United Bank Limited

Investor Presentation 9M 2022

Performance Highlights and

Business Outlook
 Overview of the UBL Group
One of the largest and most profitable Banks in Pakistan

One of the largest branch Largest Pakistani Bank based in Strongest Credit Rating
networks in Pakistan the Middle East, branches in
Over 60 years of successful with 1,338 branches, UAE, Bahrain and Qatar, Entity Rating

AAA /A-1+
operational history (150 Islamic) serving over outreach extended through fully
11 million customers licensed bank in UK VIS Credit Rating Co.

Best Digital Bank in 2022

Highly experienced senior For the 3rd consecutive year
management team with Subsidiaries and affiliates include
Asset Management, Insurance
diversified experience of large
services and leading Microfinance
local and global banking
bank in Pakistan
institutions
ASIAMONEY

Best Mobile App &

Pioneer of Branchless & Digital Emerging Technology’ Award
Market leader in Home
Delivered Consistent ROE of Banking in Pakistan. More than
Remittances with over USD 6
20%+ in last few years with strong 3 mln customers and over
dividend yields bln + inflows each year, over 10,000 Omni agents in 800
USD 700+ mln RDA flows Pakistan Digital Award 2021
cities and towns across Pakistan
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 The Big Picture on Macros and UBL’s performance in 9M’22
Overall economy impacted by global inflation, pressure on
UBL announces Historic Results in 9M’22
currency…transition to stability is key
Key challenges for the market in 2022
RS
29%  Fed rate hikes spur negative impact on all emerging markets
PBT
50.7 B YoY
 Interest Rate regime is highest in last 15 years (inflation at 23%+)

RS  Higher taxation measures to restrict consumption – slowdown economy

18%*
PAT
18.8 B YoY  Banking sector taxes now significantly higher

UBL performance remains resilient….

ROE
Normalised
23% 410 *
bps UBL maintains ‘AAA’ Rating by VIS (Release June 2022)
Actual ROE 14.4%
Better asset quality with strong controls and discipline

18.4%
7% above Re-investment in GoP Securities at higher rates – NII up 36% YoY
CAR
Minimum level
Strong FX flows driven by trade and remittances

RS
Strong NPL recoveries of Rs 2.2 bln in 9M’22
18%
EPS
15.33 YoY C/I Ratio improves to 40% in 9M’22 (44% in 9M’21)
Digital customer base grows by 23% to 2.5 million mobile app users
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* impacted by changes in applicable tax laws on banking sector
 An overview of the core drivers of business performance in 2022
Strong revenue buildup driven by core deposits and aggressive investment strategy

UBL continues to deliver strong results as leading businesses are on track for another record year…..

Branch Banking leads earnings growth with strong current deposits growth of 13%

Digital Banking - laying the foundations for a wider eco system – payment throughput crosses Rs. 1.7 tln

CIBG–serving a niche market and maintaining strong asset quality

Treasury – well Diversified Portfolio with improving yields across investment book

International business remains steady across core markets – with positive contribution

Islamic Banking – we are building up a stronger proposition and wider network

Fees based revenue streams growing well and remain a huge diversification benefit

We are embedding ESG into UBL’s Strategy - focus remains on D&I, sustainability
UBL remains well positioned to leverage its strong network,
growing customer base and a market leading digital proposition 4
 Our future ambitions are clear – to continue to be the most
“Progressive and Innovative” Bank of Pakistan

Aggressive Customer Acquisition Diversify with Investment strategy and NFI Digital Market Leadership
 Raising service standards across all  Active ALM approach to rebuild  Growing digital penetration - every
channels – making it “Simpler, Better, treasury book in GoP paper customer connected to the Bank 24/7
Faster”
 Building loan book with prudence –  Digital Front end platform to transform
 Optimizing expanded network to improve ADR Levels service levels
accelerate low cost deposits
 Diversify revenue streams with strong  Regain branchless space – revitalize
 Building an Islamic proposition that NFI growth Omni
aggressively seizes market share
 Steady growth within international  Leading innovations – explore emerging
 Become the No.1 Brand in Whatever with capital efficiency partners
We Choose to Pursue

Our strategy is to continue to invest in the franchise as we grow to our true aspiration…..

 Attract best talent – our people work in a culture of respect and empathy
 Leading the industry with highest standards of compliance, governance, and control
 Creating exemplary ESG standards and practices
 To be the “Best Service Bank” for our customers
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 Balance Sheet Overview for the nine months period ended September 30, 2022
Strong current deposits growth with steady build up in advances
Rs in bln Deposits Performance - Led by Branch Banking Group
Balance Sheet Var %
Sep'22 Dec'21  Deposits market share built up to 8.2% at Sep’22 (Dec’21: 7.2%)

Advances 671 646 4%  Avg Dom deposits at Rs 1.6 tln, up 7% YoY – inc vol of Rs 100 bln
Investments 1,529 1,497 2%  Avg Domestic current accounts up 13% YoY
FI Lendings 54 52 5%
 Avg current to total deposits ratio of 44.3% (9M’21: 42.0%)
Others 457 424 8%
 Avg CASA ratio of 85.8% (9M’21: 85.5%)
Total Assets 2,711 2,618 4%
Deposits 2,171 1,751 24%  Domestic CoD of 5.9% vs 3.5% in 9M’21
Borrowings 195 563 -65% Advances – Buildup in advances (avg advances up 19% YoY)
Subordinated Debts 10 10 0%  Period End Dom gross advances at Rs. 556 bln (Dec’21: Rs 544 bln)
Others 133 89 49%
 Period End Int gross advances of USD 911 mln, down 13% vs Dec’21
Total Liabilities 2,509 2,414 4%
 Avg International performing advances increased by 11% YoY
Net Assets 202 205 -1%
Share Capital 12 12 0% Investments portfolio position and mix as at Sep 30, 2022
Reserves 86 70 23%  Fixed Income PIBs at Rs 483 bln yielding 11.3% (Dec’21: Rs 328 bln)
Unappropriated Profit 83 85 -2%
 Floater PIBs at Rs 481 bln yielding 15.8% (Dec’21: Rs 413 bln)
Surplus on reval. of Assets 20 38 -46%
 T-Bills Portfolio at Rs 306 bln yielding 15.3% (Dec’21: 532 bln)
Total Equity including Surplus 202 205 -1% 6
 9M’22 P&L Overview
Higher revenues with strong NII and NFI growth - PBT up 29%
Rs in bln Rs in bln Revenue Performance – stable margins building up momentum
Income Statement Var % Var %
9M'22 9M'21 Q3'22 Q2'22  Bank NIMs at 4.6% in 9M’22 (9M’21: 3.8%), up 80 bps

Interest Earned 176.3 109.1 62% 73.5 54.9 34%  ATM fee up 26% with strong customer acquisition, trade fee up 23%
 Home Remittance share remains well above 21%, fee up 17% YoY
Interest Expensed (103.5) (55.4) -87% (45.8) (31.3) -46%
 Capital gains of Rs 667 mln in 9M’22 mainly on GoP Securities
Net Interest Income 72.8 53.7 36% 27.7 23.6 17%  Dividend income of Rs 1.5 bln, up 4% YoY
Non Interest Income 22.1 17.3 28% 7.4 7.9 -7%  Digital Payments throughput at Rs 1.8 tln up 51% YoY

Total Revenue 94.9 71.0 34% 35.1 31.6 11% Admin Exp – largely contained despite inflationary pressure
 Administrative expenses of Rs. 37.8 bln for 9M’22, up 21% YoY
Operating expenses (37.8) (31.2) -21% (13.7) (12.4) -10%
 Investments continue across network, technology and people
Total Expenses (38.8) (32.1) -21% (14.0) (12.8) -10%
 Cost to income ratio of 40% in 9M’22 vs 44% in 9M’21
Pre Prov. Operating Profit 56.1 38.9 44% 21.1 18.8 12%
Provisions – asset quality maintained with enhanced coverage
Provision Exp./Other writeoffs (5.4) 0.4 -1407% (4.7) (0.4) -1011%
 Dom asset quality maintained at 4.8% at Sep’22 (Dec’21: 5.0%)
Profit Before Tax 50.7 39.3 29% 16.4 18.4 -11%  Strong recoveries within domestic of Rs 2.2 bln in 9M’22
Profit After Tax 18.8 22.8 -18% 6.9 2.3 196%  Int Coverage remains strong at 86.8% (Dec’21: 86.4%)

Earnings Per Share (EPS) 15.33 18.59 -18% 5.64 1.91 196%  Int provision charge of USD 18.8 mln in 9M’22 (9M’21: USD 5.9 mln)
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 UBL delivers higher returns to shareholders as franchise continues to grow…..
PSX index vs UBL – valuations impacted by market sentiment Equity and Book Values – conservation and growth since 2019
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320

Max Price in 2022: Rs. 1

Price as at 19-O Rs in bln Cons. Equity Sep’22 - Rs. 224 bln
270
Cons. Book value Sep’22 - Rs. 183 per share
205 202
184
220

152 159 169

151
170
167 165
138 150
120
124 130 124

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Sep-17 Dec-17 Mar-18 Jun-18

2016 2017 2018 2019 2020 2021 Sep'22
Total Equity - St. BV Per share - St.

Dividends – strong growth in distribution since 2021 EPS & Price Earnings Ratio – a compelling story today
18.0 20.0 30.0
18.0
13.0 13.0 25.0
13.0 13.0 16.0
12.0 12.0
11.0 14.0
20.0
12.0

PE Ratio

EPS
84.8% 10.0 15.0
76.8%
69.3% 70.3% 71.4% 8.0
61.9% 63.2%
57.4% 10.0
6.0
4.0
5.0
2018 *
2.0
2015 2016 2017 2019 2020 2021 9M'22
- Dec'15 Dec'16 Dec'17 Dec'18 Dec'19 Dec'20 Dec'21 -
Cash dividend per share (Rs) Dividend Payout Ratio
EPS 21.0 22.7 20.6 12.4 15. 63 17. 07 25.23
* Payout for 2018 is computed on normalized PAT excluding the effect of one-off pension cost
PE 7.4 10.5 9.1 9.9 10.5 7.4 5.41
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Conclusion: A strong delivery in 2022 so far - as we target another record year
We will be pivoting around our core strengths – as economy transitions to stability over time

Branch Banking to lead ‘low cost’ deposits growth

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Maintain aggressive acquisition across target market - while optimizing network
Our Investment Strategy remains dynamic
2
Build well diversified portfolio across long term and floating rate assets - seize trading opportunities
Quality Asset Growth across both Corporate and SME
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Risk appetite to direct capital allocation – but improving ADR remains a priority

Digital Banking – creating new business models

4
Step up efforts to enhance digital penetration levels across Pakistan – with latest technology

5 Islamic Banking Growth Ambitions – a priority for the Bank

Investment in UBL Ameen, footprint, brand and people
International – maintain core segments with cautious BS expansion
6 Build on wholesale business model – improve ROE levels

We aim to maintain the resilience in core earnings in order to continue the earnings growth,
with diversification and new business opportunities 9
 Digital Banking - laying the foundations for a wider eco system
Penetration levels continue to improve as our award winning app gains further ground
App Registrations up +30% YoY Transacting Customers up 33% (Sep’22 vs Sep’21)
Registered Customers # in mln
+30% ( '000s) +33% YoY
754
694 714 735
2.5 666 677
643 655
614 628
1.9 578 593
540 552 566
500 517
474 475 479 491

Sep'21 Sep'22
Jan'21 Feb'21 Mar'21 Apr'21 May'21 Jun'21 Jul'21 Aug'21 Sep'21 Oct'21 Nov'21 Dec'21 Jan'22 Feb'22 Mar'22 Apr'22 May'22 Jun'22 Jul'22 Aug'22 Sep'22

Payments throughput at Rs 1.8 tln up 51% YoY

38+ mln

26+ mln

Rs 1,799 bln
Rs 1,192 bln

PBA RDA
9M'21 9M'22
No. of Transactions Amt (Rs. In bln) 10
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 UBL Remains in the Forefront with Market Recognition
UBL “Firsts” – Initiatives to stay ahead of the market Market recognition and awards
 ‘Best Mobile App’ and ‘Best Emerging Technology’ – Pakistan Digital
Award 2021.
 First Commercial Bank in Pakistan to launch Branchless Banking (UBL  Declared ‘Best Digital Bank in Pakistan for the 3rd year in a row by
OMNI) Asiamoney (2022, 2021 & 2020)
 First Bank to launch QR code based payments in Pakistan  Recognized for the highest number of Roshan Digital Accounts opened
 Declared ‘Best Digital Bank in Pakistan for 2020’ by Pakistan Banking
 First Pakistani Bank to launch digital customer onboarding Awards 2020.
 First Bank to provide Instantaneous ATM/Debit cards to branchless  Declared ‘Bank of the Year 2020 – Pakistan’ by The Banker, an affiliate of
banking customers at the time of account opening (UBL Omni) the Financial Times UK. 4th time in last decade
 “Best Bank” in the first ever Pakistan Banking Awards 2016
 First Bank in Pakistan where customer’s inward remittances are deposited
 “Best Bank for Corporate Finance and Capital Market Development” in
automatically on an ATM and VISA enabled debit card (UBL Tezraftaar
the Pakistan Banking Awards 2017
Pardes Card)
 “Innovation Award” at the Mastercard Innovation Forum for ‘Launch of
 First Bank in Pakistan to offer Prepaid VISA Debit Card UBL MasterPass QR’
 First Bank in Pakistan to offer Verified by Visa Service  “National Medal of Innovation Award” 2016 for Pioneering G2P
Payments – Pakistan Innovation Foundation
 First Bank in the world to issue VISA Debit Cards for G2P assistance to  Top 25 Companies Award by the Pakistan Stock Exchange for 2010-2012
flood affectees and 2015 -2019
 First Pakistani Bank to be granted status of Authorized Derivative Dealer  “Best Bank for SMEs” by the Asia Money Pakistan Banking Awards in 2017
(ADD) in Pakistan  2012 & 2013 Bank of the Year in Pakistan Award by The Banker Magazine,
an affiliate of the Financial Times, UK
 First institution from Pakistan and third in South Asia to be accredited with
Primary Membership of International Swaps and Derivatives Association  Recognized globally in 2013 as one of the 14 “Sprinters” by the GSMA’s
Mobile Money for the Unbanked (MMU) program, being the only bank in
the category

PBA RDA 11
 We are embedding ESG into UBL’s Strategy…. Some key themes

Recent Initiatives to build ESG awareness We are now developing a complete framework…

 Energy Conservation Program  Defining a complete ESG Risk Management Strategy

 Plantation Drive  Embedding ESG Risk factors into Risk Management Processes

 Introduced Urooj Account specifically for women.  Stress Testing to identify ESG impact/residual risk

 Various Education related projects &CSR  Reporting of ESG breaches to Management Committees

 Tax inclusion with Good Citizen Account  Delivering ESG Training modules

 Initiated Diversity and Inclusion Drive within the Bank  Building more Transparent Governance

 Fin-inclusion through UBL OMNI  Improving standards in Ethics and Compliance

 Induction of Differently Abled People  Board and Executive Diversity

We are fully committed to setting exemplary ESG standards and practices in the country’s corporate landscape
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Important Information

The information contained herein reflects our latest business statement as at September 30, 2022. Except the
historical information contained herein, statements in this Release which contain words or phrases such as
‘will’, ‘would’, ‘indicating’ expected to’ etc., and similar expressions or variations of such expressions may
constitute ‘forward-looking statements’. These forward-looking statements involve a number of risks,
uncertainties and other factors that could cause actual results to differ materially from those suggested by the
forward-looking statements. These risks and uncertainties include, but are not limited to our ability to
successfully implement our strategy, future levels of non-performing loans, our growth and expansion in
business, the impact of any acquisitions, the adequacy of our allowance for credit losses, technological,
implementation and changes, the actual growth in demand for banking products and services, investment
income, cash flow projections, our exposure to market risks as well as other risks detailed in the reports filed by
us with various regulatory authorities as per applicable laws and regulations. UBL undertakes no obligations to
update forward-looking statements to reflect event or circumstances after the date thereof.

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