United Bank LimitedPerformance Review

September 2012

1

Key Highlights

2

• Standalone PAT up 28% YoY to Rs 14.1 bn. Consolidated PAT up 42% YoY to Rs 15.0 bn for 9M’ 12

• Net interest income down 2% YoY to Rs 29.1 bn

o NII reduced YoY due to the lower rate environment, higher investment in mutualfunds and increase in minimum PLS saving deposits rate from 5% to 6%.

o Yield on earning assets reduced YoY by 85 bps to 11.5%

o Cost of funds reduced YoY by 04 bps to 5.02%

• Non markup income up YoY by 47% to Rs 13.2 bn

o Core banking fees increased by 18% to Rs 5.9 bn mainly due to higher corporateservice charges, increased income from domestic and home remittances and highergeneral banking fees and trade income.

o Capital gains increased to Rs 595mn, primarily due to gains on listed equities

o Dividend income grew YoY by Rs 1.1 bn mainly due to increased investments inmutual funds

o One off gains on settlement of CCS deals.

Key Highlights

3

• Provisions are down by 47% YoY to Rs 3.4 bn

o Excluding the sovereign guaranteed NPL, coverage ratio has improved to 83% in Sep’12. The domestic coverage has increased from 81% to 84%

o NCL ratio improved to 1.2% in 9M’12 compared to 2.6% in 9M’11

• Administrative expenses are up YoY by 18% mainly due to

o The full cost impact of ABEP branches, core banking implementation and OMNI expansion

o Rupee devaluation impact on international business expenses

o On a comparable basis, Admin. Expenses increased YoY by 9.4%.

• Net advances increased by 9% over Dec’11 to Rs 356bn in Sep’12

• Total deposits increased by 7% over Dec’11 to Rs 653bn

o Domestic CASA stands at 79.3% in Sep’12 compared to 79.5% at Dec’11

o Total CAR improved from 14.3% in Dec’11 to 14.8% in Sep’12 whilst Tier I CAR also improved from10.5% to 10.6% over the same period.

o ROE improved from 23.7% in FY’11 to 25.7% in 9M’12

Income Statement - Standalone

4

PKR BnYTD

Sep'12

YTD

Sep'11Var % Q3'12 Q2'12 Var %

Interest Earned 55.47 52.53 6% 19.21 18.56 4%

Interest Expensed (26.33) (22.90) -15% (9.29) (8.95) -4%

Net Interest Income 29.14 29.63 -2% 9.93 9.61 3%

Non Interest Income 13.17 8.94 47% 5.49 3.59 53%

Total Revenue 42.31 38.57 10% 15.41 13.20 17%

Admin. Expenses (17.34) (14.76) -18% (6.06) (5.76) -5%

Operating Expenses (17.84) (15.31) -17% (6.23) (5.91) -5%

Pre Prov. Operating Profit 24.47 23.26 5% 9.19 7.28 26%

Provision Exp./Other writeoffs (3.42) (6.51) 47% (1.95) (0.71) -176%

Profit Before Tax 21.05 16.75 26% 7.24 6.58 10%

Profit After Tax 14.06 10.95 28% 4.74 4.45 6%

Income Statement - Consolidated

5

PKR BnYTD

Sep'12

YTD

Sep'11Var % Q3'12 Q2'12 Var %

Interest Earned 56.69 53.20 7% 19.73 18.94 4%

Interest Expensed (26.81) (23.07) -16% (9.51) (9.08) -5%

Net Interest Income 29.88 30.12 -1% 10.22 9.86 4%

Non Interest Income 14.88 9.25 61% 6.56 3.95 66%

Total Revenue 44.76 39.38 14% 16.78 13.81 22%

Admin. Expenses (18.75) (15.91) -18% (6.50) (6.25) -4%

Operating Expenses (19.25) (16.46) -17% (6.68) (6.40) -4%

Pre Prov. Operating Profit 25.52 22.92 11% 10.10 7.40 36%

Provision Exp./Other writeoffs (3.42) (6.51) 47% (1.95) (0.71) -175%

Profit Before Tax 22.10 16.41 35% 8.16 6.70 22%

Profit After Tax 15.02 10.60 42% 5.62 4.54 24%

Share Info

6

2006 2007 2008 2009 2010 2011 Sep'12

Total Equity - St. 30 42 44 61 68 79 88

BV Per share - St. 46 52 43 55 56 65 72

20

31

42

53

64

75

25

40

55

70

85

100

Bo

ok

valu

e p

er

shar

e

Bo

ok

Val

ue

-R

s. B

n

Book value per share - Standalone

4

7

10

12

15

18

25

39

53

67

81

95

Jan

-09

Fe

b-0

9

Ma

r-0

9

Ap

r-0

9

Ma

y-0

9

Jun

-09

Jul-

09

Se

p-0

9

Oct

-09

No

v-0

9

De

c-0

9

Jan

-10

Ma

r-1

0

Ap

r-1

0

Ma

y-1

0

Jun

-10

Jul-

10

Au

g-1

0

Se

p-1

0

Oct

-10

De

c-1

0

Jan

-11

Fe

b-1

1

Ma

r-1

1

Ap

r-1

1

Ma

y-1

1

Jul-

11

Au

g-1

1

Se

p-1

1

Oct

-11

No

v-1

1

Jan

-12

Fe

b-1

2

Ma

r-1

2

Ap

r-1

2

Ma

y-1

2

Jun

-12

Jul-

12

Se

p-1

2

Oct

-12

ThousandsTrends - KSE 100 Index & UBL's Share Price

UBL's share price KSE 100 Index

Max 2012 : 91.17Min 2012 : 52.65Latest MP : 75.9

Cons. Equity Sep’12 – Rs 97 BnCons. BV - Rs 79.5 per share

30% 30% 25% 25%

50%

75%

50%

25% 25%

10% 10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2006 2007 2008 2009 2010 2011 2012

Pa

yo

ut

as

a %

of

pa

r v

aly

e o

f sh

are

s

Dividend Payout

Cash Stock

Dividend Payout (as a % of PAT): 2011: 59% 2010: 55%

7

Key Ratios - BankBalance Sheet Ratios Sep'12 Dec-11 Sep'12 Jun'12

Advances / Depos its 59% 57% 59% 56%

Asset Qual i ty 14.0% 14.0% 14.0% 13.7%

Coverage 79% 80% 79% 77%

Financial RatiosYTD

Sep'12

YTD

Sep'11Q3'12 Q2'12

Yield on P. Advances 11.9% 13.1% 11.6% 12.2%

Cost of Depos its 4.4% 4.3% 4.4% 4.5%

Net Interest Margin 6.5% 7.3% 6.3% 6.5%

NCL Ratio 1.2% 2.6% 2.0% 0.6%

Return on Avg Assets 2.30% 2.05% 2.21% 2.14%

Return on Shareholders ' Equity 25.7% 23.3% 25.4% 25.3%

P/L RatiosYTD

Sep'12

YTD

Sep'11Q3'12 Q2'12

Cost to Income Ratio 41.0% 38.3% 39.3% 43.6%

Non Fund Inc. / Tota l Revenue 31% 23% 36% 27%

8

Deposits Structure (Bank level)

Cost of Deposits Deposits - Bank

• Domestic cost of deposits declined by 10bpsover Dec’11 despite an increase in minimum PLSsaving deposits rate from 5% to 6%.

• Average deposits increased by 15% YoY and 3%over the previous quarter

• Domestic CASA maintained at Dec’ 11 level

• Domestic market share of deposits stands at8.1% as on 30th Sep’ 2012

2.0%

2.8%

3.6%

4.4%

5.2%

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

Cost of Deposits

Domestic International Bank

Dec'11 Sep'12

Bank

PE -

Rs.Bn COF%

PE -

Rs.Bn COF%

Domestic deposits 495 4.8% 511 4.7%

International deposits 118 2.3% 142 3.3%

Total Bank 613 4.3% 653 4.4%

International $ 1,313 2.3% 1,496 3.3%

Domestic CASA 79.5% 79.3%

Net Advances - Rs. Bn Dec'11 Sep'12

%

Change

Corporate Bank 155.2 175.1 +13%

Commercial * 69.0 72.9 +6%

Consumer 11.3 9.7 -14%

Others 6.0 8.0 33%

Total Domestic 241.4 265.7 10%

International 83.9 89.8 +7%

Bank 325.3 355.5 9%

International US$ Mn 933.0 946.7 +1%

* of which commodity advances of Rs. 57Bn (Dec'11: 46Bn)

9

Net Advances

149

81

16

82

7

155

69

11

84

6

175

73

10

90

8

-

37

74

111

148

185

Corporate Bank Commercial Bank Consumer Bank International Others

Rs

Bn

Dec'10 Dec'11 Sep'12

International Advances

10

Spread Analysis – Bank Level

11

Bank YTD September 2012 YTD September 2011 YTD September 2012

Rs Bn PE AVG IE

Avg.Yield

/Cost PE AVG IE

Avg.Yield

/Cost

Avg KIBOR - 3M 11.6% 13.5%

Interest Earning Assets

Performing Advances 328 316 28.2 11.9% 299 298 29.2 13.1%

Corporate 158 154 15.0 13.0% 125 131 14.1 14.4%

Commercial 15 17 1.9 14.9% 20 21 2.4 15.4%

Commodity 57 51 5.5 14.5% 59 53 6.4 16.3%

Consumer 9 10 1.4 19.1% 11 12 1.8 19.3%

International 88 83 4.3 7.0% 84 80 4.4 7.3%

Others 2 1 0.1 13.1% 0 1 0.1 13.6%

Investments (earning) 304 286 25.5 11.9% 226 208 18.9 12.2%

Corporate Bonds (TFC) 4 5 0.5 14.2% 29 28 3.3 15.3%

Lending to Financial Institutions 23 17 0.6 4.5% 17 15 0.7 6.3%

Others 17 19 0.5 3.8% 16 19 0.4 2.8%

Total int. earning assets (a) 675 643 55.4 11.5% 587 568 52.5 12.4%

Non int. earning assets 179 167 0.1 0.1% 139 130 0.1 0.1%

Total Assets (A) 854 810 55.5 9.2% 726 698 52.5 10.1%

Interest bearing liabilities

Total deposits 653 634 (20.8) 4.4% 557 551 (17.8) 4.3%

Low Cost Deposits 388 372 (4.9) 1.8% 341 330 (4.1) 1.7%

Expensive Deposits 265 263 (15.9) 8.1% 216 221 (13.6) 8.2%

Subordinated Debts - TFC 9 10 (0.9) 12.1% 11 12 (1.1) 12.8%

Swap cost (net) - - (0.5) 0.0% - - (0.6) 0.0%

Borrowings 78 57 (4.1) 9.6% 62 43 (3.5) 10.8%

Total interest bearing liab (b) 741 701 (26.4) 5.0% 630 606 (22.9) 5.1%

Non int. bearing liab ilities & equity 114 109 - 0.0% 96 92 - 0.0%

Total Liabilities+Equity (B) 854 810 (26.4) 4.3% 726 698 (22.9) 4.4%

Net Interest Margin (a-b) - - 29.1 6.5% - - 29.6 7.3%

Spread (A-B) 4.8% 5.7%

Agribusiness, 13%

Airlines, 2%

Automobile & Trans.

Equip., 1%

Cement, 1%

Chemical and pharmaceuticals, 2%

Contractor / Constructor, 6%

Fertilizer dealers, 2%

Financials, 2%

Food, 4%

Individuals, 13%Others, 14%

Prod. & Transmission Energy, 17%

Sugar, 3%

Telecom, 2%

Textile, 14%

Trading, 4%

12

Concentration of Advances – Standalone-Sep’12

13

Non Markup / Return / Interest Income

Non Fund Income - Rs. MnYTD

Sep'12

YTD

Sep'11Var % Q3'12 Q2'12 Var %

Fee, commission and brokerage income 5,914 4,992 18% 1,949 2,098 -7%

Dividend income 1,521 430 254% 78 633 -88%

Income from dealing in foreign currencies 1,533 1,517 1% 486 479 2%

Gain / (loss) on sale of securities 595 300 98% 140 40 253%

Derivatives Income 2,847 1,043 173% 2,637 56 100%

Other income 760 655 16% 196 283 -31%

Total Non Fund Income 13,169 8,937 47% 5,486 3,588 53%

14

Fee Commission and Brokerage Income

Fee Commission Income - Rs. MnYTD

Sep'12

YTD

Sep'11Var % Q3'12 Q2'12 Var %

Commission on trade 1,204 1,064 13% 387 386 0%

Commission on consumer loan 564 684 -18% 155 192 -19%

Commission on remittance / uniremote 793 622 28% 269 278 -3%

Corporate service chgs/finance fee/FI inc. 964 708 36% 297 380 -22%

Commission on ATM / utility / cheque books 711 534 33% 221 256 -14%

Minimum balance charges 179 252 -29% 58 69 -16%

Commission on home remittance 545 352 55% 203 186 9%

Commission income - Bancassurance 237 152 56% 86 95 -9%

Commission others 717 625 15% 272 255 7%

Total 5,914 4,992 18% 1,949 2,098 -7%

15

Administrative ExpensesAdministrative Expenses - Rs. Mn

YTD

Sep'12

YTD

Sep'11 Var % Q3'12 Q2'12 Var %

Personnel Cost 7,323 6,320 -16% 2,476 2,419 -2%

Premises Cost 2,511 2,368 -6% 878 868 -1%

Outsourced service charges

including sales commission1,532 1,106 -38% 554 509 -9%

Advertisement and publicity 564 408 -38% 294 136 -115%

Communications 697 581 -20% 228 249 9%

Depreciation 1,152 909 -27% 415 392 -6%

Legal and professional charges 212 172 -24% 69 72 4%

Banking service charges 608 545 -12% 215 196 -10%

Stationery and printing 366 296 -24% 126 138 8%

Travelling 195 178 -9% 59 74 20%

Cash transportation charges 281 234 -20% 98 100 2%

Repairs and maintenance 144 164 12% 52 52 0%

Maintenance contracts 622 480 -30% 211 184 -15%

Vehicle expenses 127 110 -15% 39 43 10%

Office running expenses 297 277 -7% 99 101 2%

Donations 6 25 75% 2 4 47%

Insurance expense 98 111 12% 26 16 -60%

Others 607 473 -28% 217 207 -5%

Total 17,343 14,758 -18% 6,058 5,760 -5%

16

Financial ratios – Consolidated (1/3)

Formulas

1. Net interest income / average assets 4. Risk weighted assets

2. Net interest income / average earning assets

3. Non interest income / average assets

YTD QTD (A nnua lize d)

2009 2010 2011 Sep'12* Dec-11 Mar-12 Jun-12 Sep-12

Spread (St) 1

5.5% 5.5% 5.6% 4.8% 5.3% 5.0% 4.8% 4.7%

Net Interest Margin (St) 2

6.9% 7.0% 7.2% 6.5% 6.9% 6.7% 6.5% 6.3%

Non Interest Yield 3

2.1% 1.6% 1.7% 2.3% 1.9% 2.1% 1.8% 2.9%

Admin Exp./Avg Assets 2.8% 2.8% 2.8% 2.9% 2.7% 2.9% 2.9% 2.9%

Cost Income Ratio 38.5% 41.7% 40.1% 41.9% 39.1% 42.3% 45.3% 38.9%

Loan Loss / Assets 1.9% 1.1% 0.9% 0.5% 0.3% 0.4% 0.2% 0.9%

Loan Loss / RWA 4

2.4% 1.5% 1.2% 0.7% 0.4% 0.5% 0.4% 1.2%

Effective Tax Rate 34.2% 37.7% 37.0% 32.0% 40.7% 32.9% 32.1% 31.1%

ROA 1.5% 1.6% 1.9% 2.3% 2.2% 2.3% 2.1% 2.5%

ROE 18.0% 17.7% 20.9% 25.2% 23.3% 25.8% 23.7% 27.7%

* Annualized

DuPont

17

Financial ratios – Consolidated (2/3)

YTD QTD (A nnua lize d)

2009 2010 2011 Sep'12* Dec-11 Mar-12 Jun-12 Sep-12

Gross NPLs / Gross Loan 10.3% 12.9% 13.4% 13.3% 13.4% 14.9% 13.2% 13.3%

Net NPLs / Gross Loan 3.0% 3.6% 2.7% 2.8% 2.7% 4.5% 3.1% 2.8%

Coverage Ratio 70.9% 71.9% 80.1% 78.7% 80.1% 69.8% 76.8% 78.7%

Prov. held / Gross loan 7.3% 8.9% 10.5% 10.1% 10.5% 10.1% 9.8% 10.1%

Net Credit Loss ratio 3.2% 2.2% 2.0% 1.2% 0.7% 0.9% 0.6% 1.9%

YTD QTD

2009 2010 2011 Sep'12 Dec-11 Mar-12 Jun-12 Sep-12

Growth in Loan Book -4.3% -5.7% -0.1% 11.0% 0.9% 5.6% 4.0% 1.1%

Growth in Deposits 2.3% 12.7% 11.8% 9.9% 10.1% 0.2% 12.7% -2.7%

Operating Revenue 16.6% -1.4% 16.3% 13.7% -0.3% 4.0% -2.6% 21.5%

Operating Expense 5.5% 7.6% 11.2% 17.0% -3.9% 14.3% 3.8% 4.2%

Pre-provision Oper.Profit 23.8% -7.2% 20.3% 11.3% 2.3% -2.8% -7.5% 36.5%

Provision exp.+ Other prov. 64.5% -39.2% -8.5% -47.5% -36.4% -24.0% -7.5% 175.4%

Profit After Tax 12.3% 16.1% 35.1% 41.8% 2.4% 13.4% -6.6% 23.6%

* Annualized

Asset Quality

Growth

18

Financial ratios – Consolidated (3/3)

Yearly QTD (A nnua lize d)

2009 2010 2011 Sep'12* Dec-11 Mar-12 Jun-12 Sep-12

Capital Adequacy Ratio 14.0% 15.0% 14.9% 15.1% 14.9% 13.7% 14.5% 15.1%

Tier-I CAR 9.5% 10.4% 10.6% 10.4% 10.6% 9.6% 10.1% 10.4%

Loan / Deposits 73.7% 62.8% 57.5% 58.7% 57.5% 60.7% 56.1% 58.7%

Net Loans / Assets 56.5% 47.1% 42.3% 41.6% 42.3% 42.4% 42.0% 41.6%

RWA / Assets 75.9% 72.7% 72.9% 69.9% 72.9% 73.6% 69.4% 69.9%

Average Headcount (St) 2

8,639 8,474 8,655 8,649 8,652 8,785 8,788 8,810

Personnel cost (St) /

Headcount (000)

Yield on Earning Assets (St) 3

12.3% 11.7% 12.3% 11.5% 12.1% 11.6% 11.7% 11.4%

Cost of Funds (St)4

5.4% 4.7% 5.1% 5.0% 5.1% 4.9% 5.1% 5.1%

Yield on Performing Adv (St) 13.4% 12.4% 12.9% 11.9% 12.8% 12.1% 12.2% 11.6%

Cost of Deposits (St) 4.8% 4.0% 4.3% 4.4% 4.2% 4.3% 4.5% 4.4%

* Annualized

Formulas

2. Permanent Staff

3. Earning assets incl bal.with other banks, lending to F.I., investments & perf adv

4. Funds includes deposits, borrowings & sub-ordinated loans

1,122.5 1,099.1 1,104.4 1,038.7 863.9 879.3 1,127.3

Other Metrics

988.8

19

Quarterly Trend Analysis

Bank Level

20

Profit before Tax

4.3 4.3 4.44.8 5.0 5.2

6.5

7.57.2

6.67.2

2.5

3.7

4.9

6.1

7.3

8.5

Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

Rs B

n

21

Profit after Tax

2.8

2.4

2.93.1

3.33.4

4.24.5

4.9

4.54.7

1.5

2.3

3.1

3.9

4.7

5.5

Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

Rs B

n

22

Deposits

451

500 491

551529

594

557

613 614

685

653

425

475

525

575

625

675

725

Mar'10 Jun'10 Sep'10 Dec'10 Mar'11 Jun'11 Sep'11 Dec'11 Mar'12 Jun'12 Sep'12

Rs

Bn

23

Net Advances

331

343

335 334 334 334

326

325

345

358355

315

326

337

348

359

370

Mar'10 Jun'10 Sep'10 Dec'10 Mar'11 Jun'11 Sep'11 Dec'11 Mar'12 Jun'12 Sep'12

Rs B

n

24

Net Interest Income

8.2 8.4

8.6

9.1 9.2

10.2 10.3

9.8 9.6 9.6

9.9

8.0

8.6

9.2

9.8

10.4

11.0

Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

Rs B

n

25

Total Provision

2.1

1.9

2.11.9

2.32.6

1.6

1.00.8 0.7

1.9

-

0.6

1.2

1.8

2.4

3.0

Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

Rs B

n

26

Non Fund Income

2.4 2.42.6

2.83.0 2.9

3.0

3.84.1

3.6

5.5

1.8

2.6

3.5

4.3

5.2

6.0

Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

Rs B

n

27

Gross Revenue

10.6 10.711.2

11.912.2

13.013.4 13.6 13.7

13.2

15.4

9.8

11.1

12.4

13.8

15.1

16.4

Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

Rs B

n

28

Administrative Expenses

4.1

4.4 4.5

4.94.7

5.05.0 5.0

5.5

5.86.1

3.8

4.3

4.8

5.4

5.9

6.4

Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

Rs B

n

29

The information contained herein reflects our latest business statement as at

September 30, 2012.

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.

30

Thank You