United Bank Limited

Investor Presentation Q1 2022

Performance Highlights and Business Outlook

Speakers:
Mr. Aameer Karachiwalla - Chief Financial Officer
Mr. Arif Saifie, CFA - Financial Controller & Head of Investor Relations
Table of Contents

1 UBL’s Profile – leading franchise in Pakistan, awarded Best Digital Bank in 2021

2 Strong results in first quarter of 2022 with 30% YoY growth in profits

3 Maximizing shareholders returns with growing dividend payouts

4 One of the largest branch networks serving all across Pakistan

5 Strong asset quality with diversification within loan book – maintaining spreads

6 Treasury – investment book well positioned and repricing well in 2022

7 International business – cautiously maintaining business scale

8 Financial Summaries
2
UBL’s Profile – leading franchise in Pakistan,
awarded Best Digital Bank in 2021

Our Sponsors, awards & recognitions, our views on ESG

3
UBL - A dominant Pakistani brand with a market leading position across the financial sector

Our History Our Current Positioning – March 2022

 Second largest private sector bank in Pakistan with
1959 - UBL set up with first branch in Karachi 1,338 domestic branches

 Market share of 7.6%, 10 million+ customers

1963 - First Pakistani bank with a branch in London
 Highest credit ratings of AAA / A-1+ by VIS

1967 - UBL enters the UAE  One of the most profitable banks in Pakistan – Average
RoE of 18% 2016-Q1’22

1974 - UBL nationalized with other private banks Key Strategic Advantages

 First branchless banking proposition in Pakistan i.e.

2002 - Privatized with divesture of 51% stake by the GoP UBL Omni

 Most cost efficient deposit mix driven by well

2007 - An additional 25% of the share capital divested by the penetrated branch network
GoP to international investors through a GDR offering  Largest rural network - vast potential to increase
financial inclusion
2014 - Divesture of remaining 19.8% stake by Government of  At the forefront of innovation – digital lab, next gen
Pakistan through secondary public offering (SPO) mobile app, digital onboarding
4
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 2nd year in a row by
OMNI) Asiamoney (2021 & 2020)
 Recognized for the highest number of Roshan Digital Accounts opened
 First Bank to launch QR code based payments in Pakistan
 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 5
 Digital Banking – penetration levels continue to improve as our award winning app gains further ground

App Registrations up +28% YoY Transacting Customers up 37% (Mar’22 vs Mar’21)

Registered Customers # in mln
+28% ( '000s)
+37% YoY
2.2
1.7 643 655
614 628
578 593
552 566
517 540
474 475 479 491 500

Mar'21 Mar'22

Digital Payments over Rs 524 bln in Q1‘22, up 54% YoY 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

11+ mln

7+ mln
Rs 524 bln
Rs 341 bln

RDA
PBA
Q1'21 Q1'22
No. of Transactions Amt (Rs. In bln)
6
 We are embedding ESG into UBL’s Strategy…. Some key themes

Environmental Social Governance

UBL recognizes its obligation to continuously Building more Transparent Governance
improve its processes, systems, products and Creating Institutional Trust
services in order to create value for the
The earth is our home and to protect its communities it operates in. Through time, Strengthening Risk Management
natural resources is everyone responsibility. the bank has endeavored to give back to the
UBL Go-Green is a small step in this society in the form of programs and ventures Improving standards in Ethics and
direction – an initiative taken by the bank to that directly benefit and have an affirmative Compliance
give back to the environment what impact on the lives of local communities.
generations after generations have taken Board and Executive Diversity
for granted. UBL's CSR activities have focused on multiple
sectors, which include but are not limited to:
A chance to breathe easy, to go back to  Education
nature: one of it’s most vital elements – the  Healthcare
trees. Go-Green makes the environment  Vocational and Skills Training
around you paper-free. Use your mobile  Community Development
phones and computers for storing and  Information Technology
getting information  Sports

7
Strong results in first quarter of 2022 with
30% YoY growth in profits

Overview of Performance in the current year

8
Overview of operating environment this year… banking sector to capitalize on rising rate scenario

Risks and opportunities surrounding core segments…

1 Rate Regime
Interest Rate on rising trend but may impact economic growth levels

Inflation
2 CPI levels remain high – impacting cost of business

Investment Strategy
3 Portfolio well diversified across floating term assets
Long Term Bonds build up in line with rate outlook

Selected Lending
4 Low risk appetite evident - has led to capital strengthening

Geopolitical Situation
5 Equity Markets impacted by regional situation

International Economies
6 GCC economic environment improving

Focus in 2022 is to ensure core segments are well positioned and driving profitability
9
The Big Picture on Macros – UBL delivers strong results with improving EPS and CAR levels

Economy impacted by rising inflation, power tariff hikes and pressure on currency
 Growth outlook impacted by current Geopolitical situation

 Current account deficit to remain high, USD 12.1 bln in 8MFY’22 (Surplus of USD 1.0 bln in 8MFY’21)

 High volatility in FX rates with sharp deterioration

 Inflation at 12.7% in Mar’22, up 42bps from 12.3% in Dec’21 (Dec’20: 8.0%)

 Policy rate increased at 12.25% in Apr’22 (up 250bps over Dec’21)

UBL announces Historic Results in Q1’22

RS Rs Rs

15.8 B 9.5 B 23 % 21.7 %

7.8
PBT PAT ROE CAR EPS
up 30% up 29% up 332 bps 9% above up 29%
minimum levels
10
Balance Sheet Review – Growth in Deposits Builds Core Earnings

Rs in bln Deposits Performance - Led by Branch Banking Group

Balance Sheet Var %
Mar'22 Dec'21
 Avg Dom deposits at Rs 1.5 tln, up 8% YoY – inc vol of Rs 110 bln
Advances 656 646 1%
 Avg Domestic current accounts up 11% YoY, savings up 11% YoY
Investments 1,208 1,497 -19%
FI Lendings 74 52 43%  Avg current to total deposits ratio of 44.9% (Q1’21: 43.8%)
Others 374 424 -12%  Avg CASA ratio of 87.8% (Q1’21: 85.6%)
Total Assets 2,311 2,618 -12%
 Domestic CoD of 4.5% vs 3.4% in Q1’21
Deposits 1,775 1,751 1%
Borrowings 211 563 -63% Advances – Buildup in Domestic advances
Subordinated Debts 10 10 0%
 Period End Dom gross advances at Rs. 536 bln (Dec’21: Rs 544 bln)
Others 112 89 25%
 Period End Int gross advances of USD 1.1 bln, up 6% over Dec’21
Total Liabilities 2,107 2,414 -13%
Net Assets 204 205 0%  Avg International advances increased by 13% YoY
Share Capital 12 12 0% Investments portfolio position and mix as at Mar 31, 2022
Reserves 73 70 4%
 Fixed Income PIBs at Rs 334 bln yielding 9.8% (Dec’21: Rs 328 bln)
Unappropriated Profit 86 85 2%
 Floater PIBs at Rs 481 bln yielding 11.2% (Dec’21: Rs 413 bln)
Surplus on reval. of Assets 33 38 -13%
Total Equity including Surplus 204 205 0%  T-Bills Portfolio at Rs 185 bln yielding 10.6% (Dec’21: 532 bln)
11
Q1’22 Results – higher revenues support earnings with growth of 24% in PBT vs Q4’21

Rs in bln Rs in bln Revenue Performance – stable margins building up momentum

Income Statement Var % Var %
Q1'22 Q1'21 Q4'21  Bank NIMs at 4.3% in Q1’22 (Q1’21: 4.0%)
Interest Earned 48.0 31.8 51% 38.9 23%  Banca commission up 26%, ATM fee up 35%, trade fee up 17% YoY
Interest Expensed (26.5) (15.0) -77% (20.8) -27%
 FX income of Rs. 1.3 bln in Q1’22, up 165% (Q1’21: Rs. 484 mln)
Net Interest Income 21.5 16.9 27% 18.1 19%
 Capital gains of Rs 428 mln in Q1’22 mainly on GoP Securities
Non Interest Income 6.8 5.8 17% 6.1 11%
 Dividend income of Rs 904 mln, up 258% YoY
Total Revenue 28.3 22.6 25% 24.2 17%
Admin Expenses – building operational efficiencies is key
Operating expenses (11.7) (9.9) -19% (11.5) -2%
 Admin. expenses of Rs. 11.7 bln for Q1’22, up 19% YoY
Total Expenses (12.1) (10.1) -19% (11.9) -1%
 Cost to income ratio of 41.5% in Q1’22 vs 43.5% in Q1’21
Pre Prov. Operating Profit 16.2 12.5 29% 12.3 32%
Provisions – asset quality maintained with enhanced coverage
Provision Exp./Other writeoffs (0.3) (0.4) 2% 0.5 -164%
 Int provision charge of USD 3.1 mln in Q1’22 (Q1’21: USD 4.6 mln)
Profit Before Tax 15.8 12.2 30% 12.8 24%
 Int Coverage of 86.6% (Dec’21: 86.4%)
Profit After Tax 9.5 7.4 29% 8.1 17%  Dom net reversal of Rs. 210 mln in Q1’22 vs Rs. 373 mln last year

Earnings Per Share (EPS) 7.78 6.05 29% 6.63 17%  Dom asset quality maintained at 5.0% at Mar’22 (Dec’21: 5.0%)
12
Building sustainable fee base with diversification is key - strong results in 2022 as business is picking up

1 2 3 4
Strategic Focus on NFI with strict
Culture of Cross Selling and Deepening and entering markets,
monitoring across all business Building a trade ecosystem
Actions lines
collaboration segments, quality credits

Overall growth in Domestic Fee base of 28% YoY in Q1’22

Key Initiatives taken to grow fee base Fee Income now achieving much stronger monthly levels

Focus on strategic shift from long term loan to short term

1 loans Rs in mln

Deepening of relationship / pushing customers for trade &

2
FX flows

3 Re-vitalize relationships with key groups, MNCs & GOP 1,234

1,077 1,160
1,320
924 920 1,009 946 1,019 1,014 987
856 911 896 824
4 Increase Banca penetration, enhance Cards spend

5 Executing clear strategy for mid-market segment SE & ME 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

6 Scaling up HRC to a larger position – leverage GCC presence

7 Renewed positioning for UBL Omni

13
 Major NFI lines reflect improving momentum – diversification from large businesses benefits earnings profile

Penetration across CIBG Customer Base with USD 1.6 bln in Trade Volumes, up 10% YoY Bancassurance – gaining strong momentum across major clusters
Rs in mln
USD in mln 4,000 450

388

479m
513

451m
400
3,500

Rs
426 312 350

Rs
3,000

363 2,500
246
300

250

2,000

3,450 Banca Commission

Total Fee Income
200

1,500
3,280
2,612 150

80 78 75
1,000
100
+26% YoY
52 +60% YoY
19 2
500
50

- -

Jan'22 Feb'22 Mar'22 Jan'22 Feb'22 Mar'22

Import Export Guarantees No. of policies Total Premium Volumes - Rs in mln

Home Remittances maintains market leadership ATM Fee growing strongly and in line with NTB acquisition
USD in mln Rs in mln
21.9% 288

21.0% 21.1%
592 240

523m 723m
220

Rs
470 459
Rs
98
HRC Fee Income 78 ATM Fee
68
+10% YoY +35% YoY

Jan'22 Feb'22 Mar'22

Jan'22 Feb'22 Mar'22
UBL Volumes Remittance Market Share No. of new acquisitions '000 ATM Fee

14
Maximizing shareholders returns with
growing dividend payouts

ROE, Share Price & Capital Adequacy Ratios

15
 Strong Dividend Payouts maintained while UBL repositions to achieve larger aspirations

320
Trends - KSE 100 Index and UBL’s share price 55
Equity and Book Values
Max Price in 2022: Rs. 149.81 Cons. Equity Mar’22 - Rs. 227 bln
Rs in bln
Price as at 21- Apr'22: Rs. 141.35 50
Cons. Book value Dec’21 - Rs. 185 per share
270

205 204
45

169 184
220

152 159 151

40

170

167 167
35

138 150
120
124 130 124
30

70 25

Dec-15Mar-16Jun-16Sep-16Dec-16Mar-17Jun-17Sep-17Dec-17Mar-18Jun-18Sep-18Dec-18Mar-19Jun-19Sep-19Dec-19Mar-20Jun-20Sep-20Dec-20Mar-21Jun-21Sep-21Dec-21Mar-22
2016 2017 2018 2019 2020 2021 Mar'22
UBL's share price KSE 100 Index
Total Equity - St. BV Per share - St.

Dividend Payout EPS & Price Earnings Ratio

18.0
20.0 30.0
18.0
13.0 25.0
13.0 13.0 16.0
12.0 12.0
11.0 14.0
20.0
12.0

PE Ratio
64.2%

EPS
10.0 15.0
76.8% 71.4%
69.3% 70.3% 8.0
61.9% 63.2%
57.4% 10.0
6.0
5.0
4.0
5.0
*2019 2.0
2015 2016 2017 2018 2020 2021 Q1'22
- -
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
PE 7.4 10. 5 9.1 9.9 10. 5 7.4 5.41
* Payout for 2018 is computed on normalized PAT excluding the effect of one-off pension cost
16
 Key Ratios for the quarter – ROE at 23% in Q1’22 with steady buildup in revenue

Gross Revenues Cost to Income Ratio Net Interest Margins

Rs in bln 28.3 Rs in bln +63 bps
22.6 23.9 24.5 24.2 4.3%
47.8% 3.9% 3.9%
6.8 43.5% 43.3% 45.0% 41.5% 3.5%
3.7%
5.6 5.9 6.1
5.8

18.6
21.5
18.2 18.6 21.5
16.9 18.2 18.1 16.9 18.1

Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22
NII NIMs

Return on Equity Asset Quality Advances to Deposit Ratio

22.9%

20.5% 12.9% 12.9% 13.3%

20.0% 19.6% 19.9% 11.8% 11.8%
37.7% 41.6% 41.6%
37.1% 34.3% 35.9%

Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Mar'21 Jun'21 Sep'21 Dec'21 Mar'22 Dec'20 Mar'21 Jun'21 Sep'21 Dec'21 Mar'22
17
UBL poised for growth - Capital Base strengthens with conservation

Capital Adequacy Ratio Risk Weighted Assets

+20 bps
167 167

21.5% 21.7%
76 Dec'21: Mar'22:
622 68

5.3%
Rs 865 bln Rs 873 bln 638
5.3%

1.1% 1.1%

Credit Market Operational Credit Market Operational

15.1% 15.3%  UBL seeks to maintain a strong capital base to build

resilience and maintain adequate buffers over regulatory
requirements

 CAR at 21.7% with buffer of 9% over the minimum

Dec'21 Mar'22
regulatory requirement of 12.5%
CET 1 ADT-1 Tier II Total CAR
18
One of the largest branch networks serving all across
Pakistan

Overview of Branch Banking Group

“We strive to maintain an optimal deposits mix with focus on

new to bank client acquisitions and relationship deepening”
19
 Branch Banking remains corner stone of UBL franchise – growth momentum maintains ion Q1’22

Our Stronger compliance,

Better people Upskill and retain quality Empowerment and Improve Branch profitability
Strategic engagement talent accountability with cost synergies
conduct and control
environment
Actions

Domestic Average Deposit Volumes in Q1’22 Average Deposit Market Share

Rs Rs Rs 7.6% in Q1’22 (Q1’21: 8.1%)

1.5 674 644

Total Deposits
tln
Current Account
bln
Saving Deposits
bln Domestic Deposits Mix – Period End Mar’22

up 8% YoY up 11% YoY up 11% YoY

CASA
Our Customer Base Rs. 1,355 bln
89.1% (Dec'21: 88.2%)

10m+ Total
6m+
Total Branch
2.2m+ Digital
Term
Rs. 165 bln
10.9% (Dec'21: 11.8%)
Customers Customers Registrations

20
Branch Banking Overview
A premier Retail Bank operation with deep penetration across banking flows

Branch Banking Segments Products Distribution Channels

Islamic Liabilities Branches

Bank

Home Priority Banking ATMs

Remitta
nces
Digital
Wealth Bancassurance
Management
QR Code
Consumer Bank Cash Management
Signature Lounges

SME Bank Secured Loans

Internet Banking / Mobile App

Rural Bank
Unsecured Loans Call Centre / IVR

Deposits and Branch Banking Social Media

Issuing / Acquiring

21
Deposits and Branch Banking
With our vast scale and presence, we remain systematically important
Global Branch Network No. of deposit accounts (000’s)
1,379 1,379 6,634 6,805
1,376 5,696 6,191
1,370 5,289
With a Avg market share of 1,359 4,394 4,859
1,349 1,348
7.6%, we reach over 6.5
million customers

2016 2017 2018 2019 2020 2021 Mar'22 2016 2017 2018 2019 2020 2021 Mar'22
Overall Bank Deposits (2016-21 CAGR: 8.5%) Bank level Deposits Composition (Rs in bln)

1,640 1,751 1,775 Current Savings Fixed

1,366 1,467
1,167 1,273 295 288
Diversified product offering 322
312 341 631
331 640
catering to various segments 299
520 614
413 430 466
588 606 704 816 856
455 512

2016 2017 2018 2019 2020 2021 Mar'22 2016 2017 2018 2019 2020 2021 Mar'22
Cost of Deposits

Optimal deposits 4.9%

profile has resulted in 4.0% 4.1%
efficient cost of deposits 3.3%
2.7% 2.9%
2.6%

2016 2017 2018 2019 2020 2021 Q1'22

22
Branch Banking – Other Businesses
Diversification within the business continues to grow earnings
Market leader with over 20% market share

 Our global coverage targets Pakistanis through the unique ‘Tezraftaar’ proposition
Home Remittances
 Volumes growth continues to outpace the market – despite challenging business conditions
 Cutting edge technological platform and strong synergies with international business

Active involvement in increasing credit access and banking the unbanked

SME and Rural  Tailor made agri and SME finance products that capture the complete supply chain
Bank  Leading Rural Bank with around half of our network having rural penetration
 Dedicated service centers to serve SMEs is one of the largest in the industry and covers major trade hubs

Building a larger secured lending portfolio

 Holistic product suite including credit cards, autos, personal loans and mortgages
Consumer Bank
 Focus on payroll relationships from existing corporate clientele to expand portfolio
 Focus on all GoP initiatives across mortgage and personal loans to provide access to finance all across Pakistan

Seeking leadership position in a niche segment

 Islamic Banking balance sheet continues grow and crossed over Rs. 175 bln
Islamic Bank
 Continued branch network expansion and conversion to build presence
 Focus on increasing penetration in commercial markets with a clear preference for Islamic products

23
Strong asset quality with diversification within loan book
– maintaining spreads

Corporate and Investment Banking

“CIBG continues to expand relationships within the public

and private sectors through RWA efficient credit expansion.”

24
CIBG Overview
Building on our upscale positioning

A key strategic partner to the top tier corporate and institutional clientele

Corporate Banking  Complete menu of services including core lending, trade finance, remittances
Group
(CBG)  Target quality credit through selective loan growth across diversified industries

 Focus on maximizing overall relationship yields as well as capital efficiency

Among the largest Investment Banking groups in Pakistan

Investment
 Well-established deal execution and distribution experience with presence in the GCC region as well
Banking Group (IBG)
 Leading player in the power, oil and gas and infrastructure financing industries

One of the market leaders in cash management

 Technology driven product solutions to capture market share

Cash Management  Addressing customers’ entire supply chain needs, from vendor payments and payroll to collection solutions

 Leveraging large branch network and robust technological infrastructure

 Synergies with Corporate and Investment Banking businesses

25
CIBG Performance (2016 to Mar’22)
Loan book driven by Corporate Bank - focus on quality credit and diversification
Domestic Loans Growth Domestic Loan Composition Dom + Int Credit Concentration by Sector Mar’22)
545 500 520 512
Rs in bln
441 433
19%
342 CIBG
13%
SME, Consumer 26%
81% 9%
2016 2017 2018 2019 2020 2021 Mar'22
Advances Yield - Domestic 2%
10.5%
9.1% 1%
1%
8.5%
7.2% 7.0%
6.6% 6.5%
13% 24%

2016 2017 2018 2019 2020 2021 Q1'22

11%
Asset Quality - Domestic Coverage - Domestic
8.8% 93.9%
92.1%
90.1% 90.7% Textile Financial
6.2% 6.3%
4.9% 5.2% 5.0% 5.0% 87.9% 87.4% Electronics and electrical appliances Production and transmission of energy
85.7%
Individuals Agribusiness

Sugar Chemical & Pharmaceuticals

2016 2017 2018 2019 2020 2021 Mar'22 2016 2017 2018 2019 2020 2021 Mar'22 Others

26
Advances Portfolio - buildup in quality assets remain top priority with improving overall relationship yields

Rs in bln
Advances by Segment Var % Yield on Advances (General)
Mar'22 Dec'21 11.3%
Corporate Bank 340 364 -6%
Commodity 47 55 -13% 8.3%

SME 11 11 -2%
Consumer 19 18 7%
Others 94 72 31%
Total Domestic 512 520 -1%
International 144 126 14%
Bank 656 646 1%
Q1'21 Q1'22
International USD mln 782 715 9%
Growth of
Average Performing Advances 104%
Rs in bln
Q1'21 Q1'22
496
438
Imports Imports
174
130 USD 1.2 bln USD 1.3 bln
48 51
Exports Exports
USD 176 mln USD 205 mln
259 270
Trade Volumes
Q1'21 Q1'22 Guarantees Guarantees
Advances General Commodity Refinance and Others Total USD 107 mln USD 101 mln
27
Islamic Banking – we are building up a stronger proposition and wider network

Average Deposits and CoD

Key Performance Highlights Q1’22 vs Q1’21
Rs in bln
4.2% 4.1%
3.8% 3.9% 3.8% 4.0%
3.6% 3.7% 3.7% 3.7%
3.4% 2.7% 2.8% 3.5%
3.2% 2.5%
 11% UBL Branches are now Islamic

123 129 123 128 134 125 136 139 143  48 Branches converted in 2021
109 116 117 116 120 116
105

 Avg deposits at Rs 139 bln, up 22%

Dec'20 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
Avg Deposits COD

Average Performing Advances  Cost of deposits at 3.78% in Q1’22 (Q1’21: 3.78%)

Rs in bln
9.6% 9.7% 9.8%
7.9%  Average investment at Rs 83.6 bln, yield of 9.4%
7.4% 7.1%
6.8% 7.1% 7.2% 7.3% 7.4% 7.4% 7.4% 7.3%
6.1% 6.0%

54
60 60  Average lending at Rs 61.9 bln, yield at 9.4% (Q1’21: Rs 31.8 bln)
42 46
36 36 37 40 40 40 39
27 32
22
16

Dec'20 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
Avg Perf. Advances Yield
28
Treasury – investment book well positioned and
repricing well in 2022

“Treasury and Capital Markets remains a strong results driver through effective
balance sheet management and proactive trading strategy”.

29
An Overview of the TCM Group
Major player in Pakistani financial markets given balance sheet size and market position

 Leading primary dealer in the GoP debt market

Money Market and ALM  Key market maker of GoP debt securities in the secondary market

 Strategic buildup of long-term fixed and floating bond portfolio, countering NIM compression

 One of the larger equity books in the industry

Capital Markets
 Exposure in high dividend yielding stocks with medium to long term investment horizon

 Leader in FX with one of the highest exchange earnings among peer group

 Synergies with Corporate, FI and Retail Banking

FX and Derivatives
 One of the first authorized derivatives dealers appointed by the SBP in the local derivatives market

 Leaders under Pakistan Remittance Initiative due to aggressive pricing and effective handling of big tickets

30
Well Diversified Portfolio with pro-active trading in FX and bonds in the current quarter

Yield on Investments
Over 95% of Investments in Govt. Securities
9.8% 10.0%
7.9%
T-Bills
Rs. 185 bln
(Dec'21: Rs. 532 bln)

Sukuks
Rs. 56 bln
(Dec'21: Rs. 54 bln)
FY'20 Q1'21 Q1'22

Fixed PIBs
Rs. 332 bln Non Fund Income Rs in mln
(Dec'21: Rs. 327 bln)

Floater PIBs Q1'22 904 1,283 428

Rs. 479 bln
(Dec'21: Rs. 412 bln)

Q1'21 252 484 1,867

Dividend FX income Capital gains

31
International business – cautiously maintaining
business scale

“Our focus is on consolidating the International franchise through

maximizing capital efficiencies and re-energizing the Retail Engine”.
32
Our Strategy - De-risk and Consolidate International

Liquidity deployment primarily in zero / low risk weighted bonds – mainly sovereigns

New lending to top corporates or fully collateralized commercial / SMEs

Active risk vigilance to prevent future portfolio deterioration, aggressive recovery focus

Re-vitalize Retail Bank - Build sustainable CASA and reduce deposit concentration

33
 International - capital gains support earnings as we evolve leaner business model

Performing Advances - PE Non Performing Loans Key Performance Highlights Q1’22 vs Q1’21
USD in mln USD in mln
+2% -1.6%

 Cost of Deposits at 1.1%; down 13 bps

360

334 329  Avg Deposits at USD 1.30 bln, up 1% YoY

340

320

 PE ADR Ratio on the basis of gross advances at 71% (Dec’21: 74%)

300

86.6%
642 652 280

86.4%

 Avg Performing loans at USD 754 mln, up 20% YoY

260

NPL Coveage
240

 Advances yield at 3.3%, down 31 bps

220

200

Dec'21 Mar'21 Dec'21 Mar'22

 Period End Asset Quality at 29.7% (Dec’21: 32.0%)
Deposits - PE Net Investments
USD i n mln
+5%
USD in mln
-17%  Foreign bonds Avg at USD 668 mln (Q1’21: USD 726 mln)

 Fee Income of USD 2.5 mln, up 18% YoY (Q1’21: USD 2.2 mln)

 Yield on bonds of 5.4% Q1’21: 5.5%)

1,385 771  Provision Charge of USD 3.1 mln (Q1’21: 4.6 mln)
1,314
643
 NPL Coverage at 86.6% (Dec’21: 86.4%)

Dec'21 Mar'22 Dec'20 Mar'22

34
Financial Summaries

35
Financial Summaries Income Statement Domestic Q1’22

Rs in bln Rs in bln
Description Var % Var %
Q1'22 Q1'21 Q4'21
Interest Earned 45.0 29.2 54% 35.9 25%
Interest Expensed (25.7) (14.2) -81% (20.1) -28%
Net Interest Income 19.3 15.0 29% 15.8 22%
Non Interest Income 6.2 4.0 56% 5.3 16%
Total Revenue 25.5 18.9 35% 21.1 21%
Admin. Expenses (10.4) (8.5) -21% (10.1) -2%
Total Expenses (10.7) (8.8) -22% (10.5) -2%
Pre Prov. Operating Profit 14.8 10.1 46% 10.7 39%
Provision Exp./Other writeoffs 0.2 0.4 -44% 0.6 -65%
Profit Before Tax 15.0 10.5 43% 11.3 33%

36
Financial Summaries Non Fund Income (Domestic, International and Bank Level)

Rs in mln
Description Var % Var %
Q1'22 Q1'21 Q4'21

Fee, commission and brokerage income 3,467 2,698 29% 2,979 16%
Dividend income 902 252 257% 613 47%
Income from dealing in foreign currencies 1,172 461 154% 1,292 -9%
Gain / (loss) on sale of securities 392 415 -6% 210 87%
Other income 234 123 91% 209 12%
Domestic Total 6,167 3,950 56% 5,302 16%
International Total 613 1,834 -67% 794 -23%
Bank Total 6,780 5,783 17% 6,096 11%
International Total - USD in '000 3,456 11,569 -70% 4,329 -20%

37
Financial Summaries Fee, Commission and Brokerage (Domestic, International and Bank Level)

Rs in mln
Description Var %
Q1'22 Q1'21

Branch banking customer fees 473 341 39%

Consumer finance related fees 268 239 12%

Card related fees (debit and credit cards) 748 554 35%

Investment banking fees 53 10 409%

Financial Institution rebate / commission 71 43 66%

Corporate service charges / facility fee 150 80 87%

Commission on trade 144 116 24%

Commission on guarantees 113 89 28%

Commission on cash management 242 215 12%

Commission on remittances including home remittances - net 544 558 -3%

Commission on bancassurance 479 381 26%

Rent on lockers 47 46 3%

Others 136 25 436%

Domestic Total 3,467 2,698 29%

International Total 452 343 32%

Bank Total 3,919 3,041 29%

International Total - USD in '000 2,548 2,162 18%

38
Financial Summaries Administrative Expenses (Domestic, International and Bank Level)

Rs in mln
Description Var %
Q1'22 Q1'21

Total compensation expenses 4,035 3,510 -15%

Rent and taxes 159 133 -19%

Utilities cost 338 283 -20%

Security 299 238 -26%

Depreciation 326 194 -67%

Depreciation - Right of Use Assets 459 426 -8%

Others 178 158 -12%

Property expenses 1,760 1,433 -23%

Hardware & Software Maintenance 499 337 -48%

Depreciation & Amortisation 374 346 -8%

Network charges 154 153 -1%

Consultancy charges 73 72 -2%

Information technology expenses 1,101 907 -21% 39

Financial Summaries Administrative Expenses (Domestic, International and Bank Level)

Rs in mln
Description Var %
Q1'22 Q1'21

Legal and professional charges 66 61 -10%

Outsourced service costs including sales commission 774 671 -15%

Banking service charges 612 422 -45%

Cash transportation and sorting charges 198 193 -2%

Depreciation 385 325 -18%

Stationery and printing 201 179 -12%

Marketing, advertisement and publicity 233 52 -351%

Insurance 13 11 -19%

Deposit protection premium 431 397 -9%

Donations - 40 100%

Others 564 339 -67%

Other operating expenses 3,477 2,688 -29%

Domestic Total 10,373 8,538 -21%

International Total 1,355 1,315 -3%

Bank Total 11,728 9,853 -19%

International Total - USD in '000 7,639 8,362 9% 40

Consolidated Results Q1’22

41
Consolidated Results Income Statement Q1’22

Rs in bln
Description Var %
Q1'22 Q1'21
Interest Earned 49.3 32.9 50%
Interest Expensed (27.0) (15.4) -75%
Net Interest Income 22.4 17.5 28%
Non Interest Income 6.7 6.4 5%
Total Revenue 29.1 23.9 22%
Operating expenses (12.7) (10.8) -18%
Total Expenses (13.0) (11.1) -18%
Pre Prov. Operating Profit 16.1 12.9 25%
Provision Exp./Other writeoffs (0.3) (0.4) 11%
Profit Before Tax 15.7 12.5 26%
Profit After Tax - Continued operations 9.4 7.6 24%
Profit / (Loss) from discontinued operations - net of tax 0.0 (0.0) 0%
Profit After Tax 9.4 7.6 24% 42
Consolidated Results Balance Sheet March 2022

Rs in bln
Description Var %
Mar'22 Dec'21
Advances 784 767 2%
Investments 1,232 1,521 -19%
Lendings to Financial Institutions 77 52 48%
Others 387 441 -12%
Total Assets 2,481 2,781 -11%
Deposits 1,918 1,886 2%
Borrowings 213 565 -62%
Subordinated Debts 10 10 0%
Liabilities associated with assets held for sale 0 0 -32%
Others 114 92 24%
Total Liabilities 2,254 2,553 -12%
Net Assets 227 228 -1%
Share Capital 12 12 0%
Reserves 81 78 4%
Unappropriated Profit 91 90 1%
Surplus on revaluation of Assets 35 40 -14%
Total Equity attributable to equity holders of Bank 218 220 -1%
Non-controlling Interest (NCI) 8 9 -4%
Total Equity + NCI 227 228 -1% 43
6 year Performance Review

44
6 Year Financial Summary

Rs. in mlns 2021 2020 2019 2018 2017 2016

Assets
Cash and balances with treasury and other banks 291,300 264,727 256,591 206,813 177,099 146,428
Lending to financial institutions 51,701 19,959 20,183 33,942 10,868 25,711
Investments- gross 1,504,689 1,138,018 849,441 792,857 1,095,555 808,959
Advances - gross 728,286 609,307 702,951 776,272 670,056 559,093
Operating fixed assets 70,769 53,037 54,348 47,556 46,205 35,582
Other assets 61,665 52,715 85,497 98,976 79,617 67,812
Total assets - gross 2,708,409 2,137,763 1,969,011 1,956,417 2,079,400 1,643,585
Provisions against non-performing advances (82,097) (79,028) (67,117) (60,336) (42,697) (40,525)
Provisions against diminution in value of investment (8,146) (9,344) (9,118) (6,482) (3,769) (2,428)
Total assets - net of provision 2,618,166 2,049,392 1,892,775 1,889,599 2,032,934 1,600,632

Liabilities & Equity

Deposits & other Accounts 1,750,944 1,640,212 1,467,063 1,366,060 1,272,788 1,167,124
Borrowing from financial institutions 563,285 128,987 154,484 268,124 512,650 201,550
Sub-ordinated loans 10,000 10,000 10,000 9,000 - -
Bills payable 26,793 29,734 22,927 27,249 29,848 24,520
Other liabilities 62,502 56,386 69,232 67,896 58,341 55,651
Total Liabilities 2,413,523 1,865,319 1,723,706 1,738,329 1,873,627 1,448,845
Net Assets / Liabilities 204,643 184,073 169,069 151,270 159,307 151,787
Share capital 12,242 12,242 12,242 12,242 12,242 12,242
Reserves 69,718 62,274 59,320 54,439 43,847 40,455
Un - appropriated profit / (loss) 84,626 81,916 71,670 68,002 70,912 64,246
Equity - Tier I 166,586 156,432 143,232 134,683 127,001 116,943
Surplus on revaluation of assets 38,056 27,641 25,837 16,587 32,306 34,844
Equity 204,643 184,073 169,069 151,270 159,307 151,787
45
Total liabilities & equity 2,618,166 2,049,392 1,892,775 1,889,599 2,032,934 1,600,632
6 Year Financial Summary

Rs. in mlns 2021 2020 2019 2018 2017 2016

Markup / return / interest earned 147,974 152,003 153,676 113,198 107,206 98,219

Markup / return / interest expensed (76,216) (77,044) (91,902) (56,964) (50,781) (41,177)

Net Markup / Interest income 71,759 74,959 61,774 56,234 56,425 57,042

Fee, commission, brokerage and exchange income 17,056 14,782 18,219 17,396 14,496 14,020

Capital gain & dividend income 5,791 1,681 1,541 6,648 6,762 8,629

Other income 532 631 1,916 967 904 960

Non interest income 23,379 17,094 21,676 25,011 22,162 23,609

Gross income 95,138 92,054 83,451 81,246 78,587 80,651

Administrative expenses and other charges (43,832) (40,751) (40,860) (36,565) (36,109) (32,809)

Profit before provisions 51,306 51,303 42,590 44,681 42,478 47,842

Donations (134) (342) (129) (203) (110) (87)

Provisions 955 (16,768) (8,220) (19,511) (2,450) (1,740)

Profit before taxation 52,127 34,192 34,242 24,967 39,918 46,015

Taxation (21,245) (13,294) (15,108) (9,741) (14,739) (18,285)

Profit after taxation 30,882 20,899 19,134 15,226 25,179 27,730

Earning per share (EPS) 25.23 17.07 15.63 12.44 20.57 22.65 46
6 Year Financial Summary

Description 2021 2020 2019 2018 2017 2016

Key Financial Ratios

Return on equity (RoE) 19.1% 13.9% 13.8% 11.6% 20.6% 24.9%
Return on assets (RoA) 1.3% 1.1% 1.0% 0.8% 1.4% 1.8%
Profit before tax ratio 54.8% 37.1% 41.0% 30.7% 50.8% 57.1%
Advances to deposits ratio (ADR) - gross 41.6% 37.1% 47.9% 56.8% 52.6% 47.9%
Cost to revenue ratio 44.9% 43.5% 48.2% 47.8% 45.0% 39.6%
Growth in gross income 3.4% 10.3% 2.7% 3.4% -2.6% 3.6%
Intermediation cost ratio 2.6% 2.6% 2.9% 3.3% 3.0% 3.0%
Asset Quality (NPL ratio) 11.8% 13.7% 11.0% 8.8% 7.8% 8.0%
Net infection ratio 0.6% 0.9% 1.6% 1.1% 1.5% 0.8%
Capital adequacy ratio (CAR) 21.5% 24.4% 18.9% 17.7% 15.4% 15.1%

Share Information - Rs
Cash dividend per share 18.00 12.00 12.00 11.00 13.00 13.00
Dividend yield (based on cash dividend) 14.3% 7.3% 9.8% 5.9% 5.4% 8.4%
Dividend payout ratio (total payout) 71.4% 70.3% 76.8% 88.4% 63.2% 57.4%
Earning per share (EPS) 25.23 17.07 15.63 12.44 20.57 22.65
Price earnings ratio (PE) 5.41 7.37 10.52 9.86 9.14 10.55
Market value per share - at the end of the year 136.58 125.86 164.50 122.64 187.97 238.90
Market value per share - highest during the year 143.89 181.96 173.53 219.70 283.00 243.72 47
Quarterly Trends

48
Quarterly Trends Profit before Tax

Rs in bln
15.8

13.5 +57% 13.7 13.5 +24%

12.8
+23% 12.2
11.8
11.3 11.2 +12%
10.8 10.4 -2%
10.4 -5%
9.2 8.8
8.4 8.8 8.5 8.4
8.3 7.9 7.6 7.7
6.5
5.9 +6%
-26% +1%
4.1

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22

49
Quarterly Trends Profit after Tax

Rs in bln
9.5

+5%
+17%
+53% 8.1
7.6 7.8
7.3 7.3 7.4
+25%
7.0 7.0
+2%
6.4 6.3 6.3 +3%
6.0 5.9 +7% +3%
5.5 5.4
5.1
4.9 4.7 4.8
4.7
4.2
3.6 3.5 -26%

2.6

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22

50
Quarterly Trends Deposits

Rs in bln
+13%
+1%
1,850
1,810
+6%
+4%
1,751 1,775
+2% 1,640 1,637
1,589 1,581 -2%
-3%
1,448 1,419 1,467 1,493
0%
1,366 1,344 0%
1,301 1,315 1,335
1,256 1,254 1,273
1,183
1,142 1,147 1,167
1,070.1

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22

51
Quarterly Trends Net Advances

Rs in bln
716
+1%

675673 +14%
656
646
627 624 642 626 636 623
+3% +2%
636 585 +2%
565 567 -2%
557 567
538 530 541
-6%
509 519 498
496
-8%
-1%
447

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22

52
Quarterly Trends Revenue

Rs in bln
+17%
28.3
+18%

26.0
+5%
+2%
+5%
+9%
23.9 24.2
23.2 22.6
22.4 22.0 24.5
21.9
21.3 21.2 21.2 20.6 -11%
-1%
20.3 20.9 20.8
20.0 20.4 20.0 19.6
19.2 19.0
-10%
18.1 17.9

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22

53
Quarterly Trends Net Interest Income

Rs in bln
+26%
+19%
21.8
21.5

+8% +2%
19.1
+6% 18.6
+1% 18.2 18.1
17.3 -12%
16.4 16.7 16.9
15.7 -3%
15.3 15.4
14.7 -12%
14.0 13.7 14.3 14.2 14.2 13.9 14.2 13.8 14.4
13.6 13.7

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22

54
Quarterly Trends Non Fund Income

Rs in bln

8.4

7.3 7.2 +11%

7.0
6.8
+4%
6.3 +42%
+4%
6.1 6.0 6.1
5.8
5.6 5.7 5.6 5.9
5.2 5.1 5.2 +5%
5.0
-2%
4.7
4.5 4.5
4.3 4.1
4.1
3.8
-9%
-4% -1%

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22

55
Quarterly Trends Provision Charge / (Reversals)

Rs in bln

+55%

5.7
5.5 5.5 -5%

+114%

3.7
2.9 3.2
2.6
2.0 2.1 1.9 2.1
1.7 1.9
1.3
-66%
-81% +164%
0.6
0.3 0.4 +26% 0.3
0.1
-0.3 -0.3 -0.3
-0.5 -0.5
-0.4
-225% -65%

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22

56
Quarterly Trends Administrative Expenses

Rs in bln
11.7
+11% +5%
+6%
+5%
11.0 11.0
10.7 +2%
+2% 10.3 11.5
10.3 11.0
9.9 10.0 9.9
9.6 9.7
9.2 9.5
9.0 9.9
8.8 8.8 8.7 +2%
8.4 8.5 -14% -11%
8.2
7.8
7.4

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22

57
For any queries please contact:

Aameer Karachiwalla

Chief Financial Officer

Email: [email protected]
Phone: +92-21-990332152

Arif Akmal Saifie, CFA, FCA

Financial Controller and Head of Investor Relations

Email: [email protected]
Phone: +92-21-990332971

58
Important Information

The information contained herein reflects our latest business statement as at March 31, 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.

59