5%

0.1%

• 2.5%

2.8% Growth in Deposits 16.0% 19.9% 19.4%

• 2.1%

5.9%

• 2.1%

8.2% Operating Revenue 43.8% 21.3% 14.0% 8.0% 15.2% 23.1% 13.4% Operating Expense 38.3% 22.5% 19.4% 0.6% 3.7%

• 4.1%

6.2% Pre-provision Oper.Profit 47.8% 20.6% 8.9% 15.0% 25.5% 56.0% 18.3% Provision exp./Other prov. 39.3% 170.0% 23.5% 8.1% 67.2%

• 45.5% 109.6%

Profit After Tax 56.7%

• 4.4%
• 8.6%

30.9% 8.9% 554.8%

• 33.7%

Asset Quality Growth

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Financial Ratios Financial Ratios (3 of 3)

(3 of 3)

Yearly

QTD (A nnu.)

2006 2007 2008

Mar-09 Jun-09 Mar-09 Jun-09

Capital Adequacy Ratio 12.2% 12.4% 10.6% 11.4% 11.8% 11.35% 11.75% Tier-I CAR 8.9% 8.8% 7.3% 7.7% 8.0% 7.72% 7.99% Loan / Deposits 74.1% 74.8% 76.8% 76.5% 72.7% 76.5% 72.7% Loan / Assets 58.4% 56.4% 61.0% 57.4% 57.9% 57.4% 57.9% RWA / Assets 72.6% 73.1% 76.6% 83.2% 73.7% 83.2% 73.7% Average Headcount

2

9,658 9,702 9,192 8,855 8,773 8,855 8,777 Personnel cost / Headcount (000) Yield on Earning Assets

3

10.0% 10.3% 10.9% 12.7% 12.3% 12.7% 12.1% Cost of Funds

4

3.4% 4.0% 4.7% 6.0% 5.7% 6.0% 5.5% Yield on Performing Adv 11.2% 10.9% 12.2% 14.1% 13.5% 14.1% 13.0% Cost of Deposits 3.1% 3.6% 4.1% 5.6% 5.0% 5.6% 4.7% Formulas

• 2. Permanent Staff
• 3. Earning assets incl bal.with other banks, lending to F.I., investments & perf adv
• 4. Funds includes deposits, borrowings & sub-ordinated loans

867.8 736.4 848.6 848.6 862.4

Other Metrics

627.7 679.4

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22

Quarterly Trend Analysis Quarterly Trend Analysis

Bank Level Bank Level

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23

Profit Before Tax Profit Before Tax

4.4 2.1 1.9 4.4 4.7 4.9 0.1 3.9 2.8

• 1.2

2.4 3.6 4.8 6.0

Jun 07 Sep 07 Dec 07 Mar 08 Jun 08 Sep 08 Dec-08 Mar 09 Jun-09

Rs B

Profit before Tax

Provision–PR amendment FSV / others ( Rs 1.975M) Provision–FSV ( Rs 1,829M) ERS (Rs 307M) Before FSV(2007, ERS) Impairment loss (Rs.2.2B)

SLIDE 24

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24

Profit after Tax Profit after Tax

2.6 1.5 1.3 2.9 2.7 3.2

• 0.6

2.5 1.8

(1.0)

• 1.0

2.0 3.0 4.0

Jun 07 Sep 07 Dec 07 Mar 08 Jun 08 Sep 08 Dec-08 Mar 09 Jun-09

Rs B

Profit After Tax

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25

Deposits Deposits

403 381 402 408 466 455 484 469 509

345 386 427 468 509 550

Jun 07 Sep 07 Dec 07 Mar 08 Jun 08 Sep 08 Dec-08 Mar 09 Jun-09

Rs B

Saving deposits

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26

Net Advances Net Advances

2 8 0 2 8 0 2 9 9 3 2 0 3 2 9 3 6 5 3 71 3 6 0 3 6 8

275 300 325 350 375 400

Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09

Rs B

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27

Net Interest Income Net Interest Income

6.1 6.2 6.0 6.4 6.8 7.6 7.3 8.1 7.8

5.5 6.1 6.7 7.3 7.9 8.5

Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09

Rs B

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28

Net Provision * Net Provision *

0 .4 2 .9 2 .8 1.2 1.3 1.3 4 .4 2 .2 4 .2

• 1.2

2.4 3.6 4.8 6.0

Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09

Rs B

Provision–PR amendment FSV / others ( Rs 1.975M) Provision–FSV Rs 1.829M) * Excluding other operational Writeoffs * Excluding other operational Writeoffs Impairment Loss 2.2B

SLIDE 29

2 .2 2 .2 2 .6 3 .0 3 .1 2 .9 1.5 2 .1 3 .7

1.0 1.8 2.6 3.4 4.2 5.0

Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09

Rs B

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29

Non Non-

• Funded Income

Funded Income

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30

Total Revenue Total Revenue

7.8 5.5 5.8 8.2 8.5 9.1 4.4 7.9 7.2

4.0 5.4 6.8 8.2 9.6 11.0

Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09

Rs B

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31

Administrative Expenses Administrative Expenses

3 .4 3 .4 3 .8 3 .5 3 .7 4 .1 3 .9 4 .1 4 .3

3.3 3.5 3.8 4.0 4.3 4.5

Jun 07 Sep 07 Dec 07 M ar 08 Jun 08 Sep 08 Dec-08 M ar 09 Jun-09

Rs B

ERS (Rs 307M) ERS (Rs 87M) ERS (Rs 70M)

• Amor. cost (Rs 322M)

ERS (Rs 92M)

• Amor. cost (Rs 179M)

SLIDE 32

The information contained herein reflects our latest business statement as at June 30, 2009 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 of 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 obligations to update forward-looking statements to reflect event or circumstances after the date thereof.

SLIDE 33

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33

Thank You Thank You