UBL Interim Financial Statements March 2023 Consolidated

United Bank Limited
CONSOLIDATED CONDENSED
INTERIM FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED
MARCH 31, 2023
(UN-AUDITED)
CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT MARCH 31, 2023
(Un-audited) (Audited)
March 31, December 31,
2023 2022
------------------------------------------
Note (Rupees in ‘000) ------------------------------------------
ASSETS
Cash and balances with treasury banks 6 238,871,450 143,034,544
Balances with other banks 7 60,333,848 16,686,747
Lendings to financial institutions 8 61,294,333 85,842,721
Investments 9 1,745,654,542 1,450,939,753
Advances 10 931,878,496 1,096,220,888
Property and equipment 11 81,655,640 79,402,671
Intangible assets 12 2,507,945 2,518,133
Deferred tax assets 13 27,158,055 16,751,121
Other assets 15 104,003,459 87,009,226
3,253,357,768 2,978,405,804
LIABILITIES
Bills payable 17 27,544,075 36,482,712
Borrowings 18 474,111,714 566,234,220
Deposits and other accounts 19 2,379,817,911 2,034,557,434
Liabilities against assets subject to finance lease 20 14,605 11,341
Subordinated debt 21 10,000,000 10,000,000
Deferred tax liabilities 13 - -
Other liabilities 22 120,645,836 101,927,823
3,012,134,141 2,749,213,530
NET ASSETS 241,223,627 229,192,274
REPRESENTED BY:
Share capital 12,241,797 12,241,797
Reserves 113,151,676 91,888,710
Surplus on revaluation of assets 23 5,763,290 19,654,297
Unappropriated profit 98,107,954 96,282,169
Total equity attributable to the equity holders of the Bank 229,264,717 220,066,973
Non-controlling interest 11,958,910 9,125,301

241,223,627 229,192,274
CONTINGENCIES AND COMMITMENTS 24
The annexed notes 1 to 44 form an integral part of these consolidated condensed interim financial statements.
Arif Akmal Saifie Shazad G. Dada Shazia Syed Muhammad Jawaid Iqbal Sir Mohammed Anwar Pervez, OBE, HPk
Chief Financial Officer President & Director Director Chairman
Chief Executive Officer
CONSOLIDATED CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UN-AUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2023
January - January -
March March
2023 2022
------------------------------------
Note (Rupees in ‘000) ------------------------------------
Mark-up / return / interest earned 26 92,568,156 49,331,822
Mark-up / return / interest expensed 27 57,620,727 26,968,429
Net mark-up / interest income 34,947,429 22,363,393
Non mark-up / interest income
Fee and commission income 28 4,781,571 4,217,459
Dividend income 475,449 529,805
Foreign exchange income 4,438,640 1,343,333
Loss from derivatives (37,606) (37,777)
(Loss) / gain on securities - net 29 (637,132) 446,406
Other income 30 234,196 276,502
Total non mark-up / interest income 9,255,118 6,775,728
Total income 44,202,547 29,139,121
Non mark-up / interest expenses
Operating expenses 31 15,719,975 12,687,006
Workers' Welfare Fund 500,158 328,032
Other charges 32 1,521 5,628
Total non mark-up / interest expenses 16,221,654 13,020,666
Share of loss of associates (158,245) (47,166)
Profit before provisions 27,822,648 16,071,289
Provisions and write-offs - net 33 2,714,605 334,109
Profit before taxation from continuing operations 25,108,043 15,737,180
Taxation 34 10,637,315 6,364,518
Profit after taxation from continuing operations 14,470,728 9,372,662

Discontinued operations
Profit from discontinued operations - net of tax 14 - 22,172
Profit after taxation 14,470,728 9,394,834
Attributable to:
Equity holders of the Bank
from continuing operations 14,226,896 9,281,926
from discontinued operations - 22,172
14,226,896 9,304,098
Non-controlling interest 243,832 90,736
14,470,728 9,394,834
------------------------------------ (Rupees) ------------------------------------
Earnings per share for profit from continuing operations attributable to

the equity holders of the Bank
Basic and diluted 11.62 7.58
Earnings per share for profit attributable to the equity holders of the Bank
Basic and diluted 35 11.62 7.60
CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)
January - March January - March

2023 2022
------------------------------------ (Rupees in '000) ------------------------------------
Profit after taxation for the period attributable to:

from discontinued operations - 22,172
14,226,896 9,304,098
14,470,728 9,394,834
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 and subsidiaries - net of tax
Equity holders of the Bank 19,872,692 1,994,996
Non-controlling interest 2,506,605 82,929
22,379,297 2,077,925
Movement in deficit on revaluation of investments - net of tax
Equity holders of the Bank (14,643,049) (5,426,948)
Non-controlling interest (526,839) (549,531)
(15,169,888) (5,976,479)
7,209,409 (3,898,554)
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

Equity holders of the Bank 783,152 39,250
1,413,069 70,525
Remeasurement loss on defined benefit obligations - net of tax

Equity holders of the Bank (24,330) -
Non-controlling interest (19,906) -
(44,236) -
Movement in surplus on revaluation of non-banking assets - net of tax - 15,882

1,368,833 86,407
Total comprehensive income for the period 23,048,970 5,582,687
Attributable to:
from discontinued operation - 22,172
20,215,361 5,927,278
Non-controlling interest 2,833,609 (344,591)
23,048,970 5,582,687
CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
Attributable to equity holders of the Bank
Surplus / (Deficit) on revaluation
Capital reserve - Non-controlling
Share Statutory Non Unappropriated Total
exchange Fixed Sub total Interest
capital reserve Investments banking profit
translation assets
assets
---------------------------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------------------
Balance as at January 01, 2022 (Audited) 12,241,797 38,495,676 39,105,114 (2,561,551) 42,570,415 10,189 89,840,102 219,701,742 8,612,234 228,313,976
Total comprehensive income for the three months
ended March 31, 2022
Profit after taxation for the three months
ended March 31, 2022 - - - - - - 9,304,098 9,304,098 90,736 9,394,834
Other comprehensive income - net of tax - - 1,994,996 (5,426,948) 39,250 15,882 - (3,376,820) (435,327) (3,812,147)
ended March 31, 2022 - - 1,994,996 (5,426,948) 39,250 15,882 9,304,098 5,927,278 (344,591) 5,582,687
Ordinary dividend relating to non-controlling shareholders - - - - - - - - (4,186) (4,186)
Transfer from surplus on revaluation upon disposal
to unappropriated profit - net of tax - - - - (32,489) - 32,489 - - -
Transfer of incremental depreciation from revaluation of
fixed assets to unappropriated profit - net of tax - - - - (23,266) - 23,266 - - -
Transfer to statutory reserve - 952,771 - - - - (952,771) - - -
Transactions with owners, recorded directly in equity
Final cash dividend - December 31, 2021 declared
subsequent to the year end at Rs. 6.0 per share - - - - - - (7,345,078) (7,345,078) - (7,345,078)
Balance as at March 31, 2022 (Un-audited) 12,241,797 39,448,447 41,100,110 (7,988,499) 42,553,910 26,071 90,902,106 218,283,942 8,263,457 226,547,399
Total comprehensive income for the nine months
ended December 31, 2022
Profit after taxation for the nine months
ended December 31, 2022 - - - - - - 22,231,396 22,231,396 455,468 22,686,864
Other comprehensive income - net of tax - - 9,228,519 (14,799,941) 195,239 (668) 984,683 (4,392,168) 521,477 (3,870,691)
Total comprehensive income for the nine months
ended December 31, 2022 - - 9,228,519 (14,799,941) 195,239 (668) 23,216,079 17,839,228 976,945 18,816,173
Ordinary dividend relating to non-controlling shareholders - - - - - - - - (115,101) (115,101)
Transfer from surplus on revaluation upon disposal
to unappropriated profit - net of tax - - - - (240,042) (25,403) 265,445 - - -
Transfer to statutory reserve - 2,253,494 - - - - (2,253,494) - - -
Transfer from statutory reserve on liquidation of subsidiary - (141,860) - - - - - (141,860) - (141,860)
Interim cash dividend - March 31, 2022 declared
at Rs. 5.0 per share - - - - - - (6,120,899) (6,120,899) - (6,120,899)
Interim cash dividend - June 30, 2022 declared
at Rs. 4.0 per share - - - - - - (4,896,719) (4,896,719) - (4,896,719)
Interim cash dividend - September 30, 2022 declared
at Rs. 4.0 per share - - - - - - (4,896,719) (4,896,719) - (4,896,719)
- - - - - - (15,914,337) (15,914,337) - (15,914,337)
Balance as at December 31, 2022 (Audited) 12,241,797 41,560,081 50,328,629 (22,788,440) 42,442,737 - 96,282,169 220,066,973 9,125,301 229,192,274
ended March 31, 2023
Profit after taxation for the three months
ended March 31, 2023 - - - - - - 14,226,896 14,226,896 243,832 14,470,728
Other comprehensive income - net of tax - - 19,872,692 (14,643,049) 783,152 - (24,330) 5,988,465 2,589,777 8,578,242
ended March 31, 2023 - - 19,872,692 (14,643,049) 783,152 - 14,202,566 20,215,361 2,833,609 23,048,970
Ordinary dividend relating to non-controlling shareholders - - - - - - - - - -
Transfer from surplus on revaluation
to unappropriated profit - net of tax - - - - - - - - - -
Transfer to statutory reserve - 1,390,274 - - - - (1,390,274) - - -
Interim cash dividend - December 31, 2022 declared
at Rs. 9.0 per share - - - - - - (11,017,617) (11,017,617) - (11,017,617)
Balance as at March 31, 2023 (Un-audited) 12,241,797 42,950,355 70,201,321 (37,431,489) 43,194,779 - 98,107,954 229,264,717 11,958,910 241,223,627
CONSOLIDATED CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)
January - March January - March
2023 2022
------------------------------------ (Rupees in '000) ------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxation including discontinued operations 25,108,043 15,759,352
Less: Dividend income 475,449 529,805
Less: Share of loss of associates (158,245) (47,166)
24,790,839 15,276,713
Adjustments:
Depreciation on fixed assets 996,575 939,084
Depreciation on Islamic financing against leased assets (Ijarah) 33,910 40,752
Depreciation on right-of-use assets 534,627 482,336
Depreciation on non-banking assets acquired in satisfaction of claims 376 31,854
Amortisation 246,937 214,970
Workers' Welfare Fund - charge 500,158 328,032
Provision for retirement benefits 307,420 140,955
Provision for compensated absences 64,982 41,007
(Reversal) / provision against loans and advances - net (1,375,281) 755,642
Reversal of provision against off balance sheet items - net (39,492) (54,749)
Provision / (reversal) for diminution in value of investments - net 4,071,351 (141,754)
Interest expense on lease liability against right-of-use assets 286,239 250,302
Loss on sale of Ijarah assets - net 105 1,793
Gain on sale of fixed assets - net (72,344) (39,889)
Bad debts written off directly 42,662 11,091
Unrealised loss / (gain) on revaluation of investments classified as held for trading 21,184 (108,400)
Provision / (reversals) against other assets 2,189 (2,136)
Other provisions / (reversals) and write-offs 106,195 (27,117)
5,727,793 2,863,773
30,518,632 18,140,486
(Increase) / decrease in operating assets
Lendings to financial institutions 24,548,388 (24,900,422)
Held for trading securities 8,716,231 (6,146,877)
Advances 165,640,996 (17,831,483)
Other assets (excluding advance taxation) (18,790,146) (10,449,984)
180,115,469 (59,328,766)
Increase / (decrease) in operating liabilities
Bills payable (8,938,637) 12,490,247
Borrowings (92,122,506) (352,529,385)
Deposits and other accounts 345,260,477 32,204,208
Other liabilities 6,084,530 7,299,265
250,283,864 (300,535,665)
460,917,965 (341,723,945)
Receipts / (payments) on account of staff retirement benefits 132,311 1,757,251
Income taxes paid (8,815,092) (4,782,597)
Net cash flows generated from operating activities 452,235,184 (344,749,291)
CASH FLOW FROM INVESTING ACTIVITIES
Net investments in available for sale securities (321,669,827) 269,226,532
Net investments in held to maturity securities (9,838,836) 19,962,378
Net investments in associates (1,660,142) (3,232,881)
Dividend income received 475,449 336,054
Investment in fixed assets and intangible assets (1,750,062) (1,251,487)
Sale proceeds from disposal of fixed assets 80,114 154,761
Sale proceeds from disposal of ijarah assets 5,302 14,073
Exchange differences on translation of net investment in overseas branches and subsidiaries 22,379,297 2,077,925
Net cash flows used in investing activities (311,978,705) 287,287,355
CASH FLOW FROM FINANCING ACTIVITIES
Payment of lease obligations (3,264) (3,877)
Payment of lease liability against right-of-use assets (769,101) (679,026)
Dividends paid (107) (5,616,140)
Net cash flows used in financing activities (772,472) (6,299,043)
Decrease in cash and cash equivalents 139,484,007 (63,760,979)
Cash and cash equivalents at the beginning of the period 140,522,207 280,670,589
Effect of exchange rate changes on cash and cash equivalents 19,199,084 23,254,495
159,721,291 303,925,084
Cash and cash equivalents at the end of the period 299,205,298 240,164,105
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)
1. STATUS AND NATURE OF BUSINESS
The Group consists of:
Holding Company
- United Bank Limited (the Bank)
Subsidiary Companies
- United National Bank Limited, United Kingdom (UBL UK) - 55% holding
- UBL Fund Managers Limited, Pakistan (UBL FM) - 98.87% holding
- Al Ameen Financial Services (Private) Limited (AFSL) - 98.87% effective holding
The Group is engaged in commercial banking, asset management, investment advisory and investments business. United Bank
Limited (the Bank) is a banking company incorporated in Pakistan and is engaged in commercial banking and related services. The
Bank's registered office and principal office are situated at UBL Building, Jinnah Avenue, Blue Area, Islamabad and at UBL Head
Office, I. I. Chundrigar Road, Karachi respectively. The Bank operates 1,335 (December 31, 2022: 1,335) branches inside Pakistan
including 150 (December 31, 2022: 150) Islamic Banking branches and 2 (December 31, 2022: 2) branches in Export Processing
Zones. The Bank also operates 8 (December 31, 2022: 8) branches outside Pakistan. The Bank is a wholly owned subsidiary of
Bestway International Holdings Limited (BIHL) and BIHL a wholly owned subsidiary of Bestway Group Limited (BGL) which is
incorporated in the Guernsey.
The Bank's ordinary shares are listed on Pakistan Stock Exchange (PSX). Its Global Depository Receipts (GDRs) are on the list of
the UK Listing Authority and the London Stock Exchange Professional Securities Market. These GDRs are also eligible for trading
on the International Order Book System of the London Stock Exchange. Further, the GDRs constitute an offering in the United
States only to qualified institutional buyers in reliance on Rule 144A under the US Securities Act of 1933 and an offering outside the
United States in reliance on Regulation S.
Non-controlling interest represents National Bank of Pakistan's 45% share in the net asset value of UBL UK and 1.13% shares held
by past and present employees of UBL FM in the net asset value of UBL FM.
2. BASIS OF PRESENTATION
These unconsolidated condensed interim financial statements have been prepared in conformity with the format of interim financial
statements prescribed by the State Bank of Pakistan (SBP) vide BPRD Circular Letter No. 5 dated March 22, 2019.
In accordance with the directives of the Federal Government regarding the shifting of the banking system to Islamic mode. The SBP
has issued various circulars from time to time. Permissible forms of trade-related modes of financing includes purchase of goods by
banks from customers and immediate resale to them at appropriate profit in price on deferred payment basis. The purchase and
resale arising under these arrangements are not reflected in these unconsolidated financial statements as such, but are restricted to
the amount of facility actually utilized and the appropriate portion of profit thereon.
Key financial figures of the Islamic Banking branches are disclosed in note 40 to these consolidated condensed interim financial
statements.
2.1 STATEMENT OF COMPLIANCE
These consolidated condensed interim financial statements of the Group have been prepared in accordance with the accounting
and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as
applicable in Pakistan for interim financial reporting comprise of:
- International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board
(IASB) as notified under the Companies Act, 2017;
- Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan as are notified under
the Companies Act, 2017;
- Provisions of and directives issued under the Banking Companies Ordinance, 1962 and the Companies Act, 2017 and;
- Directives issued by the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP).
Whenever the requirements of the Banking Companies Ordinance, 1962, the Companies Act, 2017 or the directives issued by the
SBP and the SECP differ with the requirements of IFRS or IFAS, the requirements of the Banking Companies Ordinance, 1962, the
Companies Act, 2017 and the said directives shall prevail.
The SBP vide BSD Circular Letter No. 10, dated August 26, 2002, has deferred the applicability of International Accounting
Standard 39, Financial Instruments: Recognition and Measurement and International Accounting Standard 40, Investment Property
for banking companies till further instructions. Moreover, SBP vide BPRD Circular No. 4, dated February 25, 2015, has deferred the
applicability of Islamic Financial Accounting Standards (IFAS) 3, Profit and Loss Sharing on Deposits. Further, according to the
notification of the SECP issued vide SRO 411(I)/2008 dated April 28, 2008, International Financial Reporting Standard (IFRS) 7,
Financial Instruments: Disclosures has not been made applicable for banks. Accordingly, the requirements of these standards have
not been considered in the preparation of these consolidated condensed interim financial statements. However, investments have
been classified and valued in accordance with the requirements of various circulars issued by the SBP.
The SECP vide its notification SRO 633 (I)/2014 dated July 10, 2014, adopted IFRS 10 effective from the periods starting from 30
June 2014. However, vide its notification SRO 56 (I)/2016 dated January 28, 2016, it has been notified that the requirements of
IFRS 10 and section 228 of the Companies Act, 2017 will not be applicable with respect to the investment in mutual funds
established under trust structure.
The disclosures made in these consolidated condensed interim financial statements have been limited based on a format
prescribed by the SBP vide BPRD Circular No. 2 dated February 9, 2023, and IAS 34, Interim Financial Reporting. They do not
include all the information and disclosures required in the preparation of audited annual financial statements, and should be read in
conjunction with the audited consolidated financial statements of the Group for the year ended December 31, 2022.
2.2 Standards, interpretations and amendments to approved accounting standards that are effective in the current period
There are certain amendments to existing accounting and reporting standards that have become applicable to the Group for
accounting periods beginning on or after January 01, 2023. These are either considered not to be relevant or do not have any
significant impact and accordingly, have not been detailed in these consolidated condensed interim financial statements.
2.3 Standards, interpretations and amendments to accounting standards that are not yet effective
IFRS 9 has been applicable in several overseas jurisdictions from January 01, 2018. Accordingly, the requirements of this standard
are incorporated in the Bank’s unconsolidated condensed interim financial statements for the jurisdictions where IFRS 9 has been
adopted.
As per the SBP's BPRD Circular no. 7 dated April 13, 2023, IFRS 9 - Financial Instruments has been made applicable to Banks in
Pakistan for accounting periods beginning on or after January 01, 2024 (for banks having asset size of Rs. 500 billion or above).
The impact of the application of IFRS 9 in Pakistan on the Bank's financial statements is being assessed. Further, preparation of the
interim financial statements on the revised formats by banks has also been extended to the first quarter of year 2024.
These consolidated financial statements have been prepared in accordance with the existing prudential regime to the extent of the
Bank's domestic operations, whereas the requirements of this standard have been incorporated for the overseas jurisdictions where
IFRS 9 has already been adopted.
3. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies adopted in the preparation of these consolidated condensed interim financial statements are consistent with
those applied in the preparation of the consolidated financial statements of the Group for the year ended December 31, 2022.
4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of these consolidated condensed interim financial statements in conformity with the accounting and reporting
standards as applicable in Pakistan requires management to make judgments, estimates and assumptions that affect the reported
amounts of assets and liabilities and income and expenses. It also requires management to exercise judgment in the application of
its accounting policies. The estimates and assumptions are based on historical experience and various other factors that are
believed to be reasonable under the circumstances. These estimates and assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that
period, or in the period of revision and future periods if the revision affects both current and future periods.
The significant judgments made by management in applying its accounting policies and the key sources of estimation uncertainty
were the same as those applied to the consolidated financial statements of the Group for the year ended December 31, 2022.
5. FINANCIAL RISK MANAGEMENT
The financial risk management objectives and policies adopted by the Group are consistent with those disclosed in the consolidated
financial statements for the year ended December 31, 2022.
2023 2022
------------ (Rupees in '000) ------------
6. CASH AND BALANCES WITH TREASURY BANKS
In hand
Local currency 25,350,452 27,392,567
Foreign currencies 10,480,614 8,082,259
35,831,066 35,474,826
With State Bank of Pakistan in

Local currency current accounts 76,842,662 55,264,401
Foreign currency current accounts 628,427 912,557
Foreign currency deposit accounts 4,992,215 204,472
82,463,304 56,381,430
With other central banks in

Foreign currency current accounts 60,386,382 44,342,604
Foreign currency deposit accounts 16,832,549 6,298,682
77,218,931 50,641,286
With National Bank of Pakistan in local currency current accounts 43,113,695 377,456
Prize bonds 244,454 159,546
238,871,450 143,034,544
7. BALANCES WITH OTHER BANKS
In Pakistan
In current accounts 12,344 9,848
In deposit accounts 1,861 13,989
14,205 23,837
Outside Pakistan
In current accounts 35,670,241 11,006,069
In deposit accounts 24,649,402 5,656,841
60,319,643 16,662,910
60,333,848 16,686,747
8. LENDINGS TO FINANCIAL INSTITUTIONS
Call / clean money lendings 7,033 546,241

Repurchase agreement lendings (reverse repo) 61,287,300 85,296,480
Placements with State Bank of Pakistan - -
61,294,333 85,842,721
9. INVESTMENTS March 31, 2023 (Un-audited) December 31, 2022 (Audited)
Cost / Amortised Provision for Surplus / Cost / Amortised Provision for Surplus /
9.1 Investments by type Carrying Value Carrying Value
cost diminution (Deficit) cost diminution (Deficit)
Note ------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------

Held for trading securities
Federal Government Securities
- Market Treasury Bills 18,830,098 - (21,184) 18,808,914 27,546,990 - (661) 27,546,329
Available for sale securities

- Market Treasury Bills 384,293,218 - (714,292) 383,578,926 111,414,256 - (349,118) 111,065,138
- Pakistan Investment Bonds - fixed 228,112,714 - (22,223,281) 205,889,433 228,274,771 - (14,385,381) 213,889,390
- Pakistan Investment Bonds - floaters 451,697,124 - (15,583,378) 436,113,746 451,294,888 - (5,349,435) 445,945,453
- Government of Pakistan Sukuks 103,175,114 (420,520) (3,059,584) 99,695,010 102,872,728 (302,150) (1,138,560) 101,432,018
- Islamic Naya Pakistan Certificates 7,332,935 - - 7,332,935 4,806,162 - - 4,806,162
- Government of Pakistan Eurobonds 47,207,909 (12,200,645) (17,252,724) 17,754,540 37,613,094 (8,768,691) (13,320,385) 15,524,018
Ordinary shares
- Listed companies 15,328,321 (6,425,405) 181,454 9,084,370 15,334,822 (6,017,934) 233,489 9,550,377
- Unlisted companies 787,928 (60,046) - 727,882 791,144 (67,155) - 723,989
Non-Government debt securities
- Corporate Sukuks 1,910,000 - - 1,910,000 1,931,429 - - 1,931,429
- Term Finance Certificates 2,507,335 (162,334) - 2,345,001 2,507,335 (162,334) - 2,345,001
- Corporate Bond 1,583,753 - (1,011,226) 572,527 1,233,017 - (839,419) 393,598
Foreign securities
- Market Treasury Bills 36,971,097 - (6,023) 36,965,074 5,973,330 - 314 5,973,644
- Foreign bonds - sovereign 84,513,816 (6,205,667) (5,914,052) 72,394,097 82,960,517 (5,103,211) (4,833,841) 73,023,465
- Foreign bonds - others 10,253,134 (495) (249,564) 10,003,075 2,487,738 (1,167) (157,276) 2,329,295
Mutual Fund units 258,179 - (57,062) 201,117 258,179 - (55,649) 202,530
Real Estate Investment Trust units 533,453 - 108,684 642,137 533,453 - 109,155 642,608
1,376,466,030 (25,475,112) (65,781,048) 1,285,209,870 1,050,286,863 (20,422,642) (40,086,106) 989,778,115
Held to maturity securities
- Pakistan Investment Bonds - fixed 296,489,575 - - 296,489,575 295,069,033 - - 295,069,033
- Pakistan Investment Bonds - floaters 47,817,949 - - 47,817,949 47,788,071 - - 47,788,071
- Government of Pakistan Sukuks 10,002,177 - - 10,002,177 10,002,327 - - 10,002,327
- Government of Pakistan Eurobonds 16,543,415 (4,902,566) - 11,640,849 13,221,686 (3,528,868) - 9,692,818
- Bai Muajjal with Government of Pakistan - - - - - - - -
Non-Government debt securities
- Corporate Sukuks 8,946,699 (46,394) - 8,900,305 8,599,224 (50,934) - 8,548,290
- Term Finance Certificates 9,179,054 (69,951) - 9,109,103 8,076,150 (69,951) - 8,006,199
- Debentures 2,267 (2,267) - - 2,267 (2,267) - -
- Participation Term Certificates 437 (437) - - 437 (437) - -
- Corporate Bond 2,758,033 (817,725) - 1,940,308 2,200,838 (587,404) - 1,613,434
Foreign securities
- Market Treasury Bills 1,197,906 - - 1,197,906 6,469,775 - - 6,469,775
- Foreign bonds - sovereign 52,681,118 (4,515,829) - 48,165,289 42,086,214 (3,546,802) - 38,539,412
- Foreign bonds - others 1,512,396 (535) - 1,511,861 1,208,667 (1,416) - 1,207,251
- CDC SAARC Fund 616 - - 616 492 - - 492
447,131,642 (10,355,704) - 436,775,938 434,725,181 (7,788,079) - 426,937,102
Associates
- UBL Liquidity Plus Fund 955,231 - - 955,231 3,136,843 - - 3,136,843
- UBL Financial Sector Fund 306,884 - - 306,884 302,178 - - 302,178
- UBL Special Savings Plan VIII 103,587 - - 103,587 103,212 - - 103,212
- UBL Special Savings Plan X 6,000 - - 6,000 - - - -
- UBL Pakistan Enterprise Exchange Traded Fund 21,521 - - 21,521 20,310 - - 20,310
- UBL Dedicated Equity Fund 99,187 - - 99,187 94,262 - - 94,262
- UBL Government Securities Fund 530 - - 530 514 - - 514
- UBL Fixed Return Plan I B - - - - 1,040 - - 1,040
- UBL Fixed Return Plan I D 10,326 - - 10,326 10,047 - - 10,047
- UBL Fixed Return Plan - II A 32,235 - - 32,235 - - - -
- UBL Fixed Return Plan - III C 302,979 - - 302,979 - - - -
- UBL Fixed Return Plan - III D 37,881 - - 37,881 - - - -
- UBL Money Market Fund 1,078 - - 1,078 - - - -
- Al Ameen Islamic Energy Fund 262,053 - - 262,053 157,746 - - 157,746
- Al Ameen Islamic Dedicated Equity Fund 53,043 - - 53,043 52,163 - - 52,163
- Al-Ameen Islamic Cash Plan I 167,301 - - 167,301 35,167 - - 35,167
- UBL Insurers Limited 586,534 - - 586,534 585,248 - - 585,248
- Khushhali Bank Limited 9.4 2,307,251 (393,801) - 1,913,450 2,573,278 (393,801) - 2,179,477
5,253,621 (393,801) - 4,859,820 7,072,008 (393,801) - 6,678,207
Total Investments 1,847,681,391 (36,224,617) (65,802,232) 1,745,654,542 1,519,631,042 (28,604,522) (40,086,767) 1,450,939,753
2023 2022
9.1.1 Investments given as collateral Note ------------ (Rupees in '000) ------------
Federal Government securities

Pakistan Investment Bonds - floaters 393,965,776 368,801,131
Pakistan Investment Bonds - fixed 5,956,976 56,225,155
Government of Pakistan Sukuks - 20,000,000
Foreign securities
Foreign bonds - sovereign - 9,199,941
Associates
UBL Liquidity Plus Fund units - 1,898,804
399,922,752 456,125,031
The market value of securities given as collateral is Rs. 385,412 million (December 31, 2022: Rs. 444,672 million).
9.2 Provision for diminution in value of investments
9.2.1 Opening balance 28,604,522 6,457,317
Exchange adjustments 3,548,743 1,303,537
Charge / (reversals)
Charge for the period / year 5,044,837 21,031,410
Reversals for the period / year (713,431) (99,806)
Reversal on disposals (260,055) (87,936)
4,071,351 20,843,668
Amount written off - -
Closing balance 9.5 36,224,616 28,604,522
9.2.2 Particulars of provision against debt securities
March 31, 2023 (Un-audited) December 31, 2022 (Audited)
Non- Non-
Category of classification Performing Provision Performing Provision
Investments Investments
-------------------------------- (Rupees in '000) --------------------------------
Domestic
Loss 281,382 281,382 285,923 285,923
Overseas
Defaulted exposure 14,555,982 9,489,773 11,613,838 7,533,530
Total 14,837,364 9,771,155 11,899,761 7,819,453
9.3 The market value of securities classified as held-to-maturity as at March 31, 2023 amounted to Rs. 393,506.880 million (December 31,
2022: Rs. 394,810.915 million).
9.4 This represents the Bank's subscription towards the paid-up capital of Khushhali Bank Limited. Pursuant to section 10 of the Khushhali
Bank Ordinance, 2000 strategic investors including the Bank cannot sell or transfer their investment before a period of five years that
has expired on October 10, 2005. Thereafter, such sale / transfer would be subject to the prior approval of the SBP. However these
shares are still appearing as frozen as no approval has been obtained by the Bank to unfreeze these shares.
9.5 Provision against investments includes Expected Credit Losses (ECL) / impairment under IFRS 9 amounting to Rs. 27,276.994 million
(December 31, 2022: Rs. 20,452.132 million) on overseas branches.
10. ADVANCES
Performing Non-performing Total
(Un-audited) (Audited) (Un-audited) (Audited) (Un-audited) (Audited)
March 31, December 31, March 31, December 31, March 31, December 31,
2023 2022 2023 2022 2023 2022
Note---------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------
Loans, cash credits, running finances, etc. 827,113,496 939,171,325 108,348,341 92,462,842 935,461,837 1,031,634,167
Islamic financing and related assets 40.2 75,483,653 102,281,886 161,646 159,579 75,645,299 102,441,465
Bills discounted and purchased 26,067,365 51,511,597 3,007,556 2,908,653 29,074,921 54,420,250
Advances - gross 928,664,514 1,092,964,808 111,517,543 95,531,074 1,040,182,057 1,188,495,882
Provision against advances 10.3
- Specific - - (96,098,318) (82,038,458) (96,098,318) (82,038,458)
- General (12,205,243) (10,236,536) - - (12,205,243) (10,236,536)
(12,205,243) (10,236,536) (96,098,318) (82,038,458) (108,303,561) (92,274,994)
Advances - net of provision 916,459,271 1,082,728,272 15,419,225 13,492,616 931,878,496 1,096,220,888
2023 2022
10.1 Particulars of advances - gross ------------ (Rupees in '000) ------------
10.1.1 In local currency 574,957,281 765,445,157

In foreign currencies 465,224,776 423,050,725
1,040,182,057 1,188,495,882
10.2 Advances include Rs. 111,517.543 million (December 31, 2022: Rs. 95,531.074 million) which have been placed under non-performing
status as detailed below:
Non- Non-
Category of Classification Performing Provision Performing Provision
Loans Loans
-------------------------------- (Rupees in '000) --------------------------------
Domestic
Other Assets Especially Mentioned* 185,677 2,854 135,948 1,948
Substandard 2,336,545 572,480 2,307,269 569,848
Doubtful 408,122 197,926 732,137 365,716
Loss 22,894,251 21,948,746 23,018,816 22,067,588
25,824,595 22,722,006 26,194,170 23,005,100
Overseas
Not past due but impaired** 6,648,655 2,255,371 5,192,817 1,806,054
Overdue by:
Upto 90 days 423,689 75,633 1,194,694 403,030
91 to 180 days 874,062 440,690 82,114 31,978
181 to 365 days 3,296,107 1,917,444 3,476,459 1,539,163
˃ 365 days 74,450,435 68,687,174 59,390,820 55,253,133
85,692,948 73,376,312 69,336,904 59,033,358
Total 111,517,543 96,098,318 95,531,074 82,038,458
* The Other Assets Especially Mentioned category pertains to agriculture, housing and small enterprises financing.
** Not past due but impaired category mainly represents restructured exposure.
10.3 Particulars of provision against advances

Specific General Total Specific General Total
------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------
Opening balance 82,038,458 10,236,536 92,274,994 74,961,336 7,470,576 82,431,912

Exchange adjustments 15,095,500 2,360,462 17,455,962 14,659,246 1,398,030 16,057,276
(Reversals) / charge
Charge for the period / year 222,161 30,178 252,339 2,460,068 388,833 2,848,901
Reversals for the period / year (1,205,687) (421,933) (1,627,620) (3,714,668) (2,110,253) (5,824,921)
(983,526) (391,755) (1,375,281) (1,254,600) (1,721,420) (2,976,020)
Amounts charged off - agriculture
financing (11,017) - (11,017) (66,894) - (66,894)
Amounts written off (41,097) - (41,097) (3,171,280) - (3,171,280)
Transfers (out) / in - net - - - (3,089,350) 3,089,350 -
Closing balance 96,098,318 12,205,243 108,303,561 82,038,458 10,236,536 92,274,994
10.3.1 General provision represents provision amounting to Rs. 468.194 million (December 31, 2022: Rs. 469.158 million) against consumer
finance portfolio as required by the Prudential Regulations issued by the SBP and Rs. 11,437.049 million (December 31, 2022: Rs.
9,467.378 million) pertaining to overseas advances to meet the requirements of the regulatory authorities of the respective countries in
which the overseas branches and subsidiaries operate. In addition, bank has created a general charge on agriculture finance portfolio
of Rs. 300.000 million (December 31, 2022: Rs. 300.000 million).
10.3.2
The Bank has availed the benefit of Forced Sale Value (FSV) of certain mortgaged properties held as collateral against non-performing
advances as allowed under BSD Circular 01 of 2011. Had the benefit under the said circular not been taken by the Bank, the specific
provision against non-performing advances would have been higher by Rs. 10.132 million (December 31, 2022: Rs. 5.359 million).
The Bank has also availed FSV benefit of certain mortgaged properties held as collateral against non-performing advances of overseas
branches in accordance with the applicable regulations in the respective countries where the branches operate. Had the benefit not
been taken by the Bank, the specific provision against non-performing advances would have been higher by Rs. 6,435.505 million
(December 31, 2022: Rs. 5,329.058 million) for the overseas branches.
The FSV benefit availed is not available for the distribution of cash or stock dividend to shareholders.
11. FIXED ASSETS 2023 2022
Note ---------- (Rupees in '000) ------------
Capital work-in-progress 11.1 1,192,177 1,054,194

Property and equipment 72,531,760 70,370,878
Right-of-use assets 7,931,703 7,977,599
81,655,640 79,402,671
11.1 Capital work-in-progress
Civil works 1,048,870 856,514

Equipment 143,307 197,680
1,192,177 1,054,194
(Un-audited)
January - January -
11.2 Additions to fixed assets March 2023 March 2022
------------- (Rupees in '000) -----------

The following additions have been made to fixed assets during the period:
Capital work-in-progress - net additions 137,983 239,777
Property and equipments

Leasehold improvements 125,684 84,055
Furniture and fixtures 50,878 50,476
Electrical, office and computer equipment 464,915 385,672
Vehicles 29,337 9,457
670,814 529,660
Right-of-use assets 503,504 638,822
Total 1,312,301 1,408,259

(Un-audited)
January - January -
March 2023 March 2022
11.3 Disposals of fixed assets ------------- (Rupees in '000) -----------
The net book value of fixed assets disposed off during the period is as follows:
Building on leasehold land - 32,500

Leasehold Improvement 20 -
Furniture and fixtures 614 220
Electrical, office and computer equipment 1,314 1,353
Vehicles 5,822 -
7,770 34,073
Derecognition of right-of-use assets 26,083 94,872
Total 33,853 128,945
12. INTANGIBLE ASSETS 2023 2022
---------- (Rupees in '000) ------------
Capital work-in-progress - Computer software 506,746 384,706

Intangible assets - Computer software 2,001,199 2,133,427
2,507,945 2,518,133
(Un-audited)
January - January -
12.1 Additions to intangible assets -------------- (Rupees in '000) --------------
The following additions have been made to intangible assets during the period:
Capital work-in-progress - net additions 122,040 238,489

Directly purchased - intangible assets 54,217 66,219
176,257 304,708
2023 2022
13. DEFERRED TAX ASSETS ------- (Rupees in '000) -------
Deductible temporary differences on

Provision against advances, off-balance sheet obligations 2,628,666 2,628,666
Deficit on revaluation of investments 26,146,000 15,600,599
Post-retirement employee benefits 58,684 58,867
Workers' Welfare Fund 3,249,870 3,036,553
Others 31,951 (40,822)
32,115,171 21,283,863
Taxable temporary differences on
Surplus on revaluation of fixed assets / non-banking assets (3,352,517) (2,998,994)
Accelerated tax depreciation (517,996) (869,279)
Share of profit from associates (757,471) (664,231)
Others (329,132) (238)
(4,957,116) (4,532,742)
27,158,055 16,751,121
14. DISCONTINUED OPERATION
UBL Bank (Tanzania) Limited (UBTL), a wholly owned subsidiary of United Bank Limited has been wound up in August 2022. The
Banking operations of the subsidiary ceased on November 01, 2019 as UBTL sold materially all of its assets and liabilities held as at
October 31, 2019 to EXIM Bank Tanzania Limited (Exim), in line with the Asset and Liabilities Purchase Agreement signed on May
22, 2019. The official liquidator was appointed by Board of Directors of UBTL on December 15, 2021 and after compliance of all local
laws and regulations, net proceeds has been realized. The liquidator had filed deregistration with the Registrar of the Companies on
August 12, 2022 and the UBTL name has been strike off from the companies register on January 23, 2023.
UBL Switzerland AG, a wholly owned subsidiary of United Bank Limited has been wound up in December 2022. Final shareholder
meeting, held on December 22, 2022,unanimously approved liquidator financial statements and accordingly liquidation proceeds has
been realized.
14.1 Discontinued operation (Un-audited)
January - January -
March March
2023 2022
------- (Rupees in '000) -------
Mark-up / return / interest earned - -
Mark-up / return / interest expensed - -
Net mark-up / interest income - -
Non mark-up / interest income
Fee, commission and brokerage income - -
Foreign exchange income - 154
Income from derivatives - -
Other income - -
Total non mark-up / interest income - 154
Total income - 154
Non mark-up / interest expenses
Operating expenses - (22,018)
Total non mark-up / interest expenses - (22,018)
Provisions and write-offs - net - -
Profit / (loss) before taxation - 22,172
Taxation - -
Profit / (loss) after taxation - 22,172

2023 2022
15. OTHER ASSETS Note ------- (Rupees in '000) -------
Income / mark-up accrued in local currency 59,556,208 48,134,779
Income / mark-up accrued in foreign currencies 15.1 4,628,852 3,464,280
Advance taxation - net of provision for taxation 15.2 349,706 2,313,341
Receivable from staff retirement fund 2,455,628 2,517,968
Receivable from other banks against telegraphic transfers and demand drafts 33,610 2,960,752
Unrealised gain on forward foreign exchange contracts 5,097,570 3,437,641
Rebate receivable - net 1,989,033 2,030,996
Unrealised gain on derivative financial instruments 44,837 273,060
Suspense accounts - 84,755
Stationery and stamps on hand 357,194 418,454
Non-banking assets acquired in satisfaction of claims 40,424 40,800
Advances, deposits, advance rent and other prepayments 3,386,254 2,990,369
Dividend receivable 425,318 -
Commission receivable - Branchless Banking 564,577 561,390
Commission receivable - Bancassurance 80,626 208,047
Receivable against fraud & forgery and looted notes 543,472 632,418
Acceptances 24,453,909 16,502,130
Others 1,230,153 1,683,018
105,237,371 88,254,198
Provision held against other assets 15.3 (1,233,912) (1,244,972)
Other assets - net of provision 104,003,459 87,009,226
Surplus on revaluation of non-banking assets acquired in satisfaction
of claims - -
Other assets - total 104,003,459 87,009,226
15.1 Unrealised mark-up held in suspense amounting to Rs. 34,974.713 million (December 31, 2022: Rs. 26,547.699 million) against non-
performing overseas advances has been netted off.
15.2 The Income Tax returns of the Bank have been filed upto the tax year 2022 (accounting year ended December 31, 2021) and were
deemed to be assessed under section 120 of the Income Tax Ordinance, 2001 (Ordinance).
The income tax authorities have issued amended assessment orders for the tax years 2003 to 2022, and created additional tax
demands (including disallowances of provisions made prior to Seventh Schedule) of Rs.15,358 million (2022: Rs.14,695 million). The
Bank has filed appeals before the various appellate forums against these amendments. Where the appellate authorities have allowed
relief on certain issues, the assessing authorities have filed appeals before higher appellate forums. Where the appellate authorities
have not allowed relief the Bank has filed appeals before higher appellate forums. The management of the Bank is confident that the
appeals will be decided in favor of the Bank.
The tax returns for Azad Kashmir (AK) and Gilgit Baltistan (GB) branches have been filed upto the tax year 2022 (accounting year
ended December 31, 2021) under the provisions of section 120(1) read with section 114 of the Ordinance and in compliance with the
terms of the agreement between banks and the Azad Kashmir Council in May 2005. The returns filed are considered as deemed
assessment orders under the law.
The tax authorities have also carried out monitoring for Federal Excise Duty, Sales tax and withholding taxes covering period from
year ended 2005 to 2019. Consequently various addbacks and demands were raised creating a total demand of Rs. 2,632 million
(2022: Rs. 2,632 million). The Bank has filed appeals against all such demands and is confident that these would be decided in the
favor of the Bank.
The tax returns for Yemen, UAE and Qatar branches have been filed upto the year ended December 31, 2019, December 31, 2021
and December 31, 2022 respectively under the provisions of the laws prevailing in the respective countries, and are deemed as
assessed unless opened for reassessment.
The tax returns of UBL UK have been filed upto the accounting year ended December 31, 2021, under the provisions of the laws
prevailing in UK and are deemed as assessed unless opened for reassessment by the tax authorities. Additionally, tax clearance has
been issued for UBL UK till the accounting year 2019.
The tax returns of UBL FM have been filed upto the tax year 2022 (accounting year ended December 31, 2021) and were deemed to
be assessed under section 120 of the Income Tax Ordinance, 2001 (Ordinance).
There are no material tax contingencies in any of the subsidiaries.
2023 2022
------- (Rupees in '000) -------
15.3 Provision held against other assets
Advances, deposits, advance rent and other prepayments 54,108 54,834
Fraud & forgery and looted notes 543,472 632,418
Others 636,332 557,720
1,233,912 1,244,972
15.2.1 Movement of provision held against other assets
Opening balance 1,244,972 1,163,055
Exchange adjustments 86,872 74,408
Charge for the period / year 6,919 165,347
2,189 11,273
Transfers out - net - (348)
Amounts written off (100,121) (3,416)
Closing balance 1,233,912 1,244,972
16. CONTINGENT ASSETS
There were no contingent assets as at March 31, 2023 (December 31, 2022: Nil).
17. BILLS PAYABLE
In Pakistan 26,371,175 30,473,754

Outside Pakistan 1,172,900 6,008,958
27,544,075 36,482,712
18. BORROWINGS March 31, December 31,
2023 2022
Secured ------- (Rupees in '000) -------
Borrowings from the State Bank of Pakistan under:
Export refinance scheme 38,422,791 41,707,841
Refinance facility for modernisation of SME 590,167 543,586
Long term financing facility 16,613,098 17,390,998
Refinance scheme for payment of wages and salaries - 427,410
Renewable energy scheme 831,230 767,091
Temporary economic refinance facility 17,175,790 17,072,471
Refinance facility for combating COVID-19 432,493 431,902
Repurchase agreement borrowings 399,654,742 419,211,752
Financing facility for storage of agriculture products 44,688 48,125
Refinance for women entrepreneurs 36,410 26,624
Mudarbaha base open market operations (OMO) - 19,436,837
473,801,409 517,064,637
Repurchase agreement borrowings from other banks / NBFI 157,100 6,792,865

Borrowing from commercial banks by subsidiary - 1,705,598
473,958,509 525,563,100
Unsecured
Call borrowings - 39,830,000
Overdrawn nostro accounts 153,205 841,120
Other borrowings - -
153,205 40,671,120
474,111,714 566,234,220
19. DEPOSITS AND OTHER ACCOUNTS

In Local In Foreign In Local In Foreign
Total Total
Currency Currencies Currency Currencies
---------------------------------------------- (Rupees in '000) -------------------------------------------------
Customers
Current accounts - remunerative 4,138,876 18,001,744 22,140,620 4,104,403 15,066,606 19,171,009
Current accounts - non-remunerative 739,552,879 219,707,788 959,260,667 664,860,887 183,804,667 848,665,554
Saving deposits 593,327,005 81,680,114 675,007,119 580,708,939 83,552,037 664,260,976
Term deposits 150,113,485 345,864,487 495,977,972 162,072,945 274,074,375 436,147,320
Sundry deposits 26,984,180 1,364,948 28,349,128 4,437,495 2,291,409 6,728,904
Margin deposits 11,994,102 5,842,134 17,836,236 7,191,728 4,020,699 11,212,427
1,526,110,527 672,461,215 2,198,571,742 1,423,376,397 562,809,793 1,986,186,190
Financial Institutions
Current deposits 21,043,215 8,095,923 29,139,138 18,360,396 8,307,423 26,667,819
Saving deposits 141,828,031 108,867 141,936,898 16,002,797 86,058 16,088,855
Term deposits 98,900 10,071,233 10,170,133 1,765,668 3,848,902 5,614,570
162,970,146 18,276,023 181,246,169 36,128,861 12,242,383 48,371,244
1,689,080,673 690,737,238 2,379,817,911 1,459,505,258 575,052,176 2,034,557,434
19.1 Deposits eligible to be covered under insurance arrangements in accordance with DPC Circular No. 04 dated June 22, 2018 amounting to Rs.
1,198,561.666 million (December 31, 2022: Rs 1,174,510.768 million).
20. LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE

Minimum Finance Minimum Finance charges
Principal Principal
lease charges for lease for future
Outstanding Outstanding
payments future periods payments periods
---------------------------------------------- (Rupees in '000) -------------------------------------------------
Not later than one year 7,507 372 7,135 5,900 289 5,611
Later than one year and not
later than five years 7,597 127 7,470 5,829 99 5,730
15,104 499 14,605 11,729 388 11,341
21. SUBORDINATED DEBT
The Bank has issued fully paid up, rated, listed, perpetual, unsecured, subordinated, non-cumulative and contingent convertible debt
instruments in the nature of Term Finance Certificates (TFCs) under Section 66 of the Companies Act, 2017 which qualify as
Additional Tier I Capital as outlined by State Bank of Pakistan (SBP) under BPRD Circular No. 6 dated August 15, 2013.
Salient features of the Additional Tier 1 issue are as follows:
Issue Size Rs. 10,000 million

Issue Date January 29, 2019
Tenor Perpetual (i.e. no fixed or final redemption date)
Rating “AA+” (Double A Plus) by VIS Credit Rating Company Limited
Security Unsecured
Mark-up rate The TFCs shall carry mark-up at the rate of 3 Month KIBOR + 1.55%.
Mark-up payment frequency Mark-up shall be payable quarterly in arrears, on a non-cumulative basis
The Bank may, at its sole discretion, call the TFCs, at any time after five years from the Issue
Call option
Date subject to the prior approval of the SBP.
Mark-up on the TFCs shall only be paid from the current year's earnings and if the Bank is
Lock-in clause fully compliant with SBP’s Minimum Capital Requirement (MCR), Capital Adequacy Ratio
(CAR) and Liquidity Ratio (LR) requirements.
The TFCs shall, at the discretion of the SBP, be either permanently converted into ordinary
shares or permanently written off (partially or in full) pursuant to the loss absorbency clause
Loss absorbency clause
as stipulated in the “Instructions for Basel III Implementation in Pakistan” issued vide BPRD
Circular No. 6 dated August 15, 2013.
2023 2022
22. OTHER LIABILITIES Note ------- (Rupees in '000) -------
Mark-up / return / interest payable in local currency 33,778,496 39,687,924

Mark-up / return / interest payable in foreign currencies 1,309,796 1,095,809
Accrued expenses 7,770,785 5,865,502
Branch adjustment account 703,819 556,451
Deferred income 949,004 1,046,001
Unearned commission and income on bills discounted 673,095 810,809
Provision against off-balance sheet obligations 22.1 1,067,989 896,567
Unrealised loss on forward foreign exchange contracts 3,065,471 667,154
Unrealised loss on derivative financial instruments 1,800 1,357
Suspense accounts 9,015 -
Provision for post-retirement medical benefits 2,689,603 2,628,679
Payable to staff retirement fund 50,581 45,473
Provision for compensated absences 881,291 899,797
Deferred liabilities 1,098,143 967,918
Workers' Welfare Fund payable 7,439,256 6,939,099
Liabilities against ATM settlements 722,123 414,697
Insurance payable against consumer assets 293,814 380,743
Dividend payable 22.2 19,243,732 8,226,114
Unclaimed dividends 321,511 321,619
Acceptances 15 24,453,909 16,502,130
Charity fund balance 11,680 6,922
Lease liability against right-of-use assets 9,596,141 9,603,581
Levies and taxes payable 2,703,610 2,659,824
Others 1,811,172 1,703,653
120,645,836 101,927,823
2023 2022
22.1 Provision against off-balance sheet obligations ------- (Rupees in '000) -------
Opening balance 896,567 742,953

Exchange adjustments 210,914 189,127
Charge for the period / year 3,905 5,405
(39,492) (35,513)
Transfer out - net - -
Closing balance 1,067,989 896,567
22.2 This amount represents dividend payable to foreign shareholders subject to completion of regulatory formalities.
23. SURPLUS ON REVALUATION OF ASSETS

Attributable to Attributable to
Non- Non-
Equity Equity
Controlling Total Controlling Total
Holders Holders
interest interest
------------------------------------------------------------------------------------
Note (Rupees in '000) -------------------------------------------------------------------------------
Surplus / (deficit) arising on

revaluation of:
- Available for sale securities 9.1 (63,541,668) (2,239,378) (65,781,046) (38,373,567) (1,712,539) (40,086,106)
- Fixed assets 45,803,338 3,564,096 49,367,434 44,864,024 2,767,928 47,631,952
(17,738,330) 1,324,718 (16,413,612) 6,490,457 1,055,389 7,545,846
Deferred tax on surplus / (deficit)

on revaluation of:
- Available for sale securities (26,146,000) - (26,146,000) (15,600,599) - (15,600,599)

- Fixed assets 2,608,559 743,958 3,352,517 2,421,287 577,707 2,998,994
(23,537,441) 743,958 (22,793,483) (13,179,312) 577,707 (12,601,605)
- Assets of associates (35,821) - (35,821) (15,472) - (15,472)
5,763,290 580,760 6,344,050 19,654,297 477,682 20,131,979

2023 2022
Note ------- (Rupees in '000) -------
24. CONTINGENCIES AND COMMITMENTS
Guarantees 24.1 271,062,612 220,622,007

Commitments 24.2 1,341,490,199 1,155,417,950
Other contingent liabilities 24.3 14,192,937 14,822,814
1,626,745,748 1,390,862,771
24.1 Guarantees
Financial guarantees 109,206,955 84,241,944

Performance guarantees 152,300,664 129,275,378
Other guarantees 9,554,993 7,104,685
271,062,612 220,622,007
24.2 Commitments
Documentary credits and short-term trade-related transactions

- letters of credit 273,880,798 212,235,272
Commitments in respect of:

- forward foreign exchange contracts 24.2.2 833,908,240 743,037,351
- forward Government securities transactions 24.2.3 20,950,990 42,757,100
- derivatives 24.2.4 3,543,596 3,514,247
- forward lending 24.2.5 205,929,518 151,277,777
- operating leases 24.2.6 110,517 114,022
1,064,442,861 940,700,497
Commitments for acquisition of:

- fixed assets 2,168,733 1,544,753
- intangible assets 997,807 937,428
3,166,540 2,482,181
Others commitments - -
1,341,490,199 1,155,417,950
24.2.1 Commitments to extend credit
The Group makes commitments to extend credit in the normal course of its business but these being revocable
commitments do not attract any significant penalty or expense if the facility is unilaterally withdrawn.
2023 2021
------- (Rupees in '000) -------
24.2.2 Commitments in respect of forward foreign exchange contracts
Purchase 434,616,483 399,105,905

Sale 399,291,757 343,931,446
833,908,240 743,037,351
24.2.3 Commitments in respect of forward Government securities transactions
Purchase 19,250,990 41,457,100

Sale 1,700,000 1,300,000
20,950,990 42,757,100
2023 2021
Note ------- (Rupees in '000) -------
24.2.4 Commitments in respect of derivatives
Cross Currency Swaps - -
Interest Rate Swaps

Purchase 1,771,798 1,466,108
Sale 1,771,798 1,475,797
3,543,596 2,941,905
FX options
Purchase - 286,171
Sale - 286,171
- 572,342
24.2.5 Commitments in respect of forward lending
Undrawn formal standby facilities, credit lines and other

commitments to lend 24.2.5.1 125,655,184 94,438,118
Others 80,274,334 56,839,659
205,929,518 151,277,777
24.2.5.1 These represent commitments that are irrevocable because they cannot be withdrawn at the discretion of the Bank
without the risk of incurring significant penalty or expense.
2023 2022
------- (Rupees in '000) -------
24.2.6 Commitments in respect of operating leases
Not later than one year 100,143 105,966

Later than one year and not later than five years 7,912 6,144
Later than five years 2,462 1,912
110,517 114,022
24.3 Other contingent liabilities
24.3.1 Claims against the Group not acknowledged as debts 10,103,634 10,733,511
These mainly represent counter claims filed by the borrowers for restricting the Group from disposal of assets (such as
mortgaged / pledged assets kept as security).
Based on legal advice and / or internal assessments, management is confident that the matters will be decided in the
Group's favour and the possibility of any outcome against the Group is remote and accordingly no provision has been
made in these consolidated condensed interim financial statements.
24.3.2 During 2016, penalties amounting to Rs. 4.089 billion were levied by the FE Adjudication Court of the State Bank of
Pakistan relating to alleged contraventions of the requirements of foreign exchange regulations with respect to issuance
and certification of E-Forms by the Bank to certain customers (exporters) who failed to submit the export documents
there against. Consequently, foreign exchange on account of export proceeds have not been repatriated. The Bank
maintains that it fully discharged its liability, in accordance with the law and has filed a civil suit in the High Court of
Sindh challenging the levy of the penalty. The High Court has granted a stay on action being taken against the Bank.
The management, based on the advice from legal counsel, is confident that the view of the Bank will prevail and the
Bank will not be exposed to any loss on this account.
24.3.3 Punjab Revenue Authority issued show cause notice to UBL Fund Managers Limited requiring them to pay sales tax
under Punjab sales tax on Service Act 2012 on management fee earned in Punjab from May 22, 2013. The Company
has filed a petition on July 8, 2015 in the High Court of Sindh. A favorable outcome of this petition is expected.
24.4 For contingencies relating to taxation, refer note 15.2.

25. DERIVATIVE INSTRUMENTS
25.1 Product analysis
March 31, 2023 (Un-audited)
Forward purchase Forward sale contracts
FX options Interest Rate Swaps contracts of Government of Government Total
securities securities
Mark to
Notional Mark to Notional Mark to Notional Mark to Notional Notional Mark to Market
Market
principal Market Gain principal Market Gain principal Market Gain principal principal Gain
Gain
---------------------------------------------------------------------------- (Rupees in 000) ----------------------------------------------------------------------------
Hedging - - 3,543,596 - - - - - 3,543,596 -

Market making - - - - 19,250,990 13,014 1,700,000 30,023 20,950,990 43,037
- - 3,543,596 - 19,250,990 13,014 1,700,000 30,023 24,494,586 43,037
December 31, 2022 (Audited)
Forward purchase Forward sale contracts
FX options Interest Rate Swaps contracts of Government of Government Total
securities securities
Mark to
Notional Mark to Notional Mark to Notional Mark to Notional Mark to Market
Market Notional principal
principal Market Gain principal Market Gain principal Market Gain principal Gain
Loss
---------------------------------------------------------------------------- (Rupees in 000) ----------------------------------------------------------------------------
Hedging 286,171 - 2,941,905 250,160 - - - - 3,228,076 250,160

Market making 286,171 - - - 41,457,100 21,927 1,300,000 (384) 43,043,271 21,543
572,342 - 2,941,905 250,160 41,457,100 21,927 1,300,000 (384) 46,271,347 271,703
(Un-audited)
January - January -
March March
2023 2022
26. MARK-UP / RETURN / INTEREST EARNED Note ------- (Rupees in '000) -------
On:
Loans and advances 31,523,835 14,340,555
Investments 56,210,179 32,842,907
Lendings to financial institutions 3,673,882 1,948,334
Balances with banks 1,160,260 200,026
92,568,156 49,331,822
27. MARK-UP / RETURN / INTEREST EXPENSED

On:
Deposits 32,420,099 17,995,634
Borrowings 24,075,235 7,582,223
Subordinated debt 462,833 278,175
Cost of foreign currency swaps against foreign currency deposits / borrowings 376,321 862,095
Lease liability against right-of-use assets 286,239 250,302
57,620,727 26,968,429
28. FEE AND COMMISSION INCOME
Branch banking customer fee 662,082 576,337
Consumer finance related fee 368,319 320,301
Card related fees (debit and credit cards) 771,164 760,425
Investment banking fees 45,567 53,493
Financial Institution rebate / commission 145,239 124,225
Corporate service charges / facility fee 368,943 260,433
Commission on trade 574,789 208,110
Commission on guarantees 193,500 159,569
Commission on cash management 299,714 250,487
Commission on remittances including home remittances - net 664,793 610,921
Commission on bancassurance 254,873 479,123
Management fee 329,027 215,155
Rent on lockers 56,279 48,983
Others 47,282 149,897
4,781,571 4,217,459
29. (LOSS) / GAIN ON SECURITIES - NET
Realised 29.1 (615,948) 338,006
Unrealised - held for trading (21,184) 108,400
(637,132) 446,406
(Un-audited)
January - January -
March March
2023 2022
------- (Rupees in '000) -------
29.1 Realised (loss) / gain on:
Federal Government securities (86,791) 318,205
Shares 37,906 (623)
Foreign securities (567,063) 20,424
(615,948) 338,006
30. OTHER INCOME
Charges recovered 124,550 88,953
Rent on properties 37,407 16,520
Gain on sale of fixed assets - net 72,344 39,889
Loss on sale of Ijarah assets - net (105) (1,793)
Gain on trading liabilities - net - 132,933
234,196 276,502
31. OPERATING EXPENSES
Total compensation expense 6,509,765 5,200,761
Property expense
Rent and taxes 395,697 265,047
Insurance 67,513 70,175
Utilities cost 529,089 347,406
Security (including guards) 370,839 311,234
Repair and maintenance (including janitorial charges) 84,446 76,157
Depreciation on owned fixed assets 291,752 347,262
Depreciation on right-of-use assets 534,627 482,336
Depreciation on non-banking assets acquired in satisfaction of claims 376 31,854
Others 42,024 28,091
2,316,363 1,959,562
Information technology expenses
Software maintenance 632,507 442,342
Hardware maintenance 305,263 189,358
Depreciation 323,456 236,797
Amortisation 246,937 214,970
Network charges 252,832 180,704
Consultancy charges 46,856 73,252
1,807,851 1,337,423
Other operating expenses
Legal and professional charges 416,803 274,983
Outsourced service costs 479,222 384,300
Commission paid to branchless banking agents 78,613 92,928
Commission paid to sales force 412,009 384,143
Travelling and conveyance 58,054 30,026
Clearing charges 70,327 52,408
Depreciation others 381,367 355,025
Depreciation on Islamic financing against leased assets 33,910 40,752
Training and development 31,419 24,304
Postage and courier charges 84,986 125,775
Communication 88,562 101,545
Stationery and printing 269,041 210,352
Marketing, advertisement and publicity 211,107 263,379
Donations 17,387 -
Auditors' remuneration 53,297 29,871
Insurance 38,075 18,025
Deposit protection premium expense 469,804 431,462
Cash transportation and sorting charges 242,937 202,871
Entertainment 65,079 56,000
Banking service charges 926,068 660,272
Repairs and maintenance 282,739 199,105
Miscellaneous expenses 375,190 251,734
5,085,996 4,189,260
15,719,975 12,687,006
Note (Un-audited)
January - January -
March March
2023 2022
32. OTHER CHARGES ------- (Rupees in '000) -------
Penalties imposed by the SBP 1,438 5,196

Penalties imposed by other regulatory bodies of overseas branches 83 432
1,521 5,628
33. PROVISIONS AND WRITE-OFFS - NET
Provision / (reversals) for diminution in value of investments - net 9.2 4,071,351 (141,754)
(Reversals) / provision against loans and advances - net 10.3 (1,375,281) 755,642
Bad debts written-off directly 42,662 11,091
Provision / (reversals) against other assets - net 15.2.1 2,189 (2,136)
Reversal of provision against off-balance sheet obligations - net 22.1 (39,492) (54,749)
Recovery of written-off / charged-off bad debts (93,019) (206,868)
Other provisions / (reversals) and write-offs 106,195 (27,117)
2,714,605 334,109
34. TAXATION
Current 11,128,432 6,622,632

Prior years - -
Deferred (491,117) (258,114)
10,637,315 6,364,518
35. EARNINGS PER SHARE
Profit after tax attributable to equity shareholders of the Bank 14,226,896 9,304,098
----- (Number of shares) -----
Weighted average number of ordinary shares 1,224,179,687 1,224,179,687
------- (Rupees) -------
Earnings per share - basic and diluted 11.62 7.60
There were no convertible dilutive potential ordinary shares outstanding as at March 31, 2023 and March 31, 2022.
36. FAIR VALUE OF FINANCIAL INSTRUMENTS
The fair value of quoted securities other than those classified as held to maturity, is based on quoted market price. Quoted securities
classified as held to maturity are carried at cost. The fair value of unquoted equity securities, other than investments in associates, is
determined on the basis of the break-up value of these investments as per their latest available audited financial statements.
The fair value of unquoted debt securities, fixed term loans, other assets, other liabilities, fixed term deposits and borrowings cannot be
calculated with sufficient reliability due to the absence of a current and active market for these assets and liabilities and reliable data
regarding market rates for similar instruments.
In the opinion of the management, the fair value of the remaining financial assets and liabilities are not significantly different from their
carrying values since these are either short-term in nature or, in the case of customer loans and deposits, are frequently repriced.
36.1 The Group measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the
measurements:
Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the assets or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: Fair value measurements using input for the asset or liability that are not based on observable market data (i.e. unobservable
inputs).
36.1.1 Valuation techniques used in determination of fair values within level 2 and level 3.
Item Valuation approach and input used

Federal Government securities The fair value of Federal Government securities is determined using the prices / rates
available on Mutual Funds Association of Pakistan (MUFAP) / Bloomberg.
Non-Government debt securities The fair value of non-government debt securities is determined using the prices / rates
from MUFAP.
Foreign debt securities The fair value of foreign corporate and foreign government securities is determined using
the rates from Bloomberg.
Mutual Fund units The fair values of investments in mutual fund units are determined based on their net asset
values as published at the close of each business day.
Forward foreign exchange contracts and The fair values of forward foreign exchange contracts and forward Government securities
Forward Government securities transactions transactions are determined using forward pricing calculations.
Derivatives The fair valuation techniques include forward pricing and swap models using present value
calculations.
Fixed assets and non-banking assets acquired in satisfaction of claims Land, buildings and non-banking assets acquired in satisfaction of claims are revalued on
a periodic basis using professional valuers. The valuation is based on their assessment of
the market value of the assets. The effect of changes in the unobservable inputs used in
the valuations cannot be determined with certainty. Accordingly, a qualitative disclosure of
sensitivity has not been presented in these consolidated condensed interim financial
statements.
36.2 Fair value of financial assets

The following table provides the fair values of those of the Group's financial assets and liabilities that are recognised or disclosed at fair value in these consolidated condensed
interim financial statements.
March 31, 2023 (Un-audited)

Carrying Fair value
On-balance sheet financial instruments value Level 1 Level 2 Level 3 Total
Financial assets measured at fair value ----------------------------------(Rupees in '000)---------------------------------
Investments
- Federal Government Securities 1,169,173,504 - 1,169,173,504 - 1,169,173,504
- Foreign Bonds - Market Treasury Bills 36,965,074 - 36,965,074 - 36,965,074
- Foreign Bonds - sovereign 72,394,097 - 72,394,097 - 72,394,097
- Foreign Bonds - others 10,003,075 - 10,003,075 - 10,003,075
- Ordinary shares of listed companies 9,084,370 9,084,370 - - 9,084,370
- Mutual Fund units 201,117 - 201,117 - 201,117
- Non-Government debt securities 4,827,528 - 4,827,528 - 4,827,528
- Real Estate Investment Trust units 642,137 642,137 - - 642,137
1,303,290,902 9,726,507 1,293,564,395 - 1,303,290,902
Financial assets - disclosed but not measured at fair value

Investments
- Federal Government Securities 365,950,550 - 326,805,091 - 326,805,091
436,775,322 - 393,506,880 - 393,506,880
1,740,066,224 9,726,507 1,687,071,275 - 1,696,797,782
Off-balance sheet financial instruments - measured at fair value

Foreign exchange contracts - purchased and sold 833,908,240 - 2,032,099 - 2,032,099
FX options - purchased and sold - - - - -
Cross currency swaps - - - - -
Interest rate swaps 3,543,596 - - - -
Forward Government Securities - purchased and sold 20,950,990 - 43,037 - 43,037

Carrying Fair value
value Level 1 Level 2 Level 3 Total
On-balance sheet financial instruments ----------------------------------(Rupees in '000)---------------------------------
Financial assets measured at fair value
Investments
- Foreign Bonds - Market treasury Bond 5,973,644 - 5,973,644 5,973,644
- Ordinary shares of listed companies 9,550,377 9,550,377 - - 9,550,377
- Mutual Fund units 202,530 - 202,530 - 202,530
- Real Estate Investment Trust units 642,608 642,608 - - 642,608
1,016,600,455 10,192,985 1,006,407,470 - 1,016,600,455
Financial assets - disclosed but not measured at fair value
Investments
426,936,610 - 394,810,915 - 394,810,915
1,443,537,065 10,192,985 1,401,218,385 - 1,411,411,370

Fair value
Carrying value
Level 1 Level 2 Level 3 Total
----------------------------------(Rupees in '000)---------------------------------
Off-balance sheet financial instruments - measured at fair value
Foreign exchange contracts - purchased and sold 743,037,351 - 2,770,487 - 2,770,487
Interest Rate Swap - purchased and sold (net) 2,941,905 250,160 250,160
FX options - purchased and sold 572,342 - - - -
Forward Government Securities - purchased and sold 42,757,100 - 21,543 - 21,543
36.3 Fair value of non-financial assets March 31, 2023 (Un-audited)

Fair value
Carrying value
----------------------------------(Rupees in '000)---------------------------------
Fixed Assets 62,664,560 - - 62,664,560 62,664,560
Non-banking assets acquired in satisfaction of claims 40,424 - - 40,424 40,424
62,704,984 - - 62,704,984 62,704,984

Fair value
Carrying value
----------------------------------(Rupees in '000)---------------------------------
Fixed Assets 60,303,124 - - 60,303,124 60,303,124
Non-banking assets acquired in satisfaction of claims 40,800 - - 40,800 40,800
60,343,924 - - 60,343,924 60,343,924
36.4 Certain categories of fixed assets (land and buildings) and non-banking assets acquired in satisfactions of claims are carried at revalued amounts (level 3
measurement) determined by professional valuers based on their assessment of the market values.
37. SEGMENT INFORMATION

37.1 Segment details with respect to business activities
For the three months ended March 31, 2023 (Un-audited)
Corporate /
International
Commercial Treasury Branch Banking Islamic Banking Subsidiaries Others Total
branch operations
Banking
Profit and Loss ------------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------------
Net mark-up / return / profit 18,378,880 30,462,930 (23,180,977) 3,645,786 4,377,511 1,692,368 (429,069) 34,947,429
Inter segment (expense) / revenue - net (17,466,932) (38,214,280) 51,865,082 - - - 3,816,130 -
Non mark-up / return / interest income 1,724,108 3,378,309 2,572,022 97,671 268,363 579,614 476,786 9,096,873
Total income 2,636,056 (4,373,041) 31,256,127 3,743,457 4,645,874 2,271,982 3,863,847 44,044,302
Segment direct expenses 435,851 127,761 8,723,759 696,324 2,067,172 1,198,888 2,971,899 16,221,654
Inter segment expense allocation 191,148 22,521 1,792,953 - 131,160 - (2,137,782) -
Total expenses 626,999 150,282 10,516,712 696,324 2,198,332 1,198,888 834,117 16,221,654
Provision (charge) / reversal - net 346,522 (393,835) 125,929 (12,917) (2,697,150) (100,014) 16,860 (2,714,605)
Profit / (loss) before taxation
from continuing operations 2,355,579 (4,917,158) 20,865,344 3,034,216 (249,608) 973,080 3,046,590 25,108,043

Corporate /
International
branch operations
Banking
Profit and Loss ------------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------------
Net mark-up / return / profit 8,183,263 22,646,169 (13,378,776) 2,132,818 2,128,917 890,471 (239,469) 22,363,393
Inter segment (expense) / revenue - net (7,197,961) (23,936,875) 28,909,974 - - - 2,224,862 -
Non mark-up / return / interest income 1,029,192 1,761,967 2,797,888 99,486 613,163 31,556 395,310 6,728,562
Total income 2,014,494 471,261 18,329,086 2,232,304 2,742,080 922,027 2,380,703 29,091,955
Segment direct expenses 342,047 98,373 7,641,180 634,499 1,259,067 961,945 2,083,555 13,020,666
Inter segment expense allocation 119,115 20,678 1,729,097 - 96,222 - (1,965,112) -
Total expenses 461,162 119,051 9,370,277 634,499 1,355,289 961,945 118,443 13,020,666
Provision (charge) / reversal - net 960,013 (377,783) (387,008) (4,559) (557,712) 13,180 19,760 (334,109)
Profit before taxation
from continuing operations 2,513,345 (25,573) 8,571,801 1,593,246 829,079 (26,738) 2,282,020 15,737,180
As at March 31, 2023 (Un-audited)

Corporate /
International
branch operations
Banking
------------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------------
Balance Sheet
Cash and bank balances 11,337 89,221,738 71,145,933 16,435,674 117,882,742 4,507,874 - 299,205,298
Investments 12,204,384 1,400,571,327 - 125,878,617 161,152,944 37,030,958 8,816,313 1,745,654,543
Net inter segment lending - - 1,465,126,536 - - - 179,146,319 1,644,272,855
Lendings to financial institutions - 61,287,300 - - - 7,033 - 61,294,333
Advances - performing 440,497,205 10,382 49,089,001 75,380,071 128,955,921 219,341,178 3,185,513 916,459,271
Advances - non-performing net 2,485,032 - 528,420 71,233 10,995,308 1,321,328 17,904 15,419,225
Others 39,713,729 57,895,318 15,540,558 12,553,170 19,870,344 10,003,861 59,748,119 215,325,099
Total assets 494,911,687 1,608,986,065 1,601,430,448 230,318,765 438,857,259 272,212,232 250,914,168 4,897,630,624
Borrowings 59,000,423 399,963,116 5,125,353 10,017,891 - 4,931 - 474,111,714

Subordinated debt - - - - - - 10,000,000 10,000,000
Deposits and other accounts 91,679,281 264,124 1,486,852,025 197,661,850 360,156,464 241,576,589 1,627,578 2,379,817,911
Net inter segment borrowing 304,663,135 1,233,126,140 - - 106,483,580 - - 1,644,272,855
Others 34,028,248 7,015,482 56,908,801 5,103,567 6,045,896 1,498,463 37,604,059 148,204,516
Total liabilities 489,371,087 1,640,368,862 1,548,886,179 212,783,308 472,685,940 243,079,983 49,231,637 4,656,406,996
Equity 5,540,600 (31,382,797) 52,544,269 17,535,457 (33,828,681) 29,132,249 201,682,531 241,223,628
Total equity and liabilities 494,911,687 1,608,986,065 1,601,430,448 230,318,765 438,857,259 272,212,232 250,914,168 4,897,630,624
Contingencies and Commitments 671,376,895 253,413,023 33,172,565 8,090,704 585,185,415 74,530,390 976,756 1,626,745,748
As at December 31, 2022 (Audited)

Corporate /
International
branch operations
Banking
------------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------------
Balance Sheet
Cash and bank balances 9,822 67,084,130 18,506,973 7,841,130 64,491,640 1,787,596 - 159,721,291
Investments 11,095,886 1,152,692,777 - 124,800,008 113,900,331 37,073,369 11,377,382 1,450,939,753
Net inter segment lending - - 1,377,293,672 - - - 139,390,783 1,516,684,455
Lendings to financial institutions - 85,296,480 - - - 546,241 - 85,842,721
Advances - performing 600,765,401 14,337 51,511,037 102,195,674 152,526,997 172,446,497 3,268,329 1,082,728,272
Advances - non-performing net 2,615,887 10,927 496,965 37,613 8,366,249 1,937,296 27,679 13,492,616
Others 35,253,171 40,059,276 19,796,931 5,526,837 15,493,963 9,031,238 60,519,735 185,681,151
Total assets 649,740,167 1,345,157,927 1,467,605,578 240,401,262 354,779,180 222,822,237 214,583,908 4,495,090,259
Borrowings 63,395,001 420,042,838 5,195,348 69,092,536 6,792,865 1,715,632 - 566,234,220

Subordinated debt - - - - - - 10,000,000 10,000,000
Deposits and other accounts 59,231,055 3,359,197 1,331,491,355 151,693,394 291,357,894 196,261,388 1,163,151 2,034,557,434
Net inter segment borrowing 492,593,529 944,787,486 - - 79,303,440 - - 1,516,684,455
Others 23,313,085 2,485,234 70,453,015 7,203,929 9,887,892 1,775,399 23,303,322 138,421,876
Total liabilities 638,532,670 1,370,674,755 1,407,139,718 227,989,859 387,342,091 199,752,419 34,466,473 4,265,897,985
Equity 11,207,497 (25,516,828) 60,465,860 12,411,403 (32,562,911) 23,069,818 180,117,435 229,192,274
Total equity and liabilities 649,740,167 1,345,157,927 1,467,605,578 240,401,262 354,779,180 222,822,237 214,583,908 4,495,090,259
Contingencies and Commitments 509,367,455 221,290,949 30,493,205 7,626,255 576,647,813 44,499,667 937,427 1,390,862,771
38. RELATED PARTY TRANSACTIONS
The Group has related party transactions with its parent, directors, key management personnel, associates and other related parties including employee
benefit schemes of the Group.
The Group enters into transactions with related parties in the ordinary course of business and on substantially the same terms as for comparable
transactions with person of similar standing. Contributions to and accruals in respect of staff retirement benefits and other benefit plans are made in
accordance with the actuarial valuations / terms of the contribution plan. Remuneration to the executives / officers is determined in accordance with the
terms of their appointment.
Details of transactions with related parties during the year, other than those which have been disclosed elsewhere in these consolidated condensed interim
financial statements, are as follows:
As at March 31, 2023 (Un-audited)
Key
Other related
Parent Directors management Associates
parties
personnel
Statement of financial position------------------------------------------------------------------------------------------------------ (Rupees in '000) ---------------------------------------------------------------
Lendings to financial institutions

Opening balance - - - - -
Addition during the period - - - - -
Repaid during the period - - - - -
Transfers in / (out) - net - - - - -
Closing balance - - - - -
Investments
Opening balance - - - 7,657,008 5,300,368
Investment made during the period - - - 4,852,925 -
Investment disposed off during the period - - - (6,835,858) (4,432)
Transfers in - - - - 314,721
Equity method adjustments - - - (229,255) -
Closing balance - - - 5,444,820 5,610,657
Provision for diminution in value of investments - - - - 1,137,385
Provision written off - - - - -
Advances
Opening balance - 480 372,952 - 17,808,043
Addition during the period - 436 36,344 - 5,690,617
Repaid during the period - (897) (53,339) - (869)
Transfers in / (out) - net - - - - 1,799,877
Closing balance - 19 355,958 - 25,297,668
Provision held against advances - - - - 1,274,449
Other Assets
Income / mark-up accrued - - - 55,663 965,137
Receivable from staff retirement funds - - - - 2,455,628
Prepaid insurance - - - 196,309 -
Dividend receivable - - - - 237,970
Remuneration receivable from management of funds - - - 135,768 -
Sales load receivable - - - 11,527 -
Formation cost receivable - - - 9,282 -
Other receivable - - - 132,425 -
Borrowings
Borrowings during the period - - - - 157,100
Settled during the period - - - - -
Closing balance - - - - 157,100
Deposits and other accounts

Opening balance 14,327 13,924,363 142,761 1,665,575 16,000,091
Received during the period 15,322 20,046,112 203,365 50,260,890 83,117,861
Withdrawn during the period (15,433) (19,685,570) (263,895) (50,127,888) (78,848,056)
Transfers in - net - - - - (184,310)
Closing balance 14,216 14,284,905 82,231 1,798,577 20,085,586
Other Liabilities
Interest / mark-up payable on deposits and borrowings 353 40,404 107 7,321 27,597
Dividend payable 13,898,036 393,117 - - 109,449
Payable to staff retirement fund - - - 50,581
Unearned income - - - - 19,065
Other payable - 22,330 - - -
Contingencies and Commitments

Letter of guarantee - - - - -
As at December 31, 2022 (Audited)

Key
Other related
parties
personnel
------------------------------------------------------------------------------------------------------ (Rupees in '000) ---------------------------------------------------------------
Lendings to financial institutions

Opening balance - - - - 2,355,115
Addition during the year - - - - 3,996,304
Repaid during the year - - - - (6,351,419)
Transfers in / (out) - net - - - - -
Investments
Opening balance - - - 8,436,634 4,654,612
Investment made during the year - - - 44,929,925 645,756
Investment redeemed / disposed off during the year - - - (44,906,407) -
Transfers out - - - - -
Equity method adjustments - - - (803,144) -
Closing balance - - - 7,657,008 5,300,368
Provision for diminution in value of investments - - - - 952,719
Advances
Opening balance - 645 332,006 - 1,768
Addition during the year - 488 163,108 - 24,653,259
Repaid during the year - (653) (122,566) - (6,846,111)
Transfer in / (out) - - 404 - (873)
Closing balance - 480 372,952 - 17,808,043
Provision held against advances - - - - 1,274,449
Other Assets
Income / mark-up accrued - - - 42,198 711,313
Receivable from staff retirement funds - - - - 2,517,968
Prepaid insurance - - - 58,739 -
Remuneration receivable from management of funds - - - 112,912 -
Sales load receivable - - - 13,780 -
Formation cost receivable - - - 9,282 -
Receivable against redemption of units of mutual funds - - - 249,057 -
Borrowings
Borrowings during the year - - - - 1,769,000
Settled during the year - - - - (1,769,000)
Deposits and other accounts

Opening balance 18,601 7,769,284 72,204 2,209,154 16,151,170
Received during the year 19,125 42,580,952 924,965 145,487,253 264,099,764
Withdrawn during the year (23,399) (36,425,873) (869,673) (146,030,832) (264,257,733)
Transfers in - net - - 15,265 - 6,890
Closing balance 14,327 13,924,363 142,761 1,665,575 16,000,091
Other Liabilities
Interest / mark-up payable on deposits and borrowings 1,106 26,310 407 14,382 37,353
Dividend Payable 8,212,476 222,289 - - 57,128
Payable to staff retirement fund - - - - 37,824
Unearned income - - - - 29,608
Other payable - 5,100 - 5,982 -
Contingencies and Commitments

Forward Government securities sale - - - - -

Key
Other related
parties
personnel
------------------------------------------------------------------------------------------------------ (Rupees in '000) ---------------------------------------------------------------
Profit and Loss Account
Income
Mark-up / return / interest earned - - 5,720 25,155 826,932
Commission / charges recovered - 7 50 3,950 3,766
Dividend income - - - 50,660 237,970
Net gain on sale of securities - - - 12,064 -
Other income - - - - 10,544
Gain on sale of fixed assets - - 64 360 -
Remuneration from management of fund - - - 325,243 -
Sales load - - - 5,162 -
Reversal of provision - - - - 7,034
Switch revenue - - - - 78,292
Expenses
Mark-up / return / interest paid 1,106 136,468 1,813 49,734 132,250
Remuneration paid - - 200,666 - -
Post employment benefits - - - - -
Directors' fees and allowances - 28,030 - - -
Net charge for defined contribution plans - - 12,703 - 109,831
Net charge for defined benefit plans - - - - 108,890
Provision - net - - - - 70,693
Other expenses - - 10,458 - 9,771
Clearing charges - - - - 42,883
Membership, subscription, sponsorship and maintenance charges - - - - 19,734
Other information
Dividend paid - - - - -
Insurance premium paid - - 821 283,061 -
Insurance claims settled - - - 138,401 -

Key
Other related
parties
personnel
------------------------------------------------------------------------------------------------------ (Rupees in '000) ---------------------------------------------------------------
Profit and Loss Account

Income
Mark-up / return / interest earned - - 4,151 12,694 97,142
Commission / charges recovered - 31 347 10,302 6,703
Dividend received - - - 30,730 203,720
Net gain on sale of securities - - - 17,681 -
Other income - - - - 5,850
Gain on sale of fixed assets - - 33 - -
Remuneration from management of fund - - - 211,901 -
Sales load - - - 7,662 -
Reversal of provision - - - - -
Switch revenue - - - - 62,616
Expenses
Mark-up / return / interest paid - 122,047 877 65,137 209,740
Remuneration paid - - 512,236 - -
Post employment benefits - - 2,088 - -
Directors' fees and allowances - 30,150 12,197 - -
Net charge for defined contribution plans - - 8,527 - 164,958
Net charge for defined benefit plans - - - - 140,955
Other expenses - - 14,798 - 60,984
Clearing charges - - - - 36,213
Membership, subscription, sponsorship and maintenance charges - - - - 2,423
Custody charges - - - - -
Seminar and membership fees - - - - -
Other information
Dividend paid 2,526,916 70,267 2,080 32,595 611,138
Insurance premium paid - - 463 235,587 -
Insurance claims settled - - - 120,922 -
39. CAPITAL ADEQUACY, LEVERAGE RATIO AND LIQUIDITY REQUIREMENTS (Un-audited) (Audited)
2023 2022
------- (Rupees in '000) -------
Minimum Capital Requirement (MCR):
Paid-up capital (net of losses) 12,241,797 12,241,797
Capital Adequacy Ratio (CAR):

Eligible Common Equity Tier 1 (CET 1) Capital 149,179,868 150,929,551
Eligible Additional Tier 1 (ADT 1) Capital 10,228,619 10,095,479
Total Eligible Tier 1 Capital 159,408,487 161,025,030
Eligible Tier 2 Capital 51,032,947 52,663,742
Total Eligible Capital (Tier 1 + Tier 2) 210,441,434 213,688,772
Risk Weighted Assets (RWAs):

Credit Risk 1,019,538,765 913,752,463
Market Risk 106,230,001 103,805,093
Operational Risk 209,271,004 209,271,004
Total 1,335,039,770 1,226,828,560
Common Equity Tier 1 Capital Adequacy Ratio 11.17% 12.30%

Tier 1 Capital Adequacy Ratio 11.94% 13.13%
Total Capital Adequacy Ratio 15.76% 17.42%
The SBP through its BSD Circular No. 07 dated April 15, 2009 has prescribed the minimum paid-up capital (net of
accumulated losses) for Banks to be raised to Rs.10,000 million by the year ending December 31, 2015. The paid-up
B1capital of the Bank for the three months ended March 31, 2023 stood at Rs.12,241.797 million (December 31, 2022:
Rs.12,241.797 million) and is in compliance with SBP requirements. Banks are also required to maintain a minimum
Capital Adequacy Ratio (CAR) of 10.0% plus capital conservation buffer of 2.5% of the risk weighted assets of the Bank.
In order to dampen the effects of COVID-19, the State Bank of Pakistan under BPRD Circular Letter No. 12 of 2020 has
given a regulatory relief and reduced the Capital Conservation Buffer (CCB) as prescribed vide BPRD Circular No. 6 of
August 15, 2013, for the time being, from its existing level of 2.5% to 1.5%, till further instructions.
Further, under Basel III instructions, Banks are also required to maintain a Common Equity Tier 1 (CET 1) ratio and Tier 1
ratio of 6.0% and 7.5%, respectively, as at March 31, 2023. The Bank is fully compliant with prescribed ratios as the
Bank’s CAR is 15.76% whereas CET 1 and Tier 1 ratios stood at 11.17% and 11.94% respectively.
Furthermore, under the SBP’s Framework for Domestic Systemically Important Banks (D-SIBs) introduced vide BPRD
Circular No. 04 of 2019 dated April 13, 2019, UBL has been designated as a D-SIB under letter BSD-
3/Bank/UBL/394468/2022 dated December 20, 2022. In line with this framework, the Bank is required to meet the Higher
Loss Absorbency (HLA) capital charge of 0.5%, in the form of Additional CET 1 capital, on a standalone as well as
consolidated level. The prescribed HLA under D-SIB shall remain effective till the next D-SIB designation announcement
is made by State Bank of Pakistan.
2023 2022
------- (Rupees in '000) -------
Leverage Ratio (LR):
Eligible Tier-1 Capital 159,408,487 161,025,030
Total Exposures 4,333,214,204 3,937,237,802
Leverage Ratio 3.68% 4.09%
Liquidity Coverage Ratio (LCR):

Total High Quality Liquid Assets 913,938,644 1,014,739,744
Total Net Cash Outflow 373,165,282 316,508,188
Liquidity Coverage Ratio 244.92% 320.60%
Net Stable Funding Ratio (NSFR):

Total Available Stable Funding 2,297,523,933 2,194,772,092
Total Required Stable Funding 1,340,792,520 1,355,300,059
Net Stable Funding Ratio 171.36% 161.94%
40. ISLAMIC BANKING BUSINESS
The Bank operates 150 (December 31, 2022: 150) Islamic Banking branches and 501 (December 31, 2022: 219)
Islamic Banking windows.
STATEMENT OF FINANCIAL POSITION
Note 2023 2022
--------- (Rupees in '000) ---------
ASSETS
Cash and balances with treasury banks 15,351,003 7,103,365
Balances with other banks 1,084,671 737,765
Due from financial institutions - -
Investments 40.1 125,878,617 124,800,008
Islamic financing and related assets - net 40.2 75,451,304 102,233,287
Fixed assets 1,382,825 1,431,431
Intangible assets - -
Due from Head Office 3,640,781 3,873,536
Other assets 7,519,197 4,095,406
230,308,398 244,274,798
LIABILITIES
Bills payable 1,821,203 2,874,226
Due to financial institutions 10,017,891 69,092,536
Deposits and other accounts 40.3 197,661,850 151,693,394
Other liabilities 3,282,365 4,329,703
212,783,309 227,989,859
NET ASSETS 17,525,089 16,284,939
REPRESENTED BY
Islamic Banking Fund 2,181,000 2,181,000
Reserves - -
Deficit on revaluation of assets (2,714,898) (920,832)
Unappropriated profit 40.4 18,058,987 15,024,771
17,525,089 16,284,939
CONTINGENCIES AND COMMITMENTS 40.5
(Un-audited)
January - January -
PROFIT AND LOSS ACCOUNT
--------- (Rupees in '000) ---------
Profit / return earned 40.6 7,638,528 3,493,508
Profit / return expensed 40.7 3,992,742 1,360,690
Net profit / return 3,645,786 2,132,818
Other income
Fee and commission income 76,681 91,641
Foreign exchange income 718 1,224
Loss on securities - net - -
Other Income 20,272 6,621
Total other income 97,671 99,486
Total income 3,743,457 2,232,304
Other operating expenses 696,324 634,499
Profit before provisions 3,047,133 1,597,805
Provisions / (reversals) and write-offs - net 12,917 4,559
Profit before taxation 3,034,216 1,593,246
Taxation 1,304,713 621,366
Profit after taxation 1,729,503 971,880
40.1 Investments by segments
As at March 31, 2023 (Un-audited) As at December 31, 2022 (Audited)
Cost / Amortised Provision for Carrying Cost / Amortised Provision for Carrying
Deficit Deficit
cost diminution Value cost diminution Value
----------------------------------------------------------------------------------------- (Rupees in '000) -----------------------------------------------------------------------------------------

- Ijarah Sukuks 111,745,274 - (2,714,898) 109,030,376 112,516,387 - (920,832) 111,595,555
- Islamic Naya Pakistan Certificate 7,332,935 - - 7,332,935 4,806,162 - - 4,806,162
119,078,209 - (2,714,898) 116,363,311 117,322,549 - (920,832) 116,401,717
Non Government Debt Securities

-Listed 487,500 - - 487,500 524,554 - - 524,554
-Unlisted 9,027,806 - - 9,027,806 7,873,737 - - 7,873,737
9,515,306 - - 9,515,306 8,398,291 - - 8,398,291
Total Investments 128,593,515 - (2,714,898) 125,878,617 125,720,840 - (920,832) 124,800,008
2023 2022
------------------------------------- (Rupees in '000) -------------------------------------
40.2 Islamic financing and related assets
Ijarah 300,460 283,654

Murabaha 282,882 507,528
Musharakah 28,544,837 55,706,384
Diminishing Musharakah 26,057,902 25,940,267
Mera Pakistan Mera Ghar (MPMG) 5,261,288 5,189,100
Istisna 141,760 54,086
Islamic Export Refinance scheme - Musharakah 5,899,743 5,499,743
Islamic Export Refinance scheme - Istisna 373,847 553,570
Advances against Islamic assets
Advances against Ijarah 20,358 40,268
Advances for Diminishing Musharakah 1,295,642 1,304,675
Advances for Murabaha 37,000 64,498
Advances agaisnt Mera Pakistan Mera Ghar 153,381 279,014
Advances for Istisna 664,252 429,444
Advances against Ameen ITERF 3,953,348 3,953,348
Inventory related to Islamic financing
Istisna 4,900 193,698
Profit and other receivables against financings 2,653,699 2,442,188
Gross Islamic financing and related assets 75,645,299 102,441,465
Less: Provision against Islamic financing

- Specific (90,413) (99,851)
- General (103,582) (108,327)
(193,995) (208,178)
Islamic financing and related assets - net of provision 75,451,304 102,233,287
40.3 Deposits and other accounts
Customers
Current deposits 101,440,931 84,267,286
Saving deposits 34,728,618 36,040,108
Term deposits 31,522,953 30,318,011
167,692,502 150,625,405
Financial Institutions
Current deposits 193,445 160,110
Saving deposits 29,745,903 897,879
Term deposits 30,000 10,000
29,969,348 1,067,989
197,661,850 151,693,394
40.3.1 Deposits eligible to be covered under insurance arrangements in accordance with DPC Circular No. 04 dated June 22, 2018 amounting to Rs. 80,644.093 million (December
31, 2022: Rs. 76,771.045 million).
40.4 Islamic Banking Business Unappropriated Profit 2023 2022
------------------------------------- (Rupees in '000) -------------------------------------
Opening balance 15,024,771 8,094,948
Profit for the period / year 3,034,216 6,929,823
18,058,987 15,024,771
Taxation (1,304,713) (3,665,876)
Closing balance 16,754,274 11,358,895
40.5 Contingencies and commitments
- Guarantees 22,074 22,074

- Commitments 8,068,630 7,604,181
8,090,704 7,626,255
(Un-audited)
January - January -
40.6 Profit / Return earned ------------------------------------- (Rupees in '000) -------------------------------------

On:
Financing 2,969,365 1,409,377
Investments 4,531,130 1,939,100
Placements 82,304 78,894
Rental Income from Ijarah 55,729 66,137
7,638,528 3,493,508
40.7 Profit / Return expensed
On:
Deposits and other accounts 2,721,715 1,302,081
Due to Financial Institutions 1,241,145 30,159
Others 29,882 28,450
3,992,742 1,360,690
40.8 Disclosures for profit and loss distribution and pool management
The Bank operates general and special pools for deposits and inter-bank funds accepted / acquired under Mudarabah,
Wakalah and Musharakah modes.
Under the General deposits pools, the Bank accepts funds on Mudarabah basis from depositors (Rab-ul-Maal) where the
Bank acts as Manager (Mudarib) and invests the funds in the Shariah Compliant modes of financing, investments and
placements. When utilising investing funds, the Bank prioritizes the funds received from depositors over the funds generated
from own sources after meeting the regulatory requirement relating to such deposits.
Specific pools are operated for funds acquired / accepted from the Corporate Customers, other banks and State Bank of
Pakistan for liquidity management and Islamic Export Refinance to the Bank's customers respectively under the Musharakah
/ Mudarabah / Wakalah modes.
General Pool(s)
For General Pools, the Bank allocates PKR financing to Corporate, SME and Consumer Finance customers in diversified
sectors and avenues of the economy / business and Investments in Sovereign Guarantee Sukuk, Corporate Sukuk, Bai
Muajjal with Government of Pakistan, are also done through General Pools. All remunerative deposits are tagged to these
general pools and their funds generated from the depositors are invested on priority basis.
IERS Pool(s)
The IERS pool assets comprise of Sovereign Guarantee Sukuk, and financing to Corporate Customers and exporters as
allowed under the applicable laws and regulations, and as such are exposed to lower credit risk. The Musharakah with SBP
under IERS is tagged to the IERS pool.
Treasury Pool(s)
The Treasury pool assets generally comprise of Sovereign Guarantee Sukuk and financing under diminishing musharakah,
Ijarah facility and the related liability of the Treasury pool comprise of Musharakah / Wakalah / Mudarabah from financial
institutions. These pools are created to meet the liquidity requirements of the Holding company.
Special Pool(s) - LCY
Separate pool(s) are created where the customers desire to invest in high yield assets. These pool(s) rates are higher than
the general pool depending on the assets. In case of loss in special pool, the loss will be borne by the special pool members.
The net return on the pool is arrived at after deduction of direct costs from the gross return earned on the pool. From the net
return, profit is paid to the Mudarib in the ratio of the Mudarib’s equity in the pool to the total pool. The balance represents the
distributable profit.
Special Pool(s) - FCY
UBL also manages Foreign Currency (FCY) special pools. The objective of the Pool is to meet the FCY Liquidity requirement.
The funds in this pool are generally deployed in FCY Placement of funds with State Bank under the mode of Islamic Naya
Pakistan Certificate, loss (if any) is borne by the Rab-ul-Maal as per ratio of investment of the pool.
Equity Pool(s)
All other assets including fixed assets, advance against financing, bai-salam financing and subsidized financing to Bank's
employees are tagged to equity pool. To safeguard the interest of customers, all high risk investments are done through
equity pool. The Holding company as Mudarib in the general pools is responsible for financing costs / assets such as land,
building, furniture, fixtures, computers and IT system from its own sources / equity.
During the period, the Bank has given General Hiba to the depositors in general and specific pool, keeping in view the
prescribed guidelines of Pool Management provided by the SBP. However, Hiba are given at the sole discretion of the Bank
without any contractual commitment with the depositors.
The Mudarib’s share on Deposits for the period ended March 31, 2023 is Rs. 1,565.767 million (45.04% of distributable profit
of Mudarabah Pool). of this, an amount of Rs. 728.280 million (46.51% of Mudarib share) was distributed back to depositors
as Hiba. The rate of profit earned on average earning assets was 16.18% per annum and the rate of profit paid on average
deposits was 12.29% per annum.
The risk characteristics of pools
The risk characteristic of each pool mainly depends on the assets and liability profile of the pool. As per the Bank 's policy,
relatively low risk / secured financing transactions and assets are allocated to the pool. The Bank maintains General Pools,
Special Pools, FI Pools, IERS pool and Equity pool. All pools are exposed to general credit risk, asset ownership risk and
Profit rate risk of underlying assets involved.
The Parameters used for allocation of profit, expenses and provisions to the Pool
- The profit of each deposit pool is calculated on all the remunerative assets booked by utilising the funds from the pool.
- Profit of pool is calculated after deduction of expenses directly incurred in earning the income of such pool, the directly
related costs comprise of depreciation on ijarah assets, takaful premium, Amortisation of premium on investment etc.
- No expense of general or administrative nature is charged to the pools.
- No provisions against any non-performing asset of the pool is passed on to the pool except on the actual loss / write-off of
such non-performing asset.
- The profit of the pool is shared between equity and Rab-ul-Maal of the pool on the basis of Musharakah at gross level
(before charging of mudarib fee) as per the investment ratio of the equity.
- The profit of the pool is shared among the members of the pool on pre-defined mechanism based on the weightages
announced before the profit calculation period after charging of mudarib fee.
The Bank managed following pools during the period.

Profit rate
Mudarib fee / Average Percentage of
and Average Amount of Mudarib
No of Nature of Profit Musharakah profit rate / Mudarib share
weightages profit rate share transferred
Pools Pool Sharing ratio share / return transferred
announce- earned through Hiba
Wakalah Fee distributed through Hiba
ment period
% % Rupees in '000 % % Rupees in '000
ADMA Pools 3 Mudarabah Monthly 12.23% 35.00% 101,197 8.08% 3.05% 3,086
Special Pools 42 Mudarabah Monthly 17.10% 20.03% 87,120 14.35% 49.73% 43,321
IERS Pools 6 Musharakah Monthly 18.13% 80.67% 599,379 9.34% 0.00% -
FCY Pools 6 Mudarabah Monthly 2.13% 50.00% 2,240 1.06% 0.00% -
General Pools 3 Mudarbaha Monthly 16.61% 49.99% 1,377,451 12.39% 49.26% 678,502
Treasury Pools 4 Mudarabah Monthly 14.68% 6.29% 21,135 16.25% 5.07% 1,071
Treasury Pools 64 Musharakah Monthly 15.72% 25.47% 204,254 16.29% 0.00% -
Profit rate
Mudarib fee / Average Percentage of
and Average Amount of Mudarib
No of Nature of Profit Musharakah profit rate / Mudarib share
weightages profit rate share transferred
Pools Pool Sharing ratio share / return transferred
announce- earned through Hiba
Wakalah Fee distributed through Hiba
ment period
% % Rupees in '000 % % Rupees in '000
ADMA Pools 3 Mudarabah Monthly 9.68% 50.00% 45,466 7.31% 51.13% 23,249
Special Pools 33 Mudarabah Monthly 11.53% 18.84% 117,859 10.04% 31.77% 37,449
IERS Pools 6 Musharakah Monthly 7.63% 0.00% 136,531 2.00% 0.00% -
FCY Pools 6 Mudarabah Monthly 2.06% 50.00% 858 1.07% 0.00% -
General Pools 3 Mudarabah Monthly 10.13% 50.00% 575,999 5.99% 18.22% 104,972
Treasury Pools 6 Musharakah Monthly 10.61% 0.00% 355,968 10.08% 0.00% -
2023 2022
-------Rupees in '000-----
40.9 Deployment of Mudarabah based deposits by class of business
Chemical and pharmaceuticals 6,050,475 6,337,407

Agriculture 28,508,881 52,739,670
Textile 6,865,440 9,188,530
Financial 1,699,671 1,352,765
Food industries 97,780 106,665
Plastic 301,987 253,444
Individuals 16,616,377 16,789,978
Production and transmission of energy 18,891,559 18,177,556
Government of Pakistan Securities 116,363,311 115,615,288
Others 7,202,737 7,417,935
202,598,218 227,979,238
41. YEMEN OPERATIONS
Despite risky situation and continued operational losses the Bank has been striving to honor liabilities for past eight years.
However, on account of several factors, including but not limited to fragile political and economic situation in Yemen,
bankruptcy of CBY Sana’a, existence of two Central Banks (i.e. CBY Sana’a and CBY Aden), has resulted in illiquid market,
which does not appears to be reversed in near future.
It is no longer possible for the Bank to continue its operations in Yemen due to reasons not attributable to the Bank and
caused by circumstances entirely beyond the Bank’s control. Therefore, Bank has completely exited from Yemen. The Bank
is cognizant of the associated risks arising out of its exit from Yemen.
42. NON-ADJUSTING EVENT AFTER THE BALANCE SHEET DATE
The Board of Directors in its meeting held on April 28, 2023 has declared an interim cash dividend in respect of quarter ended
March 31, 2023 of Rs. 11.0 per share (March 31, 2022: Rs. 5.0 per share). These consolidated condensed interim financial
statements for the three months ended March 31, 2023 do not include the effect of these appropriations which will be
accounted for subsequent to the period end.
43. GENERAL
43.1 Comparative information has been reclassified, rearranged or additionally incorporated in these consolidated condensed
interim financial statements for the purposes of better presentation. However, there is no material reclassification to report.
43.2 Figures have been rounded off to the nearest thousand rupees unless otherwise stated.
44. DATE OF AUTHORISATION
These consolidated condensed interim financial statements were authorised for issue on April 28, 2023, by the Board of
Directors of the Bank.

UBL Interim Financial Statements March 2023 Consolidated

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UBL Interim Financial Statements March 2023 Consolidated

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United Bank Limited

Non-controlling interest 11,958,910 9,125,301

CONTINGENCIES AND COMMITMENTS 24

Profit after taxation from continuing operations 14,470,728 9,372,662

Profit after taxation 14,470,728 9,394,834

Earnings per share for profit from continuing operations attributable to

January - March January - March

------------------------------------ (Rupees in '000) ------------------------------------

Profit after taxation for the period attributable to:

Movement in surplus / (deficit) on revaluation of fixed assets - net of tax

Remeasurement loss on defined benefit obligations - net of tax

Movement in surplus on revaluation of non-banking assets - net of tax - 15,882

Total comprehensive income for the period 23,048,970 5,582,687

---------------------------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------------------

1. STATUS AND NATURE OF BUSINESS

The Group consists of:

2.1 STATEMENT OF COMPLIANCE

3. SIGNIFICANT ACCOUNTING POLICIES

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

5. FINANCIAL RISK MANAGEMENT

6. CASH AND BALANCES WITH TREASURY BANKS

With State Bank of Pakistan in

With other central banks in

7. BALANCES WITH OTHER BANKS

8. LENDINGS TO FINANCIAL INSTITUTIONS

Call / clean money lendings 7,033 546,241

Note ------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------

Available for sale securities

Federal Government securities

Total 14,837,364 9,771,155 11,899,761 7,819,453

10.1.1 In local currency 574,957,281 765,445,157

10.3 Particulars of provision against advances

March 31, 2023 (Un-audited) December 31, 2022 (Audited)

Opening balance 82,038,458 10,236,536 92,274,994 74,961,336 7,470,576 82,431,912

Capital work-in-progress 11.1 1,192,177 1,054,194

11.1 Capital work-in-progress

Civil works 1,048,870 856,514

11.2 Additions to fixed assets March 2023 March 2022

------------- (Rupees in '000) -----------

Capital work-in-progress - net additions 137,983 239,777

Property and equipments

Right-of-use assets 503,504 638,822

Total 1,312,301 1,408,259

Building on leasehold land - 32,500

Derecognition of right-of-use assets 26,083 94,872

Total 33,853 128,945

Capital work-in-progress - Computer software 506,746 384,706

Capital work-in-progress - net additions 122,040 238,489

Deductible temporary differences on

Provisions and write-offs - net - -

Profit / (loss) before taxation - 22,172

Profit / (loss) after taxation - 22,172

There are no material tax contingencies in any of the subsidiaries.

16. CONTINGENT ASSETS

17. BILLS PAYABLE

In Pakistan 26,371,175 30,473,754

Repurchase agreement borrowings from other banks / NBFI 157,100 6,792,865

19. DEPOSITS AND OTHER ACCOUNTS

March 31, 2023 (Un-audited) December 31, 2022 (Audited)