DEFINED BY

SERVICE
DRIVEN BY
EXCELLENCE
ANNUAL REPORT 2024
DEFINED BY
SERVICE
DRIVEN BY
EXCELLENCE
Transformation is not just a phase, it’s a continuous
journey. For 65 years, UBL has remained at the
forefront of banking evolution, embracing change,
innovation, and progress to redefine financial
services in Pakistan and beyond. As we move
forward, we remain committed to pushing
boundaries, setting new standards, and shaping a
dynamic future where banking is seamless, digital,
and customer-focused.

This report is an invitation to join us on a journey of

enduring transformation. A journey filled with
inspired action, impactful projects, and a glimpse
into a future of growth, empowerment and
innovation, making aspirations a reality.
 08-50 56-67
Company Information 08 UBL International Network 56
Chairman’s Profile 10 Complaint Management at UBL 57
Board of Directors 12 Gender Pay Gap Statement Under SECP 57
Chairman’s Review Report To The Members 22 Shariah Board’s Report for the Financial Year-2023 58
Directors’ Report to the Members 2024 23 Independent Auditor’s Review Report
Environmental, Social & Governance at UBL in 2023 38 on the Statement of Compliance 64
Management Team 46 Statement of Compliance with Listed Companies
Growth at a Glance 50 (Code of Corporate Governance) Regulations 2023 65
Annual Statement on Internal Controls 2023 67

70-79 80-183
Financial Statements 2024 70 Notes to and forming part of the Unconsolidated
Auditor’s Report on Unconsolidated Financial Financial Statements 80
Statements to the Members 72 Annexure ‘I’ as referred to in note 9.8 of the Bank’s

CONTENTS
Unconsolidated Statement of Financial Position 75 Unconsolidated and Consolidated Financial
Unconsolidated Profit and Loss Account 76 Statements 163
Unconsolidated Statement of Comprehensive Annexure ‘II’ as referred to in note 2 and 9.10 of
Income 77 the Bank’s Unconsolidated and Consolidated
Unconsolidated Statement of Changes in Equity 78 Financial Statements 176

Unconsolidated Cash Flow Statement 79 Annexure ‘III’ as referred to in note 10.6 of the
Bank’s Unconsolidated and Consolidated
Financial Statements 183

185-281 282-296
Auditor’s Report on Consolidated Financial Consolidated Profit and Loss Account in USD 282
Statements to the Members 185 Category of Shareholders 283
Consolidated Statement of Financial Position 187 Details of Mutual Funds & Modarabas 284
Consolidated Profit and Loss Account 188 Pattern of Shareholding 285
Consolidated Statement of Comprehensive Shares Trading (Sale / Purchase) during the year
Income 189 2024 290
Consolidated Statement of Changes in Equity 190 Directorship / Membership of UBL’s Directors in
Consolidated Cash Flow Statement 191 other Corporate Bodies 2291
th
Notes to and forming part of the Consolidated Notice of 66 Annual General Meeting 296
Financial Statements 12 Form of Proxy
Consolidated Statement of Financial Position in
USD 281
VISION
To be a world class bank dedicated to excellence,
and to surpass the highest expectations of our
customers and all other stakeholders.

MISSION
• Be the undisputed leader in financial services for
our customers
• Most innovative and fastest growing bank in
targeted businesses
• Continue to diversify across chosen geographies
• Achieve operational excellence with the highest
level of compliance
• Consistently create leaders through inspired
human capital
• Contribute positively to the communities we
operate in

VALUES
• Customer first
• Honesty of purpose
• Teamwork
• Excellence
• Meritocracy
REDEFINING
BANKING
THE DIGITAL
FUTURE OF UBL
UBL is transforming banking by putting
technology and customer experience at the
forefront. Through automation, contactless
transactions, and state-of-the-art security, the
bank is creating a future where banking is
effortless, secure, and tailored to individual needs.
No longer just about transactions, modern banking
is now about seamless experiences, personalized
solutions, and smarter financial management—and
UBL is leading this change.
 Board of Directors Board Nomination Committee (BNC)
Sir Mohammed Anwar Pervez, OBE, H Pk Sir Mohammed Anwar Pervez, OBE, H Pk
Chairman/Non-Executive Director Chairman
Lord Zameer M. Choudrey, CBE, SI Pk
Lord Zameer M. Choudrey, CBE, SI Pk
Member
Non-Executive Director
The Honourable Haider Zameer Choudrey
The Honourable Haider Zameer Choudrey Member
Non-Executive Director Mr. Aqeel Ahmed Nasir
Mr. Rizwan Pervez Secretary
Non-Executive Director Board International Committee (BIC):
Mr. Tariq Rashid Lord Zameer M. Choudrey CBE, SI Pk
Independent Director Chairman
Ms. Shazia Syed Sir Mohammed Anwar Pervez, OBE, HPk
Independent Director Member
The Honourable Haider Zameer Choudrey
Mr. Daniel Michael Howlett Member
Independent Director Mr. Rizwan Pervez
Mr. Muhammad Irfan A. Sheikh Member
Non-Executive Director Mr. Tariq Rashid
Member
Mr. Muhammad Jawaid Iqbal
Ms. Shazia Syed
President & CEO
Member
Committees of the Board Mr. Daniel Michael Howlett
Member
Board Audit Committee (BAC) Mr. Muhammad Irfan A. Sheikh
Ms. Shazia Syed Member
Chairperson Mr. Muhammad Jawaid Iqbal
The Honourable Haider Zameer Choudrey Member
Member Mr. Mahboob Avais Saeed
Mr. Rizwan Pervez Secretary
Member
Mr. Tariq Rashid Chief Financial Officer

COMPANY
Member Syed Manzoor Hussain Zaidi
Mr. Aqeel Ahmed Nasir
Secretary Company Secretary & Chief Legal Counsel
Mr. Aqeel Ahmed Nasir
Board Human Resource &

INFORMATION
Registered Office
Compensation Committee (HRCC) 13th Floor, UBL Building, Jinnah Avenue,
Mr. Tariq Rashid Blue Area, Islamabad
Chairman
Sir Mohammed Anwar Pervez, OBE, H Pk UBL Head Office
Member I.I. Chundrigar Road, Karachi–74000, Pakistan
Lord Zameer M. Choudrey, CBE, SI Pk
Share Registrar
Member
THK Associates (Pvt.) Limited
Ms. Shazia Syed
Plot No. 32-C, Jami Commercial Street-2
Member
D.H.A. Phase VII,
Ms. Hafsa Abbasy
Karachi-75500.
Secretary
Phone No.: 021-35310187
Board Risk & Compliance Committee (BRCC) UAN: 021-111-000-322
Mr. Daniel Michael Howlett Fax No.: 021-35310190
Chairman Email: [email protected]
Lord Zameer M. Choudrey, CBE, SI Pk Auditors
Member M/s. EY Ford Rhodes
Mr. Muhammad Irfan A. Sheikh Chartered Accountants
Member
Mr. Muhammad Jawaid Iqbal Legal Advisors
Member M/s. Mehmood Abdul Ghani & Co,
Mr. Imran Sarwar Advocates
Secretary
Contacts
Board IT Committee (BITC) UAN: 111-825-111
The Honourable Haider Zameer Choudrey Contact Centre: 111-825-888
Chairman Website: www.ubldigital.com
Mr. Rizwan Pervez Email: [email protected]
Member
Mr. Daniel Michael Howlett
Member
Mr. Muhammad Irfan A. Sheikh
Member
Mr. Muhammad Jawaid Iqbal
Member
Mr. Sohail Aziz
Secretary

08 United Bank Limited Annual Report 2024 09

 CHAIRMAN’S PROFILE
Sir Mohammed Anwar Pervez, OBE H Pk
Sir Mohammed Anwar Pervez, OBE H Pk is the Chairman of the Board of Directors of United Bank Limited since December 2013. He is
also Member of Human Resources & Compensation Committee (HRCC) and Board International Committee (BIC) as well as Chairman
of the Board Nomination Committee (BNC).

Moreover, he is the Chairman Emeritus of Bestway Group & its subsidiaries, which include Bestway Group Investment Limited. He is also
the Chairman of Bestway Cement Limited.

Sir Anwar began his career in food business in 1963 when he opened a convenience store in London. He ventured into the wholesale
business in 1976 and has been responsible for growing Bestway Group into the 7th largest family business in the UK.

Today, it is the largest independent food wholesaler in the UK, the 2nd largest retail pharmacy in the UK, the largest cement producer in
Pakistan and the 2nd largest private bank in Pakistan. The Group provides employment to over 41,000 people globally.

Sir Anwar was awarded the Order of the British Empire (OBE) in 1992 and was conferred the title of Knight’s Bachelor in 1999 by Her
Majesty the Queen for his services to the food industry and various charitable causes in the UK. In 2000, he was awarded
‘Hilal-e-Pakistan’.

In 2005, Sir Anwar Pervez was voted winner of the prestigious ‘Grocer Cup for Outstanding Business Achievement’ by the Institute of
Grocery Distribution, UK.

In 2006, he received ‘Sitara-e-Essar’ by the President of Pakistan. The same year he was chosen as the ‘Master Entrepreneur – UK’ at
the Ernst & Young Entrepreneur of the Year 2006 Awards.

In 2011, Sir Anwar was awarded with an honorary Doctor of Laws degree by FC College Lahore.

In 2012, in recognition of his philanthropic services to the community, the University of Bradford conferred on Sir Anwar Pervez an
honorary Doctor of Laws degree.

He is also the Chairman of Bestway Foundation UK and Patron-in-Chief of Bestway Foundation Pakistan.

10 United Bank Limited Annual Report 2024 11

BOARD OF DIRECTORS

Lord Zameer Mohammed Haider Zameer Choudrey

Choudrey, CBE, SI Pk, FCA ACA
Director Director
Lord Zameer Mohammed Choudrey CBE, SI Pk has been a The Honourable Haider Zameer Choudrey has been a Director of
Member of the Board of Directors of United Bank Limited since United Bank Limited since March 2014 and is Chair of UBL’s
October 2002. He is also Member of the Board Risk & Compliance Board IT Committee as well as a Member of its Board Audit
Committee (BRCC), the Human Resources & Compensation Committee and Board Nomination Committee. He also joined the
Committee (HRCC) and the Board Nomination Committee (BNC) Board of Directors of UBL Insurers Limited in October 2024.
as well as Chairman of the Board International Committee (BIC).
He is the Chief Executive Officer of Bestway Group. Bestway
He is the Chairman of Bestway Group, which is the 7th largest Group is the 7th largest family-owned business in UK with annual
family-owned business in UK with annual turnover of £4.9 billion. turnover of £4.7 billion. The Group is the 2nd largest wholesaler in
The Group is the largest independent food wholesaler in the UK, the UK, the 2nd largest retail pharmacy in the UK, the largest
the 2nd largest retail pharmacy in the UK, the largest cement cement producer in Pakistan and the 2nd largest private bank in
producer in Pakistan and the 2nd largest private bank in Pakistan. Pakistan. The Group provides employment to over 41,000 people
The Group provides employment to over 41,000 people globally. globally.

Lord Choudrey is a Chartered Accountant by profession. He Haider Choudrey is a Chartered Accountant by profession, joining
joined Bestway Group as a Financial Controller in 1984. In 1990, Bestway Group in 2012 and elevated to its board in 2018. He has
he was promoted as the Group Finance Director. In 1995, he was held a number of roles, including Group Finance Director, Chief
given additional responsibilities of business diversification both in Financial Officer and now Chief Executive Officer.
UK and Pakistan and was promoted as Chief Executive of
Bestway Cement Limited. He was appointed as the Group CEO in Haider is a member of the Board of Directors of Well Pharmacy
2004. In July 2024 he was appointed Chairman of the Board of and Bestway Wholesale in UK and of Bestway Cement Limited in
Directors of Bestway Group. He is a fellow of the Institute of Pakistan. He was appointed a Trustee of the Bestway Foundation
Chartered Accounts of England & Wales. He is the Chairman of in June 2021.
Conservative Friends of Pakistan. He is also a trustee of Bestway
Foundation UK and Chairman of Bestway Foundation Pakistan as After having distinguished himself at the world-renowned Eton
well as a trustee of Crimestoppers. College, Haider read economics at Gonville & Caius College,
University of Cambridge. He also received his Master’s in
In 2011 he was part of the International Leadership Team of High Economics from University of Cambridge. He is a member of the
Royal Highness Prince of Wales Prince Charles Pakistan Vice Chancellor’s Circle at the University of Cambridge.
Recovery Fund. In April 2013; he was invited to join The British
Asian Trust’s UK Advisory Council and in January 2018 he was Haider is also a Fellow of the Institute of Chartered Accountants in
appointed its Chair. In November 2014, he was awarded an England and Wales and previously trained with KPMG UK LLP.
honorary degree by University of Kent in recognition of his
philanthropic services to the community. Haider is a Certified Director from the Pakistan Institute of
Corporate Governance (PICG).
In December 2015, he was appointed Commander of the Order of
the British Empire (CBE) by Her Majesty the Queen Elizabeth II for
his services to the UK wholesale industry and various charitable
causes in the UK and abroad. In March 2018, the President of
Pakistan awarded the Sitara-e-Imtiaz (Star of Excellence) to him in
recognition of his contributions to advancing Pakistan through his
services and the wide array of philanthropic work.

In June 2019, he joined the Commonwealth Enterprise &

Investment Council's Advisory Council. In September 2019, he
was appointed to the House of Lords, UK. This appointment was
in recognition of his considerable contributions to Britain’s
domestic and foreign trade as a leading businessman and
entrepreneur, his wide array of philanthropic work both in the UK
and abroad, and his role as Chairman of the Conservative Friends
of Pakistan.

12 United Bank Limited Annual Report 2024 13

 Rizwan Pervez Shazia Syed
Director Director

Mr. Rizwan Pervez has been a Director of United Bank Limited Ms. Shazia Syed has been a Member of the Board of Directors of
since March 2014. He is a Member of the Board Audit United Bank Limited since November 10, 2020. She is the
Committee (BAC), the Board IT Committee (BITC) and the Chairperson of Board Audit Committee (BAC). She is also
Board International Committee (BIC). He is also Director of UBL Member of Board Human Resource Compensation Committee
Insurers Limited. (HRCC) and Board International Committee (BIC).

Rizwan graduated from the University of Pittsburgh, USA in Ms. Shazia Syed is currently the General Manager-Personal Care
1990 with a BSc in Business Management. Business Unit for Pakistan, Turkey, Bangladesh and Arabia
(PTAB). Prior to becoming General Manager-PTAB, she was for
He was trained with a leading UK firm of Chartered responsible for Unilever’s North Africa cluster, based out of Cairo,
Accountants and qualified in August 1995. Rizwan is a member which includes 12 emerging countries including Egypt and
of the Institute of Chartered Accountants in England & Wales. Morocco.

He joined Bestway as a Financial Accountant in 1995 and was Earlier she was the global head of tea business and was on the
elected to the Board of Directors in January 2000 as Group board of Pukka Tea and Pepsi Lipton. She had been on the Board
Business Development Director. He was responsible for of Unilever Pakistan Limited as Chairperson & CEO as well as on
developing the Group’s fascia and delivered business. Rizwan the Board of Unilever Pakistan Foods Limited as CEO. She has a
was instrumental in creating the "Best-One" symbol group and career spanning across 30 years in the FMCG sector and has
Bestway Direct, the Group’s delivered wholesale operation. worked in leadership roles in South East Asia, South Asia and
Europe.
In 2006, Rizwan was appointed Operations Director where he
led and managed the integration of Bestway and Batleys She was the erstwhile President of the Overseas Investor’s
wholesale operations which created the UK’s largest Chamber of Commerce & Industry and has also served as a
independent wholesale group. Director for the Pakistan Business Council. In addition, Shazia
also contributed her time on the Advisory Council at the British
In 2012, Rizwan was appointed the Group Marketing & Director. Asian Trust, Advisory Board of Change-Pakistan and as a Trustee
at the Duke of Edinburgh’s Award Foundation.
In 2019, Rizwan was appointed as Managing Director of MAP
Trading Limited. Shazia is an active advocate for Diversity & Inclusion at
workplace, with a vision to enable and facilitate working women
Rizwan has served as Governor of John Kelly Schools in North from all backgrounds across all sectors.
West London playing a leading role in the school’s attainment
of academy’ status and establishing the school as a centre of She is Certified Director from the Pakistan Institute of Corporate
excellence under its new name of The Crest Academy. Governance (PICG).

Rizwan is a Certified Director from the Pakistan Institute of

Corporate Governance (PICG).

14 United Bank Limited Annual Report 2024 15

 Tariq Rashid Muhammad Irfan A. Sheikh
Director Director

Mr. Tariq Rashid has been a Member of the Board of Directors of Mr. Muhammad Irfan A. Sheikh is a Member of the Board of
United Bank Limited since May 2017. He is the Chairman of Board Directors of United Bank Limited since July 2023. He is also a
Human Resource Compensation Committee (HRCC). He is also Member of the Board IT Committee (BITC), the Board Risk &
Member of Board Audit Committee (BAC) and Board International Compliance Committee (BRCC) and the Board International
Committee (BIC). He is also a Director of Bestway Cement Committee (BIC).
Limited.
Mr. Sheikh is the Managing Director for Bestway Cement
Mr. Tariq Rashid has more than 30 years’ experience in Limited, a company listed on PSX and Pakistan’s largest
Management & Information Technology at senior levels. He cement producer, and a number of other Bestway Group
spearheaded the setup of the IT infrastructure of mobile operator companies in Pakistan. Prior to assuming the role of the
Mobilink (now Jazz) since inception. He led the IT organisation of Managing Director, he headed the Finance, Information
Mobilink through different phases of Telecom industry’s life cycle Technology, Legal, Marketing and Communication functions
i.e. infancy, growth and consolidation and served as VP & Chief at Bestway Cement Limited.
Strategy Officer for more than 5 years. He also served as a
Director of Information Technology at HQ of Telecommunication After graduating from the prestigious Hailey College of
company in Egypt. He successfully led few large Commerce, University of the Punjab, Lahore; he proceeded to
business/technology transformation initiatives during his career. the U.K. where he studied accountancy from Thames Valley
University and the Chartered Association of Certified
He served as a Director on the Board of Mobilink Microfinance Accountants.
Bank and headed the Risk Committee. He served as Director on
the Board of Mobile Number Portability Database (Guarantee) Mr. Sheikh trained with a Top-10 Accountancy and Business
Limited. He also served as President on the Board of International Advisory firm in the U.K. before he joined the Bestway Group
School of Islamabad (ISOI) for more than 4 years. in 1996. He has been instrumental in Bestway Cement
Limited’s rise to the top and continues to play a vital role in
He holds an engineering degree from the University of Bestway Group’s various Pakistani companies’ growth and in
Engineering & Technology, Lahore and post graduate certificate in maintaining the highest standards of discipline in all aspects
Computers from National Academy of Higher Education. He of their business.
attended different management programs abroad and locally from
institutes like IMD, INSEAD, MIT and LUMS. Mr. Sheikh is an ardent supporter of many social causes
relating to education, health, women empowerment and arts &
He is a Certified Director from the Pakistan Institute of Corporate culture in Pakistan. He is a Trustee of Bestway Foundation,
Governance (PICG). Pakistan and is also on the Board of Governors of the
Foundation’s various projects.

He is a Certified Director from the Pakistan Institute of

Corporate Governance (PICG).

16 United Bank Limited Annual Report 2024 17

 Daniel M. Howlett Muhammad Jawaid Iqbal
Director CFA
President & CEO
Mr. Daniel M. Howlett has been a Member of the Board of Director Mr. Muhammad Jawaid Iqbal is the President & CEO of United
of United Bank Limited since April 2023. He is a Member of the Bank Limited since May 02, 2023.
Board IT Committee (BITC) and Board International Committee
(BIC). He is also Chairman Board Risk & Compliance Committee Mr. Iqbal has over two decades of banking & capital market
(BRCC). experience and has worked with large local banks at senior
managerial positions.
Mr. Daniel M. Howlett is a highly experienced and dynamic senior
front-line international banker. He has extensive experience of Mr. Iqbal did his Master in Business Administration from Pakistan;
dealing with Board level responsibilities across international Chartered Financial Analyst (CFA) from CFA Institute, USA; and
commercial and corporate banking, including transaction Advanced Management Program from Harvard Business School,
banking, structured lending and capital financing, private equity, USA.
and real estate. He has extensive c-suite access, both in the UK
and internationally.

He has a proven track record of growth in both financial and

market share terms and as an innovator and change agent in
sectoral, coverage and product capabilities.

He is an Independent Governor of the University of Plymouth, a

Non-Executive Director of Falcon Group, the Boparan Private
Office, United Bank Limited UK, and Vice Chair of the UK’s
leading independent investment bank, Panmure Liberum.

Prior to this, he had a 32 years’ executive career with HSBC,

culminating in his role as Head of Commercial Banking for the
Middle East, North Africa and Turkey and, immediately before that
had been the Head of HSBC’s Corporate Bank in the UK.

Daniel is a graduate from the University of Exeter.

18 United Bank Limited Annual Report 2024 19

 PUTTING
YOU FIRST
UBL’S COMMITMENT
TO CUSTOMERS
At UBL, customers are at the heart of everything we
do. We understand that banking isn’t just about
transactions—it’s about people, their goals, and their
financial well-being. That’s why we are always
evolving to offer better, faster, and more convenient
services. Whether it’s through digital banking,
personalized financial solutions, or dedicated
customer support, we are committed to making
banking easier and more rewarding for you.

20 United Bank Limited Annual Report 2024 21

CHAIRMAN’S REVIEW REPORT DIRECTORS’ REPORT
TO THE MEMBERS TO THE MEMBERS 2024
It gives me immense pleasure to share the financial The Bank remains committed to collaborating with regulators On behalf of the Board of Directors, we are pleased to present Financial Performance
performance and shareholder returns that UBL has delivered in and actively engages in significant nation-building initiatives to the financial statements of United Bank Limited (UBL) for the The Bank’s gross revenues were Rs. 260.9 billion in 2024, a year
2024. I would like to express my utmost appreciation to our support the economy. We remain dedicated to offering financial year ended December 31, 2024. on year growth of 48%. Net mark-up income was recorded at
valued customer base, who have continued to place their faith in services to the country’s unbanked population and will continue Rs. 173.4 billion, a 21% increase over the previous year. This
our organization and to our dedicated employees for their to invest in emerging industries to make a meaningful Performance Overview was led by the expansion in UBL’s current account and a strong
unwavering commitment which has helped us to deliver these contribution to Pakistan's growth. On a standalone basis, UBL recorded Profit Before Tax (PBT) of portfolio of treasury bills and long-term bonds. Bank CASA
strong results. Rs. 150.2 billion for the year ended December 31, 2024, with a deposits grew by 19% to Rs. 2.5 trillion in 2024, resulting in
In conclusion, I would like to extend my heartfelt gratitude to our strong growth of 39% year on year. Profit After Tax (PAT) stood CASA to total deposits increasing from 88% in 2023 to 94% this
Growth in low-cost deposits, a strong investment portfolio and customers for their steadfast trust in the UBL brand and to our at Rs. 80.5 billion for 2024 as compared to Rs. 53.2 billion for year.
significant contribution from fee and commission income management team for their resolute dedication. I also wish to 2023 with Earnings per share (EPS) of Rs. 65.78 compared to
streams helped the bank to grow its revenues. UBL continues to express my appreciation to my fellow board members for their Rs. 43.44 for last year. On a consolidated basis, UBL reported The Bank earned non-markup income of Rs. 87.5 billion in 2024
lead the market in home remittances, unwavering trust of the invaluable contributions and to the regulators for their continued PAT of Rs. 75.8 billion (2023: Rs. 56.5 billion) with consolidated with a solid build up in core revenues.
Pakistani diaspora in the UBL brand. support and guidance. EPS of Rs. 61.39 (2023: Rs. 45.05). The growth in the overall
Fees and commission income of Rs. 18.9 billion was earned in
bank in 2024 was supported by strong performance in both
2024, an overall growth of 8%. This was led by growth in trade
UBL has maintained its competitive edge through our continued domestic and international operations.
income, debit and credit card fees and UBL’s continued
investment in technology and digital products. We are
The Board of Directors declared a final cash dividend of Rs.11.0 leadership position in the domestic home remittances. UBL
committed to our transformation journey, which includes
per share in their meeting held in Islamabad on February 19, recorded a gain of Rs. 7.1 billion on the sale of its shareholding
implementing digital frontend platforms and bringing industry
2025 bringing the total cash dividend to Rs.44.0 per share for in United National Bank Limited (UNBL UK).
first features on the UBL digital app. These digitization and
the full year 2024.
technology initiatives have resulted in enhancing our customer
The Bank's operating expenses recorded a 47% increase over
service offerings and leading the charge towards greater
financial inclusion.
Economy Review 2023 and stood at Rs. 94.8 billion in 2024. This was mainly due
2024 was a pivotal year of recovery and stabilization in to staff costs increasing by 58% to Rs. 37.8 billion. Property
Pakistan’s economy. Post general elections in February 2024, a related expenses were up 22% at Rs. 11.9 billion, while IT
new coalition government took charge in March 2024. expenses stood at Rs 8.8 billion with an increase of 21% as the
Subsequently, the country successfully reached a Staff-Level Bank invests in its core systems infrastructure, digital offering
Agreement for a USD 7 billion, 37-month EFF IMF program in and strengthening of its cyber security posture.
September 2024, ensuring vital financial support on the external
front. UBL recorded a net provision charge of Rs. 12.8 billion for 2024
against net provision charge of Rs. 1.3 billion in 2023 resulting
The country's external account position improved remarkably in from the implementation of IFRS 9 methodology as well as
2024, with the current account posting a surplus of USD 912 increased credit loss allowance charge taken on the domestic
million. This is the first annual current account surplus achieved and international portfolios. Bank level Non-Performing Loans
since 2004. A major driver of the external account stability was (NPLs) stood at Rs. 116.0 billion at Dec’24, (Dec’23: Rs. 105.5
worker remittances, which grew by 32% YoY to total USD billion).
34.7bn in 2024. Although the trade deficit did increase to USD
23.4 billion this year from USD 19.5 billion in the previous year, a The bank seeks to maintain an efficient capital base that
healthy 11% growth was witnessed in exports. IT exports grew provides a foundation for future growth as well as maintaining
by 34% to USD 3.6bn in 2024, a very promising trend. SBP’s FX adequate buffers over regulatory requirements. 2024 saw a
reserves climbed to USD 11.7 billion by Dec 2024, a notable marked improvement in capital adequacy; consolidated CAR
increase of USD 3.5 billion from a year earlier. stood at 20.6% as of Dec’24 (Dec’23: 14.6%), with a buffer of
8.1% over the minimum regulatory requirement of 12.5%. The
The marked improvement in the external account provided the Common Equity Tier 1 (CET-1) ratio stood at 14.8% as of Dec’24
foundation for currency stability, with the FX rate holding steady (Dec’23: 10.5%). The Total Tier 1 Capital ratio was measured at
in a narrow range of PKR 277-279/USD throughout 2024, 15.5% at Dec’24 (Dec’23: 11.1%).
Sir Mohammed Anwar Pervez, OBE, HPk providing a much- needed respite following the sharp
February 19, 2025 devaluation of the previous two years. Technology & Digital
In 2024, UBL made significant strides in its technology
A stable currency environment, high base effect, and sharp
transformation journey, focusing on enhancing customer and
deceleration in food inflation helped overall inflation to trend
employee experiences, advancing cloud adoption, leveraging
downwards throughout the year. By December 2024, CPI
AI-driven insights, improving operational efficiency, and
inflation had fallen to 4.1% from 29.7% in December 2023. Food
strengthening cybersecurity posture.
inflation decelerated even more dramatically to 1.4% in Dec
2024 from 29% in December 2023. The sharp decline in
One of the key milestones include the successful
inflationary pressures provided the SBP with significant room to
implementation of the Digital Front-End Platform, which has
reduce interest rates. The benchmark policy rate fell by 9% in
enabled straight-through and paperless Customer Onboarding
the year, from a high of 22% till June 2024 to 13% by Dec 2024.
Journey. UBL has continued to enhance the quality of our
Subsequently, in January 2025, the SBP has further reduced the
technology eco-systems, through implementation of various
policy rate by 100 basis points to 12%.
automated solutions, enabling operational and cost efficiencies.
The KSE-100 index welcomed the improvement in Significant improvements were made to enhance system
macro-economic conditions and closed at 115,126 points as of performance and service reliability. The Bank continued to make
Dec'24, posting a remarkable 84% gain in the year. The Pakistan significant investments to enhance and strengthen the cyber
stock market was amongst one of the best performers globally security posture in line with our key priority of upholding the
in CY24. trust of our customers.

22 United Bank Limited Annual Report 2024 23

The UBL Digital App has continued to deliver a secure and transformation strategy has been pivotal to our success in 2024
seamless digital banking experience, supported by with technology, processes and data analytics driving business
BOARD HUMAN RESOURCE & policy framework for determining remuneration of directors,

comprehensive security measures such as AI-backed mobile decisions and which will remain a key priority going forward.
COMPENSATION COMMITTEE (HRCC): executive and non-executive directors, and members of senior
management in accordance with relevant prevailing regulatory
phone and biometric verification. UBL was successful in With increased focus on speed, stability, security and Mr. Tariq Rashid Chairman guidelines.
introducing the industry’s first fully digital “Smart Account” which sustainability, our technology platforms will enable us to Sir Mohammed Anwar Pervez, OBE, HPk Member
enables customers to open a bank account without any paper position UBL for continued growth and resilience in an Ms. Shazia Syed Member Board Risk and Compliance Committee (BRCC): - The The
documentation, utilizing a user-friendly, straight-through process. ever-evolving financial landscape. Lord Zameer M. Choudrey, CBE, SI Pk Member committee is responsible for setting the overall risk
In 2024, the Digital app saw a significant surge in both the volume Ms. Hafsa Abbasy Secretary management framework and ensuring the evolution and
and value of digital transactions with state-of-the-art offerings Corporate Governance effectiveness of all risk management policies in line with the
such as digital cheque, Tap n’ Pay, and an Outward Remittance The Board of Directors is committed to ensuring that the BOARD RISK & COMPLIANCE COMMITTEE changing economic climate for risk mitigation. The committee
feature that allows account holders to send remittances within 48 requirements of corporate governance set by the Securities and (BRCC): oversees the overall risk management function across the Bank
hours. Exchange Commission of Pakistan are fully met. The Bank has and ensures compliance with various risk management policies
adopted good corporate governance practices and the Mr. Daniel Michael Howlett Chairman through operational risk and Basel, treasury and market risk,
To further enhance convenience and security, UBL introduced QR Directors are pleased to report that: Lord Zameer M. Choudrey, CBE, SI Pk Member credit risk and credit policy functions. Furthermore, the
Code payments for both Person to Person and Person to Merchant Mr. Muhammad Irfan A. Sheikh Member committee also monitors the effectiveness of the risk
transactions. We also launched a digital personal loan solution, • The financial statements, prepared by the management of Mr. Muhammad Jawaid Iqbal Member management function to ensure compliance with regulatory risk
utilizing customers' transaction history and financial profiles to the Bank, present fairly the state of affairs of the Bank, the Mr. Imran Sarwar Secretary requirements including effective safeguards against financial
determine eligibility. results of its operations, cash flows and changes in equity. crimes.
BOARD IT COMMITTEE (BITC):
• Proper books of accounts of the Bank have been Board IT Committee (BITC): - The Committee is responsible
In parallel with these customer-centric digital initiatives, UBL The Honourable Haider Zameer Choudrey Chairman
maintained. for providing an effective governance framework to ensure that
harnessed the power of Artificial Intelligence to optimize internal Mr. Rizwan Pervez Member
operations. In 2024, we launched UBL Digital Buddy, an the Bank’s technology function enables the achievement of
• Appropriate accounting policies have been consistently Mr. Daniel Michael Howlett Member
AI-powered Chat Bot designed to support our staff with queries corporate strategies and objectives. The Committee
applied in the preparation of thefinancial statements. Mr. Muhammad Irfan A. Sheikh Member
related to product information, schedule of charges, and Accounting estimates are based on reasonable and prudent communicates to the Board the progress of the technology
Mr. Muhammad Jawaid Iqbal Member
internal policies and procedures. judgment. activities and digital initiative being undertaken across the Bank.
Mr. Sohail Aziz Secretary
Furthermore, the Committee is also responsible for ensuring
Human Resources • International Financial Reporting Standards, as applicable BOARD NOMINATION COMMITTEE (BNC): that risk management strategies are designed and implemented
2024 was a year of capacity building for UBL where staff to banks in Pakistan, have been followed in preparation of to effectively respond to wide-scale disruptions, as well as
strength was increased. To take care of staff, various measures financial statements without any departure therefrom. Sir Mohammed Anwar Pervez, OBE, HPk Chairman managing Information Technology (IT) and Cyber Security
including inflation allowance, fuel allowance and car benefit Lord Zameer M. Choudrey, CBE, SI Pk Member Risks.
schemes were introduced. In view of the prevailing economic • The system of internal control in the Bank is sound in design The Honourable Haider Zameer Choudrey Member
conditions in the country and the rising levels of unemployment, and is effectively implemented and monitored. Mr. Aqeel Ahmed Nasir Secretary Board Nomination Committee (BNC): - The primary
UBL pioneered a groundbreaking initiative of creating responsibility of the Committee is to review the nomination of
• There are no significant doubts regarding the Bank’s ability directors, including their profile, academic background, skills,
employment opportunities for non – graduate young Pakistanis
to continue as a going concern. BOARD INTERNATIONAL COMMITTEE (BIC): knowledge and experience. The Committee is responsible for
who have not been able to complete their education on account
of financial limitations. We have successfully on boarded over reviewing the overall structure, size and composition of the
• There has been no material departure from the best Lord Zameer M. Choudrey, CBE, SI Pk Chairman Board and its committees and to make recommendations to the
2000 bright young minds and are also helping them to complete practices of corporate governance. Sir Mohammed Anwar Pervez, OBE, HPk Member Board in this regard. The Committee also makes
their undergraduate degrees alongside their work.
The Honourable Haider Zameer Choudrey Member recommendations for filling casual vacancies on the board and
• Performance highlights for the last six years are attached to
Mr. Rizwan Pervez Member board subcommittees and monitor the annual board evaluation
Credit Rating these unconsolidated financial statements.
Mr. Daniel Michael Howlett Member
VIS Credit Rating Company Limited (VIS) re-affirmed the entity process as per regulatory requirements.
• Profit amounting to Rs.8.1 billion has been transferred to Mr. Muhammad Irfan A. Sheikh Member
ratings of UBL at ‘‘AAA / A-1+” (Triple A / A-One Plus) in June
Statutory Reserve for the year 2024. Mr. Tariq Rashid Member Board International Committee (BIC): - The Committee has
2024. Furthermore, UBL’s Additional Tier-1 (ADT-1) TFC has also
Ms. Shazia Syed Member been constituted primarily to review the overall strategy of the
been re-affirmed at ‘AA+’ (Double A plus). Outlook on the
• The Board of Directors consists of eight* (8) male, including Mr. Muhammad Jawaid Iqbal Member Bank with special reference to its International Operations and
assigned ratings are ‘Stable’.
President & CEO and one (1) female member. The detailed Mr. Mahboob Avais Saeed Secretary global positioning.
composition of the Board is given in paragraphs 1 and 2 of the
Awards and Recognition Statement of Compliance with the Code of Corporate Governance. A brief description of the core functions under the ToRs of each Directors appointment and nomination
In 2024, UBL continued to set industry benchmarks, earning
sub-committee are as follows: - The directors of the Bank are elected by the shareholders while
numerous prestigious accolades across financial services, • An evaluation of the performance of the board and its Board Audit Committee (BAC): casual vacancies are filled by the directors in accordance with
digital innovation, marketing, and social impact. The State Bank sub-committees was conducted in line with the applicable The primary activity of the board audit committee is to provide the articles of association and the applicable laws and
of Pakistan named UBL the Top Bank in Pakistan Remittance regulatory framework and best practices. oversight of the financial reporting process, the audit process as regulations. Furthermore, every new director has to pass
Market, while J.P. Morgan Chase recognized its operational
well as the system of internal controls and compliance with laws through the assessment criteria of ‘Fit and Proper Test’
excellence with the STP Excellence Award 2024. UBL’s digital • Details of Directors’ training programs are given in the
and regulations. The committee reviews the results of audits as set and advised by the State Bank of Pakistan.
leadership was underscored by the Best Mobile Bank App Statement of Compliance with the Code of Corporate
with the Bank’s management as well as the external auditors. While appointing a director, it is ensured that the Board is well
Award at the Pakistan Digital Awards 2024 and four wins at the Governance. the Statement of Compliance with the Code of
The committee also reviews the scope and extent of internal structured comprising of members who have diversified
Asia Banking and Finance Awards 2024, including Digital Corporate Governance.
audit, audit plan, reporting framework and procedures and experience, suitable knowledge, appropriate skill set, expertise
Transformation of the Year.
• The Non-Executive Directors, including Independent ensures that the internal audi function has adequate resources and competency related to the Bank's operations, creating an
Directors, are eligible for fees and travelling related and is appropriately placed within the Bank. The committee also effective decision making body. It is also ensured that the
The bank’s marketing and social initiatives also earned top
expenses for attending meetings of the Board and its provides oversight and review of the internal control over Board contains appropriate mix of non-executive, independent
honors, including a Silver Effie in Finance, the Social Impact
Committees, as approved by the Shareholders. financial reporting (ICFR) system for effective implementation and female members that meet all the requirements of the
Award at the IPR Awards in London, and seven wins at the
and its upgrade. applicable laws and regulations regarding diversity, size of the
GDEIB Awards. Further solidifying its standing in Islamic
finance, UBL was globally recognized for Ameen Esaar, winning The Board has constituted the following six Committees with board and have no material conflicts of interest.
Board Human Resource & Compensation Committee
Best New Islamic Product Launch of the Year at the Global defined Terms of Reference (ToRs):
(HRCC): The committee is responsible for recommending to the Active role of Independent Directors is ensured to enhance the
Islamic Finance Awards 2024. These achievements highlight Board the overall remuneration mechanism and policy across overall effectiveness of the Board. While selecting and
UBL’s continued commitment to innovation, excellence, and Board Audit Committee (BAC):- the Bank and ensuring that the policies are aligned with appointing independent directors, the applicable provisions of
leadership. Ms. Shazia Syed Chairperson regulatory requirements. The purview of the committee includes the laws, rules and regulations are meticulously complied with.
The Honourable Haider Zameer Choudrey Member the review of the overall compensation and benefit structure, Independent Directors are selected to demonstrate the
Future Outlook Mr. Rizwan Pervez Member including material risk takers (MRTs) and material risk transparency and fairness in their role and also to provide an
Looking ahead, UBL will continue to invest in its branch Mr. Tariq Rashid Member controllers (MRCs), headcount levels, as well as recommending objective and independent judgment in the best interest of the
network. The Bank will continue to target low-cost deposits to Mr. Aqeel Ahmed Nasir Secretary human resource management policies to the Board. The Bank.
maximize the earnings potential of its balance sheet.Our committee is also responsible for recommending to the Board a

24 United Bank Limited Annual Report 2024 25

The profiles of each director, including their qualification, The Bank operates five funded retirement schemes which are
expertise, past work experience along with their status as well the Provident Fund, Gratuity Fund, Pension Fund, Benevolent
Remuneration Framework targets. Ratings are assigned to MRTs and MRCs based on this
In compliance with regulatory guidelines, UBL has a risk-adjusted performance assessment. These scorecards are
as their membership on board(s) / Shariah Board(s) of other Fund and General Provident Fund. reviewed every year, with interim reviews carried out in case of
comprehensive remuneration policy to ensure that the Bank’s
companies is included in the directors’ profile in the Annual any significant changes in underlying circumstances
remuneration practices attract, retain and reward the best
Report. The values of the investments of these funds, based on their
talent, are in compliance with regulatory guidelines and are
Board Performance Evaluation latest audited financial statements as at
aligned with the Bank’s overall strategic objectives. Remuneration of MRTs and MRCs
To comply with the requirement of BPRD Circular No. 05 of 2021 December 31, 2023, are as follows: - The compensation structures for MRTs and MRCs is determined
dated November 22, 2021 - The Corporate Governance UBL’s Board of Directors has the overall responsibility for and proposed by the Human Resources department which
Fund Name Rupees in ‘000 ensures an appropriate balance between fixed and variable pay,
Regulatory Framework, a formal process of evaluation of Employees’ Provident Fund 7,476,434 reviewing, approving and monitoring the implementation of the
performance of the Board as a whole and its committees has remuneration framework, based on the recommendations of the considering the employees position, roles and responsibilities,
Employees’ Gratuity Fund 1,602,840
been framed and implemented according to the prevailing Board Human Resource and Compensation Committee as well as performance against financial and non-financial
Staff Pension Fund 12,008,354
regulatory instructions. Staff General Provident Fund 690,725 (HRCC). objectives and KPIs. The compensation for MRTs and MRCs
Officers / Non-Officers’ Benevolent Fund 302,844 includes fixed and variable elements similar in structure to the
Compensation of Directors The Bank offers a remuneration structure comprising of both Banks’ remuneration policy for all employees.
Considering the requirements of Corporate Governance fixed and variable elements. Some of the key features of the
Regulatory Framework guidelines issued by State Bank of Pattern of Shareholding remuneration structure are as follows: - Fixed remuneration comprises of base salary, increments and
Pakistan through the circular # BPRD Circular No. 05 dated Nov The pattern of shareholding as at December 31, 2024 is given role-based fixed allowances if applicable. The Human
22, 2021, the Board approved the revisions in the Directors’ below: - Resources department drives an appropriate benchmark using
Fixed remuneration: This comprises of the base salary,
Remuneration Policy in its meeting held on February 23, 2022 including any annual increments, and role-based fixed external market data, in order to ensure the appropriateness of
Shareholders No. of Shares % of Ordinary
and recommended the same to the General Meeting for its final Shares allowances, if applicable. Fixed remuneration does not vary with the fixed remuneration to attract and retain employees.
approval. The latest revision of the policy was approved by the Bestway Group (BG) 784,022,042 64.04% performance and is payable in cash.
Directors in their meeting held on March 29, 2023 and has been General Public & Others 352,325,359 28.78% Variable remuneration is performance based, similar to the
recommended to the General Meeting for its post facto Banks, DFIs & NBFIs 17,678,79 9 1.44% Variable performance-based remuneration: These are Bank’s other employees.
approval, as per the requirements of the applicable regulatory Insurance Companies 53,651,802 4.38% determined based on the Bank’s overall performance,
instructions. Under this policy, non-executive directors, Mutual Funds 15,530,860 1.27% profitability of the respective business unit and the employee’s The employee score can be adjusted downwards for elements
including the Chairman will be eligible to receive an amount of International GDRs (non-voting shares) 969,111 0.08% individual performance. Such remuneration takes the form of of underachievement in financial performance, undue risk
Rs.800,000/- for attending each meeting of the Board and/or its Finance Division, Ministry of Finance, annual or periodic bonuses and sales incentives. exposure, customer related issues, audit / internal controls and
1,714 0.00%
committees. In addition to the meeting fees, the Chairman of Govt. of Pakistan compliance ineffectiveness.
the Board / Committees will be entitled to an amount equal to Total Outstanding Shares 1,224,179,687 100.00% Other Benefits: These are awarded based on individual
20% of the Board / committee meeting fee for holding the office employment contracts and local market practices. These may Deferral Mechanism
of the Chairman. The policy also covers traveling, logistics and include staff loans, expense allowances / reimbursements, life A certain portion of the MRTs and MRCs variable compensation
accommodation expenses as well as daily allowance The aggregate shares held by the following are: will be withheld for a defined period whereas remaining portion
insurance, medical care and relocation allowances amongst
entitlements. No. of Shares others. of the variable compensation shall be paid up-front. This is
a) Associated Companies, undertakings & related parties aimed at aligning the employees’ and stakeholders’ interests
The details of compensation of directors in 2024 are disclosed and reinforcing that compensation is appropriately linked to
- Bestway International Holdings Limited * 631,728,895 Sign-on / Joining Bonus: This is considered as part of variable
in Note 41.2 to the unconsolidated financial statements. - Bestway Cement Limited 118,69 3,79 9 longer-term sustainable performance. The deferral percentage
pay and is granted only in exceptional cases in accordance with
- Providus Capital (Pvt) Limited 43,055,000 HR policies. is 20% for all MRTs and MRCs,while the deferral period for all
Meetings of the Board - Other related parties 51,709,259 MRTs and MRCs will be three years, and will be paid on vesting,
During the year under review, the Board of Directors met six (6 b) Mutual Funds ** 15,530,860 proportionally through yearly installments, during the deferred
Severance pay: These are part of an employee’s variable pay
times). The number of meetings attended by each Director c) Directors & CEO *** period.
and includes any payment made to employees at the time of
during the year is shown below: - Sir Mohammed Anwar Pervez, OBE, HPk 13,215,368
their retirement, separation or termination of contract over and
Name of the Director Designation Meetings
- Lord Zameer M. Choudrey, CBE, SI PK
- The Honourable Haider Zameer Choudrey
8,104,041
3,176,500 above their normal retirement, separation or termination Risk Management Framework
Attended benefits. UBL’s Risk and Credit Policy Group has the following verticals:
- Mr. Rizwan Pervez 546,545
Sir Mohammed Anwar Pervez, OBE, HPk Chairman 5
- Mr. Muhammad Irfan A. Sheikh 650,000
Lord Zameer M. Choudrey, CBE, SI Pk Director 6 - Mr. Daniel Michael Howlett 2,500 Material Risk Takers (MRTs) and • Credit Risk Department
The Honourable Haider Zameer Choudrey Director 6 • Corporate Risk
Mr. Rizwan Pervez Director 6
- Mr. Tariq Rashid 2,500 Material Risk Controllers (MRCs) • SME Risk
- Ms. Shazia Syed 2,500
The criteria for an employee to be designated as an MRT / MRC
Mr. Daniel Michael Howlett Director 6 - Mr. Muhammad Jawaid Iqbal 533,330 • Financial Institution Risk
has been developed in accordance with regulatory guidelines
Mr. Tariq Rashid Director 6 d) Executives 533,330 • International Risk
and best practices. MRTs and MRCs are identified as functions
Ms. Shazia Syed Director 6 e) Public sector companies, corporations and others 265,362,989 • Credit Policy and Research Department
f) Banks, DFIs, NBFIs, Insurance Companies 71,330,601 and designations having appropriate level of authority and
Mr. Muhammad Irfan A. Sheikh Director 6 • Market & Treasury Risk and Basel Department
control within the Bank. MRCs have appropriate level of
Mr. Muhammad Jawaid Iqbal President & CEO 6 • Operational Risk
* The Bank is a subsidiary of Bestway International authority and control and are duly governed by approved
• Consumer Risk
HoldingsLimited which is incorporated in the Guernsey. organograms having clearly defined independent reporting
• Credit Administration Department
Meetings of Board Committees lines.
• Information Security
The number of Board Committees’ meetings held during the ** Name wise detail of Modarabas & Mutual Funds is annexed • Environmental, Social & Governance
year and the number of meetings attended by the directors is with Categories of Shareholders. MRTs and MRCs include employees and designations
shown below: entailing; President and CEO, members of management teams
The Bank’s risk governance is exercised the following
Shareholders holding 5% or more No. of Shares % reporting directly to the President and CEO, members of critical
BAC BRCC HRCC BITC BIC* BNC
voting rights
committees:
management committees, heads of critical functions
Number of meetings held 4 4 4 4 4 1
Number of meetings attended: Bestway International Holdings Limited 631,728,895 51.60 responsible for managing businesses, risks and controls,
1. Management Risk Committee
Sir Mohammed Anwar Pervez, OBE, HPk - - 3 - 3 1 Bestway Cement Limited 118,693,79 9 9.70 country heads of overseas branches. MRTs and MRCs also
2. Information Technology Steering Committee
Lord Zameer M. Choudrey, CBE, SI Pk - 4 4 - 4 1 include employees taking decisions, which may affect the
The Honourable Haider Zameer Choudrey 4 - - 4 4 1 Trades in the shares of UBL carried out by Directors, Executives Bank’s exposure to credit risk, market risk, operational risk and
Mr. Rizwan Pervez 4 - - 4 4 - Management Risk Committee (MRC) is chaired by the
and their spouses and minor children are annexed along with liquidity risk based on appropriate materiality levels.
Mr. Muhammad Irfan A. Sheikh - 4 - 4 4 - President/CEO and comprises Heads of Risk, Business,
Mr. Daniel Michael Howlett - 4 - 4 4 - the Pattern of Shareholding.
Finance, Treasury and Operations. Other stakeholders may be
Mr. Tariq Rashid 4 - 4 - 4 - MRT and MRC performance is measured using risk-adjusted
invited to attend if deemed necessary. The MRC functions as a
Ms. Shazia Syed 4 - 4 - 4 -
-
Shariah Board balanced scorecards, ensuring correlation and alignment of
management-level committee responsible for the oversight and
Mr. Muhammad Jawaid Iqbal - 4 - 4 4
The details relating to Shariah board and its members required risks and rewards, incorporating various financial and
review of the bank’s risk management framework.
No Director or Committee member absents himself/herself from to be disclosed in the Director’s Report are covered in the non-financial, qualitative as well as ‘risk-adjusting’ factors. Each
any meeting except under the leave of absence in line with the Report of Shariah Board as part of the Annual Report category within the scorecard includes multiple factors and
applicable regulatory instructions. KPIs which is assessed based on appropriate benchmarks and

26 United Bank Limited Annual Report 2024 27

The Information Technology Steering Committee is chaired by Operational risk is primarily responsible for the oversight of Sustainability at UBL in 2024
the Deputy CEO and comprises Heads of all Groups. The operational risk management across the Bank. The operational In line with UBL's dedication to the principles of ESG, the bank's
Committee is responsible for reviewing and undertaking strategic risk management framework of the Bank is governed by the sustainability efforts support initiatives that positively impact
information and cyber security related reviews. operational risk management policy and procedures, while the and empower communities. Throughout 2024, UBL contributed
implementation is supported by an operational riskmanagement to various projects within its core sustainability focus
The Credit Risk Division is responsible for managing and system and designated operational risk coordinators within areas—education, healthcare, and community welfare. In
overseeing risk across corporate, SME, financial institutions, different units across the Bank. education, the bank sponsored scholarships for deserving
and international portfolios. It plays a pivotal role in reviewing students and provided essential infrastructure for the
and approving credit proposals, ensuring that the bank Further, as part of Bank’s ongoing commitment to enhance development of educational institutions. In healthcare, UBL
maintains a high standard of credit quality through effective Bank’s services and to ensure Bank-wide risk awareness offered free medical services to patients and donated critical
portfolio management. Additionally, the division actively culture, Operational Risk has also organized special medical equipment to hospitals. As part of its community
monitors ongoing credit performance, identifying potential risks workshops/classroom trainings tailored for Pan Pakistan branch welfare initiatives, the bank supported small-scale livelihood
and raising timely alerts when necessary. operations team. projects, vocational training, and organized a food drive to
assist families during Ramadan. Additionally, UBL fostered
In line with the SBP Risk Governance Framework for Overseas UBL has a dedicated Information Security function within the employee involvement in community welfare efforts, with teams
Operations, the risk management function for the International Risk and Credit Policy Group, tasked with managing information across Pakistan volunteering and becoming pillars of support in
division is being managed from Head Office. During the year, security risks. The division protects the Bank’s technology and their communities.
several initiatives such as selective onboarding of high-quality information assets by proactively preventing, detecting, and
assets within advances, focus on cost efficiencies, proactive responding to both internal and external threats. Statement of Internal Controls
portfolio management, mapping of policies with domestic The Board is pleased to endorse the statement made by the
structure as well as gap analysis of local regulatory guidelines The Information Security function consists of the following management relating to Internal Controls over Financial
continued. Units: Reporting (ICFR) and also the overall internal control
environment. The Statement on Internal Controls is also
The Consumer Credit portfolio has continued to sustain its • Information Security Governance, Risk & Compliance (GRC) included in the Annual Report.
steady growth under a well-managed risk environment. The • Infrastructure & System Security
controlled level of portfolio delinquencies is owed to robust • Vulnerability Assessment & Penetration Testing Auditors
portfolio management for NPLs including but not limited to • Cyber Security Monitoring & Incident Response The present auditor, M/S. EY Ford Rhodes retire, and being
stress testing. Periodic review of policies along with automation eligible, offer themselves for reappointment at the Annual
in risk management procedures ensured a well aligned risk and The Information Security GRC unit is crucial in developing and General Meeting after the expiration of their term.
reward profile of the portfolio. maintaining the bank’s Information Security Governance
framework. It regularly conducts risk assessments to identify The Board of Directors and the Board Audit Committee
The role of Market & Treasury Risk includes defining and and evaluate and cybersecurity risks, offering recommend the appointment of M/S EY Ford Rhodes as the
implementing a market risk management framework to recommendations for mitigation. Additionally, it oversees external auditors for the financial year 2025 at a fee of Rs. 20
systematically identify, assess, monitor, mitigate, and report security compliance, risk management, and the creation and million, while out of pocket expenses and taxes would be paid
market related risks. The day-to-day market risk management implementation of security policies,procedures, guidelines, and on actuals.
activities are being performed through use of effective risk standards.
management tools and processes. The aim of risk identification Conclusion
and assessment is to mitigate the risk impacts on bank’s The System & Infrastructure Security and Vulnerability On behalf of the Board of Directors, we would like to express our
financial earnings, long-term strategic goals, and institution Assessment & Penetration Testing units proactively assess the appreciation to UBL’s shareholders and customers for their
reputation with a mindset to facilitate business growth within a security of the bank’s information systems and infrastructure by continued trust in the UBL brand and to the UBL staff for their
controlled and transparent overall risk management framework. simulating realworld hacking scenarios. Addressing commitment and dedication. We would also like to extend our
vulnerabilities promptly is essential to enhancing the bank’s gratitude to the Government of Pakistan, the State Bank of
The objective of the Bank’s liquidity risk management cybersecurity posture. Pakistan, the Securities and Exchange Commission of Pakistan
framework is to ensure that the Bank is able to fulfill its payment and other regulatory bodies for their continuous guidance and
obligations at all times and manage its liquidity risk within the The Cyber Security Monitoring unit ensures 24/7 surveillance, support.
defined tolerance level. The framework entails a comprehensive detecting cyberattacks, intrusion attempts, and suspicious
Liquidity Risk Procedural Manual and well-defined procedures activities. This continuous monitoring is vital for responding For and on behalf of the Board,
along with an effective Contingency Funding Plan. Senior swiftly to threats targeting the bank's infrastructure.
management oversight of market and liquidity key risk
indicator(s) are managed through the GALCO committee. To counter social engineering frauds, the bank conducts regular
awareness campaigns, offering training on security topics like
The Bank, at all times, has maintained its Capital Adequacy phishing, identity theft, and online fraud through various
Ratio (CAR) well above the regulatory thresholds under the platforms, such as L&D portals and phishing simulation
prescribed Basel-III regulations, inclusive of all applicable exercises. These efforts aim to raise awareness among both
buffers. The Bank is classified as a Domestic Systemically internal and external customers, equipping them to address
Important Bank (D-SIB) and remains compliant to the additional security challenges.
supervisory requirements as laid down in the framework. The
Internal Capital Adequacy Assessment Process (ICAAP)
Framework is well defined and is reviewed on an annual basis. As cybersecurity becomes increasingly complex, with hackers
evolving alongside current solutions, the bank acknowledges
UBL has a dedicated Information Security Division, the growing reliance on technology, particularly in digital
functioning within Risk and Credit Policy Group who manages banking. To stay ahead, the bank will continue prioritizing the
information security risks to protect the technology and security of its data and ICT systems through a three-tiered
information assets by preventing, detecting and responding to approach:
threats, both internal and external.
• Maximize the value of existing security solutions.
Operational risk is the risk of loss resulting from inadequate or • Monitor emerging trends and deploy necessary security Muhammad Jawaid Iqbal Daniel Michael Howlett
failed internal processes or systems, human factors or from controls. President & CEO Director
external events. The Bank’s businesses are dependent on the
ability to process a large number of transactions efficiently and Continuously strengthen the in-house team to ensure effective
accurately. utilization of security measures, ensuring the bank’s protection Islamabad,
every day. February 19, 2025

28 United Bank Limited Annual Report 2024 29

 631,728,895

118,693,799

43,055,000

51,709,259

15,530,860

13,215,368

8,104,041

3,176,500

546,545
650,000

2,500

2,500
2,500

535,000

533,330

265,362,989
71,330,601

30 United Bank Limited Annual Report 2024 31

 5

32 United Bank Limited Annual Report 2024 33

34 United Bank Limited Annual Report 2024 35
 STRENGTHENING
THE NATION
UBL’S COMMITMENT
TO PAKISTAN
A strong banking system plays a crucial role in building
a resilient economy, and UBL has been a proud
contributor to Pakistan’s financial growth for decades.
By supporting key industries, driving investments, and
enabling financial inclusion, we continue to play our part
in the country’s progress. From empowering businesses
to facilitating infrastructure development, UBL remains
committed to fostering economic stability and creating
opportunities that benefit people and the nation as a
whole.

36 United Bank Limited Annual Report 2024 37

UNITED BANK LIMITED (UBL) ESG & SOCIAL (S)
SUSTAINABILITY REPORT SUMMARY Maternity Leave Extension
Maternity leave was extended from
Raising Awareness
Conducted a month-long internal
3 to 6 months. and external communication
At UBL, our commitment to sustainability encompasses environmental, social, and governance (ESG) principles to create long-term campaign for Breast Cancer
value for all stakeholders. We align our goals with the United Nations Sustainable Development Goals (SDGs) and focus on Awareness.
responsible corporate citizenship, driving a positive environmental impact, supporting local communities, and upholding robust
corporate governance.

OUR ESG PROGRAM Engaging Communities Workforce Diversity

UBL integrates ESG principles into its core business processes, promoting sustainability and ethical practices that benefit society Sustainability activities were 23% of the workforce is female, with
and the bank. The ESG Risk Management and Governance Framework ensures responsible decision-making, allowing UBL to carried out throughout the year a goal of 45% by 2025.
allocate resources effectively and mitigate risks. Through this framework, UBL enhances its social and environmental contributions in areas of education, healthcare
while supporting long-term growth and stability. and community welfare.

Our corporate philosophy incorporates ESG objectives, focusing on creating tangible, lasting societal impact. UBL is committed to
translating its vision into actions that benefit current and future generations, emphasizing environmental stewardship, social equity,
and transparent governance.
SheRise Development Plan Employee Health & Safety
ESG HIGHLIGHTS 2024 Multiple training sessions were
conducted, and SheRise WhatsApp
Benefits include medical
insurance, marriage grants, and
UBL has continually prioritized sustainability through various initiatives: groups were created for the Central, extended family support.
North, and South regions. An email
for SheRise was also developed to
empower women and facilitate quick
communication of problems and
harassment complaints.
ENVIRONMENTAL INITIATIVES (E)

Paperless Banking Renewable Energy Investment Youth Empowerment

550,406 digital accounts UBL has a current exposure of PKR 9 UBL pioneered an initiative to hire
were opened as part of the billion in renewable energy projects undergraduated students as
Digital and Paperless like wind, solar, and biomass. permanent staff, offering opportunities
Banking initiative. for young talent.

Energy Conservation Solar Energy Conversion

All branches converted to LED 163 branches switched to solar power
lighting, with awareness campaigns
on energy conservation.
to reduce reliance on conventional
energy. GOVERNANCE (G)
Governance & Integrity Regulatory Compliance
All employees are trained annually UBL adheres to local (SBP, SECP)
on risk and compliance. and international regulations across
its operational regions (UAE, Bahrain,
Qatar).
Tree Plantation Drive Branchless Banking
UBL sponsored a tree plantation (Omni Accounts)
initiative, planting over 600 trees in 18,080 Omni accounts opened to
collaboration with Air Weapons Complex. offer a branchless banking
solution, supporting energy
conservation and easy banking. Board Diversity & Independence Ethics and Code of Conduct
The board includes a diverse range of Annual revisions to the code of conduct
expertise, with separate roles for the ensure ethical practices across UBL’s
Chairman and CEO. operations.

Deforestation Prevention
UBL discourages financing clients
involved in deforestation.

38 United Bank Limited Annual Report 2024 39

Strategic Priorities bank’s activities, ensuring social and environmental risks are 4. Identifying Gaps and Actions: Any gaps in the borrower’s Green Branch Certification Programme
identified and mitigated. It includes due diligence procedures environmental and social management practices are
UBL’s ESG strategy aligns with its corporate values, with a focus before loan approval, and throughout the loan term, fostering identified. UBL works with borrowers to implement To ensure its operations align with sustainability goals, UBL has
on integrating ESG considerations into business decisions, sustainable operations and risk management. mitigation actions, and monitors progress to ensure that launched a Green Branch Certification Program. This initiative
ensuring long-term sustainability. Key strategic priorities risks are effectively managed. evaluates branches based on sustainability criteria, promoting
include: The ESG RMGF ensures that UBL upholds its commitment to operational efficiency and innovation. The certification program
ESG principles, strengthens its risk management capabilities, II. E&S Risk Assessment Methodology and Model assesses factors such as:
1. ESG Risk Management & Governance Framework: A and aligns with global sustainability trends. By embedding ESG
robust framework guides decision-making by setting risk considerations into its daily operations, UBL contributes to both • Risk Identification: Identifying key ESG risks, such as • Site Suitability: Evaluating branch locations for
appetites, materiality assessments, policies, and reporting business stability and global sustainability goals. those related to environmental impacts, social accessibility and landscaping.
practices. responsibility, and governance challenges.
ESG Materiality Assessment • Renewable Energy: Incorporating renewable energy
2. Product & Service Analysis: UBL systematically identifies • Risk Evaluation: Assessing the likelihood and potential sources to reduce carbon emissions.
environmental and social risks in its products and services, Materiality is an important principle that ensures we remain impact of identified risks, helping the bank understand
focused on the sustainability-related risks and opportunities, their potential effects on operations. • Resource Efficiency: Implementing energy-efficient
enabling timely risk management. technologies and assessing water usage.
that support our resilience and ability to create long-term value.
3. Integration of E&S Risks in Credit Assessment: • Risk Categorization: ESG risks are categorized into direct,
UBL is committed to sustainable and responsible banking, indirect, and reputational risks, helping prioritize and • Waste Management: Improving waste segregation and
Environmental and social risks are embedded in UBL’s disposal practices.
credit risk process to ensure financial stability and recognizing the importance of managing environmental, social, manage them effectively.
alignment with sustainability goals. and governance (ESG) risks and opportunities for long-term
• Risk Mitigation: Designing and implementing strategies to • Indoor Environment Quality: Assessing air quality,
success. Through this Materiality Assessment, we have
address and mitigate ESG risks, ensuring alignment with lighting, and employee well-being.
4. Capacity Building: Enhancing compliance with ESG identified and prioritized key ESG factors that support both our
standards foster a culture of sustainability across UBL. business growth and the fulfilment of international standards & both regulatory requirements and sustainability goals.
2. Digital Banking Practices for Sustainability
legal requirements. This approach enables us to design a
5. Financial Crime Prevention: This initiative ensures strong • Integration in Decision-Making: ESG factors are
sustainable strategy, prioritization, set targets, and create UBL is embracing digital banking as a means to reduce its
governance and customer trust, supporting long-term integrated into UBL’s decision-making process, influencing
opportunities while ensuring alignment with both business environmental footprint and promote sustainability.
sustainability. investments, lending, and credit assessments.
objectives and global sustainability requirements.
• Continuous Monitoring: UBL monitors ESG risks Customer Carbon Footprint Calculation
6. Human Rights: UBL upholds human rights within its ESG UBL Environmental and Social (E&S) Commitment: A
responsibilities, addressing risks and opportunities in the continuously, ensuring that emerging risks are addressed UBL’s digital app allows customers to assess their own carbon
Comprehensive Sustainability Approach
banking sector. promptly. footprints, encouraging them to make environmentally friendly
Environmental Responsibility: choices through digital transactions, reducing time, fuel, and
7. Employee Engagement & Culture: UBL fosters a positive 2024 Carbon Footprint Calculation and Impact Reduction environmental impacts.
work environment, which enhances employee retention, UBL recognizes the importance of environmental responsibility Targets
productivity, and success. and actively works to mitigate ecological risks through strategic Paperless Customer Onboarding
initiatives. The bank has integrated various efforts, such as As part of its commitment to environmental sustainability, UBL
8. Technology Resilience: Cybersecurity and data protection efficient energy management, investment in sustainable has undertaken a detailed carbon footprint assessment for UBL has introduced a paperless customer onboarding process,
are prioritized to maintain trust and ensure business projects, ethical financing, and the protection of natural 2024. The bank estimates its Greenhouse Gas (GHG) emissions capturing customer and account details digitally. This initiative
continuity. resources, into its operations. By focusing on these actions, across three defined scopes, in alignment with the Greenhouse reduces paper waste and enhances operational efficiency.
UBL demonstrates its commitment to responsible banking Gas Protocol.
9. Fair Treatment of Customers: UBL ensures transparent Digital Banking Innovations
practices and environmental stewardship.
and respectful treatment of customers, strengthening Carbon Footprint Breakdown:
loyalty and trust. • Digital Buddy: An AI-powered chatbot that serves as a
1. Scope 1 (Direct Emissions): These emissions result from staff resource for banking-related queries, enhancing
10. Green Facilitation: UBL focuses on green finance UBL’s operations, such as the fuel used in its facilities and operational efficiency.
solutions, supporting environmental stewardship and vehicles.
sustainable growth. • Policy and Procedure Repository: A centralized digital
2. Scope 2 (Indirect Emissions): These emissions come from platform that streamlines access to internal documents,
11. Resource Efficiency: UBL optimizes energy, water, and the electricity purchased and consumed by UBL for its ensuring better management and compliance.
resource usage to reduce its environmental footprint. operations.
• Product Knowledge System: A tool that helps staff access
12. Carbon Footprint Calculation: UBL tracks and reduces 3. Scope 3 (Other Indirect Emissions): Emissions from key product information, improving customer service.
greenhouse gas (GHG) emissions to contribute to global activities in the bank’s value chain, such as employee
climate goals. commuting and Financed Emission. 3. Go Green Initiatives

13. Data Aggregation & Reporting: Transparent reporting UBL’s Go Green initiatives encourage customers to minimize
helps UBL meet regulatory requirements and Impact Reduction Targets: their environmental impact by opting for digital solutions:
demonstrates its commitment to sustainability. I. Environmental and Social (E&S) Due Diligence Process UBL aims to reduce its carbon footprint through several • Go Green E-Statement: UBL promotes the use of electronic
14. Stress Testing & Scenario Analysis: UBL uses scenario initiatives: statements instead of printed ones, reducing paper
UBL has implemented a rigorous E&S due diligence process to
analysis to assess and mitigate future ESG-related risks. ensure that its activities and investments align with its consumption.
• Energy and Resource Efficiency: UBL will continue to
sustainability goals. This process includes several key steps: improve energy efficiency, reduce fuel consumption, and
15. Integration of E&S Risks into Operational Risks: E&S • Go Green SMS Alert: By encouraging customers to use
risks are integrated into market, liquidity, and operational Developing Sustainable Lending & Investment Framework minimize paper usage, contributing to lower emissions and SMS alerts, UBL reduces the need for in-branch visits and
risk management for holistic decision-making. waste paper-based communication.
1. Reviewing Information: UBL gathers and analyzes
16. Regulatory Compliance: UBL prioritizes regulatory available documentation regarding environmental and • Greenhouse Gas (GHG) Emissions Reduction: Measures 4. UBL’s Sustainable Financial Products
compliance, reinforcing its position as a responsible social risks, ensuring that relevant information is will be taken to reduce fuel consumption (Scope 1),
financial institution. considered when making decisions. decrease electricity usage (Scope 2), and encourage UBL has developed a range of sustainable financial products to
2. Site Inspections and Interviews: On-site inspections are sustainable commuting and assess financed emissions promote environmental responsibility and social inclusion.
17. Diversity and Inclusion (D&I): Embracing a diverse (Scope 3).
workforce drives innovation and supports long-term conducted, and interviews with the borrower’s personnel • Renewable Energy Financing: UBL offers subsidized
success. and stakeholders are carried out to assess the • Energy-Saving Technologies: UBL is investing in financing for renewable energy projects such as solar, wind,
environmental and social impacts of the business. energy-efficient technologies, including solar power and biogas. This initiative supports businesses transitioning
ESG Risk Management and Governance Framework (ESG 3. Performance Analysis: UBL evaluates business activities solutions, LED lighting, and optimized heating and cooling to sustainable energy solutions.
RMGF): against local regulations and international standards, assessing systems in its branches.
the environmental and social performance of the borrower. • Digital Accounts: UBL offers a variety of digital accounts
UBL has implemented the ESG RMGF to integrate ESG risks into catering to different customer needs, promoting financial
core business processes. This proactive framework guides the

40 United Bank Limited Annual Report 2024 41

 inclusion and digital banking. Notable offerings include • ‘SheRise’ Women’s Leadership Development: This For Customers continuing their education. UBL offers financial support for
Roshan Digital Account for Non-Resident Pakistanis, Asaan program empowers women within the organization, education, comprehensive benefits, and career advancement
Fair Treatment of Customers
Digital Account for individuals with basic banking promoting career growth, networking, and personal opportunities to these young employees.
requirements, and the Freelancer Digital Account for the development. UBL upholds transparency, fairness, and respect in its banking SUSTAINABILITY AT UBL - 2024
growing freelancer community. practices, offering personalized services and ensuring
• Gender Champions Training: UBL conducts training for regulatory compliance. It actively engages with customers In line with UBL's dedication to the principles of ESG, the bank's
• UBL Smart Account: A fully digital account with a branch managers to promote gender sensitivity and foster a sustainability efforts support initiatives that positively impact
user-friendly onboarding process, providing customers with a through feedback channels and adheres to best industry
respectful, inclusive workplace. practices to provide quality service. and empower communities. Throughout 2024, UBL contributed
seamless banking experience. The UBL Smart Account to various projects within its core sustainability focus
ensures faster, simpler banking while catering to diverse • International Women’s Day and Women Entrepreneurs Empowering Women and Financial Inclusion areas—education, healthcare, and community welfare.
customer needs. Celebrations: UBL celebrates women’s contributions
through events, such as Women’s Entrepreneurship Week • Urooj Platform: By the end of 2024, UBL had achieved
5. Inclusive Financial Solutions EDUCATION
and educational initiatives that empower female financial inclusion for 2.3 million women, including 40,000
entrepreneurs. Urooj account holders. The Urooj platform offers specialized Major initiatives in the area of education during 2024 were for
UBL is dedicated to promoting financial inclusion through
financial products and services for women. scholarships to deserving students as well as infrastructural
products tailored to various segments of society:
• Extended Maternity Leave and Other Benefits: UBL’s development at educational institutions.
• UBL Urooj Conventional Account and UBL Ameen Urooj: policies, such as extended maternity leave (6 months) and a
These accounts are designed for women, offering incentives dedicated valet parking service for female employees, • Supporting the ‘Uraan Ambassador Program’ at Kiran
like cashback on auto financing. support gender equity in the workplace. Foundation. Through this alliance, UBL empowered over 20
individuals with the potential to achieve their dreams by
• UBL Ameen Esaar Account: A unique Islamic product that • SIT Program and SheConnects Group: These initiatives gaining admission to Pakistan's top educational
helps individuals contribute to society by supporting NGOs. ensure women stay connected with the organization during institutions.
maternity leave and foster a supportive community for
• UBL Zindagi Account: A savings account specifically • Providing good quality education to children of low-income
professional growth.
designed for senior citizens, ensuring financial security in families in Karachi by partnering with the Education Trust
their later years. Nasra Schools. UBL provided full year academic
• Diversity in Hiring: The bank focuses on diversity in hiring to
scholarships to 45 students covering all their expenses
6. Supporting Sustainable Business Practices provide equal opportunities for career advancement to all
related to their tuition at the Trust’s various schools.
employees, regardless of their background.
UBL offers specialized financing solutions to small and medium • Investing in the educational development and providing
enterprises (SMEs) in sectors like agriculture and food innovative training and services to 15 hearing impaired
processing. These solutions encourage environmentally students associated with the Family Education Services
responsible practices: Foundation, thereby empowering the recipients to gain
competency and realize their full potential.
• UBL Solar Financing: UBL offers affordable financing for • Women Entrepreneurship Week and Empower HER
SMEs to adopt solar energy systems, helping businesses Finance Campaign: These initiatives focus on financial • UBL contributed towards the construction of four auditoriums
reduce their carbon footprint and operational costs. literacy and provide tailored solutions for women at the Namal College in Mianwali. These state-of-the-art
entrepreneurs. auditoriums would have the capacity to sit over 200 students.
• Rice Husking and Wheat Financing: UBL provides tailored
loans for rice husking and wheat flour mills, supporting • Inclusivity for Persons with Disabilities (PWDs): UBL • The Bank partnered with Developments in Literacy (DIL) by
seasonality-based business growth in the agriculture sector. introduced 35 accessible branches designed for PWDs, providing funds for solar power for one of their schools. This
ensuring dignity and ease of access to banking services. The contributed to UBL’s ESG agenda by giving back to the
Through these sustainable financial products, UBL supports bank also offers special discounts on loans for PWD communities through environment preservation and
environmental preservation while contributing to the Employee Training and Capacity Building customers. promotion of natural energy.
development of resilient local economies. UBL emphasizes employee training on Environmental & Social
Customized Financial Solutions HEALTHCARE
Risk Management (ESRM) to enhance awareness of Green
Social Responsibility in UBL’s ESG & Sustainability Banking and ESG practices across its departments. This UBL offers tailored products for low-income individuals, senior Major initiatives in the area of Healthcare include provision of
Framework initiative ensures alignment with local and international citizens, and small businesses, helping to foster inclusivity and much-needed medical/lifesaving equipment/vehicles to the
regulatory standards while supporting the bank’s culture of access to essential financial services. The bank’s focus is on healthcare institutions or supporting through donations given
UBL’s ESG & Sustainability framework highlights its strong
responsible banking. expanding access to banking solutions for underserved for infrastructural/operational expenses.
commitment to social responsibility, focusing on nurturing
communities, especially through mobile banking and digital
relationships with stakeholders while ensuring positive societal Employee Remuneration & Benefits • The Bank provided funds to Indus Hospital & Health Network
platforms like UBL Digital App.
impact. This commitment is reflected through various initiatives to assist them in the provision of complete treatment and
aimed at promoting the well-being of employees, supporting • Health Insurance and Bonuses: UBL offers comprehensive Promoting Financial Literacy medical care for 25 paediatric oncology patients, provide for
diverse communities, and upholding ethical standards across health insurance, performance-related bonuses, and various 7,500 Paediatric oncology outpatient department (OPD) visits
all practices. The bank emphasizes healthcare, education, employee well-being programs. • Financial Literacy Week: UBL organized financial literacy
camps and webinars, especially targeting women customers, and 2600 Chemotherapy Sessions during the year 2024.
women’s empowerment, community welfare, and cultural
promotion as part of its broader social goals. In 2024, UBL • Medical Insurance: This covers employees and their to enhance financial awareness. • UBL partnered with the Cancer Foundation Hospital (CFH)
demonstrated its social responsibility through impactful dependents, ensuring access to healthcare services. and Roche Pakistan in efforts to provide access to deserving
• Partnership with SheDev: UBL partnered with SheDev to
programs that aligned with its ESG objectives. promote financial inclusion for women in Gilgit-Baltistan and breast cancer patients of the CFH to Roche Pakistan’s
• Marriage Grants and Day Care Allowance: UBL provides medication protocols at subsidized or nil cost, which would
financial support for marriages and child care, reflecting its encourage women to enter the banking sector.
For Employees otherwise be completely out of their reach.
commitment to family-friendly policies.
Employee Development and Well-being Community Engagement • The Bank joined hands with Afzaal Memorial Thalassemia
• Solar Financing for Employees: UBL offers discounted Foundation (AMTF) to assist them in their monthly operational
UBL recognizes employees as its most vital asset, focusing on solar financing for employees, encouraging sustainability. Volunteerism expenses so that they maintain a smooth flow of operations
continuous development, a positive work culture, and providing • Employee Well-being: The bank runs programs for mental and ensure that no patient is refused treatment.
UBL encourages its employees to engage in volunteer work,
competitive benefits. The bank strives to create an environment and physical health, such as stress management workshops, supporting various community-focused initiatives, such as • With the assistance of UBL, the Marie Adelaide Leprosy
where employees are encouraged to achieve both personal and regular health check-ups, and counseling services. environmental conservation and healthcare campaigns. Center (MALC) Malir Centre was able to provide Free of
professional growth.
Employee Accountability and Grievance Mechanisms Pioneering Initiatives for Youth and Education Charge services (Leprosy, TB, Eye, MCHC & CBID) to the
Diversity, Equity, and Inclusion (DEI) inhabitants of Malir, Karachi. Through these services, MALC
UBL ensures transparency and fairness in handling grievances Employment Opportunities for Youth was able to treat the underserved people living in the area.
• Women’s Representation: UBL is committed to gender through an effective grievance mechanism. Regular feedback
diversity, with women comprising 23% of its workforce, with a sessions and a robust code of conduct ensure accountability and UBL’s ground breaking initiative to hire undergraduated • The Bank donated to The Karachi Down Syndrome Program
target to increase female representation to 45% by 2025. continuous improvement. students into permanent roles as OG4 staff provides young (KDSP) in order to provide year-long healthcare to individuals
individuals with the opportunity to grow professionally while with Down syndrome. Around five patients were given

42 United Bank Limited Annual Report 2024 43

 all-inclusive healthcare for the entire year under the auspices billion financing for Engro Fertilizers, and PKR 8 billion credit community development projects, such as financial literacy
of KDSP. facility for Lucky Cement, and a USD 300 million loan to the programs for women and healthcare support for children,
Government of Pakistan, contributing to the nation's fiscal further supporting its ESG goals.
• Layton Rehmatullah Benevolent Trust (LRBT): Medical
stability and growth.
equipment for their LRBT Korangi Tertiary Teaching Eye IFC Performance Standards Compliance
Hospital, in Karachi, which treats over 1100 patients daily and These initiatives reflect UBL’s ongoing dedication to sustainable
conducts approximately 3064 surgeries monthly. growth, social responsibility, and national prosperity. UBL is dedicated to meeting the International Finance
Corporation (IFC) performance standards, ensuring responsible
• Patients Aid Foundation: Provided 18 electronic beds for their banking practices that align with international ESG frameworks.
UBL Governance, Business Ethics, and ESG Initiatives
Neuro-trauma ICU. The bank has incorporated ESG risk assessments into core
At UBL, good governance, transparency, accountability, and banking activities and sectors, ensuring due diligence is
• National Institute of Child Health: Provided five incubators for
ethical behavior are central to our operations. We prioritize conducted before providing financial support to industries. UBL
their ICU and five complete sets of bedside oxygen via
stakeholder interests and adhere to a strict code of conduct, also champions community health and safety initiatives, such as
integrated raceway.
which is revised annually for both Directors and employees. Our blood donation drives, cancer awareness campaigns, and
• In 2024, UBL contributed to Shaukat Khanum Memorial commitment extends to maintaining robust risk and control emergency healthcare programs.
Cancer Hospital (SKMCH) to facilitate them in the policies across all business areas, guided by SBP and
Board-approved frameworks. SECP Guidelines Compliance
construction of their Karachi Hospital.
In terms of corporate responsibility, UBL embraces a cultural UBL adheres to the Securities and Exchange Commission of
• UBL supported the Dr. Ruth K.M. Pfau Civil Hospital, Karachi Cultural Shift Towards Sustainability
shift towards ESG (Environmental, Social, Governance) Pakistan (SECP) ESG Disclosure Guidelines, which promote
(CHK) in the formulation of a centralized I.V. Antibiotics
integration, driven by leadership and employee engagement. transparency and corporate responsibility. These guidelines UBL is transforming its operations to prioritize sustainability
Dilution Laboratory. Built in a period of two years, this lab not
We recognize the critical importance of data security and encourage businesses to integrate sustainability into their across all its banking touchpoints. With over 1,500 branches
only ensures correct unit dose delivery of antibiotics to
cybersecurity, implementing rigorous measures to protect operations. UBL’s initiatives include healthcare awareness, and 1,580 ATMs, the bank has implemented various strategies
patients, but also helps in minimizing medication errors.
customer information. Our cybersecurity team conducts community support programs, financial inclusion, and green to reduce its environmental impact. These include promoting
penetration testing and educates stakeholders about digital finance. The bank ensures compliance with ESG disclosure paperless banking, engaging with eco-friendly suppliers,
COMMUNITY WELFARE
fraud risks, including phishing and identity theft. requirements to enhance transparency and accountability in its prioritizing energy conservation, and adopting digital banking
2024 saw UBL partake in various activities which helped build banking operations. solutions to minimize resource wastage. UBL's commitment to
communities while simultaneously supporting inclusion and UBL's comprehensive Digital Fraud Prevention Policy focuses sustainable banking practices extends beyond its internal
on fraud risk assessment, monitoring, incident management, Awards and Recognitions
engagement. operations, ensuring that all business decisions align with
and training to mitigate emerging digital threats. The bank also UBL’s achievements are recognized globally and locally. environmental and social governance (ESG) objectives.
• UBL actively supported the Alkhidmat ‘Bano Qabil’ program, upholds a strong Risk Management Framework, incorporating
which offers 100% free, advanced IT courses packed with the policies for operational, market, and liquidity risks, alongside The bank won the Best New Islamic Product Launch at the UBL’s journey toward becoming a carbon-neutral financial
latest technologies to give the youth of Pakistan a head start Information & Cyber Security. Global Islamic Finance Awards for the Ameen Esaar Account, as institution by 2050 is part of its broader vision to align business
in launching their employment and freelancing careers. well as multiple accolades from Asian Banking & Finance, practices with global sustainability efforts. This transition will
To ensure robust oversight, UBL has established governance including Digital Transformation of the Year and Mobile Banking involve continuous evaluation of greenhouse gas (GHG)
• The Bank supported 56 students for the completion of their forums like the Compliance Committee of Management (CCM), & Payment Initiative of the Year. UBL’s commitment to Diversity, emissions, setting targets to reduce carbon footprints, and
six months’ vocational courses with the Hunar Foundation. Management Risk Committee (MRC), and Board Risk & Equity, and Inclusion (DEI) was celebrated with seven awards at promoting sustainable banking practices among clients.
Among these students, 51% were female, enrolled in Compliance Committee (BRCC). These bodies actively monitor the 2024 Global Diversity, Equity & Inclusion Benchmark Through its ambitious strategy, UBL is dedicated to shaping a
conventional, IT, and high-tech courses. ESG risks and compliance across the organization, guiding the (GDEIB) Awards. The bank has also received Tax Excellence sustainable future in the financial sector and contributing to
• UBL further supported the vocational training of 150 students bank’s strategies and ensuring regulatory compliance at both Awards for being one of Pakistan’s highest taxpayers and SAS broader environmental goals.
at the SOS Technical Training Institute, under the auspices of local and international levels. Gold Awards for innovation.
Alignment with UN Sustainable Development Goals (UN
the SOS Children’s Villages Pakistan. Furthermore, UBL integrates ESG risk assurance into internal Ambitions Toward 2024–2050: SDGS), Sustainability Accounting Standard Board, IFRS
• UBL and Saylani Welfare International Trust carried out a audits and compliance monitoring, aligned with Green S1&S2 & GRI Standards
Banking/ESG policies. Stress testing and scenario analysis are Carbon-Neutral Financial Institution
comprehensive Ramzan Drive, reaching out to people across
also conducted to evaluate ESG risks in various climate change At UBL, we are committed to advancing the United Nations
Pakistan with the collaboration of UBL staff and SWIT UBL is committed to achieving carbon neutrality by 2050 as part
environment. Sustainable Development Goals (SDGs) by embedding
volunteers. of its comprehensive ESG strategy. This transformation involves
sustainability into our core business strategy and operations.
evaluating the bank’s carbon footprint, including Scope 1, 2, and
UBL's Commitment to Sustainability and Compliance with This reflects our dedication to create a positive impact on both
Engaging the UBL Family in Causes and Awareness Drives 3 emissions, and setting reduction targets. UBL integrates ESG
Global Standards society and the environment, while driving long-term value
principles into its operations, aiming to assist clients in
Blood Donation Drive with Indus Hospital and Health BASEL Principles Compliance transitioning to more sustainable practices. The bank is also We adhere to global sustainability frameworks such as the
Network (IHHN) embedding ESG into its core processes, ensuring sustainable Sustainability Accounting Standards Board (SASB), IFRS S1 &
UBL acknowledges the significant risks posed by climate business practices are central to day-to-day operations. S2, and the Global Reporting Initiative (GRI) standards to ensure
UBL as part of its Sustainability agenda organized a blood change and integrates climate-related financial risks into its transparency, accountability, and alignment with international
donation drive in collaboration with Indus Hospital Blood Center business strategy and governance. By aligning with the Basel Gender Equality and Empowerment
best practices. By integrating these frameworks into our
at the UBL Head Office in Karachi. The aim of this initiative was Principles, UBL is committed to implementing sound processes UBL prioritizes gender equality and works towards achieving a strategy, UBL is not only contributing to sustainable
to help in meeting the growing need of blood donations and for assessing the potential impacts of climate-related risks balanced representation of women at all organizational levels. development, but also ensuring that our business practices
support the hospital’s efforts in providing critical health care to across various sectors. The bank's ESG Risk Management The bank focuses on improving the gender diversity ratio, benefit all stakeholders and support the global call to "leave no
those in need. The drive brought together employees from Framework ensures the identification, monitoring, and creating employment opportunities for women, and fostering a one behind."
across Karachi in order to do their part in giving back to the management of climate-related financial risks, incorporating
community and becoming ‘Symbols of Hope’ for those work environment free from prejudice. UBL supports
them into internal risk assessments, capital adequacy women-led initiatives, aiming to empower women and provide For more details of our ESG initiatives, visit our website
desperately in need for blood. evaluations, and liquidity management processes. UBL also equal opportunities for growth and leadership. www.ubldigital.com
integrates scenario analysis to assess business resilience to
Breast Cancer Awareness Campaign climate-related risks.
UBL joined the global fight against breast cancer in October. IFRS S1 & S2 Compliance
The Bank’s month-long communication and awareness
campaign highlighted the importance of early detection and UBL aligns with the International Financial Reporting Standards
prevention, providing valuable information to the Bank (IFRS) S1 & S2, focusing on sustainability and climate-related
employees and the public at large. By promoting awareness and financial disclosures. The bank has developed an ESG Risk
encouraging screenings, UBL strives to make a positive impact Management Framework to assess and manage ESG risks
on public health. effectively. It conducts detailed portfolio risk analysis,
incorporates ESG due diligence into credit risk management,
Financial Contributions to National Growth and tracks its carbon footprint. UBL’s financing initiatives, such
as supporting sustainable agricultural practices and enhancing
UBL has played a key role in Pakistan's economic development fiscal resilience through loans, demonstrate the bank’s
through strategic financial transactions, including a PKR 20 commitment to sustainability. Additionally, UBL engages in

44 United Bank Limited Annual Report 2024 45

MANAGEMENT
TEAM

Abdul Aleem Qureshi Shahid Mahmood Khan

1 Group Executive – Branch Banking
11 Group Executive, Special Assets Management

Nadia Tabassum Alee Khalid Ghaznavi

2 Group Executive, Corporate &
12 Group Executive, Islamic Banking
Investment Banking

Imran Sarwar
Syed Manzoor Hussain Zaidi
13 Group Executive, Risk & Credit Policy
20 19 18 17 16 15 14 13 12 11 10
3 Chief Financial Officer

Farrukh Karim Khan

14 Chief Strategy Officer
Munawar Raza Shah
4 Chief Operating Officer

Muhammad Rizwan Malik

Muhammad Jawaid Iqbal 15
5 President & CEO
Global Head, Treasury &
Capital Markets

Ijaz Farooq
6 Deputy CEO
16 Aslam Sadruddin
Chief Productivity & Rewards Officer

Aqeel Ahmed Nasir

7 Chief Legal Counsel & 17 Irfan Farooq Memon
Group Executive, Compliance
Company Secretary

Yasir Qadri
Hafsa Abbasy 18
8 Group Executive, Human Resources
Head, Institutional Banking

Sohail Aziz
19 Suleman Pervez
9 Chief Information Officer
Acting Head, Audit &
Risk Review

1 2 3 4 5 6 7 8 9
Sharjeel Shahid
10 Group Executive, Digital Banking
20 Ovais Saeed
Group Executive, UBL International

MANAGEMENT TEAM
46 United Bank Limited
 EXCELLENCE
IN SERVICE
DELIVERING
OUR VALUE TO EVERY
LEADERSHIP STAKEHOLDER
True excellence goes beyond efficiency—it’s about
building trust, fostering strong relationships, and
creating value for everyone we serve. At UBL, we are
committed to delivering seamless, secure, and
innovative banking experiences that benefit our
customers, employees, partners, and shareholders
alike. By continuously enhancing our digital
capabilities, service standards, and financial
solutions, we ensure that every stakeholder, whether
internal or external, finds reliability, growth, and
long-term success with us.

Annual Report 2024 49

GROWTH CASH FLOW STATEMENT - SUMMARY

AT A GLANCE Cash flow from operating activities 1,615,575 3,082,154 (110,598) 353,041 372,652 134,204
Cash flow from investing activities (1,495,446) (2,886,610) (14,685) (304,552) (355,068) (74,098)
Cash flow from financing activities (57,327) (62,438) (20,650) (26,272) (10,312) (14,629)
BALANCE SHEET Cash and cash equivalents at the beginning of the year 308,031 158,697 291,300 264,727 256,591 206,813
December 31 2024 2023 2022 2021 2020 2019 Effect of exchange rate changes on cash and cash (1,119) 16,229 13,330 4,356 865 4,300
equivalents
Cash and cash equivalents at the end of the year 369,714 308,031 158,697 291,300 264,727 256,591
Assets
Cash and balances with treasury and other banks 369,714 308,031 158,697 291,300 264,727 256,591
Lendings to financial institutions 18,492 34,448 85,296 51,701 19,959 20,183
December 31 2024 2023 2022 2021 2020 2019
Investments - gross 5,890,966 4,411,230 1,442,017 1,504,689 1,138,018 849,441
Advances - gross 1,565,127 717,068 1,013,767 728,286 609,307 702,951
Operating fixed assets 97,624 76,044 73,223 70,769 53,037 54,348
FINANCIAL RATIOS
Other assets 246,925 157,693 104,506 61,665 52,715 85,497
Return on equity (RoE) 35.8% 26.6% 18.0% 19.1% 13.9% 13.8%
Total assets - gross 8,188,849 5,704,513 2,877,507 2,708,409 2,137,763 1,969,011
Return on assets (RoA) 1.2% 1.3% 1.2% 1.4% 1.1% 1.0%
ECL-Stage 3/ Specific Provisions against non- (107,900) (92,332) (81,784) (74,704) (71,756) (63,616)
performing advances Profit before tax ratio 57.6% 61.4% 49.6% 54.8% 37.1% 41.0%
ECL- Stage 1 & 2/ General Provisions against (13,746) (11,170) (10,147) (7,393) (7,272) (3,501) Gross spread ratio 16.0% 27.4% 41.2% 48.5% 49.3% 40.2%
performing advances Return on capital employed (RoCE) 34.3% 25.3% 17.0% 18.0% 13.1% 12.9%
Provisions against diminution in value of investments (4,072) (26,014) (26,823) (8,146) (9,344) (9,118) Advances to deposits ratio (ADR) - gross 59.3% 30.5% 55.0% 41.6% 37.1% 47.9%
Total assets - net of provisions 7,941,487 5,471,495 2,666,823 2,536,069 1,970,364 1,825,658 Advances to deposits ratio (ADR) - net 54.7% 26.1% 50.1% 36.9% 32.3% 43.3%
Income to expense ratio 2.67 2.64 2.57 2.17 2.26 2.04
Liabilities & Equity Cost to revenue ratio 36.3% 36.5% 38.0% 44.9% 43.5% 48.2%
Deposits & other accounts 2,640,211 2,350,541 1,841,819 1,750,944 1,640,212 1,467,063 Growth in gross income 48.2% 27.9% 44.7% 3.4% 10.3% 2.7%
Borrowings from financial institutions 4,855,374 2,815,471 564,519 563,285 128,987 154,484 Growth in net profit after tax 51.4% 65.9% 3.8% 47.8% 9.2% 25.7%
Subordinated loans 10,000 10,000 10,000 10,000 10,000 10,000 Total assets to shareholders’ funds 25.1 21.7 12.8 12.4 10.7 10.8
Bills payable 44,222 21,652 33,022 26,793 29,734 22,927 Intermediation cost ratio 3.9% 3.2% 3.0% 2.6% 2.6% 2.9%
Other liabilities 197,103 124,834 100,373 62,502 56,386 69,232 Asset quality (NPL ratio) 7.4% 14.7% 9.2% 11.8% 13.7% 11.0%
Total liabilities 7,746,910 5,322,497 2,549,733 2,413,523 1,865,319 1,723,706 Net infection ratio 0.6% 2.2% 1.3% 1.8% 2.2% 2.1%
Net assets 194,577 148,998 117,090 122,545 105,045 101,952 Weighted average cost of debt 15.2% 11.4% 7.3% 4.8% 5.3% 6.5%
Share capital 12,242 12,242 12,242 12,242 12,242 12,242 Capital adequacy ratio (CAR) 20.3% 16.6% 19.2% 21.5% 24.4% 18.9%
Reserves 114,735 107,801 86,254 69,718 62,274 59,320
Unappropriated profit 111,956 90,492 91,438 84,626 81,916 71,670 SHARE INFORMATION
Equity - Tier I 238,932 210,535 189,934 166,586 156,432 143,232
Surplus on revaluation of assets - net of deferred tax 77,290 41,965 19,086 38,056 27,641 25,837 Cash dividend per share - Rs. 44.00 44.00 22.00 18.00 12.00 12.00
Total equity 316,222 252,501 209,020 204,643 184,073 169,069 Dividend yield (based on cash dividend) 24.7% 43.7% 16.1% 14.3% 7.3% 9.8%
Total liabilities & equity 8,063,132 5,574,998 2,758,753 2,618,166 2,049,392 1,892,775 Dividend payout ratio (total payout) 66.9% 101.3% 84.0% 71.4% 70.3% 76.8%
Earning per share (EPS) - Rs. 65.78 43.44 26.19 25.23 17.07 15.63
PROFITABILITY Price earnings ratio 5.81 4.09 3.85 5.41 7.37 10.52
Market value per share - at the end of the year - Rs. 382.23 177.84 100.75 136.58 125.86 164.5
Markup / return / interest earned 1,084,583 521,374 250,679 147,974 152,003 153,676 Market value per share - highest during the year - Rs. 384.00 191.99 150.90 143.89 181.96 173.53
Markup / return / interest expensed (911,168) (378,490) (147,469) (76,216) (77,044) (91,902) Market value per share - lowest during the year - Rs. 174.69 91.50 96.51 114.28 89.44 119.67
Net markup / return / interest income 173,415 142,884 103,209 71,759 74,959 61,774 Breakup value per share - without surplus on 195.18 171.98 155.15 136.08 127.79 117.00
Fee, commission, brokerage and exchange income 31,132 30,025 24,286 17,056 14,782 18,219 revaluation of assets - Rs.
Capital gains & dividend income 47,283 2,081 2,560 5,791 1,681 1,541 Breakup value per share - with surplus on revaluation of 258.31 206.26 170.74 167.17 150.36 138.11
assets - Rs.
Other income 9,079 1,103 7,597 532 631 1,916
Total non interest income 87,494 33,210 34,443 23,379 17,094 21,676
Gross income 260,909 176,094 137,652 95,138 92,054 83,451 OTHER INFORMATION
Administrative expenses and other charges (97,761) (66,614) (53,461) (43,832) (40,751) (40,860)
Profit before donations and provisions 163,148 109,479 84,190 51,306 51,303 42,590 Non-performing advances (NPLs) - Rs in million 115,992 105,541 93,339 86,013 83,624 76,986
Donations (205) (63) (211) (134) (342) (129) Import business - Rs in million 1,848,387 1,512,269 1,231,532 1,010,288 544,634 824,858
Provisions (12,752) (1,298) (15,669) 955 (16,768) (8,220) Export business - Rs in million 268,982 189,947 503,624 208,187 139,010 177,279
Profit before taxation 150,192 108,118 68,310 52,127 34,192 34,242 Number of employees 19,774 14,973 13,722 13,233 13,012 13,248
Taxation (69,664) (54,938) (36,247) (21,245) (13,294) (15,108) Number of branches - Domestic 1,474 1,356 1,335 1,341 1,356 1,362
Profit after taxation 80,528 53,180 32,063 30,882 20,899 19,134 Number of branches - International 8 8 8 8 14 14
Number of branches - Total 1,482 1,364 1,343 1,349 1,370 1,376

50 United Bank Limited Annual Report 2024 51

GROWTH Profit and Loss Account

AT A GLANCE
December 31 2024 2023 2022 2021 2020 2019

Vertical Analysis

BALANCE SHEET Interest / Return / Non Interest Income Earned

Markup / return / interest earned 92.5% 94.0% 87.9% 86.4% 89.9% 87.6%
December 31 2024 2023 2022 2021 2020 2019
Fee, commission, brokerage and exchange income 2.7% 5.4% 8.5% 10.0% 8.7% 10.4%
Capital gains & dividend income 4.0% 0.4% 0.9% 3.4% 1.0% 0.9%
Vertical Analysis Other income 0.8% 0.2% 2.7% 0.3% 0.4% 1.1%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Assets
Cash and balances with treasury and other banks 4.7% 5.6% 6.0% 11.5% 13.4% 14.1%
Interest / Return / Non Interest Expense
Lendings to financial institutions 0.2% 0.6% 3.2% 2.0% 1.0% 1.1%
Markup / return / interest expensed 77.7% 68.2% 51.7% 44.5% 45.6% 52.4%
Investments - net 74.1% 80.1% 53.1% 59.0% 57.3% 46.0%
Operating expenses 8.4% 12.0% 18.8% 25.7% 24.3% 23.4%
Advances - net 18.2% 11.2% 34.6% 25.5% 26.9% 34.8%
Provisions 1.1% 0.2% 5.5% -0.6% 9.9% 4.7%
Operating fixed assets 1.2% 1.4% 2.7% 2.8% 2.7% 3.0%
Taxation 5.9% 9.9% 12.7% 12.4% 7.9% 8.6%
Other assets 3.1% 2.9% 3.9% 2.4% 2.7% 4.7%
Total expense - percentage of total income 93.1% 90.4% 88.8% 82.0% 87.6% 89.1%
Total assets 101.5% 101.9% 103.4% 103.2% 104.0% 103.7%

Profit after taxation 6.9% 9.6% 11.2% 18.0% 12.4% 10.9%

Liabilities & Equity
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Deposits & other accounts 33.2% 43.0% 69.1% 69.0% 83.2% 80.4%
Borrowings from financial institutions 61.1% 51.5% 21.2% 22.2% 6.5% 8.5%
Subordinated loans 0.1% 0.2% 0.4% 0.4% 0.5% 0.5%
Horizontal Analysis
Bills payable 0.6% 0.4% 1.2% 1.1% 1.5% 1.3%
Interest / Return / Non Interest Income Earned
Other liabilities 2.5% 2.3% 3.8% 2.5% 2.9% 3.8%
Markup / return / interest earned 705.8% 339.3% 163.1% 96.3% 98.9% 100.0%
Total liabilities 97.5% 97.3% 95.6% 95.2% 94.7% 94.4%
Fee, commission, brokerage and exchange income 170.9% 164.8% 133.3% 93.6% 81.1% 100.0%
Share capital 0.2% 0.2% 0.5% 0.5% 0.6% 0.7%
Capital gains & dividend income 3069.2% 135.1% 166.2% 375.9% 109.1% 100.0%
Reserves 1.4% 2.0% 3.2% 2.7% 3.2% 3.2%
Other income 473.8% 57.6% 396.4% 27.8% 32.9% 100.0%
Unappropriated profit 1.4% 1.7% 3.4% 3.3% 4.2% 3.9%
Total 668.4% 316.3% 162.6% 97.7% 96.4% 100.0%
Equity - Tier I 3.0% 3.8% 7.1% 6.6% 7.9% 7.8%
Surplus on revaluation of assets - net of deferred tax 1.0% 0.8% 0.7% 1.5% 1.4% 1.4%
Interest / Return / Non Interest Expense
Total equity 4.0% 4.6% 7.8% 8.1% 9.3% 9.3%
Markup / return / interest expensed 991.5% 411.8% 160.5% 82.9% 83.8% 100.0%
Operating expenses 239.0% 162.7% 130.9% 107.3% 100.3% 100.0%
Horizontal Analysis
Provisions 155.1% 15.8% 190.6% -11.6% 204.0% 100.0%
Taxation 461.1% 363.6% 239.9% 140.6% 88.0% 100.0%
Assets
Total 698.7% 321.0% 162.0% 89.9% 94.9% 100.0%
Cash and balances with treasury and other banks 144.1% 120.0% 61.8% 113.5% 103.2% 100.0%
Lendings to financial institutions 91.6% 170.7% 422.6% 256.2% 98.9% 100.0%
Profit after taxation 420.9% 277.9% 167.6% 161.4% 109.2% 100.0%
Investments - net 700.6% 521.8% 168.4% 178.1% 134.3% 100.0%
Advances - net 227.0% 96.5% 145.0% 101.6% 83.4% 100.0%
Operating fixed assets 179.6% 139.9% 134.7% 130.2% 97.6% 100.0%
Other assets 288.8% 184.4% 122.2% 72.1% 61.7% 100.0%
Total assets 435.0% 299.7% 146.1% 138.9% 107.9% 100.0%

Liabilities & Equity

Deposits & other accounts 180.0% 160.2% 125.5% 119.4% 111.8% 100.0%
Borrowings from financial institutions 3143.0% 1822.5% 365.4% 364.6% 83.5% 100.0%
Subordinated loans 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Bills payable 192.9% 94.4% 144.0% 116.9% 129.7% 100.0%
Other liabilities 284.7% 180.3% 145.0% 90.3% 81.4% 100.0%
Total liabilities 449.4% 308.8% 147.9% 140.0% 108.2% 100.0%
Share capital 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Reserves 193.4% 181.7% 145.4% 117.5% 105.0% 100.0%
Unappropriated profit 156.2% 126.3% 127.6% 118.1% 114.3% 100.0%
Equity - Tier I 166.8% 147.0% 132.6% 116.3% 109.2% 100.0%
Surplus on revaluation of assets - net of deferred tax 299.1% 162.4% 73.9% 147.3% 107.0% 100.0%
Total equity 187.0% 149.3% 123.6% 121.0% 108.9% 100.0%

52 United Bank Limited Annual Report 2024 53

GROWTH GROWTH
AT A GLANCE AT A GLANCE
Statement of Value Added Weighted average cost of funds

2024 2023 Share capital 12,242 12,242

Rs in million % Rs in million % Deposits 2,640,211 2,350,541
Borrowing from financial institutions 4,855,374 2,815,471
Mark-up / return / interest earned - net of provisions 1,071,831 97.5% 520,076 101.8% Subdebt 10,000 10,000
Fee, commission, brokerage and exchange income 31,132 2.8% 30,025 5.9% 7,517,827 5,188,253
Capital gains & dividend income 47,283 4.3% 2,081 0.4% Average 6,353,040 3,808,416
Other income 9,079 0.8% 1,103 0.2%
1,159,325 105.5% 553,285 108.4% Dividend 53,864 53,864
Interest paid includes subdebt cost 911,168 378,490
Administrative expenses 59,992 5.5% 42,653 8.4% 965,032 432,354

Value added 1,099,333 100.0% 510,632 100.0% WACC 15.2% 11.4%

Distributed as follows:

To employees Number of shares - full 1,224,179,687 1,224,179,687

as remuneration 37,769 3.4% 23,961 4.7%
Number of shares - full 1,224,179,687 1,224,179,687
To government
as income tax 69,664 6.3% 54,938 10.8%

To depositors
as profit on investments 202,416 18.4% 171,099 33.5%

To institutions & individuals

as profit on borrowings 708,751 64.5% 207,391 40.6%

To society
as donations 205 0.0% 63 0.0%
.
To shareholders
as dividends / bonus 53,864 4.9% 51,416 10.1%

Retained in business
as reserves and retained profits 26,664 2.4% 1,764 0.3%

1,099,333 100% 510,632 100%

54 United Bank Limited Annual Report 2024 55

UBL INTERNATIONAL COMPLAINT MANAGEMENT
NETWORK AT UBL
INTERNATIONAL BRANCHES The Bank works closely with stakeholders to swiftly address and
resolve customer grievance. The Complaint Management Unit
UAE Bahrain within the Service Quality Group handles and responds to
Deira Branch Manama Branch complaints received via various channels, including
Mohd. & Obaid Al Mullah Building, Building 117, Road 385, Block 304, [email protected]. In 2024, the Bank received a
Murshid Bazar, Al Kabeer Street - Dubai, Government Avenue, Manama, total of 179,726 complaints and successfully resolved the
P.O. Box: 1000, Dubai - UAE. P.O. Box: 546, Kingdom of Bahrain. complaints with an average turnaround time (TAT) of 6 working
days.
Tel: 00971-4-6085350 & 00971-4-6085351 Tel: 00973-17503506 & 00973-17503562
Swift Code: UNILAEAD Swift Code: UNILBHBM
Branch Code: 0906 Branch Code: 0905

Bur Dubai Branch Qatar

Manazil Al Rafaa Building 03, Corniche Branch
Unit No. 20712-G02, Ground floor Sh. Jassim Bin Jaber Al-Thani Building,
Khalid Bin Al Waleed Street, Abdullah Bin Jassim Street, Building No.1,
P.O. Box: 1367, Dubai - UAE. Zone 7, Street 810
Tel: 00971-4-6085200 & 00971-4-6085201
Swift Code: UNILAEAD
Branch Code: 0907
P.O. Box: 242, Doha - Qatar.
Tel: 00974-44254466
Email: [email protected]
GENDER PAY GAP STATEMENT UNDER
Gold & Diamond Park Branch
Swift Code: UNILQAQAxxx
Branch Code: 0908
SECP CIRCULAR NO. 10 OF 2024
Gold & Diamond Park,
Unit No. R-52, Representative Office
Sheikh Zayed Road, Al Qouz Industrial Area, China
P.O. Box: 3846, Dubai – UAE. Servcorp, Suite No.29, Level 26, Fortune Financial Center Following is gender pay gap calculated for the year ended December 31, 2024.
Tel: 00971-4-6085300 & 00971-4-6085301 No.5 Dong San Huang Zhong Rd, Chaoyang District
Swift Code: UNILAEAD Beijing – China - PO Box: 100020 (i) Mean Gender Pay Gap: -5%
Branch Code: 0919 Tel: 0086 - 010 - 57750521
Fax: 0086 - 010 - 57750350 (ii) Median Gender Pay Gap: -1%
Sharjah Branch
Al Majaz Building, King Faisal Street, OBU-EPZ
P.O. Box: 660, Sharjah - UAE. EPZ Branch Karachi
Tel: 00971-6-5979121 & 00971-6-5979122 Export Processing Zone, Landhi Industrial Area,
Swift Code: UNILAEAD Mehran Highway, Landhi, Karachi.
Branch Code: 0910 Tel: 0092-21-35082301-3

Muroor Branch EPZ Branch, Sambrial (Sialkot)

Aylan Abdullah al Muhairi Building, Plot No.: 261-A, Export Processing Zone,
Muroor Road, Wazirabad Road, Sambrial,
P.O. Box: 3052, Abu Dhabi - UAE. District Sialkot.
Tel: 00971-2-5996525 Tel: 0092-52-6523388 (Signed by CEO/Director on behalf of
Swift Code: UNILAEAD Board of Directors of the Company)
Branch Code: 1207

Musaffah Branch
Rashid Mohd. Abdullah Al Mazroui Building,
Block M14, Street 17, Musaffah Industrial Road,
P.O. Box: 237, Abu Dhabi - UAE.
Tel: 00971-2-5996400 & 00971-2-5996401
Swift Code: UNILAEAD
Branch Code: 0901

56 United Bank Limited Annual Report 2024 57

SHARIAH BOARD’S REPORT FOR THE On Consumer Side:
Following Consumer products were renewed during the year;
Training and Development:
The growing network of UBL Ameen branches and Islamic
Banking Windows require that all the staff must be appropriately

FINANCIAL YEAR 2024 “UBL Ameen Address, Existing product program manual for
UBL Ameen Address (Housing Finance product) was renewed
and approved by Shariah Board. These products are Shariah
trained for Islamic banking products and services. In this
regard, Shariah Board appreciate management efforts to
collaborate with National Institute of Banking & Finance
In the name of Allah, The Most Beneficent, The Most Merciful approvals given by Shariah Board through circulation. Later on, compliant solution for housing finance based on the concept of Pakistan (NIBAFP), a subsidiary of State Bank of Pakistan, to
Resident Shariah Board Member and Shariah Board rulings Diminishing Musharakah, which facilitates the customers for offer Islamic Banking Certification courses (IBCC) to Islamic
Alhamdulillah, by the grace of Almighty Allah, UBL Ameen Pakistan were ratified by Shariah Board in the subsequent Shariah Board purchase of a house/apartment, renovation, construction & Branch Banking Staff countrywide.
has completed another successful year of Islamic Banking meetings. balance transfer facility.
operations. During the year 2024, UBL Ameen witnessed a UBL Ameen also arranged Islamic Banking training sessions for
remarkable growth in terms of conversion, market penetration & The Head of Shariah Compliance Department submitted report “UBL Ameen Drive”, Existing product program manual of UBL UBL and UBL Ameen staff during the year. These training
business profitability. to the Shariah Board on quarterly basis, on the overall Shariah Ameen Drive (Auto Finance product) was renewed and session were conducted through various Class Room and
Compliance environment of UBL Ameen and on the ownership approved by Shariah Board. Online session. Trainings were conducted by, Shariah Board
In accordance with the SBP direction for the conversion of and commitment of BoD and Executive Management in building Members, Shariah Compliance Department and other UBL
Conventional banks into Islamic banks, Shariah Board appreciates the necessary infrastructure for Shariah Compliance together Ameen executives.
management for the successful conversion of the Conventional with identifying key areas of improvement. On Staff Financing Side:
banking branches of KPK and Baluchistan cluster into Islamic Following Staff Financing products were launched during the Operations & Control Department:
Banking branches. year; UBL Ameen Operations & Control Department worked for all
UBL Ameen Branch Network: Islamic products and services and reasonably assured compli-
Scope: Year 2024, is a phenomenal year for UBL Ameen where “Staff Motorcycle Financing”, Staff Motorcycle Financing is ance with the relevant Shariah guidelines when and where
The Board of Directors and Executive Management are solely management has successfully converted all the conventional offered through Shariah compliant mode of Diminishing required throughout the year.
responsible to ensure that the operations of the bank are banking branches of KPK and Baluchistan cluster into Islamic Musharakah. This product is designed to facilitate branches
conducted in accordance with the Shariah principles at all times. Banking branches, in addition to opening new Islamic Banking sales team. Internal Shariah Audit Unit (ISAU):
The scope of this report is to cover affairs of the UBL Ameen’s branches under ABEP 2024. In compliance with the Shariah Governance Framework issued
Islamic Banking operations in Pakistan from Shariah On Asset Side: by State Bank of Pakistan and Shariah guidelines prescribed by
perspective, as described under Shariah Governance UBL Ameen is offering Shariah Compliant Banking services UBL Ameen Tijarah: The product program manual of UBL Shariah Board, dedicated Internal Shariah Audit Unit (ISAU) is in
Framework issued by the State Bank of Pakistan. through 496 Islamic Banking Branches (IBBs) and through 558 Ameen Tijarah product has been approved by Shariah Board. place, ISAU constitutes of Head Internal Shariah Audit and one
Islamic Banking Windows (IBWs). The product is designed to facilitates UBL Ameen customers in Shariah scholar. Internal Shariah Audit Unit is playing significant
Shariah Board hereby submits its report on the overall Shariah financing of finished goods under Shariah compliant mode of role towards achieving common goal to ensure seamless
compliance environment of UBL Ameen and major Products & Services: Musawamah & Wakalah. The Islamic proposition will strengthen Shariah compliance in its Products, Services and overall
developments that took place during the year 2024. the bank’s wider aim and commitment to contribute towards ambiance of UBL Ameen with regards to instructions and guide-
On Liability Side: Islamic Finance along with catering the other financing needs of lines issued by the Shariah Board. In this regard, ISAU
Following Liability products were launched during the year; Corporate and SME segment. performed Shariah audit of Islamic Banking Branches, Islamic
Shariah Board Meetings and Reviews: Banking Windows, Corporate & SME financing, profit & loss
IIn line with Shariah Governance Framework of State Bank of “UBL Ameen Signature Priority Banking Account:”, Corporate Banking: distribution and Head Office functions. ISAU discussed all
Pakistan, Shariah Board shall meet at least on quarterly basis. In UBL Ameen Signature Priority Banking Accounts based on Qard During the year, approximately 250 corporate banking findings with Shariah Board and management for determination
this regard thirty-Nine (39) Shariah Board meetings were held till (current) and Mudarabah (saving) are introduced to cater the transactions were executed. For review of Corporate & SME of appropriate corrective actions and their enforcements.
year 2024, out of which four (4) meetings were conducted in financial needs of high valued customers. UBL Ameen signature transactions, Shariah compliance process is categorized in two
2024. Minutes of the meetings were subsequently submitted to Priority banking consists of current and saving account (PKR & major stages: Charity Collections & Disbursements:
Islamic Banking Department of State Bank of Pakistan. In FCY). In accordance with Shariah Board approved Charity policy,
addition, various Shariah Board meetings were held to discuss 1. Pre Disbursement Stage in which process flows and charity of PKR 12.46 Million was collected in 2024. These
the matters related to Conversion, Product Development, “UBL Ameen Smart Account”, UBL Ameen Smart Account, is structures of the transactions are discussed and finalized in charities were collected on account of late payments by the
Shariah Compliance and Shariah Audit activities. a Shariah compliant digital banking account where the account accordance with Shariah guidelines already provided by the customers against financing facilities. The charity amount
is opened through UBL Digital App. Thus, this account facilitates Shariah Board. These process flows are duly reviewed and collected was placed in separately maintained remunerative
Shariah Compliance Department: digital onboarding without visiting UBL Ameen branch / Islamic approved by Resident Shariah Board Member (RSBM) / account and utilized in accordance with the approved charity
UBL Ameen Shariah Compliance Department (SCD) worked Banking Window. Shariah Board and are ratified in the subsequent Shariah policy and was disbursed to reputable charitable organizations.
under the supervision and guidance of Shariah Board. Shariah Board meetings.
Compliance Department (SCD) is responsible to ensure “Exporter’s Special Foreign Currency Retention Account Details of Charity funds amount for the year 2024 is as under,
seamless Shariah compliance in all departments / units of UBL (ESFCA)”, is introduced as per the SBP’s framework for 2. Post Disbursement Stage in which financing transactions
S. No Particulars Amount (PKR)
Ameen, by facilitating them in implementation of products, facilitating Freelancers, IT companies and exporters for are reviewed on sample basis by Shariah Compliance
1 Opening Balance as of 1st-January 2024 21.40 Million
procedures, policies, etc. and also responsible to ensure that all retention of FCY remittances under the Foreign Exchange Department, in accordance with Shariah guidelines already
2 Charity received during the Year - 2024 12.46 Million
Islamic Banking staff and their counterparts are trained for Manual. The ESFC account is non checking and allows provided by the Shariah Board. In addition, first transaction of
3 Profit on Charity 4.88 Million
Islamic banking products and services. SCD also acts as a conversion of available FCY funds into Pak Rupees only in New to Bank customers is reviewed by Shariah Compliance
4 Charity Disbursed during the Year - 2024 21.50 Million
conduit between management and the Shariah Board. The SCD customer’s account. Department post execution of the transaction.
5 Ending Balance as of 31-Dec-2024 17.24 Million
team consists of the Head Shariah Compliance along with two
supporting staff members, including one qualified Shariah State Life Endowment Plan: UBL Ameen in partnership with UBL Ameen Treasury:
Scholar. State Life Insurance Corporation of Pakistan - Window Takaful UBL Ameen maintains its own Treasury Department. During the Shariah Opinion:
Operations has launched State Life Endowment Plan, a family year, over 350 transactions were executed through UBL Ameen To form our opinion as expressed in this report, as we have
During the year 2024, SCD conducted an internal Shariah control takaful endowment plan for individuals who seek protection, treasury modes such as Musharakah, Mudaraba, Wakalah. reviewed submitted reports from Internal Shariah Audit, Shariah
review of full-fledged Islamic Banking Branches (IBBs) and savings and investment under Shariah compliant principles. Furthermore, few transactions were executed with the Govern- Compliance Department, External Shariah auditor (for last year)
Islamic Banking Windows (IBWs) on a sample basis. Shariah ment of Pakistan under GOP Ijarah Sukuk. and management representation. Based on above, and to the
compliance reports were shared with the concerned field Debit Cards: best of our knowledge, we are of the view that:
management for necessary rectifications and further UBL Ameen has introduced various variants of debit cards for Profit & Loss Distribution and Pool Management:
improvement in Shariah Compliance of branches and Islamic UBL Ameen accountholders. These variants include Internal Shariah Audit Unit (ISAU) conducted post disbursement i. UBL Ameen has overall complied with Shariah rules and
Banking Windows, in accordance with Shariah Board approved Pool Audit on quarterly basis in line with the Shariah Gover- principles in the light of Fatawa, rulings and guidelines issued
guidelines. • Ameen Urooj VISA Debit Card for Ameen Urooj nance Framework (SGF) 2018 along with announced Profit by the Shariah Board.
accountholders, Sharing Ratio (PSR) & weightages, and presented its reports to
Furthermore, Shariah Compliance Department submitted its • Ameen VISA Infinite Debit Card for Ameen Signature Shariah Board for review and opinion where required. ii. UBL Ameen has overall complied with directives, regulations,
consolidated quarterly reports to Shariah Board for ratification. accountholders instructions and guidelines related to Shariah compliance
Reports consisted details of all Shariah reviews and clarification issued by SBP in accordance with the rulings of SBP’s
• Ameen FCY VISA Debit Card for ESFC accountholders.
given by Resident Shariah Board Member and opinions / Shariah Advisory Committee.

58 United Bank Limited Annual Report 2024 59

iii. UBL Ameen has a mechanism in place to ensure required Conclusion:
Shariah compliance in their overall operations. Shariah Board of UBL Ameen is satisfied with the overall
performance and operations of UBL Ameen Pakistan, Islamic
iv. UBL Ameen has a system in place to ensure that any earnings Banking Division of United Bank Limited. And, pray for the
realized from sources or by means prohibited by Shariah have sustainability of this momentum of Conversion, Shariah
been credited to charity account and are being properly Compliance, market penetration and profitability, and thus play
utilized. pivotal role in sound and manifold growth of Islamic Banking
countrywide.
v. UBL Ameen has overall complied with the SBP instructions on
profit and loss distribution and pool management. Almighty Knows Best:

vi. The level of awareness, capacity & sensitization of the staff,

management and the BOD in appreciating the importance of
Shariah compliance in the products and processes of the
bank is acceptable.
Dr. Mufti Muhammad Awais Naeem
vii. Shariah Board has been reasonably provided resources Resident Shariah Board Member
enabling it to discharge its duties.

Recommendations:
Shariah Board appreciate Management decision to increase
Islamic Banking footprint through opening of Islamic Banking
branches and through conversion of Conventional branches into
Islamic Banking branches and CBG loans into Shariah Mufti Muhammad Sadiq
compliant modes of financings which is a very good step for the Shariah Board Member
growth and success of Islamic Banking in Pakistan, For further
enhancement, Shariah Board recommends the following,

I. Capacity Building measures regarding Islamic Banking

products and services be further improved at all tiers / levels
covering all the steps discussed / required by the State Bank
of Pakistan from time to time and reasonable arrangements be Mufti Muhammad Ibrahim Essa
provided to cater the necessities / requirements in this regard. Chairman Shariah Board

II. It is recommended to enhance the overall Shariah compliance

environment, timely implementation of Shariah Date of Report: 6th February 2025
guidelines/corrective actions in Islamic Banking Branches
and support functions through hiring of qualified business
officials (especially in Shariah Compliance Department (SCD)
& other controlling units, capacity building and Shariah
assessment/controls with zero tolerance in accordance with 6
the Shariah Governance framework issued by the State Bank
of Pakistan as already discussed with management from time
to time.

III. It is appreciated that the deployment of funds into Shariah

compliant avenues be considered while the conversion
/expansion exercise as the funds may be considerably
increased viz-a-viz increase in deposit to avoid/manage any
Shariah related issues /risks

IV. It is recommended to ensure that all the Product Manuals and

related agreements are aligned with AAOIFI Shariah
standards duly adopted by the State Bank of Pakistan time to
time and are timely approved by the Shariah Board to comply
with Shariah Governance Framework of State Bank of
Pakistan.

V. With respect to automated pool management system &

monthly verification for profit and loss calculations /
disbursements, it is recommended to ensure compliance to
regulatory & Shariah guidelines at all levels considering the
revised mechanisms / guidelines circulated by the State Bank
of Pakistan.

60 United Bank Limited Annual Report 2024 61

62 United Bank Limited Annual Report 2024 63
 STATEMENT OF COMPLIANCE
WITH LISTED COMPANIES (CODE OF
INDEPENDENT AUDITOR’S REPORT CORPORATE GOVERNANCE)
TO THE MEMBERS OF REGULATIONS, 2019
UNITED BANK LIMITED The Bank has complied with the requirements of the Regulations
in the following manner: 11. Chief Financial Officer and Chief Executive Officer duly endorsed
the financial statements before approval of the Board;
Review Report on the Statement of Compliance contained in Listed
1. The total number of directors are 9 as per the following:
Companies (Code of Corporate Governance) Regulations, 2019 a) Male: 8 12. The Board has formed committees comprising of members
b) Female: 1 given below, -
We have reviewed the enclosed Statement of Compliance with the
Listed Companies (Code of Corporate Governance) Regulations,
2. The composition of the Board is as follows: a. BOARD AUDIT COMMITTEE (BAC):
2019 (the Regulations) prepared by the Board of Directors of
United Bank Limited (the Bank) for the year ended 31 December Category Names Ms. Shazia Syed Chairperson
2024 in accordance with the requirements of regulation 36 of the The Honorable Haider Zameer Choudrey Member
Independent Ms. Shazia Syed
Regulations.
Directors Mr. Tariq Rashid Mr. Rizwan Pervez Member
The responsibility for compliance with the Regulations is that of Mr. Daniel M. Howlett Mr. Tariq Rashid Member
the Board of Directors of the Bank. Our responsibility is to review Sir Mohammed Anwar Pervez, OBE, HPk
whether the Statement of Compliance reflects the status of the Non-Executive Lord Zameer M. Choudrey, CBE, SI Pk b. BOARD HUMAN RESOURCE & COMPENSATION
Bank's compliance with the provisions of the Regulations and Directors Mr. Rizwan Pervez COMMITTEE (HRCC):
report if it does not and to highlight any noncompliance with the Mr. Haider Zameer Choudrey
Mr. Tariq Rashid Chairman
requirements of the Regulations. A review is limited primarily to Mr. Muhammad Irfan A. Sheikh
inquiries of the Bank's personnel and review of various Sir Mohammed Anwar Pervez, OBE, HPk Member
Executive Director Mr. Muhammad Jawaid Iqbal, President & CEO
documents prepared by the Bank to comply with the Regulations. Lord Zameer M. Choudrey, CBE, SI Pk Member
Female Director Ms Shazia Syed Ms. Shazia Syed Member
As a part of our audit of the financial statements we are required
3. The directors have confirmed that none of them is serving as
to obtain an understanding of the accounting and internal control c. BOARD RISK & COMPLIANCE COMMITTEE (BRCC):
a director on more than seven listed companies, including this
systems sufficient to plan the audit and develop an effective audit Mr. Daniel M. Howlett Chairman
Bank;
approach. We are not required to consider whether the Board of
Lord Zameer M. Choudrey, CBE, SI Pk Member
Directors' statement on internal control covers all risks and
4. The Bank has prepared a code of conduct and has ensured Mr. Muhammad Irfan A. Sheikh Member
controls or to form an opinion on the effectiveness of such internal
that appropriate steps have been taken to disseminate it Mr. Muhammad Jawaid Iqbal Member
controls, the Bank's corporate governance procedures and risks.
throughout the Bank along with its supporting policies and
procedures; d. BOARD IT COMMITTEE (BITC):
The Regulations require the Bank to place before the Audit
Committee, and upon recommendation of the Audit Committee, The Honorable Haider Zameer Choudrey Chairman
5. The Board has developed a vision/mission statement, overall
place before the Board of Directors for their review and approval, Mr. Rizwan Pervez Member
corporate strategy and significant policies of the Bank. The
its related party transactions. We are only required and have Mr. Daniel M. Howlett Member
Board has ensured that complete record of particulars of the
ensured compliance of this requirement to the extent of the Mr. Muhammad Irfan A. Sheikh Member
significant policies along with their date of approval or
approval of the related party transactions by the Board of
updating is maintained by the Bank; Mr. Muhammad Jawaid Iqbal Member
Directors upon recommendation of the Audit Committee.
6. All the powers of the Board have been duly exercised and e. BOARD NOMINATION COMMITTEE (BNC):
Based on our review, nothing has come to our attention which
decisions on relevant matters have been taken by the Board/ Sir Mohammed Anwar Pervez, OBE, HPk Chairman
causes us to believe that the Statement of Compliance does not
shareholders as empowered by the relevant provisions of the Lord Zameer M. Choudrey, CBE, SI Pk Member
appropriately reflect the Bank's compliance, in all material
Act and these Regulations; The Honorable Haider Zameer Choudrey Member
respects, with the requirements contained in the Regulations as
applicable to the Bank for the year ended 31 December
7. The meetings of the Board were presided over by the
2024. f. BOARD INTERNATIONAL COMMITTEE (BIC):
Chairman. The Board has complied with the requirements of
the Act and the Regulations with respect to frequency, Lord Zameer M. Choudrey, CBE, SI Pk Chairman
recording and circulating minutes of meeting of the Board; Sir Mohammed Anwar Pervez, OBE, HPk Member
8. The Board have a formal policy and transparent procedures The Honorable Haider Zameer Choudrey Member
for remuneration of directors in accordance with the Act and
Rizwan Pervez Member
these Regulations;
Mr. Tariq Rashid Member
9. All the directors have either attended the required training or Shazia Syed Member
have been exempted, except for one director for whom the Daniel Michael Howlett Member
Chartered Accountants
Bank is in the process of organizing the training under Mr. Muhammad Irfan Anwar Sheikh Member
Karachi
Directors' Training Program. Muhammad Jawaid Iqbal Member
Dated: --------------,
10. The Board has approved appointment of Chief Financial
13. The Terms of Reference (TORs) of the aforesaid committees
Officer, Company Secretary and Head of Internal Audit,
have been formed, documented and advised to the committee
including their remuneration and terms and conditions of
for compliance;
employment and complied with relevant requirements of the
Regulations;

64 United Bank Limited Annual Report 2024 65

14. The frequency of meetings (quarterly/half yearly/ yearly) of the
committee were as per following:

a. Board Audit Committee (BAC) Four quarterly meetings.

ANNUAL STATEMENT ON INTERNAL CONTROLS
b. Board Human Resource &
Compensation Committee
Four quarterly meetings. - For the year ended 31 December 2024
Internal controls system is effected by the Board of Directors (BOD) Audit & Risk Review Group works in accordance with the Internal
c. Board Risk & Compliance Four quarterly meetings. and the Bank’s management. Management is responsible to Audit Standards and maintains the highest level of independence
Committee establish and maintain an adequate and effective system of internal and objectivity within the Bank. It provides accountability by
d. Board IT Committee Four quarterly meetings. controls and procedures, under the policies approved by BOD. performing audit and other assurance activities related to
Management plans, organizes, and directs the performance of governance, enterprise level risk management, and internal controls
e. Board Nomination Committee One meeting. internal control systems to manage risk and increase the likelihood to evaluate implementation of controls and ensure the existence of a
that business objectives & goals are achieved. Management ensures healthy control environment throughout the Bank. It identifies issues,
f. Board International Committee Four quarterly meetings. an efficient and effective internal controls system by carrying out risk improvement opportunities, making recommendations, and keeping
assessment, designing and implementing adequate controls, the BOD and management up-to-date on matters requiring
reviewing policies & procedures, implementing rules & regulations, resolution. All significant / material findings are reported to the
15. The Board has set up an effective internal audit function who and monitoring effectiveness of controls and systems. Board’s Audit Committee which actively monitors implementation of
are considered suitably qualified and experienced for the internal controls to ensure that identified risks are mitigated to
purpose and are conversant with the policies and procedures Internal controls, policies and procedures are designed to provide safeguard interest of the Bank. During the period, Audit has
of the Bank; assurance regarding the effectiveness and efficiency of Bank’s performed various offsite reviews; particularly, keeping in view of
operations, safeguarding of assets, reliability of financial information, rapidly changing economic environment and consulting
16. The statutory auditors of the Bank have confirmed that they and compliance with applicable laws & regulations. While, internal engagements considering the emerging threats and assessing the
have been given a satisfactory rating under the Quality Control control systems are designed to manage, rather than eliminate the management responsiveness to provide insights on governance,
Review program of the Institute of Chartered Accountants of risk of failure to achieve the business objectives and can only provide evolving risks, business disruption and embedded controls for
Pakistan and registered with Audit Oversight Board of reasonable and not absolute assurance against material enhancing the overall control environment.
Pakistan, that they and all their partners are in compliance misstatement or loss under changing environment.
with International Federation of Accountants (IFAC) guidelines All significant and material findings of the internal and external
Internal control comprises of interrelated components including
on code of ethics as adopted by the Institute of Chartered auditors as well as observations of the regulators are addressed on
control environment, risk assessment process, information and
Accountants of Pakistan and that they and the partners of the priority by the management and their status is reported periodically
communication, control activities, and monitoring of internal
firm involved in the audit are not a close relative (spouse, to the Board’s Audit Committee and the Board’s Risk & Compliance
controls. Evaluation of internal controls system comprises of
parent, dependent and non-dependent children) of the Chief Committee through management committees of Audit and
different levels of monitoring activities i.e. Bank’s Management,
Executive Officer, Chief Financial Officer, Head of Internal Compliance, respectively. These committees are headed by the
Unified Command Structure in Branch Banking Group, Regional
Audit, Company Secretary or Director of the Bank; President & CEO. Committees deliberate and monitor remediation
Compliance Structure in Compliance Group, Internal Control plans, resolution & compliance undertaken by the line management,
Division of Operations Group, Internal Control over Financial
17. The statutory auditors or the persons associated with them for the control gaps identified by different levels of monitoring, and
Reporting (ICFR) Unit, and Audit & Risk Review Group.
have not been appointed to provide other services except in track their implementation.
accordance with the Act, these Regulations or any other Concerted efforts are made by every level of monitoring to improve The Bank endeavors to follow the State Bank of Pakistan’s guidelines
regulatory requirement and the auditors have confirmed that the control environment by regularly reviewing and strengthening on internal controls. The Bank is continuously making efforts to
they have observed IFAC guidelines in this regard; procedures to prevent and rectify control lapses and impart training ensure that effective and efficient internal control systems remain
for continuous improvement at all levels. Line management’s role has active and implemented through consistent and continuous
18. We confirm that all requirements of regulations 3, 6, 7, 8, been enhanced to include onsite reviews of processes in branches to monitoring that would help in further improving the overall control
27,32, 33 and 36 of the Regulations have been complied with. identify gaps in execution with special emphasis on the environment. As part of this exercise, the Bank has documented a
implementation of regulatory instructions, in addition to day to day comprehensive Internal Control over Financial Reporting (ICFR)
monitoring of control breaches for prompt corrective actions. Governance Framework which has been approved by the BOD. The
Keeping in view the Bank’s continued focus on controls and Bank’s external auditors are engaged annually to provide a Long
compliance matters, an Internal Control Division is operating within Form Report on ICFR as per the requirement of SBP. During the year,
Operations Group for monitoring branch related operations. Further, the Bank conducted testing of financial reporting controls for
in order to improve the oversight on regulatory requirements, ensuring the effectiveness of ICFR throughout the year. None of the
KYC/CDD/EDD quality, and Financial Crime Compliance (FCC), deficiencies identified are expected to have a material impact on
Regional Compliance Managers have been placed in each branch financial reporting.
Signature banking unit under Regional Compliance Structure in Compliance
Sir Mohammad Anwar Pervez, OBE, HPk Group. Based upon the results derived through ongoing testing of financial
Chairman reporting & internal controls, reviews and audits carried out during
Compliance Group manages compliance risk, provides advisory, the year by Management, Branch Banking Group, Regional
helps strengthen overall compliance environment. It enables the Compliance Structure in Compliance Group, Internal Control
bank to comply with laws, regulations, guidelines and internal Division of Operations Group, Internal Control over Financial
policies & procedures. Further, it provides oversight over regulatory Reporting (ICFR) Unit, and Audit & Risk Review Group, management
and FCC across the bank on an ongoing basis. considers that the existing internal control system is adequate and
Besides, BOD has established a Shariah Board (SB) which oversees has been effectively implemented and monitored. The Bank will
compliance with the Shariah rules and regulations for Islamic continue to enhance and further strengthen its internal control
banking business. Shariah Compliance Department (SCD) perform systems, on an ongoing basis.
reviews and determine appropriate actions for strengthening of
internal Shariah controls under guidance of SB and regulations.

Suleman Pervez Munawar Raza Shah Alee Khalid Ghaznavi Irfan Memon Abdul Aleem Qureshi Syed Manzoor Ijaz Farooq Muhammad Jawaid Iqbal
Acting Head - Chief Operating Group Executive - Group Executive - Group Executive - Hussain Zaidi Deputy CEO President & CEO
Audit & Risk Review Officer Islamic Banking Compliance Branch Banking Chief Financial Officer

66 United Bank Limited Annual Report 2024 67

 A SMARTER
TOMORROW
UBL’S INNOVATION
JOURNEY
At UBL, innovation isn’t just a goal—it’s a continuous
journey. By constantly enhancing its products,
services, and digital platforms, the bank is shaping a
more connected, intelligent, and customer-driven
financial experience. With a diverse range of
innovative products and services, catering to the
financial well-being of all segments of the country,
UBL is committed to making banking smarter, safer,
and more intuitive, ensuring customers stay ahead in
an ever-evolving financial landscape.

68 United Bank Limited Annual Report 2024 69

 INDEPENDENT AUDITOR’S REPORT
To the members of United Bank Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the annexed unconsolidated financial statements of United Bank Limited, which comprise the unconsolidated
statement of financial position as at 31 December 2024, the unconsolidated profit and loss account, the unconsolidated statement
of comprehensive income, the unconsolidated statement of changes in equity and the unconsolidated cash flows statement for
the year then ended, along with unaudited certified returns received from the branches except for thirty-one branches which have
been audited by us and notes to the financial statements, including material accounting policy information and other explanatory
information and we state that we have obtained all the information and explanations which, to the best of our knowledge and belief,

FINANCIAL
were necessary for the purposes of the audit.

In our opinion and to the best of our information and according to the explanations given to us, the unconsolidated statement of
financial position, the unconsolidated statement of profit and loss account, the unconsolidated statement of comprehensive income,

STATEMENTS 2024 the unconsolidated statement of changes in equity and the unconsolidated cash flow statement together with the notes forming
part thereof conform with the accounting and reporting standards as applicable in Pakistan, and gives the information required by
the Banking Companies Ordinance, 1962 and the Companies Act, 2017 (XIX of 2017), in the manner so required and respectively
give a true and fair view of the state of the Bank’s affairs as at 31 December 2024 and of the profit, the other comprehensive income,
the changes in equity and its cash flows for the year then ended.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Pakistan. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are independent of the Bank in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics
for Professional Accountants as adopted by the Institute of Chartered Accountants of Pakistan (the Code) and we have fulfilled our
other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements
of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters.

70 United Bank Limited Annual Report 2024 71

Following are the key audit matters: Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
Key audit matters How the matter was addressed in our audit whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
1. Expected credit loss against advances assurance, but is not a guarantee that an audit conducted in accordance with ISAs as applicable in Pakistan will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
As disclosed in Note 9 to the unconsolidated financial statements, We applied a range of audit procedures including the following: they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
the Bank’s advances represent 17.9% of its total assets as of 31
December 2024. • We reviewed the management’s process of assessment of As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional judgment and maintain professional
allowance for ECL against advances including the Bank’s scepticism throughout the audit. We also:
During the year, the Bank has adopted IFRS 9 - “Financial accounting policy and ECL model methodology adopted
Instruments” (as applicable in Pakistan), which requires a forward- during the year. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform
looking approach to estimate the Expected Credit Loss (“ECL”) audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our
against advances and other financial instruments. As allowed • We performed procedures to test:
opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud
under IFRS 9, the Bank has adopted the requirements of the may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
standard retrospectively, without restating the previous year’s o the governance of ECL models and their validation,
financial information. The adoption of IFRS 9 has resulted in a including relevant approvals.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
transition adjustment to the retained earnings as of 1 January 2024
o completeness and accuracy of critical data inputs into circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Bank’s internal control.
of Rs. 4,327.814 million. The impact of transition is explained in
the ECL models and calculations.
Note 2.6.1.3 to the unconsolidated financial statements.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
o timely identification of SICR and the determination of made by management.
In view of the significance of this area in terms of its impact on the
individually impaired exposures.
unconsolidated financial statements, and level of involvement of
management’s estimates and judgments, we identified adequacy o the management’s assessment of recoverable cash • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
and completeness of ECL against advances as a key audit matter. flows, including the impact of collateral, if any, and obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bank’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
o ECL computation for exposures. report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions
The accounting policy and disclosures related to the ECL against • Where required, we involved our experts to assist us in may cause the Bank to cease to continue as a going concern.
advances are included in Notes 4.2 and 9.4 respectively to the reviewing model calculations, evaluating interrelated
unconsolidated financial statements. inputs (including EADs, PDs and LGDs) and assessing • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the
reasonableness of assumptions used in the ECL models. financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We also assessed adequacy of disclosures as included in Note
9.4 to the unconsolidated financial statements regarding the ECL We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant
made against advances in accordance with the requirements of audit findings, including any significant deficiencies in internal control that we identify during our audit.
the applicable financial reporting framework
We also provide to the Board of Directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
Information Other than the Financial Statements and Auditors’ Report Thereon
independence, and where applicable, related safeguards.

Management is responsible for the other information. The other information comprises the information included in the Annual Report,
From the matters communicated with the Board of Directors, we determine those matters that were of most significance in the audit of
but does not include the financial statements and our auditors’ report thereon.
the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion
matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to
thereon.
outweigh the public interest benefits of such communication.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider
Report on Other Legal and Regulatory Requirements
whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise
appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard. 1. Based on our audit, we further report that in our opinion:

Responsibilities of Management and the Board of Directors for the Financial Statements a) proper books of account have been kept by the Bank as required by the Companies Act, 2017 (XIX of 2017) and the returns referred
above from the branches have been found adequate for the purpose of our audit;
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting and
reporting standards as applicable in Pakistan, the requirements of Banking Companies Ordinance, 1962 and the Companies Act, 2017
(XIX of 2017) and for such internal control as management determines is necessary to enable the preparation of financial statements that
b) the statement of financial position, the statement of profit or loss, the statement of comprehensive income, statement of changes in
are free from material misstatement, whether due to fraud or error.
equity and statement of cash flows (together with the notes thereon have been drawn up in conformity with the Banking Companies
Ordinance, 1962 and the Companies Act, 2017(XIX of 2017) and are in agreement with the books of account and returns;
In preparing the financial statements, management is responsible for assessing the Bank’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either
intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.
c) investments made, expenditure incurred and guarantees extended during the year were in accordance with the objects and powers
of the Bank and the transactions of the Bank which have come to our notice have been within the powers of the Bank; and
The Board of directors is responsible for overseeing the Bank’s financial reporting process.

72 United Bank Limited Annual Report 2024 73

d) zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by the Bank and deposited in
the Central Zakat Fund established under section 7 of that Ordinance.
Unconsolidated Statement
Notes to and forming of Unconsolidated
part of the Financial Position
Financial Statements
UNCONSOLIDATED STATEMENT OF FINANCIAL POSITION
Forat
As the
December
year ended
31, December
2024
AS AT DECEMBER 31, 2024 31, 2024
2. We confirm that for the purpose of our audit we have covered more than sixty per cent of the total loans and advances of the Bank.
Note 2024 2023
--------------------------------- (Rupees in '000) -----------------------------

The engagement partner on the audit resulting in this independent auditor’s report is Omer Chughtai. ASSETS
Cash and balances with treasury banks 5 309,745,911 277,330,217
Balances with other banks 6 59,968,246 30,700,751
Lendings to financial institutions 7 18,492,483 34,447,852
Investments 8 5,886,894,503 4,385,216,671
Advances 9 1,443,481,944 613,565,526
Property and equipment 10 85,246,731 65,087,643
Right-of-use assets 11 9,896,084 8,497,029
Intangible assets 12 2,481,475 2,458,834
Chartered Accountants
Deferred tax assets 13 - -
Place: Karachi
Other assets 14 246,924,757 157,692,979
Date:
UDIN: 8,063,132,134 5,574,997,502

LIABILITIES
Bills payable 16 44,221,818 21,651,784
Borrowings 17 4,855,373,516 2,815,470,554
Deposits and other accounts 18 2,640,211,489 2,350,540,823
Lease liabilities 19 12,008,797 10,339,867
Subordinated debt 20 10,000,000 10,000,000
Deferred tax liabilities 13 38,959,061 1,921,889
Other liabilities 21 146,135,202 112,572,054
7,746,909,883 5,322,496,971

NET ASSETS 316,222,251 252,500,531

REPRESENTED BY:
Share capital 22 12,241,797 12,241,797
Reserves 114,734,831 107,800,978
Surplus on revaluation of assets - net 23 77,289,805 41,965,460
Unappropriated profit 111,955,818 90,492,296
316,222,251 252,500,531

CONTINGENCIES AND COMMITMENTS 24

The annexed notes 1 to 51 and annexures I, II and III form an integral part of these unconsolidated financial statements.

             

Syed Manzoor
Chief Hussain
Financial Officer Zaidi Muhammad
President &Jawaid Iqbal Shazia Syed
Director Daniel Michael Howlett
Director Sir Mohammed Anwar Pervez, OBE, HPk
Chairman
Chief Financial Officer President
Chief Executive &
Officer Director Director Chairman
Chief Executive Officer

74 United Bank Limited Annual Report 2024 75

Unconsolidated Profit
Notes to and forming and
part Loss
of the Account
Unconsolidated Financial Statements Unconsolidated Statement
Notes to and forming of Unconsolidated
part of the Comprehensive IncomeStatements
Financial
For the year ended December 31, 2024
UNCONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year STATEMENT
UNCONSOLIDATED ended December 31, 2024
OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 2024 FOR THE YEAR ENDED DECEMBER 31, 2024
Note 2024 2023 2024 2023
-------------- (Rupees in '000) -------------- -------------- (Rupees in '000) --------------

Profit after taxation for the year 80,527,534 53,180,413

Mark-up / return / interest earned 26 1,084,582,857 521,374,426
Mark-up / return / interest expensed 27 911,168,032 378,490,304 Other comprehensive income
Net mark-up / interest income 173,414,825 142,884,122
Items that may be reclassified to profit and loss account in subsequent periods

Non mark-up / interest income Effect of translation of net investment in foreign branches (1,118,901) 16,228,563
Fee and commission income 28 18,910,354 17,526,982 Movement in surplus / (deficit) on revaluation of debt investments through FVOCI - net of tax 33,180,246 22,752,820
Dividend income 1,796,320 1,715,063 32,061,345 38,981,383
Foreign exchange income 12,221,392 12,498,424
Gain from derivatives 1,230,801 6,772 Items that will not be reclassified to profit and loss account in subsequent periods
Gain on securities - net 29 42,592,701 365,820
Capital gain on derecognition of financial assets measured at amortised cost 2,894,427 - Movement in surplus on revaluation of equity investments through FVOCI - net of tax 4,826,678 1,680,712
Other income 30 7,848,128 1,096,504 Remeasurement gain on defined benefit obligations - net of tax 4,177,500 1,046,605
Total non mark-up / interest income 87,494,123 33,209,565 Movement in surplus / (deficit) on revaluation of property and equipment - net of tax 319,239 6,710
Total income 260,908,948 176,093,687 Movement in surplus on revaluation of non-banking assets - net of tax 1,146 -
9,324,563 2,734,027
Non mark-up / interest expenses
Operating expenses 31 94,784,859 64,305,675 Total comprehensive income for the year 121,913,442 94,895,823
Workers' Welfare Fund 32 3,105,396 2,131,149
Other charges 33 75,270 240,326
Total non mark-up / interest expenses 97,965,525 66,677,150

Profit before credit loss allowance 162,943,423 109,416,537

Credit loss allowance / provisions and write-offs - net 34 12,751,775 1,298,463 The annexed notes 1 to 51 and annexures I, II and III form an integral part of these unconsolidated financial statements.

Profit before taxation 150,191,648 108,118,074

Taxation 35 69,664,114 54,937,661

Profit after taxation 80,527,534 53,180,413

-------------- (Rupees) --------------

Earnings per share - basic and diluted 36 65.78 43.44

The annexed notes 1 to 51 and annexures I, II and III form an integral part of these unconsolidated financial statements.

Syed Manzoor Hussain Zaidi Muhammad Jawaid Iqbal Shazia Syed Daniel Michael Howlett Sir Mohammed Anwar Pervez, OBE, HPk
Chief Financial Officer President & Director Director Chairman Syed Manzoor Hussain Zaidi Muhammad Jawaid Iqbal Shazia Syed Daniel Michael Howlett Sir Mohammed Anwar Pervez, OBE, HPk
             

            

Chief Executive Chief Financial Officer President & Director Director Chairman
Chief Financial Officer President & Officer Director Director Chairman Chief Financial Officer President & Director Director Chairman
Chief Executive Officer ChiefExecutive
Chief ExecutiveOfficer
Officer

76 United Bank Limited Annual Report 2024 77

Unconsolidated Statement
Notes to and forming of Changes
part of the in Equity
Unconsolidated Financial Statements Unconsolidated Cash
Notes to and forming Flow
part Statement
of the Unconsolidated Financial Statements
For the yearSTATEMENT
UNCONSOLIDATED endedOFDecember 31, 2024
CHANGES IN EQUITY For the yearCASH
UNCONSOLIDATED ended
FLOW December
STATEMENT 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024 FOR THE YEAR ENDED DECEMBER 31, 2024

Surplus / (deficit) on revaluation Note 2024 2023

Capital reserve - -------------- (Rupees in '000) --------------
Statutory Unappropriated
Share capital exchange Property and Non-banking Total CASH FLOW FROM OPERATING ACTIVITIES
reserve Investments profit
translation equipment assets Profit before taxation 150,191,648 108,118,074
Less: Dividend income (1,796,320) (1,715,063)
----------------------------------------------------------------------------------------------------- (Rupees in '000) -----------------------------------------------------------------------------------------------------
148,395,328 106,403,011
Balance as at January 01, 2023 12,241,797 44,694,292 41,560,081 (20,679,865) 39,765,799 - 91,438,152 209,020,256 Adjustments:
Total comprehensive income for the Depreciation on property and equipment 5,783,338 4,359,764
year ended December 31, 2023 Depreciation on right-of-use assets 2,423,781 2,286,328
Profit after taxation for the year ended Depreciation on non-banking assets acquired in satisfaction of claims 3,226 3,012
December 31, 2023 - - - - - - 53,180,413 53,180,413 Depreciation on Islamic financing against leased assets (Ijarah) 79,527 135,236
Other comprehensive income - net of tax - 16,228,563 - 24,433,532 6,710 - 1,046,605 41,715,410 Amortisation 1,007,926 997,628
Workers' Welfare Fund - charge 3,105,396 2,131,149
Total comprehensive income for the year
Provision for retirement benefits 71,967 559,077
ended December 31, 2023 - 16,228,563 - 24,433,532 6,710 - 54,227,018 94,895,823
Credit loss allowance against loans and advances - net 11,253,648 (4,898,710)
Transfer from surplus on revaluation upon Credit loss allowance against off - balance sheet obligations - net 1,303,408 (29,304)
disposal to unappropriated profit - net of tax - - - - (1,474,233) - 1,474,233 - Credit loss allowance for diminution in value of investments - net (273,241) 6,527,545
Transfer of incremental depreciation from revaluation Interest expense on lease liability against right-of-use assets 1,469,697 1,217,778
of property and equipment to unappropriated profit - net of tax - - - - (86,483) - 86,483 - Gain on sale of property and equipment - net (232,084) (487,628)
Transfer to statutory reserve - - 5,318,042 - - - (5,318,042) - Gain on sale of Ijarah assets - net (1,016) (2,068)
Gain on sale of subsidiary (7,083,501) -
Transactions with owners, recorded
directly in equity Bad debts written-off directly 54,951 55,861
Unrealised (gain) / loss on revaluation of investments classified as FVTPL (35,068) 79,074
Final cash dividend - December 31, 2022 declared
Credit loss allowance against other assets 476,252 (29,016)
subsequent to the year end at Rs. 9.0 per share - - - - - - (11,017,617) (11,017,617)
Other provisions / write-offs 160,014 149,432
Interim cash dividend - March 31, 2023 19,568,221 13,055,158
declared at Rs. 11.0 per share - - - - - - (13,465,977) (13,465,977)
167,963,549 119,458,169
Interim cash dividend - June 30, 2023 (Increase) / decrease in operating assets
declared at Rs. 11.0 per share - - - - - - (13,465,977) (13,465,977)
Lendings to financial institutions 15,955,369 50,848,628
Interim cash dividend - September 30, 2023 Securities classified as FVTPL 55,025,621 (51,489,494)
declared at Rs. 11.0 per share - - - - - - (13,465,977) (13,465,977)
Advances (841,322,872) 312,960,408
- - - - - - (51,415,548) (51,415,548) Other assets (excluding advance taxation) (79,549,100) (72,537,315)
Balance as at December 31, 2023 12,241,797 60,922,855 46,878,123 3,753,667 38,211,793 - 90,492,296 252,500,531 (849,890,982) 239,782,227
- - - (2,973,630) - - 2,973,630 -
Increase / (decrease) in operating liabilities
Effect of reclassification on adoption of IFRS 9 (net of tax)
Bills payable 22,570,034 (11,369,954)
Effect of adoption of IFRS 9 - ECL (net of tax) - - - - - - (4,327,814) (4,327,814) Borrowings 2,039,902,962 2,250,951,966
- - - (2,973,630) - - (1,354,184) (4,327,814)
Deposits and other accounts 289,670,666 508,721,730
Balance as at January 01, 2024 -as restated 12,241,797 60,922,855 46,878,123 780,037 38,211,793 - 89,138,112 248,172,717 Other liabilities 26,869,487 20,245,334
Total comprehensive income for the 2,379,013,149 2,768,549,076
year ended December 31, 2024 1,697,085,716 3,127,789,472
Receipt / (payment) on account of staff retirement benefits 505,144 (714,773)
Profit after taxation for the year ended
December 31, 2024 - - - - - - 80,527,534 80,527,534 Workers' Welfare Fund refund 667,943 -
Income taxes paid (82,684,275) (44,920,857)
Other comprehensive income - net of tax - (1,118,901) - 38,006,924 319,239 1,146 4,177,500 41,385,908
Net cash flow (used in) / generated from operating activities 1,615,574,528 3,082,153,842
Total comprehensive income for the year
ended December 31, 2024 - (1,118,901) - 38,006,924 319,239 1,146 84,705,034 121,913,442 CASH FLOW FROM INVESTING ACTIVITIES
Net investments in securities classified as FVOCI (1,521,630,707) (2,945,797,121)
Transfer from surplus on revaluation upon
disposal to unappropriated profit - net of tax - - - - - - - -
Net investments in amortized cost securities 40,239,286 64,098,624
Net investments in associates - 1,199,125
Transfer of incremental depreciation from revaluation Net investments in subsidiaries 1,855,223 (1,000,000)
of property and equipment to unappropriated profit - net of tax - - - - (77,583) - 77,583 -
Investment in property and equipment and intangible assets (27,037,686) (8,867,107)
Transfer of net loss on disposal of FVOCI equity investments Dividend income received 1,796,320 1,715,063
from surplus to unappropiateed profit - net of tax - - - 48,249 - - (48,249) - Proceeds realised on sale of subsidiary 9,053,274 -
Transfer to statutory reserve - - 8,052,754 - - - (8,052,754) - Sale proceeds from disposal of property and equipment and intangible assets 259,438 2,020,689
Transactions with owners, recorded Sale proceeds from sale of Ijarah assets 19,344 20,842
directly in equity Effect of translation of net investment in foreign branches (1,118,901) 16,228,563
Net cash flow used in investing activities (1,496,564,409) (2,870,381,322)
Final cash dividend - December 31, 2023 declared
subsequent to the year end at Rs. 11.0 per share - - - - - - (13,465,977) (13,465,977) CASH FLOW FROM FINANCING ACTIVITIES
Interim cash dividend - March 31, 2024 Payment of lease liability against right-of-use assets (3,501,422) (3,202,250)
declared at Rs. 11.0 per share - - - - - - (13,465,977) (13,465,977) Dividends paid (53,825,508) (59,235,963)
Interim cash dividend - June 30, 2024 Net cash flow used in financing activities (57,326,930) (62,438,213)
declared at Rs. 11.0 per share - - - - - - (13,465,977) (13,465,977)
Increase in cash and cash equivalents 61,683,189 149,334,307
Interim cash dividend - September 30, 2024 Cash and cash equivalents at the beginning of the year 309,603,472 140,042,068
declared at Rs. 11.0 per share - - - - - - (13,465,977) (13,465,977) Effect of exchange rate changes on cash and cash equivalents (1,572,504) 18,654,593
- - - - - - (53,863,908) (53,863,908) 308,030,968 158,696,661
Balance as at December 31, 2024 12,241,797 59,803,954 54,930,877 38,835,210 38,453,449 1,146 111,955,818 316,222,251 Cash and cash equivalents at the end of the year 37 369,714,157 308,030,968

The annexed notes 1 to 51 and annexures I, II and III form an integral part of these unconsolidated financial statements.
The annexed notes 1 to 51 and annexures I, II and III form an integral part of these unconsolidated financial statements.

Syed Manzoor Hussain Zaidi Muhammad Jawaid Iqbal Shazia Syed Daniel Michael Howlett Sir Mohammed Anwar Pervez, OBE, HPk
Chief Financial Officer President & Director Director Chairman
Syed Manzoor Hussain Zaidi 
 Muhammad Jawaid
Iqbal Shazia Syed
 Daniel Michael Howlett
   Sir Mohammed
 Anwar Pervez,
 OBE, HPk
 
 Chief
Executive Officer
          

Chief Financial Officer President & Director Director Chairman
Chief Financial Officer President & Director Director Chairman Chief Financial Officer President & Director Director Chairman
Chief
ChiefExecutive
ExecutiveOfficer
Officer Chief Executive Officer

78 United Bank Limited 4 5 Annual Report 2024 79

Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
For the year ended December 31, 2024
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
For
NOTES the year
TO AND ended
FORMING PART OFDecember 31, 2024
THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 FOR THE YEAR ENDED DECEMBER 31, 2024

1. STATUS AND NATURE OF BUSINESS 2.6 Standards, interpretations of and amendments to accounting and reporting standards that are effective in the current year

United Bank Limited (the Bank) is a banking company incorporated in Pakistan and is engaged in commercial banking and related There are certain amendments to existing accounting and reporting standards that have become applicable to the Bank for accounting
services. The Bank's registered office and principal office are situated at UBL Building, Jinnah Avenue, Blue Area, Islamabad and at periods beginning on or after January 01, 2024. Except for IFRS 9, these are either considered not to be relevant or do not have any
UBL Head Office, I. I. Chundrigar Road, Karachi respectively. The Bank operates 1,474 (2023: 1,356) branches inside Pakistan significant impact and accordingly have not been detailed in these unconsolidated financial statements.
including 496 (2023: 209) Islamic Banking branches and 2 (2023: 2) branches in Export Processing Zones. The Bank also operates 8
(2023: 8) branches outside Pakistan. The Bank is a subsidiary of Bestway International Holdings Limited (BIHL) and BIHL is a wholly 2.6.1 IFRS 9 - Financial Instruments
owned subsidiary of Bestway Group Limited (BGL), both of which have been incorporated in the Guernsey.
2.6.1.1 The Bank has adopted IFRS 9 (read with IFRS 9 application instructions issued by SBP) retrospectively with date of initial application
as January 01, 2024, which resulted in changes in accounting policies and adjustments to the amounts previously recognised in the
financial statements. In terms of the transitional provisions of IFRS 9, adjustments to the carrying amounts of financial assets and
The Bank's ordinary shares are listed on Pakistan Stock Exchange (PSX). Its Global Depository Receipts (GDRs) are on the list of the liabilities at the date of transition were recognised in the opening unappropriated profit and other reserves at the beginning of the
UK Listing Authority and the London Stock Exchange Professional Securities Market. These GDRs are also eligible for trading on the current period without restating the comparative figures. Therefore, the comparative information for 2023 is not comparable for
International Order Book System of the London Stock Exchange. Further, the GDRs constitute an offering in the United States only to 2024.The impact on carrying amounts of the financial assets and liabilities is disclosed in Note 2.6.1.3.
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.
2.6.1.2 Scope of IFRS 9 application
2. BASIS OF PRESENTATION IFRS 9 has been applicable in several overseas jurisdictions at various effective dates starting from January 01, 2018. The
2.1 These unconsolidated financial statements have been prepared in conformity with the format of financial statements prescribed by the requirements of this standard were already incorporated in the Bank’s financial statements for the jurisdictions where IFRS 9 has been
State Bank of Pakistan (SBP) vide BPRD Circular No. 02, dated February 09, 2023. adopted in accordance with the financial reporting regimes of their respective jurisdictions. The results of those overseas operations
where IFRS 9 is not applicable will be directly incorporated in the Bank’s financial statements as per the respective jurisdiction's
2.2 In accordance with the directives of the Federal Government regarding the shifting of the banking system to Islamic mode. The SBP regulations, for the year ending December 31, 2024. As per the SBP IFRS 9 application instructions, all oversas jurisdictions will be
has issued various circulars from time to time. Permissible forms of trade-related modes of financing includes purchase of goods by subject to the IFRS 9 requirements from next financial year.
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 Upon implementation of IFRS 9, the Banking Industry sought certain technical clarifications from SBP and also identified practical
amount of facility actually utilized and the appropriate portion of profit thereon. difficulties with respect to (i) valuation of unquoted equity securities, (ii) recognition of interest income/expense on financial instruments
using the Effective Interest Method (EIR), and (iii) Revenue recognition of Islamic financial instruments.With respect to (i) and (ii), the
SBP has allowed temporary extension in timeline with directions to implement IFRS 9 requirements from 1 January 2025 and 1
2.3 Key financial figures of the Islamic Banking branches are disclosed in Annexure II to these unconsolidated financial statements. January 2026, respectively. Accordingly, the Bank has continued to apply previous accounting practices in such areas for the purposes
of preparation of these financial statements. Further, with respect to (iii), the SBP has allowed Banks to continue the existing
accounting practice until further instructions. The income for the year would have been higher by approximately Rs1,295.667 million, if
2.4 The Bank has prepared its unconsolidated financial statements on the basis that it will continue to operate as a going concern.
the same had not been applied

2.5 STATEMENT OF COMPLIANCE 2.6.1.3 Transition disclosures

These unconsolidated financial statements have been prepared in accordance with the accounting and reporting standards as This note sets out the impact of adopting IFRS 9 on the statement of financial position, unappropriated profit and surplus on
applicable in Pakistan. The accounting and reporting standards comprise of: revaluation of investments.

- International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as are notified The following table reconciles the carrying amounts of financial assets, from their previous measurement category in accordance with
under the Companies Act, 2017; Prudential Regulations to their new measurement categories upon transition to IFRS 9 on January 01, 2024:

- Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan as are notified under Classification under IFRS 9
Carrying amount
the Companies Act, 2017; as per current IFRS 9
At FVOCI - Remeasurem
accounting At FVOCI - with At Amortized carrying
- Provisions of and directives issued under the Banking Companies Ordinance, 1962 and the Companies Act, 2017; and policy as at Dec
At FVTPL without ent under
recycling Cost amount as at
recycling IFRS 9
- Directives issued by the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP). 31, 2023 Jan 01, 2024

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

Whenever the requirements of the Banking Companies Ordinance, 1962, the Companies Act, 2017 or the directives issued by the SBP Cash and balances
and the SECP differ with the requirements of IFRS or IFAS, the requirements of the Banking Companies Ordinance, 1962, the with banks 308,030,968 - - - 308,030,968 (1,182) 308,029,786
Companies Act, 2017 and the said directives shall prevail. Lendings to financial
institutions 34,447,852 - - - 34,447,852 - 34,447,852
The SBP vide BSD Circular Letter No. 10, dated August 26, 2002 has deferred the applicability of International Accounting Standard Advances 613,565,526 - - - 613,565,526 (12,222,808) 601,342,718
40, Investment Property for banking companies till further instructions. Moreover, SBP vide BPRD Circular No. 4, dated February 25, Investments
2015 has deferred the applicability of Islamic Financial Accounting Standards (IFAS) 3, Profit and Loss Sharing on Deposits. Further, Held for trading 78,956,749 78,956,749 - - - - 78,956,749
according to the notification of the SECP issued vide SRO 411(I)/2008 dated April 28, 2008, International Financial Reporting Standard Held to maturity 362,838,478 - - - 362,838,478 (344) 362,838,134
(IFRS) 7, Financial Instruments: Disclosures has not been made applicable for banks. Accordingly, the requirements of these Available for sale 3,939,226,221 3,018,999 3,925,259,062 10,948,160 - (7,157) 3,939,219,064
standards have not been considered in the preparation of these unconsolidated condensed interim financial statements. Other assets 150,395,306 4,266,717 - - 146,128,589 4,253,114 154,648,420
Total Financial assets 5,487,461,100 86,242,465 3,925,259,062 10,948,160 1,465,011,413 (7,978,377) 5,479,482,723

The SECP vide its notification SRO 633 (I)/2014 dated July 10, 2014, adopted IFRS 10 - Consolidated Financial Statements effective Borrowings 2,815,470,554 - - - 2,815,470,554 - 2,815,470,554
from the periods starting from June 30, 2014. However, vide its notification SRO 56 (I)/2016 dated January 28, 2016, it has been Bills payable 21,651,784 - - - 21,651,784 - 21,651,784
notified that the requirements of IFRS 10 and section 228 of the Companies Act, 2017 will not be applicable with respect to the Deposits 2,350,540,823 - - - 2,350,540,823 - 2,350,540,823
investment in mutual funds established under trust structure. Subordinated debt 10,000,000 - - - 10,000,000 - 10,000,000
Other liabilities 88,722,556 2,741,100 - - 85,981,456 1,037,902 89,760,458
These unconsolidated financial statements represent the separate financial statements of the Bank. The consolidated financial Total Financial liabilities 5,286,385,717 2,741,100 - - 5,283,644,617 1,037,902 5,287,423,619
statements of the Bank and its subsidiaries are presented separately. Net Financial Assets 201,075,383 83,501,365 3,925,259,062 10,948,160 (3,818,633,204) (9,016,279) 192,059,104

Deferred tax assets (1,921,889) - - - - 4,688,465 2,766,576

Effect on net assets on adoption of IFRS 9 (4,327,814)

80 United Bank Limited Annual Report 2024 81

Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
For the
FOR THE year
YEAR ENDEDended
DECEMBERDecember
31, 2024 31, 2024 For
NOTESthe year
TO AND ended
FORMING PART OFDecember 31, 2024
THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024

The following explains how applying the new classification requirements of IFRS 9 led to changes in classification of certain financial IASB Effective date (annual
assets held by the Bank as shown in the table above: periods beginning on or
Standard
after)
(A) Debt instruments previously classified as available for sale (AFS) but which fail the SPPI test
IFRS 1 - First time adoption of International Financial Reporting Standards January 01, 2004
The Bank held a portfolio of debt instruments amounting to Rs. 1,864.933 million that failed to meet the SPPI requirement for
IFRS 18 - Presentation and Disclosure in Financial Statements January 01, 2027
amortised cost classification under IFRS 9. These instruments contain provisions that, in certain circumstances, can allow the issuer to
defer interest payments, but which do not accrue additional interest. This clause breaches the criterion that interest payments should IFRS 19 - Subsidiaries without Public Accountability: Disclosures January 01, 2027
only be consideration for credit risk and the time value of money on the principal. As a result these are required to be classified as
FVTPL under IFRS 9. The above standards and amendments are not expected to have any significant impact on Bank's unconsolidated financial statements
for future periods, except for IFRS 18.
(B) Designation of equity instruments at FVOCI IFRS 18 - Presentation and Disclosure in Financial Statements

The Bank has elected to irrevocably designate investments in listed securities and strategic investments in unquoted securities as In April 2024, the IASB issued IFRS 18, which replaces IAS 1. IFRS 18 introduces new requirements for presentation of various items
FVOCI amounting to Rs. 10,228.156 million and Rs. 720.004 million, respectively. These securities were previously classified as within the statement of profit or loss, including specified totals and subtotals. Narrow-scope amendments have been made to IAS 7,
available for sale. The changes in fair value of such securities will no longer be reclassified to profit or loss when they are disposed of. which include changing the starting point for determining cash flows from operations under the indirect method, from ‘profit or loss’ to
‘operating profit or loss’ and removing the optionality around classification of cash flows from dividends and interest. In addition, there
(C) Reclassification from retired categories with no change in measurement are consequential amendments to several other standards. Earlier application is permitted and must be disclosed. IFRS 18 will apply
retrospectively. The Bank is currently working to identify all impacts the amendments will have on the unconsolidated financial
In addition to the above, the following debt instruments have been reclassified to new categories under IFRS 9, as their previous statements of future period and notes thereto.
categories under existing local regulations were ‘retired’, with no changes to their measurement basis:
2.8 Critical accounting estimates and judgments
(i) Those previously classified as available for sale and now classified as measured at FVOCI;
(ii) Those previously classified as held to maturity and now classified as measured at amortised cost; and The preparation of these unconsolidated financial statements in conformity with the accounting and reporting standards as applicable
(iii) Those previously classified as held for trading and now classified as measured at FVTPL. 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
The impact of transition to IFRS 9 on unappropriated profit and surplus on revaluation of investments is as follows: 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
Surplus / 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
Unappro- (Deficit) on periods if the revision affects both current and future periods.
Total
priated profit revaluation
Investments Significant accounting estimates and areas where judgments were made by management in the application of accounting policies are
------------------ (Rupees in '000) ----------------- as follows:
Balance as at December 31, 2023 90,492,296 3,753,667 94,245,963
Recognition of IFRS 9 ECL - net of tax (4,327,814) - (4,327,814) i) Fair valuation of financial assets (notes 4.2.2.2, 4.2.2.3, 4.2.2.4 and 8).
Available for sale equity instruments reclassified as FVOCI under IFRS 9 - net of tax 2,973,630 (2,973,630) - ii) Expected credit loss allowance against financial assets (notes 4.2.6, 8.3, 9.4 and 9.6).
Balance under IFRS 9 as at January 01, 2024 - as restated 89,138,112 780,037 89,918,149 iii) Income taxes (notes 4.18 and 35).
iv) Defined benefit plans (notes 4.20 and 39).
2.7 Standards, interpretations of and amendments to accounting and reporting standards that are not yet effective v) Fair value of derivatives (note 4.4 and 25).
vi) Revaluation and depreciation of property and equipment (notes 4.12 and 10).
The following standards, amendments and interpretations as notified under the Companies Act, 2017 will be effective for accounting vii) Amortisation of intangible assets (note 4.14 and 12).
periods beginning on or after January 01, 2025: viii) Incremental borrowing rate for leases (notes 4.13).
ix) Valuation of non-banking assets acquired in satisfaction of claims (note 4.15).
Standard, Interpretation or Amendment Effective date (annual
periods beginning on or 3. BASIS OF MEASUREMENT
after)
3.1 Accounting convention
Lack of exchangeability – Amendments to IAS 21 January 01, 2025
Classification and Measurement of Financial Instruments - Amendments to IFRS 9 and IFRS 7 January 01, 2026 These unconsolidated financial statements have been prepared under the historical cost convention except for:

IFRS 17 - Insurance Contracts January 01, 2026

- Certain class of property and equipment and non-banking assets acquired in satisfaction of claims, which have been stated at
Annual Improvements to IFRS Accounting Standards - Volume 11 January 01, 2026 revalued amounts less accumulated depreciation.
- Investments classified as FVTPL and FVOCI which are measured at fair value.
Power Purchase Agreements – Amendments to IFRS 9 and IFRS 7 January 01, 2026 - Certain derivative financial instruments, including forward exchange contracts which have been stated at fair value.
Sale or Contribution of Assets between an Investor and its Associate or Joint Venture - Amendments to
Not yet finalized 3.2 Functional and presentation currency
IFRS 10 and IAS 28
Further, following new standards have been issued by IASB which are yet to be notified by the SECP for the purpose of applicability in
These financial statements are presented in Pakistan Rupees, which is the Bank’s functional currency.
Pakistan.

4. MATERIAL ACCOUNTING POLICIES

The material accounting policies adopted in the preparation of these unconsolidated financial statements are consistent with those of
the previous financial year, except as disclosed in Notes 4.1 and 4.2.

82 United Bank Limited Annual Report 2024 83

Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
For
NOTES the
TO ANDyear ended
FORMING December
PART OF THE 31,
UNCONSOLIDATED 2024
FINANCIAL STATEMENTS For the
FOR THE year
YEAR ENDEDended
DECEMBERDecember
31, 2024 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024
4.1 Changes in reporting format b) The SPPI test

The SBP vide BPRD Circular No. 2 dated February 09, 2023 specified the new format for annual financial statements of banking As a second step of its classification process the Bank assesses the contractual terms of financial asset to identify whether they
companies. The new format has revised the disclosure requirements of the Bank for the year ended December 31, 2024 which has
meet the SPPI test. The assessment of SPPI aims to identify whether the contractual cash flows are ‘solely payments of principal
resulted in additional disclosures relating to IFRS 9 and reclassification of Lease liabilities and Right of use assets on the face of
and interest on the principal amount outstanding’.
Statement of Financial Position out of Property and equipment and Other Liabilities, respectively in these financial statements.

4.2 Financial Instruments - policies applicable from January 01, 2024 ‘Principal’ for the purpose of this test is defined as the fair value of the financial asset at initial recognition and may change over the
life of the financial asset. The most significant elements of 'interest' within a lending arrangement are typically the consideration for
Financial instruments carried on the balance sheet include Cash and balances with treasury banks, Balances with other banks, the time value of money and credit risk. To make the SPPI assessment, the Bank applies judgement and considers relevant
Lendings to financial institutions, Investments, Advances, certain Other assets, Bills payable, Borrowings, Deposits, Subordinated debt factors such as the currency in which the financial asset is denominated, and the period for which the interest rate is set.
and certain Other liabilities.
In contrast, contractual terms that introduce a more than de minimis exposure to risks or volatility in the contractual cash flows that
4.2.1 Initial recognition are unrelated to a basic lending arrangement do not give rise to contractual cash flows that are solely payments of principal and
interest on the amount outstanding. In such cases, the financial asset is required to be measured at FVTPL.
Date of initial recogniition

Advances are recognised when funds are transferred to the customers’ accounts. The Bank recognises Deposits and Bills payable After initial measurement, these financial assets are subsequently measured at amortized cost.
when funds are transferred to the Bank. Other financial assets and liabilities, are initially recognised on the trade date. This includes
regular way trades. 4.2.2.2 Debt instruments at FVOCI

Initial measurement The Bank applies this new category under IFRS 9 when both of the following conditions are met:

On initial recognition, financial assets and financial liabilities at fair value through profit or loss (FVTPL) are initially measured at their - The instrument is held within a business model, the objective of which is achieved by both collecting contractual cash flows and
fair value. The initial measurement of other financial instruments is based on their fair value, but adjusted in respect of any transaction selling financial assets
costs that are incremental and directly attributable to the acquisition or issue of the financial instrument. Other assets and Other
- The contractual terms of the financial asset meet the SPPI test
liabilities are measured at the transaction price.

When the transaction price of the instrument differs from the fair value at origination and the fair value is based on a valuation
FVOCI debt instruments are subsequently measured at fair value with gains and losses arising due to changes in fair value recognised
technique using only inputs observable in market transactions, the Bank recognises the difference between the transaction price and in OCI. Interest income at EIR and foreign exchange gains and losses are recognised in the profit and loss account.
fair value in profit and loss account. In those cases where fair value is based on models for which some of the inputs are not
observable, the difference between the transaction price and the fair value is deferred and is only recognised in profit and loss account The ECLs for debt instruments measured at FVOCI do not reduce the carrying amount of these financial assets in the statement of
when the inputs become observable, or when the instrument is derecognised. financial position, which remains at fair value. Instead, an amount equal to the allowance that would arise if the assets were measured
at amortised cost is recognised in OCI as an accumulated impairment amount, with a corresponding charge to profit and loss account.
The accumulated loss recognised in OCI is recycled to the profit and loss account upon derecognition of the assets.
4.2.2 Classification and subsequent measurement of financial assets

Financial assets are classified into following categories for measurement subsequent to intial recognition: Market value of investment in Government securities is determined based on the relevant PKRV, PKFRV and PKISRV rates / price.
- Financial assets at amortized cost
- Debt instruments at 'fair value through other comprehensive income' FVOCI On derecognition, cumulative gains or losses previously recognised in OCI are reclassified from OCI to profit and loss account.
- Equity instruments at 'fair value through other comprehensive income' FVOCI
- Financial assets at 'fair value through profit or loss' FVTPL
4.2.2.3 Equity instruments at FVOCI
4.2.2.1 Financial assets at amortised cost
Upon initial recognition, the Bank elects to classify irrevocably some of its equity investments as equity instruments at FVOCI when
The Bank classifies its financial assets at amortized cost only if both of the following conditions are met: they meet the definition of 'Equity' under IAS 32 Financial Instruments: Presentation and are not held for trading. Such classification is
- The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash determined on an instrument-by-instrument basis and is irrevocable.
flows
- The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and Gains and losses on these equity instruments are never recycled to profit and loss account. Dividends are recognised in profit and loss
interest (SPPI) on the principal amount outstanding. account when the right of the payment has been established, except when the Bank benefits from such proceeds as a recovery of part
of the cost of the instrument, in which case, such gains are recorded in OCI. Equity instruments at FVOCI are not subject to an
The details of these conditions are outlined below: impairment assessment.

a) Business model assessment

4.2.2.4 Financial assets and financial liabilities at FVTPL
The Bank determines its business model at the level that best reflects how it manages groups of financial assets to achieve its Financial assets and financial liabilities in this category are those that are:
business objective.
- held for trading, that is, they have been purchased or issued primarily for short-term profit-making through trading activities or form
The Bank's business model is not assessed on an instrument-by-instrument basis, but at a higher level of aggregated portfolios part of a portfolio of financial instruments that are managed together, for which there is evidence of a recent pattern of short-term
and is based on observable factors such as:
profit taking, or

- How the performance of the business model and the financial assets held within that business model are evaluated and reported to - not held for trading and have been either designated by management upon initial recognition, or mandatorily required to be
the Bank's Board / Board Committees; measured at fair value under IFRS 9
- The risks that affect the performance of the business model (and the financial assets held within that business model) and, in
particular, the way those risks are managed; Financial assets are recorded in the statement of financial position at fair value. Changes in fair value are recorded in profit and loss
- The expected frequency, value and timing of sales are also important aspects of the Bank’s assessment. account. Interest and dividend income or expense is recorded in net trading income according to the terms of the contract, or when the
right to payment has been established.
The business model assessment is based on reasonably expected scenarios without taking 'worst case' or 'stress case’ scenarios
into account. If cash flows after initial recognition are realised in a way that is different from the Bank's original expectations, the
Bank does not change the classification of the remaining financial assets held in that business model, but incorporates such
information when assessing newly originated or newly purchased financial assets going forward.

84 United Bank Limited Annual Report 2024 85

10
Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
For
NOTESthe year
TO AND ended
FORMING PART OFDecember 31, 2024
THE UNCONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024
4.2.2.5 Financial liabilities at amortised cost 4.2.6.2 The calculation of ECLs

These include Bills payable, Borrowings, Deposits, Subordinated debts and certain items within Other Liabilities. The key elements of ECL calculations are as follows:

4.2.3 Derecognition of financial assets - The Probability of Default (PD) is an estimate of the likelihood of default over a given time horizon. A default may only happen at a
certain time over the assessed period, if the facility has not been previously derecognised and is still in the portfolio. PD is
4.2.3.1 Derecognition due to substantial modification of terms and conditions estimated based on transitioning among credit states. Through the yearly review of the internally rated advances (Corporate and
Commercial/SME portfolios) and non-rated Consumer portfolios, Staff Loans and Investments, the Bank has drawn an yearly
The Bank derecognises a financial asset, such as a loan to a customer, when the terms and conditions have been renegotiated to the transition matrix of ratings and DPD buckets, respectively, to compute a count based PD over the one year horizon for the last ten
extent that, substantially, it becomes a new loan, with the difference recognised as a derecognition gain or loss, to the extent that an years. For externally rated Investments PD tables from External Rating Agencies are used. PDs are then adjusted for IFRS 9 ECL
impairment loss has not already been recorded. The newly recognised loan is classified as Stage 1 for ECL measurement purposes, calculations to incorporate forward looking information.
unless it is deemed to be purchased originated credit impaired. When assessing whether or not to derecognise a loan to a customer,
amongst others, the Bank considers qualitative factors such as change in currency of the loan, introduction of an equity feature,
change in counterparty, or if the modification is such that the instrument would no longer meet the SPPI criterion. - The Exposure at Default (EAD) is an estimate of the exposure at a future default date, taking into account expected changes in the
exposure after the reporting date, including repayments of principal and interest, whether scheduled by contract or otherwise,
expected drawdowns on committed facilities, accrued interest from missed payments and amortization.
If the modification does not result in cash flows that are substantially different, the modification does not result in derecognition. Based
on the change in cash flows discounted at the original EIR, the Bank records a modification gain or loss, to the extent that an
impairment loss has not already been recorded. - The Loss Given Default (LGD) is an estimate of the loss arising in the case where a default occurs at a given time. It is based on
the difference between the contractual cash flows due and those that the lender would expect to receive.The Bank estimates LGD
4.2.3.2 Derecognition other than due to substantial modification of terms and conditions based on the history of recovery rates and considers the recovery of any liquid collateral for each group of financial instruments.
LGDs are then adjusted for IFRS 9 ECL calculations to incorporate forward looking information.
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when
the rights to receive cash flows from the financial asset have expired. The Bank also derecognises the financial asset if it has both
transferred the financial asset and the transfer qualifies for derecognition. The interest rate used to discount the ECLs would be based on the effective interest rate that is expected to be charged over the
expected period of exposure to the facilities.
The difference between the carrying value (including impairment) of a financial asset and the consideration received is recognized in
profit and loss account. When estimating the ECLs, the Bank considers three probability-weighted scenarios (a base case, a best case, and a worse case).
Each of these is associated with different PDs, EADs and LGDs. These expected probabilities are applied to a forecast EAD and
4.2.4 Derecognition of financial liabilities multiplied by the expected LGD and discounted by an approximation to the original EIR. This calculation is made for each of the three
scenarios.
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. The difference between
the carrying value of the financial liability and the consideration paid is recognised in profit or loss account. With the exception of credit cards and other revolving facilities, the maximum period for which the credit losses are determined is the
contractual life of a financial instrument unless the Bank has the legal right to call it earlier. For credit cards and revolving facilities
4.2.5 Write-offs based on past experience and the Bank’s expectations, the Bank calculates ECL for these products over their behavioral life

Financial assets are written off when there is no realistic prospect of recovery. The amount so written-off is a book entry and does not Impairment losses and releases are accounted for and disclosed separately from modification losses or gains that are accounted for as
necessarily prejudice the Bank's right of recovery against the defaulter. an adjustment of the financial asset’s gross carrying value.
4.2.6 Impairment of financial assets
4.2.6.3 Significant increase in credit risk
4.2.6.1 Overview of the ECL principles
The Bank has established a policy to perform an assessment, at the end of each reporting period, of whether a financial instrument’s
The adoption of IFRS 9 has fundamentally changed the Bank’s loan loss impairment method by replacing the incurred loss approach of credit risk has increased significantly since initial recognition, by considering the change in the risk of default occurring over the
the local regulations with a forward-looking ECL approach. The Bank has been recording the allowance for expected credit losses for remaining life of the financial instrument. The Bank uses both qualitative and quantitative criteria for determining whether there has
all advances and other debt financial assets held at amortised cost or FVOCI, together with loan commitments, letters of credit and been a significant increase in credit risk. These include comparing lifetime PD at the reporting date with the lifetime PD at the initial
financial guarantee contracts. Equity instruments are not subject to impairment under IFRS 9. Under the SBP's instructions, local recognition of the financial asset, a backstop of thirty days past due on the contractual payments, considerable deterioration in the
currency credit exposures guaranteed by the Government and Government Securities are exempted from the application of ECL. internal or external rating (as the case maybe), moving a customer/facility to the watch list, or the account becoming forborne.
However, for certain portfolios, the Bank rebutts 30 days past due presumption based on behavioural analysis of its borrowers.
The ECL allowance is based on the credit losses expected to arise over the life of the asset (the lifetime expected credit loss (LTECL)),
unless there has been no significant increase in credit risk since origination, in which case, the allowance is based on the 12 months’
expected credit loss (12mECL). 4.2.6.4 Definition of default

The Bank considers a financial instrument defaulted for ECL calculations in all cases when the borrower becomes 90 days past due on
The 12mECL is the portion of LTECLs that represent the ECLs that result from default events on a financial instrument that are its contractual payments, except for agricultural loans which are considered defaulted at 365 days past due. The Bank also considers a
possible within the 12 months after the reporting date. variety of instances that may indicate unlikeliness to pay. When such events occur, the Bank carefully considers whether the event
should result in treating the customer as defaulted and therefore assessed as Stage 3 for ECL calculations or whether Stage 2 is
Based on the above process, the Bank groups its financial assets into Stage 1, Stage 2 and Stage 3 as described below: appropriate.

- Stage 1: When loans are first recognised, the Bank recognises an allowance based on 12mECLs. Stage 1 loans also include 4.2.6.5 Forward looking information
facilities where the credit risk has improved and the loan has been reclassified from Stage 2.
The Bank formulates a base case view of the future direction of relevant economic variables and a representative range of other
- Stage 2: When a loan has shown a significant increase in credit risk since origination (SICR), the Bank records an allowance for possible forecast scenarios and consideration of a variety of external actual and forecast information. This process involves developing
the LTECLs. Stage 2 loans also include facilities, where the credit risk has improved and the loan has been reclassified from three different economic scenarios, which represent a range of scenarios linked to GDP growth, CPI and Gross government debt and
Stage 3. Unemployment rate.

Stage 3: Loans considered credit-impaired. The Bank records an allowance for the LTECLs with PD set at 100%. Under SBP's
instructions, until implementation of IFRS 9 has stabilized, Stage 3 allowance would be taken as as higher of IFRS 9 ECL or
provision computed under Prudential Regulations.

86 United Bank Limited Annual Report 2024 87

Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024
For the year ended December 31, 2024
4.3.1.9 Impairment
4.3 Financial instruments - policies applicable before January 01, 2024
4.3.1.10 Impairment of available for sale equity investments
4.3.1 Investments of the Bank, other than investments in subsidiaries and associates, are classified into following categories:
Available for sale equity investments are impaired when there has been a significant or prolonged decline in their fair value below
their cost. The determination of what is significant or prolonged requires judgment. In making this judgment, the Bank evaluates,
4.3.1.1 Held for trading
among other factors, the normal volatility in share price. A subsequent increase in the fair value of a previously impaired listed equity
security is recorded in the statement of financial position in the surplus / deficit on revaluation of securities account and only recorded
through the profit and loss account when realised on disposal.
These are securities which are either acquired for generating a profit from short-term fluctuations in market prices, interest rate
movements and dealer's margin, or are securities included in a portfolio in which a pattern of short term profit taking exists.
4.3.1.11 Impairment of debt investments

4.3.1.2 Held to maturity Provisions for diminution in the value of debt securities are made as per the criteria prescribed by the Prudential Regulations issued
by the SBP. Provision against debt investments by the Bank's overseas branches is made as per the requirements of the respective
regulatory regimes in which the overseas branches operate.
These are securities with fixed or determinable payments and fixed maturities, in respect of which the Bank has the positive intent
and ability to hold to maturity.
4.3.1.12 Advances

4.3.1.3 Available for sale Advances are stated net of specific and general provisions which are charged to the profit and loss account. Provision against
advances by the Bank's branches in Pakistan is determined on the basis of the Prudential Regulations and other directives issued by
the SBP. Provision against advances by the Bank's overseas branches are made in accordance with the requirements of the
These are investments, other than those in subsidiaries and associates, that do not fall under the held for trading or held to maturity financial reporting regime of the respective countries in which the overseas branches operate.
categories.
4.4 Derivatives recorded at fair value through profit or loss
4.3.1.4 Initial measurement
The Bank enters into derivative transactions with various counterparties. These include cross-currency swaps, forward foreign
exchange contracts and forward government securities transactions. Derivatives are recorded at fair value and carried as assets
All “regular way” purchases and sales of investments are recognised on the trade date, i.e., the date that the Bank commits to when their fair value is positive and as liabilities when their fair value is negative. The notional amount and fair value of such
purchase or sell the investment. Regular way purchases or sales of investments require delivery within the time frame generally derivatives are disclosed separately under 'Commitments' and 'Other assets/Other liabilities', respectively. Changes in the fair value
established by regulation or convention in the market place. of forward government securities transactions are included in 'Gain/(loss) on derivatives' in the profit and loss account, while for
cross-currency swaps and forward foreign exchange contracts they are including in 'Income from dealing in foreign currencies'.

4.5 Off setting

Investments are initially recognised at fair value which, in the case of investments other than held for trading, includes transaction
costs associated with the investments. Transaction costs on investments held for trading are expensed as incurred. Financial assets and financial liabilities are set off and the net amount is reported in the unconsolidated financial statements when
there is a legally enforceable right to set off and the Bank intends to either settle on a net basis, or to realize the assets and to settle
4.3.1.5 Subsequent measurement the liabilities simultaneously.

4.6 Sale under repurchase agreements

4.3.1.6 Held for trading
Securities sold under agreements to repurchase (Repo) at a specified future date are not derecognised from the statement of
financial position as the Bank retains substantially all of the risks and rewards of ownership. The corresponding cash received is
These are measured at subsequent reporting dates at fair value. Gains and losses on re-measurement are included in the profit and recognized in the statement of financial position as an asset with a corresponding obligation to return it, including accrued interest
loss account. within 'Borrowings', reflecting the transaction’s economic substance as a loan to the Bank. The difference between the sale and
repurchase prices is recorded as 'Interest expense' and is accrued over the life of the agreement using the contractual rate. When
4.3.1.7 Held to maturity the counterparty has the right to sell or re-pledge the securities, the Bank reclassifies those securities in its statement of financial
position to indicate that they are pledged as collateral.

These are measured at amortised cost using the effective interest rate method, less any impairment loss recognised to reflect
4.7 Purchase under resale agreements
irrecoverable amounts.
Securities purchased under agreements to resell at a specified future date are not recognised in the statement of financial position.
4.3.1.8 Available for sale The consideration paid, including accrued interest, is recorded in the statement of financial position, within 'Lendings', reflecting the
transaction’s economic substance as a loan by the Bank. The difference between the purchase and resale prices is recorded in
'Interest earned' and is accrued over the life of the agreement using the contractual rate. If securities purchased under an agreement
Quoted securities classified as available for sale investments are measured at subsequent reporting dates at fair value. Any surplus to resell are subsequently sold to third parties, the obligation to return the securities is recorded as a short sale within 'Other
or deficit arising thereon is kept in a separate account shown in the statement of financial position as part of the equity and is taken liabilities' and measured at fair value with any gains or losses included in profit and loss account.
to the profit and loss account when realised upon disposal or when the investment is considered to be impaired.
4.8 Bai Muajjal
Unquoted equity securities are valued at the lower of cost and break-up value. The break-up value of these securities is calculated
with reference to the net assets of the investee company as per the latest available audited financial statements. A decline in the Bai Muajjal transactions represent sales of Sukuks on a deferred payment basis and are shown in lendings to financial institutions
except for transactions undertaken directly with the Government of Pakistan which are disclosed as investments. The difference
carrying value is charged to the profit and loss account. A subsequent increase in the carrying value, upto the cost of the investment,
between the deferred payment amount receivable and the carrying value at the time of sale is accrued and recorded as income over
is credited to the profit and loss account. Investments in other unquoted securities are valued at cost less impairment, if any. the life of the transaction.

4.9 Finance lease receivables

Leases, where the Bank transfers substantially all the risks and rewards incidental to ownership of an asset to the lessee are
classified as finance lease. A receivable is recognised at an amount equal to the present value of the minimum lease payments
including guaranteed residual value, if any. Finance lease receivables are included in advances.

88 United Bank Limited Annual Report 2024 89

Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
For the year ended December 31, 2024 For the year ended December 31, 2024
4.10 Islamic financings and related assets The lease liability is subsequently measured at amortised cost using the effective interest rate method. The lease liability is also
remeasured to reflect any reassessment or lease modification.
Receivables under Murabaha financing represent cost price plus an agreed profit on deferred sale arrangement. Profit could be
recognised on a straight line basis over the period of the instalments. On initial recognition, right-of-use assets are measured at an amount equal to initial lease liability adjusted for any lease payments
made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to be incurred to dismantle
Ijarah financing represents arrangements whereby the Bank (being the owner of assets) transfers its usufruct to its customers for an and remove the underlying asset or to restore the underlying asset or the site on which it is located.
agreed period at an agreed consideration (rentals). Assets leased out under Ijarah are stated at cost less accumulated depreciation
and accumulated impairment losses, if any. These are depreciated over the term of the lease. Ijarah income is recognised on an
accrual basis. The right-of-use asset is subsequently measured at cost model. The right of use asset is depreciated on a straight line method over
the lease term as this method most closely reflects the expected pattern of consumption of future economic benefits. The right-of-
use asset is reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
Diminishing Musharakah is partnership agreement between the Bank and its customer for long term financing of assets. The
receivable is recorded to the extent of Bank's share in the purchase of asset. Income is recognised on accrual basis.
The Bank has elected to apply the practical expedient not to recognise right-of-use assets and lease liabilities for short term leases
Istisna is a sale contract where the Bank places an order to the manufacturer / builders to produce certain assets and the sale is that have a lease term of 12 months or less and leases of low-value assets. The lease payments associated with these leases is
completed upon the delivery of the assets to the ultimate buyer. recognised as an expense on a straight line basis over the lease term.

Running Musharakah facility is to finance the working capital requirement of the customer whereas partnership is based on particular 4.14 Intangible assets
operations of the business.
Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses, if any. The amortisation
4.11 Cash and cash equivalents charge for the year is calculated on a straight line basis after taking into account the residual value, if any. Amortisation on additions
is charged from the month the asset is available for use. No amortisation is charged in the month of disposal.
Cash and cash equivalents for the purpose of the cash flow statement consist of cash and balances with treasury banks and
balances with other banks.
Gains and losses on sale of intangible assets are included in the profit and loss account.
4.12 Property and equipment
4.15 Non-banking assets acquired in satisfaction of claims
Property and equipment, other than land (which is not depreciated) and capital work-in-progress, are stated at cost or revalued
amount less accumulated depreciation and accumulated impairment losses, if any. Land is carried at revalued amount less
Non-banking assets acquired in satisfaction of claims are carried at revalued amounts less accumulated depreciation. These assets
impairment losses while capital work-in-progress is stated at cost less impairment losses. The cost and the accumulated
depreciation of property and equipment of overseas branches include exchange differences arising on currency translation at the
are revalued by professionally qualified valuers with sufficient regularity to ensure that their net carrying value does not differ
year-end rates of exchange. materially from their fair value. A surplus arising on revaluation of property is credited to the 'surplus on revaluation of non-banking
assets' account. A decrease arising on revaluation of non-banking asset is adjusted against the surplus of that asset or, if no surplus
exists, is charged to the profit and loss account as an impairment of the asset. A surplus arising subsequently on an impaired asset
Depreciation is calculated so as to write off the depreciable amount of the assets over their expected useful lives at the rates
is reversed through the profit and loss account up to the extent of the original impairment.
specified in note 10.2 to these unconsolidated financial statements. The depreciation charge for the year is calculated on a straight
line basis after taking into account the residual value, if any. The residual values and useful lives are reviewed and adjusted, if
appropriate, at each statement of financial position date. All direct costs of acquiring title to asset are charged to the profit and loss account. Gains and losses on sale of non-banking assets
are included in the profit and loss account, except that the related surplus on revaluation of non-banking assets (net of deferred tax)
Depreciation on additions is charged from the month the asset is available for use. No depreciation is charged in the month of is transferred directly to unappropriated profit.
disposal.
4.16 Investments in Subsidiaries and Associates
Land and buildings are revalued by independent, professionally qualified valuers with sufficient regularity to ensure that their net
carrying amount does not differ materially from their fair value. An increase arising on revaluation is credited to the surplus on Investments in subsidiaries and associates are valued at cost less accumulated impairment losses, if any.
revaluation of fixed assets account. A decrease arising on revaluation of fixed assets is adjusted against the surplus of that asset or,
if no surplus exists, is charged to the profit and loss account as an impairment of the asset. A surplus arising subsequently on an Gains and losses on disposal of investments in subsidiaries and associates are included in the profit and loss account.
impaired asset is reversed through the profit and loss account up to the extent of the original impairment.
4.17 Impairment of investments in subsidiaries and associates
Surplus on revaluation of fixed assets (net of associated deferred tax) to the extent of the incremental depreciation charged on the
related assets is transferred to unappropriated profit. The Bank considers that a decline in the recoverable value of the investment in a subsidiary or an associate below its cost may be
evidence of impairment. Recoverable value is calculated as the higher of fair value less costs to sell and value in use. An impairment
Gains and losses on sale of fixed assets are included in the profit and loss account, except that the related surplus on revaluation of loss is recognised when the recoverable value falls below the carrying value and is charged to the profit and loss account. A
fixed assets (net of deferred tax) is transferred directly to unappropriated profit. subsequent reversal of an impairment loss, upto the cost of the investment in the subsidiary or the associate, is credited to the profit
and loss account.
Major renewals and improvements that increase the useful life of an asset are capitalized and the assets so replaced, if any, are
retired. Normal repairs and maintenance are charged to the profit and loss account as and when incurred.
4.18 Taxation
4.13 Lease liability and Right-of-use asset
Current
The bank enters into leasing arrangements for its branches, ATMs and warehouses. Rental contracts are typically for a fixed period Provision for current taxation is based on taxable income for the year determined in accordance with the prevailing laws and at the
and may have extension options as described below. Lease terms are negotiated on an individual basis and contain a wide range of prevailing rates for taxation on income earned by the Bank for local as well as overseas operations. The amount of current tax
different terms and conditions. payable is the best estimate of the tax amount expected to be paid that reflects uncertainty related to income taxes, if any. It is
measured using tax rates enacted or substantively enacted at the reporting date.
In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an
extension option or not exercise a termination option. Extension options (or periods after termination options) are only included in the
lease term if the lease is reasonably certain to be extended (or not be terminated).

The lease liability is initially measured at the present value of the lease payments to be made over the lease term, discounted using
the interest rate implicit in the lease, or if that rate cannot be readily determined, the Bank's incremental borrowing rate.

90 United Bank Limited Annual Report 2024 91

Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
For the year ended December 31, 2024 For the year ended December 31, 2024
Deferred 4.20.2 Remeasurement of defined benefit obligations

Deferred tax is recognised using the balance sheet method on all major temporary differences between the amounts attributed to Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in
assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is calculated at the other comprehensive income when they occur with no subsequent recycling through the profit and loss account.
rates that are expected to apply to the period when the differences are expected to reverse, based on tax rates that have been
enacted or substantively enacted at the reporting date. Remeasurement gains and losses pertaining to long term compensated absences are recognised in the profit and loss account
immediately.
Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the
assets can be utilized. 4.21 Revenue recognition

The carrying amount of deferred tax assets is reviewed at each statement of financial position date and reduced to the extent that it Revenue is recognised to the extent that the economic benefits associated with a transaction will flow to the Bank and the revenue
is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be utilized. can be reliably measured. The following recognition criteria must be met before revenue is recognised.

The Bank also recognizes deferred tax asset / liability on the deficit / surplus on revaluation of fixed assets / non-banking assets 4.21.1 Advances and investments
acquired in satisfaction of claims and securities which is adjusted against the related deficit / surplus in accordance with the
requirements of IAS 12, Income Taxes. Mark-up / return / interest on performing advances and investments is recognised on a time proportionate basis over the term of the
advances and investments that takes into account the effective yield of the asset. Where debt securities are purchased at a premium
4.19 Provisions or discount, such premium / discount is amortised through the profit and loss account over the remaining period of maturity of the
debt securities.
Provisions are recognised when the Bank has a present legal or constructive obligation as a result of past events, it is probable that
an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made.
Interest or mark-up recoverable on non-performing advances and investments is recognised on a receipt basis.
Provision for off balance sheet obligations is recognised when intimated and reasonable certainty exists that the Bank will be
required to settle the obligation. The provision is charged to the profit and loss account net of expected recovery and the obligation is 4.21.2 Lease financing
classified under other liabilities.
Income from lease financing is accounted for using the financing method. Under this method, the unearned lease income (defined as
the sum of total lease rentals and estimated residual value less the cost of the leased assets) is deferred and taken to income over
Provisions are reviewed at each statement of financial position date and are adjusted to reflect the current best estimate.
the term of the lease so as to produce a constant periodic rate of return on the outstanding net investment in the lease. Gains or
losses on termination of lease contracts are recognised through the profit and loss account when these are realised. Unrealised
4.20 Staff retirement and other benefits lease income and other fees on classified leases are recognised on a receipt basis.
The Bank operates the following defined benefit plans for its employees:
4.21.3 Dividend income
a) For new employees and for those who opted for the below mentioned conversion option introduced in 2001, the Bank operates:
Dividend income is recognised when the right to receive the dividend is established.
- an approved contributory provident fund (defined contribution plan); and
- an approved gratuity scheme (defined benefit plan). 4.21.4 Fee, brokerage and commission income
b) For employees who have not opted for the conversion option introduced in 2001, the Bank operates:
The Bank earns fee and commission income from a diverse range of financial services it provides to its customers. Fee and
- an approved non-contributory provident fund in lieu of the contributory provident fund; and commission income is recognised at an amount that reflects the consideration to which the Bank expects to be entitled in exchange
- an approved funded pension scheme, introduced in 1975 (defined benefit plan). for providing the services.

In 2001, the Bank modified the pension scheme and introduced a conversion option for employees covered under option (b) above to The Bank recognises fees earned on transaction-based arrangements at a point in time when the Bank has provided the service to
move to option (a). This conversion option ceased on December 31, 2003. the customer. Where the contract requires services to be provided over time, income is recognised on a systematic basis over the
life of the related services. Unearned fee and commission are included under Other Liabilities.
The Bank also operates benevolent fund for all its eligible employees (defined benefit plan).
4.22 Foreign currencies
Annual contributions towards defined benefit plans are made on the basis of actuarial advice using the Projected Unit Credit Method.
4.22.1 Functional and presentation currency

For the defined contribution scheme, the Bank pays contributions to the fund on a periodic basis. The Bank has no further payment Items included in these unconsolidated financial statements are measured at Pakistan Rupees which is the currency of the primary
obligation once the contributions have been paid. The contributions are recognised as an expense when the obligation to make economic environment in which the Bank operates.
payments to the fund has been established. Prepaid contributions are recognised as an asset to the extent that a cash refund or a
reduction in future payments is available.
4.22.2 Foreign currency transactions
4.20.1 Other benefits
Transactions in foreign currencies are translated to rupees at the foreign exchange rates prevailing on the transaction date. Monetary
a) Employees' compensated absences assets and liabilities in foreign currencies are expressed in rupee terms at the rates of exchange prevailing at the statement of
financial position date. Forward foreign exchange contracts and foreign bills purchased are valued in rupees at the forward foreign
The Bank makes provisions for compensated vested and non-vested absences accumulated by its eligible employees on the exchange rates applicable to their respective maturities.
basis of actuarial advice under the Projected Unit Credit Method.
Non-monetary assets and liabilities in foreign currencies are expressed in rupee terms at the rates of exchange prevailing at the date
b) Post-retirement medical benefits (defined benefit scheme) of initial recognition of the non-monetary assets / liabilities.
The Bank provides post-retirement medical benefits to eligible retired employees. Provision is made on the basis of actuarial
4.22.3 Overseas operations
advice under the Projected Unit Credit Method.
The assets and liabilities of foreign operations are translated to rupees at exchange rates prevailing at the statement of financial
position date. The results of foreign operations are translated at the average rates of exchange for the year.

92 United Bank Limited Annual Report 2024 93

Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
For the year ended December 31, 2024 For the year ended December 31, 2024
4.24.2 Geographical segments
4.22.4 Translation gains and losses
The Bank operates in following geographical regions:
Translation gains and losses are taken to the profit and loss account, except those arising on translation of the net investment in
foreign branches which are taken to capital reserves (Exchange Translation Reserve) until the disposal of the net investment, at - Pakistan
which time these are recognised in the profit and loss account. - Middle East
- Export Processing Zones in Karachi and Sialkot.
4.23 Contingencies and commitments
4.25 Dividends and appropriations to reserves
Commitments for outstanding forward foreign exchange contracts are disclosed in these unconsolidated financial statements at
contracted rates. Contingent liabilities / commitments denominated in foreign currencies are expressed in rupee terms at the rates of
Dividends and appropriations to reserves are recorded in the year in which these are approved, except appropriations required by
exchange prevailing at the statement of financial position date.
law which are recorded in the period to which they pertain.

4.26 Acceptances
4.24 Segment reporting
Acceptances comprise undertakings by the Bank to pay bill of exchange drawn on customers. Acceptances are recognised as
A segment is a distinguishable component of the Bank that is engaged either in providing particular products or services (business financial liability in the statement of financial position with a contractual right of reimbursement from the customer as a financial
segment), or in providing products or services within a particular economic environment (geographical segment), and is subject to asset. Therefore, commitments in respect of acceptances have been accounted for as on balance sheet financial assets and
risks and rewards that are different from those of other segments. financial liabilities.

4.24.1 Business segments Note 2024 2023

-------------- (Rupees in '000) --------------
(a) Corporate / Commercial Banking 5. CASH AND BALANCES WITH TREASURY BANKS
Includes project, trade and working capital finance, import and export, factoring, leasing, lending, deposits and guarantees. It
also include services provided in connection with mergers and acquisitions and the underwriting / arrangement of debt and equity In hand
instruments through syndications, Initial Public Offerings and private placements. Local currency 53,188,216 27,876,931
Foreign currencies 8,126,798 13,042,939
(b) Treasury 61,315,014 40,919,870
Includes fixed income, equity, foreign exchange, credit, funding, own position securities, lending and borrowings and derivatives With State Bank of Pakistan in
for hedging and market making. Local currency current accounts 5.1 108,175,484 88,035,634
Foreign currency current accounts 5.2 5,094,782 5,306,080
(c) Branch Banking Foreign currency deposit accounts 5.3 8,205,041 9,473,621
Includes deposits, lending and banking services to private individuals and small businesses including credit cards, branchless 121,475,307 102,815,335
banking and digital banking. With other central banks in
Foreign currency current accounts 5.4 88,215,425 50,093,433
(d) Islamic Banking Foreign currency deposit accounts 5.5 19,326,856 10,684,831
This represents Islamic Banking branches and Islamic banking windows in the conventional branches of the Bank. 107,542,281 60,778,264
With National Bank of Pakistan in
(e) International Branch Operations Local currency current accounts 19,133,450 72,368,067
This represents Bank's operations in overseas locations including one branch each in export processing zones in Karachi and
Sialkot. National Prize Bonds 479,356 448,681

309,945,408 277,330,217
(f) Others
Less: Credit loss allowance held against cash and balances with treasury banks (199,497) -
Others includes functions which cannot be classified in any of the above segments.
Cash and balances with treasury banks - net of credit loss allowance 309,745,911 277,330,217

5.1 This represents current accounts maintained with the SBP under the Cash Reserve Requirement of section 22 of the Banking
Companies Ordinance, 1962.

5.2 These represent foreign currency current accounts maintained under the Cash Reserve Requirement of the SBP.

5.3 This represents account maintained with the SBP to comply with the Special Cash Reserve Requirement. The return on this account
is declared by the SBP on a monthly basis and as at December 31, 2024, it carries mark-up rate at 3.53% (2023: 4.34%) per
annum.

5.4 These represent current accounts maintained with other central banks of the countries in which the Bank operates, to meet the
minimum cash reserves and capital requirements pertaining to the foreign branches of the Bank.

5.5 These represent placements with overseas central banks and carry mark-up at rates ranging from 4.60% to 5.00% (2023: 5.75% to
6.37%) per annum.

5.6 Cash and balances with treasury banks are all classified as Stage 1.

94 United Bank Limited Annual Report 2024 95

Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
For the year ended December 31, 2024
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
For TO
NOTES the
THEyear endedCONDENSED
UNCONSOLIDATED December
INTERIM 31, 2024
FINANCIAL STATEMENTS (UN-AUDITED)
FOR THE YEAR ENDED DECEMBER 31, 2024 FOR THE YEAR ENDED DECEMBER 31, 2024

Note 2024 2023 8. INVESTMENTS 2024 2023

-------------- (Rupees in '000) -------------- Expected
6. BALANCES WITH OTHER BANKS 8.1 Investments by type Cost / Amortised Surplus / Carrying Cost / Provision for Carrying
Note credit loss Surplus / (Deficit)
cost (Deficit) Value Amortised cost diminution Value
allownace
In Pakistan
In deposit accounts 7 7 ------------------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------------------------------
Debt Instruments
Outside Pakistan
In current accounts 47,801,939 23,665,786 FVTPL
In deposit accounts 6.1 12,173,491 7,034,958 Federal Government Securities 22,066,195 - 35,068 22,101,263 - - - -
59,975,430 30,700,744
Held for trading securities
59,975,437 30,700,751 Federal Government Securities - - - - 79,035,823 - (79,074) 78,956,749
Less: Credit loss allowance held against balances with other banks 6.2 (7,191) -
FVOCI
Balances with other banks - net of credit loss allowance 59,968,246 30,700,751 Federal Government securities 5,330,379,611 (1,556,324) 75,878,404 5,404,701,691 - - - -
Non-Government debt securities 462,335 (162,407) - 299,928 - - - -
6.1 These carry mark-up at rates ranging from 4.19% to 4.70% (2023: 4.90% to 5.70%) per annum.
Foreign securities 112,833,367 (15,298) (2,841,124) 109,976,945 - - - -
5,443,675,313 (1,734,029) 73,037,280 5,514,978,564 - - - -
6.2 Balances with other banks are all classified as Stage 1.
Available for sale securities
Note 2024 2023 Federal Government securities - - - - 3,805,610,848 (12,421,632) 6,419,943 3,799,609,159
-------------- (Rupees in '000) -------------- Non-Government debt securities - - - - 2,413,036 (162,334) - 2,250,702
7. LENDINGS TO FINANCIAL INSTITUTIONS Foreign securities - - - - 128,026,463 (23,993) (2,738,281) 125,264,189
- - - - 3,936,050,347 (12,607,959) 3,681,662 3,927,124,050
Musharakah lending 7.2 - 12,500,000 Amortised cost 8.6.4
Repurchase agreement lendings (Reverse Repo) 7.3 & 7.5 2,492,483 21,947,852
Federal Government securities 277,953,188 - - 277,953,188 - - - -
Non-Government debt securities 20,604,187 (1,264,743) - 19,339,444 - - - -
Bai Muajjal receivable with
Foreign securities 25,321,895 (15,335) - 25,306,560 - - - -
Scheduled bank / financial institution 7.4 16,000,000 -
323,879,270 (1,280,078) - 322,599,192 - - - -
18,492,483 34,447,852
Held to maturity securities 8.6.4
Less: Credit loss allowance held against lending to financial institutions - - Federal Government securities - - - - 308,215,895 (4,406,225) - 303,809,670
Lending to financial institutions - net of credit loss allowance 18,492,483 34,447,852 Non-Government debt securities - - - - 22,764,643 (1,293,633) - 21,471,010
Foreign securities - - - - 38,098,926 (541,128) - 37,557,798
7.1 Particulars of lendings to financial institutions
- - - - 369,079,464 (6,240,986) - 362,838,478
Instruments mandatorily classified as FVPL
In local currency 18,492,483 34,447,852
Non-Government debt securities 1,864,933 - - 1,864,933 - - - -
In foreign currency - -
18,492,483 34,447,852
Total Debt Investment 5,791,485,711 (3,014,107) 73,072,348 5,861,543,952 4,384,165,634 (18,848,945) 3,602,588 4,368,919,277

7.2 These represent unsecured lendings carrying mark-up at Nil (2023: 22.05% to 22.50%) per annum.
Equity instruments
7.3 These represent lendings to financial institutions against investment securities. These carry mark-up at 13.89% (2023:22.05% to FVOCI
22.95%) per annum, and are due to mature in January 2025. Ordinary shares
- Listed companies 12,989,295 - 7,463,396 20,452,691 - - - -
7.4 These represent secured lendings against investment securities carrying mark-up at 13.90% (2023: Nil) per annum. - Unlisted companies 1,656,307 - (50,317) 1,605,990 - - - -
14,645,602 - 7,413,079 22,058,681 - - - -

7.5 Securities held as collateral against lendings to financial institutions

Real Estate Investment Trust units 495,545 - 456,325 951,870 - - - -
2024 2023
Further given Further given Available for sale securities
Held by Bank Total Held by Bank Total Ordinary shares
as collateral as collateral
--------------------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------------- - Listed companies - - - - 13,243,966 (6,048,102) 3,570,071 10,765,935
- Unlisted companies - - - - 779,023 (59,019) - 720,004
Market Treasury Bills 2,492,483 - 2,492,483 - - - - - - - 14,022,989 (6,107,121) 3,570,071 11,485,939
Pakistan Investment Bonds - - - 21,947,852 - 21,947,852
Real Estate Investment Trust units - - - - 507,834 - 108,398 616,232
Government of Pakistan Sukuks 16,000,000 - 16,000,000 - - -
Total 18,492,483 - 18,492,483 21,947,852 - 21,947,852
Associates 1,297,485 (1,057,485) - 240,000 1,297,485 (1,057,485) - 240,000
Subsidiaries 8.10 2,100,000 - - 2,100,000 3,955,223 - - 3,955,223
7.6 Lendings to financial institutions are all classified as stage 1.
Total Investments 5,810,024,343 (4,071,592) 80,941,752 5,886,894,503 4,403,949,165 (26,013,551) 7,281,057 4,385,216,671

22

96 United Bank Limited Annual Report 2024 97

23
 Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
ForTO the
NOTES year
AND FORMING PARTended December
OF THE UNCONSOLIDATED 31, 2024
FINANCIAL STATEMENTS For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

2024 2023 2024 2023

8.2.1 Investments given as collateral ------------ (Rupees in '000) ------------
Expected Provision
Cost / Surplus / Cost / Surplus /
Note credit loss Carrying Value for Carrying Value
Amortised cost (Deficit) Amortised cost (Deficit) Federal Government securities
allownace diminution
Market Treasury Bills 285,281,664 1,739,647,706
8.2 Investments by segment ------------------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------------------------------
Pakistan Investment Bonds 4,331,366,718 962,704,865
Federal Government Securities Government of Pakistan Sukuks - -
Market Treasury Bills 399,958,123 - 9,702,416 409,660,539 1,777,448,260 - 4,084,118 1,781,532,378
Pakistan Investment Bonds 8.7 & 8.8 4,897,205,786 - 44,076,922 4,941,282,708 1,904,352,770 - (5,576,146) 1,898,776,624 Foreign securities
Government of Pakistan Sukuks Foreign bonds - sovereign 29,926,938 -
277,677,102 - 21,402,594 299,079,696 448,138,446 (410,122) 7,532,654 455,260,978
Government of Pakistan Eurobonds 5,261,130 (1,556,324) 731,540 4,436,346 57,214,074 (16,417,735) 300,243 41,096,582
4,646,575,320 2,702,352,571
Bai Muajjal with Government of Pakistan 47,618,148 - - 47,618,148 - - - -
Islamic Naya Pakistan Certificates 8.4 2,678,705 - - 2,678,705 5,709,016 - - 5,709,016
8.2.1.1 The market value of securities given as collateral is Rs. 4,691,781 million (2023: Rs. 2,716,080 million).
5,630,398,994 (1,556,324) 75,913,472 5,704,756,142 4,192,862,566 (16,827,857) 6,340,869 4,182,375,578
Ordinary shares
8.3 Particulars of credit loss allowance against debt securities
Listed companies 12,989,295 - 7,463,396 20,452,691 13,243,966 (6,048,102) 3,570,071 10,765,935
8.5.2
Unlisted companies 1,656,307 - (50,317) 1,605,990 779,023 (59,019) - 720,004 2024
14,645,602 - 7,413,079 22,058,681 14,022,989 (6,107,121) 3,570,071 11,485,939 Stage 1 Stage 2 Stage 3 Total
Real Estate Investment Trust units 495,545 - 456,325 951,870 507,834 - 108,398 616,232 ------------------- (Rupees in '000) -------------------
Non-Government Debt Securities 8.3.1 Investments - exposure
Listed companies 2,247,813 (315) - 2,247,498 2,310,437 - 2,310,437
Opening balance 4,317,840,672 65,683,577 641,383 4,384,165,632
Unlisted companies 20,683,642 (1,426,835) - 19,256,807 22,867,242 (1,455,967) - 21,411,275
Exchange adjustments (1,915,863) (780,589) - (2,696,452)
22,931,455 (1,427,150) - 21,504,305 25,177,679 (1,455,967) - 23,721,712
Foreign Securities
New investments - net 4,423,343,475 - - 4,423,343,475
Market Treasury Bills 22,934,112 - 20,253 22,954,365 83,605,493 - 55,839 83,661,332 Investments derecognised or repaid - net (2,956,488,407) (56,815,437) (23,100) (3,013,326,944)
Foreign bonds - sovereign 112,397,524 (29,686) (2,744,533) 109,623,305 79,642,676 (564,103) (2,666,386) 76,412,187 Transfer to stage 1 - - - -
Foreign bonds - others 2,823,021 (947) (116,844) 2,705,230 2,876,608 (1,018) (127,734) 2,747,856 Transfer to stage 2 - - - -
CDC SAARC Fund 605 - - 605 612 - - 612 Transfer to stage 3 - - - -
138,155,262 (30,633) (2,841,124) 135,283,505 166,125,389 (565,121) (2,738,281) 162,821,987 1,466,855,068 (56,815,437) (23,100) 1,410,016,531
Associates
UBL Insurers Limited 240,000 - - 240,000 240,000 - - 240,000 Closing balance 5,782,779,877 8,087,551 618,283 5,791,485,711
Khushhali Microfinance Bank Limited 8.9.1 1,057,485 (1,057,485) - - 1,057,485 (1,057,485) - -
1,297,485 (1,057,485) - 240,000 1,297,485 (1,057,485) - 240,000 2024
Subsidiaries Stage 1 Stage 2 Stage 3 Total
United National Bank Limited (UBL UK) 8.10 - - - - 2,855,223 - - 2,855,223 ------------------- (Rupees in '000) -------------------
UBL Currency Exchange (Private) Limited 2,000,000 - - 2,000,000 1,000,000 - - 1,000,000 8.3.2 Investments - Credit loss allowance
UBL Fund Managers Limited 100,000 - - 100,000 100,000 - - 100,000
2,100,000 - - 2,100,000 3,955,223 - - 3,955,223 Opening balance 47,697 18,159,865 641,383 18,848,945
Impact of ECL recognised on adoption of IFRS 9 7,501 - - 7,501
Total Investments 5,810,024,343 (4,071,592) 80,941,752 5,886,894,503 4,403,949,165 (26,013,551) 7,281,057 4,385,216,671
Exchange adjustments (628) (94,014) - (94,642)

New investments - net - - - -

Investments repaid - net (7,047) (221,180) (23,100) (251,327)
Transfer to stage 1 - - - -
Transfer to stage 2 - - - -
Transfer to stage 3 - - - -
(7,047) (221,180) (23,100) (251,327)
Investments derecognised - (15,474,456) - (15,474,456)

Changes in risk parameters (16,304) (5,610) - (21,914)

Closing balance 31,219 2,364,605 618,283 3,014,107

24
98 United Bank Limited Annual Report 2024 99
Notes to and forming part of the Unconsolidated Financial Statements Notes to FORMING
NOTES TO AND and forming part of theFINANCIAL
PART OF THE UNCONSOLIDATED Unconsolidated
STATEMENTS Financial Statements
FOR THE YEAR ENDED DECEMBER 31, 2024
For the
NOTES TO ANDyear ended
FORMING PART OF December 31, FINANCIAL
THE UNCONSOLIDATED 2024 STATEMENTS For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

8.5 Quality of Securities

2024 2023
8.3.3 Credit loss allowance / provision for diminution in value of Note --------- (Rupees in '000) ---------- Details regarding quality of securities held under "Held to Collect and Sell" model are as follows:
investments
2024 2023
Opening balance 26,013,551 26,823,071 Cost
Exchange adjustments (94,642) 3,003,752 8.5.1 Federal Government Securities - Government guaranteed ---------- (Rupees in '000) ----------
Impact of reclassification on adoption of IFRS 9 (6,107,121) - Market Treasury Bills 395,024,093 1,759,484,348
Impact of ECL recognised on adoption of IFRS 9 7,501 - Pakistan Investment Bonds 4,661,754,267 1,564,416,221
Charge / (reversals) Government of Pakistan Sukuks 265,661,416 435,136,727
Charge for the year 108,170 7,793,597 Islamic Naya Pakistan Certificates 2,678,705 5,709,016
Reversals for the year (381,411) (1,266,052) Government of Pakistan Eurobonds 5,261,130 40,864,536
34 (273,241) 6,527,545 5,330,379,611 3,805,610,848
Derecognition of ECL on disposals (15,474,456) (10,340,817)
Amounts written off - - 2024 2023
Closing balance 4,071,592 26,013,551 8.5.2 Shares and Units Cost
---------- (Rupees in '000) ----------
Shares
8.3.4 Category of classification
Listed Companies
Cement 1,158,240 1,158,240
2024 Chemical - 559,228
Expected Commercial Banks 139,865 518,765
Outstanding credit loss Engineering 311,831 311,831
amount allowance Fertilizer 3,915,270 4,305,054
held Oil & Gas Exploration Companies 1,940,334 2,007,252
------- (Rupees in '000) ------- Oil & Gas Marketing Companies 569,150 569,150
Domestic Power Generation & Distribution 2,382,851 2,382,851
Performing Stage 1 5,644,745,195 589 Technology & Communication 74,930 75,820
Under performing Stage 2 - - Textile Composite 1,953,897 812,848
Non-performing Textile Spinning 395,927 395,927
Substandard - - Miscellaneous 147,000 147,000
Doubtful Stage 3 - - 12,989,295 13,243,966
Loss 618,283 618,283
2024 2023
5,645,363,478 618,872
Cost Breakup value Cost Breakup value
Overseas
--------------------------------------------------- (Rupees in '000) -----------------------------------------------
Performing Stage 1 138,034,682 30,630
Unlisted Companies
Under performing Stage 2 8,087,551 2,364,605
Cinepax Limited 60,122 116,237 60,122 105,437
Non-performing
First Women Bank Limited 21,100 51,903 21,100 71,151
Substandard - -
National Institutional Facilitation -
Doubtful Stage 3 - -
Technologies (Pvt.) Limited (NIFT) 1,527 62,042 1,527 52,914
Loss - -
National Investment Trust Limited (NIT) 100 1,082,220 100 700,276
146,122,233 2,395,235 Pakistan Agricultural Storage & Services -
Total 5,791,485,711 3,014,107 Corporation (PASSCO) 5,500 3,584,912 5,500 3,551,928
Pakistan Mortgage Refinance Company Limited 500,000 1,356,807 500,000 1,105,433
Pakistan Corporate Restructuring Company Limited 63,633 40,338 63,633 38,304
2023 SWIFT (Belgium) 2,091 33,424 2,091 33,186
Non- SME Bank Limited 26,950 - 26,950 -
performing Provision Techlogix International Limited 29,314 193,098 37,406 30,787
investments The Benefit Company BSC 5,908 183,496 5,982 175,500
VIS Credit Information Services 325 253 325 204
Domestic 1Link (Private) Limited 54,287 1,182,173 54,287 733,213
Loss 641,383 641,383 United National Bank Limited 885,450 1,428,747 - -
1,656,307 9,315,650 779,023 6,598,333
Total 641,383 641,383

8.4 This represents investment made for the establishment of the modaraba pools in Islamic Naya Pakistan Certificate Company Limited in
accordance with S.R.O 964 (I) / 2020 dated October 05, 2020.

100 United Bank Limited Annual Report 2024 101

27
Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024
For
NOTESthe year
TO AND ended
FORMING December
PART OF THE 31,
UNCONSOLIDATED 2024STATEMENTS
FINANCIAL For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

8.6.3 Foreign Securities

2024 2023
Cost
---------- (Rupees in '000) ---------- 2024 2023
Units Government Securities Cost Rating Cost Rating
-------------------------------------------------------- (Rupees in '000) -----------------------------------------------
Real Estate Investment Trust units 495,545 507,834
8.5.3 Non Government Debt Securities
Qatar 15,553,091 AA 23,575,387 AA-
Listed
- AA+,AA, AA- - 300,000 Portugal - - 1,242,266 A-
- A+, A, A- 300,000 1,094,987
- Unrated - - Jordan 3,076,474 BB- 3,138,053 BB-
300,000 1,394,987
Bahrain 2,009,244 B+ 2,044,183 B+
2024 2023
Cost Egypt - - 3,343,746 B-
------------- (Rupees in '000) -------------
Unlisted South Africa 2,056,991 BB- 2,087,983 BB-
- AA+,AA, AA- - 720,000 Yemen 1,158,126 Unrated 1,171,873 unrated
- A+, A, A- - 135,714 23,853,926 36,603,491
- Unrated 162,335 162,335
162,335 1,018,049

2024 2023 2024 2023

8.5.4 Foreign Securities Cost Rating Cost Rating Non Government Debt Securities Cost
-------------------------------------------------------- (Rupees in '000) ---------------------------------------------------- ------- (Rupees in '000) -------
Government Securities
Listed
United States of America 13,012,359 AA+ 12,560,460 AA+
Qatar 10,137,061 AA 8,991,022 AA- - BBB+, BBB, BBB- 1,467,364 1,494,823
United Arab Emirates 69,818,075 AA- 95,165,211 AA-
Bahrain 4,658,424 B+ 4,788,810 B+
Jordan 2,991,497 BB- 3,051,057 BB- Others
South Africa 2,056,991 BB- 2,087,983 BB-
Egypt - - 135 B-
Saudi Arabia 8,803,303 A+ - CDC SAARC Fund 605 612
111,477,710 126,644,678

2024 2023 8.6.4 The market value of securities classified as amortised cost as at December 31, 2024, amounted to Rs. 322,113.848 million
Non Government Debt Securities Cost (2023: Rs. 337,640.922 million).
------------- (Rupees in '000) -------------
Listed
- AA - - 8.7 Investments include net securities amounting to Rs. 992,975 million (2023: Rs.1,282,409 million) which are held by the Bank
- BBB+, BBB, BBB- 1,355,657 1,381,785 to comply with the statutory liquidity requirements as set out under Section 29 of the Banking Companies Ordinance, 1962.
-B - -
1,355,657 1,381,785
8.8 Investments include Rs. 67.28 million (2023: Rs. 118.00 million) held by the State Bank of Pakistan as pledge against
8.6 Particulars relating to securities classified Under "Held to Collect" model are as follows: demand loan, TT / DD discounting facilities and foreign exchange exposure limit sanctioned to the Bank and Rs. 5.00 million
8.6.1 Federal Government Securities - Government guaranteed (2023: Rs. 5.00 million) held by the Controller of Military Accounts (CMA) under Regimental Fund Arrangements.

Pakistan Investment Bonds 220,333,931 278,864,638

Government of Pakistan Sukuks 10,001,109 13,001,719
Government of Pakistan Eurobonds - 16,349,538
Bai Muajjal 47,618,148 -
277,953,188 308,215,895
8.6.2 Non Government Debt Securities

Listed
- AA+,AA, AA- 174,755 174,825
- A+ 678,125 740,625
- Unrated - -
852,880 915,450
Unlisted
- AAA 10,689,565 12,740,248
- AA+,AA, AA- 249,350 249,450
- A+, A 650,000 641,379
- BB-,B, B- 360,000 360,000
- CCC+ 2,706,445 2,739,066
- Unrated 5,095,947 5,119,050
19,751,307 21,849,193

102 United Bank Limited 28 Annual Report 2024 103

29
Notes to FORMING
NOTES TO AND and forming
PART OF THE part of the FINANCIAL
UNCONSOLIDATED Unconsolidated
STATEMENTS Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
FOR THE YEAR ENDED DECEMBER 31, 2024
For the year ended December 31, 2024 For the
NOTES TO AND year
FORMING ended
PART OF THEDecember 31, 2024
UNCONSOLIDATED FINANCIAL STATEMENTS
8.9 Summary of financial position and performance of associates and subsidiaries FOR THE YEAR ENDED DECEMBER 31, 2024

2024 9.1 Includes net investment in finance lease as disclosed below:

Country of Profit / (loss) after
Note Holding Assets Liabilities Revenue 2024
Incorporation tax 2023
% ----------------------------------- (Rupees in '000) ------------------------------- Later
Associates Not later More Later than More than
than one Not later than
UBL Insurers Limited Pakistan 30.00% 12,613,753 9,744,275 2,187,466 684,320 than one than five Total one and upto five Total
and upto one year
Khushhali Microfinance Bank Limited 8.9.1 Pakistan 27.82% 107,756,868 126,143,242 26,070,619 (8,908,093) year years five years years
five years
Subsidiaries ------------------------------------------------------------------------------------------------------------------------- (Rupees in '000) ------------------------------------------------------------------------------------------
UBL Fund Managers Limited Pakistan 98.87% 5,298,007 883,648 3,832,225 1,348,298
UBL Currency Exchange (Private) Limited Pakistan 100.00% 2,559,330 595,288 552,488 (20,551) Minimum lease payments 13,261 168,205 - 181,466 5,978 170,679 - 176,657
2023 Financial charges for future periods (953) (38,004) - (38,957) (1,411) (9,810) - (11,221)
Country of Profit / (loss) after
Holding Assets Liabilities Revenue
Incorporation tax Present value of minimum
% ----------------------------------- (Rupees in '000) ------------------------------- lease payments 12,308 130,201 - 142,509 4,567 160,869 - 165,436
Associates
UBL Insurers Limited Pakistan 30.00% 10,658,604 8,372,388 1,993,150 453,995
Khushhali Microfinance Bank Limited Pakistan 27.82% 115,121,536 111,405,418 6,358,050 (5,957,226) 2024 2023
9.2 Particulars of advances (Gross) ------- (Rupees in '000) -------
Subsidiaries
United National Bank Limited (UBL UK) United Kingdom 55.00% 328,789,627 295,742,667 5,216,154 2,923,509 In local currency 1,109,925,640 465,031,632
UBL Fund Managers Limited Pakistan 98.87% 5,178,104 2,112,043 2,643,422 908,591 In foreign currencies 455,201,721 252,036,039
UBL Currency Exchange (Private) Limited Pakistan 100.00% 1,008,134 21,260 - (13,142)
1,565,127,361 717,067,671

8.9.1 This represents the Bank's subscription towards the paid-up capital of Khushhali Microfinance Bank Limited. The Bank has fully 9.3 Advances to Women, Women-owned and Managed Enterprises
impaired these shares.
Women 11,441,631 5,256,350
8.10 The transaction for the sale of 50.1% shares of United National Bank Limited (UNBL UK) was approved by the shareholders’ of United Women-owned and Managed Enterprises 11,364 52,392
Bank Limited (UBL) in 65th Annual General Meeting held on 18 March 2024 against a consideration of GBP 25.495 million. The sale 11,452,995 5,308,742
was concluded during the year after obtaining all the regulatory approvals resulting in a gain on disposal of Rs. 7.083 million recognised
in 'Other Income' in the profit and loss account. The residual investment of 4.9% in UNBL UK was recognized as investment in unlisted 9.3.1 Gross loans disbursed to women, women-owned and managed enterprises amounting to Rs. 8,980.054 million (2023:1,649.816 million)
securities at its fair value of Rs 885.450 million.
9.4 Particulars of credit loss allowance against advances 2024
Stage 1 Stage 2 Stage 3 Total
9. ADVANCES Note 2024 9.4.1 Advances - Exposure --------------------------------- (Rupees in '000) ---------------------------------
Performing Non-performing Total
Opening balance 563,413,657 48,113,494 105,540,520 717,067,671
--------------------------- (Rupees in '000) ---------------------------

Loans, cash credits, running finances, etc. 9.1 1,250,821,132 108,082,351 1,358,903,483 Impact of adoption of IFRS 9 (57,023,856) 52,722,599 48,143 (4,253,114)
Islamic financing and related assets 9.10 149,696,208 260,774 149,956,982
New advances 1,024,071,074 27,778,410 - 1,051,849,484
Bills discounted and purchased 48,618,071 7,648,825 56,266,896
Advances derecognised or repaid (158,910,082) (27,795,479) (5,213,688) (191,919,249)
Advances - gross 1,449,135,411 115,991,950 1,565,127,361
Transfer to stage 1 8,037,446 (8,037,446) - -
Transfer to stage 2 (4,339,486) 5,177,038 (837,552) -
Expected credit loss allowance against advances 9.6
Transfer to stage 3 (921,944) (17,125,631) 18,047,575 -
-Stage 1 (6,009,588) - (6,009,588)
867,937,008 (20,003,108) 11,996,335 859,930,235
-Stage 2 (7,736,178) - (7,736,178)
-Stage 3 - (107,899,651) (107,899,651) Amounts charged off - agriculture financing - - (69,501) (69,501)
(13,745,766) (107,899,651) (121,645,417) Amounts written off / charged off - - (577,830) (577,830)
Other adjustments (5,627,359) 1,001,856 54,112 (4,571,391)
Advances - net of expected credit loss allowance 1,435,389,645 8,092,299 1,443,481,944 Exchange adjustments (826,258) (572,622) (999,829) (2,398,709)
Closing balance 1,367,873,192 81,262,219 115,991,950 1,565,127,361
2023 9.4.2 Advances - Credit loss allowance 2024
Performing Non-performing Total Stage 1 Stage 2 Stage 3 Total
------------- (Rupees in '000) ------------ --------------------------------- (Rupees in '000) ---------------------------------
Opening balance 759,833 10,410,025 92,332,287 103,502,145
Loans, cash credits, running finances, etc. 9.1 553,317,263 97,759,729 651,076,992
Impact of adoption of IFRS 9 4,046,484 2,689,194 1,234,016 7,969,694
Islamic financing and related assets 9.10 47,191,822 222,205 47,414,027
Bills discounted and purchased 11,018,066 7,558,586 18,576,652 New Advances 2,067,736 1,758,867 - 3,826,603
Advances - gross 611,527,151 105,540,520 717,067,671 Advances derecognised or repaid (376,907) (1,687,780) (3,180,881) (5,245,568)
Transfer to stage 1 412,794 (412,794) - -
Provision against advances 9.6 Transfer to stage 2 53,836 173,493 (227,329) -
-Specific - (92,332,287) (92,332,287) Transfer to stage 3 (4,507) (5,834,599) 5,839,106 -
-General (11,169,858) - (11,169,858) 2,152,952 (6,002,813) 2,430,896 (1,418,965)
(11,169,858) (92,332,287) (103,502,145) Amounts charged off - agriculture financing - - (69,501) (69,501)
Advances - net of provision 600,357,293 13,208,233 613,565,526 Amounts written off / charged off - - (577,830) (577,830)
Changes in risk parameters (PDs/LGDs/EADs) (945,706) 179,194 13,439,125 12,672,613
Exchange adjustments (3,975) (137,270) (943,454) (1,084,699)
Other adjustments 597,848 54,112 651,960
Closing balance 6,009,588 7,736,178 107,899,651 121,645,417

104 United Bank Limited

30 Annual Report 2024 105
Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
For the year ended December 31, 2024 For the
NOTES year
TO AND ended
FORMING PART December 31, 2024
OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024
9.5 Advances include Rs.115,991.950 million (2023: Rs. 105,540.520 million) which have been placed under non-performing status as detailed below:
9.6.1 Particulars of credit loss allowance / provision against advances
2024
Category of classification in stage 3 Non- 2024 2023
Credit loss
Performing Stage 1 & 2 Stage 3 Total Specific General Total
allowance
Loans ------------------------------------------------ (Rupees in '000) ------------------------------------------------
---------- (Rupees in '000) ---------
Domestic In local currency 7,940,414 22,254,174 30,194,588 20,103,817 449,481 20,553,298
Other Assets Especially Mentioned* 80,088 47,504 In foreign currencies 5,805,352 85,645,477 91,450,829 72,228,470 10,720,377 82,948,847
Substandard 2,307,470 1,538,389 13,745,766 107,899,651 121,645,417 92,332,287 11,169,858 103,502,145
Doubtful 280,114 135,921
Loss 22,398,233 21,455,978
25,065,905 23,177,792
Overseas 9.6.2 The Bank has availed the benefit of Forced Sale Value (FSV) of certain mortgaged properties held as collateral against non-
Other Assets Especially Mentioned* performing advances as allowed under BSD Circular 1 of 2011. Had the benefit under the said circular not been taken by the
Substandard 78,407 12,297 Bank, the ECL against non-performing advances would have been higher by Rs. Nil (2023: Rs. 44.193 million).
Doubtful 4,305,685 1,568,890
Loss 86,541,953 83,140,672
90,926,045 84,721,859 The Bank has also availed FSV benefit of certain mortgaged properties held as collateral against non-performing advances of
Total 115,991,950 107,899,651 overseas branches in accordance with the applicable regulations in the respective countries where the branches operate. Had
2023 the benefit not been taken by the Bank, the specific provision against non-performing advances would had been higher by Rs.
Non-
1,254.08 million (2023: Rs.6,114.438 million) for the overseas branches.
Performing Provision
Category of Classification Loans
Domestic The FSV benefit availed is not available for the distribution of cash or stock dividend to shareholders.
Other Assets Especially Mentioned * 105,024 3,660
Substandard 2,963,970 729,208 9.7 These represent non-performing advances for agriculture finance which have been classified as loss, are fully provided and
Doubtful 197,690 91,464 are in default for more than 3 years. These non-performing advances have been charged off by extinguishing them against
Loss 21,198,758 20,225,801 the provision held in accordance with the SBP's Prudential Regulations for Agriculture Financing. This charge off does not, in
24,465,442 21,050,133 any way, prejudice the Bank's right of recovery from these customers.
Overseas
Not past due but impaired ** 1,439,842 331,800 Note 2024 2023
Overdue by: 9.8 Particulars of write-offs ------- (Rupees in '000) -------
Upto 90 days 83,720 -
91 to 180 days 237,549 - 9.8.1 Against provisions 9.6 577,830 316,142
181 to 365 days 4,449,553 1,685,624 Directly charged to profit and loss account 34 54,951 55,861
˃ 365 days 74,864,414 69,264,730 632,781 372,003
81,075,078 71,282,154
9.8.2 Write-offs of Rs. 500,000 and above
Total 105,540,520 92,332,287
- Domestic 9.9 562,619 220,828
* The Other Assets Especially Mentioned category pertains to agriculture, housing and small enterprises financing.
** Not past due but impaired category mainly represents restructured exposure.
- Overseas 22,871 113,117
585,490 333,945
9.6 Particulars of credit loss allowance against advances
Write-offs of below Rs. 500,000 47,291 38,058
2024
Note Stage 1 Stage 2 Stage 3 Total 632,781 372,003
---------------------------------------------------------- (Rupees in '000) ------------------------------------------------------ 9.9 Details of loan write-offs of Rs. 500,000 and above
Opening balance 759,833 10,410,025 92,332,287 103,502,145
Exchange adjustments (3,975) (137,270) (943,454) (1,084,699) In terms of sub-section (3) of Section 33A of the Banking Companies Ordinance, 1962, the statement in respect of written off
Impact of Adoption of IFRS 9 4,046,484 2,689,194 1,234,016 7,969,694
loans or any other financial relief of five hundred thousand rupees or above allowed to a person during the year ended
Charge for the year 1,384,897 3,362,228 13,911,386 18,658,511 December 31, 2024, is given in annexure I to the unconsolidated financial statements (except in case of overseas branches
Reversals for the period / year (639,774) (3,111,947) (3,653,142) (7,404,863)
Net charge against advances 34 745,123 250,281 10,258,244 11,253,648
which is restricted by overseas regulatory authorities).

Amounts charged off - agriculture financing 9.7 - - (69,501) (69,501) 9.10 Information related to Islamic financing and related assets is given in annexure II and is an integral part of these
Other adjustments - 597,848 54,112 651,960 unconsolidated financial statements.
Amounts written off 9.8 - - (577,830) (577,830)
Transfers (out) / in - net 462,123 (6,073,900) 5,611,777 - Note 2024 2023
Closing balance 6,009,588 7,736,178 107,899,651 121,645,417
10. PROPERTY AND EQUIPMENT ------- (Rupees in '000) -------
Particulars of provision against advances 2023
Specific General Total Capital work-in-progress 10.1 3,294,327 1,322,980
-------------------- (Rupees in '000) -----------------
Property and equipment 10.2 81,952,404 63,764,663
Opening balance 81,783,522 10,146,800 91,930,322
85,246,731 65,087,643
Exchange adjustments 14,650,438 2,289,735 16,940,173
10.1 Capital work-in-progress
Charge for the year 894,440 100,364 994,804
Reversals for the year (4,526,473) (1,367,041) (5,893,514) Civil works 2,141,941 734,319
Net reversal against advances 34 (3,632,033) (1,266,677) (4,898,710) Equipment 897,707 588,661
Amounts charged off - Advances to suppliers 254,679 -
agriculture financing 9.7 (153,498) - (153,498) 3,294,327 1,322,980
Amounts written off 9.8 (316,142) - (316,142)
Transfers (out) / in - net - - -
Closing balance 92,332,287 11,169,858 103,502,145

106 United Bank Limited Annual Report 2024 107

Notes to and forming part of the Unconsolidated Financial Statements
. Notes to and forming part of the Unconsolidated Financial Statements
For the
NOTES year
TO AND ended
FORMING PART December 31, 2024
OF THE UNCONSOLIDATED FINANCIAL STATEMENTS For
NOTES the
TO ANDyear ended
FORMING December
PART OF THE UNCONSOLIDATED31, 2024
FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 FOR THE YEAR ENDED DECEMBER 31, 2024

10.2 Property and Equipment 10.3 Revaluation of properties

The properties of the Bank has been revalued by independent professional valuers as at December 31, 2021. The revaluation was carried out by
2024
M/s. Engineering Pakistan International (Private) Limited, M/s. M. J. Surveyors (Private) Limited, and M/s. Perfect Consultants on the basis of
Buildings Buildings Electrical,
Leasehold Furniture professional assessment of present market values which resulted in an increase in surplus by Rs. 16,411.878 million. The total surplus against
Freehold Leasehold on on office and
Improve- and Vehicles Total
land land Freehold Leasehold computer revaluation of Property and equipment as at December 31, 2024, amounts to Rs. 39,672.178 million.
ments fixtures
land land equipment
Had there been no revaluation, the carrying amount of the revalued assets at December 31, would have been as follows:
----------------------------------------------------------------------------------------- (Rupees in '000) -----------------------------------------------------------------------------------------
At January 01, 2024 2024 2023
Cost / Revalued amount 9,543,663 30,613,443 3,509,505 7,924,682 8,506,897 2,908,480 25,592,795 869,643 89,469,108
------- (Rupees in '000) -----
Accumulated depreciation - - (254,970) (619,404) (5,373,567) (1,954,832) (17,202,349) (299,323) (25,704,445) Freehold land 4,797,261 782,581
Net book value 9,543,663 30,613,443 3,254,535 7,305,278 3,133,330 953,648 8,390,446 570,320 63,764,663 Leasehold land 9,725,242 3,455,656
Buildings on freehold land 2,012,509 1,968,241
Buildings on leasehold land 4,714,851 4,688,484
Year ended December 31, 2024 21,249,863 10,894,962
Opening net book value 9,543,663 30,613,443 3,254,535 7,305,278 3,133,330 953,648 8,390,446 570,320 63,764,663 10.4 127,026 127,026
Carrying amount of temporarily idle property of the Bank
Additions 4,014,680 6,269,586 120,617 253,677 2,930,093 1,553,115 7,390,016 1,483,851 24,015,635
Movement in surplus on assets revalued 10.5 The cost of fully depreciated assets that are still in Bank's use is as follows:
during the year - - - - - - - - - Furniture and fixtures 960,138 770,828
Disposals - - - - (11,649) (3,549) (5,310) (3,395) (23,903) Electrical, office and computer equipment 9,238,506 9,658,438
Depreciation charge - - (135,107) (309,567) (961,855) (339,791) (3,766,298) (270,720) (5,783,338) Vehicles 31,433 65,384
Leasehold improvements 2,571,650 2,021,575
Exchange rate adjustments - 454 2,497 (11,715) (8,882) 3,407 (6,411) (3) (20,653)
12,801,727 12,516,225
Other adjustments / transfers - - - - - - - - -
10.6 Details of disposal of operating property and equipment to related parties
Closing net book value 13,558,343 36,883,483 3,242,542 7,237,673 5,081,037 2,166,830 12,002,443 1,780,053 81,952,404

The information relating to operating fixed assets disposed off during the year to related parties is given in annexure III and is an integral part of these
At December 31, 2024 unconsolidated financial statements.
Cost / Revalued amount 13,558,343 36,883,483 3,630,122 8,177,977 11,398,479 4,344,494 30,983,650 2,318,931 111,295,479
11. RIGHT-OF-USE ASSETS 2024 2023
Accumulated depreciation - - (387,580) (940,304) (6,317,442) (2,177,664) (18,981,207) (538,878) (29,343,075)
Net book value 13,558,343 36,883,483 3,242,542 7,237,673 5,081,037 2,166,830 12,002,443 1,780,053 81,952,404 Buidlings Others Total Buidlings Others Total
- - - - - - - - - --------------------------------------------------- (Rupees in '000) ------------------------------------------------------------
Rate of depreciation (%) - - 2.5-5 2.5-5 12.5 12.5-25 5 - 33.33 20 At January 1,
Cost 13,834,046 182,562 14,016,608 12,400,452 69,255 12,469,707
Accumulated Depreciation (5,452,800) (66,779) (5,519,579) (4,640,808) (21,348) (4,662,156)
Net Carrying amount at January 1, 8,381,246 115,783 8,497,029 7,759,644 47,907 7,807,551
2023
Buildings Buildings Electrical, Additions during the year 4,651,429 19,761 4,671,190 3,172,770 124,327 3,297,097
Leasehold Furniture
Freehold Leasehold on on office and Deletions during the year (837,213) (11,130) (848,343) (350,965) (1,448) (352,413)
Improve- and Vehicles Total
land land Freehold Leasehold computer Depreciation charge for the year (2,361,515) (62,266) (2,423,781) (2,231,324) (55,004) (2,286,328)
ments fixtures
land land equipment Exchange rate adjustments (11) - (11) 31,122 - 31,122
----------------------------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------------------- Net Carrying amount 9,833,936 62,148 9,896,084 8,381,247 115,782 8,497,029
At January 01, 2023 Note 2024 2023
Cost / Revalued amount 9,543,663 32,058,110 3,369,459 7,525,987 7,143,430 2,544,283 21,073,572 724,541 83,983,045 12. INTANGIBLE ASSETS ------- (Rupees in '000) -----
Accumulated depreciation - - (122,233) (308,273) (4,506,361) (1,728,023) (15,072,812) (278,244) (22,015,946) Capital work-in-progress - Computer software 167,129 173,916
Net book value 9,543,663 32,058,110 3,247,226 7,217,714 2,637,069 816,260 6,000,760 446,297 61,967,099 Intangible assets 12.1 2,314,346 2,284,918
2,481,475 2,458,834
Year ended December 31, 2023 12.1 Intangible assets
Opening net book value 9,543,663 32,058,110 3,247,226 7,217,714 2,637,069 816,260 6,000,760 446,297 61,967,099 Computer Software
At January 1,
Additions - - 140,046 451,294 1,250,782 377,735 5,074,103 264,795 7,558,755
Cost 10,055,184 8,639,910
Movement in surplus on assets revalued Accumulated amortisation (7,770,266) (6,618,401)
during the year - - - - - - - - - Net book value 2,284,918 2,021,509
Disposals - (1,444,780) - (61,126) (1,454) (735) (4,620) (17,016) (1,529,731) Year ended December 31,
Depreciation charge - - (132,737) (305,024) (805,527) (244,623) (2,748,097) (123,756) (4,359,764) Opening net book value 2,284,918 2,021,509
Exchange rate adjustments - 113 - 2,420 52,460 5,011 68,300 - 128,304 Additions - directly purchased 1,057,491 1,238,496
Other adjustments / transfers - - - - - - - - - Disposals (3,451) (3,330)
Amortisation charge 31 (1,007,926) (997,628)
Closing net book value 9,543,663 30,613,443 3,254,535 7,305,278 3,133,330 953,648 8,390,446 570,320 63,764,663
Exchange rate adjustments (16,686) 25,871
Other adjustments - -
At December 31, 2023 Closing net book value 2,314,346 2,284,918
Cost / Revalued amount 9,543,663 30,613,443 3,509,505 7,924,682 8,506,897 2,908,480 25,592,795 869,643 89,469,108
At December 31,
Accumulated depreciation - - (254,970) (619,404) (5,373,567) (1,954,832) (17,202,349) (299,323) (25,704,445) Cost 11,047,630 10,055,184
Net book value 9,543,663 30,613,443 3,254,535 7,305,278 3,133,330 953,648 8,390,446 570,320 63,764,663 Accumulated amortisation (8,733,284) (7,770,266)
- - - - - - - - - Net book value 2,314,346 2,284,918
Rate of depreciation (%) - - 2.5-5 2.5-5 12.5 12.5-25 5 - 33.33 20
Rate of amortisation (%) 10 - 25 10 - 25
Useful life (in years) 4 - 10 4 - 10

108 United Bank Limited Annual Report 2024 109

Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
For TO
NOTES the
ANDyear
FORMINGended December
PART OF THE UNCONSOLIDATED31, 2024
FINANCIAL STATEMENTS For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

12.2 The cost of fully amortised intangible assets that are still in the Bank's use amounted to Rs. 5,050.919 million (2023: Rs. 4,410.885 million). 14.1 The Income Tax returns of the Bank have been filed up to the tax year 2024 (accounting year ended December 31, 2023) and were deemed to be
assessed under section 120 of the Income Tax Ordinance, 2001 (Ordinance).

13. DEFERRED TAX (LIABILITIES) / ASSETS Note 2024 The income tax authorities have issued amended assessment orders for the tax years 2003 to 2024, and created additional tax demands (including
At January Recognised disallowances of provisions made prior to Seventh Schedule) of Rs.16,123 million (2023: Rs.14,124 million) . The Bank has filed appeals before the
Recognised in At December various appellate forums against these amendments. Where the appellate authorities have allowed relief on certain issues, the assessing authorities
01, 2024 -as in profit and
OCI 31, 2024 have filed appeals before higher appellate forums. Where the appellate authorities have not allowed relief the Bank has filed appeals before higher
restated loss
------------------------------------------------- (Rupees in '000) ------------------------------------------------- appellate forums. The management of the Bank is confident that the appeals will be decided in favor of the Bank.
Deductible temporary differences on
- Credit loss allowance against advances and off 13.1 5,367,816 1,884,723 - 7,252,539
balance sheet obligations The tax returns for Azad Kashmir (AK) and Gilgit Baltistan (GB) branches have been filed upto the tax year 2024 (accounting year ended December
- Surplus on revaluation of investments (3,606,464) - (41,621,002) (45,227,466) 31, 2023) under the provisions of section 120(1) read with section 114 of the Ordinance and in compliance with the terms of the agreement between
- Post retirement employee benefits (841,433) (11,084) (4,525,623) (5,378,140) banks and the Azad Kashmir Council in May 2005. The returns filed are considered as deemed assessment orders under the law.
- Workers' Welfare Fund 4,406,522 2,231,923 - 6,638,445
- Others (64,971) - 1,290 (63,681)
5,261,470 4,105,562 (46,145,335) (36,778,303) The tax authorities have also carried out monitoring for Federal Excise Duty, Sales tax and withholding taxes covering period from year ended 2005
Taxable temporary differences on: to 2019. Consequently various addbacks and demands were raised creating a total demand of Rs. 2,632 million (2023: Rs. 2,632 million). The Bank
- Surplus on revaluation of property and equipment / non-banking assets (1,610,164) 77,788 312,406 (1,219,970) has filed appeals against all such demands and is confident that these would be decided in the favor of the Bank.
- Accelerated tax depreciation (884,730) (76,058) - (960,788)
(2,494,894) 1,730 312,406 (2,180,758) The tax returns for UAE and Qatar branches have been filed upto the year ended December 31, 2023 and Yemen branches have been filed upto
the year ended December 31, 2019 under the provisions of the laws prevailing in the respective countries, and are deemed as assessed unless
2,766,576 4,107,292 (45,832,929) (38,959,061) opened for reassessment.

14.2 Unrealised mark-up held in suspense amounting to Rs. 46,732.081 million (2023: Rs. 39,977.644 million) against non-performing overseas advances
13.1 The deductible temporary difference against Credit loss allowance against advances and off balance sheet obligations includes a deferred tax
has been netted off.
impact of Rs. 4,688.465 million arising on adoption of IFRS- 9 as disclosed in note 2.6.1.3.
2023 2024 2023
Recognised ------- (Rupees in '000) -------
At January Recognised in At December
in profit and
01, 2023 OCI 31, 2023
loss 14.3 Market value of Non-banking assets acquired in satisfaction of claims 42,075 42,075
------------------------------------------------- (Rupees in '000) -------------------------------------------------
Deductible temporary differences on: 14.3.1 Non-banking assets acquired in satisfaction of claims have been revalued by independent professional valuer as at December 31, 2024. The
- Provision against advances and off balance sheet obligations 2,628,666 (1,949,315) - 679,351 revaluation was carried out by M/s. F.K.S Building Services on the basis of an assessment of present market values and resulted in an increase in
- Surplus on revaluation of investments 15,600,599 - (19,207,063) (3,606,464) surplus of Rs. 2.387 million.
- Post retirement employee benefits 58,193 105,934 (1,005,560) (841,433)
- Workers' Welfare Fund 3,036,553 1,369,969 - 4,406,522
- Others (68,995) 97,999 (93,975) (64,971) Note 2024 2023
21,255,016 (375,413) (20,306,598) 573,005 14.3.2 Non-banking assets acquired in satisfaction of claims ------- (Rupees in '000) -------
Taxable Temporary Differences on:
- Surplus on revaluation of property and equipment / non-banking assets (1,715,201) 79,667 25,370 (1,610,164) Opening balance 42,075 40,800
- Accelerated tax depreciation (665,047) (219,683) - (884,730) Additions - -
(2,380,248) (140,016) 25,370 (2,494,894) Revaluation during the year 2,387 -
Impairment reversal 839 4,287
18,874,768 (515,429) (20,281,228) (1,921,889) Disposals 14.3.3 - -
Depreciation 31 (3,226) (3,012)
Closing balance 42,075 42,075
Note 2024 2023
14. OTHER ASSETS ------- (Rupees in '000) -------
14.4 Expected credit loss allowance / Provision held against other assets
Income / mark-up accrued in local currency 161,322,103 121,606,612
Income / mark-up accrued in foreign currencies 14.2 3,617,197 3,056,696 Advances and other receivables 1,094,643 675,495
Advance taxation - net of provision for taxation 14.1 1,913,753 - Receivable against fraud & forgery and looted notes 463,765 475,390
Receivable from staff retirement fund 39.4.1 13,006,849 4,593,952 1,558,408 1,150,885
Receivable from other banks against telegraphic transfers and demand drafts 2,097,214 38,339 14.4.1 Movement in expected credit loss allowance / Provision held against other assets
Unrealised gain on forward foreign exchange contracts 1,102,125 4,234,338
Rebate receivable - net 9,500,919 1,868,330 Opening balance 1,150,885 1,244,972
Unrealised gain on derivative financial instruments 25.2 1,262,202 32,379 Exchange adjustments (5,319) 83,333
Suspense accounts 51,321 22,467 Charge / (reversals)
Stationery and stamps on hand 599,150 593,636 Charge for the year 595,026 97,737
Non-banking assets acquired in satisfaction of claims 14.3 39,688 42,075 Reversals for the year (118,774) (126,753)
Advances, deposits, advance rent and other prepayments 13,146,683 2,045,543 34 476,252 (29,016)
Acceptances 21 38,205,805 17,584,022 Transfers out - net (62,852) -
Commission receivable - Bancassurance & Branchless Banking 719,773 688,884 Amounts written off (558) (148,404)
Receivable against fraud & forgery and looted notes 463,765 475,390 Closing balance 1,558,408 1,150,885
Others 1,432,231 1,961,201
248,480,778 158,843,864
Expected credit loss allowance / provision held against other assets 14.4 (1,558,408) (1,150,885)
Other assets - net of expected credit loss allowance / provision 246,922,370 157,692,979
Surplus on revaluation of non-banking assets acquired in
satisfaction of claims 23.2 2,387 -
Other assets - Total 246,924,757 157,692,979

110 United Bank Limited Annual Report 2024 111

 Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024 For the year ended December 31, 2024
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024

15. CONTINGENT ASSETS

17.2 This facility is secured against a demand promissory note executed in favour of the State Bank of Pakistan. The Bank has entered into an agreement
with the SBP for extending export finance to customers. These borrowings are repayable within six months, latest by June 2025. These carry mark-
There were no contingent assets as at December 31, 2024 (2023: Nil).
up at rates ranging from 1.00% to 15.50% (2023: 1.00% to 18.00%) per annum.

Note 2024 2023

------- (Rupees in '000) ------- 17.3 This facility is secured against a demand promissory note executed in favour of the State Bank of Pakistan. These borrowings have been obtained
from the SBP under a scheme to finance modernization of Small and Medium Enterprises by providing financing facilities for setting up of new units,
16. BILLS PAYABLE purchase of new plant and machinery for Balancing, Modernization and Replacement (BMR) of existing units and financing for import / local purchase
of new generators upto a maximum capacity of 500 KVA and offering a SME Asaan Finance (SAAF) scheme to fulfill the financing requirements of
In Pakistan 42,994,426 19,850,218 SMEs. These borrowings are repayable latest by June 2034 and carry mark-up at rates ranging from 2.00% to 3.00% (2023: 2.00% to 3.00%) per
annum.
Outside Pakistan 1,227,392 1,801,566
44,221,818 21,651,784 17.4 This facility is secured against a demand promissory note executed in favour of the State Bank of Pakistan. These borrowings have been obtained
from the SBP for providing financing facilities to exporters for adoption of new technologies and modernization of their plant and machinery. These
17. BORROWINGS borrowings are repayable latest by December 2032. These carry mark-up at rates ranging from 2.00% to 12.30% (2023: 2.00% to 10.00%) per
annum.
Secured
Borrowings from the SBP under:
17.5 This facility is
is secured
secured against
againstaademand
demandpromissory
promissorynote
noteexecuted
executedininfavour
favourofof
the State
the Bank
State of of
Bank Pakistan. In order
Pakistan. Thesetoborrowings
dampen effects
have of COVID-19,
been obtained
Export refinance scheme 17.2 31,367,936 37,076,201 from the SBP for providing financing facilities to address challenges of energy shortage and climate change through promotion of renewable energy.
These borrowings are repayable latest by June 2036. These carry mark-up at rates ranging from 2.00% to 4.80% (2023: 2.00% to 3.00%) per
Refinance facility for modernization of SME 17.3 2,119,689 1,353,958
annum.
Long term financing facility 17.4 10,373,465 13,991,026
Renewable energy scheme 17.5 1,339,755 873,755 17.6 This facility is secured against a demand promissory note executed in favour of the State Bank of Pakistan. These borrowings have been obtained
from the SBP under a scheme to provide concessionary refinance for setting up of new industrial units in the backdrop of challenges being faced by
Temporary economic refinance facility 17.6 15,009,764 16,886,679
industries post pandemic scenario. These carry mark-up at rates ranging from 1.00% to 2.80% (2023: 1.00%) per annum and are due to mature
Refinance facility for combating COVID-19 17.7 110,693 332,674 latest by April 2033.

Refinance for women entrepreneurs 17.8 45,295 61,200

17.7 This facility is secured against a demand promissory note executed in favour of the State Bank of Pakistan. These borrowings have been obtained
Financing facility for storage of agriculture products 17.9 20,625 34,375 from the SBP under a scheme to provide the emergency refinance facility to hospitals & medical centre to develop capacity for the treatment of
Repurchase agreement borrowings 17.10 4,532,326,857 2,717,697,641 COVID-19 patients. These carry mark-up ranging from 0.00% to 1.00% (2023: 0.00%) per annum and are due to mature latest by May 2027.

4,592,714,079 2,788,307,509

Repurchase agreement borrowings 17.11 17.8 This facility is secured against a demand promissory note executed in favour of the State Bank of Pakistan. These borrowings have been obtained
157,965,709 15,966,300
from the SBP under a scheme to provide refinance for women entrepreneurs in the underserved areas of the country. These carry mark-up at 0.00%
4,750,679,788 2,804,273,809
(2023: 0.00%) per annum and are due to mature latest by March 2029.
Unsecured
Call borrowings 17.12 103,908,861 10,603,000 17.9 This facility is secured against a demand promissory note executed in favour of the State Bank of Pakistan. These borrowings have been obtained
Overdrawn nostro accounts 784,867 593,745 from the SBP under a scheme to provide refinance for storage of agricultural products in rural areas. These carry mark-up at 2.00% (2023: 2.00%)
per annum and are due to mature latest by March 2026.
104,693,728 11,196,745
17.10 This represents repurchase agreement borrowing from SBP at rates ranging from 13.04% to 13.07% (2023: 22.04% to 22.06%) per annum having
4,855,373,516 2,815,470,554 maturity upto January 2025. The market value of securities given as collateral against these borrowings is given in note 8.2.1.

2024 2023
17.1 Particulars of borrowings with respect to currencies ------- (Rupees in '000) ------- 17.11 These repurchase agreement borrowings from other banks are secured against Pakistan Investment Bonds and Market Treasury Bills and 'Foreign
bonds - sovereign' and carry mark-up at rates ranging from 5.23% to 13.05% (2023: 21.90% to 22.05%) per annum. These borrowings are repayable
In local currency 4,826,733,738 2,814,876,809 latest by April 2025. The market value of securities given as collateral against these borrowings is given in note 8.2.1.

In foreign currencies 28,639,778 593,745

4,855,373,516 2,815,470,554 17.12 These are unsecured borrowings carrying mark-up at 12.05% to 15.90% (2023: 20.75% to 22.00%) per annum, and are repayable latest by March
2025.

112 United Bank Limited Annual Report 2024 113

 Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
ForTOthe
NOTES year PART
AND FORMING ended DecemberFINANCIAL
OF THE UNCONSOLIDATED 31, 2024
STATEMENTS For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

18. DEPOSITS AND OTHER ACCOUNTS Note 2024 2023

21. OTHER LIABILITIES ------- (Rupees in '000) -------
2024 2023
In Local In Foreign In Local In Foreign
Currency Currencies
Total
Currency Currencies
Total Mark-up / return / interest payable in local currency 55,728,483 47,156,831
---------------------------------------------------------------------------------
Note (Rupees in '000) --------------------------------------------------------------------------------- Mark-up / return / interest payable in foreign currencies 1,192,511 1,501,633
Customers
Accrued expenses 17,598,319 7,192,275
Current deposits 1,061,667,711 438,673,584 1,500,341,295 832,767,622 248,746,308 1,081,513,930
Savings deposits 745,150,912 48,987,572 794,138,484 698,079,461 55,703,568 753,783,029
Branch adjustment account 153,603 749,289
Term deposits 74,795,514 90,103,254 164,898,768 158,820,636 108,618,487 267,439,123 Deferred income 21.4 2,532,247 1,332,699
Others 50,177,905 6,621,539 56,799,444 28,498,719 6,969,636 35,468,355 Current taxation (provisions less payments) 14.1 - 7,015,440
1,931,792,042 584,385,949 2,516,177,991 1,718,166,438 420,037,999 2,138,204,437
Unearned commission and income on bills discounted 3,100,180 357,949
Financial Institutions
Current deposits 18,273,598 6,784,813 25,058,411 24,795,264 6,771,975 31,567,239
Credit loss allowance against off-balance sheet obligations 21.1 3,385,916 1,056,385
Savings deposits 95,621,869 93,460 95,715,329 174,456,017 94,660 174,550,677 Unrealised loss on forward foreign exchange contracts 1,324,301 2,735,338
Term deposits 131,850 3,127,908 3,259,758 1,925,450 4,293,020 6,218,470 Unrealised loss on derivative financial instruments 25.2 5,708 5,762
114,027,317 10,006,181 * 124,033,498 201,176,731 11,159,655 212,336,386
Deferred liabilities 21.2 4,652,052 4,365,167
18.2 2,045,819,359 594,392,130 2,640,211,489 1,919,343,169 431,197,654 2,350,540,823
Workers' Welfare Fund payable 32 12,766,241 8,992,902
2024 2023 Liabilities against card settlement 74,372 148,039
18.1 Composition of deposits ------------ (Rupees in '000) --------- Dividends payable 372,343 370,889
- Individuals 1,751,566,545 1,479,570,147 Unclaimed dividends 393,372 356,426
- Government (Federal and Provincial) 116,543,627 172,559,993 Acceptances 14 38,205,805 17,584,022
- Public Sector Entities 62,786,663 85,654,478
Charity fund balance 17,237 21,399
- Banking Companies 6,112,347 6,965,818
- Non-Banking Financial Institutions 117,921,151 205,370,568 Levies and taxes payable 888,448 9,169,996
- Private Sector 585,281,156 400,419,819 Others 3,744,064 2,459,613
2,640,211,489 2,350,540,823
146,135,202 112,572,054
18.2 This includes deposits eligible to be covered under insurance arrangements in accordance with DPC Circular No. 04 dated June 22, 2018, amounting
to Rs. 1,637,394.911 million (2023: Rs. 1,376,823.088 million).

19. LEASE LIABILITIES Note 2024 2023 Note 2024 2023

--------- (Rupees in '000) ---------- ------- (Rupees in '000) -------
Opening balance 10,339,867 9,418,000 21.1 Credit loss allowance against off-balance sheet obligations
Addition during the period / year 4,645,024 3,297,097
Lease payments including interest (3,501,433) (3,202,250)
Opening balance 1,056,385 882,445
Interest expense 27 1,469,697 1,217,778
Termination/modification (944,022) (390,758) Exchange adjustments (11,779) 203,244
Exchange adjustments (336) - Impact of adoption of IFRS 9 1,037,902 -
Closing balance 12,008,797 10,339,867 Charge / (reversal)
Contactual maturity of lease laibilities Charge for the year 1,308,168 4,367
Short-term lease liabilities - within one year 331,744 302,536 Reversals for the year (4,760) (33,671)
Long-term lease liabilities 34 1,303,408 (29,304)
- 1 to 5 years 4,086,832 3,737,790
- 5 to 10 years 7,086,958 5,863,221 Closing balance 3,385,916 1,056,385
- More than 10 years 503,263 436,320
11,677,053 10,037,331
Note 2024 2023
Total lease liabilities 12,008,797 10,339,867
------- (Rupees in '000) -------
20. SUBORDINATED DEBT 21.2 Deferred liabilities
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 Provision for post-retirement medical benefits 39.4.1 2,921,465 2,590,351
State Bank of Pakistan (SBP) under BPRD Circular No. 6 dated August 15, 2013. Provision for compensated absences 554,514 779,284
End of service benefits
Salient features of the Additional Tier 1 issue are as follows:
-Overseas branches 675,476 648,827
Issue Size Rs. 10,000 million
-Outsourced services 500,597 346,705
Issue Date January 29, 2019
Tenor Perpetual (i.e. no fixed or final redemption date) 4,652,052 4,365,167
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 Profit / 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 Date subject to
Call option
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 fully compliant with
Lock-in clause 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
Loss absorbency clause permanently written off (partially or in full) pursuant to the loss absorbency clause as stipulated in the
“Instructions for Basel III Implementation in Pakistan” issued vide BPRD Circular No. 6 dated August 15, 2013. 41

114 United Bank Limited Annual Report 2024 115

Notes to and forming part of the Unconsolidated Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
Notes to and forming part of the Unconsolidated Financial Statements
For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024 For the year ended December 31, 2024
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024
Note 2024
21.3 The total cash outflow for leases during the year was Rs. 3,501.422 million (2022: Rs. 3,202.250 million).
Rupees in '000
23. SURPLUS ON REVALUATION OF ASSETS - NET
21.4 This includes deferred income of IFRS 15 "Revenue from Contracts with Customers" on account of fee of debit and credit
(Deficit) / Surplus arising on revaluation of:
cards, guarantee commission and locker rent.
- Securities measured at FVOCI - Debt 8.1 73,037,280
- Securities measured at FVOCI - Equity 8.1 7,869,404
22. SHARE CAPITAL - Property and Equipment 23.1 39,672,178
- Non-banking assets acquired in satisfaction of claims 23.2 2,387
120,581,249
22.1 Authorised Capital Deferred tax on (deficit) / surplus on revaluation of:
- Securities measured at FVOCI - Debt 37,979,386
2024 2023 2024 2023 - Securities measured at FVOCI - Equity 4,092,088
- Property and Equipment 23.1 1,218,729
(Number of shares) ------- (Rupees in '000) ------- - Non-banking assets acquired in satisfaction of claims 23.2 1,241
43,291,444
77,289,805
2,000,000,000 2,000,000,000 Ordinary shares of Rs. 10 each 20,000,000 20,000,000
2023
Rupees in '000
22.2 Issued, subscribed and paid-up capital (Deficit) / Surplus arising on revaluation of:
- Available for sale securities-Debt 8.1 3,681,662
2024 2023 2024 2023 - Available for sale securities-Equity 8.1 3,678,469
(Number of shares) ------- (Rupees in '000) ------- - Property and Equipment 23.1 39,821,957
- Non-banking assets acquired in satisfaction of claims 23.2 -
Fully paid-up ordinary shares of Rs. 10 each
47,182,088
518,000,000 518,000,000 Issued for cash 5,180,000 5,180,000
Deferred tax on (deficit) / surplus on revaluation of:
706,179,687 706,179,687 Issued as bonus shares 7,061,797 7,061,797 - Available for sale securities-Debt 1,804,014
1,224,179,687 1,224,179,687 12,241,797 12,241,797 - Available for sale securities-Equity 1,802,450
- Property and Equipment 23.1 1,610,164
- Non-banking assets acquired in satisfaction of claims 23.2 -
22.3 In 2007, the Bank was admitted to the official list of the UK Listing Authority and to the London Stock Exchange Professional 5,216,628
Securities Market for trading of Global Depository Receipts (GDRs), each representing four ordinary shares issued by the 41,965,460
Bank. The GDRs constitute an offering in the United States only to qualified institutional buyers in reliance on Rule 144A 2024 2023
under the U.S Securities Act of 1933 and an offering outside the United States in reliance on Regulation S. ------- (Rupees in '000) -------
23.1 Surplus on revaluation of Property and Equipment
Holders of GDRs are entitled, subject to the provisions of the depository agreement, to receive dividends, if any, and rank Surplus on revaluation of property and equipment as at January 01, 39,821,957 41,481,000
pari passu with other equity shareholders in respect of such entitlement. However, the holders of GDRs have no voting rights Recognised during the year - -
or other direct rights of shareholders with respect to the ordinary shares underlying such GDRs. Subject to the terms and Realised on disposal during the year - (1,499,603)
restrictions set out in the offering circular dated June 25, 2007, the deposited ordinary shares in respect of which the GDRs Other adjustments 5,779 -
Exchange adjustments (187) 6,710
were issued may be withdrawn by the GDR holders from the depository facility. Upon withdrawal, the holders will rank pari
Transferred to unappropriated profit in respect of incremental
passu with other ordinary shareholders in respect of voting powers. As at December 31, 2024, 242,278 (2023: 242,278)
depreciation - net of deferred tax (77,583) (86,483)
GDRs, representing 969,112 (2023: 969,112) shares are in issue. Related deferred tax liability on incremental depreciation (77,788) (79,667)
Surplus on revaluation of property and equipment as at December 31, 39,672,178 39,821,957
22.4 Major shareholders (holding more than 5% of total paid-up capital) Less: Related deferred tax liability on
- Revaluation as at January 01, 1,610,164 1,715,201
- Revaluation recognised during the year - -
2024 2023 - Surplus realised on disposal of property and equipment during the year - (25,370)
Number of Percentage of Number of Percentage of - Other adjustments (313,647) -
Name of shareholder shares held shareholding shares held shareholding - Exchange adjustments -
- Incremental depreciation charged during the year (77,788) (79,667)
- Revaluation as at December 31, 1,218,729 1,610,164
Bestway International Holdings Limited 631,728,895 51.60% 631,728,895 51.60%
38,453,449 38,211,793
Bestway Cement Limited 118,693,799 9.70% 97,885,442 8.00%
23.2 Surplus on revaluation of non-banking assets
Surplus on revaluation of non-banking assets as at January 01, - -
Revaluation of non-banking assets during the year 2,387 -
Other adjustments - -
Realised on disposal during the year - -
Surplus on revaluation of non-banking assets as at December 31, 2,387 -
Less: Related deferred tax liability on
- Revaluation as at January 01, - -
- Revaluation of non-banking assets during the year 1,241 -
- Surplus realised on disposal of non-banking assets during the year - -
- Other adjustments - -
42
- Revaluation as at December 31, 1,241 -
1,146 -

116 United Bank Limited Annual Report 2024 117

Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024
For the
NOTES year
TO AND ended
FORMING December
PART OF 31, 2024
THE UNCONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

Note 2024 2023 Note 2024 2023

------- (Rupees in '000) ------- 24.2.4 Commitments in respect of derivatives ------- (Rupees in '000) -------
24. CONTINGENCIES AND COMMITMENTS
FX options
Guarantees 24.1 352,581,311 286,344,622 Purchase 25.1 - 183,034
Commitments 24.2 1,433,032,657 1,012,745,024 Sale 25.1 - 183,034
Other contingent liabilities 24.3 15,960,716 16,116,861 - 366,068
1,801,574,684 1,315,206,507
24.2.5 Commitments in respect of forward lending
24.1 Guarantees:
Undrawn formal standby facilities, credit lines and
Financial guarantees 124,354,428 124,944,607 other commitments to lend 24.2.5.1 73,281,452 84,953,615
Performance guarantees 221,439,705 154,072,480 Others 94,906,417 59,624,251
Other guarantees 6,787,178 7,327,535 168,187,869 144,577,866
352,581,311 286,344,622

24.2 Commitments: 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.
Documentary credits and short-term trade-related transactions Note 2024 2023
- letters of credit 354,707,969 303,953,368 ------- (Rupees in '000) -------
24.2.6 Commitments in respect of operating leases
Commitments in respect of:
- forward foreign exchange contracts 24.2.2 582,473,911 540,001,109 Not later than one year 167,593 66,511
- forward government securities transactions 24.2.3 319,286,690 19,956,300 Later than one year and not later than five years 4,845 -
- derivatives 24.2.4 - 366,068 Later than five years - -
- forward lending 24.2.5 168,187,869 144,577,866 172,438 66,511
- operating leases 24.2.6 172,438 66,511
1,070,120,908 704,967,854 24.3 Other contingencies
Commitments for acquisition of:
- property and equipment 6,691,082 2,998,928 24.3.1 Claims against the Bank not acknowledged as debts 24.3.2 15,960,716 16,116,861
- intangible assets 1,512,698 824,874
8,203,780 3,823,802 These mainly represent counter claims filed by the borrowers for restricting the Bank from disposal of assets (such as
mortgaged / pledged assets kept as security).
1,433,032,657 1,012,745,024

24.2.1 Commitments to extend credit Based on legal advice and / or internal assessments, management is confident that the matters will be decided in the Bank's
favour and the possibility of any outcome against the Bank is remote and accordingly no provision has been made in these
The Bank makes commitments to extend credit in the normal course of its business but these being revocable commitments unconsolidated financial statements.
do not attract any significant penalty or expense if the facility is unilaterally withdrawn.
24.3.2 This includes penalties amounting to Rs.4.089 million (2023: Rs.4,089 million) were levied by the FE Adjudication Court of the
Note 2024 2023 State Bank of Pakistan relating to alleged contraventions of the requirements of foreign exchange regulations with respect to
------- (Rupees in '000) ------- issuance and certification of E-Forms by the Bank to certain customers (exporters) who failed to submit the export documents
24.2.2 Commitments in respect of forward foreign 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
exchange contracts
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
Purchase 302,218,129 278,930,255 loss on this account.
Sale 280,255,782 261,070,854
582,473,911 540,001,109 24.3.3 For contingencies relating to taxation, refer note 14.1.

24.2.3 Commitments in respect of forward government 25. DERIVATIVE INSTRUMENTS

securities transactions
Derivatives are a type of financial contract, the value of which is determined by reference to one or more underlying assets or
Purchase 25.1 296,701,690 16,956,300 indices. The major categories of such contracts include forwards, futures, swaps and options. Derivatives also include
Sale 25.1 22,585,000 3,000,000 structured financial products that have one or more of the characteristics of forwards, futures, swaps and options.
319,286,690 19,956,300
The Bank, as an Authorised Derivative Dealer (ADD), is an active participant in the Pakistan derivatives market and offers a
wide variety of derivatives products covering both hedging and market making to satisfy customers’ needs. Where required,
specific approval is sought from the SBP for each transaction.

The Risk management policy related to derivatives is discussed in note 47.7

118 United Bank Limited Annual Report 2024 119

45
44
Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
For
NOTESthe year
TO AND ended
FORMING December
PART OF 31, 2024
THE UNCONSOLIDATED FINANCIAL STATEMENTS For the
FOR THE year
YEAR ended
ENDED December
DECEMBER 31, 2024 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

25.1 Product analysis 25.2 Maturity analysis of derivatives

2024
2024
Forward purchase Forward sale contracts
No. of Notional Mark to Market
Interest rate swaps FX options contracts of Government of Government Total Remaining Maturity
Counterparties
Securities Securities contracts principal Negative Positive Net
------------------------------------- (Rupees in '000) ----------------------------------
Mark to
Mark to Mark to Mark to Mark to
Notional Notional Notional Notional market Notional Upto 1 month 22 319,286,690 (5,708) 1,262,202 1,256,494
market market market market
principal principal principal principal (loss) principal 1 to 3 months - - - - -
gain gain gain (loss) /gain
/gain
3 to 6 months - - - - -
-------------------------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------------------- 6 months to 1 year - - - - -
With banks for 1 to 2 years - - - - -
Hedging - - - - - - - - - - 2 to 3 years - - - - -
Market making - - - - - - - - - - 3 to 5 years - - - - -
- - - - - - - - - -
5 to 10 years - - - - -
With FIs other than Banks for
Above 10 years - - - - -
Hedging - - - - - - - - - -
22 319,286,690 (5,708) 1,262,202 1,256,494
Market making - - - - - - 2,585,000 (3,085) 2,585,000 (3,085)
- - - - - - 2,585,000 (3,085) 2,585,000 (3,085)
With other entities for 2023
Hedging - - - - - - - - - - No. of Notional Mark to Market
Remaining Maturity
Market making - - - - 296,701,690 1,258,709 20,000,000 870 316,701,690 1,259,579 contracts principal Negative Positive Net
- - - - 296,701,690 1,258,709 20,000,000 870 316,701,690 1,259,579 ------------------------------------- (Rupees in '000) ----------------------------------
Total
Hedging - - - - - - - - - -
Upto 1 month 10 3,248,298 - 297 297
Market making - - - - 296,701,690 1,258,709 22,585,000 (2,215) 319,286,690 1,256,494 1 to 3 months 7 17,074,070 (5,762) 32,082 26,320
- - - - 296,701,690 1,258,709 22,585,000 (2,215) 319,286,690 1,256,494
3 to 6 months - - - -
6 months to 1 year - - - - -
2023
1 to 2 years - - - - -
Forward purchase Forward sale contracts 2 to 3 years - - - - -
Counterparties
Interest rate swaps FX options contracts of government of government Total 3 to 5 years - - - - -
securities securities
5 to 10 years - - - - -
Above 10 years - - - - -
Mark to Mark to Mark to Mark to 17 20,322,368 (5,762) 32,379 26,617
Notional Notional Notional Notional Notional Mark to
market market market market
principal principal principal principal principal market gain
gain gain gain gain
2024 2023
-------------------------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------------------- ------- (Rupees in '000) -------
With banks for 26. MARK-UP / RETURN / INTEREST EARNED
Hedging - - 183,034 - - - - - 183,034 -
Market making - - - - - - - - - -
On:
- - 183,034 - - - - - 183,034 -
Loans and advances 113,169,381 112,895,028
With FIs other than Banks for
Hedging
Investments 961,285,297 392,463,446
- - - - - - - - - -
Market making - - - - - - 3,000,000 297 3,000,000 297
Lendings to financial institutions 3,271,180 10,935,014
- - - - - - 3,000,000 297 3,000,000 297 Balances with banks 6,856,999 5,080,938
With other entities for 1,084,582,857 521,374,426
Hedging - - - - - - - - - - 27. MARK-UP / RETURN / INTEREST EXPENSED
Market making - - 183,034 - 16,956,300 26,320 - - 17,139,334 26,320
- - 183,034 - 16,956,300 26,320 - - 17,139,334 26,320
On:
Total
Deposits 202,416,226 171,098,809
Hedging - - 183,034 - - - - - 183,034 -
Borrowings 701,158,547 200,874,728
Market making - - 183,034 - 16,956,300 26,320 3,000,000 297 20,139,334 26,617
- - 366,068 - 16,956,300 26,320 3,000,000 297 20,322,368 26,617
Subordinated debt 2,130,979 2,236,433
Cost of foreign currency swaps against foreign currency deposits / borrowings 3,992,583 3,062,556
Lease liability against right-of-use assets 1,469,697 1,217,778
911,168,032 378,490,304

47

120 United Bank Limited Annual Report 2024 121

46
Notes to and forming part of the Unconsolidated Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS Notes to and forming part of the Unconsolidated Financial Statements
FOR THE YEAR ENDED DECEMBER 31, 2024
For the year ended December 31, 2024 For the
NOTES year
TO AND ended
FORMING PARTDecember 31, 2024
OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024
Note 2024 2023
Note 2024 2023
------- (Rupees in '000) -------
------- (Rupees in '000) -------
28. FEE AND COMMISSION INCOME 31. OPERATING EXPENSES

Branch banking customer fees 1,958,183 2,621,641 31.1

Total compensation expense 37,769,981 23,961,511
Consumer finance related fees 1,303,431 1,375,056
Card related fees (debit and credit cards) 3,815,903 3,127,264 Property expense
Investment banking fees 277,908 318,860 Rent and taxes 31.5 1,861,782 1,244,223
Financial institution rebate / commission 762,725 580,938 Insurance 300,831 272,818
Corporate service charges / facility fee 1,394,957 864,275 Utilities cost 3,466,609 2,751,981
Commission on trade 3,084,229 2,282,755 Security (including guards) 1,894,223 1,465,669
Commission on guarantees 1,402,824 827,236 Repair and maintenance (including janitorial charges) 516,546 463,353
Commission on cash management 1,138,065 1,141,040 Depreciation on owned property and equipment 10.2 1,406,529 1,243,288
Commission on remittances including home remittances - net 2,123,851 2,874,755 Depreciation on right-of-use assets 11 2,423,781 2,286,328
Commission on bancassurance 1,156,957 1,092,163 Depreciation on non-banking assets acquired in satisfaction of claims 14.3.2 3,226 3,012
Rent on lockers 225,953 221,130 Others 41,935 47,972
Others 265,368 199,869 11,915,462 9,778,644
18,910,354 17,526,982 Information technology expenses
Software maintenance 3,769,362 2,995,493
29. GAIN ON SECURITIES - NET Hardware maintenance 552,685 540,653
Depreciation 10.2 1,881,892 1,387,249
Realised 29.1 42,557,633 444,894 Amortisation 12.1 1,007,926 997,628
Unrealised - Measured at FVTPL 8.1 35,068 (79,074) Network charges 1,080,775 1,036,719
42,592,701 365,820 Consultancy charges 504,872 305,965
8,797,512 7,263,707
29.1 Realised gain / (loss) on: Other operating expenses
Legal and professional charges 768,130 1,573,663
Commission paid to branchless banking agents 345,593 316,786
Federal Government securities 37,624,519 668,223
Commission paid to sales force 5,055,630 2,020,315
Shares 244,402 613,854
Outsourced service costs 2,729,108 1,927,209
Foreign securities 4,642,824 (1,188,818)
Travelling and conveyance 287,365 288,426
Other Securities 45,888 351,635
Clearing charges 362,669 282,571
42,557,633 444,894
Depreciation 10.2 2,494,917 1,729,227
Depreciation on Islamic financing against leased assets 79,527 135,236
30. OTHER INCOME
Training and development 206,308 149,504
Charges recovered 440,601 542,456 Postage and courier charges 504,982 364,494
Rent on properties 107,475 85,022 Communication 291,881 245,042
Gain on sale of Property and equipment - net 232,084 487,628 Stationery and printing 2,194,702 1,544,682
Gain on sale of subsidiary 7,083,501 - Marketing, advertisement and publicity 4,325,076 1,109,573
Donations 31.3 205,000 62,820
Gain on sale of Ijarah assets - net 1,016 2,068
Auditors' remuneration 31.4 151,330 131,484
Loss on trading liabilities - net (16,549) (20,670)
7,848,128 1,096,504 Insurance 136,483 135,825
Deposit protection premium expense 2,202,917 1,879,217
Cash transportation and sorting charges 1,265,657 1,100,954
Entertainment 444,437 283,262
Vehicle expenses 612,002 271,382
Subscription 58,866 85,360
Office running expenses 425,014 296,414
Banking service charges 7,332,055 5,185,267
Repairs and maintenance 2,536,221 1,573,811
Cartage, freight and conveyance 87,850 70,026
Miscellaneous expenses 1,198,184 539,263
36,301,904 23,301,813
94,784,859 64,305,675
48

122 United Bank Limited Annual Report 2024 123

49
Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024
For
NOTESthe year
TO AND ended
FORMING December
PART OF 31, 2024
THE UNCONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

Note 2024 2023 31.3 Details of donations 2024 2023

------- (Rupees in '000) ------- ------------- (Rupees in '000) -------------
31.1 Total compensation expense
Indus Hospital 50,000 9,600
Non- Executive Directors' fees 41.2 117,870 102,700
Shaukat Khanum Memorial Cancer Hospital 50,000 -
Shariah Board's fees and allowances 41.3 12,973 12,641
Dr. Ruth K.M. Pfau Civil Hospital 10,000 10,000
Managerial Remuneration
i) Fixed 18,098,343 12,600,297 Saylani Welfare International Trust 10,000 10,000
ii) Variable - Cash Bonus 8,598,022 2,051,183 Kiran Foundation 10,000 2,186
Charge for defined benefit plan 71,967 559,077 Layton Rahmatullah Benevolent Trust 10,000 2,139
Contribution to defined contribution plan 657,313 523,293
Alkhidmat Foundation 10,000 -
Rent & house maintenance 4,278,660 3,327,300
Namal Education Foundation 10,000 -
Utilities 2,292,133 1,785,438
Medical 1,548,302 1,217,935 Cancer Foundation Hospital / Roche Pakistan 10,000 -
Conveyance 1,791,428 1,333,741 Patients Aid Foundation 8,900 5,370
Group assurance premium 127,495 110,849 The Hunar Foundation 5,000 -
Sub-total 37,594,506 23,624,454
Afzaal Memorial Thalassemia Foundation 5,000 -
Sign-on bonus 44,700 20,000
Family Educational Services Foundation 3,600 -
Severance allowance 130,775 317,057
Grand Total 37,769,981 23,961,511 SOS Children's Village 3,000 2,000
National Institute of Child Health through OAKS 3,000 -
Number of person
Education Trust Nasra Schools 2,500 -
Awards 21 1 Marie Adelaide Leprosy Center 2,000 -
Severance allowance 13 119
Developments in Literacy (DIL) 1,000 -

31.2 Total outsourced activities is Rs. 3,803.008 million (2023: Rs. 2,739.767 million). This includes outsourced service costs of Karachi Down Syndrome Program 1,000 -
Rs.2,729.108 million (2023: Rs. 1,927.209 million), disclosed as seperate line item in note 31. Out of total outsource cost, Rs. Habib University - 9,950
3,521.182 million (2023: Rs. 2,415.248 million) pertains to the payment to companies incorporated in Pakistan and Rs. Institute of Business Administration - 7,387
281.826 million (2023: Rs. 324.518 million) pertains to payment to companies incorporated outside Pakistan.Total cost of
Sindh Institute of Urology & Transplantation (SIUT) - 2,188
outsourced activities for the year given to related parties is Nil (2023: Nil).
Million Smiles Foundation - 2,000
The material outsourcing arrangements along with their nature of services are as follows: Donations individually not exceeding Rs. 0.5 million - -

Name of service provider Type of service 2024 2023 205,000 62,820

------- (Rupees in '000) -------
31.4 Auditors' remuneration
TCS (Private) Limited Statement of account printing
and dispatching 131,610 123,303
Audit fee 19,440 15,660
Paradise Press (Private) Limited Cheque book printing services 235,483 104,031
Fee for other statutory certifications 20,520 23,145
APEX Printry (Private) Limited Cheque book printing services 145,096 136,385
Printlink Cheque book printing services 103,540 123,586 Fee for audit of foreign branches 84,875 80,310
ASC First Solution (Private) Limited Storage and digital archiving services 6,491 6,349 Special certifications and sundry advisory services 17,280 3,240
Raaziq International Storage and digital archiving services 56,054 50,958 Out of pocket expenses 9,215 9,129
Phoenix Armour (Pvt) Limited Cash Replenishment - 20,922
151,330 131,484
Askari Guards (Pvt) Limited Cash Replenishment 47,215 33,694
Security Organizing Services Cash Replenishment 22,256 -
31.5 This includes expense in respect of short term leases and low value assets not included in lease liabilities amounting to Rs.
Qadri Enterprises Key Punch 24,950 21,305
24.769 million (2023: Rs. 52.349 million) and Rs. 0.001 million (2023: Rs. 0.001 million) respectively.
CMS Company Cash Management Services 224,050 91,364
Transguard Group Cash Management Services 23,144 30,697
Back Office FZ LLC Record Management 27,894 50,158
Infofort Record Management 9,948 10,183
Electronic Document Center Printing Services 7,450 3,218
National Printing Press Printing Services 8,719 6,405
1,073,900 812,558

124 United Bank Limited Annual Report 2024 125

51
Notes to and forming part of the Unconsolidated Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
Notes to and forming part of the Unconsolidated Financial Statements
FOR THE YEAR ENDED DECEMBER 31, 2024
For the year ended December 31, 2024 For
NOTESthe year
TO AND ended
FORMING PART December 31, 2024
OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024
32. WORKERS' WELFARE FUND
37.1 Reconciliation of movement of liabilities to cash flows arising from financing activities
The provision has been made for Provincial Workers’ Welfare Fund based on profit for the year. The chargeability of WWF
has been challenged before the Court and the matter is still pending. 2024 2023

Lease liability Lease liability

Note 2024 2023 against right-
Dividends Unappropriated
against right-
Dividends Unappropriate
33. OTHER CHARGES ------------- (Rupees in '000) ------------- payable profit payable d profit
of-use assets of-use assets

Penalties imposed by the SBP 43,527 240,111 ------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------
Penalties imposed by other regulatory bodies of overseas branches 31,743 215
75,270 240,326 Balance as at January 01, 10,339,867 727,315 90,492,296 9,418,000 8,547,730 91,438,152
34. CREDIT LOSS ALLOWANCE & WRITE OFFS - NET
Changes from financing cash flows
Credit loss allowance/ Reversal of provision against loans and advances 9.6 11,253,648 (4,898,710) Payment of lease liability (3,501,422) - - (3,202,250) - -
Credit loss allowance/ Provision for dimunition in value of investments 8.3.3 (273,241) 6,527,545 against right-of-use assets
Bad debts written off directly 9.8 54,951 55,861 Dividend paid - (53,825,508) - - (59,235,963) -
Credit loss allowance/ Provision against other assets - net 14.4.1 476,252 (29,016) Total changes from financing cash flows (3,501,422) (53,825,508) - (3,202,250) (59,235,963) -
Credit loss allowance/ Provision against off-balance sheet obligations - net 21.1 1,303,408 (29,304)
Recoveries against written off / charged off bad debts (422,754) (477,345) Other Changes
Credit loss allowance / provision against cash and balances with treasury banks 199,497 - - Liability related
Other provisions / write-offs 160,014 149,432 Cash dividend - 53,863,908 (53,863,908) - 51,415,548 (51,415,548)
12,751,775 1,298,463 Interest expense on lease liability
35. TAXATION against right-of-use assets 1,469,697 - - 1,217,778 - -
Non-cash based 3,700,655 - - 2,906,339 - -
Current 85,411,894 52,424,946 Total other changes 5,170,352 53,863,908 (53,863,908) 4,124,117 51,415,548 (51,415,548)
Prior years (11,640,488) 1,997,286
Deferred (4,107,292) 515,429 - Equity related - - 75,327,430 - - 50,469,692
69,664,114 54,937,661
35.1 Relationship between tax expense and accounting profit Balance as at December 31, 12,008,797 765,715 111,955,818 10,339,867 727,315 90,492,296

Accounting profit for the year 150,191,648 108,118,074

38. STAFF STRENGTH

Tax on income @ 44% (2023: 39%) 66,084,325 42,166,049
2024 2023
Super tax @ 10% (2023: 10%) 15,019,165 10,811,807
------------------------------------------------------------
Note (Number of employees) -----------------------------------------------------
Prior year charge (11,640,488) 1,997,286
Domestic Overseas Total Domestic Overseas Total
Tax effect of permanent differences 40,646 117,760 Permanent 17,508 337 17,845 13,427 208 13,635
Others 160,466 (155,241) On contract 1,677 6 1,683 57 5 62
Tax charge 69,664,114 54,937,661 Bank's own staff strength 19,185 343 19,528 13,484 213 13,697
Outsourced 38.1 226 20 246 1,263 13 1,276
36. EARNINGS PER SHARE
Total 19,411 363 19,774 14,747 226 14,973
Profit after taxation for the year 80,527,534 53,180,413

------- (Number of shares) ------- 38.1 This excludes employees of outsourced services companies assigned to the Bank to perform services of security guards,
admin and janitorial staff.
Weighted average number of ordinary shares 1,224,179,687 1,224,179,687
39. DEFINED BENEFIT PLANS
---------- (Rupees) ----------

Basic and diluted earnings per share 65.78 43.44 39.1 General description

There were no convertible dilutive potential ordinary shares outstanding as at December 31, 2024 and 2023. The Bank operates the following schemes:

Note 2024 2023 39.1.1 Pension Fund

37. CASH AND CASH EQUIVALENTS ------- (Rupees in '000) -------
The Bank operates a funded pension scheme established in 1975. The Pension Scheme was introduced on 1st January
Cash and balances with treasury banks 5 309,745,911 277,330,217 1975 for Clerical and Non-Clerical employees and on the 1st May 1977 for Officers. Those in service at these dates were
Balances with other banks 6 59,968,246 30,700,751 given an option to join the Pension Scheme or stay in the Bank's old gratuity scheme.
369,714,157 308,030,968

126 United Bank Limited Annual Report 2024 127

52
Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
For the
NOTES year
TO AND ended
FORMING PARTDecember 31, 2024
OF THE UNCONSOLIDATED FINANCIAL STATEMENTS NOTES
For TO AND
the FORMING
year endedPARTDecember
OF THE UNCONSOLIDATED
31, 2024 FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 FOR THE YEAR ENDED DECEMBER 31, 2024

39.1.2 Gratuity scheme 39.4 Pension, gratuity, benevolent fund schemes and other benefits

The Bank also operates a funded gratuity scheme for new employees and for those employees who have not opted for the 39.4.1 The fair value of plan assets and the present value of defined benefit obligations of these schemes as at December 31,
pension scheme. 2024 are as follows:
2024
39.1.3 Benevolent fund scheme Post -
Pension Gratuity Benevolent retirement
The Bank also operates a funded benevolent fund scheme which covers all regular employees of the Bank who joined the fund fund fund medical
Bank pre-privatization. Under this scheme, a fixed monthly subscription is made by employees by way of a salary deduction.
benefit
Employees covered under this scheme, are entitled to receive benevolent grants on death, disability, retirement and other
contingencies as monthly grant payment or one-time payment subject to certain conditions as specified in the rules of the ------------------------------------------------------------------------
Note (Rupees in '000) ----------------------------------------
fund.
Present value of defined benefit obligations (8,553,357) (1,982,123) (159,458) (2,921,465)
Fair value of plan assets 20,860,138 2,409,681 431,968 -
39.1.4 Post retirement medical benefits
Receivable / (payable) 14 & 21.2 12,306,781 427,558 272,510 (2,921,465)
The Bank also provides a non-funded post retirement medical benefits to eligible retired employees. The post-retirement
2023
medical scheme cover all regular employees of the Bank who joined the Bank pre-privatization.
Post -
Pension Gratuity Benevolent retirement
39.1.5 Compensated absences
fund fund fund medical
The Bank maintains a non-funded scheme for compensated absences. benefit
------------------------------------------------------------------------ (Rupees in '000) ----------------------------------------
39.1.6 Other schemes Present value of defined benefit obligations (7,486,939) (1,614,165) (193,311) (2,590,351)
Fair value of plan assets 11,929,445 1,652,156 306,766 -
Employee benefit schemes offered by the Bank’s overseas branches are governed by the laws of the respective countries in
Receivable / (payable) 4,442,506 37,991 113,455 (2,590,351)
which the branches operate.
39.5 Movement in the present value of defined benefit obligations
39.2 Number of Employees under the scheme 2024
Post -
The number of employees covered under the following defined benefit schemes are:
Pension Gratuity Benevolent retirement
2024 2023
fund fund fund medical
---------- (Number) ----------
benefit
- Pension fund 371 447 ------------------------------------------------------------------------
Note (Rupees in '000) ----------------------------------------
- Gratuity fund 17,128 12,982
Obligations at the beginning of the year 7,486,939 1,614,165 193,311 2,590,351
- Post-retirement medical benefit scheme 490 589
Current service cost 7,256 256,074 1,823 288
- Benevolent fund 552 667
Interest cost 1,016,269 256,359 26,791 389,632
- Employee compensated absences 567 667
Benefits paid by the Bank (931,396) (236,894) (30,728) (156,606)
In addition to above active employees, pension fund, benevolent fund and post-retirement medical benefit schemes include Return allocated to other funds 39.8.1 73,510 - - -
5,961 (2023: 6,799), 1,163 (2023: 1,583) and 7,787 (2023: 7,688) members respectively who have retired or whose widows Re-measurement (gains) / losses 900,779 92,419 (31,739) 97,800
and other beneficiaries are receiving the benefits. Obligations at the end of the year 8,553,357 1,982,123 159,458 2,921,465

39.3 Principal actuarial assumptions 2023

Post -
The actuarial valuations were carried out as at December 31, 2024, using Projected Unit Credit Method. The following Pension Gratuity Benevolent retirement
significant assumptions were used for the valuation: fund fund fund medical
benefit
2024 2023 ------------------------------------------------------------------------ (Rupees in '000) ----------------------------------------
---------- Per annum ----------
Obligations at the beginning of the year 7,986,943 1,386,100 235,203 2,628,679
Discount rate 12.25% 15.50% Current service cost 24,202 221,414 2,445 383
Expected rate of salary increase 10.25% 13.50% Interest cost 1,003,809 205,138 30,665 370,420
Expected rate of increase in pension 5.00% 5.00% Benefits paid by the Bank (984,419) (263,320) (46,028) (134,437)
Expected rate of increase in medical benefit 6.25% 9.50% Return allocated to other funds 39.8.1 58,355 - - -
Expected rate of return on plan assets 12.25% 15.50% Re-measurement (gains) / losses (601,951) 64,833 (28,974) (274,694)
Obligations at the end of the year 7,486,939 1,614,165 193,311 2,590,351

55

128 United Bank Limited Annual Report 2024 129

Notes to and forming part of the Unconsolidated Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS Notes to and forming part of the Unconsolidated Financial Statements
FOR THE YEAR ENDED DECEMBER 31, 2024 NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2024 For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

39.6 Movement in fair value of plan assets 39.8 Charge for defined benefit plans

39.8.1 Cost recognised in profit and loss 2024

2024 2023
Post -
Pension Gratuity Benevolent retirement
Pension Gratuity Benevolent Pension Gratuity Benevolent fund fund fund medical
fund fund fund fund fund fund benefit
------------------------------------------------------------------------
Note (Rupees in '000) -----------------------------------------
------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------
Current service cost 7,256 256,074 1,823 288
Past service cost - - - -
Fair value at the beginning of the year 11,929,445 1,652,156 306,766 10,439,543 1,348,276 300,571
Net interest on defined benefit asset / (liability) (764,700) (5,479) (16,363) 389,632
Interest income on plan assets 1,780,969 261,838 43,154 1,443,915 200,013 39,523 Return allocated to other funds 39.8.1.1 73,510 - - -
Contribution by the Bank (1,169,284) 147,337 736 (6,829) 266,071 929 Employees' contribution - - (736) -
Contribution by the employees - - 736 - - 929 (683,934) 250,595 (15,276) 389,920
Amount paid by the fund to the Bank (841,332) (266,092) (31,091) (1,002,592) (267,752) (53,212)
Re-measurements gains 9,160,340 614,442 111,667 1,055,408 105,548 18,026 2023
Fair value at the end of the year 20,860,138 2,409,681 431,968 11,929,445 1,652,156 306,766 Post -
Pension Gratuity Benevolent retirement
fund fund fund medical
39.7 Movement in (payable) / receivable under defined benefit schemes
benefit
------------------------------------------------------------------------ (Rupees in '000) -----------------------------------------
2024
Post - Current service cost 24,202 221,414 2,445 383
Pension Gratuity Benevolent retirement Past service cost - - - -
fund fund fund medical Net interest on defined benefit asset (440,106) 5,125 (8,858) 370,420
benefit Return allocated to other funds 58,355 - - -
Employees' contribution - - (929) -
------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------
(357,549) 226,539 (7,342) 370,803

Opening balance 4,442,506 37,991 113,455 (2,590,351) 39.8.1.1 This represents return allocated to those employees who exercised the conversion option offered in the year 2001, as
Adjustment for mark-up 70,356 2,060 362 - referred in note 4.14.
(Charge) / reversal for the year 683,934 (250,595) 15,276 (389,920)
Contribution by the Bank (1,169,284) 147,337 736 - 39.8.2 Re-measurements recognised in OCI during the year
Amount paid by the fund to the Bank (841,332) (266,092) (31,091) - 2024
Post -
Benefits paid by the Bank 931,396 236,894 30,728 156,606
Pension Gratuity Benevolent retirement
Re-measurement gains / (loss) recognised in OCI 8,189,205 519,963 143,044 (97,800) fund fund fund medical
Closing balance 12,306,781 427,558 272,510 (2,921,465) benefit
------------------------------------------------------------------------ (Rupees in '000) -----------------------------------------
2023 Losses / (gains) on obligation
Post - - Financial assumptions 1,597,769 (37,039) 16,578 18,927
- Experience adjustment (696,990) 129,458 (48,317) 78,873
Pension Gratuity Benevolent retirement
Return on plan assets over interest income (9,160,340) (614,442) (111,667) -
fund fund fund medical
Adjustment for mark-up 70,356 2,060 362 -
benefit
Total re-measurements recognised in OCI (8,189,205) (519,963) (143,044) 97,800
------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------
2023
Opening balance 2,452,600 (37,824) 65,368 (2,628,679) Post -
Adjustment for Mark-up 8,380 2,129 777 - Pension Gratuity Benevolent retirement
(Charge) / reversal for the year 357,549 (226,539) 7,342 (370,803) fund fund fund medical
Contribution by the Bank (6,829) 266,071 929 - benefit
Amount paid by the fund to the Bank (1,002,592) (267,752) (53,212) - ------------------------------------------------------------------------ (Rupees in '000) -----------------------------------------
Benefits paid by the Bank 984,419 263,320 46,028 134,437 Losses / (gains) on obligation
Re-measurement gains / (loss) recognised in OCI 1,648,979 38,586 46,223 274,694 - Financial assumptions (462,000) 9,079 (6,823) 2,367
- Experience adjustment (139,951) 55,754 (22,151) (277,061)
Closing balance 4,442,506 37,991 113,455 (2,590,351)
Return on plan assets over interest income (1,055,408) (105,548) (18,026) -
Adjustment for mark-up 8,380 2,129 777 -
Total re-measurements recognised in OCI (1,648,979) (38,586) (46,223) (274,694)

56 Re-measurement gain recognised in OCI during the year pertaining to other schemes as disclosed in note 39.1.6 is Rs.
51.289 million (2023: Rs. 43.683 million)

130 United Bank Limited Annual Report 2024 131

57
Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2024 NOTES TO AND
For the FORMING
year PART OF
ended THE UNCONSOLIDATED
December 31, 2024FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

39.9 Components of fair value of plan assets 39.13 Funding Policy

2024 2023
Benevolent Benevolent The Bank endeavours to ensure that liabilities under the various employee benefit schemes are covered by the Fund on any
Pension fund Gratuity fund Pension fund Gratuity fund valuation date, based on various actuarial assumptions.
fund fund
-------------------------------------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------------------------------
Cash and cash equivalents - net 67,218 46,578 3,880 59,992 47,923 3,921 39.14 The significant risks associated with the staff retirement benefit schemes are as follows:
Ordinary shares 19,980,648 1,086,895 229,043 6,814,050 505,699 106,568
Non-Government debt securities 812,272 1,077,785 12,239 1,873,198 23,481 12,969 Asset Volatility
Mutual funds units - - - - - -
Pakistan Investment Bonds - 54,123 154,606 2,926,505 999,397 171,808 The risk arises due to inclusion of risky assets in the funds portfolio, inflation, interest rate volatility and change in price.
Market Treasury Bills - - - - 1,256 -
National Saving Certificates / Bonds - - 32,200 - - - Changes in Bond Yields
Certificate of Investments - - - - - 11,500
Repurchase agreements - 144,300 - 255,700 74,400 -
The risk arises when bond yield is lower than the expected return on the planned assets (duration based PIB discount rate).
20,860,138 2,409,681 431,968 11,929,445 1,652,156 306,766
Price Risk
39.9.1 The Funds invest in Government Securities and accordingly do not carry any significant credit risk. These are subject to The risk arises when there is volatility in market price of the equity instrument invested by Funds.
interest rate risk based on market movements. Investment in Non-Govt debt securities are subject to credit risk and interest
rate risks, while equity securities are subject to price risk. These risks are regularly monitored by Trustees of the employee Inflation Risk
funds.
The salary inflation is the major risk that the Gratuity and Compensated absences liability carries. In pension fund the
39.10 Sensitivity analysis increase has been determined by the Supreme Court and does not carry this risk as the benefit is practically no longer
exposed to future salary increases. Some of the post-retirement medical benefits are capped to a proportion of Pension, thus
Sensitivity analysis has been performed by varying one assumption keeping all other assumptions constant and calculating carrying no salary inflation risk. However, the hospitalization benefit is susceptible to medical inflation risk.
the impact on the present value of the defined benefit obligations under the various employee benefit schemes. The
increase / (decrease) in the present value of defined benefit obligations as a result of change in each assumption is Withdrawal Risk
summarized below:
2024 Withdrawal risks is the risk of higher or lower withdrawal experience than assumed. The final effect could go either way
depending on the beneficiaries’ service/age distribution and the benefit.
Post-retirement
Pension fund Gratuity fund Benevolent fund
medical benefit
------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------
Other Risks
Increase in Discount Rate by 1 % (564,257) (129,422) (5,566) (276,459) Though, not imminent and generally observable, over long term there are some risks that may crystallise. This includes:
Decrease in Discount Rate by 1 % 646,909 147,174 6,062 332,766
Increase in expected future increment in salary by 1% - 158,228 909 - - Retention Risk – The risk that employee will not be motivated to continue the service or start working with the Bank if
Decrease in expected future increment in salary by 1% - (141,159) (877) - no market comparable retirement benefit is provided.
Increase in expected future increment in pension by 1% 672,731 - - -
Decrease in expected future increment in pension by 1% (593,692) - - - - Final Salary Risk – The risk, for defined benefit gratuity, that any disproportionate salary merit increases in later service
Increase in expected future increment in medical benefit by 1% - - - 321,954 years will give rise to a multiplicative increase in the gratuity liability as such increase is applicable to all the past years
Decrease in expected future increment in medical benefit by 1% - - - (273,318) of service.

39.11 Expected contributions to be paid to the funds in the next financial year - Model Risk – The defined benefit gratuity liability is valued by actuary each year. Further, the assets in the Fund are
also marked to market. This two-tier valuation gives rise to the model risk.
The Bank contributes to the pension and gratuity funds according to the actuary's advice. Contribution to the benevolent
fund is made by the Bank as per the rates set out in the benevolent fund scheme. Based on actuarial advice, management - Operational Risk related to a separate entity - Retirement benefits are funded through a separate trust fund which is a
estimates that the expected contribution and charge / (reversal) for the year ending December 31, 2025, would be as different legal entity than the Bank. Generally, the protocols, processes, and conventions used throughout the Bank are
follows: not applicable or are not actively applied to the retirement benefit Funds. This gives rise to some specific operational
2025 risks.
Post retirement
Pension fund Gratuity fund Benevolent fund
medical benefit - Compliance Risk – The risk that retirement benefits offered by the Bank do not comply with minimum statutory
------------------------------------------------------------- (Rupees in '000) --------------------------------------------------------- requirements.

Expected contribution - - 662 -

- Legal / Political Risk – The risk that the legal / political environment changes and as a result, the Bank is required to
Expected (reversal) / charge for the year (1,502,447) 292,864 (30,525) 347,145 offer additional or different retirement benefits than what the Bank projected. Specifically, in the light of recent Supreme
Court decisions, this risk has materialised.

39.12 Maturity profile 2024 40. OTHER EMPLOYEE BENEFITS

Post retirement
Pension fund Gratuity fund Benevolent fund
medical benefit Defined contribution plan
------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------
The Bank operates a contributory provident fund scheme for 17,128 (2023: 12,982) employees who are not in the pension
The weighted average duration of the obligation (in years) 7.45 6.95 2.82 9.46 scheme. The employer and employee each contribute 8.33% of the basic salary to the funded scheme every month.

132 United Bank Limited 59 Annual Report 2024 133

58
Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
For TO
NOTES the
ANDyear ended
FORMING PART OFDecember 31, 2024
THE UNCONSOLIDATED FINANCIAL STATEMENTS For the
NOTES year
TO AND ended
FORMING PART OFDecember 31, 2024
THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 FOR THE YEAR ENDED DECEMBER 31, 2024

41. COMPENSATION OF DIRECTORS AND KEY MANAGEMENT PERSONNEL 41.2 Remuneration paid to Directors for participation in Board and Committee Meetings

41.1 Total Compensation Expense 2024

Meeting Fees and Allowances Paid
2024 For Board Committees
Directors Other
Key Board Human Board Risk
Executives Members Material Sr. Board Board
Items Non- President / CEO Management Name of Director For Board Resource & & Board IT Board
Chairman (other than Shariah Board Risk Takers/ No. Audit Nomination Total
Executives Personnel Meetings Compensation Compliance Committee International Allowance
CEO) Controllers Committee Committee Amount Paid
Committee Committee (BITC) Committee (BIC)
(BAC) (BNC)
------------------------------------------------------------ (Rupees in '000) -------------------------------------------------------- (HRCC) (BRCC)

Fees and Allowances etc. 10,860 - 107,010 12,973 - - - ---------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------
Managerial Remuneration
1 Sir Mohammed Anwar Pervez, OBE, HPk 4,800 - 2,400 - - 960 2,400 300 10,860
i) Fixed - - - - 139,629 343,940 508,858 2 Lord Zameer M. Choudrey, CBE, SI Pk 4,800 - 3,200 3,200 - 800 4,000 450 16,450
ii) Variable - Cash Bonus - - - - 48,000 324,320 406,202 3 The Honorable Haider Zameer Choudrey 4,800 3,200 - - 3,840 800 3,200 350 16,190
Contribution to defined contribution plan - - - - 11,350 23,230 38,166 4 Mr. Rizwan Pervez 4,800 3,200 - - 3,200 - 3,200 450 14,850
5 Mr. Daniel Michael Howlett 4,800 - - 3,840 3,200 - 3,200 - 15,040
Charge for defined benefit plan - - - - 3,564 8,665 15,365
6 Ms. Shazia Syed 4,800 3,840 3,200 - - - 3,200 - 15,040
Rent & house maintenance - - - - 4,800 140,995 206,735 7 Mr. Tariq Rashid 4,800 3,200 3,840 - - - 3,200 - 15,040
Utilities - - - - - 62,664 91,882 8 Mr. Muhammad Irfan A.sheikh 4,800 - - 3,200 3,200 - 3,200 - 14,400
Total Amount Paid 38,400 13,440 12,640 10,240 13,440 2,560 25,600 1,550 117,870
Medical - - - - - 31,332 45,941
Conveyance - - - - 6,251 127,163 143,831
Others - - - - - 42,684 27,366
Sub-total 10,860 - 107,010 12,973 213,594 1,104,993 1,484,346 2023
Sign-on bonus - - - - - 2,800 - Meeting Fees and Allowances Paid
Total 10,860 - 107,010 12,973 213,594 1,107,793 1,484,346 For Board Committees

Number of Persons 1 - 8 3 1 21 159 Sr. Board Human Board Risk

Name of Director For Board Board Board
No. Resource & & Board IT Board Digital
Meetings Audit Nomination Total
Compensation Compliance Committee Banking Allowance
Committee Committee Amount Paid
2023 Committee Committee (BITC) Committee (BDC)
(BAC) (BNC)
Directors (HRCC) (BRCC)
Other
Key
Executives Members Material
Items Non- President / CEO Management ---------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------
Chairman (other than Shariah Board Risk Takers/
Executives Personnel
CEO) Controllers
1 Sir Mohammed Anwar Pervez, OBE, HPk 6,660 - 3,950 - - 1,710 800 550 13,670
------------------------------------------------------------ (Rupees in '000) -------------------------------------------------------- 2 Lord Zameer M. Choudrey, CBE, SI Pk 5,550 - 1,600 3,150 1,550 1,550 800 600 14,800
3 The Honorable Haider Zameer Choudrey 5,550 3,150 - - 3,310 1,550 800 600 14,960
4 Mr. Rizwan Pervez 5,550 3,150 2,350 - 1,600 - 800 600 14,050
Fees and Allowances etc. 13,670 - 89,030 12,641 - - -
5 Mr. Daniel Michael Howlett 4,000 - - 1,920 1,600 - 960 - 8,480
Managerial Remuneration 6 Ms. Shazia Syed 5,550 3,780 1,600 1,550 - - 800 - 13,280
i) Fixed - - - - 149,916 236,413 621,088 7 Mr. Amar Zafar Khan * 1,550 - - - - - - - 1,550
ii) Variable - Cash Bonus - - - - 158,895 214,631 252,854 8 Mr. Tariq Rashid 5,550 800 4,740 - 2,820 - 800 - 14,710
9 Mr. Muhammad Irfan A.sheikh 3,200 800 - 1,600 800 - 800 - 7,200
Contribution to defined contribution plan - - - - 12,230 16,919 46,614 Total Amount Paid 43,160 11,680 14,240 8,220 11,680 4,810 6,560 2,350 102,700
Charge for defined benefit plan - - - - 4,649 7,886 28,022
Rent & house maintenance - - - - 14,031 97,068 252,955 * Mr. Amar Zafar Khan retired from the Board with effect from March 29, 2023.
Utilities - - - - 2,393 43,141 112,424
41.3 Remuneration paid to Shariah Board Members
Medical - - - - 319 21,571 56,212
Conveyance - - - - 9,564 79,284 246,704 2024 2023
Others - - - - 34,572 21,774 56,277
Sub-total 13,670 - 89,030 12,641 386,569 738,687 1,673,150 Resident Non-Resident Resident Non-Resident
Items Chairman Total Chairman Total
Awards - - - - - 20,000 - Member Member Member Member
Total 13,670 - 89,030 12,641 386,569 758,687 1,673,150 -------------------------------------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------------------------------

Number of Persons 1 - 8 3 2 22 141 Meeting fees and allowances 5,616 3,737 3,620 12,973 5,400 2,501 4,740 12,641

Total number of persons 1 1 2 1 1 1

The total amount of deferred bonus as at December 31, 2024 for the President / CEO, Key Management Personnel and other Material Risk Takers (MRT) /
Material Risk Controllers (MRC) is Rs. 363.459 million (2023: Rs. 443.554 million). The deferred bonus is held in a trust fund.
42. FAIR VALUE MEASUREMENTS

The fair value of quoted securities other than those classified as held to collect model, is based on quoted market price. Quoted
securities classified as "held to collect" are carried at amortized cost. The fair value of unquoted equity securities, other than
investments in associates and subsidiaries, is determined on the basis of the break-up value of these investments as per their latest
available audited financial statements.

134 United Bank Limited Annual Report 2024 135

Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
For
NOTESthe year
TO AND ended
FORMING PART OF December 31, FINANCIAL
THE UNCONSOLIDATED
FOR THE YEAR ENDED DECEMBER 31, 2024
2024 STATEMENTS For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

The fair value of unquoted debt securities, fixed term loans, other assets, other liabilities, fixed term deposits and borrowings cannot be 2024
calculated with sufficient reliability due to the absence of a current and active market for these assets and liabilities and reliable data Fair value
Carrying value
regarding market rates for similar instruments. Level 1 Level 2 Level 3 Total
------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------
Financial assets - disclosed but not measured at fair value
In the opinion of the management, the fair value of the remaining financial assets and liabilities are not significantly different from their
Investments
carrying values since these are either short-term in nature or, in the case of customer loans and deposits, are frequently repriced.
- Federal Government Securities 277,953,188 - 278,216,586 - 278,216,586
- Foreign Bonds - Market Treasury Bills 8,042,379 - 8,042,379 - 8,042,379
42.1 The Bank measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the - Foreign Bonds - sovereign 15,796,704 - 14,949,083 - 14,949,083
measurements: - Foreign Bonds - others 1,466,872 - 1,348,952 - 1,348,952
- Non-Government debt securities 19,339,444 - 19,556,848 - 19,556,848
Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities. 322,598,587 - 322,113,848 - 322,113,848
5,882,947,908 21,404,561 5,861,058,608 - 5,882,463,169
Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the assets or liability, Off-balance sheet financial instruments - measured at fair value
either directly (i.e. as prices) or indirectly (i.e. derived from prices). Forward purchase and sale of foreign exchange contracts 582,473,911 - (222,176) - (222,176)
FX options - purchased and sold - - - - -
Level 3: Fair value measurements using input for the asset or liability that are not based on observable market data (i.e. unobservable
inputs). Forward purchase and sale of Government Securities 319,286,690 - 1,256,494 - 1,256,494

2023
The table below analyses financial instruments measured at the end of the reporting period by the level in the fair value hierarchy into which Fair value
Carrying value
the fair value measurement is categorised: Level 1 Level 2 Level 3 Total
On balance sheet financial instruments ------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------
42.1.1 Valuation techniques used in determination of fair values within level 2 and level 3. Financial assets - measured at fair value
Investments
Item Valuation approach and input used - Federal Government Securities 3,878,565,908 - 3,878,565,908 - 3,878,565,908
Federal Government securities The fair value of Federal Government securities is determined using the prices / rates available - Foreign Bonds - Market Treasury Bills 67,785,996 67,785,996 67,785,996
on Mutual Funds Association of Pakistan (MUFAP) / Bloomberg. - Foreign Bonds - sovereign 56,224,631 - 56,224,631 - 56,224,631
- Foreign Bonds - others 1,253,562 - 1,253,562 - 1,253,562
Non-Government debt securities The fair value of non-government debt securities is determined using the prices / rates from
- Ordinary shares of listed companies 10,765,935 10,765,935 - - 10,765,935
MUFAP.
- Non-Government debt securities 2,250,702 - 2,250,702 - 2,250,702
Foreign debt securities The fair value of foreign corporate and foreign government securities is determined using the
- Real Estate Investment Trust units 616,232 616,232 - - 616,232
rates from Bloomberg. 4,017,462,966 11,382,167 4,006,080,799 - 4,017,462,966
Mutual Fund units The fair values of investments in units of mutual funds are determined based on their net asset Financial assets - disclosed but not measured at fair value
values as published at the close of each business day. - Federal Government Securities 303,809,670 - 280,259,649 - 280,259,649
Forward foreign exchange contracts and The fair values of forward foreign exchange contracts and forward Government securities - Foreign Bonds - Market Treasury Bills 15,875,336 - 15,889,922 - 15,889,922
Forward Government securities transactions are determined using forward pricing calculations. - Foreign Bonds - sovereign 20,187,556 - 19,111,088 - 19,111,088
transactions - Foreign Bonds - others 1,494,294 - 1,366,160 - 1,366,160
Derivatives The fair valuation techniques include forward pricing and swap models using present value - Non-Government debt securities 21,471,010 - 21,014,103 - 21,014,103
calculations. 362,837,866 - 337,640,922 - 337,640,922
Fixed assets and non-banking Land, buildings and non-banking assets acquired in satisfaction of claims are revalued on a 4,380,300,832 11,382,167 4,343,721,721 - 4,355,103,888
assets acquired in periodic basis using professional valuers. The valuation is based on their assessment of the 2023
satisfaction of claims market value of the assets. The effect of changes in the unobservable inputs used in the Fair value
valuations cannot be determined with certainty. Accordingly, a qualitative disclosure of Carrying value
Level 1 Level 2 Level 3 Total
sensitivity has not been presented in these unconsolidated financial statements. ------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------
Off-balance sheet financial instruments - measured at fair value
Forward purchase and sale of foreign exchange contracts 540,001,109 - 1,499,000 - 1,499,000
42.2 Fair value of financial assets
FX options - purchased and sold 366,068 - - - -

The following table provides the fair values of those of the Bank’s financial assets that are recognised or disclosed at fair value in these Forward purchase and sale of Government Securities 19,956,300 - 26,617 - 26,617
unconsolidated financial statements:
2024
42.3 Fair Value of non-financial assets 2024
Fair value Fair value
Carrying value Carrying value
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------ ------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------
On balance sheet financial instruments
Property and equipment 60,922,041 - - 60,922,041 60,922,041
Financial assets - measured at fair value Non-banking assets acquired in satisfaction of claims 42,075 - - 42,075 42,075
Investments 60,964,116 - - 60,964,116 60,964,116
- Federal Government securities 5,426,802,954 - 5,426,802,954 - 5,426,802,954
- Foreign Bonds - Market Treasury Bills 14,911,986 - 14,911,986 - 14,911,986 2023
- Foreign bonds - sovereign 93,826,601 - 93,826,601 - 93,826,601 Fair value
Carrying value
- Foreign bonds - others 1,238,358 - 1,238,358 - 1,238,358 Level 1 Level 2 Level 3 Total
- Ordinary shares of listed companies 20,452,691 20,452,691 - - 20,452,691 ------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------
- Non-Government debt securities 2,164,861 - 2,164,861 - 2,164,861 Property and equipment 50,716,919 - - 50,716,919 50,716,919
- Real Estate Investment Trust units 951,870 951,870 - - 951,870 Non-banking assets acquired in satisfaction of claims 42,075 - - 42,075 42,075
5,560,349,321 21,404,561 5,538,944,760 - 5,560,349,321 50,758,994 - - 50,758,994 50,758,994

42.4 Certain categories of property and equipment (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.

136 United Bank Limited 63 Annual Report 2024 137

62
Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
For
NOTESthe year
TO AND ended
FORMING PART OFDecember 31, FINANCIAL
THE UNCONSOLIDATED 2024 STATEMENTS For
NOTESthe year
TO AND ended
FORMING PART OF December 31, FINANCIAL
THE UNCONSOLIDATED 2024 STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 FOR THE YEAR ENDED DECEMBER 31, 2024

43. SEGMENT INFORMATION 2023

Corporate / International
Branch
43.1 Segment details with respect to business activities Commercial Treasury Islamic Banking branch Others Total
Banking
2024 Banking operations
Corporate / International -------------------------------------------------------- (Rupees in '000) --------------------------------------------------------
Branch
Commercial Treasury Islamic Banking branch Others Total
Banking Borrowings 57,979,951 2,739,257,686 4,506,465 13,726,452 - - 2,815,470,554
Banking operations
Subordinated debt - - - - - 10,000,000 10,000,000
Profit & Loss -------------------------------------------------------- (Rupees in '000) -------------------------------------------------------- Deposits & other accounts 105,887,403 199,712 1,542,125,514 378,100,209 324,227,985 - 2,350,540,823
Net mark-up / return / profit 61,540,701 200,057,676 (146,184,327) 38,235,548 21,275,103 (1,509,876) 173,414,825 Net inter segment borrowing 245,388,446 1,305,152,330 - - 97,364,690 - 1,647,905,466
Inter segment (expense) / revenue - net (50,874,024) (247,139,518) 289,412,290 - - 8,601,252 - Others 2,062,665 8,066,357 24,745,131 9,588,237 94,288,601 7,734,603 146,485,594
Non mark-up / return / interest income 8,343,496 46,721,140 10,439,334 2,147,707 11,890,673 7,951,773 87,494,123 Total Liabilities 411,318,465 4,052,676,085 1,571,377,110 401,414,898 515,881,276 17,734,603 6,970,402,437
Total Income 19,010,173 (360,702) 153,667,297 40,383,255 33,165,776 15,043,149 260,908,948 Equity 13,485,527 (18,087,659) 121,691,354 38,719,545 (96,451,163) 193,142,927 252,500,531
Total Equity & liabilities 424,803,992 4,034,588,426 1,693,068,464 440,134,443 419,430,113 210,877,530 7,222,902,968
Segment direct expenses 1,903,390 664,029 55,082,933 8,171,042 7,860,993 24,283,138 97,965,525
Inter segment expense allocation 402,004 913,915 9,608,813 - - (10,924,732) - Contingencies and Commitments 666,470,041 317,073,549 36,229,803 6,642,138 288,041,327 749,649 1,315,206,507
Total expenses 2,305,394 1,577,944 64,691,746 8,171,042 7,860,993 13,358,406 97,965,525
Credit loss allowance - net 2024
2,671,196 221,697 (167,806) (8,250) 7,971,599 2,063,339 12,751,775
Profit / (loss) before tax 14,033,583 (2,160,343) 89,143,357 32,220,463 17,333,184 (378,596) 150,191,648 Export
43.2 Geographical segment analysis Pakistan Middle East Processing Total
Balance Sheet
Zones
Cash & Bank balances 29,906 99,428,160 64,494,602 44,862,676 160,898,813 - 369,714,157 Profit and Loss ------------------------------------------- (Rupees in '000) ---------------------------------------
Investments 10,156,363 5,613,070,387 - 119,366,357 140,744,551 3,556,845 5,886,894,503
Net inter segment lending - - 1,513,980,697 216,760,034 - 63,438,769 1,794,179,500 Net mark-up / return / profit 152,139,722 20,361,920 913,183 173,414,825
Lendings to financial institutions - 18,492,483 - - - - 18,492,483 Non mark-up / return / interest income 75,603,450 12,274,293 (383,620) 87,494,123
Advances - performing 912,361,408 2,238 57,221,149 147,626,192 316,182,001 1,996,657 1,435,389,645 Total Income 227,743,172 32,636,213 529,563 260,908,948
Advances - non-performing net of credit loss allowance 1,328,491 - 298,848 260,774 6,204,186 - 8,092,299
Segment direct expenses 90,104,532 7,817,621 43,372 97,965,525
Others 24,878,319 138,388,839 51,935,147 81,332,932 11,129,453 36,884,357 344,549,047
Total Assets Inter segment expense allocation - - - -
948,754,487 5,869,382,107 1,687,930,443 610,208,965 635,159,004 105,876,628 9,857,311,634
Total expenses 90,104,532 7,817,621 43,372 97,965,525
Borrowings 46,800,297 4,767,131,383 5,583,815 8,003,110 27,854,911 - 4,855,373,516 Credit loss allowance - net 4,780,176 7,971,599 - 12,751,775
Subordinated debt - - - - - 10,000,000 10,000,000
Profit before tax 132,858,464 16,846,993 486,191 150,191,648
Deposits & other accounts 129,324,679 - 1,495,019,950 519,488,251 496,378,609 - 2,640,211,489
Net inter segment borrowing 753,056,630 1,032,301,065 - - 8,821,805 - 1,794,179,500 Balance Sheet
Others 19,538,871 53,577,825 90,825,364 17,915,365 17,577,342 41,890,111 241,324,878
Cash & Bank balances 208,815,344 160,721,743 177,070 369,714,157
Total Liabilities 948,720,477 5,853,010,273 1,591,429,129 545,406,726 550,632,667 51,890,111 9,541,089,383
Equity Investments 5,746,149,952 139,877,233 867,318 5,886,894,503
34,010 16,371,834 96,501,314 64,802,239 84,526,337 53,986,517 316,222,251
Total Equity & liabilities 948,754,487 5,869,382,107 1,687,930,443 610,208,965 635,159,004 105,876,628 9,857,311,634 Net inter segment lending 1,794,179,500 - - 1,794,179,500
Lendings to financial institutions 18,492,483 - - 18,492,483
Contingencies and Commitments 748,634,121 505,243,486 93,104,492 10,536,687 442,550,988 1,504,910 1,801,574,684
Advances - performing 1,119,207,644 316,124,639 57,362 1,435,389,645
Advances - non-performing net of credit loss allowance 1,888,113 6,204,186 - 8,092,299
2023
Others 333,419,594 10,782,925 346,528 344,549,047
Corporate / International
Branch Total Assets 9,222,152,630 633,710,726 1,448,278 9,857,311,634
Commercial Treasury Islamic Banking branch Others Total
Banking
Banking operations Borrowings 4,827,518,605 27,854,911 - 4,855,373,516
-------------------------------------------------------- (Rupees in '000) -------------------------------------------------------- Subordinated debt 10,000,000 - - 10,000,000
Profit and Loss
Deposits & other accounts 2,143,832,880 483,677,824 12,700,785 2,640,211,489
Net mark-up / return / profit 62,359,198 165,148,422 (121,897,300) 20,401,647 18,978,272 (2,106,117) 142,884,122 Net inter segment borrowing 1,785,357,695 8,333,854 487,951 1,794,179,500
Inter segment (expense) / revenue - net (56,002,151) (237,721,792) 282,189,337 - - 11,534,606 - Others 223,747,536 28,956,172 (11,378,830) 241,324,878
Non mark-up / return / interest income 6,459,446 11,553,893 11,528,592 256,665 2,293,380 1,117,589 33,209,565 Total Liabilities 8,990,456,716 548,822,761 1,809,906 9,541,089,383
Total Income 12,816,493 (61,019,477) 171,820,629 20,658,312 21,271,652 10,546,078 176,093,687
Equity 231,695,914 84,887,965 (361,628) 316,222,251
Segment direct expenses 1,755,992 662,195 43,123,087 4,271,579 7,917,826 8,946,471 66,677,150 Total Equity & liabilities 9,222,152,630 633,710,726 1,448,278 9,857,311,634
Inter segment expense allocation 443,919 108,914 9,504,655 - 588,849 (10,646,337) -
Total expenses 2,199,911 771,109 52,627,742 4,271,579 8,506,675 (1,699,866) 66,677,150 Contingencies and Commitments 1,359,023,696 442,472,468 78,520 1,801,574,684
(Reversal) / provisions - net (1,384,871) 546,630 (752,586) 12,640 2,256,970 619,680 1,298,463 `
Profit / (loss) before tax 12,001,453 (62,337,216) 119,945,473 16,374,093 10,508,007 11,626,264 108,118,074 2023

Balance Sheet Export

Pakistan Middle East Processing Total
Cash & Bank balances 11,358 91,246,445 101,463,285 27,886,564 87,423,316 - 308,030,968 Zones
Investments 12,055,059 3,829,326,862 - 331,496,374 199,730,588 12,607,788 4,385,216,671 ------------------------------------------- (Rupees in '000) ---------------------------------------
Net inter segment lending - - 1,501,428,974 - - 146,476,492 1,647,905,466
Profit and Loss
Lendings to financial institutions - 21,947,852 - 12,500,000 - - 34,447,852
Advances - performing 391,683,285 9,872 50,956,184 47,108,009 107,411,872 3,188,071 600,357,293 Net mark-up / return / profit 123,905,850 18,208,240 770,032 142,884,122
Advances - non-performing net of provision 2,710,229 - 614,905 79,176 9,792,924 10,999 13,208,233 Non mark-up / return / interest income 30,916,185 2,268,604 24,776 33,209,565
Others 18,344,061 92,057,395 38,605,116 21,064,320 15,071,413 48,594,180 233,736,485 Total Income 154,822,035 20,476,844 794,808 176,093,687
Total Assets 424,803,992 4,034,588,426 1,693,068,464 440,134,443 419,430,113 210,877,530 7,222,902,968
Segment direct expenses 58,759,324 7,883,702 34,124 66,677,150
Inter segment expense allocation (588,849) 586,191 2,658 -
Total expenses 58,170,475 8,469,893 36,782 66,677,150
Provisions - net (958,507) 1,699,329 557,641 1,298,463
Profit / (loss) before tax 97,610,067 10,307,622 200,385 108,118,074

138 United Bank Limited Annual Report 2024 139

65
Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
For the
FOR THE year
YEAR ENDEDended
DECEMBER December
31, 2024 31, 2024 For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

2023 45. RELATED PARTY TRANSACTIONS

Export
Pakistan Middle East Processing Total The Bank has related party transactions with its parent, directors, key management personnel, subsidiaries, associates and other
Zones related parties including employee benefit schemes of the Bank.
------------------------------------------- (Rupees in '000) ---------------------------------------
Balance Sheet The Bank 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
Cash & Bank balances 220,607,652 87,237,156 186,160 308,030,968 benefit plans are made in accordance with the actuarial valuations / terms of the contribution plan. Remuneration to the executives /
Investments 4,185,486,083 196,285,002 3,445,586 4,385,216,671 officers is determined in accordance with the terms of their appointment.
Net inter segment lending 1,647,905,466 - - 1,647,905,466
Lendings to financial institutions 34,447,852 - - 34,447,852 Details of transactions with related parties during the year are as follows:
Advances - performing 492,945,421 105,933,631 1,478,241 600,357,293
Advances - non-performing net of provision 3,415,309 9,792,924 - 13,208,233 2024
Others 218,665,072 14,687,435 383,978 233,736,485 Key
Total Assets
Other related
6,803,472,855 413,936,148 5,493,965 7,222,902,968 Parent Directors management Subsidiaries Associates
parties
personnel
Borrowings 2,815,470,554 - - 2,815,470,554
Subordinated debt 10,000,000 - - 10,000,000 ----------------------------------------------------------------------------------------------------------------------- (Rupees in '000) ------------------------------------------------------------------------------------
Statement of financial position
Deposits & other accounts 2,026,312,838 319,856,028 4,371,957 2,350,540,823
Net inter segment borrowing 1,550,540,776 96,858,410 506,280 1,647,905,466 Balances with other banks
Others 52,196,993 90,719,656 3,568,945 146,485,594
In current accounts - - - - - 391,556
In deposit accounts - - - - - -
Total Liabilities 6,454,521,161 507,434,094 8,447,182 6,970,402,437
- - - - - 391,556
Equity 348,951,694 (93,497,946) (2,953,217) 252,500,531
Total Equity & liabilities 6,803,472,855 413,936,148 5,493,965 7,222,902,968
Lendings to financial institutions
0 - - 0
Contingencies and Commitments 1,027,165,180 287,920,806 120,521 1,315,206,507 Opening balance - - - - - 804,102
Addition during the year - - - - - 2,191,560
Transactions between reportable segments are based on an appropriate transfer pricing mechanism using agreed rates. Repaid during the year - - - - - (2,995,662)
Transfer in / (out) - net - - - - - -
44. TRUST ACTIVITIES Closing balance - - - - - -

The Bank acts as a custodian for securities held in Investor Portfolio Securities (IPS) accounts. These are not assets of the Bank and, therefore, are not Investments
included in these unconsolidated financial statements. Assets held under trust in IPS accounts are shown in the table below: Opening balance - - - 3,955,223 1,657,486 5,287,396
Adoption Impact of IFRS 9 - - -
2024 Investment made during the year - - - 1,000,000 - 885,450
Securities held (Face Value) Investment disposed / written off during the year - - - (2,855,223) - (2,500,000)
Number of
Pakistan Market Transfer in / (out) - net - - - - - (37,406)
Category IPS GoP Ijara Total
Investment Treasury Closing balance - - - 2,100,000 1,657,486 3,635,440
Accounts Sukuks
Bonds Bills
------------------------------------------ (Rupees in '000) ------------------------------------------ Credit loss allowance for diminution in value of investments - - - - 1,417,485 -
Asset Management Companies 2 - 1,006,800 - 1,006,800
Corporates 37 132,351,400 - 163,621,760 295,973,160 Advances
Individuals 199 215,800 17,500 5,282,750 5,516,050 Opening balance - 1,286 529,196 - - 392
Insurance Companies 5 472,645,700 1,897,500 73,505,000 548,048,200 Addition during the year - 7,566 365,352 - - 231,103,164
NGO / Charitable Organisation 4 2,754,000 - 12,126,745 14,880,745 Repaid during the year - (8,315) (488,089) - - (6,136)
Pension & Employee Funds 36 63,018,800 838,000 43,246,890 107,103,690 Transfer in / (out) - net - - 189,824 - - -
Others 12 117,743,700 - 30,818,460 148,562,160 Closing balance - 537 596,283 - - 231,097,420
Total 295 788,729,400 3,759,800 328,601,605 1,121,090,805
Credit loss allownace held against advances - - - - - -
2023
Securities held (Face Value)
Number of Property and equipment / CWIP - - - - - 197,026
Pakistan GoP Ijara Market
Category IPS Total
Investment Sukuks Treasury
Accounts Other Assets
Bonds Bills
------------------ (Rupees in '000) -------------------- Interest / mark-up accrued - - 133 - - 5,094,682
Receivable from staff retirement fund - - - - - 13,006,849
Asset Management Companies 3 - 8,284,500 - 8,284,500
Prepaid insurance - - - - 144,558 -
Corporates 27 32,321,700 - 105,059,490 137,381,190
Unrealised gain on forward foreign exchange contracts - - - - - 134
Individuals 246 262,500 21,000 7,532,275 7,815,775
Other receivable - - - 1,658 - 12,478
Insurance Companies 6 540,345,800 2,393,500 64,025,500 606,764,800
NGO / Charitable Organisation 4 1,634,000 - 5,691,640 7,325,640
Pension & Employee Funds 34 57,118,600 325,000 30,799,880 88,243,480 Provision written off - - - - - -
Others 14 11,318,400 - 17,370,360 28,688,760
Total 334 643,001,000 11,024,000 230,479,145 884,504,145

140 United Bank Limited Annual Report 2024 141

67
66
Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
ForFOR
the
THE year ended
YEAR ENDED December
DECEMBER 31, 2024 31, 2024 ForFORthe
THE year ended
YEAR ENDED December
DECEMBER 31, 2024 31, 2024
2024 2024
Key Key
Other related Other related
Parent Directors management Subsidiaries Associates Parent Directors management Subsidiaries Associates
parties parties
personnel personnel
----------------------------------------------------------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------------------------
Other Information
Borrowings Dividend paid 27,796,071 989,492 33,061 - - 7,491,134
Opening balance - - - 3,320 - 402,800 Insurance premium paid - - - - 838,586 -
Borrowings during the year - - - - 500,000 243,259,002 Insurance claims settled - - - - 379,205 -
Settled during the year - - - (3,320) (500,000) (149,201,102)
Closing balance - - - - - 94,460,700 2023
Key
Deposits and other accounts Other related
Parent Directors management Subsidiaries Associates
parties
Opening balance 14,362 5,149,234 114,762 1,055,328 566,903 14,917,301 personnel
Received during the year 71,539,502 44,412,648 2,145,718 97,445,145 84,366,733 1,393,847,209 ----------------------------------------------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------------------------
Withdrawn during the year (71,550,659) (42,298,845) (2,101,517) (98,108,394) (84,337,211) (1,368,907,854) Statement of financial position
Transfer in / (out) - net - - (6,893) (56,579) - 779,016
Closing balance 3,205 7,263,037 152,070 335,500 596,425 40,635,672 Balances with other banks
In current accounts - - - 647,251 - -
Other Liabilities In deposit accounts - - - - - -
Interest / mark-up payable on deposits and borrowings 580 41,605 2,264 6,192 5,370 652,728 - - - 647,251 - -

Dividend payable - 70 4 - - - Lendings to financial institutions

Payable to staff retirement fund - - - - - - Opening balance - - - - - -
Unrealised loss on forward foreign exchange contracts - - - - - 3,219 Addition during the year - - - - - 12,674,229
Unearned income - - - - - - Repaid during the year - - - - - (11,870,127)
Other payable - 4,310 - - - 21,604 Transfer in / (out) - net - - - - - -
Closing balance - - - - - 804,102
Contingencies and Commitments
Investments
Letter of guarantee - - - - - 21,463
Opening balance - - - 2,955,223 2,024,126 5,300,368
Forward Government securities sale - - - - - 2,585,000
Investment made during the year - - - 1,000,000 225,000 -
Investment disposed / written off during the year - - - - (366,640) (58,518)
Profit and loss account
Transfer in / (out) - net - - - - (225,000) 45,546
Closing balance - - - 3,955,223 1,657,486 5,287,396
Income
Mark-up / return / interest earned - - 31,903 - - 5,116,983 Provision for diminution in value of investments - - - - 1,417,485 1,160,263
Commission / charges recovered - 282 2,623 1,910 19,251 16,362
Dividend income - - - - 54,613 891,983 Advances
Net gain on sale of securities - - - - - - Opening balance - 480 318,625 - - 17,808,043
Other income - - - 3,633 - 78,256 Addition during the year - 5,664 544,583 - - 14,944,269
Gain on sale of subsidiary - - - 7,083,501 - - Repaid during the year - (4,992) (497,605) - - (33,077,402)
Gain on sale of property and equipment - 36 47 - 2,806 - Transfer out - net - 134 163,593 - - 325,482
Reversal of provision - - - - - - Closing balance - 1,286 529,196 - - 392
Switch revenue - - - - - 453,338
Management fee - - - 37,083 - - Provision held against advances - - - - - -

Expense Property and equipment / CWIP - - - - - 29,000

Mark-up / return / interest paid 64,931 294,892 20,328 122,486 66,690 3,114,972
Remuneration paid - - 1,268,666 - - - Other Assets
Post employment benefits - - - - - - Interest / mark-up accrued - - 8,612 - - 120,906
Directors' fees and allowances - 117,870 - - - - Receivable from staff retirement fund - - - - - 4,593,951
Charge for defined contribution plans - - 34,580 - - 657,313 Prepaid insurance - - - - 100,000 -
Charge for defined benefit plans - - 10,748 - - 130,567 Other receivable - - - 60,217 - -
Provision - - - - - -
Provision written off - - - - - -
Other expenses - - 3,997 - - 365,806
Clearing charges - - - - - 210,344 Borrowings
Donations - - - - - - Opening balance - - - - - -
Membership, subscription, sponsorship and Borrowings during the year - - - 3,320 - 27,041,450
maintenance charges - - 3,396 - - 21,072 Settled during the year - - - - - (26,638,650)
Closing balance - - - 3,320 - 402,800

68
69
142 United Bank Limited Annual Report 2024 143
Notes to and forming part of the Unconsolidated Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS Notes to and forming part of the Unconsolidated Financial Statements
FOR THE YEAR ENDED DECEMBER 31, 2024
For the year ended December 31, 2024 For
NOTES the
TO ANDyear ended
FORMING December
PART OF THE 31,FINANCIAL
UNCONSOLIDATED
FOR THE YEAR ENDED DECEMBER 31, 2024
2024STATEMENTS
2023 46. CAPITAL ADEQUACY, LEVERAGE RATIO & LIQUIDITY REQUIREMENTS Note 2024 2023
------- (Rupees in '000) -------
Key
Other related Minimum Capital Requirement (MCR):
Parent Directors management Subsidiaries Associates
parties Paid-up capital (net of losses) 12,241,797 12,241,797
personnel
----------------------------------------------------------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------------------------------------------------- Capital Adequacy Ratio (CAR):
Eligible Common Equity Tier 1 (CET 1) Capital 46.2 231,378,975 143,456,256
Deposits and other accounts
Eligible Additional Tier 1 (ADT 1) Capital 9,934,770 9,934,770
Opening balance 14,327 13,924,363 68,837 70,757 483,935 17,181,731 Total Eligible Tier 1 Capital 241,313,745 153,391,026
Received during the year 123,898,655 64,480,148 1,619,139 20,241,079 93,425,031 780,514,685 Eligible Tier 2 Capital 79,934,771 49,594,306
Withdrawn during the year (123,898,620) (73,338,287) (1,609,785) (20,140,705) (93,342,063) (781,066,806) Total Eligible Capital (Tier 1 + Tier 2) 321,248,516 202,985,332
Transfer in - 83,010 36,571 884,197 - (1,712,309)
Risk Weighted Assets (RWAs):
Closing balance 14,362 5,149,234 114,762 1,055,328 566,903 14,917,301 Credit Risk 982,317,606 709,252,566
Market Risk 268,034,475 259,291,125
Other Liabilities Operational Risk 331,068,883 252,952,334
Interest / mark-up payable on deposits and borrowings - 17,676 188 - 33 49,967 Total 1,581,420,964 1,221,496,025
Dividend payable - - - - - - Common Equity Tier 1 Capital Adequacy Ratio 14.63% 11.74%
Payable to staff retirement fund - - - - - - Tier 1 Capital Adequacy Ratio 15.26% 12.56%
Unearned income - - - 536 - 47,262 Total Capital Adequacy Ratio 20.31% 16.62%
Other payable - 4,310 - - 5,000 14,583
The SBP through its BSD Circular No. 07 dated April 15, 2009 has prescribed the minimum paid-up capital (net of accumulated
Contingencies and Commitments losses) for Banks to be raised to Rs.10,000 million by the year ending December 31, 2015. The paid-up capital of the Bank for the
Letter of guarantee - - - - - - year ended December 31, 2024 stood at Rs.12,241.797 million (2023: 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
Forward Government securities sale - - - - - -
buffer of 2.5% of the risk weighted exposures of the Bank.

Profit and loss account 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
Income the time being, from its existing level of 2.5% to 1.5%, till further instructions.
Mark-up / return / interest earned - - 34,178 - - 2,247,937
Further, under Basel III instructions, Banks are also required to maintain a Common Equity Tier 1 (CET 1) ratio and Tier 1 ratio of
Commission / charges recovered - 174 1,501 1,325 16,219 23,975 6.0% and 7.5%, respectively, as at December 31, 2024. The Bank is fully compliant with prescribed ratios as the Bank’s CAR is
Dividend income - - - 85,571 15,021 610,556 20.31% whereas CET 1 and Tier 1 ratios stood at 14.63% and 15.26% respectively.
Net gain on sale of securities - - - - 32,413 -
Furthermore, under the SBP’s Framework for Domestic Systemically Important Banks (D-SIBs) introduced vide BPRD Circular No. 04
Other income - - - 2,846 - 46,186
of 2018 dated April 13, 2018, UBL has been designated as a D-SIB under letter BSD-3/Bank/UBL/751777/2024 dated August 29,
Gain on sale of property and equipment - - 7,072 - 1,235 - 2024. In line with this framework, the Bank is required to meet the Higher Loss Absorbency (HLA) capital charge of 1.0%, in the form
Gain on wind-up of subsidiary - - - - - - of Additional CET 1 capital, on a standalone as well as consolidated level. The prescribed HLA under D-SIB shall remain effective till
Reversal of provision - - - - - 20,203 the next D-SIB designation announcement is made by State Bank of Pakistan.
Switch revenue - - - - - 351,280
Management fee - - - 76,909 - - Under the current capital adequacy regulations, credit risk and market risk exposures are measured using the Standardised Approach
and operational risk is measured using the Basic Indicator Approach. Credit risk mitigants are applied against the Bank’s exposures
Expense based on eligible collateral under comprehensive approach.
Mark-up / return / interest paid 7,416 361,179 11,476 22,718 51,941 1,375,693
The Capital Adequacy Ratio excluding the transition benefit of ECL (net of tax) on adoption of IFRS 9 would be lower by 29bps as at
Remuneration paid - - 1,086,391 - - -
December 31, 2024.
Post employment benefits - - - - - -
Directors' fees and allowances - 102,700 - - - - 2024 2023
Charge for defined contribution plans - - 29,150 - - 523,293 ------------- (Rupees in '000) -------------
Charge for defined benefit plans - - 12,535 18,872 - 410,532 Leverage Ratio (LR):
Eligible Tier-1 Capital 241,313,745 153,391,026
Provision - - - - 1,417,485 227,626
Total Exposures 7,852,713,980 6,245,545,091
Other expenses - 26 17,180 - 500 240,736 Leverage Ratio 3.07% 2.46%
Clearing charges - - - - - 170,828
Donations - - - - - - Liquidity Coverage Ratio (LCR):
Total High Quality Liquid Assets 1,809,400,194 1,194,192,309
Membership, subscription, sponsorship and
Total Net Cash Outflow 721,237,268 436,543,979
maintenance charges - - 3,864 - - 31,034 Liquidity Coverage Ratio 250.87% 273.56%

Net Stable Funding Ratio (NSFR):

Other Information Total Available Stable Funding 2,163,819,529 1,912,608,898
Dividend paid 26,532,614 881,245 21,066 - - 5,086,556 Total Required Stable Funding 2,027,714,826 1,310,982,494
Net Stable Funding Ratio 106.71% 145.89%
Insurance premium paid - - - - 690,432 -
Insurance claims settled - - - - 588,634 -
46.1 The full disclosures on the CAPITAL ADEQUACY, LEVERAGE RATIO & LIQUIDITY REQUIREMENTS as per SBP instructions
issued from time to time are placed on the website. The link to the full disclosure is available at https://www.ubldigital.com/Investor-
Relations/CAR-Statements.aspx.

46.2 The SBP through its BPRD circular letter no. 2 of 2025 dated January 24, 2025 has instructed to treat Foreign Exchange Translation
Reserve as part of Common Equity Tier-1 (CET-1) capital with effect from December 31, 2024. The foreign exchange translation had
been reported as TIER II capital for all periods prior to December 31, 2024.

144 United Bank Limited 70 Annual Report 2024 145

71
Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
For the
FOR THE YEARyear ended 31,
ENDED DECEMBER December
2024 31, 2024 For the year ended December 31, 2024
47. RISK MANAGEMENT The Risk Management function of the Bank regularly conducts assessments of the credit portfolio to identify borrowers most likely to get affected
due to changes in the continuously evolving business and economic environment. The Bank has been continuously reviewing the portfolio, to
identify accounts susceptible to higher risk, resulting from the ongoing economic crisis.
The Bank has an integrated risk management structure in place covering domestic and international operations. The Board Risk and Compliance
Committee (BRCC), a sub-committee of the Board of Directors (BoD); oversees the entire risk management process of the Bank. Management
Risk Committee (MRC) oversees all risks collectively at senior management level. The Committee is chaired by the President and comprises of IFRS 9 became applicable in the current year for domestic operations and has been applicable for some of the international branches of the Bank.
Heads of all major areas such as Risk, Finance, SAM and Business Groups. The Risk and Credit Policy Group led by Group Executive Risk and This standard requires the estimation of Expected Credit Losses (ECL) based on various parameters such as probability of default, loss given
Credit Policy (GE-R&CP) is responsible for the development and implementation of all risk policies approved by the BoD in line with the guidelines default, exposure at default, significant increase in credit risk as well as current and forecasted macro-economic variables as detailed in note
issued by SBP and respective overseas central banks. The group is organized into various functions such as Credit Risk Management, Credit 4.2.6.
Policy & Research, Market & Treasury Risk and Basel, Financial Institution Risk, Consumer Risk, Operational Risk, Credit Administration Division,
Environmental, Social & Governance Risk and Information Security Risk. The role of the Risk and Credit Policy Group, interalia, includes: 47.1.1 Lendings to financial institutions
2024
Non-
- Determining guidelines relating to the Bank’s risk appetite. Gross
Credit risk by public / private sector performing Credit loss allowance held
lendings
- Reviewing risks on an aggregate and enterprise level lendings

- Recommending risk management policies in accordance with the Prudential Regulations, Basel II / III framework, Regulatory framework of Stage 1 Stage 2 Stage 3 Total
foreign countries where the bank operates and international best practices. ------------------------------------------------------------------------------------------ (Rupees in '000) -------------------------------------------------------------------------
Public / Government - - - - - -
- Reviewing policies / manuals and ensuring that these are in accordance with BRCC / BoD approved Risk Management Policy. Private 18,492,483 - - - - -
- Approving credits and granting approval authority to qualified and experienced individuals. 18,492,483 - - - - -

- Portfolio reviews focusing on quality assessment, risk profiles, industry concentrations etc. 2023
- Identify problem credits and level of provisioning required. Non-
Gross Provision
- To establish an extensive Information Security (IS) Program and governance structure, to manage the security of the information assets. performing
lendings held
- Ensuring development of an effective MIS for timely identification, control and reporting of risks across the Bank. lendings

- Assessing the position of Bank’s Risk Weighted Assets (RWAs) in line with the applicable standards under Basel for computation of capital ------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------
requirement(s) for the Bank.
Public / Government - - -
Private 34,447,852 - -
The latter half of 2024 marked a period of stability for the global economy, as Central Banks around the globe began reducing their rates, 34,447,852 - -
signalling a potential shift in the global economic cycle and monetary policy approach.
47.1.2 Investment in debt securities
2024
The year marked a return to macroeconomic stability, with declining inflation, stable exchange rate, a primary balance surplus, and a minimal Non-
current account deficit. Consequently, State Bank of Pakistan cumulatively decreased 900 basis points in its policy rate in the year 2024, in Gross
Credit risk by industry sector performing Credit loss allowance held
response to falling inflation and to stimulate economic activity . investments
investments
Stage 1 Stage 2 Stage 3 Total
The banking sector has been resilient and has grown tremendously in the past year and has managed to expand its asset base, largely weighed ------------------------------------------------------------------------------------------ (Rupees in '000) -------------------------------------------------------------------------
by investments, while advances have also shown substantial growth. Bank lending to the private sector surged, while the public sector continued
to avail additional financing. Profitability witnessed a significant growth on back of Net Interest Income. Chemical and pharmaceuticals 528,106 28,108 135 - 28,108 28,243
Financial 5,769,429,669 360,000 30,121 1,556,327 360,000 1,946,448
47.1 Credit risk Food 912 912 - - 912 912
Production and transmission of energy 18,396,008 - - 808,278 - 808,278
Credit risk is the risk that a customer or counterparty may not settle an obligation for full value, either when due or at any time thereafter. This risk Metal and allied 78,125 - 15 - - 15
arises from the potential that a customer's or counterparty’s willingness or ability to meet such an obligation is impaired, resulting in an economic Textile 229,263 229,263 - - 229,263 229,263
loss to the Bank. Others 2,823,628 - 948 - 948
5,791,485,711 618,283 31,219 2,364,605 618,283 3,014,107
The credit risk management process is driven by the Bank's Risk Management Policy, Credit Policy for domestic operations, Collateral
Management Policy, Credit Policy of respective overseas operation, which provide guidance in relation to credit initiation, approval, documentation 2023
and disbursement, credit maintenance and remedial management process. Non-
Gross Provision
performing
Individual credit authorities are delegated to credit officers by the Group Executive - Risk & Credit Policy (authorized by BoD), according to their investments held
investments
seasoning / maturity. Approvals for Consumer loans are centralized, while approval authorities for overseas operations, Corporate, Commercial,
------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------
SME and Agri exposures are delegated at a Country / Regional level. Furthermore, credit authorities are also delegated to business teams in
various regions for Commercial, SME and Agri lending. All credit policy functions globally are centrally organized.
Chemical and pharmaceuticals 541,190 49,811 49,811
Financial 4,362,309,996 360,000 360,000
Concentration of credit risk exists if clients are engaged in similar activities or are located in the same geographical region or have comparable
Food 912 912 912
economic characteristics such that their ability to meet contractual obligations would be similarly affected by changes in economic, political or
Production and transmission of energy 17,979,314 - -
other conditions. The Bank manages, limits and controls concentrations of credit risk to individual counterparties and groups, and to industries,
Metal and allied 140,625 - -
where appropriate. Limits are also applied to portfolios or sectors where the Bank considers it appropriate to restrict credit risk concentrations, to
Textile 314,978 229,263 229,263
areas of higher risk, or to control the rate of portfolio growth. To manage cross border exposure, the bank has a Country Risk Policy in place which
provides the framework for managing Country and FI related risks. Others 2,878,619 1,397 1,397
4,384,165,634 641,383 641,383

73
72
146 United Bank Limited Annual Report 2024 147
 Notes to and forming part of the Unconsolidated Financial Statements Notes toFORMING
NOTES TO AND and forming part of the
PART OF THE UNCONSOLIDATED Unconsolidated
FINANCIAL STATEMENTS Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2024
For the
FOR THE YEARyear ended31,December
ENDED DECEMBER 2024 31, 2024 For the year ended December 31, 2024

2024 2023
Non- Non- Specific
Gross Gross
performing Credit loss allowance held performing Provision
investments advances
investments advances held
Stage 1 Stage 2 Stage 3 Total ------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------
Credit risk by public / private sector Agriculture 39,869,832 570,313 360,204
Airlines 4,030,362 541,988 541,988
Public / Government 5,780,277,708 - 898 - 618,283 619,181 Automobile and transportation equipment 17,463,046 123,217 121,342
Private 11,208,003 618,283 30,321 2,364,605 - 2,394,926 Education and medical 24,910,241 14,556,606 13,140,102
5,791,485,711 618,283 31,219 2,364,605 618,283 3,014,107 Cables 1,368,158 481,751 481,751
Cement 4,590,950 492,327 492,327
Chemical and pharmaceuticals 10,208,853 112,625 112,625
2023 Construction 15,109,461 4,224,696 4,215,026
Non- Contractors 95,860 - -
Gross Provision Electronics and electrical appliances 15,775,572 13,334,844 10,601,138
performing
investments held Engineering 750,184 6,000 6,000
investments
Fertilizer 1,588,246 14,372 7,622
------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------ Financial 22,257,756 2,690,299 2,690,299
Credit risk by public / private sector Food, tobacco and beverages 7,765,317 1,910,943 1,910,943
Glass and allied - - -
Public / Government 4,373,572,371 - - Hotel and tourism 9,485,463 669,906 669,906
Private 10,593,263 641,383 641,383 Individuals 53,844,716 5,981,258 4,265,561
4,384,165,634 641,383 641,383 Paper and allied 1,832,461 37,064 37,064
Production and transmission of energy 159,712,149 2,520,767 1,013,366
Shoes and leather garments 1,795,996 828,152 828,152
47.1.3 Advances Sugar 9,394,147 29,748 29,748
Metal and allied 7,663,731 1,350,868 408,613
2024
Telecommunication 41,498,040 - -
Non- Textile composite 44,644,860 3,558,063 3,558,063
Gross
Credit risk by industry sector performing Credit loss allowance held Textile 35,232,661 5,750,212 5,750,212
advances
advances Textile spinning 14,945,777 2,863,027 2,863,027
Stage 1 Stage 2 Stage 3 Total Textile weaving 2,679,116 146,232 146,232
--------------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------- Wholesale and retail trade 15,715,347 5,019,853 4,999,619
Others 152,839,369 37,725,389 33,081,357
Agriculture 275,734,417 660,312 118,864 61,123 551,904 731,891 717,067,671 105,540,520 92,332,287
Airlines 3,299,910 541,988 5,425 - 541,988 547,413
Automobile and transportation equipment 41,490,727 6,527,855 26,339 655,641 6,527,855 7,209,835 2024
Education and medical 116,358,274 14,427,837 3,000 1,784 14,427,837 14,432,621 Non-
Cables 820,927 406,751 2,661 - 406,751 409,412 Gross
performing Credit loss allowance held
Cement 39,427,138 - 7,121 17,116 - 24,237 advances
advances
Chemical and pharmaceuticals 110,732,085 112,625 16,678 29,652 112,625 158,955
Stage 1 Stage 2 Stage 3 Total
Construction 33,479,000 6,081,446 20,698 222,381 6,076,997 6,320,076
------------------------------------------------------------------------------------------ (Rupees in '000) --------------------------------------------------------------------------
Electronics and electrical appliances 19,158,986 13,043,157 9,505 26,257 10,305,162 10,340,924
Credit risk by public / private sector
Engineering 240,160 6,000 117 15,660 6,000 21,777
Fertilizer 4,700,728 22,271 14,198 220 19,112 33,530
Public / Government 470,275,453 999,450 1,689,157 444,979 22,349 2,156,485
Financial 135,942,642 2,668,316 772,401 439,623 2,668,316 3,880,340
Private 1,094,851,908 114,992,500 4,320,431 7,291,199 107,877,302 119,488,932
Food, tobacco and beverages 6,811,367 1,668,358 26,959 24 1,650,358 1,677,341
1,565,127,361 115,991,950 6,009,588 7,736,178 107,899,651 121,645,417
Glass and allied 432,433 - 3,860 - - 3,860
Hotel and tourism 8,522,263 770,670 20,426 14,599 770,670 805,695
Individuals 93,359,602 5,635,275 1,374,529 189,153 4,787,328 6,351,010 2023
Paper and allied 1,435,163 18,064 2,896 2,093 18,064 23,053 Non- Specific
Production and transmission of energy 152,060,404 2,251,178 631,355 872,635 1,706,657 3,210,647 Gross
performing Provision
Shoes and leather garments 1,941,913 875,612 3,825 1,992 875,612 881,429 advances
advances held
Sugar 62,488,619 13,248 253,972 - 13,248 267,220 ------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------
Metal and allied 9,411,152 3,547,124 40,471 82 2,604,869 2,645,422 Credit risk by public / private sector
Telecommunication 76,991,849 3,222,056 148,336 177 3,222,056 3,370,569
Textile composite 48,962,873 3,332,141 98,701 1,499,408 3,332,141 4,930,250 Public / Government 219,470,755 964,604 22,349
Textile 54,541,500 5,573,926 121,118 278,840 5,573,926 5,973,884 Private 497,596,916 104,575,916 92,309,938
Textile spinning 22,134,021 2,584,881 80,251 157,708 2,584,881 2,822,840 717,067,671 105,540,520 92,332,287
Textile weaving 2,172,353 133,991 4,076 79,626 133,991 217,693
Wholesale and retail trade 26,611,853 8,686,562 21,736 3,470 8,657,355 8,682,561
Others 215,865,002 33,180,306 2,180,070 3,166,914 30,323,948 35,670,932
1,565,127,361 115,991,950 6,009,588 7,736,178 107,899,651 121,645,417

75

74
148 United Bank Limited Annual Report 2024 149
Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
For TO
NOTES theANDyear
FORMINGended December
PART OF THE 31,
UNCONSOLIDATED 2024STATEMENTS
FINANCIAL NOTESthe
For TO AND FORMING
year endedPART December
OF THE UNCONSOLIDATED
31, 2024 FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 FOR THE YEAR ENDED DECEMBER 31, 2024

47.1.6 Advances - Province / Region-wise Disbursement & Utilisation

2024 2023
------- (Rupees in '000) -------
2024
47.1.4 Contingencies and Commitments Utilisation
Province / Region Disburse-
KPK including AJK including
Credit risk by industry sector ments Punjab Sindh Balochistan Islamabad
FATA Gilgit-Baltistan
Agri business 47,675,276 61,910,577
--------------------------------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------------------------
Airlines 701,407 146,972
Automobile and transportation equipment 34,334,323 8,104,503 Punjab 754,018,770 754,018,770 - - - - -
Cables 590,684 761,688 Sindh 653,255,392 - 653,255,392 - - - -
KPK including FATA 580,446 - - 580,446 - - -
Cement 24,576,331 10,970,043 Balochistan 2,494,308 - - - 2,494,308 - -
Chemical and pharmaceuticals 114,013,140 7,836,473 Islamabad 153,608,772 - - - - 153,608,772 -
Construction 55,620,268 20,447,024 AJK including Gilgit-Baltistan 42,682 - - - - - 42,682
Total 1,564,000,370 754,018,770 653,255,392 580,446 2,494,308 153,608,772 42,682
Contractors 16,592,159 19,344,346
Electronics and electrical appliances 15,917,539 6,012,816 2023
Engineering 6,312,074 6,948,442 Utilisation
Fertilizer dealers 28,121,284 19,636,147 Province / Region Disburse-
KPK including AJK including
ments Punjab Sindh Balochistan Islamabad
Financial 681,377,492 622,151,757 FATA Gilgit-Baltistan
Food, tobacco and beverages 21,983,965 13,526,395 --------------------------------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------------------------
Glass and allied 676,722 136,874
Hotel and tourism 2,375,535 1,064,119 Punjab 348,177,061 348,177,061 - - - - -
Sindh 279,441,191 - 279,441,191 - - - -
Individuals 23,376,647 19,453,910 KPK including FATA 1,424,469 - - 1,424,469 - - -
Paper and allied 4,478,131 3,497,866 Balochistan 114,525 - - - 114,525 - -
Polyester and fiber 3,707,328 4,214,793 Islamabad 56,846,157 - - - - 56,846,157 -
AJK including Gilgit-Baltistan 88,965 - - - - - 88,965
Production and transmission of energy 261,949,358 220,094,251
Total 686,092,368 348,177,061 279,441,191 1,424,469 114,525 56,846,157 88,965
Shoes and leather garments 1,703,028 1,374,174
Sugar 4,864,721 801,482
47.2 Market Risk
Telecommunication 16,862,904 10,195,604
Textile 84,184,116 57,665,189 Market risk is the risk of changes in market conditions that may adversely impact the value of assets or liabilities, following a
Wholesale traders 8,139,301 4,597,270 negative impact on earnings. Market risk mainly arises from trading activities carried out by Treasury and Capital Market
Others 341,440,951 194,313,792 (TCM) like lending / borrowing, Investments and client facilitating activities.
1,801,574,684 1,315,206,507
Credit risk by public / private sector To ensure effective management of Market Risk, a robust Risk Management Policy, which includes management of market
Public / Government 402,453,384 439,325,265 risk, has been formulated and sanctioned by the Board of Directors. This policy delineates the appropriate risk metrics, control
Private 1,399,121,300 875,881,242 mechanisms, and methodologies employed for proactive market risk management.
1,801,574,684 1,315,206,507
The Bank carries out market risk management through effective risk measurement tools including Value at Risk (VaR), Price
47.1.5 Concentration of Advances Value per Basis Point (PVBP), Duration, Beta, and Expected Shortfall on regular basis. Bank also ascertains the impact of
changes in market factors on Bank’s earnings through regular stress testing and Internal Capital Adequacy Assessment
The Bank's top 10 exposures on the basis of total (funded and non-funded exposures) aggregated to Rs. 846,033 million (2023: Rs. 478,848 Processes (ICAAP).
million) are as follows:
47.2.1 Balance sheet split by trading and banking books
2024 2023
------- (Rupees in '000) -------
2024 2023
Banking Trading Banking Trading
Funded 650,326,358 166,962,464 Total Total
book book book book
Non Funded 195,706,719 311,886,407 ------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------
Total Exposure 846,033,077 478,848,871
Cash and balances with treasury banks 309,745,911 - 309,745,911 277,330,217 - 277,330,217
The sanctioned limits against these top 10 exposures aggregated to Rs. 1,037,771 million (2023: Rs. 531,971 million). Balances with other banks 59,968,246 - 59,968,246 30,700,751 - 30,700,751
Lendings to financial institutions 18,492,483 - 18,492,483 34,447,852 - 34,447,852
Investments 1,647,791,198 4,239,103,305 5,886,894,503 1,325,708,609 3,059,508,062 4,385,216,671
None of the exposure against these top 10 exposures is classified.
Advances 1,443,481,944 - 1,443,481,944 613,565,526 - 613,565,526
Property and equipment 85,246,731 - 85,246,731 65,087,643 - 65,087,643
For the purpose of this note, exposure means outstanding funded facilities and utilised non-funded facilities as at the reporting date. Right-of-use assets 9,896,084 - 9,896,084 8,497,029 8,497,029
Intangible assets 2,481,475 - 2,481,475 2,458,834 - 2,458,834
Deferred tax assets - - - - - -
Other assets 246,924,757 - 246,924,757 157,692,979 - 157,692,979
3,824,028,829 4,239,103,305 8,063,132,134 2,515,489,440 3,059,508,062 5,574,997,502

150 United Bank Limited Annual Report 2024 151

76 77
Notes to and forming part of the Unconsolidated Financial Statements

(200,000) (1,086,462,313)

(200,000) (1,086,462,313)
bearing financial

282,214,016
47,796,370

18,540,547
17,886,189
233,385,308
599,822,430

784,866
44,221,818

1,509,507,336
12,008,797

119,761,926

566,469,886
1,686,284,743
Non-interest

instruments

-
-

-
-
-
-

-
-
-
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

47.2.2 Foreign Exchange Risk

200,000

200,000

1,652,932,199
Over 10 years

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

-
-
-
-

-
-

-
-
-

-
-

-
-

-
-

-
-
-
Foreign exchange (FX) risk arises from the fluctuation in the value of assets and liabilities due to the changes in foreign
exchange rates.

The FX risk and associated concentration risk is managed through approved currency wise net open position limits, tenor and

69,977,894
19,868,152

89,846,046

17,587,110
2,296,841

19,883,951

69,962,095

69,962,095

1,653,132,199
Over 5 years to
currency wise Gap limits and an overall Foreign Exchange Exposure Limit (FEEL).

-
-
-

-
-
-

-
-

-
-

-
-
-
10 years
The currency risk is effectively monitored against the applicable regulatory limits. Market risk monitors the FX exposure to
ensure that it remains within the limits prescribed by SBP and internal limits approved by GALCO.

Over 6 months to Over 1 year to 2 Over 2 years to 3 Over 3 years to 5

353,309,225
8,963,938

362,273,163

6,574,226
2,756,029

9,330,255

352,942,908

352,942,908

1,583,170,104
-
-
-

-
-
-

-
-

-
-

-
-
-
2024 2023

years
Foreign Foreign Net foreign Foreign Foreign Net foreign
Off-balance Off-balance
Currency Currency currency Currency Currency currency
sheet items sheet items
Assets Liabilities exposure Assets Liabilities exposure

Notes to and forming part of the Unconsolidated Financial Statements

470,536,853
2,435,941

472,972,794

2,426,323
6,490,400

8,916,723

464,056,071

464,056,071

1,230,227,196
---------------------------------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------------------------

-
-
-

-
-
-

-
-

-
-

-
-
-
years
United States Dollar 390,743,192 207,749,537 (183,932,859) (939,204) 254,928,806 130,642,988 (125,560,342) (1,274,524)

Exposed to yield / interest rate risk

Great Britain Pound 2,141,638 16,222,269 14,090,143 9,512 3,944,508 15,836,808 11,909,072 16,772
Japanese Yen 5,480 221,517 212,403 (3,634) 9,038 219,538 211,086 586

551,133,261
5,106,073

556,239,334

1,688,052
1,772,020

3,460,072

552,779,262

552,779,262

766,171,125
Euro 2,742,496 18,579,385 15,853,031 16,142 4,115,991 15,446,741 11,172,637 (158,113)

-
-
-

-
-
-

-
-

-
-

-
-
-
UAE Dirham 271,660,686 404,871,579 132,592,756 (618,137) 203,362,212 275,837,544 73,244,044 768,712

years
Bahraini Dinar 13,696,018 42,480,832 28,001,813 (783,001) 13,118,985 43,475,886 32,157,881 1,800,980
Qatari Riyal 36,000,718 55,174,415 19,218,594 44,897 39,308,930 52,195,508 12,837,243 (49,335)

2024
Other Currencies 29,183,092 25,109,030 (4,058,452) 15,610 15,446,888 17,509,585 1,891,669 (171,028)

(508,663)
746,173,320 770,408,564 21,977,429 (2,257,815) 534,235,358 551,164,598 17,863,290 934,050

321,878,483
52,364,062

374,242,545

269,549
72,164,680

2,508,121
72,434,229

301,808,316

1,999,458

303,807,774

213,391,863
-
-
-

-
-
-

-
-
1 year
2024 2023
Banking Trading Banking Trading
book book book book
----------------------------------------------------- (Rupees in '000) -----------------------------------------------------

(94,024,477)

(90,415,911)
Over 3 months to

15,842,600
3,490,053,762
131,789,813

3,621,843,575

92,427,041
39,272,296
275,658,080

14,245,164
314,930,376

3,306,913,199

3,321,158,363
Impact of 1% change in foreign exchange rates on

-
-
-

-
-

-
-
-

-
-
6 months
- Profit and loss account - - - -
- Other comprehensive income 22,578 - (9,341) -

79
47.2.3 Equity Position Risk

(93,157,410)

(3,411,574,274)
2,693,859

588,311,866

15,417,840
906,265,964

1,497,271,689

96,020,496
64,748,742
680,161,994

744,910,736

752,360,953

18,280,926

770,641,879
Over 1 month to 3

-
-

-
-
-

-
-
Equity risk is the risk that the fair value of an equity instrument will fluctuate due to changes in the prices of individual stocks

NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS

months
or market indices.

To manage equity risk, The Bank has a well-defined criterion for identifying the Investible Universe based on the Market
Capitalization, Liquidity & Average Daily Traded Volumes.

(22,585,000)

(92,565,232)
(4,443,769,642)

(4,182,216,153)

(4,182,216,153)
27,531,895
9,478,017
18,492,483
23,152,612

265,441,250
298,801,812

377,456,819

89,404,109

111,262,471
10,000,000
4,721,822,352

261,553,489
4,821,226,461
For the year ended December 31, 2024

Upto 1 month

-
-
The Bank has an active and regular monitoring mechanism for utilization against approved portfolio limits, scrip wise limits,
sector limits and timely escalation of Management Action Trigger (MAT) levels.
2024 2023

Mismatch of interest rate sensitive assets and liabilities

Banking Trading Banking Trading

(22,585,000)

(280,255,782)
309,745,911
59,968,246
18,492,483

296,701,690
5,886,894,503
1,443,481,944
233,385,308
7,951,968,395

44,221,818

12,008,797

302,218,129
4,855,373,516
2,640,211,489

10,000,000
119,761,926

296,079,037
7,681,577,546

270,390,849
book book book book

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

Total
Impact of 5% change in equity prices on,
- Profit and loss account - - - -

Cumulative Yield / Interest Rate Risk Sensitivity Gap

- Other comprehensive income 47,594 1,022,635 30,812 538,297

20.03%
18.13%
15.10%

19.38%

13.36%
21.31%
Effective

interest

1.25%
5.00%

7.88%
yield /

Total Yield / Interest Rate Risk Sensitivity Gap

rate
%
47.2.4 Yield / Interest Rate Risk in the Banking Book (IRRBB) - Basel II Specific

FOR THE YEAR ENDED DECEMBER 31, 2024

Forward Government Securities - Purchase

Off-balance sheet financial instruments
On-balance sheet financial instruments
Interest rate risk is the risk that fair value of a financial instrument will fluctuate as a result of changes in interest rates,

Cash and balances with treasury banks

Forward Government Securities - Sale

including changes in the shape of yield curves. Interest rate risk is inherent in the overall business of the Bank and arises

Foreign currency forward - Purchase

from mismatches between the contractual maturities and the re-pricing of on and off-balance sheet assets and liabilities.

Foreign currency forward - Sale

Lendings to financial institutions

Deposits and other accounts

Balances with other banks
Interest rate risk is monitored and managed by performing periodic gap analysis, sensitivity analysis and stress testing. In

Off-balance sheet Gap

On-balance sheet gap

FX Options - Purchase
case of any distressed event the results and corresponding action plan is presented at the relevant management / BoD
committee.

Subordinated debt

FX Options - Sale
Lease liabilities

Other liabilities
2024 2023

Other assets

Bills payable
Investments

Borrowings
Liabilities
Banking Trading Banking Trading

Advances
Assets
book book book book
----------------------------------------------------- (Rupees in '000) -----------------------------------------------------
Impact of 1% change in interest rates on
- Profit and loss account - 201,828 - 194,691
47.2.5

- Other comprehensive income 32,387,768 8,887,116 22,655,407 17,862,013

152 United Bank Limited Annual Report 2024 153

78
 Notes to and forming part of the Unconsolidated Financial Statements

154
NOTES
For TOthe
ANDyear ended
FORMING December
PART OF THE 31,
UNCONSOLIDATED FINANCIAL
2024STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024

2023
Effective Exposed to yield / interest rate risk
Non-interest
yield /
Total Over 1 month to 3 Over 3 months to Over 6 months to Over 1 year to 2 Over 2 years to 3 Over 3 years to 5 Over 5 years to bearing financial
interest Upto 1 month Over 10 years
months 6 months 1 year years years years 10 years instruments
rate

United Bank Limited

% ---------------------------------------------------------------------------------------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------------------------------------------------------------------------------
On-balance sheet financial instruments

Assets
Cash and balances with treasury banks 1.08% 277,330,217 19,968,836 - - - - - - - - 257,361,381
Balances with other banks 4.54% 30,700,751 3,024,366 2,818,607 - 1,192,117 - - - - - 23,665,661
Lendings to financial institutions 19.55% 34,447,852 34,447,852 - - - - - - - - -
Investments 17.28% 4,385,216,671 105,204,180 331,678,208 947,163,120 1,944,137,583 231,257,197 490,679,482 240,250,344 78,475,176 73,375 16,298,006
Advances 16.59% 613,565,526 118,995,597 314,457,531 122,315,819 4,882,552 4,272,567 5,026,415 10,321,880 17,876,446 1,502,447 13,914,272
Other assets 153,826,657 - - - - - - - - - 153,826,657
5,495,087,674 281,640,831 648,954,346 1,069,478,939 1,950,212,252 235,529,764 495,705,897 250,572,224 96,351,622 1,575,822 465,065,977
Liabilities
Bills payable 21,651,784 - - - - - - - - - 21,651,784
Borrowings 20.14% 2,815,470,554 2,746,071,703 30,201,166 5,109,196 254,135 907,970 2,511,768 7,795,661 21,895,986 129,225 593,744
Deposits and other accounts 8.05% 2,350,540,823 87,017,290 969,076,775 53,999,015 103,296,075 6,555,810 1,750,009 7,392,800 3,575,826 - 1,117,877,223
Lease liabilities 12.65% 10,339,867 - - - - - - - - - 10,339,867
Subordinated debt 22.36% 10,000,000 10,000,000 - - - - - - - - -
Other liabilities 64,887,789 - - - - - - - - - 64,887,789
5,272,890,817 2,843,088,993 999,277,941 59,108,211 103,550,210 7,463,780 4,261,777 15,188,461 25,471,812 129,225 1,215,350,407

On-balance sheet Gap 222,196,857 (2,561,448,162) (350,323,595) 1,010,370,728 1,846,662,042 228,065,984 491,444,120 235,383,763 70,879,810 1,446,597 (750,284,430)

Off-balance sheet financial instruments

FX Options - Purchase 183,034 123,349 59,685 - - - - - - - -
FX Options - Sale (183,034) (123,349) (59,685) - - - - - - - -
Forward Government Securities - Purchase 16,956,300 1,597 16,954,703 - - - - - - - -
Forward Government Securities - Sale (3,000,000) (3,000,000) - - - - - - - - -
Foreign currency forward - Purchase 278,930,255 110,724,095 120,086,940 45,090,510 3,028,710 - - - - - -
Foreign currency forward - Sale (261,070,854) (100,103,190) (106,388,768) (51,840,917) (2,737,979) - - - - - -
Off-balance sheet Gap 31,815,701 7,622,502 30,652,875 (6,750,407) 290,731 - - - - - -

Total Yield / Interest Rate Risk Sensitivity Gap (2,553,825,660) (319,670,720) 1,003,620,321 1,846,952,773 228,065,984 491,444,120 235,383,763 70,879,810 1,446,597 (750,284,430)

Cumulative Yield / Interest Rate Risk Sensitivity Gap (2,553,825,660) (2,873,496,380) (1,869,876,059) (22,923,286) 205,142,698 696,586,818 931,970,581 1,002,850,391 1,004,296,988 254,012,558

80

Notes to and forming part of the Unconsolidated Financial Statements

NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

47.2.5.1 Reconciliation of Assets and Liabilities exposed to yield / interest rate risk with Total Assets and Liabilities

2024 2023 2024 2023

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

Total financial assets as per note 45.3.5 7,951,968,395 5,495,087,674 Total financial liabilities as per note 45.3.5 7,681,577,546 5,272,890,817
Add: Non financial assets Add: Non financial liabilities
Property and equipment 85,246,731 65,087,643 Other liabilities 26,373,276 47,684,265
Right-of-use assets 9,896,084 8,497,029
Intangible assets 2,481,475 2,458,834 Deferred tax liabilities 38,959,061 1,921,889
Deferred tax assets - -
Other assets 13,539,449 3,866,322
Total assets as per statement of financial position 8,063,132,134 5,574,997,502 Total liabilities as per statement of financial position 7,746,909,883 5,322,496,971

47.3 Operational risk

Operational risk is recognized as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.

In compliance with the Regulatory Guidelines, an Operational Risk Division is established within Risk & Credit Policy Group. Operational Risk Division is primarily responsible for the oversight of
operational risk management across the Bank including International locations. The implementation of operational risk management framework is supported by operational risk management system and
designated operational risk coordinators within different units across the Bank. The framework is in line with regulatory guidelines, international best practices, flexible enough to implement in stages and
permits the overall approach to evolve in response to organizational learning and future requirements.

In accordance with the Operational Risk framework, a database covering losses, control breaches and near misses is being maintained by the division. Major risk events are analysed from the control
breach perspective and mitigating controls are assessed on design and operating effectiveness. Quarterly updates on Operational Risk events are being presented to the Senior Management and Board
Risk & Compliance Committee of the Bank. Periodic workshops are conducted for Risk & Control Self-Assessment and key risk exposures are identified and assessed against existing controls to evaluate
improvement opportunities. Key Risk Indicators are also defined for monitoring of risk exposures. New products, systems, activities and processes, are subject to comprehensive operational risk
assessments, before implementation.

Business Continuity Plans have been implemented across the Bank, clearly defining the roles and responsibilities of respective stakeholders, and covering recovery strategy, IT and structural backups,
scenario and impact analyses and testing directives. Business Continuity Plans (BCP) for respective areas are in place and tested under domain of Operations Group.

47.4 Liquidity risk

Liquidity risk is defined as the risk that a bank, though solvent, either does not have sufficient financial resources available to meet all its obligations and commitments as they fall due, or can secure them
only at excessive costs.
Annual Report 2024 155

81
 Notes to and forming part of the Unconsolidated Financial Statements

156
NOTES
For TOthe FORMING
ANDyear PART OF THE
ended UNCONSOLIDATED
December 31,FINANCIAL
2024STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024

UBL actively manages the risk through a set of qualitative and quantitative risk management techniques. The Global Assets and Liabilities Management Committee (GALCO) of the Bank is
responsible for the oversight of liquidity management and meets at least on a monthly basis or more frequently, if required. A centralized approach is adopted, based on an integrated
framework incorporating an assessment of all material known and expected cash flows and the availability of collateral which could be used to secure additional funding if required. The
framework entails careful monitoring and control of the daily liquidity position, and regular liquidity stress testing under a variety of scenarios. These encompass both normal and stressed

United Bank Limited

market conditions, including general market crises and the possibility that access to markets could be impacted by a stress event affecting some part of the Bank’s business.

It is the Bank’s policy to maintain adequate liquidity at all times, in order to meet all obligations, repay depositors and fulfill commitments to lend under both normal and stressed conditions,
without incurring unacceptable losses or incurring damage to the business franchises. Liquidity risk measures comprises of various risk management tools including concentration ratios,
Liquidity Coverage Ratio (LCR), Net Stable Funding Ratio (NSFR) and liquidity gaps.

The Bank has a comprehensive Contingency Funding Plan in place which clearly defines and identifies the trigger events that could cause a liquidity crisis and describes the actions to be
taken to manage the crisis and return the Bank to business as usual.

47.4.1 Maturities of assets and liabilities - based on contractual maturity of the assets and liabilities of the Bank
2024
Over 9
Over 1 to 7 Over 7 to 14 Over 14 days to 1 Over 1 to 2 Over 2 to 3 Over 3 to 6 Over 6 to 9 Over 1 to 2 Over 2 to 3 Over 3 to 5
Total Upto 1 Day months to 1 Over 5 Years
days days Month Months Months Months Months years years Years
year
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Assets
Cash and balances with
treasury banks 309,745,911 - 24,880,044 - 284,865,867 - - - - - - - - -
Balances with other banks 59,968,246 9,951,821 9,388,184 - 40,628,241 - - - - - - - - -
Lendings to financial institutions 18,492,483 - 18,492,483 - - - - - - - - - - -
Investments 5,886,894,503 256,975 - 3,714,376 98,121,826 1,588,208 8,527,921 440,035,183 170,915,031 160,831,307 600,926,620 481,939,250 1,020,777,992 2,899,259,814
Advances 1,443,481,944 236,801,157 25,681,958 48,884,976 439,093,785 33,752,061 30,375,024 123,579,099 20,439,826 120,222,224 27,556,175 49,355,415 133,072,297 154,667,947
Property and equipment 85,246,731 124 - - 561,367 656,090 655,898 1,931,852 253,823 370,609 2,314,199 4,709,767 8,116,837 65,676,165
Right-of-use assets 9,896,084 6,370 38,197 44,563 108,225 196,238 193,673 547,536 551,263 474,337 1,885,084 1,436,837 2,174,638 2,239,123
Intangible assets 2,481,475 23 - - 212 1,422 1,457 300,773 41,360 41,548 567,144 636,532 849,976 41,028
Deferred tax asset - - - - - - - - - - - - - -
Other assets 246,924,757 20,680,568 671,116 698,789 18,111,296 4,319,669 7,459,116 31,234,116 7,105,639 5,564,069 12,857,564 18,174,298 34,758,793 85,289,724
8,063,132,134 267,697,038 79,151,982 53,342,704 881,490,819 40,513,688 47,213,089 597,628,559 199,306,942 287,504,094 646,106,786 556,252,099 1,199,750,533 3,207,173,801
Liabilities
Bills payable 44,221,818 - 117,295 - 44,104,523 - - - - - - - - -
Borrowings 4,855,373,516 49,933,585 1,763,525,433 5,106,493 2,913,007,975 52,330,404 2,910,379 39,813,986 173,230 96,320 1,688,052 2,426,323 6,574,226 17,787,110
Deposits and other accounts 2,640,211,489 51,405,412 7,452,647 4,150,184 2,462,902,360 18,696,910 12,645,373 21,273,402 11,937,751 5,794,882 20,109,070 9,315,179 4,894,292 9,634,027
Lease liabilities 12,008,797 23,832 102,776 119,906 291,199 469,156 424,696 1,123,670 968,594 759,314 2,446,406 1,702,666 1,979,187 1,597,395
Subordinated debt 10,000,000 - - - - - - - - - - - - 10,000,000
Deferred tax liabilities 38,959,061 - - - 38,959,061 - - - - - - - - -
Other liabilities 146,135,202 1,450,198 2,662,116 842,021 15,389,628 3,835,838 14,136,795 86,488,159 4,997,203 4,421,864 5,296,136 5,617,205 718,590 279,449
7,746,909,883 102,813,027 1,773,860,267 10,218,604 5,474,654,746 75,332,308 30,117,243 148,699,217 18,076,778 11,072,380 29,539,664 19,061,373 14,166,295 39,297,981
Net assets 316,222,251 164,884,011 (1,694,708,285) 43,124,100 (4,593,163,927) (34,818,620) 17,095,846 448,929,342 181,230,164 276,431,714 616,567,122 537,190,726 1,185,584,238 3,167,875,820
Share capital 12,241,797
Reserves 114,734,831
Surplus on revaluation of assets 77,289,805
Unappropriated profit 111,955,818
316,222,251

82

Notes to and forming part of the Unconsolidated Financial Statements

NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

2023
Over 9
Over 1 to 7 Over 7 to 14 Over 14 days to 1 Over 1 to 2 Over 2 to 3 Over 3 to 6 Over 6 to 9 Over 1 to 2 Over 2 to 3 Over 3 to 5
Total Upto 1 Day months to 1 Over 5 Years
days days Month Months Months Months Months years years Years
year
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Assets
Cash and balances with
treasury banks 277,330,217 - 8,068,190 2,616,640 266,645,387 - - - - - - - - -
Balances with other banks 30,700,751 8,384,948 - - 11,379,611 - 2,818,606 1,268,373 1,212,001 - 5,637,212 - - -
Lendings to financial institutions 34,447,852 - 34,447,852 - - - - - - - - - - -
Investments 4,385,216,671 - 9,293,961 8,195 19,095,883 11,651,957 8,562,239 48,939,350 210,943,835 1,845,025,505 342,770,174 545,891,684 874,306,946 468,726,942
Advances 613,565,526 57,290,409 21,137,117 15,752,275 50,818,604 29,159,016 31,559,306 52,590,351 8,252,423 27,314,419 48,138,819 35,703,048 110,267,416 125,582,323
Property and equipment 65,087,643 - - - 850,045 - 600,279 1,006,207 570,373 36,094 1,857,803 2,836,028 4,984,647 52,346,167
Right-of-use assets 8,497,029 4,595 30,791 35,892 33,699 149,467 149,467 425,726 424,639 424,639 1,613,043 1,297,551 1,864,797 2,042,723
Intangible assets 2,458,834 2,455 14,602 17,036 41,373 75,355 74,781 207,863 207,673 182,104 868,927 583,353 153,290 30,022
Deferred tax assets - - - - - - - - - - - - - -
Other assets 157,692,979 7,613,634 21,162,205 3,860,312 10,325,640 29,099,588 9,804,534 58,274,536 495,916 444,372 5,029,618 1,652,120 6,482,650 3,447,854
5,574,997,502 73,296,041 94,154,718 22,290,350 359,190,242 70,135,383 53,569,212 162,712,406 222,106,860 1,873,427,133 405,915,596 587,963,784 998,059,746 652,176,031

Liabilities
Bills payable 21,651,784 118,712 - - 21,533,072 - - - - - - - - -
Borrowings 2,815,470,554 595,218 6,366,198 2,022,087,076 717,616,956 8,818,878 21,388,688 5,102,796 64,831 89,110 957,755 2,172,607 8,185,231 22,025,210
Deposits and other accounts 2,350,540,823 4,632,515 9,766,224 7,617,613 1,928,133,202 191,387,979 32,222,402 52,031,050 52,617,562 52,181,374 7,165,179 1,817,098 7,392,800 3,575,825
Lease liabilities 10,339,867 185,073 - - - - 237,008 374,044 895,458 1,593,209 1,466,127 2,477,880 2,917,811 193,257
Subordinated debt 10,000,000 - - - - - - - - - - - - 10,000,000
Deferred tax liabilities 1,921,889 - - - 1,921,889 - - - - - - - - -
Other liabilities 112,572,054 17,325,752 8,156,836 4,943,080 3,021,982 4,601,268 27,708,016 14,693,554 4,701,933 5,101,784 10,584,121 252,290 1,409,125 10,072,313
5,322,496,971 22,857,270 24,289,258 2,034,647,769 2,672,227,101 204,808,125 81,556,114 72,201,444 58,279,784 58,965,477 20,173,182 6,719,875 19,904,967 45,866,605

Net assets 252,500,531 50,438,771 69,865,460 (2,012,357,419) (2,313,036,859) (134,672,742) (27,986,902) 90,510,962 163,827,076 1,814,461,656 385,742,414 581,243,909 978,154,779 606,309,426

Share capital 12,241,797

Reserves 107,800,978
Surplus on revaluation of assets 41,965,460
Unappropriated profit 90,492,296
252,500,531

83
Annual Report 2024 157
 Notes to and forming part of the Unconsolidated Financial Statements

158
For
NOTES the FORMING
TO ANDyear PART OF THE
ended UNCONSOLIDATED
December 31,FINANCIAL
2024 STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024

47.4.2 Maturities of assets and liabilities - based on expected maturities of the assets and liabilities of the Bank

Assets and Liabilities having contractual maturity dates are bucketed as per their respective maturities. The maturity profile of non-contractual deposits and bills payable is estimated using
an Exponentially Weighted Moving Average model based on historical data. The methodology and the assumptions used to derive the maturity profile of non-contractual liabilities has been

United Bank Limited

approved by GALCO.

2024
Over 3
Over 1 month Over 6 months Over 1 year Over 2 years Over 3 years Over 5 years
Total Upto 1 month months to 6 Over 10 years
to 3 months to 1 year to 2 years to 3 years to 5 years to 10 years
months
--------------------------------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------------------------
Assets
Cash and balances with treasury banks 309,745,911 159,380,948 27,088,108 26,541,760 36,515,233 53,487,507 485,042 769,165 4,172,146 1,306,002
Balances with other banks 59,968,246 59,968,246 - - - - - - - -
Lendings to financial institutions 18,492,483 18,492,483 - - - - - - - -
Investments 5,886,894,503 7,272,517 10,131,755 440,394,005 345,369,984 600,180,249 482,353,507 1,016,389,696 2,902,748,356 82,054,434
Advances 1,443,481,944 756,332,965 70,075,547 133,225,987 150,174,382 43,884,322 68,219,763 102,241,206 105,126,389 14,201,383
Property and equipment 85,246,731 582,537 1,270,066 2,369,972 507,013 2,806,074 3,918,068 8,124,876 4,755,769 60,912,356
Right-of-use assets 9,896,084 197,356 389,910 547,536 1,025,600 1,885,084 1,436,837 2,174,638 2,239,123 -
Intangible assets 2,481,475 235 2,878 306,184 82,909 567,147 631,119 864,882 26,121 -
Deferred tax asset - - - - - - - - - -
Other assets 246,924,757 27,334,393 22,640,578 23,717,996 13,348,967 13,745,847 19,658,166 32,343,931 24,700,565 69,434,314
8,063,132,134 1,029,561,680 131,598,842 627,103,440 547,024,088 716,556,230 576,702,502 1,162,908,394 3,043,768,469 227,908,489
Liabilities
Bills payable 44,221,818 14,679,381 10,746,051 18,790,575 5,811 - - - - -
Borrowings 4,855,373,516 4,722,607,219 64,748,741 39,272,296 269,549 1,688,052 2,426,323 6,574,226 17,587,110 200,000
Deposits and other accounts 2,640,211,489 498,546,393 376,108,847 348,756,425 483,116,013 673,413,151 43,335,761 61,199,049 151,088,866 4,646,984
Lease liabilities 12,008,797 537,712 893,852 1,123,670 1,727,908 2,446,406 1,702,666 1,979,187 1,515,830 81,566
Subordinated debt 10,000,000 - - - - - - - 10,000,000 -
Deferred tax liabilities 38,959,061 - - - 9,739,764 9,739,765 9,739,766 9,739,766 - -
Other liabilities 146,135,202 61,605,464 26,928,041 11,574,330 21,987,547 9,230,287 5,948,678 282,557 4,044,969 4,533,329
7,746,909,883 5,297,976,169 479,425,532 419,517,296 516,846,592 696,517,661 63,153,194 79,774,785 184,236,775 9,461,879
Net assets 316,222,251 (4,268,414,489) (347,826,690) 207,586,144 30,177,496 20,038,569 513,549,308 1,083,133,609 2,859,531,694 218,446,610

Share capital 12,241,797

Reserves 114,734,831
Surplus on revaluation of assets 77,289,805
Unappropriated profit 111,955,818
316,222,251

84

Notes to and forming part of the Unconsolidated Financial Statements

ForNOTES AND FORMING
theTOyear ended OF THE UNCONSOLIDATED
PARTDecember 31, 2024FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024

2023
Over 3
Over 1 month Over 6 months Over 1 year Over 2 years Over 3 years Over 5 years
Total Upto 1 month months to 6 Over 10 years
to 3 months to 1 year to 2 years to 3 years to 5 years to 10 years
months
--------------------------------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------------------------
Assets
Cash and balances with treasury banks 277,330,217 142,975,648 10,675,676 10,462,587 15,145,941 21,069,986 16,167,569 23,868,881 35,644,777 1,319,152
Balances with other banks 30,700,751 26,690,027 2,818,606 - 1,192,118 - - - - -
Lendings to financial institutions 34,447,852 34,447,852 - - - - - - - -
Investments 4,385,216,671 12,371,663 19,577,931 47,056,957 1,776,405,169 645,002,683 568,891,456 859,212,495 450,113,269 6,585,048
Advances 613,565,526 152,797,081 60,360,031 48,530,289 34,967,323 47,914,630 35,868,267 108,899,642 94,434,929 29,793,334
Property and equipment 65,087,643 826,308 674,267 985,384 533,157 2,146,231 2,359,000 4,985,318 1,937,069 50,640,909
Right-of-use assets 8,497,029 104,978 298,934 425,726 849,278 1,613,043 1,297,551 1,864,797 1,910,304 132,418
Intangible assets 2,458,834 75,445 150,135 204,415 389,202 863,636 604,914 169,984 1,103 -
Deferred tax asset - - - - - - - - - -
Other assets 157,692,979 40,092,612 41,656,298 57,498,309 1,398,828 5,662,730 1,843,915 5,636,735 2,427,175 1,476,377
5,574,997,502 410,381,614 136,211,878 165,163,667 1,830,881,016 724,272,939 627,032,672 1,004,637,852 586,468,626 89,947,238
Liabilities
Bills payable 21,651,784 9,072,570 6,885,863 5,598,163 95,188 - - - - -
Borrowings 2,815,470,554 2,746,665,448 30,201,166 5,109,196 254,135 907,970 2,511,768 7,795,661 21,895,986 129,224
Deposits and other accounts 2,350,540,823 251,236,580 189,677,475 197,576,759 316,650,054 300,271,431 226,658,322 355,915,376 510,948,145 1,606,681
Lease liabilities 10,339,867 184,807 190,418 374,635 765,155 1,468,705 1,372,413 2,373,973 3,350,637 259,124
Subordinated debt 10,000,000 - - - - - - - 10,000,000 -
Deferred tax liabilities 1,921,889 - - - 480,472 480,472 480,472 480,473 - -
Other liabilities 112,572,054 26,339,336 13,082,836 18,137,171 44,126,591 5,780,322 572,334 1,506,830 2,067,330 959,304
5,322,496,971 3,033,498,741 240,037,758 226,795,924 362,371,595 308,908,900 231,595,309 368,072,313 548,262,098 2,954,333
Net assets 252,500,531 (2,623,117,127) (103,825,880) (61,632,257) 1,468,509,421 415,364,039 395,437,363 636,565,539 38,206,528 86,992,905

Share capital 12,241,797

Reserves 107,800,978
Surplus on revaluation of assets 41,965,460
Unappropriated profit 90,492,296
252,500,531

85
Annual Report 2024 159
Notes to and forming part of the Unconsolidated Financial Statements Notes to and forming part of the Unconsolidated Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS NOTES TO AND FORMING PART OF THE UNCONSOLIDATED
For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024
For the year ended December
FOR THE YEAR ENDED DECEMBER 31, 2024
31, 2024FINANCIAL STATEMENTS

47.5 Information Security Risk 1. Under FCC Process Workstream; the Bank uplifted the framework at design level with key deliverables as:

Information security risk is the probability of exposure or loss resulting from a cyberattack or data breach on the Bank. It is • FCC Strategy
the potential for unauthorized use, disruption, modification or destruction of information such incidents can violate privacy, • Bank’s FCC Risk Appetite Statement
disrupt business, damage assets and facilitate other crimes like frauds. • Target Operating Model (TOM) across three lines of defense
• FCC Policies & Standards
UBL has a dedicated Information Security Division, functioning within Risk and Credit Policy Group which manages • Enterprise Wide FCC Risk Assessment Methodologies/Internal Risk Assessment Review (EWRA/IRAR) with focus on
information security risks to protect the technology and information assets by preventing, detecting and responding to AML, CFT, Sanctions / CPF & Transnational Risks etc.
threats, both internal and external. • Management Information (MI) Suite.

Offensive security unit within the information security division manages Penetration Testing by simulating the real world 2. The Bank rolled out comprehensive role based FCC training modules and staff capacity assessment carried out under
hacking scenarios. This unit remains responsible for establishing, implementing, maintaining and continually improving an FCC Transformation People Workstream.
information / cyber security management system through control design and controls validation, primarily in the domain of
applications / network penetration testing, and also supporting the other domains of information security i.e., security 3. On Regtech work stream, the Bank upgraded and implemented best in class Transaction Monitoring and payments
monitoring and threat hunting. screening systems. These systems were independently reviewed by a reputed international third party expert.

Moreover, to overcome social engineering frauds, extensive awareness campaigns are launched to provide specific training 4. Effective risk governance sets a solid foundation for comprehensive risk management discipline. The Bank’s risk
and guidance on information security related matters such as phishing, identity theft, online transaction frauds, etc. through governance framework is based on “three line of defense” governance model, wherein each line has a specific role with
various mechanisms such as social media, website, email advisories, SMS, webinars, phishing simulation exercises, new defined responsibilities and work in close collaboration to identify, assess and mitigate risks. Key management and board
joiner’s orientation, and targeted awareness sessions for executive leadership. These initiatives by Governance, Risk and committee covering FCC and compliance matters is Compliance Committee of Management (CCM) and Board Risk &
Compliance Unit are focused on elevating level of awareness for both internal as well as external customers to better equip Compliance Committee (BRCC).
them to counter security challenges. This unit manages the security compliance efforts, risk management and the
development and implementation of information security policies, procedures, guidelines and standards. Cyber & Moreover, FCC Transformation & Controls Fortification Programme is an ongoing initiative that is managed by Compliance
Infrastructure Security unit ensures that the IT Infrastructure function and services are resilient, secure, well-designed, Governance team in consultation with FCC teams across first and second line of defence.
accessible, and adaptable to the organization's changing demands. This unit is responsible for the continuous improvement
of information / cyber security architecture that protects against both internal and external threats. 47.7 Derivative Risk

The Bank engages in a range of risks that necessitate continuous monitoring and evaluation.
Significant progress has been made in securing the international territories as well by deploying 24/7 Security Operation
Center (SOC) at UBL. This unit deals with security issues. The unit continuously shares awareness news, alerts,
Credit risk
announcements, advisories and threats intelligence research reports to relevant stakeholder for securing the bank’s assets.
Credit risk refers to the risk of non-performance or default by a party to a derivatives transaction, resulting in an adverse
Application Security in Information security (IS) manages IS Risk Analysis on software applications, APIs, Mobile Apps, impact on the Bank’s profitability. Credit risk associated with derivatives transactions is categorized into settlement risk and
Digital Channels, Cloud Computing, ATM including review of security aspects of assets, enterprise architecture design pre-settlement risk. Credit proposals for derivatives transactions are approved by the Credit Committee. The credit exposure
controls of the applications in accordance with applicable policies, standards & controls. of each counterparty is estimated and monitored against approved counterparty limits by Market & Treasury Risk (M&TR) on
a daily basis.
Further, The Payment Card Industry Data Security Standard (PCI-DSS) program was initiated which aims to enhance
security for customer card data by setting guidelines for any company that accepts, stores, processes, or transmits card Market risk
information. This compliance framework is an industry-mandated set of standards intended to keep customer card data safe
when it is used by merchants and service providers. The Bank, as a policy, hedges all options transactions. In addition, the Bank does not carry any exchange risk on its Cross
Currency Swaps portfolio as it hedges the exposure in the interbank market. To manage the interest rate risk of Interest Rate
Moving ahead, Bank’s main focus remains on the continuous improvement of UBL’s security posture and to effectively Derivatives, the Bank has implemented various limits which are monitored and reported by M&TR on a daily basis.
prevent, monitor and rapidly respond to emerging threats and vulnerabilities.
Liquidity risk
47.6 Financial Crime Compliance (FCC) risk management and Pakistan FATF & APG action plan
Derivatives transactions, usually being non-funded in nature, do not carry a specific funding liquidity risk.
The Bank monitor key risks on an ongoing basis to strengthen risk management in an effort to meet challenges emanating
from a volatile market environment and the complexity driven by the changing regulatory frameworks. By utilizing The liquidity risk arises from the fact that in Pakistan, interest rate derivatives generally have a uni-directional demand, and
comprehensive risk management processes and sophisticated control systems, the Bank aims to minimize the negative no perfect hedge is available. The Bank mitigates its risk by limiting the portfolio in terms of tenor, notional and sensitivity
impact that may arise from varied degrees of risk exposures. limits, and can also hedge its risk by taking on and off balance sheet positions in the interbank market, where available.

In response to changing landscape around FCC risks across the globe and in response to Financial Action Task Force Operational risk
(FATF) & Asia Pacific Group (APG) action plan and State Bank of Pakistan's AML / CFT / CPF Regulations, the Bank
embarked upon a comprehensive Financial Crime Compliance Transformation Program under the guidance of Board of The staff involved in the trading, settlement and risk management of derivatives is carefully trained to deal with the
Directors (BOD), specifically geared towards uplifting FCC Framework and fortifying controls across Process, People and complexities involved in the process. Adequate systems and controls are in place to carry out derivatives transactions
Technology (Regtech) work streams in line with international best practices and Standards. Targeted investments were done smoothly. Each transaction is processed in accordance with the product program or a transaction memo, which contains
across these work streams, brief highlights are as under: detailed guidance on the accounting and operational aspects of the transaction to further mitigate operational risk. In
addition, M&TR and the Compliance and Control Department are assigned the responsibility of monitoring any deviation from
policies and procedures. The Bank’s Audit and Inspection Group also reviews this function, with a regular review of systems,
transactional processes, accounting practices and end-user roles and responsibilities.

160 United Bank Limited Annual Report 2024 161

Notes to and forming part of the Unconsolidated Financial Statements
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
For the
FOR THE year
YEAR ended
ENDED December
DECEMBER 31, 2024 31, 2024

Annexure ‘I’ as referred to in note 9.8 of the Bank’s Unconsolidated and Consolidated

Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above

600

583

7,897

1,336

765

715

1,227

701

661

857

587
Rs. in thousands

Total
The Bank uses FX and Derivatives module of Treasury System which provides an end-to-end valuation solution, supports the
routine transactional process and provides analytical tools to measure various risk exposures, carry out stress tests and

72

40

88

73

67

109

60

57

73

50
sensitivity analysis.

Others
Written-off
M&TR prepares various reports on a periodic basis which are reviewed by senior management. These reports provide details

529

543

7,893

1,248

693

648

1,118

641

604

703

537
of the derivatives business profile such as outstanding positions, profitability, risk exposures and the status of compliance with

Interest /
Mark-up
limits.

82
Principal
48. YEMEN OPERATIONS

-
Despite risky situation and continued operational losses the Bank has been striving to honor liabilities for past eight years.

1,707

1,722

25,132

2,714

835

708

1,263

733

702

906

623
However, on account of several factors, including but not limited to fragile political and economic situation in Yemen,

Total
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.

-
Others
At the beginning
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

47

1,083
639

617

607

566

614

504
Interest /

-
Mark-up
cognizant of the associated risks arising out of its exit from Yemen.

49. NON-ADJUSTING EVENT AFTER THE BALANCE SHEET DATE

1,707

1,722

25,132

2,667

197

91

180

125

136

292

118
Principal
The Board of Directors, in its meeting held on February 19, 2025 has proposed a final cash dividend of Rs.11.0 per share for

Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above provided during the year ended December 31, 2024
the year 2024. This is in addition to Rs. 33.0 already paid during the year bringing the total dividend for the year to Rs.44.0 per
share (2023: Rs. 44.0 per share). This appropriation is expected to be approved by the shareholders in forthcoming Annual

Father / Husband Name

General Meeting. The unconsolidated financial statements for the year ended December 31, 2024 do not include the effect of
this appropriation which will be accounted for in the unconsolidated financial statements for the year ending December 31,

Muhammad Ibrahim
2025.

Arbab Jamoon Abro

Ali Hussain Shah

Naseem Ahmed
Abdul Majeed

Abdul Razzaq
Zeeshan Ali
Abdul Rauf
50. GENERAL

Farooq

Ashraf
Aslam
50.1 Comparative information has been reclassified, rearranged or additionally incorporated in these unconsolidated financial
statements for the purposes of better presentation.

during the year ended December 31, 2024

Annexure 'I' as referred to in note 9.9 of the Bank's Unconsolidated and Consolidated Financial Statements

CNIC Number
50.2 Figures have been rounded off to the nearest thousand rupees unless otherwise stated.

31202-0281818-0

34403-7898101-3

41303-3673799-7

37405-6789718-7

42000-0420811-9

36502-1343746-1

34101-5410054-7

42201-1936374-1

71501-9796453-3

33106-0367673-7

42000-7560070-5
51. DATE OF AUTHORISATION

These unconsolidated financial statements were authorised for issue on February 19, 2025 by the Board of Directors of the
Bank.

Name of individuals / partners / proprietors /

Muhammad Shahzad Ashraf

directors
Financial Statements

Abdul Hameed Abro

Mazhar Mahmood
Farkhanda Jabeen

Waseem Ahmed
Zulfiqar Ali Shah
Sheeraz Majeed

Abdul Salam
Arslan Aslam

Umer Farooq

Zeeshan Ali
H No A-201 Amber Tower Pechs Block
H No Cb-3030 Muhammadi Colony St

Gulshan Ali Housing Scheme By Pass

Flat No B-39 Sunny Heights Block 10-

A-126 13-D Gulshan-E-Iqbal Karachi
Name and Address of the borrower

O/S Al Meraj Bakers Islamia College

H No 243 2Nd Floor Akhter Colony

H No 187 St No 49 Sector G-14/4.

Zeeshan House No 3 Anjum Farm

Mohallah Najafabad Pinanwal Po

Mumtazabad Tandilianwala Near

H No B-1/360 Block No 1 St No 4
House No B9, Street No 2, Bath
Syed Manzoor Hussain Zaidi Muhammad Jawaid Iqbal Shazia Syed Daniel Michael Howlett Sir Mohammed Anwar Pervez, OBE, HPk

No 7 Jan Colony Tench Bhatta

Muhammad Shahzad Ashraf

6, Sharah -E- Faisal Karachi
Chief Financial Officer President & Director Director Chairman

A Gulshan-E-Iqbal Karachi
Island, Clifton, Karachi
Khas Pind Dadan Khan
Chief Executive Officer

Abdul Hameed Abro

Mazhar Mahmood
Farkhanda Jabeen

Road Gujranwala

Waseem Ahmed
Zulfiqar Ali Shah
Sheeraz Majeed

Zikriya Hospital
provided

Abdul Salam
Arslan Aslam

Umer Farooq

Zeeshan Ali

,Karachi
             

Chief Financial Officer President & Director Director Chairman No.
Sr.

10

11
1

9
Chief Executive Officer

162 United Bank Limited Annual Report 2024 163

88
164
Annexure ‘I’ as referred to in note 9.8 of the Bank’s Unconsolidated and Consolidated
Financial Statements
Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above
Annexure 'I' as referred to in note 9.9 of the Bank's Unconsolidated and Consolidated Financial Statements
provided during the year ended December 31, 2024
Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above provided during the year ended December 31, 2024
Rs. in thousands
At the beginning Written-off

United Bank Limited

Sr. Name of individuals / partners / proprietors / Interest / Interest /
Name and Address of the borrower CNIC Number Father / Husband Name Principal Others Total Principal Others Total
No. directors Mark-up Mark-up
12 Rehman Nasir

The Asian Crousible Industry Room Rehman Nasir 35202-2942675-1 Muhammad Nasir Amin 213 446 - 659 13 516 52 582
No 4 1St Floor Asif Centr Davis Road
Lahore
13
Muhammad Ravaid

Muhammad Ravaid 42201-0548448-3 Ravaid 268 609 - 877 - 694 78 772

Fl No C-52 Bhawani Madina
Appartment Jhangir Road Gurumandir
14 Manzoor Ahmed

Manzoor Ahmed 42101-9996477-3 Jameel 233 427 - 660 33 504 57 594

H No A 209 Siraj Colony Nazimabad
No 1
15 Muhammad Rashid Latif Paracha

Muhammad Rashid Latif Paracha 35202-8617884-3 Abdul Latif Piracha 183 619 - 802 33 682 75 790
Piracha Business Network 402 Imtiaz
Plaza 85 The Mall Lahore
16 Syed Azhar Kazmi

Goverment Of Pakistan Central Road Syed Azhar Kazmi 61101-2389248-7 Syed Shoukat 233 760 - 993 - 834 87 921
Of Reyen Room No 8 5Th Floor
Custom House Karachi
17 Abbas Ali

Mashallah Steel Works Opp Aik Minar Abbas Ali 36302-1150370-3 Muhammad Hussain 205 839 - 1,044 - 830 83 913
Wali Masjid Makhdoom Rasheed
Road Multan
18 Faisal Tanvir Malik

Faisal Tanvir Malik 35202-3022185-5 Tanvir Ali Malik 206 1,004 - 1,211 - 1,027 111 1,138
Union Bank 2Nd Floor,Lda Plaza,
Egerton Road, Lahore
19 Imran Mehdi

Imran Mehdi 35201-2188468-5 Ch Muhammad Mansha 206 939 - 1,144 - 952 102 1,053
457 D - 1 Johar Town Near Stirling
Foundation School Lahore
20 Muhammad Zeeshan Ikhlaq

Muhammad Zeeshan Ikhlaq 42000-0511492-3 Aklaq Hussain Khan 117 615 - 733 - 658 61 719
H No B-75 Block 13-D/2 Gulshan-E-
Iqbal Karachi
21 Abdul Haleem Qureshi

Ftc Management, Finance&Trade Abdul Haleem Qureshi 41409-1833057-7 Haji Ghulam Nabi Qureshi 180 640 - 820 - 597 69 666
Centre, Block D,Mezanine Floor
Shahrah-E-Faisal Karachi

Annexure ‘I’ as referred to in note 9.8 of the Bank’s Unconsolidated and Consolidated
Financial Statements
Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above
Annexure 'I' as referred
provided to in note 9.9
during of the Bank's
the year Unconsolidated
endedandDecember Consolidated Financial
31,Statements
2024
Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above provided during the year ended December 31, 2024
Rs. in thousands
At the beginning Written-off
Sr. Name of individuals / partners / proprietors / Interest / Interest /
Name and Address of the borrower CNIC Number Father / Husband Name Principal Others Total Principal Others Total
No. directors Mark-up Mark-up
22
Irfan Shahzad

Irfan Shahzad 42101-5166426-5 Sultan Ahmed Khan 97 434 - 531 - 463 43 506
Hbl Habib Bank Limited Dept Osd Hbl
Plaza I I Chundrigar Road Karachi
23 Mian Muhammad Shujja Ashraf

Mian Muhammad Shujja Ashraf 37405-0376822-9 Mian M Ashraf 104 480 - 584 - 514 51 565
H No 93-A Lane No 5 Gulistan Colony
Rawalpindi
24 Muhammad Anis

Muhammad Anis 42301-4268486-5 Anis 481 1,296 - 1,776 181 1,484 155 1,820
Fl No Gk-6/21 6Th Floor Sonia Arcade
Kharadar Kharadar
25 Saleem Raza Merchant

Saleem Raza Merchant 42201-1500918-9 Akber Ali Merchant 366 617 - 983 - 745 81 827
502 Sana Residency Allama Iqbal
Road Pechs Karachi
26 Shehbaz
Shehbaz 36402-3784584-9 Said Muhammad 109 952 - 1,061 - 970 102 1,072
Chak Junday Wala Adda Noor Pur
27 Zafar Iqbal

House Building Finance Corp Of No Zafar Iqbal 38201-1371790-1 Allah Yar Khan 104 499 - 603 - 523 50 572
26-D 3Rd Flor Kasmr Plaz Blue Area
Islamabad
28 Mohammad Abid

Mohammad Abid 34402-1699443-7 Mohammad Yasin 168 653 - 821 - 607 66 673
Seven Star Function 54-D Block 6
Nursary Commercial Area ,Karachi
29 Sajid Muzaffar

In Print 12 Mezzanine Floor Mall Sajid Muzaffar 42301-1770336-7 Muzaffar Hussain 213 926 - 1,139 - 964 88 1,052
Square Zamzama Boulevard Phase V
Dha ,Karachi
30 Muhammad Humayun Asim Munif

Humayun Telecommunication Shop Muhammad Humayun Asim Munif 42201-1565157-3 M Asim Munif 110 937 - 1,047 - 945 91 1,036
No H-2 Hassan Square Block 13-A
Gulshan-E-Iqbal Karachi
31
Mohammad Akhter Mallak

Mohammad Akhter Mallak 45402-0968956-3 Muhram Ali Mallak 223 856 - 1,079 - 900 92 992
M. Akhter Grain Merchant Shop 8, 68
Miles Road Jam Sahab ,Nawabshah
32
Farzana Anis

Farzana Anis 42301-7919726-0 Muhammad Anis 483 1,301 - 1,784 183 1,423 150 1,756
Annual Report 2024 165

Plot No Gk 6/21 Flat No 201 Sounia

Arked G Alana Road Khar ,Karachi
166
Annexure ‘I’ as referred to in note 9.8 of the Bank’s Unconsolidated and Consolidated
Financial Statements
Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above
Annexure 'I' as referred to in note 9.9 of the Bank's Unconsolidated and Consolidated Financial Statements
provided during the year ended December 31, 2024
Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above provided during the year ended December 31, 2024
Rs. in thousands
At the beginning Written-off

United Bank Limited

Sr. Name of individuals / partners / proprietors / Interest / Interest /
Name and Address of the borrower CNIC Number Father / Husband Name Principal Others Total Principal Others Total
No. directors Mark-up Mark-up
33 Naveed Rais

Naveed Rais 42101-1374789-9 Rais 188 494 - 682 75 542 61 678

H No 9 Orangi Abad Block No 66
Chota Maidan Nazimabad
34 Javed Iqbal

Bank Al Falah 6Th Flr Business Javed Iqbal 42201-9596840-9 Shahid Iqbal 96 466 - 562 - 490 46 536
Avenue Bldg Main Shahrah-E-Faisal U
Phone Office,Karachi
35 Muhammad Ali Khan

Muhammad Ali Khan 42301-5334391-7 Khan 4,871 - - 4,871 - 2,455 131 2,587
Flat No.C-1,Ground Floor,Marrine
Castle Appt,Bath Island,Clifton
36 Khawaja Muhammad Bilal Sethi

House # 77/2 Main Khayaban E Rahat Khawaja Muhammad Bilal Sethi 42201-1827486-7 Khawaja Mohammad Anwer 18,947 324 - 19,271 - 695 5 700
Off 19Th Street Phase 6 Dha Near
Rahat Comm Market
37 Waqas Ahmad Yousaf

Waqas Ahmad Yousaf 35402-2785033-5 Muhammad Yousaf 2,518 20 - 2,537 - 902 157 1,058
H No 88 Block F Phase Ii Al Rehman
Garden Sharaq Pur Road Lhr
38 Haroon Nazir

Haroon Nazir 35202-3104937-7 Nazir Ul Haq Sheikh 399 1,846 - 2,245 - 1,942 195 2,137
97-Eden Canal Villas Near Thokhar
Niaz Baig Lahore ,Lahore
39 Mustafa Salim

Mustafa Salim 42201-6808516-3 Mohammad Abdul Salim 101 454 - 555 - 473 43 516
H No B-53 Block 18 Gulshan-E-Iqbal
Karachi
40 Dr Nayab Tarique

Dr Nayab Tarique 42201-2846558-6 M. Tariq Ashraf Mughal 185 813 - 998 - 850 82 932
Siut Dewan Farooq Medical Complex
F
41 Muhammad Raheel Khan

Muhammad Raheel Khan 42101-6608893-9 Muhammad Khan 228 873 - 1,101 - 935 93 1,027
H No L-63 Sir Syed Town Sector 11-
C/2 North Karachi Karachi
42

Sardar Iftikhar A Khan

Sardar Iftikhar A Khan 37405-3090138-5 Sardar M Safdar Kh 7,273 - - 7,273 - 12,127 58 12,185
H No 6 Zakriya Town Bosan Road
Multan

Annexure ‘I’ as referred to in note 9.8 of the Bank’s Unconsolidated and Consolidated
Financial Statements
Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above
Annexure 'I' as referred to in note 9.9 of the Bank's Unconsolidated and Consolidated Financial Statements
provided during the year ended December 31, 2024
Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above provided during the year ended December 31, 2024
Rs. in thousands
At the beginning Written-off
Sr. Name of individuals / partners / proprietors / Interest / Interest /
Name and Address of the borrower CNIC Number Father / Husband Name Principal Others Total Principal Others Total
No. directors Mark-up Mark-up
43 Muhammad Arif Chatha

Muhammad Arif Chatha 36302-0438004-9 M Bashir Chatta - - - - - 966 3 969

H No-102-A Teachers Colony Mps
Roadmultan
44 Masood Ahmad Ahmad Ahmad

H No 214 Upper Story Green Avenue Masood Ahmad Ahmad Ahmad 36302-0482757-1 Abdul Khaliq - - - - - 1,081 3 1,084
Broad Way Street Near Chatta
Bakhtawar
45 Nasir Javed Javed
Nasir Javed Javed 36603-1396114-1 Bashir Ahmad 2,939 609 616 4,164 - 609 6 615
H No 192 Model Town
46 Ishtiaq Ahmed

Ishtiaq Ahmed 32202-2969303-7 Dilshad Muhammad 2,431 821 479 3,732 - 821 46 868
Chak # 105 Tda Po Chak #. 103 Ml Teh
Karor Lal Easn Dist Layyah
47 Muhammad Saleem Anjum

Muhammad Saleem Anjum 36302-7137001-3 Muhammad Sadique 243 697 75 1,015 - 660 74 734
M/S Shelton House 2-Shadman
Colony Opp High Court Multan
48 Muhammad Usman Zahid

Muhammad Usman Zahid 37405-6171458-9 Zahid Rasool Khan 255 547 104 907 100 547 61 708
Ufone Franchise 93-1/S Lower Mall
Bhatti Chowk Lahore
49
Muhammad Faisal

Akber Ali Manzil St No 14 Abadi Muhammad Faisal 34101-5995870-7 Sheikh Shafqat Ali 357 669 115 1,141 102 644 74 820
Hakimray Hafazabad Road
,Gujranwala
50 Mohammad Ali

M/S Simlim Computers Shop No B-4 Mohammad Ali 41303-5526718-7 Noor Ahmed 198 810 79 1,087 - 799 79 877
Mezz Floor Shelter Shopping Cntr
Cantt ,Hyderabad
51 Wali Jan

Wali Jan 42201-6880837-9 Sakhi Jan 276 1,166 113 1,554 - 1,140 113 1,252
H No A-407 Ghousia Colony Pib
Colony ,Karachi
52 Muhammad Qasim

Muhammad Qasim 42201-8396828-3 Sohrab - - - - - 1,104 364 1,468

Fl No B-13 Ashraf Square Block 17
Gulshan-E-Iqbal ,Karachi
53 Shakeel Ahmad
Shakeel Ahmad 11201-0356654-1 Ghulam Qasim 153 677 78 907 - 652 61 713
Annual Report 2024 167

H No 268 St No 2 G-8/2 Islamabad

168
Annexure ‘I’ as referred to in note 9.8 of the Bank’s Unconsolidated and Consolidated
Financial Statements
Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above
Annexure 'I' as referred to in note 9.9 of the Bank's Unconsolidated and Consolidated Financial Statements
provided during the year ended December 31, 2024
Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above provided during the year ended December 31, 2024
Rs. in thousands
At the beginning Written-off
Sr. Name of individuals / partners / proprietors / Interest / Interest /

United Bank Limited

Name and Address of the borrower CNIC Number Father / Husband Name Principal Others Total Principal Others Total
No. directors Mark-up Mark-up
54 Nida Ather

Fl No C-401 Phase 1 Haroon Royal Nida Ather 42201-7440156-4 Ather Mehmood 193 845 81 1,119 - 805 81 885
City Block 17 Gulistan-E-Johar
Karachi
55 Fareed Ullah

Apartment No.02 Ground Floor Block Fareed Ullah 137-5602864-0 Kaleem Ullah 171 783 83 1,036 - 627 - 627
No.18 Pha Apartments Sector G-8/4
Islamabad
56 Muhammad Shahid

Muhammad Shahid 34301-1666131-1 Shahid 370 807 89 1,266 107 805 84 997
House No Bv 9. 5-70 Street No. 2
Power House
57 Mirza Shahrukh Baig

Mirza Shahrukh Baig 31202-1229972-9 Baig 123 801 127 1,051 - 797 89 887
H No 579-C Satellite Town Near Ubl
Bank
58 Zia Haider
Zia Haider 36602-1755798-9 Haider 475 1,273 183 1,931 185 1,269 140 1,593
Chak No 200-Wb Tibba Sultan Pur
59 Ajeet Kumar

Ajeet Kumar 43206-8936769-3 Lachman Das 6,750 1,762 384 8,896 - 1,599 7 1,606
Flat # 603 Green Belt Residency Blk 2
Clifton
60 Ghulam Qadeer

Ghulam Qadeer 45203-8819889-1 Amir Bux 1,610 386 209 2,205 - 385 135 520
Daya Mohalla Punj Hatti Near Police
Chowki
61 Jawaid Ahmed Shaikh

Jawaid Ahmed Shaikh 41304-7836316-5 Abdul Khaliq Shaikh 690 382 556 1,627 - 382 335 716
Abdul Khaliq House Pir Mohalla
Tando M Khan
62 Mohammad Shahid

Muhammedi Oil Mill Plot No 63/1 Mohammad Shahid 42301-0924101-3 Muhammad Kamil 127 649 61 837 - 616 61 676
Chelaram Compound Nishtar Road
Garden West Karachi
63 Mohammad Imran Ayub

Mohammad Imran Ayub 42201-7278972-1 Muhammad Ayub 8 538 53 599 - 533 49 582
Ibl Nic Building Abbasi Shaheed Road
Karachi
64 Ghulam Mustafa
Ghulam Mustafa 41201-5336163-1 Mustafa 309 641 72 1,022 89 615 72 776
Majeed Colony Mohalla Butt
65 Mohammad Nadeem

Mohammad Nadeem 41304-2359288-9 Muhammad Sibtain 467 1,104 120 1,692 167 1,073 120 1,361
Fateh Apparel Limited Unit # 4,
Latifabad, Hyderabad

Annexure ‘I’ as referred to in note 9.8 of the Bank’s Unconsolidated and Consolidated
Financial Statements
Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above
Annexure 'I' as referred
provided to in note 9.9
during of the Bank's
the year Unconsolidated
endedandDecember Consolidated Financial
31,Statements
2024
Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above provided during the year ended December 31, 2024
Rs. in thousands
At the beginning Written-off
Sr. Name of individuals / partners / proprietors / Interest / Interest /
Name and Address of the borrower CNIC Number Father / Husband Name Principal Others Total Principal Others Total
No. directors Mark-up Mark-up
66 Imran Akhtar Thakur

Imran Akhtar Thakur 34603-2240260-9 Thakur 15 876 122 1,013 - 875 93 968
Gilli Gao Shalla Thakur House
Mohallah Islamabad Sialkot
67 Sajid Sohail

Noor Trading Co, 57-Lg,Hafeez Sajid Sohail 35202-4578054-7 Abdul Latif 147 705 109 961 - 704 70 773
Centre, Main Boulevard,Gulberg Iii,
,Lahore
68 Muhammad Aslam
Muhammad Aslam 32103-1166805-7 Allah Bakhsh 1,628 662 346 2,636 - 661 186 847
Po Bohar Jhok Borhe Wala
69 Sarwar Hussain Jaffary

Sarwar Hussain Jaffary 41304-3189571-7 Asghar Hussain 1,117 386 382 1,885 - 386 187 573
D/75 1St Floor Latifabad Unit7
Hyderabad
70 Peeral Rasool Buksh

Peeral Rasool Buksh 52202-7743780-3 Rasool Buksh 712 456 321 1,490 - 456 130 586
B-427 Manilla Centre Block 13-D
Gulshan-E-Iqbal Karachi
71 Nadeem Ahmed Dar

Nadeem Ahmed Dar 34603-7151408-9 Mohd Yousaf Dar 10 1,073 105 1,188 - 1,072 105 1,177
Dar Doppata House Bazar Kalan
Sialkot Sialkot
72 Syed Muhammad Hassan Naqvi

Syed Muhammad Hassan Naqvi 35201-6588691-7 Sed Mohammad Ali Naqvi 200 545 105 849 50 540 61 652
H No 141-Block L Dha Phase 1
Defence Lahore Lahore
73 Syed Manzoor Hussain
Syed Manzoor Hussain 42101-0254842-5 Hussain 352 1,136 210 1,699 134 1,135 129 1,398
H No F-8 Razvia Society Nazimabad
74 Mohammad Sharif

Mohammad Sharif 43203-8577848-7 Illahi Bux Brohi 414 1,763 163 2,340 - 1,672 163 1,835
Neeroli St Near Post Office Lahori
Mohalla Larkana
75 Syed Shahid Hussain

Gem Net Pvt Ltd Off No 208 2Ndflr Syed Shahid Hussain 42101-1896577-3 Syed Aal Hussain 154 577 59 790 - 545 - 545
Block-47-W Doosal Arcad Jinnah
Avenue Blue Area Islamabad
76 Riaz Ahmad

Riaz Ahmad 37405-1808841-9 Gulzar Ahmed - 933 116 1,049 - 926 - 926
H No D-202 Sector 1 Khayaban E
Sirsyed Colony Rawalpindi
77 Shiekh Abdul Moheed

Shiekh Abdul Moheed 37301-6156792-3 Sheikh Abdul Majeed 18 1,001 95 1,114 - 1,001 94 1,095
Annual Report 2024 169

H No Bv-254/E Madni Muhalla

,Jhelum
170
Annexure ‘I’ as referred to in note 9.8 of the Bank’s Unconsolidated and Consolidated
Financial Statements
Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above
Annexure 'I' as referred to in note 9.9 of the Bank's Unconsolidated and Consolidated Financial Statements
provided during the year ended December 31, 2024
Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above provided during the year ended December 31, 2024
Rs. in thousands
At the beginning Written-off

United Bank Limited

Sr. Name of individuals / partners / proprietors / Interest / Interest /
Name and Address of the borrower CNIC Number Father / Husband Name Principal Others Total Principal Others Total
No. directors Mark-up Mark-up
78 Shabbir Ahmed

The Omoges Enperprises Sh No 4-A Shabbir Ahmed 61101-1980796-7 Mohammad Sharif 255 1,056 112 1,423 - 1,026 98 1,123
Mezzanine Floor Al Rehman Chamber
Islamabad
79
Mian Adnan Bashir
Mian Adnan Bashir 61101-8541904-3 Mian M B Asghar 214 768 124 1,106 - 766 77 844
Ubl F 7 Markaz Islamabad Islamabad
80 Muhammad Muzammil Khan

M K Soft Tech Suit No 25-26

Muhammad Muzammil Khan 41304-5656426-1 Rustam Khan Ghouri 419 1,716 245 2,379 - 1,579 174 1,752
Mezzanine Floor Sakhi Wahab Appt
Cant Saddar Raabi
Chambers,Hyderabad
81 Muhammad Yaseen

Muhammad Yaseen 42301-7711136-3 Ahmed 184 852 80 1,115 - 833 80 913

Flat No A-701 7Th Floor Bilal Tower
Nishtar Road Garden Karachi
82 Hasan Mahmood

H No 34-A Street No : 37 , Off Hasan Mahmood 42101-6409677-7 Shahid Mehmood 500 1,408 206 2,114 - 1,204 148 1,352
Khyaban-E Muhafiz Dha Phase Vi
Karachi
83 Habib Kibria

Habib Kibria 37405-0558038-5 Sh Abdul Halim - 601 96 697 - 600 64 665

Duppatta Mahal Bed Sheets None
Mohala Kartar Pura Rawalpindi
84 Ali Bin Ahmed

Ali Bin Ahmed 37301-7699713-5 Maqbool Ahmed 161 601 84 846 - 600 59 659
Islampura Near Fareed Super Mkt
Dina Dina
85 Wakeel Akhtar

Friends Paint And Electronics Plot523 Wakeel Akhtar 42201-0586796-3 Shah Doran - 529 45 574 - 469 45 514
Main Bazar Gulzar Clny Sector 8/C
Korangi Karachi
86 Shahana Faiz

Shahana Faiz 42101-1788931-8 Faiz Uddin Ahmed 152 703 130 985 - 694 63 757
Fl No A-7 Rays Arcade Block N North
Nazimabad ,Karachi
87 Athar Ali

Burraq And G Store Shp 86 Al Raheem Athar Ali 41303-6195119-3 Asgar Ali 449 1,942 244 2,635 - 1,926 198 2,124
Shopping Cntr Phase Ii Gari Khata
Hyderabad

Annexure ‘I’ as referred to in note 9.8 of the Bank’s Unconsolidated and Consolidated
Financial Statements
Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above
Annexure 'I' as referred to in note 9.9 of the Bank's Unconsolidated and Consolidated Financial Statements
provided during the year ended December 31, 2024
Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above provided during the year ended December 31, 2024
Rs. in thousands
At the beginning Written-off
Sr. Name of individuals / partners / proprietors / Interest / Interest /
Name and Address of the borrower CNIC Number Father / Husband Name Principal Others Total Principal Others Total
No. directors Mark-up Mark-up
88 Kashif

Kashif 33303-9387747-3 Faqir Muhammad 433 1,168 159 1,760 172 1,163 129 1,464
Faqir Muhammad St 3 Mohallah
Arafat Tt Singh
89 Imtiaz Hussain Shah

Imtiaz Hussain Shah 35202-2198207-5 Manzoor Hussain 479 1,365 191 2,035 35 1,361 150 1,545
Flights Travel Services 19-A Al Miraj
Arcade Chowk Chouburgi Lahore
90 Naim Riaz

Naim Riaz 38403-6643863-1 Muhammad Islam 100 678 72 850 - 674 66 740
Military Estate Colony H # 45,
Mohallah Bangla # 9, Sargodha
91
Altaf Hussain

Altaf Hussain 38403-2253845-9 Shamshad Hussain 150 522 53 724 - 514 53 567
Lm 128-A Block A Lakar Mandi Baroon
Gala Mandi Bhatti Chowk ,Sargodha
92 Kauser Ali

Farooq Nagar Near Girls College Kauser Ali 33203-7799385-5 Abdul Hameed 639 1,167 162 1,968 - 1,121 130 1,251
Jaswali Road Mohalah Sarya Shourkot
Dist Jhang
93 James Carter Alan Ducan 554411604 James Grant Ducan
Aqeel Ahmed Khan 37405-9769944-1 Malik Jawed Ahmed Khan
Hascol Petroleum Ltd Abdul Aziz Khalid 611011-990069-5 Khalid Iqbal
Muhammad Zubair 42201-5744071-7 Abdul Aziz
Office # 29, 29Th Floor Sky Tower - Farid Ashraf Masood 42301-3551103-7 Arshad Masood
746,862 29,906 - 776,768 522,803 29,906 - 552,709
West Wing (A) Dolmen City, Abdul Zafar Iqbal Chaudhry 35200-5408747-9 Chaudhry Abdul Ghafoor
Sattar Edhi Avenue, Block-4, Clifton, Nauman Kramet Dar 611014-909597-5 Bashir Uddin Ahmed
Karachi Mustafa Ashraf 35202-6144255-9 Muhammad Ashraf
Hasan Raza Ur Rahim 42201-6103761-3 Jamshed Reza Ur Rahim
Farrukh Saeed 35202-2671433-7 Muhammad Saeed
94 United Textile Printing Industries (Pvt)
Khalid Mehmood 33100-4152249-1 Ghulam Rasool
Ltd.
Muhammad Asif Sheikh 33100-0603537-3 Ghulam Rasool
158,127 - 88,560 246,687 - - 88,560 88,560
Muhammad Naeem 33100-5615560-3 Ghulam Rasool
P-720, Street No.4, Shrif Pura,
Haji Ghulam Rasool 33100-8127121-1 Haji Mehar Din
Maqbool Road, Faisalabad.
95
Tahir Omer Industries Ltd
Rana Iqbal Hussain 35202-2634080-9 Muhammad Ikram
Rana Tahir Iqbal 35202-6205471-3 Rana Iqbal Hussain 432,156 11,948 - 444,104 32,156 11,948 - 44,104
Shahra-E-Nazria Pakistan, Opposite
Umer Iqbal 35202-6206421-3 Rana Iqbal Hussain
Expo Center Gulberg Lahore
96 Divine Developers (Pvt.) Ltd.
Muhammad Amjad Aziz 35201-7413466-7 Abdul Aziz
80,000 - 40,222 120,222 - - 37,691 37,691
3Rd Floor, Divine Centre, Main Saima Ibrahim 37405-6141172-2 Muhammad Amjad Aziz
Annual Report 2024 171

Defense Road, Lahore Cantt

172
Annexure ‘I’ as referred to in note 9.8 of the Bank’s Unconsolidated and Consolidated
Financial Statements
Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above
Annexure 'I' as referred to in note 9.9 of the Bank's Unconsolidated and Consolidated Financial Statements
Statement showing written-off
provided during advances or
theany other financial relief
year ended of Five Hundred Thousand Rupees or above
December 31,provided
2024 during the year ended December 31, 2024
Rs. in thousands
At the beginning Written-off
Sr. Name of individuals / partners / proprietors / Interest / Interest /
Name and Address of the borrower CNIC Number Father / Husband Name Principal Others Total Principal Others Total

United Bank Limited

No. directors Mark-up Mark-up
97 Christopher John Aitken Andrew Not Applicable Ronald D Aitken
First Dawood Properties Ltd.
Muhammad Riawan -Ul Haque, 42301-0842091-9 Muhammad Enamul Hque
(Formerly: First Dawood Investment
Khursheed Abul Khair 42301-1393323-7 Matiur Rehman
Bank Ltd.)
Abu Khursheed Muhammad. 42301-1111134-5 Muhammad Arif 131,500 36,134 - 167,634 - 36,134 - 36,134
Iqbal Ahmed 42501-3349087-5 Shafi Ahmed
19Th Floor, Tower B, Saima Trade
Asad Ali Sheikh 42201-7176373-7 Rahmat Ali Sheikh
Towers, I.I Chundrigar Road Karachi
Farhat Ali 42201-4744835-2 Ali Afsar Jan
98 Macca Industries
Mr. Tariq Ameer Khan 33202-6476639-9
Ameer Khan
Mr. Waris Ameer Khan 33202-1247990-9 91,918 - 36,742 128,660 - - 35,935 35,935
Baloch House, Nawaz Chowk, Gojra Ameer Khan
Road Jhang
99
Shafiq Sons
Malik Muhammad Shafiq 31202-2616036-1 Haji Muhammad Saeed Malik 15,000 2,041 18,319 35,360 - 2,041 18,319 20,360
Inside Ahmadpuri Gate, Bahawalpur
100
Niaz Fabrics (Pvt.) Ltd.
Dr. Ghulam Rasool Firdousi 35202-2787371-1 Barkat Ali
24,375 - 11,823 36,198 - - 11,425 11,425
Room No: 11, 2Nd Floor, Raja Mrs. Mobila Farrukh 35202-1325618-2 Farrukh Niaz
Chamber, 35-Queens Road, Lahore
101

Muhammad Waheed Malik

Muhammad Waheed Malik 35202-0321866-1 Malik Muhammad Ijaz 13,000 5,971 4,774 23,745 - 5,971 4,774 10,745
Shop No: 31-B, Fruit Market, Lahore

102 Brig. (Retd) Mian Muhammad Mahmud 37405-0229737-3 Mian Muhammad Nazir
Effef Industries Ltd Mian Humayun Mahmud 37405-0376083-1 Brig. Muhammad Mahmud
Mian Akbar Mahumud 61101-7922178-1 Brig. Muhammad Mahmud
1,859 10,447 - 12,306 - 9,106 - 9,106
Project Located At Allabad, Khanewal Amer Saeed 42301-0721668-1 Brig. Muhammad Mahmud
Road Kabirwala Fahim Ahmed Saeed 27658-6886483-1 Not Available
Nadeem Ahmed Saeed 42301-0721667-1 Mr. Saeed Ahmed.
103 Affan Electronics

Abdul Ghafoor 35200-1467721-9 Allah Din 19,299 - 9,430 28,729 - - 8,929 8,929
Shop No: 130, Irfan Chamber, Temple
Road, Lahore
104 Baarak Enterprises

Flat No.5, Yaqoob Street, Ali Al Haq Mr. Shah Faisal 35200-0540484-9 Haji Bahadar Khan 30,000 - 7,898 37,898 - - 7,898 7,898
Road, Model Town, Khadam Ali Road,
Sialkot
105 Hasnain Seeds & Cotton Ginners

Muhammad Hasnain Mustafa 329-91-885168 Ghulam Mustafa 8,871 - 6,221 15,093 - - 6,221 6,221
Jahanian District Khanewal
106 Altaf Rice Traders

Shop # 85, Ghalla Mandi Sheikhan, Mr. Altaf Hussain 35402-4763529-9 Mr.Agra 18,000 - 5,306 23,306 - - 5,306 5,306
Mandi Faizabad. Tehsil & District
Nankana Sahib

Annexure ‘I’ as referred to in note 9.8 of the Bank’s Unconsolidated and Consolidated
Financial Statements
Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above
Annexure 'I' as referred
provided to in note 9.9
during of the Bank's
the year Unconsolidated
endedandDecember Consolidated Financial
31,Statements
2024
Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above provided during the year ended December 31, 2024
Rs. in thousands
At the beginning Written-off
Sr. Name of individuals / partners / proprietors / Interest / Interest /
Name and Address of the borrower CNIC Number Father / Husband Name Principal Others Total Principal Others Total
No. directors Mark-up Mark-up
107 (Late) Mr. Muhammad Yasin Bhatti
Top-In-Town Sports Co. 34603-2214649-3 Mr. Muhammad Akhtar Bhatti
Mr. Shahbaz Ahmed
34603-2210543-9 Mr. Muhammad Akhtar Bhatti 40,956 - 6,111 47,067 - - 5,111 5,111
Mr. Muhammad Shahzad Akhtar
Noor Pura, Pasrur Road, Sialkot 34603-2210303-5 Mr. Muhammad Akhtar Bhatti
108 M. Abdullah Enterprises

Mr. Babu Amjad Hussain 34101-8320842-7 Babu Muhammad Sharif 8,000 - 3,856 11,856 - - 3,386 3,386
Paper Market, Opposite Sheikhupura
Road, Gujranwala
109
Liaquat Sons
Mrs. Rashida Liaquat 42000-4620755-2 Widow Of Liaquat Hussain 8,610 2,657 - 11,267 - 2,657 - 2,657
Intizar Market Nazimabad # 2 Karachi
110 Raja Nasar Ahmed

Raja Nasar Ahmed 37401-8355021-9 Raja Munir Ahmed 9,874 156 2,304 12,334 - 30 2,304 2,334
House No: 3, Street No: 2, Lane 9,
Sector 9, Dha, Phase-Ii, Islamabad
111 Haji Ahmed Ali & Sons

Haji Ahmed Ali And Sons, Ghalla Mr. Ahmed Ali 294-86-179297 Bagga 1,622 68 1,857 3,546 - - 1,796 1,796
Mandi, Farooqabad, Teh & Distt
Sheikhupura
112 Ghulam Muhamamd Sons
Syed Badarul Hasan Rizvi 42101-7122111-7 Syed Muhammad Yousaf
5,975 1,179 - 7,153 - - 1,153 1,153
Office # 20 & 5, First Floor , Namco Syed Hasan Abbas Rizvi, 42101-8699404-5 Syed Badarul Hasan Rizvi
Centre, Campbell Street Karachi
113 Mansha Traders
Mr. Muhammad Mansha 35404-2029647-7 Mr.Muhammad Ismail 10,000 - 1,364 11,364 - - 864 864
Grain Market, Sheikhupura
114
Hayat Traders

Mr. Kausar Ali 33203-7799385-5 Abdul Hameed 5,000 - 1,524 6,524 - - 824 824
Hayat Traders Near Alharam Marriage
Hall Liaqatabad No.1 Faisalabad
115
Blouch Traders
Ghulam Rasool 32403-5977484-7 Fiaz Muhammad Khan 1,500 14 906 2,420 - - 770 770
Haji Pur Road Fazilpur Distt. Rajanpur
116 Allah Waris And Co.
Mr. Zafar Ullah
34301-9917049-5 Mr. Ahmed Khan
Mr. Muhammad Yousaf 5,000 - 772 5,772 - - 522 522
Geegay Road, Kaleeke Mandi, District 34301-2934078-7 Mr. Hatim Ali
Hafizabad
117 Ali Farooq

Ali Farooq 35202-8438856-7 Khawaja Asad Farooq 78 - 0 78 482 72 6 560

H-30 Aa Dha Homes St-3 Phase V ,
Annual Report 2024 173

Lahore
174
Annexure ‘I’ as referred to in note 9.8 of the Bank’s Unconsolidated and Consolidated
Financial Statements
Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above
Annexure 'I' as referred
provided to in note 9.9
during of the Bank's
the year Unconsolidated
endedandDecember Consolidated Financial
31,Statements
2024
Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above provided during the year ended December 31, 2024
Rs. in thousands
At the beginning Written-off

United Bank Limited

Sr. Name of individuals / partners / proprietors / Interest / Interest /
Name and Address of the borrower CNIC Number Father / Husband Name Principal Others Total Principal Others Total
No. directors Mark-up Mark-up
118 Shakeel Ahmed

H No B 189 St No 6 Sec 1A 4 Shah Shakeel Ahmed 42201-7918085-3 Naseer Ahmed - - - - 480 60 24 564
Nawaz Bhutto Colony North Karachi,
Karachi
119 Muhammad Ramzan

H No E 47 Sec No 1 A 4 Shanawaz Muhammad Ramzan 45105-0245612-9 Abdul Majeed - - - - 480 60 24 564

Bhutto Colony N/R Atta Mille Wali Gali
, Karachi
120 Kamran Ahmed Qureshi

Kamran Ahmed Qureshi 42000-5016612-5 Abdul Saleem Qureshi - - - - 426 178 1 605
H No L 293 Sec Sc4 North Karachi
Makki Masjid , Karachi
121 Jawwad Nadeem

Jawwad Nadeem 42101-4643749-5 Muhammad Nadeem - - - - 435 171 - 606

H No R 154 Sec 5C2 North Karachi
Bilal Public School, Karachi
122 Akber Ali

Akber Ali 42101-8241989-3 Muhammad Hussain - - - - 444 174 - 618

H No L 354 Sec 5C1 North Karachi Al
Waqar Pakwan, Karachi
123 Hashmat Ali

Plot No Rs-6 St 4 1St Flr Sec 5C1 Hashmat Ali 42101-2173840-1 Aladin - - - - 443 175 - 618
North Khi Near ,Noor Madarsa
Karachi
124
Farzana Saadat

Farzana Saadat 42201-0524800-6 Sadat Ali - - - - 453 168 - 621

H No L 461 Second Flr Sec No 5C 1
North Khi N/R Al Asif Bakery , Karachi
125 M.Shoaib Khalid

M.Shoaib Khalid 35202-2884382-1 Khalid Mehmood 484 44 22 549 484 62 26 572

H No 68 Dha Rehbar Phase Ii Block M
, Lahore
126 Abdul Waheed

Abdul Waheed 42000-9822028-9 Abdul Rahim 203 66 0 269 395 118 15 528
H No Sd 6 Askari Iii School Road Cant
Karachi
127
Akmal Hussain
Akmal Hussain 37301-2193172-9 M.Ashraf 502 32 - 535 450 77 8 535
Post Office Khass Maira Dina , Jehlum
128 Muhammad Akram

H-39-A Shahab Street Muhallah Muhammad Akram 35202-2444502-3 Muhammad Sharif 490 58 38 586 490 - 18 508
Ghulshan Abbas Colony Sch-2 ,
Lahore

Annexure ‘I’ as referred to in note 9.8 of the Bank’s Unconsolidated and Consolidated
Financial Statements
Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above
Annexure 'I' as referred to in note 9.9 of the Bank's Unconsolidated and Consolidated Financial Statements
provided during the year ended December 31, 2024
Statement showing written-off advances or any other financial relief of Five Hundred Thousand Rupees or above provided during the year ended December 31, 2024
Rs. in thousands
At the beginning Written-off
Sr. Name of individuals / partners / proprietors / Interest / Interest /
Name and Address of the borrower CNIC Number Father / Husband Name Principal Others Total Principal Others Total
No. directors Mark-up Mark-up
129 Muhammad Yasin

H # 245 Blk # 15 Tara Chand Rd Muhammad Yasin 42401-2041562-7 Rehmat Ullah 457 51 6 514 457 51 6 514
Kemari Near Agha Khan Daigonostic
Laboratory, Karachi
1,968,438 167,744 255,867 2,392,049 562,619 195,587 250,032 1,008,237
Annual Report 2024 175
Annexure ‘II’ as referred to in notes 2 and 9.10 of the Bank’s Annexure ‘II’ as referred to in notes 2 and 9.10 of the Bank’s
Unconsolidated and Consolidated Financial Statements Unconsolidated and Consolidated Financial Statements
Annexure 'II' as referred to in notes 2 and 9.8 of the Bank's Unconsolidated and Consolidated Financial Statements Annexure 'II' as referred to in notes 2 and 9.8 of the Bank's Unconsolidated and Consolidated Financial Statements

ISLAMIC BANKING BUSINESS 1. Due from Financial Institutions

2024
In Local In Foreign
The Bank operates 496 (2023: 209) Islamic Banking branches and 558 (2023: 501) Islamic Banking windows. Note
Currency Currencies
Total

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

Note 2024 2023
STATEMENT OF FINANCIAL POSITION --------- (Rupees in '000) --------- Musharakah / Mudarabah - - -
Bai Muajjal
with other Financial Institutions - - -
ASSETS with State Bank of Pakistan - - -
Cash and balances with treasury banks 44,290,715 26,348,889 - - -

Balances with other banks 571,962 1,537,675 Less: Credit loss allowance
Due from financial institutions 1 - 12,500,000 Stage 1 - - -
Stage 2 - - -
Investments 2 119,366,357 331,496,374 Stage 3 - - -
Islamic financing and related assets - net 3 147,886,966 47,187,185 - - -
Property and Equipment 6,029,227 1,235,419 Due from financial institutions - net of credit loss allowance - - -
Right-of-use assets 3,181,023 1,524,770
Intangible assets - - 2023

Due from Head Office 4 284,069,490 8,009,487 In Local In Foreign

Total
Other assets 4,813,226 8,629,655 Currency Currencies

Total Assets 610,208,966 438,469,454 ----------- (Rupees in '000) ------------

LIABILITIES Musharakah / Mudarabah 12,500,000 - 12,500,000

Bills payable 8,607,107 2,573,006 Bai Muajjal
Due to financial institutions 8,003,110 13,726,453 with other Financial Institutions - - -
with State Bank of Pakistan - - -
Deposits and other accounts 5 519,488,249 378,100,209
12,500,000 - 12,500,000
Lease Liabilities 3,788,556 1,754,938
2. Investments by segments
Other liabilities 5,519,705 5,647,031 2024
545,406,727 401,801,637 Cost /
Credit loss Surplus /
NET ASSETS 64,802,239 36,667,817 Amortised Carrying Value
allowance (Deficit)
cost
------------------ (Rupees in '000) ------------------
REPRESENTED BY Debt Instruments
Islamic Banking Fund 2,181,000 2,181,000 Measured at amortised cost
Reserves - - Federal Government Securities -
- Ijarah Sukuks 10,001,109 - - 10,001,109
Surplus on revaluation of assets 572,058 3,087,953 - Bai Muajjal with Govt. of Pakistan 2.1 47,618,148 - - 47,618,148
Unappropriated profit 7 62,049,181 31,398,864 Non Government debt securities 8,900,193 (151) - 8,900,042
64,802,239 36,667,817 66,519,450 (151) - 66,519,299
Measured at FVOCI
CONTINGENCIES AND COMMITMENTS 8 Federal Government securities -
- Ijarah Sukuks 49,296,295 572,058 49,868,353
- Islamic Naya Pakistan Certificate 2,678,705 2,678,705
PROFIT AND LOSS ACCOUNT Non Government debt securities -
51,975,000 - 572,058 52,547,058
Instruments mandatorily classified / measured at FVPTL
Profit / return earned 9 68,039,934 50,273,992 Non Government debt securities 300,000 300,000
Profit / return expensed 10 (29,808,386) (29,872,345) 300,000 - - 300,000
Net profit / return 38,231,548 20,401,647 Total investments 118,794,450 (151) 572,058 119,366,357

Other income 2023

Fee and commission income 588,210 366,049 Cost / Provision for
(Deficit) Carrying Value
Foreign exchange income / (loss) 38,684 (207,058) Amortised cost diminution
Gain on securities - net 1,439,053 - ------------------ (Rupees in '000) ------------------
Federal Government Securities
Other income 85,760 97,674 - Ijarah Sukuks 313,038,816 - 3,087,953 316,126,769
Total other income 2,151,707 256,665 - Islamic Naya Pakistan Certificates 5,709,016 - - 5,709,016
- Bai Muajjal with Govt. of Pakistan - - - -
Total Income 40,383,255 20,658,312 318,747,832 - 3,087,953 321,835,785

Other expenses Non Government Debt Securities

- Listed 376,339 - - 376,339
Operating expenses 7,358,957 3,884,840 - Unlisted 9,284,250 - - 9,284,250
Workers Welfare Fund 812,085 386,739 9,660,589 - - 9,660,589
Total other expenses 8,171,042 4,271,579 Total Investments 328,408,421 - 3,087,953 331,496,374

Profit before credit loss allowance 32,212,213 16,386,733 2024

Credit loss allowance / provisions and write-offs - net (8,250) 12,640 Particulars of credit loss allowance Stage 1 Stage 2 Stage 3 Total
Profit before taxation 32,220,463 16,374,093 ------------------ (Rupees in '000) ------------------

Taxation 17,399,050 8,023,306 Non Government debt securities (151) - - (151)

(151) - - (151)
Profit after taxation 14,821,413 8,350,787

176 United Bank Limited Annual Report 2024 177

Annexure ‘II’ as referred to in notes 2 and 9.10 of the Bank’s Annexure ‘II’ as referred to in notes 2 and 9.10 of the Bank’s
Unconsolidated
Annexure 'II' as referred to in notes and
2 and 9.8 Consolidated Financial
of the Bank's Unconsolidated and Statements
Consolidated Financial Statements Unconsolidated
Annexure 'II' as referred to in notes and Consolidated
2 and 9.8 of Financial
the Bank's Unconsolidated and Statements
Consolidated Financial Statements

2.1. Bai Muajjal with Government of Pakistan 2024 2023 Future Ijarah payments receivable
-------------------------------------
Note (Rupees in '000) -------------------------------------

Bai Muajjal Investment 69,340,000 - 2024 2023

Less:Deferred Income (21,721,852) - Later than 1 Later than 1
Bai Muajjal Investment-net 47,618,148 - Not later than year and Over Five Not later than year and
Total Over Five years Total
1 year less than 5 years 1 year less than 5
2024 2023 years years
------------------------------------- (Rupees in '000) ------------------------------------- --------------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------
3. Islamic financing and related assets
Ijarah rental receivables 98,885 93,874 - 192,759 117,950 113,164 - 231,114
Ijarah 3.1 183,651 210,375
Murabaha 3.2 165,372 326,733
Musharakah 73,230,869 3,672,838 Note 2024 2023
Diminishing Musharakah 45,705,613 26,340,035 3.2 Murabaha ------------------------------------- (Rupees in '000) -----------------------------
Mera Pakistan Mera Ghar (MPMG) 4,839,643 5,159,709
Istisna 240,064 349,612 Murabaha financing 3.2.1 165,372 326,733
Diminishing Musharakah - Under SBP's Islamic Temporary Economic Refinance Facility 3,692,614 300,000 Advances for Murabaha - 56,537
165,372 383,270
Ameen Musharakah Running Finance Under SBP's - Islamic Export Refinance scheme 8,710,000 3,649,999
Islamic Export Refinance scheme - Istisna 608,058 603,250
Advances against Islamic assets 3.2.1 Murabaha receivable - gross 3.2.2 165,372 326,733
Advances against Ijarah 17,910 8,612 Less: Deferred Murabaha income 3.2.4 (12,204) (9,852)
Advances for Diminishing Musharakah 8,689,619 1,646,484 Less: Profit receivable shown in other assets (2,669) (9,282)
Advances for Murabaha - 56,537 Murabaha financings 150,499 307,599
Advances agaisnt Mera Pakistan Mera Ghar 4,335 14,236
Advances for Istisna 1,312,312 414,006 3.2.2 The movement in Murabaha financing during the year is as follows:
Advances against Istisna - Under SBP' Islamic Export Refinance scheme 256,000 50,000
Advances against Diminishing Musharakah ITERF - 3,705,624 Opening balance 326,733 507,528
Inventory related to Islamic financing Sales during the year 2,066,993 3,154,627
Istisna 111,700 156,060 Adjusted during the year (2,228,354) (3,335,422)
Profit and other receivables against financings 2,189,222 749,917 Closing balance 165,372 326,733
Gross Islamic financing and related assets 149,956,982 47,414,027
3.2.3 Murabaha sale price 165,372 326,733
Less: credit loss allowance / provision against Islamic financings Murabaha purchase price (150,499) (307,599)
- Stage 1 (1,668,457) - 14,873 19,134
- Stage 2 (213,344) -
- Stage 3 (188,215) - 3.2.4 Deferred Murabaha income
- Specific - (143,029) Opening balance 9,852 7,846
- General - (83,813) Arising during the year 134,989 199,790
(2,070,016) (226,842) Less: recognised during the year (132,637) (197,784)
Islamic financing and related assets - net of expected credit loss allowance 147,886,966 47,187,185 Closing balance 12,204 9,852

4. Due from Head Office mainly represents inter branch transactions.

3.1 Ijarah
2024
5. Deposits Note 2024 2023
Cost Accumulated Depreciation
Book Value as at In Local In Foreign In Local In Foreign
At January 1, Additions / At December 31, At January 1, Charge for the At December 31, Total Total
December 31, 2024 Currency currencies Currency currencies
2024 (deletions) 2024 2024 year 2024 --------------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------
--------------------------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------------------- Customers
Plant & Machinery 230,385 - 86,579 124,787 1,264 (4,164) 90,743 Current deposits 333,951,554 9,960,998 343,912,552 144,339,312 3,054,061 147,393,373
(143,806) (130,215) Savings deposits 122,413,890 840,298 123,254,188 67,293,259 - 67,293,259
Term deposits 5,223,078 - 5,223,078 24,888,049 - 24,888,049
Vehicles 259,661 81,858 263,353 154,884 75,399 170,445 92,908 461,588,522 10,801,296 472,389,818 236,520,620 3,054,061 239,574,681
Financial Institutions
(78,166) (59,838)
Current deposits 1,164,744 - 1,164,744 603,101 - 603,101
Total 490,046 (140,114) 349,932 279,671 (113,390) 166,281 183,651 Savings deposits 45,900,687 - 45,900,687 137,892,427 - 137,892,427
Term deposits 33,000 - 33,000 30,000 - 30,000
47,098,431 - 47,098,431 138,525,528 - 138,525,528
5.1.1 508,686,953 10,801,296 519,488,249 375,046,148 3,054,061 378,100,209
2023
Cost Accumulated Depreciation
2024 2023
Book Value as at
At January 1, Additions / At December 31, At January 1, Charge for the At December 31, 5.1 Composition of deposits ------------------------------------- (Rupees in '000) -----------------------------
December 31, 2023
2023 (deletions) 2023 2023 year 2023
--------------------------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------------------- - Individuals 399,261,887 175,853,045
- Government / Public Sector Entities 17,276,568 33,168,440
Plant & Machinery 514,914 - 230,385 367,847 14,976 124,787 105,598
- Banking Companies 154,641 52,798
(284,529) (258,036)
- Non-Banking Financial Institutions 46,943,790 138,472,730
Vehicles 266,406 106,649 259,661 129,819 119,685 154,884 104,777 - Private Sector 55,851,363 30,553,196
(113,394) (94,620) 519,488,249 378,100,209

Total 781,320 (291,274) 490,046 497,666 (217,995) 279,671 210,375

5.1.1 This includes deposits eligible to be covered under insurance arrangements amounting to Rs.409,558.614 million (2023: Rs. 182,080.598
million).

178 United Bank Limited Annual Report 2024 179

Annexure ‘II’ as referred to in notes 2 and 9.10 of the Bank’s Annexure ‘II’ as referred to in notes 2 and 9.10 of the Bank’s
Unconsolidated and Consolidated Financial Statements
Annexure 'II' as referred to in notes 2 and 9.8 of the Bank's Unconsolidated and Consolidated Financial Statements
Unconsolidated
Annexure 'II' as referred to in notes 2 andand Consolidated
9.8 of the Bank's Unconsolidated and Financial Statements
Consolidated Financial Statements

2024 2023 General Pools

6. Charity Fund ------------------------------------- (Rupees in '000) ------------------------------------- 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
Opening balance 21,399 6,922 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.
Additions during the period
Received from customers on account of delayed payment 12,456 19,082
IERS Pool(s)
Profit on charity saving account 4,882 2,595
For General Pools , the Bank allocates PKR financing to Corporate, SME and Consumer Finance customers in diversified sectors and
17,338 21,677 avenues of the economy / business and Investments in Sovereign Guarantee Sukuk, Corporate Sukuk, Bai Muajjal with Government of
Payments / utilisation during the year Pakistan, are also done through General Pools. All remunerative deposits are tagged to these general pools and their funds generated from
Health (21,500) (4,200) the depositors are invested on priority basis.
Others - (3,000)
(21,500) (7,200)
Treasury Pool(s)
Closing balance 17,237 21,399 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.
7. Islamic Banking Business Unappropriated Profit

Opening balance 31,398,864 15,024,771 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
Impact of adoption of IFRS 9 (1,570,146) -
Add: Islamic Banking profit for the year 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
32,220,463 16,374,093
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
62,049,181 31,398,864
of the Mudarib’s equity in the pool to the total pool. The balance represents the distributable profit.
Less: Taxation (17,399,050) (8,023,306)
Closing balance 44,650,131 23,375,558
Special Pool(s) - FCY
UBL also manage Forigen Currency (FCY) special pools. The objective of Pool is to meet the FCY Liquidity requirement. The funds in this
8. Contingencies and commitments
pool are generally deployed in FCY Placment of funds with State Bank under the mode of Islamic Naya Pakistan Certificate, Loss (if any) is
borne by the Rabulmaal as per ratio of investment of the pool.
- Guarantees 321,847 228,481
- Commitments 10,214,840 6,413,657
Equity Pool(s)
10,536,687 6,642,138
All other assets including fixed assets, advance against financing, bai-salam financing and subsidized financing to Bank's employees are
9. Profit / Return earned on financing, investments and placement 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
Profit earned on: from its own sources / equity.
Financing 9,796,010 10,977,717
Investments 57,866,298 38,657,364 During the year, the Bank has given General Hiba to the depositors in General and specific pool, keeping in view the prescribed guidelines of
Placements 246,481 418,360 Pool Management provided by the SBP. However, Hiba are given at the sole discretion of the Bank without any contractual commitment with
Rental Income from Ijarah 131,145 220,551 the depositors.
68,039,934 50,273,992
The Mudarib’s share on Deposits for the period ended Dec 31, 2024 is Rs.9,512.41 million (29.64% of distributable profit of Mudarabah Pool)
of this, an amount of Rs.2,417.06 million (25.41% of Mudarib share) was distributed back to depositors as Hiba. The rate of profit earned on
10. Profit on Deposits and other dues expensed
average earning assets was 19.06% per annum and the rate of profit paid on average deposits was 14.84% per annum.
Deposits and other accounts 24,963,329 21,046,458
Due to Financial Institutions 4,531,023 8,662,756 The risk characteristics of pools
Return expense on leases 314,034 163,131
29,808,386 29,872,345 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.
11. 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. 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.
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
- Profit of pool is calculated after deduction of expenses directly incurred in earning the income of such pool, the directly related costs
funds, the Bank prioritizes the funds received from depositors over the funds generated from own sources after meeting the regulatory
comprise of depreciation on ijarah assets, takaful premium, Amortization of Premium on investment etc.
requirement relating to such deposits.

- No expense of general or administrative nature is charged to the pools.

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.
- 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.

180 United Bank Limited Annual Report 2024 181

Annexure ‘II’ as referred to in notes 2 and 9.10 of the Bank’s Annexure ‘III’ as referred to in Note 10.6 of the Bank’s
Unconsolidated and
Annexure 'II' as referred to in notes Consolidated
2 and Financial
9.8 of the Bank's Unconsolidated Statements
and Consolidated Financial Statements Unconsolidated Financial Statements
Annexure 'III' as referred to in Note 10.6 of the Bank's Unconsolidated Financial Statements

The Bank managed following pools during the year. Disposals of property and equipment to related parties during the year 2024

2024
Accumulated Book Sale
Cost Mode of disposal Particulars of Purchaser
Profit rate depreciation value proceeds
Mudarib fee / Average Percentage of Amount of
and Average
No of Nature of Profit Musharkah profit rate / Mudarib share Mudarib share ------------------------------------ (Rupees in '000) ------------------------------------
weightages profit rate
Pools Pool Sharing ratio share / Wakala return transferred through transferred
announce- earned
Fee distributed Hiba through Hiba Electrical and Office Appliances
ment period
Generators 1,516 1,516 - 455 Insurance UBL Insurers Limited
% % Rupees in '000 % % Rupees in '000
Air Conditioners 1,459 1,284 175 649 Insurance UBL Insurers Limited
Electrical Equipment 2,389 2,076 313 1,119 Insurance UBL Insurers Limited
ADMA Pools 12 Mudarbaha Monthly 12.79% 46.74% 627,358 8.16% 15.01% 94,139 5,364 4,876 488 2,223
Special Pools 126 Mudarbaha Monthly 18.73% 13.03% 2,285,933 17.34% 41.26% 943,137
IERS Pools 24 Musharkah Monthly 16.77% 56.16% 809,014 16.77% 0.00% -
Furniture and Fixture
FCY Pools 12 Mudarbaha Monthly 2.13% 50.00% 4,594 1.06% 0.00% -
Table 326 274 52 161 Insurance UBL Insurers Limited
General Pools 12 Mudarbaha Monthly 20.06% 50.00% 6,594,524 11.94% 20.92% 1,379,787
Chair 490 223 267 379 Insurance UBL Insurers Limited
Treasury Pools 273 Musharkah Monthly 17.22% 13.61% 621,363 15.70% 0.00% -
Sofa Set 215 99 116 161 Insurance UBL Insurers Limited
Others 336 329 7 142 Insurance UBL Insurers Limited
1,367 925 442 843
2023

Profit rate IT Equipments

Mudarib fee / Average Percentage of Amount of
and Average ATM 439 306 133 182 Insurance UBL Insurers Limited
No of Nature of Profit Musharkah profit rate / Mudarib share Mudarib share
weightages profit rate
Pools Pool Sharing ratio share / Wakala return transferred through transferred Desktop Computer 709 463 246 455 Insurance UBL Insurers Limited
announce- earned
Fee distributed Hiba through Hiba Laptop 834 622 212 375 Insurance UBL Insurers Limited
ment period
Telecom Devices 183 183 - 55 Insurance UBL Insurers Limited
% % Rupees in '000 % % Rupees in '000 Telecom Devices 360 360 - 36 As per Policy Tariq Rashid
Telecom Devices 358 358 - 36 As per Policy Imran Sarwar
ADMA Pools 12 Mudarbaha Monthly 12.27% 35.00% 317,307 8.58% 13.99% 44,397 Laptop 115 103 12 23 As per Policy Imran Sarwar
Special Pools 136 Mudarbaha Monthly 20.05% 21.10% 1,123,263 17.65% 50.88% 571,511 Other IT Equipment 656 564 92 286 Insurance UBL Insurers Limited
IERS Pools 24 Musharkah Monthly 16.76% 68.99% 1,754,701 14.99% 0.00% - 3,654 2,959 695 1,448
FCY Pools 24 Mudarbaha Monthly 2.14% 50.00% 10,766 1.06% 0.00% -
General Pools 12 Mudarbaha Monthly 20.43% 50.00% 10,043,312 15.97% 56.32% 5,656,190 Total 10,385 8,760 1,625 4,514
Treasury Pools 5 Mudarbaha Monthly 18.67% 6.27% 21,442 17.71% 5.35% 1,148
Treasury Pools 3 Wakala Monthly 21.24% 6.01% 1,653 20.33% 0.00% -
Treasury Pools 503 Musharkah Monthly 19.95% 10.87% 905,230 19.35% 0.00% -

2024 2023
------------------------------------- (Rupees in '000) -------------------------------------
11.1 Deployment of Mudarabah based deposits by class of business

Chemical and pharmaceuticals 11,119,892 5,934,303

Agri business 64,330,828 12,974
Textile 6,937,944 5,931,200
Financial 800,000 2,329,054
Food industries - 52,926
Plastic 197,855 291,051
Individuals 26,446,650 15,287,661
Production and transmission of energy 18,216,021 19,682,190
Government of Pakistan Securities 110,166,197 321,835,785
Others 31,107,952 9,090,932
269,323,339 380,448,076

182 United Bank Limited Annual Report 2024 183

 Following are the key audit matters:

Key audit matters How the matter was addressed in our audit

1. Expected credit loss against advances

As disclosed in Note 9 to the consolidated financial statements, We applied a range of audit procedures including the following:
the Group’s advances represent 17.9% of its total assets as of 31 • We reviewed the management’s process of assessment of
December 2024. allowance for ECL against advances including the Group’s
accounting policy and ECL model methodology adopted
During the year, the Group has adopted IFRS 9 - “Financial during the year.
Instruments” (as applicable in Pakistan), which requires a forward-
looking approach to estimate the Expected Credit Loss (“ECL”) • We performed procedures to test:
against advances and other financial instruments. As allowed o the governance of ECL models and their validation,
INDEPENDENT AUDITOR’S REPORT under IFRS 9, the Group has adopted the requirements of the
standard retrospectively, without restating the previous year’s o
including relevant approvals.
completeness and accuracy of critical data inputs into
financial information. The adoption of IFRS 9 has resulted in a the ECL models and calculations.
transition adjustment to the retained earnings as of 1 January 2024 o timely identification of SICR and the determination of
of Rs. 4,327.814 million. The impact of transition is explained in individually impaired exposures.
To the members of United Bank Limited Note 2.6.1.3 to the consolidated financial statements. o the management’s assessment of recoverable cash
flows, including the impact of collateral, if any, and
Report on the Audit of the Financial Statements In view of the significance of this area in terms of its impact on o ECL computation for exposures.
the consolidated financial statements, and level of involvement of
Opinion management’s estimates and judgments, we identified adequacy • Where required, we involved our experts to assist us in
and completeness of ECL against advances as a key audit matter. reviewing model calculations, evaluating interrelated
We have audited the annexed consolidated financial statements of United Bank Limited (the bank) and its subsidiaries (the inputs (including EADs, PDs and LGDs) and assessing
group), which comprise the consolidated statement of financial position as at 31 December 2024, the consolidated profit and The accounting policy and disclosures related to the ECL against reasonableness of assumptions used in the ECL models.
loss account, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the advances are included in Notes 4.2 and 9.4 respectively to the
consolidated cash flows statement for the year then ended, notes to the consolidated financial statements including material consolidated financial statements. • We also assessed adequacy of disclosures as included in
accounting policy information and other explanatory information and we state that we have obtained all the information and Note 9.4 to the consolidated financial statements regarding
explanations which, to the best of our knowledge and belief, were necessary for the purposes of the audit. the ECL made against advances in accordance with the
requirements of the applicable financial reporting framework.
In our opinion and to the best of our information and according to the explanations given to us, the consolidated statement of
financial position, the consolidated statement of profit and loss account, the consolidated statement of comprehensive income, the Information Other than the Financial Statements and Auditors’ Report Thereon
consolidated statement of changes in equity and the consolidated cash flow statement together with the notes forming part thereof
conform with the accounting and reporting standards as applicable in Pakistan, and gives the information required by the Banking
Management is responsible for the other information. The other information comprises the information included in the Annual Report,
Companies Ordinance, 1962 and the Companies Act, 2017 (XIX of 2017), in the manner so required and respectively give a true and
but does not include the financial statements and our auditors’ report thereon.
fair view of the state of the Group’s affairs as at 31 December 2024 and of the profit, the other comprehensive income, the changes
in equity and its cash flows for the year then ended.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion
thereon.
Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Pakistan. Our responsibilities In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise
our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ Code of appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this
Ethics for Professional Accountants as adopted by the Institute of Chartered Accountants of Pakistan (the Code) and we have fulfilled other information, we are required to report that fact. We have nothing to report in this regard.
our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion. Responsibilities of Management and the Board of Directors for the Financial Statements

Key Audit Matters Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting and
reporting standards as applicable in Pakistan, the requirements of Banking Companies Ordinance, 1962 and the Companies Act, 2017
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements (XIX of 2017) and for such internal control as management determines is necessary to enable the preparation of financial statements that
of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming are free from material misstatement, whether due to fraud or error.
our opinion thereon, and we do not provide a separate opinion on these matters.
In preparing the financial statements, management is responsible for assessing the Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either
intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

The Board of directors is responsible for overseeing the Group’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with ISAs as applicable in Pakistan will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

184 United Bank Limited Annual Report 2024 185

As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
Consolidated Statement of Financial Position
As at December 31, 2024
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform
AS AT DECEMBER 31, 2024
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud Note 2024 2023
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. ------------------------------------------ (Rupees in ‘000) ----------------------------
ASSETS
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the Cash and balances with treasury banks 5 310,836,376 277,355,760
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. Balances with other banks 6 59,968,246 33,430,371
Lendings to financial institutions 7 18,492,483 39,316,270
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures Investments 8 5,889,765,841 4,435,750,870
made by management.
Advances 9 1,443,481,944 872,040,932
Property and Equipment 10 85,591,999 76,460,159
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
Right-of-use of assets 11 10,231,121 8,611,473
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s Intangible assets 12 2,792,016 2,552,398
report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our Deferred tax assets 13 - -
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions Other assets 14 247,937,251 159,156,653
may cause the Group to cease to continue as a going concern. 8,069,097,277 5,904,674,886

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the LIABILITIES
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Bills payable 16 44,221,818 21,734,531
Borrowings 17 4,855,373,516 2,823,887,914
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and Deposits and other accounts 18 2,639,875,985 2,634,716,102
performance of the group audit. We remain solely responsible for our audit opinion. Lease liabilities 19 12,381,018 10,474,561
Subordinated debt 20 10,000,000 10,000,000
We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant Deferred tax liabilities 13 39,311,263 2,079,220
audit findings, including any significant deficiencies in internal control that we identify during our audit. Other liabilities 21 147,125,664 115,909,963
7,748,289,264 5,618,802,291
We also provide to the Board of Directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
NET ASSETS 320,808,013 285,872,595
independence, and where applicable, related safeguards.

REPRESENTED BY:
From the matters communicated with the Board of Directors, we determine those matters that were of most significance in the audit of Share capital 22 12,241,797 12,241,797
the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report Reserves 114,734,831 116,771,416
unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a Surplus on revaluation of assets - net 23 77,309,424 44,575,947
matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to Unappropriated profit 116,472,051 97,379,056
outweigh the public interest benefits of such communication.
Total equity attributable to the equity holders of the Bank 320,758,103 270,968,216
The engagement partner on the audit resulting in this independent auditor’s report is Omer Chughtai.
Non-controlling interest 24 49,910 14,904,379
320,808,013 285,872,595

CONTINGENCIES AND COMMITMENTS 25

Chartered Accountants
Place: Karachi The annexed notes 1 to 53 and annexures I, II and III form an integral part of these consolidated financial statements.
Date:

UDIN:

Syed Manzoor Hussain Zaidi Muhammad Jawaid Iqbal Shazia Syed Daniel Michael Howlett Sir Mohammed Anwar Pervez, OBE, HPk
Chief Financial Officer President & Director Director Chairman
Chief Executive Officer

             

Chief Financial Officer President & Director Director Chairman
Chief Executive Officer

186 United Bank Limited Annual Report 2024 187

Consolidated Profit and Loss Account Consolidated Statement of Comprehensive Income
For the year ended December 31, 2024
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year
CONSOLIDATED endedOFDecember
STATEMENT 31,
COMPREHENSIVE 2024
INCOME
FOR THE YEAR ENDED DECEMBER 31, 2024 FOR THE YEAR ENDED DECEMBER 31, 2024
Note 2024 2023 2024 2023
------- (Rupees in '000) -------
------ (Rupees in ‘000) ------
Mark-up / return / interest earned 27 1,084,641,497 535,211,524 Profit after taxation for the year attributable to:
Mark-up / return / interest expensed 28 911,093,616 386,236,455
Equity holders of the Bank 75,155,853 55,145,075
Net mark-up / interest income 173,547,881 148,975,069
Non-controlling interest 621,591 1,325,846
Non mark-up / interest income 75,777,444 56,470,921
Fee and commission income 29 21,535,329 19,751,084 Other comprehensive income
Dividend income 1,741,707 1,614,470
Foreign exchange income 12,559,992 12,715,845 Items that may be reclassified to profit and loss account in subsequent periods
Gain / (Loss) on derivatives 1,230,801 (65,266)
Gain on securities - net 30 42,592,701 532,782 Effect of translation of net investment in foreign branches and subsidiaries
Capital gain on derecognition of financial assets measured at amortised cost 2,894,427 - Equity holders of the Bank (1,382,628) 19,564,664
Other income 31 1,139,575 1,523,109
Non-controlling interest (217,940) 2,739,248
Total non mark-up / interest income 83,694,532 36,072,024
Total income 257,242,413 185,047,093 (1,600,568) 22,303,912
Less: Reserve reclassified to profit and loss on disposal of subisdiary (8,706,711) -
Non mark-up / interest expenses (10,307,279) 22,303,912
Operating expenses 32 97,104,258 70,093,696
Workers' Welfare Fund 33 3,145,755 2,158,813 Movement in surplus / (deficit) on revaluation of debt investments throught FVOCI - net of tax
Other charges 34 75,270 240,326 Equity holders of the Bank 33,607,524 23,880,646
Total non mark-up / interest expenses 100,325,283 72,492,835 Non-controlling interest 405,717 922,755
34,013,241 24,803,401
Share of gain / (loss) of associates 8.5.1 895,183 (989,536)
23,705,962 47,107,313
Profit before credit loss allowance 157,812,313 111,564,722
Credit loss allowance / provisions and write-offs - net 35 12,775,474 980,157 Items that will not be reclassified to profit and loss account in subsequent periods
Profit before taxation from continuing operations 145,036,839 110,584,565
Remeasurement gain on defined benefit obligations - net of tax
Taxation 36 70,198,005 54,113,644
Equity holders of the Bank 4,197,565 1,122,792
Profit after taxation from continuing operations 74,838,834 56,470,921 Non-controlling interest 370 49,480
4,197,935 1,172,272
Discontinued operations

Profit from discontinued operations - net of tax 938,610 - Movement in surplus on revaluation of investment in equity investments - net of tax
Equity holders of the Bank 4,856,315 1,688,431
75,777,444 56,470,921
Non-controlling interest - -
Attributable to:
4,856,315 1,688,431
Equity holders of the Bank
from continuing operations 74,823,735 55,145,075 Movement in surplus on revaluation of property and equipment - net of tax
from discontinued operations 332,118 - Equity holders of the Bank 252,545 915,183
75,155,853 55,145,075 Non-controlling interest (74,091) 741,749
Non-controlling interest
178,454 1,656,932
from continuing operations 24.1 15,099 1,325,846
from discontinued operation 606,492 - Movement in surplus on revaluation of non-banking assets - net of tax
621,591 1,325,846 Equity holders of the Bank 1,146 -
75,777,444 56,470,921
9,233,850 4,517,635
------------ (Rupees) ------------
Total comprehensive income for the year 108,717,256 108,095,869
Earnings per share for profit from continuing operations attributable to
the equity holders of the Bank Attributable to:
Basic and diluted 61.12 45.05 Equity holders of the Bank 107,981,609 102,316,791
Non-controlling interest 735,647 5,779,078
Earnings per share for profit attributable to the equity holders of the Bank
Basic and diluted 38 61.39 45.05 108,717,256 108,095,869

The annexed notes 1 to 53 and annexures I, II and III form an integral part of these consolidated financial statements. The annexed notes 1 to 53 and annexures I, II and III form an integral part of these consolidated financial statements.

Syed Manzoor Hussain Zaidi Muhammad Jawaid Iqbal Shazia Syed Daniel Michael Howlett Sir Mohammed Anwar Pervez, OBE, HPk
Chief Financial Officer
   President
 & Director
  Director
     Chairman
 
             

Chief Financial Officer Chief Executive
President & Officer Director Director Chairman Chief FinancialHussain
Officer Zaidi President & Jawaid Iqbal Director Director Chairman
Syed Manzoor Muhammad Shazia Syed Daniel Michael Howlett Sir Mohammed Anwar Pervez, OBE, HPk
Chief Executive Officer Chief Executive Officer
Chief Financial Officer President & Director Director Chairman
Chief Executive Officer
188 United Bank Limited Annual Report 2024 189
2
Consolidated Statement of Changes in Equity Consolidated Cash Flow Statement
For the year ended December 31, 2024
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended December 31, 2024
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2024 FOR THE YEAR ENDED DECEMBER 31, 2024
Attributable to equity holders of the Bank Note 2024 2023
Capital Surplus / (deficit) on revaluation of Non-
Share Statutory reserve - Non Unappro- controlling Total ----------- (Rupees in '000) -----------
Property and Sub-total
Capital reserve Exchange Investments Banking priated profit Interest CASH FLOW FROM OPERATING ACTIVITIES
Equipment
translation Assets Profit before taxation including discontinued operations 145,036,839 110,584,565
---------------------------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------------------- Less: Dividend income (1,741,707) (1,614,470)
Balance as at January 01, 2023 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 (Less) / Add: Share of gain / loss of associates (895,183) 989,536
142,399,949 109,959,631
Total comprehensive income for the year ended
Adjustments:
December 31, 2023
Depreciation on property and equipment 5,849,218 4,524,584
Profit after taxation for the year ended December 31, 2023 - - - - - - 55,145,075 55,145,075 1,325,846 56,470,921 Depreciation on right-of-use assets 2,520,644 2,336,379
Other comprehensive income - net of tax - - 19,564,664 25,569,077 915,183 - 1,122,792 47,171,716 4,453,232 51,624,948 Depreciation on non-banking assets acquired in satisfaction of claims 3,226 3,012
Depreciation on Islamic financing against leased assets (Ijarah) 79,527 135,236
Total comprehensive income for the year ended
December 31, 2023 - - 19,564,664 25,569,077 915,183 - 56,267,867 102,316,791 5,779,078 108,095,869 Amortisation 1,022,553 1,085,264
Workers' Welfare Fund - charge 3,145,755 2,158,813
Transfer from surplus on revaluation upon disposal Provision for retirement benefits 91,706 650,477
to unappropriated profit - net of tax - - - - (1,474,233) - 1,474,233 - - -
Credit loss allowance against loans and advances - net 11,253,648 (4,893,500)
Transfer of incremental depreciation from revaluation Credit loss allowance against off - balance sheet obligations - net 1,303,408 (29,304)
of property and equipment to unappropriated profit - net of tax - - - - (88,377) - 88,377 - - - Credit loss allowance for diminution in value of investments - net (15,723,998) 6,110,045
Transfer to statutory reserve - 5,318,042 - - - - (5,318,042) - - - Interest expense on lease liability against right-of-use assets 1,504,645 1,236,242
Gain on sale of operating property and equipment - net (234,287) (487,633)
Transfer from statutory reserve on liquidation of subsidiary - - - - - - - - - - Transfer of exchange translation reserve to profit and loss on derecognition of subsidiary (8,706,711) -
Transactions with owners, recorded
Gain on sale of Ijarah assets - net (1,016) (2,068)
directly in equity Bad debts written off directly 54,951 149,845
Unrealised gain on revaluation of investments classified as FVPL (35,068) 79,074
Final cash dividend - December 31, 2022 declared
subsequent to the year end at Rs. 9.0 per share - - - - - - (11,017,617) (11,017,617) - (11,017,617) Credit loss allowance against other assets 476,252 (29,016)
Interim cash dividend - March 31, 2023 declared Other provisions / write-offs 160,014 149,432
at Rs. 11.0 per share - - - - - - (13,465,977) (13,465,977) - (13,465,977) 2,764,467 13,176,882
Interim cash dividend - June 30, 2023 declared 145,164,416 123,136,513
at Rs. 11.0 per share - - - - - - (13,465,977) (13,465,977) - (13,465,977) (Increase) / decrease in operating assets
Interim cash dividend - September 30, 2023 declared Lendings to financial institutions 20,823,787 46,526,451
at Rs. 11.0 per share - - - - - - (13,465,977) (13,465,977) - (13,465,977) Securities cassified as FVPL 55,025,621 (51,489,494)
- - - - - - (51,415,548) (51,415,548) - (51,415,548) Advances (582,847,466) 228,743,108
12,241,797 46,878,123 69,893,293 2,780,637 41,795,310 - 97,379,056 270,968,216 14,904,379 285,872,595
Other assets (excluding advance taxation) (79,237,101) (72,368,543)
Balance as at December 31, 2023
(586,235,159) 151,411,522
Effect of reclassification on adoption of IFRS 9 - ECL (net of tax) - - - (2,973,630) - - 2,973,630 - - - Increase / (decrease) in operating liabilities
Bills payable 22,487,287 (11,295,902)
Effect of adoption of IFRS 9 - ECL (net of tax) - - - - - - (4,327,814) (4,327,814) - (4,327,814)
Borrowings 2,031,485,602 2,257,653,694
- - - (2,973,630) - - (1,354,184) (4,327,814) - (4,327,814)
Balance as at January 01, 2024 - Restated 12,241,797 46,878,123 69,893,293 (192,993) 41,795,310 - 96,024,872 266,640,402 14,904,379 281,544,781
Deposits and other accounts 5,159,883 596,706,389
Other liabilities 27,144,404 18,975,940
Total comprehensive income for the year ended 2,086,277,176 2,862,040,121
December 31, 2024 1,645,206,433 3,136,588,156
Payments on account of staff retirement benefits (5,669,400) (689,109)
Profit after taxation for the year ended December 31, 2024 - - - - - - 75,155,853 75,155,853 621,591 75,777,444
- - (10,089,339) 38,463,839 252,545 1,146 4,197,565 32,825,756 114,056 32,939,812
Income taxes paid (83,561,332) (45,909,594)
Other comprehensive income - net of tax
Net cash flow generated from / (used in) operating activities 1,555,975,701 3,089,989,453
Total comprehensive income for the year ended
December 31, 2024 - - (10,089,339) 38,463,839 252,545 1,146 79,353,418 107,981,609 735,647 108,717,256 CASH FLOW FROM INVESTING ACTIVITIES
Transfer from surplus on revaluation upon Net investments in securities classified as FVOCI (1,453,132,892) (2,959,185,607)
disposal to unappropriated profit - net of tax - - - - (22,930) - 22,930 - - - Net investments in amortized cost securities 40,239,285 63,738,624
Net investments in associates (811,921) 2,031,927
Transfer of incremental depreciation from revaluation
of property and equipment to unappropriated profit - net of tax - - - - (78,513) - 78,513 - - - Investment in property and equipment and intangible assets (16,615,615) (8,913,174)
Dividend income received 1,741,707 1,614,470
Transfer to statutory reserve - 8,052,754 - - - - (8,052,754) - - -
Sale proceeds from disposal of property and equipment and intangible assets 358,842 2,020,722
Transfer of net loss on disposal of FVOCI equity investments Sale proceeds from sale of Ijarah assets 19,344 47,335
from surplus to unappropiateed profit - net of tax - - - 48,249 - - (48,249) - - - Effect of translation of net investment in overseas branches and subsidiaries (10,307,279) 22,303,912
Derecognition of subsidiary - - - 535,734 (3,492,963) - 2,957,229 - (15,590,116) (15,590,116) Net cash flow used in investing activities (1,438,508,529) (2,876,341,791)

Transactions with owners, recorded CASH FLOW FROM FINANCING ACTIVITIES

directly in equity Lease obligation - (3,556)
Final cash dividend - December 31, 2023 declared Payment of lease liability against right-of-use assets (3,623,173) (3,343,300)
subsequent to the year end at Rs. 11.0 per share - - - - - - (13,465,977) (13,465,977) - (13,465,977) Dividends paid (53,825,508) (59,235,966)
Interim cash dividend - March 31, 2024 Net cash flow used in financing activities (57,448,681) (62,582,822)
declared at Rs. 11.0 per share - - - - - - (13,465,977) (13,465,977) - (13,465,977)
Interim cash dividend - June 30, 2024 Increase in cash and cash equivalents 60,018,491 151,064,840
declared at Rs. 11.0 per share - - - - - - (13,465,977) (13,465,977) - (13,465,977)
Cash and cash equivalents at the beginning of the year 312,451,157 135,606,095
Interim cash dividend - September 30, 2024
Effect of exchange rate changes on cash and cash equivalents (1,665,026) 24,115,196
310,786,131 159,721,291
declared at Rs. 11.0 per share - - - - - - (13,465,977) (13,465,977) - (13,465,977)
Cash and cash equivalents at the end of the year 39 370,804,622 310,786,131
- - - - - - (53,863,908) (53,863,908) - (53,863,908)
Balance as at December 31, 2024 12,241,797 54,930,877 59,803,954 38,854,829 38,453,449 1,146 116,472,051 320,758,103 49,910 320,808,013 The annexed notes 1 to 53 and annexures I, II and III form an integral part of these consolidated financial statements.
The annexed notes 1 to 53 and annexures I, II and III form an integral part of these consolidated financial statements.

Syed Manzoor Hussain Zaidi Muhammad Jawaid Iqbal Shazia Syed Daniel Michael Howlett Sir Mohammed Anwar Pervez, OBE, HPk
Syed Manzoor Hussain Zaidi Muhammad Jawaid Iqbal Shazia Syed Daniel Michael Howlett Sir Mohammed Anwar Pervez, OBE, HPk Chief Financial Officer President & Director Director Chairman
Chief Financial Officer President & Director Director Chairman
Chief Executive Officer
Chief Executive Officer
             
             

Chief Financial Officer President & Director Director Chairman Chief Financial Officer President & Director Director Chairman
Chief Executive Officer Chief Executive Officer

4
190 United Bank Limited Annual Report 2024 191
Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
For TOthe
NOTES year PART
AND FORMING ended December
OF THE CONSOLIDATED 31,STATEMENTS
FINANCIAL 2024 For the
NOTES TO year PART
AND FORMING ended December
OF THE CONSOLIDATED 31, STATEMENTS
FINANCIAL 2024
FOR THE YEAR ENDED DECEMBER 31, 2024 FOR THE YEAR ENDED DECEMBER 31, 2024

1. STATUS AND NATURE OF BUSINESS

2.6 Standards, interpretations and amendments to accounting and reporting standards that are effective in the current year
The "Group" consists of:
There are certain amendments to existing accounting and reporting standards that have become applicable to the Bank for accounting periods beginning on
- Holding company or after January 01, 2024. Except for IFRS 9, these are either considered not to be relevant or do not have any significant impact and accordingly have not
been detailed in these consolidated financial statements.
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, 2.6.1 IFRS 9 - Financial Instruments
Karachi respectively. The Bank operates 1,474 (2023: 1,356) branches inside Pakistan including 496 (2023: 209) Islamic Banking branches and 2 (2023:
2) branches in Export Processing Zones. The Bank also operates 8 (2023: 8) branches outside Pakistan. The Bank is a subsidiary of Bestway 2.6.1.1 The Bank has adopted IFRS 9 (read with IFRS 9 application instructions issued by SBP) retrospectively with date of initial application as January 01, 2024,
International Holdings Limited (BIHL) and BIHL is a wholly owned subsidiary of Bestway Group Limited (BGL), both of which have been incorporated in which resulted in changes in accounting policies and adjustments to the amounts previously recognised in the financial statements. In terms of the
the Guernsey. transitional provisions of IFRS 9, adjustments to the carrying amounts of financial assets and liabilities at the date of transition were recognised in the
opening unappropriated profit and other reserves at the beginning of the current period without restating the comparative figures. Therefore, the comparative
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 information for 2023 is not comparable for 2024.The impact on carrying amounts of the financial assets and liabilities is disclosed in Note 2.6.1.3.
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 2.6.1.2 Scope of IFRS 9 application
Rule 144A under the US Securities Act of 1933 and an offering outside the United States in reliance on Regulation S.
IFRS 9 has been applicable in several overseas jurisdictions at various effective dates starting from January 01, 2018. The requirements of this standard
- Subsidiary companies were already incorporated in the Bank’s financial statements for the jurisdictions where IFRS 9 has been adopted in accordance with the financial reporting
regimes of their respective jurisdictions. The results of those overseas operations where IFRS 9 is not applicable will be directly incorporated in the Bank’s
- UBL Fund Managers Limited, Pakistan - 98.87% shareholding (2023: 98.87% shareholding)
financial statements as per the respective jurisdiction's regulations, for the year ending December 31, 2024. As per the SBP IFRS 9 application instructions,
all oversas jurisdictions will be subject to the IFRS 9 requirements from next financial year.
UBL Fund Managers Limited (UBL FM or the Company) was incorporated as an unlisted public limited company in Pakistan on April 03, 2001. The
Company is licensed to carry out Asset Management and Investment Advisory Services under the Non-Banking Finance Companies (Establishment and
Upon implementation of IFRS 9, the Banking Industry sought certain technical clarifications from SBP and also identified practical difficulties with respect to
Regulation) Rules, 2003 and the Non-Banking Finance Companies and Notified Entities Regulations, 2008. The principal activities of the Company are
(i) valuation of unquoted equity securities, (ii) recognition of interest income/expense on financial instruments using the Effective Interest Method (EIR), and
floating and managing mutual funds and providing investment advisory services. The registered office of the Company is situated at STSM Building,
(iii) Revenue recognition of Islamic financial instruments.With respect to (i) and (ii), the SBP has allowed temporary extension in timeline with directions to
Beaumont Road, Civil Lines, Karachi.
implement IFRS 9 requirements from 1 January 2025 and 1 January 2026, respectively. Accordingly, the Bank has continued to apply previous accounting
- Al Ameen Financial Services (Private) Limited - effective shareholding 98.87% (2023: 98.87% effective shareholding) practices in such areas for the purposes of preparation of these financial statements. Further, with respect to (iii), the SBP has allowed Banks to continue the
existing accounting practice until further instructions. The income for the year would have been higher by approximately Rs1,295.667 million, if the same had
UBL Fund Managers has incorporated a wholly owned subsidiary Al Ameen Islamic Financial Services (Private) Limited (the Company) on February 27,
not been applied.
2015. The registered office of the Company is situated at STSM Building, Beaumont Road, Civil Lines, Karachi. The principal activities of the Company
are providing financial related services including but not limited to distribution of the financial products and the investments including units of collective 2.6.1.3 Transition disclosures
investment schemes (CIS), Voluntary Pension Scheme (VPS).
- UBL Currency Exchange (Private) Limited - shareholding 100% (2023: 100% shareholding) This note sets out the impact of adopting IFRS 9 on the statement of financial position, unappropriated profit and surplus on revaluation of investments of the
bank.
UBL Currency Exchange (Private) Limited, was incorporated in Pakistan on November 08, 2023 under the Companies Act, 2017 ('the Act'). The company
obtained license for commencement of business on April 30, 2024 from State Bank of Pakistan. The registered office of the Company is situated at 2nd The following table reconciles the carrying amounts of financial assets, from their previous measurement category in accordance with local regulations to
Floor, UBL Head Office, I.I. Chundrigar Road, Karachi. their new measurement categories upon transition to IFRS 9 on January 01, 2024:

2 BASIS OF PRESENTATION Carrying Classification under IFRS 9

amount as per
2.1 These consolidated financial statements have been prepared in conformity with the format of financial statements prescribed by the State Bank of Pakistan IFRS 9
current At FVOCI -
(SBP) vide BPRD Circular No. 2 dated February 09, 2023. At FVOCI - At Amortized Remeasurement carrying
accounting At FVTPL without
with recycling Cost under IFRS 9 amount as at
2.2 In accordance with the directives of the Federal Government regarding the shifting of the banking system to Islamic modes, SBP has issued various circulars policy as at Dec recycling
Jan 01, 2024
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 31, 2023
------------------------------------------------------------------ (Rupees in '000) ----------------------------------------------------------------------
at appropriate profit in price on deferred payment basis. The purchase and resale arising under these arrangements are not reflected in these consolidated
financial statements as such, but are restricted to the amount of facility actually utilised and the appropriate portion of profit thereon.
Cash and balances with banks 308,030,968 - - - 308,030,968 (1,182) 308,029,786
Lendings to financial institutions 34,447,852 - - - 34,447,852 - 34,447,852
2.3 Key financial figures of the Islamic banking branches are disclosed in annexure II to these consolidated financial statements. Advances 613,565,526 - - - 613,565,526 (12,222,808) 601,342,718

2.4 The Group has prepared its consolidated financial statements on the basis that it will continue to operate as a going concern. Investments in financial assets
Held for trading 78,956,749 78,956,749 - - - - 78,956,749
2.5 STATEMENT OF COMPLIANCE Held to maturity 362,838,478 - - - 362,838,478 (344) 362,838,134
Available for sale 3,939,226,221 3,018,999 3,925,259,062 10,948,160 - (7,157) 3,939,219,064
These consolidated financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan. The Other assets 150,395,306 4,266,717 - - 146,128,589 4,253,114 154,648,420
accounting and reporting standards comprise of: Total Financial Assets 5,487,461,100 86,242,465 3,925,259,062 10,948,160 1,465,011,413 (7,978,377) 5,479,482,723
- International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as are notified under the Companies
Borrowings 2,815,470,554 - - - 2,815,470,554 - 2,815,470,554
Act, 2017;
Bills payable 21,651,784 - - - 21,651,784 - 21,651,784
- Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan as are notified under the Companies Act, Deposits 2,350,540,823 - - - 2,350,540,823 - 2,350,540,823
2017; Subordinated debt 10,000,000 - - - 10,000,000 - 10,000,000
- Provisions of and directives issued under the Banking Companies Ordinance, 1962 and the Companies Act, 2017; and Other liabilities 88,722,556 2,741,100 - - 85,981,456 1,037,902 89,760,458
- Directives issued by the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP). Total financial liabilities 5,286,385,717 2,741,100 - - 5,283,644,617 1,037,902 5,287,423,619

Whenever the requirements of the Banking Companies Ordinance, 1962, the Companies Act, 2017 or the directives issued by the SBP and the SECP differ Net Financial Assets 201,075,383 83,501,365 3,925,259,062 10,948,160 (3,818,633,204) (9,016,279) 192,059,104
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. Deferred tax assets (1,921,889) - - - - 4,688,465 2,766,576

The SBP vide BSD Circular Letter No. 10, dated August 26, 2002 has deferred the applicability of International Accounting Standard 40, Investment Property Effect on net assets on adoption of IFRS 9 (4,327,814)
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
The following explains how applying the new classification requirements of IFRS 9 led to changes in classification of certain financial assets held by the Bank
411(I)/2008 dated April 28, 2008, International Financial Reporting Standard (IFRS) 7, Financial Instruments: Disclosures has not been made applicable for
as shown in the table above:
banks. Accordingly, the requirements of these standards have not been considered in the preparation of these consolidated financial statements.
(A) Debt instruments previously classified as available for sale (AFS) but which fail the SPPI test
The SECP vide its notification SRO 633 (I)/2014 dated July 10, 2014, adopted IFRS 10 consolidated financial statements effective from the periods starting
192 from June
United Bank30, 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
Limited The Bank held a portfolio of debt instruments amounting to Rs. 1,864.933 million that failed to meet the SPPI requirement for amortised
Annual Reportcost classification
2024 193
228 of the Companies Act, 2017 will not be applicable with respect to the investment in mutual funds established under trust structure. under IFRS 9. These instruments contain provisions that, in certain circumstances, can allow the issuer to defer interest payments, but which do not accrue
additional interest. This clause breaches the criterion that interest payments should only be consideration for credit risk and the time value of money on the
 Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
For the year ended December 31, 2024
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024
For the year ended December 31, 2024
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024

(B) Designation of equity instruments at FVOCI Significant accounting estimates and areas where judgments were made by management in the application of accounting policies are as follows:
The Bank has elected to irrevocably designate investments in listed securities including REIT units and strategic investments in unquoted securities as
i) Fair valuation of financial assets (notes 4.2.2.2, 4.2.2.3, 4.2.2.4 and 8).
FVOCI amounting to Rs. 10,228.156 million and Rs. 720.004 million, respectively. These securities were previously classified as available for sale. The
ii) Expected credit loss allowance against financial assets (notes 4.2.6, 8.3, 9.4 and 9.6).
changes in fair value of such securities will no longer be reclassified to profit or loss when they are disposed of.
iii) Income taxes (notes 4.19 and 36).
(C) Reclassification from retired categories with no change in measurement iv) Defined benefit plans (notes 4.21 and 41).
v) Fair value of derivatives (note 4.4 and 26).
In addition to the above, the following debt instruments have been reclassified to new categories under IFRS 9, as their previous categories under existing vi) Revaluation and depreciation of property and equipment (notes 4.15 and 10).
local regulations were ‘retired’, with no changes to their measurement basis: vii) Amortisation of intangible assets (note 4.17 and 12).
viii) Incremental borrowing rate for leases (notes 4.16).
(i) Those previously classified as available for sale and now classified as measured at FVOCI; and ix) Valuation of non-banking assets acquired in satisfaction of claims (note 4.18).
(ii) Those previously classified as held to maturity and now classified as measured at amortised cost.
(iii) Those previously classified as held for trading and now classified as measured at FVTPL. 3. BASIS OF MEASUREMENT

The impact of transition to IFRS 9 on unappropriated profit and surplus on revaluation of investments is as follows: 3.1 Accounting convention

Surplus / (Deficit) These consolidated financial statements have been prepared under the historical cost convention except for:
Unappropriated
on revaluation Total
profit - Certain class of property and equipment and non-banking assets acquired in satisfaction of claims, which have been stated at revalued amounts less
Investments
---------------- Rupees in '000' ---------------- accumulated depreciation.
- Investments classified as FVTPL and FVOCI which are measured at fair value.
Balance as at December 31, 2023 97,379,056 2,780,637 100,159,693 - Certain derivative financial instruments, including forward exchange contracts have been stated at fair value.
Recognition of IFRS 9 ECL - net of tax (4,327,814) - (4,327,814) - Net obligations in respect of defined benefit schemes are carried at their present values.
Available for sale equity instruments reclassified as FVOCI under IFRS 9 - net of tax 2,973,630 (2,973,630) - - Right of use assets and related lease liabilities are carried at present value.
Balance under IFRS 9 as at January 01, 2024 - as restated 96,024,872 (192,993) 95,831,879
3.2 Functional and presentation currency
2.7 Standards, interpretations of and amendments to accounting and reporting standards that are not yet effective
These financial statements are presented in Pakistan Rupees, which is the Bank’s functional currency.
The following standards, amendments and interpretations as notified under the Companies Act, 2017 will be effective for accounting periods beginning on or
after January 01, 2025: 4. MATERIAL ACCOUNTING POLICIES

Standard, Interpretation or Amendment Effective date (annual periods The material accounting policies adopted in the preparation of these consolidated financial statements, are consistent with those of the previous financial
beginning on or after) year, except as disclosed in notes 4.1 and 4.2.

4.1 Changes in reporting format

Lack of exchangeability – Amendments to IAS 21 January 01, 2025
The SBP vide BPRD Circular No. 2 dated February 09, 2023 specified the new format for annual financial statements of banking companies. The new format
Classification and Measurement of Financial Instruments - Amendments to IFRS 9 and IFRS 7 January 01, 2026 has revised the disclosure requirements of the Bank for the year ended December 31, 2024 which has resulted in additional disclosures relating to IFRS 9
and reclassification of Lease liabilities and Right of use assets on the face of Statement of Financial Position out of Property and equipment and Other
IFRS 17 - Insurance Contracts January 01, 2026 Liabilities, respectively in these financial statements.

Annual Improvements to IFRS Accounting Standards - Volume 11 January 01, 2026 4.2 Financial Instruments - policies applicable from January 01, 2024

Power Purchase Agreements – Amendments to IFRS 9 and IFRS 7 January 01, 2026 Financial instruments carried on the balance sheet include Cash and balances with treasury banks, Balances with other banks, Lendings to financial
institutions, Investments, Advances, certain Other assets, Bills payable, Borrowings, Deposits, Subordinated debt and certain Other liabilities.
Sale or Contribution of Assets between an Investor and its Associate or Joint Venture - Amendments to IFRS 10 and IAS Not yet finalized
28 4.2.1 Initial recognition

Further, following new standards have been issued by IASB which are yet to be notified by the SECP for the purpose of applicability in Pakistan. Date of initial recogniition

IFRS 1 - First time adoption of International Financial Reporting Standards January 01, 2004
Advances are recognised when funds are transferred to the customers’ accounts. The Bank recognises Deposits and Bills payable when funds are
transferred to the Bank. Other financial assets and liabilities, are initially recognised on the trade date. This includes regular way trades.
IFRS 18 - Presentation and Disclosure in Financial Statements January 01, 2027
Initial measurement
IFRS 19 - Subsidiaries without Public Accountability: Disclosures January 01, 2027
On initial recognition, financial assets and financial liabilities at fair value through profit or loss (FVTPL) are initially measured at their fair value. The initial
The above standards and amendments are not expected to have any significant impact on Bank's consolidated financial statements for future periods,
measurement of other financial instruments is based on their fair value, but adjusted in respect of any transaction costs that are incremental and directly
except for IFRS 18.
attributable to the acquisition or issue of the financial instrument. Other assets and Other liabilities are measured at the transaction price.
IFRS 18 - Presentation and Disclosure in Financial Statements
When the transaction price of the instrument differs from the fair value at origination and the fair value is based on a valuation technique using only inputs
observable in market transactions, the Bank recognises the difference between the transaction price and fair value in profit and loss account. In those cases
In April 2024, the IASB issued IFRS 18, which replaces IAS 1. IFRS 18 introduces new requirements for presentation of various items within the statement of
where fair value is based on models for which some of the inputs are not observable, the difference between the transaction price and the fair value is
profit or loss, including specified totals and subtotals. Narrow-scope amendments have been made to IAS 7, which include changing the starting point for
deferred and is only recognised in profit and loss account when the inputs become observable, or when the instrument is derecognised.
determining cash flows from operations under the indirect method, from ‘profit or loss’ to ‘operating profit or loss’ and removing the optionality around
classification of cash flows from dividends and interest. In addition, there are consequential amendments to several other standards. Earlier application is
4.2.2 Classification and subsequent measurement of financial assets
permitted and must be disclosed. IFRS 18 will apply retrospectively. The Bank is currently working to identify all impacts the amendments will have on the
consolidated financial statements of future period and notes thereto. Financial assets are classified into following categories for measurement subsequent to intial recognition:
- Financial assets at amortized cost
2.8 Critical accounting estimates and judgments - Debt instruments at 'fair value through other comprehensive income' FVOCI
- Equity instruments at 'fair value through other comprehensive income' FVOCI
The preparation of these consolidated financial statements in conformity with the accounting and reporting standards as applicable in Pakistan requires
- Financial assets at 'fair value through profit or loss' FVTPL
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.

194 United Bank Limited Annual Report 2024 195

Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024

For the year ended December 31, 2024

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024
For the year ended December 31, 2024
4.2.2.5 Financial liabilities at amortised cost
4.2.2.1 Financial assets at amortised cost
These include Bills payable, Borrowings, Deposits, Subordinated debts and certain items within Other Liabilities.
The Bank classifies its financial assets at amortized cost only if both of the following conditions are met:
• The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows
4.2.3 Derecognition of financial assets
• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the
principal amount outstanding
4.2.3.1 Derecognition due to substantial modification of terms and conditions
The details of these conditions are outlined below:
The Bank derecognises a financial asset, such as a loan to a customer, when the terms and conditions have been renegotiated to the extent that,
a) Business model assessment substantially, it becomes a new loan, with the difference recognised as a derecognition gain or loss, to the extent that an impairment loss has not already
been recorded. The newly recognised loan is classified as Stage 1 for ECL measurement purposes, unless it is deemed to be purchased originated credit
The Bank determines its business model at the level that best reflects how it manages groups of financial assets to achieve its business objective.
impaired. When assessing whether or not to derecognise a loan to a customer, amongst others, the Bank considers qualitative factors such as change in
currency of the loan, introduction of an equity feature, change in counterparty, or if the modification is such that the instrument would no longer meet the
The Bank's business model is not assessed on an instrument-by-instrument basis, but at a higher level of aggregated portfolios and is based on SPPI criterion.
observable factors such as:
If the modification does not result in cash flows that are substantially different, the modification does not result in derecognition. Based on the change in cash
- How the performance of the business model and the financial assets held within that business model are evaluated and reported to the Bank's Board/
flows discounted at the original EIR, the Bank records a modification gain or loss, to the extent that an impairment loss has not already been recorded.
Board Committees
- The risks that affect the performance of the business model (and the financial assets held within that business model) and, in particular, the way those
risks are managed 4.2.3.2 Derecognition other than due to substantial modification of terms and conditions
- The expected frequency, value and timing of sales are also important aspects of the Bank’s assessment

The business model assessment is based on reasonably expected scenarios without taking 'worst case' or 'stress case’ scenarios into account. If cash A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when the rights to receive
flows after initial recognition are realised in a way that is different from the Bank's original expectations, the Bank does not change the classification of the cash flows from the financial asset have expired. The Bank also derecognises the financial asset if it has both transferred the financial asset and the transfer
remaining financial assets held in that business model, but incorporates such information when assessing newly originated or newly purchased financial qualifies for derecognition.
assets going forward.
The difference between the carrying value (including impairment) of a financial asset and the consideration received is recognized in profit and loss account.
b) The SPPI test

As a second step of its classification process the Bank assesses the contractual terms of financial asset to identify whether they meet the SPPI test. The 4.2.4 Derecognition of financial liabilities
assessment of SPPI aims to identify whether the contractual cash flows are ‘solely payments of principal and interest on the principal amount
outstanding’. A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. The difference between the carrying value of the
‘Principal’ for the purpose of this test is defined as the fair value of the financial asset at initial recognition and may change over the life of the financial financial liability and the consideration paid is recognised in profit or loss account.
asset. The most significant elements of 'interest' within a lending arrangement are typically the consideration for the time value of money and credit risk.
4.2.5 Write-offs
To make the SPPI assessment, the Bank applies judgement and considers relevant factors such as the currency in which the financial asset is
denominated, and the period for which the interest rate is set.
Financial assets are written off when there is no realistic prospect of recovery. The amount so written-off is a book entry and does not necessarily prejudice
In contrast, contractual terms that introduce a more than de minimis exposure to risks or volatility in the contractual cash flows that are unrelated to a the Bank's right of recovery against the defaulter.
basic lending arrangement do not give rise to contractual cash flows that are solely payments of principal and interest on the amount outstanding. In such
cases, the financial asset is required to be measured at FVTPL. 4.2.6 Impairment of financial assets
After initial measurement, these financial assets are subsequently measured at amortized cost.
4.2.6.1 Overview of the ECL principles
4.2.2.2 Debt instruments at FVOCI
The adoption of IFRS 9 has fundamentally changed the Bank’s loan loss impairment method by replacing the incurred loss approach of the local regulations
The Bank applies this new category under IFRS 9 when both of the following conditions are met: with a forward-looking ECL approach. The Bank has been recording the allowance for expected credit losses for all loans and other debt financial assets held
at amortised cost or FVOCI, together with loan commitments, letters of credit and financial guarantee contracts. Equity instruments are not subject to
- The instrument is held within a business model, the objective of which is achieved by both collecting contractual cash flows and selling financial assets impairment under IFRS 9. Under the SBP's instructions, local currency credit exposures guaranteed by the Government and Government Securities are
exempted from the application of ECL.
- The contractual terms of the financial asset meet the SPPI test
The ECL allowance is based on the credit losses expected to arise over the life of the asset (the lifetime expected credit loss (LTECL)), unless there has
FVOCI debt instruments are subsequently measured at fair value with gains and losses arising due to changes in fair value recognised in OCI. Interest
been no significant increase in credit risk since origination, in which case, the allowance is based on the 12 months’ expected credit loss (12mECL).
income at EIR and foreign exchange gains and losses are recognised in the profit and loss account.
The 12mECL is the portion of LTECLs that represent the ECLs that result from default events on a financial instrument that are possible within the 12 months
The ECLs for debt instruments measured at FVOCI do not reduce the carrying amount of these financial assets in the statement of financial position, which after the reporting date.
remains at fair value. Instead, an amount equal to the allowance that would arise if the assets were measured at amortised cost is recognised in OCI as an
accumulated impairment amount, with a corresponding charge to profit and loss account. The accumulated loss recognised in OCI is recycled to the profit Based on the above process, the Bank groups its financial assets into Stage 1, Stage 2 and Stage 3 as described below:
and loss account upon derecognition of the assets.
- Stage 1: When loans are first recognised, the Bank recognises an allowance based on 12mECLs. Stage 1 loans also include facilities where the credit
Market value of investment in Government securities is determined based on the relevant PKRV, PKFRV and PKISRV rates / price. risk has improved and the loan has been reclassified from Stage 2.

On derecognition, cumulative gains or losses previously recognised in OCI are reclassified from OCI to profit and loss account. - Stage 2: When a loan has shown a significant increase in credit risk since origination (SICR), the Bank records an allowance for the LTECLs. Stage 2
loans also include facilities, where the credit risk has improved and the loan has been reclassified from Stage 3.
4.2.2.3 Equity instruments at FVOCI
- Stage 3: Loans considered credit-impaired. The Bank records an allowance for the LTECLs with PD set at 100%. Under SBP's instructions, until
Upon initial recognition, the Bank elects to classify irrevocably some of its equity investments as equity instruments at FVOCI when they meet the definition implementation of IFRS 9 has stabilized, Stage 3 allowance would be taken as as higher of IFRS 9 ECL or provision computed under Prudential
of 'Equity' under IAS 32 Financial Instruments: Presentation and are not held for trading. Such classification is determined on an instrument-by-instrument Regulations.
basis and is irrevocable.
4.2.6.2 The calculation of ECLs
Gains and losses on these equity instruments are never recycled to profit and loss account. Dividends are recognised in profit and loss account when the
right of the payment has been established, except when the Bank benefits from such proceeds as a recovery of part of the cost of the instrument, in which The key elements of ECL calculations are as follows:
case, such gains are recorded in OCI. Equity instruments at FVOCI are not subject to an impairment assessment. - The Probability of Default (PD) is an estimate of the likelihood of default over a given time horizon. A default may only happen at a certain time over the
assessed period, if the facility has not been previously derecognised and is still in the portfolio. PD is estimated based on transitioning among credit
4.2.2.4 Financial assets and financial liabilities at FVTPL states. Credit states are defined by rating classes and are based on the Bank’s internal risk ratings (i.e. from 1 to 12). Through the yearly review of the
non-consumer portfolio, the Bank has drawn a yearly transition matrix of ratings to compute a count based PD over the one year horizon for the last 7
Financial assets and financial liabilities in this category are those that are: years. PDs for Non rated portfolios are calculated based on Days Past Due (DPD) bucket level for each segment separately. Where practical, they also
build on information from External Rating Agencies. PDs are then adjusted for IFRS 9 ECL calculations to incorporate forward looking information.
- held for trading, that is, they have been purchased or issued primarily for short-term profit-making through trading activities or form part of a portfolio of
financial instruments that are managed together, for which there is evidence of a recent pattern of short-term profit taking, or

- not held for trading and have been either designated by management upon initial recognition, or mandatorily required to be measured at fair value under
196 UnitedIFRS
Bank9
Limited Annual Report 2024 197
Financial assets are recorded in the statement of financial position at fair value. Changes in fair value are recorded in profit and loss account. Interest and
Notes to and forming part of the Consolidated Financial Statements Notes
NOTES TO ANDto and
FORMING forming
PART partFINANCIAL
OF THE CONSOLIDATED
FOR THE YEAR ENDED DECEMBER 31, 2024
of the Consolidated Financial Statements
STATEMENTS

For the year ended December 31, 2024

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024
For the year ended December 31, 2024
4.3.1.5 Subsequent measurement

- The Exposure at Default (EAD) is an estimate of the exposure at a future default date, taking into account expected changes in the exposure after the 4.3.1.6 Held for trading
reporting date, including repayments of principal and interest, whether scheduled by contract or otherwise, expected drawdowns on committed facilities,
accrued interest from missed payments and amortization. These are measured at subsequent reporting dates at fair value. Gains and losses on re-measurement are included in the profit and loss account.

- The Loss Given Default (LGD) is an estimate of the loss arising in the case where a default occurs at a given time. It is based on the difference between 4.3.1.7 Held to maturity
the contractual cash flows due and those that the lender would expect to receive.The Bank estimates LGD based on the history of recovery rates and
considers the recovery of any liquid collateral for each group of financial instruments. LGDs are then adjusted for IFRS 9 ECL calculations to incorporate These are measured at amortised cost using the effective interest rate method, less any impairment loss recognised to reflect irrecoverable amounts.
forward looking information.
4.3.1.8 Available for sale
The interest rate used to discount the ECLs would be based on the effective interest rate that is expected to be charged over the expected period of
exposure to the facilities. Quoted securities classified as available for sale investments are measured at subsequent reporting dates at fair value. Any surplus or deficit arising thereon
is kept in a separate account shown in the statement of financial position as part of the equity and is taken to the profit and loss account when realised upon
When estimating the ECLs, the Bank considers three probability-weighted scenarios (a base case, a best case, and a worse case). Each of these is disposal or when the investment is considered to be impaired.
associated with different PDs, EADs and LGDs. These expected probabilities are applied to a forecast EAD and multiplied by the expected LGD and
discounted by an approximation to the original EIR. This calculation is made for each of the three scenarios. Unquoted equity securities are valued at the lower of cost and break-up value. The break-up value of these securities is calculated with reference to the net
assets of the investee company as per the latest available audited financial statements. A decline in the carrying value is charged to the profit and loss
“With the exception of credit cards and other revolving facilities, the maximum period for which the credit losses are determined is the contractual life of a account. A subsequent increase in the carrying value, upto the cost of the investment, is credited to the profit and loss account. Investments in other
financial instrument unless the Bank has the legal right to call it earlier. For credit cards and revolving facilities based on past experience and the Bank’s unquoted securities are valued at cost less impairment, if any.
expectations, the Bank calculates ECL for these products over their behavioral life.
4.3.1.9 Impairment
Impairment losses and releases are accounted for and disclosed separately from modification losses or gains that are accounted for as an adjustment of the
financial asset’s gross carrying value. 4.3.1.10 Impairment of available for sale equity investments

4.2.6.3 Significant increase in credit risk Available for sale equity investments are impaired when there has been a significant or prolonged decline in their fair value below their cost. The
determination of what is significant or prolonged requires judgment. In making this judgment, the Bank evaluates, among other factors, the normal volatility in
The Bank has established a policy to perform an assessment, at the end of each reporting period, of whether a financial instrument’s credit risk has share price. A subsequent increase in the fair value of a previously impaired listed equity security is recorded in the statement of financial position in the
increased significantly since initial recognition, by considering the change in the risk of default occurring over the remaining life of the financial instrument. surplus / deficit on revaluation of securities account and only recorded through the profit and loss account when realised on disposal.
The Bank uses both qualitative and quantitative criteria for determining whether there has been a significant increase in credit risk. These include comparing
lifetime PD at the reporting date with the lifetime PD at the initial recognition of the financial asset, a backstop of thirty days past due on the contractual 4.3.1.11 Impairment of debt investments
payments, considerable deterioration in the internal or external rating (as the case maybe), moving a customer/facility to the watch list, or the account
becoming forborne. However, for certain portfolios, the Bank rebutts 30 days past due presumption based on behavioural analysis of its borrowers. Provisions for diminution in the value of debt securities are made as per the criteria prescribed by the Prudential Regulations issued by the SBP. Provision
against debt investments by the Bank's overseas branches is made as per the requirements of the respective regulatory regimes in which the overseas
branches operate.

4.2.6.4 Definition of default 4.3.1.12 Advances

The Bank considers a financial instrument defaulted for ECL calculations in all cases when the borrower becomes 90 days past due on its contractual Advances are stated net of specific and general provisions which are charged to the profit and loss account. Provision against advances by the Bank's
payments, except for agricultural loans which are considered defaulted at 365 days past due. The Bank also considers a variety of instances that may branches in Pakistan is determined on the basis of the Prudential Regulations and other directives issued by the SBP. Provision against advances by the
indicate unlikeliness to pay. When such events occur, the Bank carefully considers whether the event should result in treating the customer as defaulted and Bank's overseas branches are made in accordance with the requirements of the financial reporting regime of the respective countries in which the overseas
therefore assessed as Stage 3 for ECL calculations or whether Stage 2 is appropriate. branches operate.

4.4 Derivatives recorded at fair value through profit or loss

4.2.6.5 Forward looking information
The Bank enters into derivative transactions with various counterparties. These include cross-currency swaps, forward foreign exchange contracts and
The Bank formulates a base case view of the future direction of relevant economic variables and a representative range of other possible forecast scenarios
forward government securities transactions. Derivatives are recorded at fair value and carried as assets when their fair value is positive and as liabilities
and consideration of a variety of external actual and forecast information. This process involves developing three different economic scenarios, which
when their fair value is negative. The notional amount and fair value of such derivatives are disclosed separately under 'Commitments' and 'Other
represent a range of scenarios linked to GDP growth, CPI and Gross government debt and Unemployment rate.
assets/Other liabilities', respectively. Changes in the fair value of forward government securities transactions are included in 'Gain/(loss) on derivatives' in the
4.3 Financial instruments - policies applicable before January 01, 2024 profit and loss account, while for cross-currency swaps and forward foreign exchange contracts they are including in 'Income from dealing in foreign
currencies'.
4.3.1 Investments of the Bank, other than investments in subsidiaries and associates, are classified into following categories:
4.5 Off setting
4.3.1.1 Held for trading
Financial assets and financial liabilities are set off and the net amount is reported in the consolidated financial statements when there is a legally enforceable
right to set off and the Bank intends to either settle on a net basis, or to realize the assets and to settle the liabilities simultaneously.
These are securities which are either acquired for generating a profit from short-term fluctuations in market prices, interest rate movements and dealer's
margin, or are securities included in a portfolio in which a pattern of short term profit taking exists.
4.6 Sale under repurchase agreements
4.3.1.2 Held to maturity
Securities sold under agreements to repurchase (Repo) at a specified future date are not derecognised from the statement of financial position as the Bank
retains substantially all of the risks and rewards of ownership. The corresponding cash received is recognized in the statement of financial position as an
These are securities with fixed or determinable payments and fixed maturities, in respect of which the Bank has the positive intent and ability to hold to
asset with a corresponding obligation to return it, including accrued interest within 'Borrowings', reflecting the transaction’s economic substance as a loan to
maturity.
the Bank. The difference between the sale and repurchase prices is recorded as 'Interest expense' and is accrued over the life of the agreement using the
4.3.1.3 Available for sale contractual rate. When the counterparty has the right to sell or re-pledge the securities, the Bank reclassifies those securities in its statement of financial
position to indicate that they are pledged as collateral.
These are investments, other than those in subsidiaries and associates, that do not fall under the held for trading or held to maturity categories.
4.7 Purchase under resale agreements
4.3.1.4 Initial measurement
Securities purchased under agreements to resell at a specified future date are not recognised in the statement of financial position. The consideration paid,
All “regular way” purchases and sales of investments are recognised on the trade date, i.e., the date that the Bank commits to purchase or sell the including accrued interest, is recorded in the statement of financial position, within 'Lendings', reflecting the transaction’s economic substance as a loan by
investment. Regular way purchases or sales of investments require delivery within the time frame generally established by regulation or convention in the the Bank. The difference between the purchase and resale prices is recorded in 'Interest earned' and is accrued over the life of the agreement using the
market place. contractual rate. If securities purchased under an agreement to resell are subsequently sold to third parties, the obligation to return the securities is recorded
as a short sale within 'Other liabilities' and measured at fair value with any gains or losses included in profit and loss account.
Investments are initially recognised at fair value which, in the case of investments other than held for trading, includes transaction costs associated with the
investments. Transaction costs on investments held for trading are expensed as incurred.

198 United Bank Limited Annual Report 2024 199

Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024
p yg
For
FOR THEthe yearDECEMBER
YEAR ENDED ended December 31, 2024
31, 2024

4.8 Bai Muajjal 4.15 Property and equipment

Bai Muajjal transactions represent sales of Sukuks on a deferred payment basis and are shown in lendings to financial institutions except for transactions Property and equipment, other than land (which is not depreciated) and capital work-in-progress, are stated at cost or revalued amount less accumulated
undertaken directly with the Government of Pakistan which are disclosed as investments. The difference between the deferred payment amount receivable depreciation and accumulated impairment losses, if any. Land is carried at revalued amount less impairment losses while capital work-in-progress is stated at
and the carrying value at the time of sale is accrued and recorded as income over the life of the transaction. cost less impairment losses. The cost and the accumulated depreciation of property and equipment of overseas branches and subsidiaries include exchange
differences arising on currency translation at the year-end rates of exchange.
4.9 Basis of consolidation
Depreciation is calculated so as to write-off the depreciable amount of the assets over their expected useful lives at the rates specified in note 10.2 to these
4.9.1 Subsidiaries consolidated financial statements. The depreciation charge for the year is calculated on a straight line basis after taking into account the residual value, if
any. The residual values and useful lives are reviewed and adjusted, if appropriate, at each statement of financial position date.
The consolidated financial statements include the financial statements of the Bank and its subsidiary companies.
Depreciation on additions is charged from the month the asset is available for use. No depreciation is charged in the month of disposal.
All subsidiaries are entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns
from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully Land and buildings are revalued by independent, professionally qualified valuers with sufficient regularity to ensure that their net carrying amount does not
consolidated from the date on which control is transferred to the Group until the date that control ceases. differ materially from their fair value. An increase arising on revaluation is credited to the surplus on revaluation of property and equipment account. A
decrease arising on revaluation of property and equipment account is adjusted against the surplus of that asset or, if no surplus exists, is charged to the
The financial statements of subsidiaries are prepared for the same reporting period as the Holding Company, using accounting policies that are consistent profit and loss account as an impairment of the asset. A surplus arising subsequently on an impaired asset is reversed through the profit and loss account up
with those of the Holding Company, except for non-banking subsidiaries in Pakistan which follow the requirements of IFRS 9 and IAS 40, and overseas to the extent of the original impairment.
subsidiaries which are required to comply with local regulations enforced within the respective jurisdictions.
Surplus on revaluation of property and equipment (net of associated deferred tax) to the extent of the incremental depreciation charged on the related assets
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated is transferred to unappropriated profit.
unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary
to ensure consistency with the policies adopted by the Group. Gains and losses on sale of property and equipment are included in the profit and loss account, except that the related surplus on revaluation of property and
equipment (net of deferred tax) is transferred directly to unappropriated profit.
The Group recognises non-controlling interests (NCI) in subsidiaries at the non-controlling interest's proportionate share of the net assets. NCI in the equity
of subsidiaries are shown separately in the consolidated statement of financial position, consolidated profit and loss account, consolidated statement of Major renewals and improvements that increase the useful life of an asset are capitalised and the assets so replaced, if any, are retired. Normal repairs and
comprehensive income and consolidated statement of changes in equity. maintenance are charged to the profit and loss account as and when incurred.

4.10 Cash and cash equivalents 4.16 Lease liability and Right-of-use asset
Cash and cash equivalents for the purpose of the cash flow statement consist of cash and balances with treasury banks and balances with other banks.
The Group enters into leasing arrangements for its branches, ATMs and warehouses. Rental contracts are typically for a fixed period and may have
extension options as described below. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.
4.11 Lendings to / borrowings from financial institutions
In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option or not
The Group enters into transactions of purchase under resale agreements (reverse repos), sale under repurchase agreements (repos) and other short term
exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to
money market lendings to financial institutions at contracted rates for a specified period of time. Further, other long term lendings to financial institutions are
be extended (or not be terminated).
classified in advances. These are recorded as under:
The lease liability is initially measured at the present value of the lease payments to be made over the lease term, discounted using the interest rate implicit
4.12 Associates
in the lease, or if that rate cannot be readily determined, the Group's incremental borrowing rate.
Associates are all entities over which the Group has significant influence but not control or joint control. This is generally the case where the Group holds
between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting, after initially being The lease liability is subsequently measured at amortised cost using the effective interest rate method. The lease liability is also remeasured to reflect any
recognised at cost. reassessment or lease modification.

Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to recognise the Group’s share of the post- On initial recognition, right-of-use assets are measured at an amount equal to initial lease liability adjusted for any lease payments made at or before the
acquisition profits or losses of the investee in profit or loss, and the Group’s share of movements in other comprehensive income of the investee in other commencement date, plus any initial direct costs incurred and an estimate of costs to be incurred to dismantle and remove the underlying asset or to restore
comprehensive income. Dividends received or receivable from associates are recognised as a reduction in the carrying amount of the investment. the underlying asset or the site on which it is located.

The right-of-use asset is subsequently measured at cost model. The right of use asset is depreciated on a straight line method over the lease term as this
When the Group’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term method most closely reflects the expected pattern of consumption of future economic benefits. The right-of-use asset is reduced by impairment losses, if any,
receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity. and adjusted for certain remeasurements of the lease liability.

Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in these entities. Unrealised The Group has elected to apply the practical expedient not to recognise right-of-use assets and lease liabilities for short term leases that have a lease term of
losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. 12 months or less and leases of low-value assets. The lease payments associated with these leases is recognised as an expense on a straight line basis
over the lease term.
4.13 Finance lease receivables
4.17 Intangible assets
Leases, where the Group transfers substantially all the risks and rewards incidental to ownership of an asset to the lessee are classified as finance lease. A
receivable is recognised at an amount equal to the present value of the minimum lease payments including guaranteed residual value, if any. Finance lease Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses, if any. The amortisation charge for the year is
receivables are included in advances. calculated on a straight line basis after taking into account the residual value, if any. Amortisation on additions is charged from the month the asset is
available for use. No amortisation is charged in the month of disposal.
4.14 Islamic financings and related assets
Gains and losses on sale of intangible assets are included in the profit and loss account.
Receivables under Murabaha financing represent cost price plus an agreed profit on deferred sale arrangement. Profit could be recognised on a straight line
basis over the period of the instalments.
4.18 Non-banking assets acquired in satisfaction of claims
Ijarah financing represents arrangements whereby the Group (being the owner of assets) transfers its usufruct to its customers for an agreed period at an
Non-banking assets acquired in satisfaction of claims are carried at revalued amounts less accumulated depreciation. These assets are revalued by
agreed consideration (rentals). Assets leased out under Ijarah are stated at cost less accumulated depreciation and accumulated impairment losses, if any.
professionally qualified valuers with sufficient regularity to ensure that their net carrying value does not differ materially from their fair value. A surplus arising
These are depreciated over the term of the lease. Ijarah income is recognised on an accrual basis.
on revaluation of property is credited to the 'surplus on revaluation of non-banking assets' account. A decrease arising on revaluation of non-banking asset is
Diminishing Musharakah is partnership agreement between the Group and its customer for long term financing of assets. The receivable is recorded to the adjusted against the surplus of that asset or, if no surplus exists, is charged to the profit and loss account as an impairment of the asset. A surplus arising
extent of Group's share in the purchase of asset. Income is recognised on accrual basis. subsequently on an impaired asset is reversed through the profit and loss account up to the extent of the original impairment.

All direct costs of acquiring title to asset are charged to the profit and loss account. Gains and losses on sale of non-banking assets are included in the profit
Istisna is a sale contract where the Group places an order to the manufacturer / builders to produce certain assets and the sale is completed upon the
and loss account, except that the related surplus on revaluation of non-banking assets (net of deferred tax) is transferred directly to unappropriated profit.
delivery of the assets to the ultimate buyer.

Running Musharakah facility is to finance the working capital requirement of the customer whereas partnership is based on particular operations of the
business.

200 United Bank Limited Annual Report 2024 201

Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024 For
FOR THEthe yearDECEMBER
YEAR ENDED ended December 31, 2024
31, 2024

4.19 Taxation 4.21.1.4 United National Bank Limited (UBL UK)

Current
Defined benefit scheme
Provision for current taxation is based on taxable income for the year determined in accordance with the prevailing laws and at the prevailing rates for
UBL UK operates a pension scheme (defined benefit scheme) for certain staff. This scheme is closed for new members and the accrual of benefits has
taxation on income earned by the Group for local as well as overseas operations. The amount of current tax payable is the best estimate of the tax amount
ceased from January 1, 2010. Gains and losses on settlements and curtailments are charged to the profit and loss account. The interest cost and the
expected to be paid that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting
expected return on assets are included in other liabilities and other assets respectively. Remeasurement gains and losses are recognised immediately in
date.
other comprehensive income.
Deferred
The defined benefit scheme is funded, with the assets of the scheme held separately from those of UBL UK, in separate trustee administered funds. Pension
Deferred tax is recognised using the balance sheet method on all major temporary differences between the amounts attributed to assets and liabilities for scheme assets are measured at fair value and liabilities are measured based on actuarial valuations using the Projected Unit Credit Method. The actuarial
financial reporting purposes and the amounts used for taxation purposes. Deferred tax is calculated at the rates that are expected to apply to the period when valuations are obtained at least triennially and are updated at each statement of financial position date.
the differences are expected to reverse, based on tax rates that have been enacted or substantively enacted at the reporting date.
Defined contribution scheme
Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the assets can be utilised.
UBL UK operates a defined contributory pension scheme. The contribution payable in the year in respect of pension costs and other post-retirement benefits
The carrying amount of deferred tax assets is reviewed at each statement of financial position date and reduced to the extent that it is no longer probable is charged to the profit and loss account. Differences between the contribution payable in the year and contribution actually paid are shown as either accruals
that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be utilised. or prepayments in the statement of financial position.

The Group also recognises deferred tax asset / liability on the deficit / surplus on revaluation of property and equipment / non-banking assets acquired in 4.21.1.5 UBL Fund Managers Limited (UBL FM)
satisfaction of claims and securities which is adjusted against the related deficit / surplus in accordance with the requirements of IAS 12, Income Taxes.
Defined benefit plan

4.20 Provisions UBL FM operates an approved funded gratuity scheme for all employees. Annual contributions to the fund are made on the basis of actuarial advice using
the Projected Unit Credit Method. Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events which makes it probable that an outflow of recognised in other comprehensive income when they occur with no subsequent recycling through the profit and loss account.
resources will be required to settle the obligation and a reliable estimate of the amount can be made.
Defined contribution plan
Provision for off balance sheet obligations is recognised when intimated and reasonable certainty exists that the Bank will be required to settle the obligation.
The provision is charged to the profit and loss account net of expected recovery and the obligation is classified under other liabilities. UBL FM operates an approved contributory provident fund (defined contribution scheme) for all eligible employees.

Provisions are reviewed at each statement of financial position date and are adjusted to reflect the current best estimate. Employee Stock Option Scheme

4.21 Staff retirement and other benefits UBL FM provides an incentive scheme for its top performing employees in the form of share options under the Employee Stock Option Scheme (ESOS). The
scheme has been approved by the SECP.
4.21.1 The Bank

4.21.1.1 Staff retirement benefit schemes 4.22 Subordinated debt

Subordinated debt is initially recorded at the amount of proceeds received. Mark-up accrued on subordinated debt is recognised separately as part of other
The Bank operates the following staff retirement schemes for its employees
liabilities and is charged to the profit and loss account over the period on an accrual basis.
a) For new employees and for those who opted for the below mentioned conversion option introduced in 2001, the Bank operates
4.23 Borrowings / deposits
- an approved contributory provident fund (defined contribution scheme); and
- an approved gratuity scheme (defined benefit scheme). Borrowings / deposits are recorded at the amount of proceeds received. The cost of borrowings / deposits is recognised on an accrual basis as an expense
in the period in which it is incurred.
b) For employees who have not opted for the conversion option introduced in 2001, the Bank operates
4.24 Revenue recognition
- an approved non-contributory provident fund in lieu of the contributory provident fund; and
- an approved funded pension scheme, introduced in 1975 (defined benefit scheme).
Revenue is recognised to the extent that the economic benefits associated with a transaction will flow to the Group and the revenue can be reliably
In 2001, the Bank modified the pension scheme and introduced a conversion option for employees covered under option (b) above to move to option (a). measured. The following recognition criteria must be met before revenue is recognised.
This conversion option ceased on December 31, 2003.
4.25 Advances and investments
The Bank also operates benevolent fund for all its eligible employees (defined benefit scheme).
Mark-up / return / interest on performing advances and investments is recognised on a time proportionate basis over the term of the advances and
Annual contributions towards defined benefit schemes are made on the basis of actuarial advice using the Projected Unit Credit Method. investments that takes into account the effective yield of the asset. Where debt securities are purchased at a premium or discount, such premium / discount
is amortised through the profit and loss account over the remaining period of maturity of the debt securities.
For the defined contribution scheme, the Bank pays contributions to the fund on a periodic basis. The Bank has no further payment obligation once the
contributions have been paid. The contributions are recognised as an expense when the obligation to make payments to the fund has been established. Interest or mark-up recoverable on non-performing advances and investments is recognised on a receipt basis.
Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future payments is available.
4.26 Lease financing
4.21.1.2 Other benefits
Income from lease financing is accounted for using the financing method. Under this method, the unearned lease income (defined as the sum of total lease
a) Employees' compensated absences rentals and estimated residual value less the cost of the leased assets) is deferred and taken to income over the term of the lease so as to produce a
constant periodic rate of return on the outstanding net investment in the lease. Gains or losses on termination of lease contracts are recognised through the
The Bank makes provisions for compensated vested and non-vested absences accumulated by its eligible employees on the basis of actuarial advice
profit and loss account when these are realised. Unrealised lease income and other fees on classified leases are recognised on a receipt basis.
under the Projected Unit Credit Method.
4.27 Dividend income
b) Post-retirement medical benefits (defined benefit scheme)
Dividend income is recognised when the right to receive the dividend is established.
The Bank provides post-retirement medical benefits to eligible retired employees. Provision is made on the basis of actuarial advice under the Projected
Unit Credit Method.

4.21.1.3 Remeasurement of defined benefit obligations

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in other comprehensive
income when they occur with no subsequent recycling through the profit and loss account.

Remeasurement gains and losses pertaining to long term compensated absences are recognised in the profit and loss account immediately.

202 United Bank Limited Annual Report 2024 203

Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024 For the
NOTES TO year PART
AND FORMING ended December
OF THE CONSOLIDATED
FOR THE YEAR ENDED DECEMBER 31, 2024
31, STATEMENTS
FINANCIAL 2024
4.28 Fee, brokerage and commission income (f) Subsidiaries

The Group earns fee and commission income from a diverse range of financial services it provides to its customers. Fee and commission income is Represents operations by Bank's subsidiaries.
recognised at an amount that reflects the consideration to which the Group expects to be entitled in exchange for providing the services.
(g) Others
The Group recognises fees earned on transaction-based arrangements at a point in time when the Group has provided the service to the customer. Where Others includes functions which cannot be classified in any of the above segments.
the contract requires services to be provided over time, income is recognised on a systematic basis over the life of the related services. Unearned fee and
commission are included under Other Liabilities. 4.33 Geographical segments

4.29 Foreign currencies The Group operates in following geographical regions:

4.29.1 Functional and presentation currency - Pakistan

- Middle East
Items included in these consolidated financial statements are measured using the currency of the primary economic environment in which the Holding - Export Processing Zones in Karachi and Sialkot
Company operates. These consolidated financial statements are presented in Pakistani Rupees, which is the Group's functional and presentation currency.
4.34 Dividends and appropriations to reserves

4.29.2 Foreign currency transactions Dividends and appropriations to reserves are recorded in the year in which these are approved, except appropriations required by law which are recorded in
the period to which they pertain.
Transactions in foreign currencies are translated to rupees at the foreign exchange rates prevailing on the transaction date. Monetary assets and liabilities in
foreign currencies are expressed in rupee terms at the rates of exchange prevailing at the statement of financial position date. Forward foreign exchange 4.35 Acceptances
contracts and foreign bills purchased are valued in rupees at the forward foreign exchange rates applicable to their respective maturities.
Acceptances comprise undertakings by the Group to pay bill of exchange drawn on customers. Acceptances are recognised as financial liability in the
statement of financial position with a contractual right of reimbursement from the customer as a financial asset. Therefore, commitments in respect of
Non-monetary assets and liabilities in foreign currencies are expressed in rupee terms at the rates of exchange prevailing at the date of initial recognition of acceptances have been accounted for as financial assets and financial liabilities.
the non-monetary assets / liabilities.
Note 2024 2023
4.29.3 Overseas operations and subsidiaries ------- (Rupees in '000) -------
5. CASH AND BALANCES WITH TREASURY BANKS
The assets and liabilities of overseas operations and subsidiaries are translated to rupees at exchange rates prevailing at the statement of financial position
date. The results of overseas operations and subsidiaries are translated at the average rate of exchange for the year. In hand
Local currency 53,476,586 27,876,981
4.29.4 Translation gains and losses Foreign currencies 8,928,893 13,068,432
62,405,479 40,945,413
Translation gains and losses are taken to the profit and loss account, except those arising on translation of the net investment in overseas branches and With State Bank of Pakistan in
subsidiaries which are taken to capital reserves (Exchange Translation Reserve) until the disposal of the net investment, at which time these are recognised Local currency current accounts 5.1 108,175,484 88,035,634
in the profit and loss account. Foreign currency current accounts 5.2 5,094,782 5,306,080
Foreign currency deposit account 5.3 8,205,041 9,473,621
4.30 Contingencies and commitments 121,475,307 102,815,335
With other central banks in
Commitments for outstanding forward foreign exchange contracts are disclosed in these consolidated financial statements at contracted rates. Contingent Foreign currency current accounts 5.4 88,215,425 50,093,433
liabilities / commitments denominated in foreign currencies are expressed in rupee terms at the rates of exchange prevailing at the statement of financial Foreign currency deposit accounts 5.5 19,326,856 10,684,831
position date. 107,542,281 60,778,264
With National Bank of Pakistan in
4.31 Segment reporting Local currency current accounts 19,133,450 72,368,067

A segment is a distinguishable component of the Group that is engaged either in providing particular products or services (business segment), or in providing National Prize Bonds 479,356 448,681
products or services within a particular economic environment (geographical segment), and is subject to risks and rewards that are different from those of
other segments. 311,035,873 277,355,760

4.32 Business segments Less: Credit loss allowance held against cash and balances with treasury banks (199,497) -

Cash and balances with treasury banks - net of credit loss allowance 310,836,376 277,355,760
(a) Corporate / Commercial Banking
5.1 This represents current accounts maintained with the SBP under the Cash Reserve Requirement of section 22 of the Banking Companies Ordinance, 1962.
Includes project, trade and working capital finance, import and export, factoring, leasing, lending, deposits and guarantees. It also include services
provided in connection with mergers and acquisitions and the underwriting / arrangement of debt and equity instruments through syndications, Initial
Public Offerings and private placements. 5.2 These represent foreign currency current accounts maintained under the Cash Reserve Requirement of the SBP.
(b) Treasury 5.3 This represents account maintained with the SBP to comply with the Special Cash Reserve Requirement. The return on this account is declared by the SBP
on a monthly basis and as at December 31, 2024, it carries mark-up rate at 3.53% (2023: 4.34%) per annum.
Includes fixed income, equity, foreign exchange, credit, funding, own position securities, lendings and borrowings and derivatives for hedging and market
making. 5.4 These represent current accounts maintained with other central banks of the countries in which the Group operates, to meet the minimum cash reserves and
capital requirements pertaining to the overseas branches and subsidiaries of the Group.
(c) Branch Banking

Includes deposits, lendings and banking services to private individuals and small businesses including credit cards and branchless banking. 5.5 These represent placements with overseas central banks and carry mark-up at rates ranging from 4.60% to 5.00% (2023: 5.75% to 6.37%) per annum.

(d) Islamic Banking

5.6 Cash and balances with treasury banks are all classified as Stage 1.
This represents Islamic banking branches and Islamic banking windows in the conventional branches of the Bank.

(e) International Branch Operations

This represents Bank's operations in overseas locations including one branch each in export processing zones in Karachi and Sialkot.

204 United Bank Limited Annual Report 2024 205

Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
For the
NOTES TO year PART
AND FORMING ended December
OF THE CONSOLIDATED
FOR THE YEAR ENDED DECEMBER 31, 2024
31,STATEMENTS
FINANCIAL 2024 For the
NOTES year
TO AND ended
FORMING December
PART OF THE CONSOLIDATED31, 2024
FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024

8. INVESTMENTS 2024 2023

Note 2024 2023 Cost / Provision
------- (Rupees in '000) ------- Credit loss Surplus / Cost / Carrying
8.1 Investments by type Note Amortised
allowance (Deficit)
Carrying Value
Amortised cost
for Surplus / (Deficit)
Value
6. BALANCES WITH OTHER BANKS cost diminution
-------------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------
In Pakistan
In current accounts - 1,659 Debt Instruments
In deposit accounts 7 7
7 1,666 FVTPL
Outside Pakistan
Federal Government securities
In current accounts 47,801,939 26,393,747 22,066,195 - 35,068 22,101,263 - - - -
In deposit accounts 6.1 12,173,491 7,034,958 22,066,195 - 35,068 22,101,263 - - - -
59,975,430 33,428,705
Held for trading securities
59,975,437 33,430,371
Federal Government securities
- - - - 79,035,823 - (79,074) 78,956,749
Less: Credit loss allowance held against balances with other banks 6.2 (7,191) -
- - - - 79,035,823 - (79,074) 78,956,749

Balances with Other Banks - net of credit loss allowance 59,968,246 33,430,371
FVOCI

6.1 These carry mark-up at rates ranging from 4.19% to 4.70% (2023: 4.50% to 5.70%) per annum. Federal Government securities
5,330,704,079 (1,556,324) 75,876,139 5,405,023,894 - - - -
Non-Government debt securities
6.2 Balances with other banks are classified as stage 1. 462,335 (162,407) - 299,928 - - - -
Foreign securities
112,833,367 (15,298) (2,841,124) 109,976,945 - - - -
7. LENDINGS TO FINANCIAL INSTITUTIONS 2024 2023 5,443,999,781 (1,734,029) 73,035,015 5,515,300,767 - - - -
------- (Rupees in '000) -------
Available for sale securities
Musharakah lending 7.2 - 12,500,000
Repurchase agreement lendings (reverse repo) 7.3 & 7.5 2,492,483 21,947,852 Federal Government securities
- - - - 3,811,624,681 (12,421,631) 5,026,047 3,804,229,097
Call / clean money lending - 4,868,418 Non-Government debt securities
- - - - 3,964,758 (162,334) (674,087) 3,128,337
Bai Muajjal receivable with Scheduled bank / financial institution 7.4 16,000,000 -
Foreign securities
18,492,483 39,316,270 - - - - 172,534,321 (23,993) (3,010,385) 169,499,943
- - - - 3,988,123,760 (12,607,958) 1,341,575 3,976,857,377
Less: Credit loss allowance held against lending to financial institutions - -
Amortised cost
Lending to financial institutions - net of credit loss allowance 18,492,483 39,316,270
Federal Government Securities
277,953,188 - - 277,953,188 - - - -
7.1 Particulars of lendings to financial institutions 2024 2023 Non Government debt securities
20,604,187 (1,264,743) - 19,339,444 - - - -
------- (Rupees in '000) ------- Foreign securities
25,321,895 (15,335) - 25,306,560 - - - -

In local currency 18,492,483 34,447,852 323,879,270 (1,280,078) - 322,599,192 - - - -

In foreign currencies - 4,868,418
18,492,483 39,316,270 Held to maturity securities

Federal Government Securities

7.2 These represent unsecured lendings carrying mark-up ranging from Nil (2023: 22.05% to 22.50%) per annum. - - - - 308,215,895 (4,406,225) - 303,809,670
Non Government debt securities
- - - - 22,764,643 (1,293,634) - 21,471,009
7.3 These represent lendings to financial institutions against investment securities. These carry mark-up ranging from 13.89% (2023: 22.05% to 22.95%) per Foreign securities
- - - - 38,098,926 (541,128) - 37,557,798
annum, and are due to mature in January 2025.
- - - - 369,079,464 (6,240,987) - 362,838,477
7.4 These represent secured lendings against investment securities carrying mark-up at 13.90% (2023: Nil) per annum.
Instruments mandatorily classified as FVTPL
7.5 Securities held as collateral against lendings to financial institutions
Non-Government debt securities
1,864,933 - - 1,864,933 - - - -
2024 2023
Held by Further given Further given as Total Debt Investment
Total Held by Group Total 5,791,810,179 (3,014,107) 73,070,083 5,861,866,155 4,436,239,047 (18,848,945) 1,262,501 4,418,652,603
Group as collateral collateral
----------------------------------------------------- (Rupees in '000) --------------------------------------------
Equity instruments

Market Treasury Bills 2,492,483 - 2,492,483 - - - FVOCI

Pakistan Investment Bonds - - - 21,947,852 - 21,947,852 Ordinary shares
Government of Pakistan Sukuks 16,000,000 - 16,000,000 - - -
Total 18,492,483 - 18,492,483 21,947,852 - 21,947,852 - Listed companies
12,989,295 - 7,463,396 20,452,691 - - - -
- Unlisted companies
1,656,572 - (50,317) 1,606,255 - - - -
7.6 Lendings to financial institutions are all classified as stage 1.
14,645,867 - 7,413,079 22,058,946 - - - -

Real Estate Investment Trust units

495,545 456,325 951,870 - - - -

Available for sale securities

Ordinary shares
-
- Listed companies
- - - - 13,243,966 (6,048,102) 3,570,071 10,765,935
- Unlisted companies
- - - - 779,288 (59,019) - 720,269

- - - - 14,023,254 (6,107,121) 3,570,071 11,486,204

206 United Bank Limited Annual Report 2024 207

Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
For the year ended December 31, 2024
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2024
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 FOR THE YEAR ENDED DECEMBER 31, 2024

8.1 Investments by type - continued 2024 2023 8.2 Investments by segment - continued 2024 2023

Cost / Provision Cost / Provision

Credit loss Surplus / Carrying Cost / Carrying Credit loss Surplus / Cost / Surplus / Carrying
Amortised for Surplus / (Deficit) Note Amortised Carrying Value for
allowance (Deficit) Value Amortised cost Value allowance (Deficit) Amortised cost (Deficit) Value
cost diminution cost diminution

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

Real Estate Investment Trust units - - - - 507,834 - 108,398 616,232 Real Estate Investment Trust units 8.6.2 495,545 - 456,325 951,870 507,834 - 108,398 616,232

Associates
Non Government Debt Securities
Listed companies 2,247,813 (315) - 2,247,498 2,310,437 - - 2,310,437
- UBL Liquidity Plus Fund 97,012 - - 97,012 591,213 - - 591,213
Unlisted companies 20,683,642 (1,426,835) - 19,256,807 24,418,964 (1,455,968) (674,087) 22,288,909
- UBL Stock Advantage Fund 237,216 - - 237,216 - - - -
22,931,455 (1,427,150) - 21,504,305 26,729,401 (1,455,968) (674,087) 24,599,346
- UBL Special Savings Plan XI - - - - 1,533,503 - - 1,533,503
Foreign Securities
- UBL Exchange Traded Fund 46,280 - - 46,280 28,122 - - 28,122 Market Treasury Bills 22,934,112 - 20,253 22,954,365 83,605,493 - 55,839 83,661,332
- UBL Dedicated Equity Fund - - - - 83,864 - - 83,864 Foreign bonds - sovereign 112,397,524 (29,686) (2,744,533) 109,623,305 115,022,936 (564,103) (2,886,631) 111,572,202
- Al Ameen Islamic Energy Fund 121,967 - - 121,967 132,535 - - 132,535 Foreign bonds - others 2,823,021 (947) (116,844) 2,705,230 12,004,206 (1,018) (179,593) 11,823,595
- Al Ameen Islamic Dedicated Equity Fund - - - - 65,766 - - 65,766
CDC SAARC Fund 605 - - 605 612 - - 612
- Al Ameen Islamic Fixed Return Plan - - - - 14,313 - - 14,313 138,155,262 (30,633) (2,841,124) 135,283,505 210,633,247 (565,121) (3,010,385) 207,057,741
- Al Ameen Islamic Income Fund - - - - 38,567 - - 38,567
- Al-Ameen Islamic Cash Plan I 175,273 - - 175,273 1,583,806 - - 1,583,806 Associates
- UBL Liquidity Plus Fund 97,012 - - 97,012 591,213 - - 591,213
- UBKPK - Money Market Sub Fund 36,372 - - 36,372 30,385 - - 30,385
- UBL Stock Advantage Fund 237,216 - - 237,216 - - - -
- UBKPK - Debt Sub-Fund 589 - - 589 - - - - - UBL Special Savings Plan XI - - - - 1,533,503 - - 1,533,503
- UBKPK - Equity Sub-Fund 589 - - 589 - - - - - UBL Exchange Traded Fund 46,280 - - 46,280 28,122 - - 28,122
- UBL Dedicated Equity Fund - - - - 83,864 - - 83,864
- UBKPK-Equity Index Sub Fund 589 - - 589 - - - -
- UBKPK - Money Market Sub Fund 36,372 - - 36,372 30,385 - - 30,385
- AIKPK - Money Market Sub Fund 35,331 - - 35,331 30,392 - - 30,392 - UBKPK - Debt Sub-Fund 589 589 - - - -
- AIKPK - Debt Sub-Fund 573 - - 573 - - - - - UBKPK - Equity Sub-Fund 8.5.1.1 589 589 - - - -
- AIKPK - Equity Sub-Fund 573 - - 573 - - - - - UBKPK-Equity Index Sub Fund 589 589 - - - -
- UBL Money Market Fund 2,899,023 - - 2,899,023 - - - -
- AIKPK-Equity Index Sub Fund 573 - - 573 - - - -
- UBL Government Securities Fund 335,158 - - 335,158 - - - -
- UBL Money Market Fund 2,899,023 - - 2,899,023 - - - - - UBL Fixed Return Plan - II B - - - - 54,869 - - 54,869
- UBL Fixed Return Plan - II B - - - - 54,869 - - 54,869 - UBL Fixed Return Plan - II D - - - - 56,640 - - 56,640
- UBL Fixed Return Plan - II E - - - - 40,673 - - 40,673
- UBL Fixed Return Plan - II D - - - - 56,640 - - 56,640
- UBL Fixed Return Plan - II F 40,909 - - 40,909 - - - -
- UBL Fixed Return Plan - II E - - - - 40,673 - - 40,673 - Al-Ameen Shariah Stock Fund - - - - 25,319 - - 25,319
- UBL Fixed Return Plan - II F 40,909 - - 40,909 - - - - - Al Ameen Islamic Energy Fund 121,967 - - 121,967 132,535 - - 132,535
- Al-Ameen Shariah Stock Fund - - - - 25,319 - - 25,319 - Al Ameen Islamic Dedicated Equity Fund - - - - 65,766 - - 65,766
- Al Ameen Islamic Fixed Return Plan - - - - 14,313 - - 14,313
- UBL Government Securities Fund 335,158 - - 335,158 - - - -
- Al Ameen Islamic Income Fund - - - - 38,567 - - 38,567
- UBL Insurers Limited 860,843 - - 860,843 685,864 - - 685,864 8.5.1.2
- Al-Ameen Islamic Cash Plan I 175,273 - - 175,273 1,583,806 - - 1,583,806
- Khushhali Bank Limited 1,057,485 (1,057,485) - - 1,033,786 (1,033,786) - - - AIKPK - Money Market Sub Fund 35,331 - - 35,331 30,392 - - 30,392
- AIKPK - Debt Sub-Fund 573 573 - - - -
5,946,355 (1,057,485) - 4,888,870 6,029,617 (1,033,786) - 4,995,831
- AIKPK - Equity Sub-Fund 573 573 - - - -
5,812,897,946 (4,071,592) 80,939,487 5,889,765,841 4,456,799,752 (25,989,852) 4,940,970 4,435,750,870 - AIKPK-Equity Index Sub Fund 573 573 - - - -
- UBL Insurers Limited 8.5.1.3 860,843 - - 860,843 685,864 - - 685,864
8.2 Investments by segment 2024 2023
- Khushhali Bank Limited 8.12 1,057,485 (1,057,485) - - 1,033,786 (1,033,786) - -
Cost / Provision 5,946,355 (1,057,485) - 4,888,870 6,029,617 (1,033,786) - 4,995,831
Credit loss Surplus / Carrying Cost / Surplus / Carrying
Note Amortised for
allowance (Deficit) Value Amortised cost (Deficit) Value
cost diminution
Total Investments 5,812,897,946 (4,071,592) 80,939,487 5,889,765,841 4,456,799,752 (25,989,852) 4,940,970 4,435,750,870
-------------------------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------------------
Federal Government Securities
8.2.1 Investments given as collateral 2024 2023
Market Treasury Bills 399,958,123 - 9,702,416 409,660,539 1,777,572,181 - 4,084,134 1,781,656,315 ------- (Rupees in '000) -------
Pakistan Investment Bonds 8.9 & 8.10 4,897,205,786 - 44,076,922 4,941,282,708 1,904,352,770 - (5,576,146) 1,898,776,624 Federal Government securities
Government of Pakistan Sukuk 278,001,570 - 21,400,329 299,401,899 448,138,446 (410,122) 7,532,654 455,260,978 Market Treasury Bills 285,281,664 1,739,647,706
Pakistan Investment Bonds 4,331,366,718 962,704,865
Government of Pakistan Eurobonds 5,261,130 (1,556,324) 731,540 4,436,346 63,103,986 (16,417,734) (1,093,669) 45,592,583
Bai Muajjal with Government of Pakistan 47,618,148 - - 47,618,148 - - - - Foreign securities
Foreign bonds - sovereign 29,926,938 -
Islamic Naya Pakistan Certificates 8.4 2,678,705 - - 2,678,705 5,709,016 - - 5,709,016
5,630,723,462 (1,556,324) 75,911,207 5,705,078,345 4,198,876,399 (16,827,856) 4,946,973 4,186,995,516 Associates
Ordinary shares Units of UBL Liquidity Plus Fund - 589,320
Units of UBL Special Savings Plan XI - 1,299,847
Listed companies 12,989,295 - 7,463,396 20,452,691 13,243,966 (6,048,102) 3,570,071 10,765,935
8.6.2 4,646,575,320 2,704,241,738
Unlisted companies 1,656,572 - (50,317) 1,606,255 779,288 (59,019) - 720,269
14,645,867 - 7,413,079 22,058,946 14,023,254 (6,107,121) 3,570,071 11,486,204 8.2.1.1 The market value of securities given as collateral is Rs. 4,691,781 million (2023: Rs. 2,717,969 million).

208 United Bank Limited Annual Report 2024 209

Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND
For the FORMING
year PART December
ended OF THE CONSOLIDATED FINANCIAL STATEMENTS
31, 2024 For the
NOTES year
TO AND ended
FORMING PART December 31, 2024
OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 FOR THE YEAR ENDED DECEMBER 31, 2024

8.3 Particulars of credit loss allowance against debt securities 8.3.4 Category of classification
2024 2024
Stage 1 Stage 2 Stage 3 Total Outstanding Credit loss
------------------------- (Rupees in '000) ------------------------- amount allowance held
8.3.1 Investments - exposure ------------ (Rupees in '000) ---------

Opening balance 4,367,573,982 65,683,577 641,383 4,433,898,942 Domestic

Exchange adjustments (2,826,212) (780,589) - (3,606,801)
Performing Stage 1 5,645,069,663 589
New investments 4,423,736,857 - - 4,423,736,857 Underperforming Stage 2 - -
Investments derecognised or repaid (2,961,564,504) (56,815,437) (23,100) (3,018,403,041) Non-Performing
Transfer to stage 1 - - - - Substandard - -
Transfer to stage 2 - - - -
Doubtful Stage 3 - -
Transfer to stage 3 - - - -
1,462,172,353 (56,815,437) (23,100) 1,405,333,816 Loss 618,283 618,283
5,645,687,946 618,872
Disposal of subsidiary (43,815,778) - - (43,815,778)
Closing balance 5,783,104,345 8,087,551 618,283 5,791,810,179
Overseas
Performing Stage 1 138,034,682 30,630
Underperforming Stage 2 8,087,551 2,364,605
2024
Non-Performing
Stage 1 Stage 2 Stage 3 Total
------------------------- (Rupees in '000) ------------------------- Substandard - -
8.3.2 Investments - credit loss allowance Doubtful Stage 3 - -
Loss - -
Gross carrying amount 47,697 18,159,865 617,684 18,825,246
146,122,233 2,395,235
Impact of ECL recognised on adoption of IFRS 9 7,501 - - 7,501
Exchange adjustments (628) (94,014) - (94,642) 5,791,810,179 3,014,107

New investments - net - - - - Category of classification 2023

Investments repaid (7,047) (221,180) (23,100) (251,327) Non Performing
Transfer to stage 1 - - - - Provision
Investment
Transfer to stage 2 - - - - ------------ (Rupees in '000) ---------
Transfer to stage 3 - - - - Domestic
(7,047) (221,180) (23,100) (251,327) Loss 641,383 641,383

Investments derecognised (15,474,456) - (15,474,456) Total 641,383 641,383

Changes in risk parameters (16,304) (5,610) 23,699 1,785
Closing balance 31,219 2,364,605 618,283 3,014,107
8.4 This represents investment made for the establishment of the modaraba pools in Islamic Naya Pakistan Certificate Company
Limited in accordance with S.R.O 964 (I) / 2020 dated October 05, 2020.
8.3.3 Credit loss allowance / provision for diminution in value of investments 2024 2023
Note --------- (Rupees in '000) ----------

Opening balance 25,989,852 28,604,522

Exchange adjustments (94,642) 3,388,726
Impact of reclassification on adoption of IFRS 9 (6,107,121) -
Impact of ECL recognised on adoption of IFRS 9 7,501 -
Charge / (reversals)
Charge for the year 131,869 7,376,097
Reversals for the year (381,411) (1,266,052)
35 (249,542) 6,110,045
Derecognition of ECL on disposals (15,474,456) (12,113,441)
Closing balance 4,071,592 25,989,852

210 United Bank Limited Annual Report 2024 211

Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
For
NOTESthe year
TO AND ended
FORMING December
PART OF 31, FINANCIAL
THE CONSOLIDATED 2024 STATEMENTS For the
FOR THE year
YEAR ended
ENDED DECEMBERDecember
31, 2024 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024
2023
8.5 Investment in associates Note
Investment / Share of
Investment at the Share of Investment at
8.5.1 Movement of Investment in associates Country of Percentage (Redemption) Dividend unrealised
beginning of the profit / the end of the
incorporation Holding during the received surplus on
year (loss) year
2024 year assets
Note Share of ------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------
Investment /
Investment at the Share of unrealised Investment at
Country of Percentage (Redemption) Dividend
beginning of the profit / (loss) / the end of the
incorporation Holding during the received UBL Liquidity Plus Fund 8.5.1.1 Pakistan 1.93% 3,136,843 (2,553,492) 178,738 (170,876) - 591,213
year (loss) surplus on year
year UBL Financial Sector Fund 8.5.1.1 Pakistan 0.00% 302,178 (399,353) 102,177 (5,002) - -
assets
------------------------------------------------------------- (Rupees in '000) ------------------------------------------------------------- UBL Special Savings Plan VIII 8.5.1.1 Pakistan 0.00% 103,212 (93,933) 3,069 (12,348) - -
UBL Special Savings Plan X 8.5.1.1 Pakistan 0.00% - (75) 372 (297) - -
UBL Liquidity Plus Fund 8.5.1.1 Pakistan 0.34% 591,213 (576,794) 159,166 (76,574) - 97,011 UBL Special Savings Plan XI 8.5.1.1 Pakistan 100.00% - 1,439,000 94,800 (297) - 1,533,503
UBL Financial Sector Fund 8.5.1.1 Pakistan 0.00% - (1,382) 1,382 - - - UBL Pakistan Enterprise Exchange Traded Fund 8.5.1.1 Pakistan 76.09% 20,310 - 15,521 (2,748) (4,961) 28,122
UBL Special Savings Plan XI 8.5.1.1 Pakistan 0.00% 1,533,503 (1,333,205) (46,490) (153,808) - - UBL Cash Fund 8.5.1.1 Pakistan 0.00% - (3,971) 7,497 (3,526) - -
UBL Pakistan Enterprise Exchange Traded Fund 8.5.1.1 Pakistan 67.46% 28,122 - 11,517 (3,337) 9,978 46,280 UBKPK - Money Market Sub Fund 8.5.1.1 Pakistan 96.51% - 30,000 385 - - 30,385
UBKPK - Money Market Sub Fund 8.5.1.1 Pakistan 67.20% 30,385 - 5,987 - - 36,372 UBL Dedicated Equity Fund 8.5.1.1 Pakistan 99.60% 94,262 (69,460) 60,060 (998) - 83,864
UBKPK - Debt Sub-Fund 8.5.1.1 Pakistan 100.00% - 500 89 - - 589 UBL Fixed Return Plan I B 8.5.1.1 Pakistan 0.00% 1,040 (990) (30) (20) - -
UBKPK - Equity Sub-Fund 8.5.1.1 Pakistan 100.00% - 500 89 - - 589 UBL Fixed Return Plan I C 8.5.1.1 Pakistan 0.00% - (3,037) 3,265 (228) - -
UBKPK-Equity Index Sub Fund 8.5.1.1 Pakistan 100.00% - 500 89 - - 589 UBL Fixed Return Plan I D 8.5.1.1 Pakistan 0.00% 10,047 (9,953) 734 (828) - -
UBL Dedicated Equity Fund 8.5.1.1 Pakistan 0.00% 83,864 (44,626) (32,976) (6,262) - - UBL Fixed Return Plan I F 8.5.1.1 Pakistan 0.00% - - 744 (744) - -
UBL Fixed Return Plan - II B 8.5.1.1 Pakistan 0.00% 54,869 (49,003) (5,239) (627) - - UBL Fixed Return Plan I G 8.5.1.1 Pakistan 0.00% - (996) 996 - - -
UBL Fixed Return Plan - II D 8.5.1.1 Pakistan 0.00% 56,640 (49,779) 2,182 (9,043) - - UBL Fixed Return Plan I K 8.5.1.1 Pakistan 0.00% - - 420 (420) - -
UBL Fixed Return Plan - II E 8.5.1.1 Pakistan 0.00% 40,673 (40,817) 144 - - - UBL Fixed Return Plan - II A 8.5.1.1 Pakistan 0.00% - (91) 7,645 (7,554) - -
UBL Fixed Return Plan - II J 8.5.1.1 Pakistan 0.00% - - 1,137 (1,137) - - UBL Fixed Return Plan - II B 8.5.1.1 Pakistan 28.84% - 49,171 11,227 (5,529) - 54,869
UBL Fixed Return Plan - II K 8.5.1.1 Pakistan 0.00% - - 3,300 (3,300) - - UBL Fixed Return Plan - II D 8.5.1.1 Pakistan 59.96% - 49,779 8,336 (1,475) - 56,640
UBL Fixed Return Plan - II L 8.5.1.1 Pakistan 0.00% - - 66,075 (66,075) - - UBL Fixed Return Plan - II E 8.5.1.1 Pakistan 59.96% - 39,682 3,113 (2,122) - 40,673
UBL Fixed Return Plan - II O 8.5.1.1 Pakistan 0.00% - - (24) 24 - - UBL Fixed Return Plan - II H 8.5.1.1 Pakistan 0.00% - (3,241) 3,241 - - -
UBL Fixed Return Plan - II S 8.5.1.1 Pakistan 0.00% - (101,949) 101,949 - - - UBL Fixed Return Plan - III C 8.5.1.1 Pakistan 0.00% - - 17,122 (17,122) - -
UBL Fixed Return Plan - II N 8.5.1.1 Pakistan 0.00% - (514) 514 - - - UBL Fixed Return Plan - III D 8.5.1.1 Pakistan 0.00% - (502) 3,813 (3,311) - -
UBL Fixed Return Plan - III N 8.5.1.1 Pakistan 0.00% - - 423 (423) - - UBL Fixed Return Plan - III F 8.5.1.1 Pakistan 0.00% - - 347 (347) - -
UBL Fixed Return Plan - III O 8.5.1.1 Pakistan 0.00% - - 452 (452) - - UBL Fixed Return Plan - III I 8.5.1.1 Pakistan 0.00% - (1) 1,101 (1,100) - -
UBL Government Securities Fund 8.5.1.1 Pakistan 0.00% 514 (492) 35 (57) - -
UBL Fixed Return Plan - IV B 8.5.1.1 Pakistan 0.00% - (2,435) 3,811 (1,376) - -
UBL Money Market Fund 8.5.1.1 Pakistan 0.00% - (86) 230 (144) - -
UBL Fixed Return Plan - IV F 8.5.1.1 Pakistan 20.88% - (150,288) 191,197 - 40,909
AIKPK - Money Market Sub Fund 8.5.1.2 Pakistan 95.41% - 30,000 392 - - 30,392
UBL Government Securities Fund 8.5.1.1 Pakistan 3.29% - 310,000 25,158 - - 335,158
Al Ameen Islamic Energy Fund 8.5.1.2 Pakistan 15.62% 157,746 (110,665) 85,454 - - 132,535
UBLStock Advantage Fund 8.5.1.1 Pakistan 1.44% - 130,311 106,978 (74) - 237,215
Al Ameen Islamic Dedicated Equity Fund 8.5.1.2 Pakistan 100.00% 52,163 (13,804) 27,407 - - 65,766
UBL Money Market Fund 8.5.1.1 Pakistan 4.03% - 2,895,554 3,469 - - 2,899,023
Al-Ameen Shariah Stock Fund 8.5.1.2 Pakistan 0.31% - 24,286 1,033 - - 25,319
AIKPK - Money Market Sub Fund 8.5.1.2 Pakistan 49.31% 30,392 - 4,939 - - 35,331
Al Ameen Islamic Fixed Return Plan - I A 8.5.1.2 Pakistan 0.00% - - 2,355 (2,355) - -
AIKPK - Debt Sub-Fund 8.5.1.2 Pakistan 100.00% - 500 73 - - 573
Al Ameen Islamic Fixed Return Plan - I F 8.5.1.2 Pakistan 3.02% 10,314 4,987 (988) - 14,313
AIKPK - Equity Sub-Fund 8.5.1.2 Pakistan 100.00% - 500 73 - - 573
Al Ameen Islamic Income Fund 8.5.1.2 Pakistan 13.05% - 34,972 3,779 (184) - 38,567
AIKPK-Equity Index Sub Fund 8.5.1.2 Pakistan 100.00% - 500 73 - - 573
Al-Ameen Islamic Cash Plan I 8.5.1.2 Pakistan 6.25% 35,167 1,541,407 26,635 (19,403) - 1,583,806
Al Ameen Islamic Energy Fund 8.5.1.2 Pakistan 2.76% 132,535 (49,488) 39,284 (364) - 121,967
UBL Insurers Limited 8.5.1.3 Pakistan 30.00% 585,248 - 107,331 (10,020) 3,305 685,864
Al Ameen Islamic Dedicated Equity Fund 8.5.1.2 Pakistan 0.00% 65,766 (48,749) (17,017) - - -
Khushhali Microfinance Bank Limited 8.12 Pakistan 27.82% 2,573,278 225,000 (1,773,867) - 9,375 1,033,786
Al-Ameen Shariah Stock Fund 8.5.1.2 Pakistan 0.00% 25,319 (25,784) 465 - - -
7,072,008 209,469 (989,536) (270,043) 7,719 6,029,617
Al Ameen Islamic Fixed Return Plan - I F 8.5.1.2 Pakistan 0.00% 14,313 (13,873) (440) - - -
Al Ameen Islamic Income Fund 8.5.1.2 Pakistan 0.00% 38,567 (37,776) (791) - - -
8.5.1.1 These represent open ended mutual funds managed by UBL Fund Managers Limited. These funds are listed on the Pakistan Stock Exchange and offer units for
Al-Ameen Islamic Cash Plan I 8.5.1.2 Pakistan 0.93% 1,583,806 (1,417,122) 33,937 (25,346) - 175,275
public subscription on a continuous basis.
Al-Ameen Islamic Cash Fund 8.5.1.2 Pakistan 0.00% - (530) 530 - - -
Al-Ameen Islamic Sovereign Fund 8.5.1.2 Pakistan 0.00% - (45) 45 - - -
8.5.1.2 These represent open ended shariah compliant mutual funds managed by Al Ameen Financial Services (Private) Limited, a wholly owned subsidiary of UBL
UBL Insurers Limited 8.5.1.3 Pakistan 30.00% 685,864 - 209,934 (54,613) 19,658 860,843
Fund Managers Limited. These funds are listed on the Pakistan Stock Exchange and offer units for public subscription on a continuous basis.
Khushhali Microfinance Bank Limited 8.12 Pakistan 27.82% 1,033,786 - 23,699 - - 1,057,485
6,029,617 (605,294) 895,183 (402,787) 29,636 5,946,355
8.5.1.3 UBL Insurers Limited is an unlisted public company, whose principal objective is to conduct general insurance business.

212 United Bank Limited Annual Report 2024 213

27
 Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024 For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

2024 2023 8.6 Quality of Securities

------- (Rupees in '000) -------
Details regarding quality of securities held under "Held to Collect and Sell" model are as follows
Net Assets 2,869,478 2,286,216
2024 2023
Percentage holding 30.00% 30.00% Cost
8.6.1 Federal Government Securities - Government guaranteed --------- (Rupees in '000) ----------
Group's share of net assets 860,843 685,864
Carrying amount of interest in associates 860,843 685,864
Market Treasury Bills 395,024,093 1,759,608,269
Pakistan Investment Bonds 4,661,754,267 1,564,416,221
8.5.2 Summary of financial position and performance of associates
Government of Pakistan Sukuks 265,985,884 435,136,727
2024 Islamic Naya Pakistan Certificates 2,678,705 5,709,016
Country of Percentage Profit / Government of Pakistan Eurobonds 5,261,130 46,754,448
Assets Liabilities Revenue
Incorporation Holding (loss) 5,330,704,079 3,811,624,681
--------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------
8.6.2 Shares and units
UBL Liquidity Plus Fund Pakistan 0.34% 28,938,747 162,764 5,947,830 5,492,907
UBL Money Market Fund Pakistan 4.03% 72,109,093 146,521 3,889,986 3,588,253 Listed Companies
UBL Stock Advantage Fund Pakistan 1.44% 16,708,950 247,160 6,833,089 6,453,386
Cement 1,158,240 1,158,240
UBL Exchange Traded Fund Pakistan 67.46% 70,523 1,916 6,747 5,816
UBKPK - Money Market Sub Fund Pakistan 67.20% 54,510 387 8,391 7,926 Chemical - 559,228
UBKPK - Debt Sub-Fund Pakistan 100.00% 594 5 188 178 Commercial Banks 139,865 518,765
UBKPK - Equity Sub-Fund Pakistan 100.00% 594 5 188 178
Engineering 311,831 311,831
UBKPK-Equity Index Sub Fund Pakistan 100.00% 594 5 188 178
AIKPK - Money Market Sub Fund Pakistan 49.31% 73,682 2,037 8,240 7,736 Fertilizer 3,915,270 4,305,054
AIKPK - Debt Sub-Fund Pakistan 100.00% 578 5 156 146 Oil and Gas Exploration Companies 1,940,334 2,007,252
AIKPK - Equity Sub-Fund Pakistan 100.00% 578 5 156 146 Oil and Gas Marketing Companies 569,150 569,150
AIKPK-Equity Index Sub Fund Pakistan 100.00% 578 5 156 146
UBL Fixed Return Plan - IV F Pakistan 20.88% 202,897 6,973 12,160 4,604 Power Generation and Distribution 2,382,851 2,382,851
UBL Government Securities Fund Pakistan 3.29% 10,323,536 147,714 1,693,349 1,554,876 Technology & Communication 74,930 75,820
Al Ameen Islamic Energy Fund Pakistan 2.76% 4,572,377 151,889 1,533,462 1,467,469 Textile Composite 1,953,897 812,848
Al-Ameen Islamic Cash Plan I Pakistan 0.93% 18,784,707 38,271 3,801,563 3,589,564
12,613,753 9,744,275 2,187,466 684,320
Textile Spinning 395,927 395,927
UBL Insurers Limited Pakistan 30.00%
Khushhali Microfinance Bank Limited Pakistan 27.82% 107,756,868 126,143,242 26,070,619 (8,908,093)
Miscellaneous 147,000 147,000
12,989,295 13,243,966
2023
2024 2023
Country of Percentage Profit /
Assets Liabilities Revenue Cost Breakup value Cost Breakup value
Incorporation Holding (loss)
---------------------------- (Rupees in '000) ------------------------
--------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------
Unlisted Companies
UBL Liquidity Plus Fund Pakistan 1.93% 33,608,602 2,993,803 6,078,949 5,668,256 Cinepax Limited 60,122 116,237 60,122 105,437
UBL Special Savings Plan XI Pakistan 100.00% 1,537,493 3,987 102,860 94,503 First Women Bank Limited 21,100 51,903 21,100 71,151
UBL Exchange Traded Fund Pakistan 76.09% 38,000 1,039 4,850 4,206
National Institutional Facilitation
UBKPK - Money Market Sub Fund Pakistan 96.51% 31,499 17 415 399
AIKPK - Money Market Sub Fund Pakistan 95.41% 31,870 17 427 410 Technologies (Pvt.) Limited 1,527 62,042 1,527 52,914
UBL Dedicated Equity Fund Pakistan 99.60% 87,081 2,882 57,524 53,365 National Investment Trust Limited 100 1,082,220 100 700,276
UBL Fixed Return Plan - II B Pakistan 28.84% 194,054 3,808 37,590 35,027 Pakistan Agricultural Storage & Services Corporation 5,500 3,584,912 5,500 3,551,928
UBL Fixed Return Plan - II D Pakistan 59.96% 94,907 442 12,728 11,672
UBL Fixed Return Plan - II E Pakistan 59.96% 600,771 532,937 238,322 222,212 Pakistan Mortgage Refinance Company Limited 500,000 1,356,807 500,000 1,105,433
Al Ameen Islamic Energy Fund Pakistan 15.62% 964,600 116,326 316,011 285,583 Pakistan Corporate Restructuring Company Limited 63,633 40,339 63,633 38,304
Al Ameen Islamic Dedicated Equity Fund Pakistan 100.00% 80,806 15,040 28,370 23,582 SWIFT (Belgium) 2,091 33,424 2,091 33,186
Al-Ameen Shariah Stock Fund Pakistan 0.31% 9,068,988 873,589 2,931,914 2,639,129
SME Bank Limited 26,950 - 26,950 -
Al Ameen Islamic Fixed Return Plan - I F Pakistan 3.02% 474,992 1,100 56,496 53,153
Al Ameen Islamic Income Fund Pakistan 13.05% 297,686 2,119 17,201 15,838 Techlogix International Limited 29,314 193,098 37,406 30,787
Al-Ameen Islamic Cash Plan I Pakistan 6.25% 25,429,363 99,278 3,992,469 3,783,620 The Benefit Company BSC 5,908 183,496 5,982 175,500
UBL Insurers Limited Pakistan 30.00% 10,658,604 8,372,388 1,993,150 453,995
VIS Credit Information Services 325 253 325 204
Khushhali Microfinance Bank Limited Pakistan 27.82% 115,121,536 111,405,418 6,358,050 (5,957,226)
1 Link (Private) Limited 54,287 1,182,173 54,287 733,213
United National Bank Limited 885,450 1,428,747 - -
Mutual Funds Association of Pakistan (MUFAP) 265 265 265 265
1,656,572 9,315,916 779,288 6,598,598

28

214 United Bank Limited Annual Report 2024 215

29
Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 FOR THE YEAR ENDED DECEMBER 31, 2024
For the year ended December 31, 2024 For the year ended December 31, 2024

2024 2023 8.7 Particulars relating to securities classified Under "Held to Collect" model are as follows:
Cost
Units ------- (Rupees in '000) ------- 8.7.1 Federal Government Securities - Government guaranteed
2024 2023
Real Estate Investment Trust units 495,545 507,834
Cost
8.6.3 Non-Government Debt Securities ---------- (Rupees in '000) ----------

Listed Pakistan Investment Bonds 220,333,931 278,864,638

- AA+,AA, AA- - 300,000 Government of Pakistan Sukuks 10,001,109 13,001,719
- A+, A, A- 300,000 1,094,987 Government of Pakistan Eurobonds - 16,349,538
300,000 1,394,987 Bai Muajjal 47,618,148 -
Unlisted 277,953,188 308,215,895
- AA+,AA, AA- - 720,000
- A+, A, A- - 135,714 8.7.2 Non-Government Debt Securities
- CCC+ - 1,551,722
- Unrated 162,335 162,335 Listed
162,335 2,569,771 - AA+,AA, AA- 174,755 174,825
- A+ 678,125 740,625
8.6.4 Foreign Securities 2024 2023
852,880 915,450
Cost Rating Cost Rating
Government Securities ----------------------------- (Rupees in '000) ------------------------- Unlisted
- AAA 10,689,565 12,740,248
- Supranational entities (Banks) - - 7,780,880 AAA - AA+,AA, AA- 249,350 249,450
- United States of America 13,012,359 AA+ 13,664,341 AA+ - A+, A 650,000 641,379
- Qatar 10,137,061 AA 8,991,022 AA- - BB-, B- 360,000 360,000
- United Arab Emirates 69,818,075 AA- 95,165,211 AA- - CCC+ 2,706,445 2,739,066
- United Kingdom - - 26,495,499 AA- - Unrated 5,095,947 5,119,050
- Bahrain 4,658,424 B+ 4,788,810 B+ 19,751,307 21,849,193
- Jordan 2,991,497 BB- 3,051,057 BB-
- South Africa 2,056,991 BB- 2,087,983 BB- 8.7.3 Foreign Securities 2024 2023
- Egypt - - 135 B- Cost Rating Cost Rating
- Saudi Arabia 8,803,303 A+ - - Government Securities ----------------------- (Rupees in '000) -------------------
111,477,710 162,024,938
- Qatar 15,553,091 AA 23,575,387 AA-
2024 2023 - Portugal - - 1,242,266 A-
Non-Government Debt Securities Cost - Jordan 3,076,474 BB- 3,138,053 BB-
---------- (Rupees in '000) ----------
- Bahrain 2,009,244 B+ 2,044,183 B+
Listed
- Egypt - - 3,343,746 B-
- AA+, AA, AA- - 1,803,477
- South Africa 2,056,991 BB- 2,087,983 BB-
- A+, A, A- - 5,479,005
- Yemen 1,158,126 unrated 1,171,873 unrated
- BBB+, BBB, BBB- 1,355,657 3,226,901 23,853,926 36,603,491
1,355,657 10,509,383

216 United Bank Limited 31 Annual Report 2024 217

30
Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
For
NOTES the
TO ANDyear ended
FORMING December
PART OF THE 31, 2024
CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

Non Government Debt Securities 2024 2023 9.1 Includes net investment in finance lease as disclosed below:
Cost 2024 2023
--------- (Rupees in '000) ----------
Listed Later than
Not later than More than Not later than one Later than one and More than
- BBB+, BBB, BBB- 1,467,364 1,494,823 one and upto Total Total
one year five years year upto five years five years
five years
Other
CDC SAARC Fund 605 612
------------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------------------------

8.8 The market value of securities classified as amortised cost as at December 31, 2024, amounted to Rs. 322,113.848 million (2023: Rs. 337,640.922 Minimum lease payments 13,261 168,205 - 181,466 5,978 170,679 - 176,657
million). Financial charges for future periods (953) (38,004) - (38,957) (1,411) (9,810) - (11,221)
Present value of minimum
8.9 Investments include net securities amounting to Rs. 992,975 million (2023: Rs.1,282,409 million) which are held by the Bank to comply with the lease payments 12,308 130,201 - 142,509 4,567 160,869 - 165,436
statutory liquidity requirements as set out under Section 29 of the Banking Companies Ordinance, 1962.
2024 2023
8.10 Investments include Rs. 67.28 million (2023: Rs. 118 million) held by the State Bank of Pakistan as pledge against demand loan, TT / DD discounting --------- (Rupees in '000) ----------
9.2 Particulars of advances - gross
facilities and foreign exchange exposure limit sanctioned to the Bank and Rs. 5.00 million (2023: Rs. 5 million) held by the Controller of Military
Accounts (CMA) under Regimental Fund Arrangements. In local currency 1,109,925,640 465,031,634
In foreign currencies 455,201,721 510,670,974
8.11 The transaction for the sale of 50.1% shares of United National Bank Limited (UNBL UK) was approved by the shareholders’ of United Bank Limited
1,565,127,361 975,702,608
(UBL) in 65th Annual General Meeting held on 18 March 2024 against a consideration of GBP 25.495 million. The sale was concluded during the year
after obtaining all the regulatory approvals. 9.3 Advances to Women, Women-owned and Managed Enterprises

8.12 This represents the Bank's subscription towards the paid-up capital of Khushhali Microfinance Bank Limited. The Bank has fully impaired these Women 11,441,631 5,256,350
shares. Women-owned and Managed Enterprises 11,364 52,392
11,452,995 5,308,742
9. ADVANCES 9.3.1 Gross loans disbursed to women, women-owned and managed enterprises amounting to Rs. 8,980.054 million (2023:1,649.816 million)
2024
Note Performing Non-performing Total
9.4 Particulars of credit loss allowance against advances
-------------------------- (Rupees in '000) ----------------------------- 2024
Stage 1 Stage 2 Stage 3 Total
Loans, cash credits, running finances, etc. 9.1 1,250,821,132 108,082,351 1,358,903,483 --------------------------------- (Rupees in '000) ---------------------------------
Islamic financings and related assets 9.10 149,696,208 260,774 149,956,982 9.4.1 Advances - Exposure
Bills discounted and purchased 48,618,071 7,648,825 56,266,896
Gross carrying amount 817,014,578 48,113,494 110,574,536 975,702,608
Advances - gross 1,449,135,411 115,991,950 1,565,127,361
Exchange adjustments (5,547,829) (572,622) (1,093,552) (7,214,003)
Credit loss allowance against advances 9.6
Impact of adoption of IFRS 9 (57,023,856) 52,722,599 48,143 (4,253,114)
-Stage 1 (6,009,588) - (6,009,588)
-Stage 2 (7,736,178) - (7,736,178) New advances 1,079,829,174 27,778,410 - 1,107,607,584
-Stage 3 - (107,899,651) (107,899,651) Advances derecognised or repaid (158,910,082) (27,795,479) (5,310,472) (192,016,033)
(13,745,766) (107,899,651) (121,645,417) Transfer to stage 1 8,037,446 (8,037,446) - -
Transfer to stage 2 (4,339,486) 5,177,038 (837,552) -
Advances - net of credit loss allowance 1,435,389,645 8,092,299 1,443,481,944 Transfer to stage 3 (921,944) (17,125,631) 18,047,575 -
923,695,108 (20,003,108) 11,899,551 915,591,551
2023
Note Performing Non-performing Total Amounts charged off - agriculture financing - - (69,501) (69,501)
-------------------------- (Rupees in '000) ----------------------------- Amounts written off / charged off - - (577,830) (577,830)
Disposal of subsidiary (304,637,450) - (4,843,509) (309,480,959)
Loans, cash credits, running finances, etc. 9.1 800,959,576 107,369,561 908,329,137 Other adjustments (5,627,359) 1,001,856 54,112 (4,571,391)
Islamic financings and related assets 9.10 47,191,822 222,205 47,414,027 Closing balance - Current year 1,367,873,192 81,262,219 115,991,950 1,565,127,361
Bills discounted and purchased 16,976,674 2,982,770 19,959,444 2024
Advances - gross 865,128,072 110,574,536 975,702,608 Stage 1 Stage 2 Stage 3 Total
--------------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------
Provision against advances 9.6 9.4.2 Advances - Credit loss allowance
- Specific - (92,332,287) (92,332,287)
Opening balance 919,364 10,410,025 92,332,287 103,661,676
- General (11,329,389) - (11,329,389)
(11,329,389) (92,332,287) (103,661,676) Exchange adjustments (6,946) (137,270) (943,454) (1,087,670)
Impact of adoption of IFRS 9 4,046,484 2,689,194 1,234,016 7,969,694
Advances - net of provision 853,798,683 18,242,249 872,040,932
New Advances 2,067,736 1,758,867 - 3,826,603
Advances derecognised or repaid (376,907) (1,687,780) (3,180,881) (5,245,568)
Transfer to stage 1 412,794 (412,794) - -
Transfer to stage 2 53,836 173,493 (227,329) -
Transfer to stage 3 (4,507) (5,834,599) 5,839,106 -
2,152,952 (6,002,813) 2,430,896 (1,418,965)
Amounts charged off - agriculture financing - - (69,501) (69,501)
Amounts written off / charged off - - (577,830) (577,830)
Changes in risk parameters (945,706) 179,194 13,439,125 12,672,613
Disposal of subsidiary (156,560) - - (156,560)
Other adjustments - 597,848 54,112 651,960
Closing balance 6,009,588 7,736,178 107,899,651 121,645,417

33
218 United Bank Limited Annual Report 2024 219
Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
For the
NOTES year
TO AND ended
FORMING December
PART OF 31, 2024
THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

9.5 Advances include Rs. 115,991.950 million (2023: Rs. 110,574.536 million) which have been placed under non-performing status Particulars of provision against advances
as detailed below:
December 31, 2023 (Audited)
2024 Note Specific General Total
Non- -------------------- (Rupees in '000) -----------------
Credit loss
Category of classification in stage 3 Performing
allowance 82,038,458 10,236,536 92,274,994
Loans Opening balance
Domestic ----------- (Rupees in '000) ---------- 14,721,165 2,318,974 17,040,139
Other Assets Especially Mentioned* 80,088 47,504 Exchange adjustments
Substandard 2,307,470 1,538,389
Doubtful 280,114 135,921 Charge / (reversals)
Loss 22,398,233 21,455,978 894,440 140,921 1,035,361
25,065,905 23,177,792 Charge for the period / year
Overseas (4,561,819) (1,367,042) (5,928,861)
Reversals for the period / year
Other Assets Especially Mentioned* - - 35 (3,667,379) (1,226,121) (4,893,500)
Substandard 78,407 12,297
Doubtful 4,305,685 1,568,890
Loss 86,541,953 83,140,672 9.7 (153,498) - (153,498)
Amounts charged off - agriculture financing
90,926,045 84,721,859
Total 9.8 (606,459) - (606,459)
115,991,950 107,899,651 Amounts written off
- - -
2023 Transfers (out) / in - net
Category of Classification Non- Closing balance 92,332,287 11,329,389 103,661,676
Performing Provision
Loans 9.6.1 Particulars of credit loss allownace / provision against advances
----------- (Rupees in '000) ----------
Domestic
2024 2023
Other Assets Especially Mentioned* 105,024 3,660
Substandard 2,963,970 729,208 Stage 1 & 2 Stage 3 Total Specific General Total
Doubtful 197,690 91,464 ------------------------------------------------------------------------------------ (Rupees in '000) ----------------------------------------------------------------------
Loss 21,198,758 20,225,801
24,465,442 21,050,133 In local currency 7,940,414 22,254,174 30,194,588 20,103,817 449,481 20,553,298
Overseas branches and subsidiaries
In foreign currencies 5,805,352 85,645,477 91,450,829 72,228,470 10,879,908 83,108,378
Not past due but impaired** 2,607,829 331,800
Overdue by: 13,745,766 107,899,651 121,645,417 92,332,287 11,329,389 103,661,676
Upto 90 days 91,393 -
91 to 180 days 3,632,088 - 9.6.2 The Bank has availed the benefit of Forced Sale Value (FSV) of certain mortgaged properties held as collateral against non-
181 to 365 days 4,913,369 1,685,624 performing advances as allowed under BSD Circular 1 of 2011. Had the benefit under the said circular not been taken by the
˃ 365 days 74,864,415 69,264,730 Bank, the ECL against non-performing advances would have been higher by Rs. Nil (2023: Rs. 44.193 million).
86,109,094 71,282,154

Total 110,574,536 92,332,287 9.6.3 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 had been higher by Rs.
* The Other Assets Especially Mentioned category pertains to agriculture and small enterprises financing.
** Not past due but impaired category mainly represents restructured exposures. 1,254.08 million (2023: Rs.6,114.438 million) for the overseas branches.

9.6 Particulars of credit loss allowance against advances 2024 The FSV benefit availed is not available for the distribution of cash or stock dividend to shareholders.
Note Stage 1 Stage 2 Stage 3 Total
--------------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------
9.7 These represent non-performing advances for agriculture financing which have been classified as loss, are fully provided and
are in default for more than 3 years. These non-performing advances have been charged off by extinguishing them against the
Opening balance 919,364 10,410,025 92,332,287 103,661,676 provision held in accordance with the SBP's Prudential Regulations for Agriculture Financing. This charge off does not, in any
Exchange adjustments (6,946) (137,270) (943,454) (1,087,670) way, prejudice the Bank's right of recovery from these customers.
Impact of Adoption of IFRS 9 4,046,484 2,689,194 1,234,016 7,969,694

Charge / (reversals)
Charge for the period / year 1,384,897 3,362,228 13,911,386 18,658,511
Reversals for the period / year (639,774) (3,111,947) (3,653,142) (7,404,863)
35 745,123 250,281 10,258,244 11,253,648
Amounts charged off - agriculture financing 9.7 - - (69,501) (69,501)
Other adjustments - 597,848 54,112 651,960
Amounts written off 9.8 - - (577,830) (577,830)
Disposal of subsidiary (156,560) - - (156,560)
Transfers (out) / in - net 462,123 (6,073,900) 5,611,777 -
Closing balance 6,009,588 7,736,178 107,899,651 121,645,417

220 United Bank Limited Annual Report 2024 221

34
Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024
For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

Note 2024 2023 10.2 Property and equipment

------- (Rupees in '000) ------- 2024
9.8 Particulars of write-offs Buildings on Leasehold
Electrical,
Freehold Leasehold Buildings on Furniture and office and
Leasehold Improve- Vehicles Total
9.8.1 Against credit loss allowance / provisions 9.6 577,830 606,459 land land Freehold land fixtures computer
land ments
equipment
Directly charged to profit and loss account 35 54,951 149,845
----------------------------------------------------------------------------- Rupees '000 -----------------------------------------------------------------------------
632,781 756,304 At January 01, 2024
Cost / Revalued amount 9,543,663 30,613,443 14,725,160 7,924,682 8,989,993 3,148,765 26,660,302 870,633 102,476,641
Accumulated depreciation - - (464,830) (619,404) (5,649,681) (2,174,257) (18,161,624) (299,886) (27,369,682)
9.8.2 Bank Net book value 9,543,663 30,613,443 14,260,330 7,305,278 3,340,312 974,508 8,498,678 570,747 75,106,959
- Write-offs of Rs. 500,000 and above
Year ended December 2024
Domestic 9.9 562,619 220,828
Opening net book value 9,543,663 30,613,443 14,260,330 7,305,278 3,340,312 974,508 8,498,678 570,747 75,106,959
Overseas 22,871 113,117 Additions 4,014,680 6,269,586 120,617 253,677 2,980,457 1,588,011 7,466,565 1,611,984 24,305,577
585,490 333,945 Movement in surplus on assets
revalued during the year - - - - - - - - -
- Write-offs of below Rs. 500,000 47,291 38,058 Disposals - - (83,003) - (17,156) (6,904) (15,099) (3,395) (125,557)
632,781 372,003 Depreciation charge - - (148,073) (309,567) (982,241) (347,342) (3,821,516) (284,367) (5,893,106)
Exchange rate adjustments - 454 (202,150) (11,715) (12,527) 3,062 (6,977) (3) (229,856)
Subsidiaries
Disposal of subsidiary - - (10,705,179) - (192,878) (18,441) (18,893) - (10,935,391)
Write-offs - 384,301 Other adjustments / transfers - - - - - 836 4,846 - 5,682
632,781 756,304 Closing net book value 13,558,343 36,883,483 3,242,542 7,237,673 5,115,967 2,193,730 12,107,604 1,894,966 82,234,308

At December 31, 2024

9.9 Details of loan write-offs of Rs. 500,000 and above Cost / Revalued amount 13,558,343 36,883,483 3,630,122 8,177,977 11,516,213 4,383,491 31,242,692 2,448,054 111,840,375
Accumulated depreciation - - (387,580) (940,304) (6,400,246) (2,189,761) (19,135,088) (553,088) (29,606,067)
In terms of sub-section (3) of Section 33A of the Banking Companies Ordinance, 1962, the statement in respect of written off Net book value 13,558,343 36,883,483 3,242,542 7,237,673 5,115,967 2,193,730 12,107,604 1,894,966 82,234,308

loans or any other financial relief of five hundred thousand rupees or above allowed to a person during the year ended Rate of depreciation (%) - - 2-5 2.5-5 5-20 10-25 5 - 33.33 20
December 31, 2023, is given in annexure I to these consolidated financial statements (except in case of overseas branches and
subsidiaries write-offs which is restricted by overseas regulatory authorities). 2023
Electrical,
Buildings on Leasehold
Freehold Leasehold Buildings on Furniture and office and
9.10 Information related to Islamic financing and related assets is given in annexure II and is an integral part of these consolidated land land Freehold land
Leasehold Improve-
fixtures computer
Vehicles Total
financial statements. land ments
equipment
----------------------------------------------------------------------------- Rupees '000 -----------------------------------------------------------------------------
Note 2024 2023
At January 01, 2023
------- (Rupees in '000) ------- Cost / Revalued amount 9,543,663 32,058,110 12,078,841 7,525,987 7,382,615 2,723,506 21,868,879 725,530 93,907,131
10. PROPERTY AND EQUIPMENT Accumulated depreciation - - (595,204) (308,273) (4,715,789) (1,892,241) (15,746,137) (278,609) (23,536,253)
Net book value 9,543,663 32,058,110 11,483,637 7,217,714 2,666,826 831,265 6,122,742 446,921 70,370,878
Capital work-in-progress 10.1 3,357,691 1,353,200
Year ended December 2023
Property and equipment 10.2 82,234,308 75,106,959
Opening net book value 9,543,663 32,058,110 11,483,637 7,217,714 2,666,826 831,265 6,122,742 446,921 70,370,878
85,591,999 76,460,159 Additions - - 152,027 451,294 1,442,738 387,416 5,138,743 264,795 7,837,013
Movement in surplus on assets
10.1 Capital work-in-progress revalued during the year - - 214,555 - - - - - 214,555
Civil works 2,205,305 764,539 Disposals - (1,444,780) - (61,126) (1,454) (735) (4,648) (17,016) (1,529,759)
Depreciation charge - - (168,361) (305,024) (822,397) (252,219) (2,852,630) (123,953) (4,524,584)
Equipment 897,707 588,661
Exchange rate adjustments - 113 2,578,472 2,420 54,599 8,781 94,471 - 2,738,856
Advances to suppliers 254,679 - Other adjustments / transfers - - - - - - - - -
3,357,691 1,353,200 Closing net book value 9,543,663 30,613,443 14,260,330 7,305,278 3,340,312 974,508 8,498,678 570,747 75,106,959

At December 31, 2023

Cost / Revalued amount 9,543,663 30,613,443 14,725,160 7,924,682 8,989,993 3,148,765 26,660,302 870,633 102,476,641
Accumulated depreciation - - (464,830) (619,404) (5,649,681) (2,174,257) (18,161,624) (299,886) (27,369,682)
Net book value 9,543,663 30,613,443 14,260,330 7,305,278 3,340,312 974,508 8,498,678 570,747 75,106,959

Rate of depreciation (%) - - 2-5 2.5-5 5-20 10-25 5 - 33.33 20

10.3 Revaluation of properties

The properties of the Bank has been revalued by independent professional valuers as at December 31, 2021. The revaluation
was carried out by M/s. Engineering Pakistan International (Private) Limited, M/s. M. J. Surveyors (Private) Limited, and M/s.
Perfect Consultants on the basis of professional assessment of present market values which resulted in an increase in surplus by
Rs. 16,411.878 million. The total surplus against revaluation of Property and equipment as at December 31, 2024, amounts to Rs.
39,672.178 million.

222 United Bank Limited Annual Report 2024 223

37
Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
For TO
NOTES the
ANDyear
FORMINGended December
PART OF THE 31, 2024
CONSOLIDATED FINANCIAL STATEMENTS For TO
NOTES the
AND year
FORMINGended December
PART OF THE 31, 2024
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 FOR THE YEAR ENDED DECEMBER 31, 2024

Had there been no revaluation, the carrying amount of revalued assets of the Group at December 31, would have been as follows: 12.2 The cost of fully amortised intangible assets that are still in the Bank's use amounted to Rs. 5,050.919 million (2023: Rs. 4,879.637 million).
2024 2023
------- (Rupees in '000) -------
Freehold land 4,797,261 782,581 DEFERRED TAX (LIABILITIES) / ASSETS Note 2024
13.
Leasehold land 9,725,242 3,354,196
At January
Buildings on freehold land 2,012,509 4,430,467 Recognised in
01, Recognised Disposal of At December 31,
Buildings on leasehold land 4,714,851 4,256,262 profit and loss
2024 - as in OCI Subsidiary 2024
21,249,863 12,823,506 account
restated
10.4 Carrying amount of temporarily idle properties of the Group 127,026 127,026 -------------------------------------------------- (Rupees in '000) --------------------------------------------------

Deductible temporary differences on

10.5 The cost of fully depreciated assets that are still in the Group's use are as follows:
- Credit loss allowance against advances
Furniture and fixtures 960,138 953,388
and off balance sheet obligations 13.1 5,367,816 1,884,723 - - 7,252,539
Electrical, office and computer equipment 9,238,506 9,976,931
Vehicles 31,433 65,384 - Surplus on revaluation on investments (3,021,438) - (41,813,574) (392,454) (45,227,466)
Leasehold improvements 2,571,650 2,216,125
- Tax losses carried forward 1,111,293 (124,041) - (982,643) 4,609
12,801,727 13,211,828
10.6 Details of disposals of operating property and equipment - Post-retirement employee benefits (847,823) (11,267) (4,537,102) - (5,396,192)

- Workers Welfare Fund 4,406,522 2,231,923 - - 6,638,445

The information relating to operating fixed assets disposed off during the year to related parties is given in annexure 'III' and is an integral part of
these consolidated financial statements. - Others 20,822 310,146 (376,066) - (45,098)

11 RIGHT-OF-USE ASSETS 2024 2023 7,037,192 4,291,484 (46,726,742) (1,375,097) (36,773,163)

Buidlings Others Total Buidlings Others Total Taxable temporary differences on

---------------------------------------------- (Rupees in '000) ------------------------------------------------------ - Surplus on revaluation of

At January 1, property and equipment / non-banking assets (3,340,734) 77,788 344,626 1,698,350 (1,219,970)
Cost 14,136,595 209,786 14,346,381 12,714,260 89,986 12,804,246
Accumulated Depreciation (5,656,792) (78,116) (5,734,908) (4,803,576) (23,071) (4,826,647) - Share of profit from associates (218,473) (104,365) - - (322,838)
Net Carrying amount at January 1, 8,479,803 131,670 8,611,473 7,910,684 66,915 7,977,599 - Accelerated tax depreciation (817,819) (63,842) - (113,631) (995,292)

- Others (50,921) 50,921 - - -

Additions during the year 5,007,548 19,761 5,027,309 3,183,903 124,328 3,308,231
Deletions during the year (852,122) (11,130) (863,252) (373,111) (1,448) (374,559) (4,427,947) (39,498) 344,626 1,584,719 (2,538,100)
Depreciation charge for the year (2,458,378) (66,719) (2,525,097) (2,272,547) (63,832) (2,336,379)
Termination of lease (7,867) - (7,867) - - -
2,609,245 4,251,986 (46,382,116) 209,622 (39,311,263)
Exchange rate adjustments (11) (283) (294) 30,874 5,707 36,581
Disposal of subsidiary - (11,151) (11,151) - - - 13.1. The deductible temporary difference against Credit loss allowance against advances and off balance sheet obligations includes a deferred tax impact of Rs. 4,688.465
Net Carrying amount 10,168,973 62,148 10,231,121 8,479,803 131,670 8,611,473 million arising on adoption of IFRS- 9 as disclosed in note 2.6.1.3.

Note 2024 2023

12 INTANGIBLE ASSETS ------- (Rupees in '000) -------
2023
Capital work-in-progress - Computer software 181,419 174,853
Recognised
Intangible assets 12.1 2,359,071 2,377,545 At January 01, Recognised in At December 31,
in profit and
Goodwill 251,526 - 2023 OCI 2023
loss account
2,792,016 2,552,398
--------------------------------------- (Rupees in '000) --------------------------------------
12.1 Intangible assets
Deductible temporary differences on
Computer Software
At January 01, - Provision against advances, off-balance sheet etc. 2,628,666 (1,949,315) - 679,351
Cost 12,032,042 10,140,996 -Surplus on revaluation on investments 15,600,599 - (18,622,037) (3,021,438)
Accumulated amortisation and impairment (9,654,497) (8,007,569)
- Tax losses carried forward - 1,111,293 - 1,111,293
Net book value 2,377,545 2,133,427
- Post-retirement employee benefits 58,867 104,923 (1,011,613) (847,823)
Year ended December 31,
Opening net book value 2,377,545 2,133,427 - Workers Welfare Fund 3,036,553 1,369,969 - 4,406,522
Additions - - Others (40,822) 155,619 (93,975) 20,822
-directly purchased 1,080,568 1,286,014
Disposals (3,451) (3,330) 21,283,863 792,489 (19,727,625) 2,348,727
Amortisation charge (1,041,738) (1,085,264) Taxable temporary differences on
Exchange rate adjustments (17,682) 46,698
Disposal of subsidiary (36,171) - - Surplus on revaluation of property and equipment / non-banking assets (2,998,994) 79,667 (421,407) (3,340,734)
Closing net book value 2,359,071 2,377,545 - Share of profit from associates (869,279) 650,806 - (218,473)

At December 31, - Accelerated tax depreciation (664,231) (153,588) - (817,819)

Cost 11,213,400 12,032,042 - Others (238) (104,411) 53,728 (50,921)
Accumulated amortisation and impairment (8,854,329) (9,654,497)
Net book value 2,359,071 2,377,545 (4,532,742) 472,474 (367,679) (4,427,947)

Rate of amortisation (percentage) 10-33.33 10-33.33

16,751,121 1,264,963 (20,095,304) (2,079,220)
Useful life (in years) 3 - 10 3 - 10

224 United Bank Limited 38 Annual Report 2024 225

Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
For TO
NOTES the
ANDyear
FORMINGended December
PART OF THE 31, 2024
CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2024
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

Note 2024 2023 Note 2024 2023

------- (Rupees in '000) -------
14.3.2 Non-banking assets acquired in satisfaction of claims ------- (Rupees in '000) -------
14. OTHER ASSETS

Income / mark-up accrued in local currency 161,331,956 121,606,613 Opening Balance 42,075 40,800
Income / mark-up accrued in foreign currencies 14.2 3,617,197 3,056,696 Revaluation during the year 2,387 -
Advance taxation - net of provision for taxation 14.1 1,852,379 - Impairment reversal 839 4,287
Receivable from staff retirement fund 13,055,061 4,730,609 Depreciation 32 (3,226) (3,012)
Receivable from other banks against telegraphic transfers and demand drafts 2,097,214 38,339 Closing Balance 42,075 42,075
Unrealised gain on forward foreign exchange contracts 1,102,125 4,461,256
Rebate receivable - net 9,500,919 1,868,330 14.4 Credit loss allowance / Provision held against other assets
Unrealised gain on derivative financial instruments 26.2 1,262,202 32,379
Advances and other receivables 1,094,643 675,495
Suspense accounts 51,321 -
Stationery and stamps on hand 599,150 593,636 Receivable against fraud & forgery and looted notes 463,765 475,390
Non-banking assets acquired in satisfaction of claims 14.3 39,688 42,075 1,558,408 1,150,885
Advances, deposits, advance rent and other prepayments 14,164,144 3,143,717
Acceptances 21 38,205,805 17,584,022 14.4.1 Movement of credit loss allowance / provision held against other assets
Commission receivable - Bancassurance & Branchless Banking 719,773 688,884
Opening balance 1,150,885 1,244,972
Receivable against fraud & forgery and looted notes 463,765 475,390
Exchange adjustments (5,319) 83,333
Others 1,430,573 1,985,592 Charge / (reversal)
249,493,272 160,307,538 Charge for the year 595,026 97,737
Less: Credit loss allowance / Provision held against other assets 14.4 (1,558,408) (1,150,885) Reversals for the year (118,774) (126,753)
Other assets - net of Credit loss allowance / provision 247,934,864 159,156,653 35 476,252 (29,016)
Transfers out - net (62,852) -
Surplus on revaluation of non-banking assets acquired in Amounts written off (558) (148,404)
Closing balance 1,558,408 1,150,885
satisfaction of claims 23.2 2,387 -
Other assets - total 247,937,251 159,156,653
15. CONTINGENT ASSETS

14.1 The Income Tax returns of the Bank have been filed up to the tax year 2024 (accounting year ended December 31, 2023) and were deemed to be There were no contingent assets as at December 31, 2024 (2023: Nil).
assessed under section 120 of the Income Tax Ordinance, 2001 (Ordinance). 2024 2023
------- (Rupees in '000) -------
The income tax authorities have issued amended assessment orders for the tax years 2003 to 2024, and created additional tax demands (including
disallowances of provisions made prior to Seventh Schedule) of Rs.16,123 million (2023: Rs.14,124 million) . The Bank has filed appeals before the 16. BILLS PAYABLE
various appellate forums against these amendments. Where the appellate authorities have allowed relief on certain issues, the assessing In Pakistan 42,994,426 19,850,218
authorities have filed appeals before higher appellate forums. Where the appellate authorities have not allowed relief the Bank has filed appeals
Outside Pakistan 1,227,392 1,884,313
before higher appellate forums. The management of the Bank is confident that the appeals will be decided in favor of the Bank.
44,221,818 21,734,531
The tax returns for Azad Kashmir (AK) and Gilgit Baltistan (GB) branches have been filed upto the tax year 2024 (accounting year ended December 17. BORROWINGS
31, 2023) 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. Secured
Borrowings from the State Bank of Pakistan under:
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 (2023: Rs. 2,632 million). The Bank Export refinance scheme 17.2 31,367,936 37,076,201
has filed appeals against all such demands and is confident that these would be decided in the favor of the Bank. Refinance facility for modernisation of SMEs 17.3 2,119,689 1,353,958
Long term financing facility 17.4 10,373,465 13,991,026
The tax returns for UAE and Qatar branches have been filed upto the year ended December 31, 2023 and Yemen branches have been filed upto
the year ended December 31, 2019 under the provisions of the laws prevailing in the respective countries, and are deemed as assessed unless Renewable energy scheme 17.5 1,339,755 873,755
opened for reassessment. Temporary economic refinance facility 17.6 15,009,764 16,886,679
Refinance facility for combating COVID-19 17.7 110,693 332,674
The tax returns of UBL FM have been filed upto the accounting year ended December 31, 2023, under the provisions of the prevailing tax laws and Refinance for Women Entrepreneurs 17.8 45,295 61,200
are deemed as assessed unless opened for reassessment by the tax authorities.
Financing facility for storage of agriculture products 17.9 20,625 34,375
The tax returns of UBL currency exchange have been filed upto the accounting year ended June 30, 2024, under the provisions of the prevailing tax Repurchase agreement borrowings 17.10 4,532,326,857 2,717,697,641
laws and are deemed as assessed unless opened for reassessment by the tax authorities. 4,592,714,079 2,788,307,509
Repurchase agreement borrowings from other banks 17.11 157,965,709 22,881,729
There are no material tax contingencies in any of the subsidiaries.
Borrowing from commercial bank by subsidiary 17.12 - 1,498,925
14.2 Unrealised mark-up held in suspense amounting to Rs. 46,732.081 million (2023: Rs. 39,977.644 million) against non-performing overseas 4,750,679,788 2,812,688,163
advances has been netted off. Unsecured
2024 2023 Call borrowings 17.13 103,908,861 10,603,000
------- (Rupees in '000) -------
Overdrawn nostro accounts 784,867 596,751
14.3 Market value of non-banking assets acquired in satisfaction of claims 42,075 42,075 104,693,728 11,199,751
4,855,373,516 2,823,887,914
14.3.1 Non-banking assets acquired in satisfaction of claims have been revalued by independent professional valuer as at December 31, 2024. The
revaluation was carried out by M/s. F.K.S Building Services on the basis of an assessment of present market values and resulted in an increase in
surplus of Rs. 2.387 million.

226 United Bank Limited 40 Annual Report 2024 227

Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
For TO
NOTES the
ANDyear ended
FORMING December
PART OF THE 31, 2024
CONSOLIDATED FINANCIAL STATEMENTS For TO
NOTES the
AND year
FORMINGended December
PART OF THE 31, 2024
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 FOR THE YEAR ENDED DECEMBER 31, 2024

2024 2023 18. DEPOSITS AND OTHER ACCOUNTS

17.1 Particulars of borrowings with respect to Currencies ------- (Rupees in '000) -------
Note 2024 2023
In Foreign In Local In Foreign
In local currency 4,826,733,738 2,816,375,734 In Local Currency
currencies
Total
Currency currencies
Total

In foreign currencies ----------------------------------------------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------------------------------------------

28,639,778 7,512,180 Customers
4,855,373,516 2,823,887,914 Current accounts 1,061,667,711 438,673,584 1,500,341,295 838,679,284 264,416,961 1,103,096,245
Savings deposits 745,150,912 48,987,572 794,138,484 698,079,461 89,414,155 787,493,616
Term deposits 74,795,514 90,103,254 164,898,768 158,820,636 337,702,171 496,522,807
17.2 This facility is secured against a demand promissory note executed in favour of the State Bank of Pakistan. The Bank has entered into an Others 50,177,905 6,621,539 56,799,444 22,587,057 7,246,442 29,833,499
agreement with the SBP for extending export finance to customers. These borrowings are repayable within six months, latest by June 2025. These 1,931,792,042 584,385,949 2,516,177,991 1,718,166,438 698,779,729 2,416,946,167
Financial Institutions
carry mark-up at rates ranging from 1.00% to 15.50% (2023: 1.00% to 18.00%) per annum. Current deposits 18,028,756 6,784,813 24,813,569 24,773,540 6,928,345 31,701,885
Savings deposits 95,531,207 93,460 95,624,667 173,505,890 6,343,690 179,849,580
Term deposits 131,850 3,127,908 3,259,758 1,925,450 4,293,020 6,218,470
17.3 This facility is secured against a demand promissory note executed in favour of the State Bank of Pakistan. These borrowings have been obtained 113,691,813 10,006,181 123,697,994 200,204,880 17,565,055 217,769,935
from the SBP under a scheme to finance modernization of Small and Medium Enterprises by providing financing facilities for setting up of new units,
purchase of new plant and machinery for Balancing, Modernization and Replacement (BMR) of existing units and financing for import / local 18.2 2,045,483,855 594,392,130 2,639,875,985 1,918,371,318 716,344,784 2,634,716,102
purchase of new generators upto a maximum capacity of 500 KVA and offering a SME Asaan Finance (SAAF) scheme to fulfill the financing
requirements of SMEs. These borrowings are repayable latest by June 2034 and carry mark-up at rates ranging from 2.00% to 3.00% (2023: 2.00%
to 3.00%) per annum. 2024 2023
18.1 Composition of deposits ------- (Rupees in '000) -------

17.4 This facility is secured against a demand promissory note executed in favour of the State Bank of Pakistan. These borrowings have been obtained - Individuals 1,751,566,545 1,681,182,030
from the SBP for providing financing facilities to exporters for adoption of new technologies and modernization of their plant and machinery. These
- Government (Federal and Provincial) 116,543,627 175,469,249
borrowings are repayable latest by December 2032. These carry mark-up at rates ranging from 2.00% to 12.30% (2023: 2.00% to 10.00%) per
annum. - Public Sector Entities 62,786,663 85,654,478
- Banking Companies 6,112,347 6,625,441
- Non-Banking Financial Institutions 117,921,151 211,144,494
17.5 This facility is secured against a demand promissory note executed in favour of the State Bank of Pakistan. These borrowings have been obtained
- Private Sector 584,945,652 474,640,410
from the SBP for providing financing facilities to address challenges of energy shortage and climate change through promotion of renewable energy.
2,639,875,985 2,634,716,102
These borrowings are repayable latest by June 2036. These carry mark-up at rates ranging from 2.00% to 4.80% (2023: 2.00% to 3.00%) per
annum.
18.2 This includes deposits eligible to be covered under insurance arrangements in accordance with DPC Circular No. 04 dated June 22, 2018,
amounting to Rs. 1,637,394.911 million (2023: Rs. 1,376,823.088 million).
17.6 This facility is secured against a demand promissory note executed in favour of the State Bank of Pakistan. These borrowings have been obtained
from the SBP under a scheme to provide concessionary refinance for setting up of new industrial units in the backdrop of challenges being faced by
industries post pandemic scenario. These carry mark-up at rates of 1.00% to 2.80% (2023: 1.00%) per annum and are due to mature latest by April 2024 2023
2033. 19. LEASE LIABILITIES ------- (Rupees in '000) -------

Opening balance 10,474,561 9,614,922

17.7 This facility is secured against a demand promissory note executed in favour of the State Bank of Pakistan. These borrowings have been obtained
Additions during the year 5,012,628 3,307,070
from the SBP under a scheme to provide the emergency refinance facility to hospitals & medical centre to develop capacity for the treatment of
Lease payments including interest (3,625,093) (3,282,249)
COVID-19 patients. These carry mark-up at 0.00% to 1.00% (2023: 0.00%) per annum and are due to mature latest by May 2027.
Interest expense 1,506,565 1,236,242
Termination/modification (970,038) (409,209)
17.8 This facility is secured against a demand promissory note executed in favour of the State Bank of Pakistan. These borrowings have been obtained Disposal of subsidiary (14,965) -
from the SBP under a scheme to provide refinance for women entrepreneurs in the underserved areas of the country. These carry mark-up at Exchange difference (2,640) 7,785
0.00% (2023: 0.00%) per annum and are due to mature latest by March 2029. Closing balance 12,381,018 10,474,561

17.9 This facility is secured against a demand promissory note executed in favour of the State Bank of Pakistan. These borrowings have been obtained 19.1 Contactual maturity of lease laibilities
from the SBP under a scheme to provide refinance for storage of agricultural products in rural areas. These carry mark-up at 2.00% (2023: 2.00%) Short-term lease liabilities - within one year 449,413 383,156
per annum and are due to mature latest by March 2026. Long-term lease liabilities
- 1 to 5 years 4,287,828 4,873,805
- 5 to 10 years 7,140,514 5,217,600
17.10 This represents repurchase agreement borrowing from SBP at rates ranging from 13.04% to 13.07% (2023: 22.04% to 22.06%) per annum having
- More than 10 years 503,263 -
maturity upto January 2025. The market value of securities given as collateral against these borrowings is given in note 8.2.1.
11,931,605 10,091,405
Total lease liabilities 12,381,018 10,474,561

17.11 These repurchase agreement borrowings from other banks are secured against Pakistan Investment Bonds, Market Treasury Bills and foreign
securities and carry mark-up at rates ranging from 5.23% to 13.05% (2023: 5.88% to 22.05% against foreign securities) per annum. These
borrowings are repayable latest by April 2025. The market value of securities given as collateral against these borrowings is given in note 8.2.1.

17.12 These borrowings pertain to running finance facilities obtained by subsidiary company amounting to Nil (2023: Rs. 1,498.925 million) from
commercial banks against promissory notes with mark-up rates ranging Nil (2023: 3 months average KIBOR plus 0.25% to 0.50%) per annum.

17.13 These are unsecured borrowings carrying mark-up at 12.05% to 15.90% (2022: 20.75% to 22.00%) per annum, and are repayable latest by March
2025.

228 United Bank Limited Annual Report 2024 229

Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
For the
NOTES year
TO AND ended
FORMING December
PART OF 31, FINANCIAL
THE CONSOLIDATED 2024 STATEMENTS For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

20. SUBORDINATED DEBT Note 2024 2023

------- (Rupees in '000) -------
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 21.2 Deferred liabilities
Tier I Capital as outlined by State Bank of Pakistan (SBP) under BPRD Circular No. 6 dated August 15, 2013. Provision for post-retirement medical benefits 40.7 2,921,465 2,590,351
Provision for compensated absences 554,514 810,025
Salient features of the Additional Tier 1 issue are as follows:
End of service benefits
Issue Size Rs. 10,000 million - Overseas branches 675,476 648,827
Issue Date January 29, 2019 - Outsourced services 500,597 346,705
Tenor Perpetual (i.e. no fixed or final redemption date) 4,652,052 4,395,908
Rating “AA+” (Double A Plus) by VIS Credit Rating Company Limited
21.3 The total cash outflow for leases during the year was Rs. 3,623.173 million (2023: Rs. 3,343.300 million).
Security Unsecured
Markup rate The TFCs shall carry mark-up at the rate of 3 Month KIBOR + 1.55%. 21.4 This includes deferred income of IFRS 15 "Revenue from Contracts with Customers" on account of fee of debit and credit cards,
Markup payment frequency Profit / Mark-up shall be payable quarterly in arrears, on a non-cumulative basis. guarantee commission and locker rent.
The Bank may, at its sole discretion, call the TFCs, at any time after five years from the Issue 22. SHARE CAPITAL
Call option
Date subject to the prior approval of the SBP.
Markup on the TFCs shall only be paid from the current year's earnings and if the Bank is fully
22.1 Authorised Capital
Lock-in clause compliant with SBP’s Minimum Capital Requirement (MCR), Capital Adequacy Ratio (CAR) and 2024 2023 2024 2023
Liquidity Ratio (LR) requirements. ----- Number of shares ----- ------- (Rupees in '000) -------

The TFCs shall, at the discretion of the SBP, be either permanently converted into ordinary 2,000,000,000 2,000,000,000 Ordinary shares of Rs.10 each 20,000,000 20,000,000
shares or permanently written off (partially or in full) pursuant to the loss absorbency clause as
Loss absorbency clause 22.2 Issued, subscribed and paid-up capital
stipulated in the “Instructions for Basel III Implementation in Pakistan” issued vide BPRD Circular
No. 6 dated August 15, 2013. 2024 2023 2024 2023
----- Number of shares ----- ------- (Rupees in '000) -------
Note 2024 2023 Fully paid-up ordinary shares of Rs.10 each
------- (Rupees in '000) -------
21. OTHER LIABILITIES 518,000,000 518,000,000 Issued for cash 5,180,000 5,180,000

Mark-up / return / interest payable in local currency 55,728,483 47,159,535 706,179,687 706,179,687 Issued as bonus shares 7,061,797 7,061,797
Mark-up / return / interest payable in foreign currencies 1,192,511 1,501,909 1,224,179,687 1,224,179,687 12,241,797 12,241,797
Accrued expenses 18,080,836 7,999,572
Branch adjustment account 153,603 749,289 22.3 In 2007, the Bank was admitted to the official list of the UK Listing Authority and to the London Stock Exchange Professional
Deferred income 21.4 2,532,247 1,332,699 Securities Market for trading of Global Depository Receipts (GDRs), each representing four ordinary shares issued by the Bank.
Current taxation (provisions less payments) 14.1 - 7,275,286 The GDRs constitute an offering in the United States only to qualified institutional buyers in reliance on Rule 144A under the U.S
Unearned commission and income on bills discounted 3,100,180 1,169,241 Securities Act of 1933 and an offering outside the United States in reliance on Regulation S.
Credit loss allowance / Provision against off-balance sheet obligations 21.1 3,385,916 1,056,385
Unrealised loss on forward foreign exchange contracts 1,324,301 2,789,527 Holders of GDRs are entitled, subject to the provisions of the depository agreement, to receive dividends, if any, and rank pari
Unrealised loss on derivative financial instruments 26.2 5,708 5,762 passu with other equity shareholders in respect of such entitlement. However, the holders of GDRs have no voting rights or other
Deferred liabilities 21.2 4,652,052 4,395,908 direct rights of shareholders with respect to the ordinary shares underlying such GDRs. Subject to the terms and restrictions set
Suspense accounts - 247,181 out in the offering circular dated June 25, 2007, the deposited ordinary shares in respect of which the GDRs were issued may be
Workers' Welfare Fund payable 12,910,878 9,097,179 withdrawn by the GDR holders from the depository facility. Upon withdrawal, the holders will rank pari passu with other ordinary
Liabilities against Card settlement 74,372 148,039 shareholders in respect of voting powers. As at December 31, 2024 242,278 (2023: 242,278) GDRs, representing 969,112 (2023:
Dividend payable 372,343 370,889 969,112) shares, are in issue.
Unclaimed dividend 393,372 356,426
Acceptances 14 38,205,805 17,584,022 22.4 Major shareholders (holding more than 5% of total paid-up capital)
Charity fund balance 17,237 21,399
Levies and taxes payable 964,574 9,209,613 2024 2023
Others 4,031,246 3,440,102 Number of Percentage of Number of Percentage of
147,125,664 115,909,963 Name of shareholders shares held shareholding shares held shareholding

Bestway International Holdings Limited 631,728,895 51.60% 631,728,895 51.60%

Bestway Cement Limited 118,693,799 9.70% 97,885,442 8.00%
21.1 Credit loss allowance / Provision against off-balance sheet obligations
Opening balance 1,056,385 896,567 2024 2023
Exchange adjustments (11,779) 207,162 22.5 Shares of the Bank held by its associates ------- (Number of shares) -------
Impact of adoption of IFRS 9 1,037,902 - UBL Stock Advantage Fund 930,332 1,252,602
Charge / (Reversal)
Charge for the year 1,308,168 4,367 UBL Financial Sector Fund 495,643 385,334
Reversals for the year (4,760) (33,671) UBL Retirement Savings Fund 150,269 344,983
35 1,303,408 (29,304)
Transfers out - net - (18,040) UBL Asset Allocation Fund 20,233 58,733
Closing balance 3,385,916 1,056,385 UBL Pakistan Enterprise Exchange Traded Fund 28,518 23,644
UBL Dedicated Equity Fund - 19,700

230 United Bank Limited 44 Annual Report 2024 231

45
Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
For the
NOTES year
TO AND ended
FORMING PART December 31, 2024
OF THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO AND
For the FORMING
year PART OF
ended THE CONSOLIDATED
December FINANCIAL STATEMENTS
31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024 FOR THE YEAR ENDED DECEMBER 31, 2024

23. SURPLUS ON REVALUATION OF ASSETS Note 2024 2024 2023

Attributable to 23.1 Surplus on revaluation of property and equipment ------- (Rupees in '000) -------
Non- Surplus on revaluation of property and equipment as at January 01, 48,068,016 47,631,952
Equity
controlling Total Revaluation against property and equipment recognised during the year - 214,555
Holders
interest Realised on disposal during the year (41,691) (1,499,603)
------------------------ (Rupees in '000) ------------------- Exchange adjustments (153,672) 1,933,058
Other adjustments 5,779 (43,902)
(Deficit) / Surplus arising on revaluation of: Transferred to unappropriated profit in respect of incremental depreciation - net of deferred tax (79,272) (88,377)
- Securities measured at FVOCI - Debt 8.1 Related deferred tax liability on incremental depreciation charged during the year (77,788) (79,667)
73,035,015 - 73,035,015 Transferred to unappropriated profit on derecognition of subsidiary (8,049,194) -
- Securities measured at FVOCI - Equity 8.1 7,869,404 - 7,869,404 Surplus on revaluation of property and equipment as at December 31, 39,672,178 48,068,016
- Property and Equipment 23.1 39,672,178 - 39,672,178 Less: Related deferred tax liability on
- Non-banking assets acquired in satisfaction of claims 23.2 2,387 - 2,387 - Revaluation as on January 01, 3,340,736 2,998,994
- Assets of associates - Revaluation recognised during the year - 43,505
21,884 - 21,884 - Surplus realised on disposal of property and equipment during the year - (25,370)
120,600,868 - 120,600,868 - Exchange adjustments (32,220) 403,274
- Incremental depreciation charged (77,788) (79,667)
Deferred tax on (deficit) / surplus on revaluation of: - Transferred to unappropriated profit on derecognition of subsidiary (1,698,352) -
- Other adjustments (313,647) -
- Securities measured at FVOCI - Debt 37,979,386 - 37,979,386 - Revaluation as at December 31, 1,218,729 3,340,736
- Securities measured at FVOCI - Equity 4,092,088 - 4,092,088 38,453,449 44,727,280
- Property and equipment 23.1 1,218,729 - 1,218,729 23.2 Surplus on revaluation of non-banking assets
- Non-banking assets acquired in satisfaction of claims 23.2 1,241 - 1,241 Surplus on revaluation of non-banking assets as at January 01, - -
43,291,444 - 43,291,444 Revaluation of non-banking assets during the year 2,387 -
Other adjustments - -
77,309,424 - 77,309,424 Realised on disposal during the year - -
2,387 -
2023 Surplus on revaluation of non-banking assets as at December 31, 2,387 -
Attributable to Less: Related deferred tax liability on
Non- - Revaluation as at January 01, - -
Equity
controlling Total - Revaluation of non-banking assets during the year 1,241 -
Holders
interest - Other adjustments - -
------------------------ (Rupees in '000) ------------------- - Surplus realised on disposal of non-banking assets during the year - -
(Deficit) / Surplus arising on revaluation of: - Revaluation as at December 31, 1,241 -
- Available for sale securities-Debt 8.1 2,394,621 (1,053,046) 1,341,575
1,146 -
- Available for sale securities-Equity 8.1 3,678,469 - 3,678,469 24. NON-CONTROLLING INTEREST 2024 2023
- Property and Equipment 23.1 UBL FM UNBL UBL FM Total
44,357,289 3,710,727 48,068,016
Share of NCI 1.13% 45% 1.13%
- Non-banking assets acquired in satisfaction of claims 23.2 - - - ------------------- (Rupees in '000) -----------------
- Assets of associates (7,753) - (7,753) Assets 5,222,132 328,789,627 5,178,104 333,967,731
50,422,626 2,657,681 53,080,307 Liabilities 798,416 295,742,667 2,112,043 297,854,710
Net assets 4,423,716 33,046,960 3,066,061 36,113,021
Deferred tax on (deficit) / surplus on revaluation of: Net assets attributable to NCI 49,910 14,871,132 33,247 14,904,379
- Available for sale securities-Debt 1,482,250 (263,262) 1,218,988 2024
- Available for sale securities-Equity 1,802,450 - 1,802,450 UBL FM
- Property and Equipment 23.1 24.1 Key financial information (Rupees in
2,561,979 778,757 3,340,736
Income (Markup & Non-Markup) '000)
3,837,575
- Non-banking assets acquired in satisfaction of claims 23.2 - - -
Expenses (including provisions) (2,501,337)
5,846,679 515,495 6,362,174 Profit for the year 1,336,238
Other comprehensive income for the year 20,070
44,575,947 2,142,186 46,718,133 1,356,308
Total Comprehensive Income
Profit allocated to NCI 15,099
OCI allocated to NCI 261
Cash flow generated from operating activities 1,265,036
Cash flow generated from investing activities 490,924
Cash flow used in financing activities -
1,755,960

47

232 United Bank Limited Annual Report 2024 233

Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2024
For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024
For the year ended December 31, 2024

Note 2024 2023 Note 2024 2023

------- (Rupees in '000) ------- 25.2.5 Commitments in respect of forward lending ------- (Rupees in '000) -------
25. CONTINGENCIES AND COMMITMENTS
Undrawn formal standby facilities, credit lines and other
Guarantees 25.1 352,581,311 286,724,968 commitments to lend 25.2.5.1 73,281,452 94,695,244
Commitments 25.2 1,433,032,657 1,054,616,393 Others 94,906,417 59,624,251
Other contingent liabilities 25.3 15,960,716 16,116,861 168,187,869 154,319,495
1,801,574,684 1,357,458,222
25.2.5.1 These represent commitments that are irrevocable because they cannot be withdrawn at the discretion of the Group without
25.1 Guarantees: the risk of incurring significant penalty or expense.

Financial guarantees 124,354,428 124,944,607 Note 2024 2023

Performance guarantees 221,439,705 154,072,480 25.2.6 Commitments in respect of operating leases ------- (Rupees in '000) -------
Others guarantees 6,787,178 7,707,881
352,581,311 286,724,968 Not later than one year 167,593 75,986
25.2 Commitments: Later than one year and not later than five years 4,845 11,095
Later than five years - -
Documentary credits and short-term trade-related transactions 172,438 87,081
- letters of credit 354,707,969 303,953,368
25.3 Other contingent liabilities
Commitments in respect of:
- forward foreign exchange contracts 25.2.2 582,473,911 572,110,279 25.3.1 Claims against the Group not acknowledged as debts 25.3.2 15,960,716 16,116,861
- forward government securities transactions 25.2.3 319,286,690 19,956,300
- derivatives 25.2.4 - 366,068
These mainly represent counter claims filed by the borrowers for restricting the Group from disposal of assets (such as
- forward lending 25.2.5 168,187,869 154,319,495
mortgaged / pledged assets kept as security).
- operating leases 25.2.6 172,438 87,081
1,070,120,908 746,839,223 Based on legal advice and / or internal assessments, management is confident that the matters will be decided in favour of
Commitments for acquisition of: the Group and the possibility of any outcome against the Group is remote and accordingly no provision has been made in
- property and equipment 6,691,082 2,998,928 these consolidated financial statements.
- intangible assets 1,512,698 824,874
8,203,780 3,823,802 25.3.2 This includes, penalties amounting to Rs. 4,089 million (2023: Rs.4,089 million) were levied by the FE Adjudication Court of
1,433,032,657 1,054,616,393 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
25.2.1 Commitments to extend credit
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
The Group makes commitments to extend credit in the normal course of its business but these being revocable commitments
management, based on the advice from legal counsel, is confident that the view of the Bank will prevail and the Bank will not
do not attract any significant penalty or expense if the facility is unilaterally withdrawn.
be exposed to any loss on this account.
Note 2024 2023
------- (Rupees in '000) ------- 25.4 For contingencies relating to taxation, refer note 14.1.
25.2.2 Commitments in respect of forward foreign exchange contracts
26. DERIVATIVE INSTRUMENTS
Purchase 302,218,129 295,080,548
Sale 280,255,782 277,029,731 Derivatives are a type of financial contract, the value of which is determined by reference to one or more underlying assets or
582,473,911 572,110,279 indices. The major categories of such contracts include forwards, futures, swaps and options. Derivatives also include
structured financial products that have one or more of the characteristics of forwards, futures, swaps and options.
25.2.3 Commitments in respect of forward government securities transactions
Purchase 26.1 296,701,690 16,956,300 The Bank, as an Authorised Derivative Dealer (ADD), is an active participant in the Pakistan derivatives market and offers a
Sale 26.1 22,585,000 3,000,000 wide variety of derivatives products covering both hedging and market making to satisfy customers’ needs. Where required,
specific approval is sought from the SBP for each transaction.
319,286,690 19,956,300
25.2.4 Commitments in respect of derivatives The Risk management policy related to derivatives is discussed in note 49.7
FX options
Purchase 26.1 - 183,034
Sale 26.1 - 183,034
- 366,068

234 United Bank Limited 49 Annual Report 2024 235

48
Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024
For the
NOTES year
TO AND ended
FORMING December
PART OF 31, FINANCIAL
THE CONSOLIDATED 2024 STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024

26.1 Product analysis Note 2024 2023

2024
27. MARKUP / RETURN / INTEREST EARNED ------- (Rupees in '000) -------
Forward purchase
Forward sale contracts of
Counterparties Interest rate swaps FX options contracts of government Total On:
government securities
securities Loans and advances 113,169,381 123,921,580
Mark to Mark to Mark to Mark to Investments 961,335,176 395,162,738
Notional Mark to Notional Notional Notional Notional
market market market market Lendings to financial institutions 3,271,180 10,935,014
principal market gain principal principal principal principal
gain gain (loss) /gain gain
Balances with banks 6,865,760 5,192,192
---------------------------------------------------------------------------- (Rupees in 000) ----------------------------------------------------------------------------
1,084,641,497 535,211,524
With banks for
Hedging - - - - - - - - - -
Market making - - - - - - - - - - 28. MARKUP / RETURN / INTEREST EXPENSED
- - - - - - - - - -
With FIs other than Banks On:
Hedging - - - - - - - - - -
Deposits 202,299,931 177,753,215
Market making - - - - - - 2,585,000 (3,085) 2,585,000 (3,085)
- - - - - - 2,585,000 (3,085) 2,585,000 (3,085) Borrowings 701,165,478 202,014,336
With other entities Subordinated debt 2,130,979 2,236,433
Hedging - - - - - - - - - - Cost of foreign currency swaps against foreign currency deposits / borrowings 3,992,583 2,996,229
Market making - - - - 296,701,690 1,258,709 20,000,000 870 316,701,690 1,259,579 Lease liability against right-of-use assets 1,504,645 1,236,242
- - - - 296,701,690 1,258,709 20,000,000 870 316,701,690 1,259,579 911,093,616 386,236,455
Total
Hedging - - - - - - - - - -
Market making - - - - 296,701,690 1,258,709 22,585,000 (2,215) 319,286,690 1,256,494 29. FEE AND COMMISSION INCOME
- - - - 296,701,690 1,258,709 22,585,000 (2,215) 319,286,690 1,256,494
Branch banking customer fees 1,956,273 2,732,732
2023 Consumer finance related fees 1,303,431 1,759,924
Forward purchase
Forward sale contracts of Card related fees (debit and credit cards) 3,815,903 3,128,939
Counterparties Interest rate swaps FX options contracts of government Total
government securities Investment banking fees 277,908 318,860
securities
Mark to Mark to Mark to Mark to
Financial Institution rebate / commission 762,725 580,938
Notional Mark to Notional Notional Notional Notional Corporate service charges / facility fee 1,394,957 864,275
market market market market
principal market gain principal principal principal principal Commission on trade 3,084,229 2,291,291
gain gain gain gain
---------------------------------------------------------------------------- (Rupees in 000) ---------------------------------------------------------------------------- Commission on guarantees 1,402,824 827,236
With banks for Commission on cash management 1,138,065 1,141,040
Hedging - - 183,034 - - - - - 183,034 - Commission on remittances including home remittances - net 2,123,851 2,929,225
Market making - - - - - - - - - - Commission on bancassurance 1,156,957 1,092,163
- - 183,034 - - - - - 183,034 - 2,439,655
Management fee 1,609,148
With FIs other than Banks
Hedging - - - - - - - - - -
Rent on lockers 225,953 221,130
Market making - - - - - - 3,000,000 297 3,000,000 297 Others 452,598 254,183
- - - - - - 3,000,000 297 3,000,000 297 21,535,329 19,751,084
With other entities 30. GAIN ON SECURITIES - NET
Hedging - - - - - - - - - -
Market making - - 183,034 - 16,956,300 26,320 - - 17,139,334 26,320
- - 183,034 - 16,956,300 26,320 - - 17,139,334 26,320
Realised 30.1 42,557,633 611,856
Total Unrealised - Measured at FVTPL 8.1 35,068 (79,074)
Hedging - - 183,034 - - - - - 183,034 - 42,592,701 532,782
Market making - - 183,034 - 16,956,300 26,320 3,000,000 297 20,139,334 26,617 30.1 Realised gain / (loss) on:
- - 366,068 - 16,956,300 26,320 3,000,000 297 20,322,368 26,617

26.2 Maturity analysis of derivatives Federal Government securities 37,624,519 671,994

Shares 244,402 613,854
2024 2023 Foreign securities 4,642,824 (993,213)
Remaining maturity Mark to Market Mark to Market
Number of Notional Number of Notional Other securities 45,888 319,221
contracts principal Negative Positive Net contracts principal Negative Positive Net 42,557,633 611,856
--------------------------------------------- (Rupees in '000) ------------------------------------------
--------------------------------------------- (Rupees in '000) ------------------------------------------

Upto 1 month 22 319,286,690 (5,708) 1,262,202 1,256,494 10 3,248,298 - 297 297 31. OTHER INCOME
1 to 3 months - - - - - 7 17,074,070 (5,762) 32,082 26,320
3 to 6 months - - - - - - - - - -
- - - - - - - - - -
Charges recovered 816,979 902,627
6 months to 1 year
1 to 2 years - - - - - - - - - - Rent on properties 103,842 151,451
2 to 3 Years - - - - - - - - - - Gain on sale of property and equipment - net 234,287 487,633
Over 3 years - - - - - - - - - - Gain on sale of Ijarah assets - net 1,016 2,068
22 319,286,690 (5,708) 1,262,202 1,256,494 17 20,322,368 (5,762) 32,379 26,617 Loss on trading liabilities - net (16,549) (20,670)
1,139,575 1,523,109

236 United Bank Limited Annual Report 2024 237

Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
For
NOTESthe year
TO AND ended
FORMING December
PART OF 31, 2024
THE CONSOLIDATED
FOR THE YEAR ENDED DECEMBER 31, 2024
FINANCIAL STATEMENTS For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

Note 2024 2023 Note 2024 2023

------- (Rupees in '000) ------- 32.1 Total compensation expense ------- (Rupees in '000) -------
32. OPERATING EXPENSES
Non- Executive Directors' fees 43.2 117,870 102,700
Total compensation expense 32.1 38,899,310 26,983,718
Shariah Board's fees and allowances 43.3 12,973 12,641
Property expense
Managerial remuneration
Rent and taxes 32.5 1,927,944 1,606,540
i) Fixed 18,609,023 14,733,888
Insurance 314,169 287,379
ii) Variable - Cash Bonus 8,865,418 2,257,507
Utilities cost 3,538,003 2,784,703
Charge for defined benefit plan 91,031 650,477
Security (including guards) 1,926,205 1,468,175
Contribution to defined contribution Plan 686,206 740,199
Repair and maintenance (including janitorial charges) 516,998 494,547
10.2 Rent & house maintenance 4,346,393 3,400,484
Depreciation 1,406,529 1,295,782
11 Utilities 2,316,942 1,809,795
Depreciation - right-of-use assets 2,520,644 2,336,379
14.3.2 Medical 1,585,784 1,299,792
Depreciation on non-banking assets acquired in satisfaction of claims 3,226 3,012
Conveyance 1,944,806 1,481,110
Others 41,935 47,972
12,195,653 10,324,489 Group assurance premium 127,495 110,849
Information technology expenses Others 19,894 47,219
Software maintenance 3,818,763 3,021,763 Sub-total 38,723,835 26,646,661
Hardware maintenance 552,685 1,116,217 Sign-on bonus 44,700 20,000
Depreciation 10.2 1,914,815 1,482,954 Severance allowance 130,775 317,057
Amortisation 12.1 1,022,553 1,085,264 Grand Total 38,899,310 26,983,718
Network charges 1,098,339 1,053,202
Number of persons
Consultancy charges 504,872 305,965
8,912,027 8,065,365 Awards 21 1
Other operating expenses Severance allowance 13 119
Legal and professional charges 801,994 1,704,965
Commission paid to branchless banking agents 577,308 316,786 32.2 Total outsourced activities is Rs. 3,803.008 million (2023: Rs. 2,776.893 million). This includes outsourced service costs of Rs.
2,729.108 million (2023: Rs. 1,964.335 million), disclosed as seperate line item in note 32. Out of total outsource cost, Rs.
Commission paid to sales force 5,055,630 2,182,164
3,521.182 million (2023: Rs. 2,452.374 million) pertains to the payment to companies incorporated in Pakistan and Rs. 281.826
Outsourced service costs 32.2 2,729,108 1,964,335 million (2023: Rs. 324.518 million) pertains to payment to companies incorporated outside Pakistan.Total cost of outsourced
Travelling and conveyance 315,123 311,194 activities for the year given to related parties is Nil (2023: Nil).
Clearing charges 362,669 282,571
Depreciation 10.2 2,527,874 1,745,848
The material outsourcing arrangements along with their nature of services are as follows:

Depreciation on Islamic financing against leased assets 79,527 135,236

Name of service provider Type of service 2024 2023
Training and development 209,138 191,600 ------- (Rupees in '000) -------
Postage and courier charges 504,982 364,494
TCS (Private) Limited Statement of account printing and dispatching 131,610 123,303
Communication 309,012 308,144
Paradise Press (Private) Limited Cheque book printing services 235,483 104,031
Stationery and printing 2,206,558 1,560,179
Apex Printry (Private) Limited Cheque book printing services 145,096 136,385
Marketing, advertisement and publicity 4,395,879 1,238,425
Printlink Cheque book printing services 103,540 123,586
Donations 32.3 206,064 62,820
ASC First Solution (Private) Limited Storage and digital archiving services 6,491 6,349
Auditors' remuneration 32.4 154,746 229,971
Raaziq International Storage and digital archiving services 56,054 50,958
Insurance 149,516 164,816
Phoenix Armour (Pvt) Limited Cash Replenishment - 20,922
Deposit protection premium expense 2,202,917 1,879,217
Askari Guards (Pvt) Limited Cash Replenishment 47,215 33,694
Cash transportation and sorting charges 1,265,657 1,107,921
Security Organizing Services Cash Replenishment 22,256 -
Entertainment 455,065 301,461
Qadri Enterprises Key Punch 24,950 21,305
Vehicle expenses 612,002 271,382
CMS Company Cash Management Services 224,050 91,364
Subscription 58,866 287,396
Transguard Group Cash Management Services 23,144 30,697
Office running expenses 425,014 301,148
Back Office FZ LLC Record Management 27,894 50,158
Banking service charges 7,342,337 5,256,387
Infofort Record Management 9,948 10,183
Repairs and maintenance 2,654,280 1,648,790
Cartage, freight and conveyance 87,850 70,579 Electronic Document Center Printing Services 7,450 3,218

Miscellaneous expenses 1,408,152 832,295 National Printing Press Printing Services 8,719 6,405
37,097,268 24,720,124 1,073,900 812,558
97,104,258 70,093,696

238 United Bank Limited 52 Annual Report 2024 239

53
Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
Notes to and forming part of the Consolidated Financial Statements
For the
FOR THE year
YEAR ended
ENDED DECEMBERDecember
31, 2024 31, 2024 For the
NOTES year
TO AND ended
FORMING December
PART OF 31, 2024
THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024

32.3 Details of donations 2024 2023 32.5 This includes expense in respect of short term leases and low value assets not included in lease liabilities amounting to Rs.
------- (Rupees in '000) ------- 24.769 million (2023: Rs. 52.349 million) and Rs. 0.001 million (2023: Rs. 0.001 million) respectively.

Dr. Ruth K.M. Pfau Civil Hospital 10,000 10,000 33. WORKERS' WELFARE FUND
Saylani Welfare International Trust 10,960 10,000
The provision has been made for Provincial Workers’ Welfare Fund based on profit for the year. The chargeability of WWF has
Habib University - 9,950 been challenged before the Court and the matter is still pending.
Indus Hospital 50,000 9,600 Note 2024 2023
Institute of Business Administration - 7,387 34. OTHER CHARGES ------- (Rupees in '000) -------
Patients Aid Foundation 8,900 5,370
Penalties imposed by the SBP 43,527 240,111
Sindh Institute of Urology & Transplantation (SIUT) - 2,188 Penalties imposed by other regulatory bodies of overseas branches 31,743 215
Kiran Foundation 10,000 2,186 75,270 240,326
Layton Rahmatullah Benevolent Trust 10,000 2,139 35. CREDIT LOSS ALLOWANCE & WRITE OFFS - NET
Million Smiles Foundation - 2,000
Credit loss allowance/ Reversal of provision against loans and advances 9.6 11,253,648 (4,893,500)
3,000 2,000 (249,542) 6,110,045
SOS Children's Village Credit loss allowance/ Provision for dimunition in value of investments 8.3.3
Marie Adelaide Leprosy Center 2,000 - Bad debts written off directly 9.8.1 54,951 149,845
Family Educational Services Foundation 3,600 - Credit loss allowance/ Provision against other assets - net 14.4.1 476,252 (29,016)
Credit loss allowance/ Reversal of provision against off-balance sheet obligations - net 21.1 1,303,408 (29,304)
Alkhidmat Foundation 10,000 -
Recoveries against written off / charged off bad debts (422,754) (477,345)
Education Trust Nasra Schools 2,500 - Credit loss allowance against cash and balances with treasury bank 199,497 -
The Hunar Foundation 5,000 - Other provisions / write-offs 160,014 149,432
Developments in Literacy (DIL) 1,000 - 12,775,474 980,157
Namal Education Foundation 10,000 - 36. TAXATION
Afzaal Memorial Thalassemia Foundation 5,000 - Current 86,082,545 53,369,638
National Institute of Child Health through OAKS 3,000 - Prior years (11,632,554) 2,008,969
1,000 - Deferred (4,251,986) (1,264,963)
Karachi Down Syndrome Program
70,198,005 54,113,644
Shaukat Khanum Memorial Cancer Hospital 50,000 -
10,000 - 36.1 Relationship between tax expense and accounting profit
Cancer Foundation Hospital / Roche Pakistan
Donations individually not exceeding Rs. 0.5 million 104 -
Accounting profit for the year 145,036,839 110,584,565
206,064 62,820
Tax on income @ 44% (2023: 39%) 63,816,209 43,127,980
Super tax @ 10% (2023 : 10%) 15,019,165 10,811,807
32.4 Auditors' remuneration
Prior year charge (11,632,554) 2,008,969
Tax effect of permanent differences 39,893 117,760
Bank
Impact of different tax rates of subsidiaries (permanent differences) (416,407) (983,885)
Audit fee 19,440 15,660 Others 3,371,699 (968,987)
Fee for other statutory certifications 20,520 23,145 Tax charge 70,198,005 54,113,644
Fee for audit of foreign branches 84,875 80,310
Special certifications and sundry advisory services 17,280 3,240
Out of pocket expenses 9,129 37. Discontinued Operation - United National Bank Limited (UNBL UK)
9,215
151,330 131,484
Subsidiaries The transaction for the sale of United National Bank Limited (UNBL UK) was approved by the shareholders’ of United Bank
Limited (UBL) in the 65th Annual General Meeting held on March 18, 2024. Subsequently, the Bank entered into a Share
Audit fee 2,823 97,244
Purchase Agreement (SPA) with Bestway Group FS Limited for divestment of its 50.1% shareholding in United National Bank
Fee for other statutory certifications 507 76 Limited (UNBL UK) at an aggregate price of GBP 25.495 million equal to Rs. 9.053 billion. Prior to this transaction, the Bank held
Out of pocket expenses 86 1,167 55% shareholding in UNBL UK.
3,416 98,487
154,746 229,971 The Change in Control Notice of Approval from the Prudential Regulatory Authority of the Bank of England was received on July
01, 2024 after which UNBL UK ceased to be treated as a subsidiary of the Bank and the transaction was subsequently concluded
on July 05, 2024. The Bank continues to hold 4.9% shareholding in UNBL UK and it's treated as an unlisted equity investment in
the consolidated financial statements.

Bestway Group FS Limited continues to hold an option for acquisition of the remaing 4.9% at the same price for 36 months from
the date of approval.

54
240 United Bank Limited Annual Report 2024 241
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
Notes to and forming part of the Consolidated Financial Statements
FOR THE YEAR ENDED DECEMBER 31, 2024
Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024
For the year ended December 31, 2024 For the year ended December 31, 2024
An analysis of assets and liabilities attributable to discontinued operation as at the disposal date is as follows:
Financial performance of the discontinued operation till the date of disposal is as follows:
As of July 01,
2024
(Rupees in For the period
ASSETS: January 01 to
'000)
July 01, 2024

Cash and balances with treasury banks 41,173 (Rupees in

Balances with other banks 1,755,777 '000)
Lendings to financial institutions Mark-up / return / interest earned 9,400,835
883,266
Investments - net Mark-up / return / interest expensed 5,873,124
43,815,778
Advances - net Net mark-up / interest income 3,527,711
309,324,399
Property and equipment 10,935,391
Right-of-use assets Non mark-up / interest income
11,151
Intangible assets Fee and commission income 410,167
74,422
Other assets Foreign exchange income 54,377
786,086
Gain on securities - net 45,657
367,627,443
Other income 28,402
LIABILITIES: Total non mark-up / interest income 538,603
Total income 4,066,314
Bills payable 11,588
Deposits and other accounts 329,796,948
Non mark-up / interest expenses 2,388,936
Deferred tax liability 209,622
Lease liabilities 14,965
Profit before credit loss allowance 1,677,378
Other liabilities 2,949,618
Credit loss allowance and write-offs - net 4,854
332,982,741
Net assets attributable to discontinued operations 34,644,702 Profit before taxation 1,672,524
Taxation 324,763
Attributable to:
Profit after taxation 1,347,761
- equity holders of the Bank 19,054,586
- non-controlling interest 15,590,116 Loss on disposal attributable to equity holders due to adjustment to carrying value (409,151)

Profit after taxation before carrying value adjustment

Loss on disposal of subsidiary attributable to equity holders Attributable to equity holders 741,269
Net assets derecognised (19,054,586) Attributable to NCI 606,492
Less: proceeds for 50.1% shareholding disposed 9,053,274 1,347,761

Recognition of retained share of 4.9% at fair value 885,450 Profit after taxation after carrying value adjustment
9,938,724 Equity holder 332,118
(9,115,862) NCI 606,492
Transfer of exchange translation reserve to profit and loss on derecognition 8,706,711 938,610
Net loss (409,151)

242 United Bank Limited Annual Report 2024 243

56
Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
For TO
NOTES the
ANDyear ended
FORMING December
PART OF THE 31, 2024
CONSOLIDATED FINANCIAL STATEMENTS For the
NOTES year
TO AND ended
FORMING December
PART OF 31, FINANCIAL
THE CONSOLIDATED 2024 STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 FOR THE YEAR ENDED DECEMBER 31, 2024

2024 2023 41.1.2 Pension Fund

38. EARNINGS PER SHARE ------- (Rupees in '000) -------

Profit after tax attributable to equity shareholders of the Bank 75,155,853 55,145,075 The Bank operates a funded pension scheme established in 1975. The Pension Scheme was introduced on 1st January 1975
for Clerical and Non-Clerical employees and on the 1st May 1977 for Officers. Those in service at these dates were given an
----- (Number of shares) ----- option to join the Pension Scheme or stay in the Bank's old gratuity scheme.
Weighted average number of ordinary shares 1,224,179,687 1,224,179,687
41.1.3 Gratuity scheme
------------ (Rupees) ------------

Basic and diluted earnings per share 61.39 45.05 The Bank also operates a funded gratuity scheme for new employees and for those employees who have not opted for the
pension scheme.
There were no convertible dilutive potential ordinary shares outstanding as at December 31, 2024 and 2023.
41.1.4 Benevolent fund scheme
Note 2024 2023
------- (Rupees in '000) -------
The Bank also operates a funded benevolent fund scheme which covers all regular employees of the Bank who joined the Bank
39. CASH AND CASH EQUIVALENTS
pre-privatisation. Under this scheme, a fixed monthly subscription is made by employees by way of a salary deduction.
Cash and balances with treasury banks 5 310,836,376 277,355,760 Employees covered under this scheme, are entitled to receive benevolent grants on death, disability, retirement and other
Balances with other banks 6 59,968,246 33,430,371 contingencies as monthly grant payment or one-time payment subject to certain conditions as specified in the rules of the fund.
370,804,622 310,786,131
39.1 Reconciliation of movement of liabilities to cash flows arising from financing activities 41.1.5 Post-retirement medical benefits
2024 2023
The Bank also provides a non-funded post retirement medical benefits to eligible retired employees. The post-retirement
medical scheme cover all regular employees of the Bank who joined the Bank pre-privatisation.
Lease liability Lease liability
Dividends Unappro- Unappro-
against right- against right- Dividends payable
payable priated profit priated profit 41.1.6 Compensated absences
of-use assets of-use assets

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

The Bank maintains a non-funded scheme for compensated absences.

41.1.7 Other schemes

Balance as at January 01, 10,474,561 727,315 97,379,056 9,614,922 8,547,733 96,282,169

Changes from financing cash flows Employee benefit schemes offered by the Bank’s overseas branches are governed by the laws of the respective countries in
Payment of lease liability which the branches operate.
against right-of-use assets (3,623,173) - - (3,346,856) - -
Dividend paid - (53,825,508) - - (59,235,966) - 41.2 Number of Employees under the scheme
Total changes from financing
cash flows (3,623,173) (53,825,508) - (3,346,856) (59,235,966) - The number of employees covered under the following defined benefit schemes are:
2024 2023
Other Changes
------------ (Number) ------------
- Liability related
Cash dividend - 53,863,908 (53,863,908) - 51,415,548 (51,415,548)
- Pension fund 371 447
Interest expense on lease liability
1,504,645 - - 1,236,242 - -
- Gratuity fund 17,128 12,982
against right-of-use assets
Non-cash based 4,024,985 - - 2,970,253 - - - Post-retirement medical benefit scheme 490 589
Total other changes 5,529,630 53,863,908 (53,863,908) 4,206,495 51,415,548 (51,415,548) - Benevolent fund 552 667
- Employee compensated absences 567 667
- Equity related - - 72,956,903 - - 52,512,435
In addition to above active employees, pension fund, benevolent fund and post-retirement medical benefit schemes include
Balance as at December 31, 12,381,018 765,715 116,472,051 10,474,561 727,315 97,379,056
5,961 (2023: 6,799), 1,163 (2023: 1,583) and 7,787 (2023: 7,688) members respectively who have retired or whose widows and
other beneficiaries are receiving the benefits.
40. STAFF STRENGTH 2024 2023
Domestic Overseas Total Domestic Overseas Total 41.3 Principal actuarial assumptions
------------------------------------------------------------ (Number of employees) ------------------------------------------------------------
Note
The actuarial valuations were carried out as at December 31, 2024 using Projected Unit Credit Method. The following significant
Permanent 18,135 337 18,472 13,679 272 13,951
assumptions were used for the valuation:
On contract 1,677 6 1,683 57 13 70
Group's own staff strength 19,812 343 20,155 13,736 285 14,021 2024 2023
Outsourced 40.1 226 20 246 1,263 13 1,276
---------- Per annum ----------
Total 20,038 363 20,401 14,999 298 15,297

This excludes employees of outsourced services companies assigned to the Group to perform services of security guards, admin and janitorial
Discount rate 12.25% 15.50%
40.1
staff. Expected rate of salary increase 10.25% 13.50%
Expected rate of increase in pension 5.00% 5.00%
41. DEFINED BENEFIT PLANS Expected rate of increase in medical benefit 6.25% 9.50%
Expected rate of return on plan assets 12.25% 15.50%
41.1 The Bank (Holding Company)
41.1.1 General description

The Bank operates the following schemes:

244 United Bank Limited Annual Report 2024 245

58
Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024
For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024 For the year ended December 31, 2024

41.6 Movement in fair value 2024 2023

41.4 Pension, gratuity, benevolent fund schemes and other benefits
of plan assets Benevolent
Pension fund Gratuity fund Pension fund Gratuity fund Benevolent fund
fund
41.4.1 The fair value of plan assets and the present value of defined benefit obligations of these schemes as at December 31, 2024 are
as follows: ------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------
Fair value at the beginning of the year 11,929,445 1,652,156 306,766 10,439,543 1,348,276 300,571
Interest income on plan assets 1,780,969 261,838 43,154 1,443,915 200,013 39,523
Note 2024 Contribution by the Bank (1,169,284) 147,337 736 (6,829) 266,071 929
Post-retirement Contribution by the employees - - 736 - - 929
Pension fund Gratuity fund Benevolent fund (841,332) (266,092) (31,091) (1,002,592) (267,752) (53,212)
medical benefit Amount paid by the fund to the Bank
Remeasurement gains / (losses) 9,160,340 614,442 111,667 1,055,408 105,548 18,026
------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------
Fair value at the end of the year 20,860,138 2,409,681 431,968 11,929,445 1,652,156 306,766

Present value of defined benefit obligations (8,553,357) (1,982,123) (159,458) (2,921,465)

Fair value of plan assets 20,860,138 2,409,681 431,968 - 41.7 Movement in (payable) / receivable Note 2024
Receivable / (payable) 14 & 21.2 12,306,781 427,558 272,510 (2,921,465) under defined benefit schemes Post-retirement
Pension fund Gratuity fund Benevolent fund
medical benefit
------------------------------------------------------------------------ (Rupees in '000) --------------------------------------------------------------
2023
Post- Opening balance 4,442,506 37,991 113,455 (2,590,351)
Gratuity Benevolent
Pension fund retirement Adjustment for mark-up 70,356 2,060 362 -
fund fund
medical benefit (Charge) / reversal for the year 683,934 (250,595) 15,276 (389,920)
------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------ Contribution by the Bank (1,169,284) 147,337 736 -
Amount paid by the Fund to the Bank (841,332) (266,092) (31,091) -
Present value of defined benefit obligations (7,486,939) (1,614,165) (193,311) (2,590,351) Benefits paid by the Bank 931,396 236,894 30,728 156,606
Fair value of plan assets 11,929,445 1,652,156 306,766 - Re-measurement gains 8,189,205 519,963 143,044 (97,800)
Receivable / (payable) 4,442,506 37,991 113,455 (2,590,351) Closing balance 12,306,781 427,558 272,510 (2,921,465)

-
41.5 Movement in present value of defined 2024 2023
benefit obligations Post- Post-retirement
Gratuity Benevolent Pension fund Gratuity fund Benevolent fund
Pension fund retirement medical benefit
fund fund ------------------------------------------------------------------------ (Rupees in '000) --------------------------------------------------------------
medical benefit
------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------
Opening balance 2,452,600 (37,824) 65,368 (2,628,679)
Adjustment for mark-up 8,380 2,129 777 -
Obligations at the beginning of the year 7,486,939 1,614,165 193,311 2,590,351
(Charge) / reversal for the year 357,549 (226,539) 7,342 (370,803)
Current service cost 7,256 256,074 1,823 288
Contribution by the Bank (6,829) 266,071 929 -
Interest cost 1,016,269 256,359 26,791 389,632
Amount paid by the Fund to the Bank (1,002,592) (267,752) (53,212) -
Benefits paid by the Bank (931,396) (236,894) (30,728) (156,606)
Benefits paid by the Bank 984,419 263,320 46,028 134,437
Return allocated to other funds 40.8.1.1 73,510 - - - Remeasurement (losses) / gains 1,648,979 38,586 46,223 274,694
Remeasurement (gains) / losses 900,779 92,419 (31,739) 97,800 Closing balance 4,442,506 37,991 113,455 (2,590,351)
Obligations at the end of the year 8,553,357 1,982,123 159,458 2,921,465

41.8 Charge for defined benefit plans

2023
Post- 41.8.1 Cost recognised in profit and loss 2024
Gratuity Benevolent
Pension fund retirement Gratuity Benevolent Post-
fund fund Pension fund
medical benefit fund fund retirement
------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------ ------------------------------------------------------------------------ (Rupees in '000) -----------------------------------------------------
Current service cost 40.5 7,256 256,074 1,823 288
Obligations at the beginning of the year 7,986,943 1,386,100 235,203 2,628,679 Past service cost - - - -
Current service cost 24,202 221,414 2,445 383 Net interest on defined benefit (asset) / liability (764,700) (5,479) (16,363) 389,632
Interest cost 1,003,809 205,138 30,665 370,420 Return allocated to other funds 40.8.1.1 73,510 - - -
Benefits paid by the Bank (984,419) (263,320) (46,028) (134,437) Employees' contribution - - (736) -
Return allocated to other funds 40.8.1.1 58,355 - - - (683,934) 250,595 (15,276) 389,920
Remeasurement (gains) / losses (601,951) 64,833 (28,974) (274,694)
Obligations at the end of the year 7,486,939 1,614,165 193,311 2,590,351

246 United Bank Limited Annual Report 2024 247

61
Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
For the
NOTES year
TO AND ended
FORMING December
PART OF 31, FINANCIAL
THE CONSOLIDATED 2024 STATEMENTS For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

Note 2023 41.9.1 The Funds invests in Government Securities and accordingly do not carry any significant credit risk. These are subject to
interest rate risk based on market movements. Investment in non-government securities are subject to credit risk and interest
Gratuity Benevolent Post retirement
Pension fund rate risks, while equity securities are subject to price risk. These risks are regularly monitored by Trustees of the employee
fund fund medical benefit funds.
------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------
Current service cost 40.5 24,202 221,414 2,445 383 41.10 Sensitivity analysis
Past service cost - - - - Sensitivity analysis has been performed by varying one assumption keeping all other assumptions constant and calculating the
Net interest on defined benefit (asset) / liability (440,106) 5,125 (8,858) 370,420 impact on the present value of the defined benefit obligations under the various employee benefit schemes. The increase /
Return allocated to other funds 40.8.1.1 58,355 - - - (decrease) in the present value of defined benefit obligations as a result of change in each assumption is summarised below:
Employees' contribution - - (929) - 2024
(357,549) 226,539 (7,342) 370,803
Post retirement
Pension fund Gratuity fund Benevolent fund
medical benefit
41.8.1.1 This represents return allocated to those employees who exercised the conversion option offered in the year 2001, as referred to
in note 4.15. -------------------------------------------------- (Rupees in '000) ----------------------------------------------

Increase in discount rate by 1 % (564,257) (129,422) (5,566) (276,459)

41.8.2 Re-measurements recognised in OCI during the year
Decrease in discount rate by 1 % 646,909 147,174 6,062 332,766
2024 Increase in expected future increment in salary by 1% - 158,228 909 -
Decrease in expected future increment in salary by 1% - (141,159) (877) -
Post-retirement
Pension fund Gratuity fund Benevolent fund Increase in expected future increment in pension by 1% 672,731 - - -
medical benefit
------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------ Decrease in expected future increment in pension by 1% (593,692) - - -
Increase in expected future increment in medical benefit by 1% - - - 321,954
Losses / (gains) on obligation Decrease in expected future increment in medical benefit by 1% - - - (273,318)
- Financial assumptions 1,597,769 (37,039) 16,578 18,927
- Experience adjustments (696,990) 129,458 (48,317) 78,873 41.11 Expected contributions to be paid to the funds in the next financial year
Return on plan assets over interest income (9,160,340) (614,442) (111,667) - The Bank contributes to the pension and gratuity funds according to the actuary's advice. Contribution to the benevolent fund is
Adjustment for mark-up 70,356 2,060 362 - made by the Bank as per the rates set out in the benevolent fund scheme. Based on actuarial advice, management estimates
Total re-measurements recognised in OCI (8,189,205) (519,963) (143,044) 97,800 that the expected contribution and charge / (reversal) for the year ending December 31, 2025 would be as follows:

2023 2025
Post-retirement Post retirement
Pension fund Gratuity fund Benevolent fund Pension fund Gratuity fund Benevolent fund
medical benefit medical benefit
------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------ -------------------------------------------------- (Rupees in '000) ----------------------------------------------

Losses / (gains) on obligation Expected contribution - - 662 -

- Financial assumptions Expected charge / (reversals) for the year (1,502,447) 292,864 (30,525) 347,145
(462,000) 9,079 (6,823) 2,367
- Experience adjustments (139,951) 55,754 (22,151) (277,061) 41.12 Maturity profile 2024
Return on plan assets over interest income (1,055,408) (105,548) (18,026) - Post retirement
Pension fund Gratuity fund Benevolent fund
Adjustment for mark-up 8,380 2,129 777 - medical benefit
Total re-measurements recognised in OCI (1,648,979) (38,586) (46,223) (274,694) The weighted average duration of the obligation (in years) 7.45 6.95 2.82 9.46

Re-measurements recongnised in OCI during the year pertaining to other schemes as disclosed in note 41.1.7 is Rs. 51.289 41.13 Funding Policy
million (2023: Rs. 43.683 million).
The Bank endeavours to ensure that liabilities under the various employee benefit schemes are covered by the Fund on any
41.9 Components of fair value of plan assets valuation date, based on various actuarial assumptions.
2024 2023 41.14 The significant risks associated with the staff retirement benefit schemes are as follows:
Pension Gratuity Benevolent Pension Benevolent Asset Volatility
Gratuity fund
fund fund fund fund fund
-------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------- The risk arises due to inclusion of risky assets in the funds portfolio, inflation, interest rate volatility and change in price.
Cash and cash equivalents - net 67,218 46,578 3,880 59,992 47,923 3,921 Changes in Bond Yields
Ordinary shares 19,980,648 1,086,895 229,043 6,814,050 505,699 106,568 The risk arises when bond yield is lower than the expected return on the planned assets (duration based PIB discount rate).
Non-Government debt securities 812,272 1,077,785 12,239 1,873,198 23,481 12,969
Mutual funds units - - - - - - Price Risk
Pakistan Investment Bonds - 54,123 154,606 2,926,505 999,397 171,808
The risk arises when there is volatility in market price of the equity instrument invested by Funds.
Market Treasury Bills - - - - 1,256 -
National Saving Certificates / Bonds - - 32,200 - - - Inflation Risk
Certificate of Investments - - - - - 11,500 The salary inflation is the major risk that the Gratuity and Compensated Absences liability carries. In pension fund the increase
Repurchase Agreements - 144,300 - 255,700 74,400 - has been determined by the Supreme Court and does not carry this risk as the benefit is practically no longer exposed to future
20,860,138 2,409,681 431,968 11,929,445 1,652,156 306,766 salary increases. Some of the post-retirement medical benefits are capped to a proportion of Pension, thus carrying no salary
inflation risk. However, the hospitalisation benefit is susceptible to medical inflation risk.

248 United Bank Limited Annual Report 2024 249

63
Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
For
NOTESthe year
TO AND ended
FORMING December
PART OF 31, FINANCIAL
THE CONSOLIDATED 2024 STATEMENTS For the
NOTES year
TO AND ended
FORMING PART OFDecember 31,FINANCIAL
THE CONSOLIDATED 2024 STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 FOR THE YEAR ENDED DECEMBER 31, 2024

Withdrawal Risk 2024 2023

------- (Rupees in '000) -------
Withdrawal risks is the risk of higher or lower withdrawal experience than assumed. The final effect could go either way depending 41.15.4 Movement in present value of defined benefit obligation
on the beneficiaries’ service/age distribution and the benefit.
Obligation at the beginning of the year 123,804 103,799
Other Risks Current service cost 20,783 18,694
Interest cost 19,989 15,774
Though, not imminent and generally observable, over long term there are some risks that may crystallise. These include: Benefits paid (32,038) (7,418)
Remeasurement gain 886 (7,045)
- Retention Risk – The risk that employee will not be motivated to continue the service or start working with the Bank if no Obligation at the end of the year 133,424 123,804
market comparable retirement benefit is provided.
41.15.5 Movement in the fair value of plan assets ------- (Rupees in '000) -------
- Final Salary Risk – The risk, for defined benefit gratuity, that any disproportionate salary merit increases in later service years
will give rise to a multiplicative increase in the gratuity liability as such increase is applicable to all the past years of service. Fair value of plan assets at the beginning of the year 138,323 96,150
Interest income on plan assets 21,709 14,375
- Model Risk – The defined benefit gratuity liability is valued by actuary each year. Further, the assets in the Fund are also Contributions to the plan 32,321 20,093
marked to market. This two-tier valuation gives rise to the model risk. Benefits paid (32,038) (7,418)
Remeasurement gain / (loss) 21,321 15,123
- Operational Risk related to a separate entity - Retirement benefits are funded through a separate trust fund which is a 181,636 138,323
Fair value of plan assets at the end of the year
different legal entity than the Bank. Generally, the protocols, processes, and conventions used throughout the Bank are not
applicable or are not actively applied to the retirement benefit Funds. This gives rise to some specific operational risks.
41.15.6 Composition of plan assets
- Compliance Risk – The risk that retirement benefits offered by the Bank do not comply with minimum statutory requirements.
Cash and cash equivalents - net 26,499 1,184
Debt securities 100,184 94,054
- Legal / Political Risk – The risk that the legal / political environment changes and as a result, the Bank is required to offer
Mutual funds units - 7,893
additional or different retirement benefits than what the Bank projected. Specifically, in the light of recent Supreme Court
decisions, this risk has materialised. Ordinary shares 51,415 32,919
178,098 136,050
41.15.7 Charge for defined benefit plan
41.15 UBL Fund Managers Limited

41.15.1 Principal actuarial assumptions Current service cost 20,783 18,694

Interest cost 19,989 15,774
UBL FM operates an approved funded gratuity scheme for all its permanent employees. The benefits under the gratuity scheme are Interest income on plan assets (21,709) (14,375)
payable on retirement at the age of 60 years or earlier cessation of service in lump sum. The benefit is equal to one month's last 19,063 20,093
drawn basic salary for each year of eligible service. The minimum qualifying eligible service for gratuity is 3 years for employees
Actual return on plan assets 21,709 14,375
and executives. The latest actuarial valuation of the subsidiary's defined benefit plan, based on Projected Unit Credit Actuarial Cost
Method, was carried out as at December 31, 2024. The main assumptions used in the actuarial valuation are as follows:
41.15.8 Maturity profile and expected future contribution

2024 2023 Based on actuarial advice, management estimates that the expected charge for the year ending December 31, 2025, would be
---------- Per annum ---------- Rs.19.118 million respectively. The weighted average duration of the obligation as of December 31, 2024, is 8.99 years.

Discount rate 12.25% 15.50% 41.15.9 Sensitivity Analysis

Expected rate of salary increase 20.00% 15.50%
Sensitivity analysis has been performed by varying one assumption keeping all other assumptions constant and calculating the
41.15.2 The fair value of plan assets and the present value of defined benefit obligations of these scheme as at December 31, 2023 is as impact on the present value of the defined benefit obligation under the defined benefit scheme. The increase / (decrease) in the
follows: present value of defined benefit obligation as a result of a change in each assumption is summarised below:

2024 2023 2024

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

Present value of obligations (133,424) (123,804) Increase in discount rate by 1 % 123,190

Fair value of plan assets 181,636 138,323 Decrease in discount rate by 1 % 145,131
Receivable / (payable) 48,212 14,519 Increase in salary increment rate by 1% 144,379
Decrease in salary increment rate by 1% 123,656
41.15.3 Movement in (payable) / receivable during the year
42 OTHER EMPLOYEE BENEFITS
Payable at the beginning of the year 14,519 (7,649)
Current service cost (20,783) (18,694) 42.1 Defined contribution plan
Net interest expense 1,720 (1,399)
Employer contribution 32,321 20,093 The Bank operates a contributory provident fund scheme for 17,128 (2023: 12,982) employees who are not in the pension scheme.
Remeasurement gain / (loss) 20,435 22,168 The employer and employee each contribute 8.33% of the basic salary to the funded scheme every month.
Payable at the end of the year 48,212 14,519
UBL FM operates a contributory provident fund scheme. The employer and employee each contribute 10% of the basic salary to
the funded scheme every month.

250 United Bank Limited Annual Report 2024 251

65
Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
For the
NOTES year
TO AND ended
FORMING December
PART OF 31, 2024
THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

42.2 Employee Stock Option Scheme 43.2 Remuneration paid to Directors for participation in Board and Committee Meetings

2024
UBL Fund Managers has an incentive scheme for its top performing employees in the form of share options under the policy of Meeting Fees and Allowances Paid
Employee Stock Option Scheme (ESOS). The options give a right to subscribe ordinary shares of the Company to the extent of For Board Committees
the lower of two million shares or five percent of the share capital of the company as of the grant date. The scheme is divided Board Human
into three phases and options are exercisable at their respective exercise price determined from time to time according to Sr. Board Risk & Board Board
Name of Director For Board Board Audit Resource & Board IT Total
No. Compliance Nomination International
methodology provided in approved scheme. Each phase give a right to eligible employees to acquire options after a vesting Meetings Committee Compensation Committee Allowance Amount
Committee Committee Committee
period of two years, in two tranches i.e. 50% of the vested options are exercisable upon completion of vesting period, while (BAC) Committee (BITC) Paid
(BRCC) (BNC) (BIC)
remaining 50% can be exercised after one year. The last phase was completed in 2016 in which 18,121 shares were issued (HRCC)
pursuant to exercise of the share options. ---------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------
1 Sir Mohammed Anwar Pervez, OBE, HPk 4,800 - 2,400 - - 960 2,400 300 10,860
43. COMPENSATION OF DIRECTORS AND KEY MANAGEMENT PERSONNEL 2 Lord Zameer M. Choudrey, CBE, SI Pk 4,800 - 3,200 3,200 - 800 4,000 450 16,450
3 The Honorable Haider Zameer Choudrey 4,800 3,200 - - 3,840 800 3,200 350 16,190
43.1 Total Compensation Expense 4 Mr. Rizwan Pervez 4,800 3,200 - - 3,200 - 3,200 450 14,850
5 Mr. Daniel Michael Howlett 4,800 - - 3,840 3,200 - 3,200 - 15,040
2024
6 Ms. Shazia Syed 4,800 3,840 3,200 - - - 3,200 - 15,040
Directors 7 Mr. Tariq Rashid 4,800 3,200 3,840 - - - 3,200 - 15,040
Members Key Other Material
Executives President / 8 Mr. Muhammad Irfan A.sheikh 4,800 - - 3,200 3,200 - 3,200 - 14,400
Items Non- Shariah Management Risk Takers/ Total Amount Paid 38,400 13,440 12,640 10,240 13,440 2,560 25,600 1,550 117,870
Chairman (other than CEO
Executives Board Personnel Controllers
CEO)
2023
------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------ Meeting Fees and Allowances Paid
Fees and Allowances etc. 10,860 - 107,010 12,973 - 3,425 - For Board Committees
Managerial Remuneration Board Human
i) Fixed Sr. Board Risk & Board Board Digital
- - - - 139,629 368,775 744,530 Name of Director For Board Board Audit Resource & Board IT Total
No. Compliance Nomination Banking
ii) Variable - Cash Bonus - - - - 48,000 358,410 505,039 Meetings Committee Compensation Committee Allowance Amount
Committee Committee Committee
Contribution to defined contribution plan - - - - 11,350 25,486 58,947 (BAC) Committee (BITC) Paid
(BRCC) (BNC) (BDC)
Charge for defined benefit plan - - - - 3,564 8,665 16,040 (HRCC)
Rent & house maintenance - - - - 4,800 145,718 258,136 ---------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------
Utilities - - - - - 64,238 111,192 1 Sir Mohammed Anwar Pervez, OBE, HPk 6,660 - 3,950 - - 1,710 800 550 13,670
Medical - - - - - 33,816 69,314 2 Lord Zameer M. Choudrey, CBE, SI Pk 5,550 - 1,600 3,150 1,550 1,550 800 600 14,800
Conveyance - - - - 6,251 127,163 153,753 3 The Honorable Haider Zameer Choudrey 5,550 3,150 - - 3,310 1,550 800 600 14,960
4 Mr. Rizwan Pervez 5,550 3,150 2,350 - 1,600 - 800 600 14,050
Others - - - - - 53,096 210,640
5 Mr. Daniel Michael Howlett 4,000 - - 1,920 1,600 - 960 - 8,480
Sub-Total 10,860 - 107,010 12,973 213,594 1,188,792 2,127,591 6 Ms. Shazia Syed 5,550 3,780 1,600 1,550 - - 800 - 13,280
Sign-on bonus - - - - - 2,800 - 7 Mr. Amar Zafar Khan* 1,550 - - - - - - - 1,550
Total 10,860 - 107,010 12,973 213,594 1,191,592 2,127,591 8 Mr. Tariq Rashid 5,550 800 4,740 - 2,820 - 800 - 14,710
9 Mr. Muhammad Irfan A.sheikh 3,200 800 - 1,600 800 - 800 - 7,200
Number of Persons 1 - 8 3 1 24 270
Total Amount Paid 43,160 11,680 14,240 8,220 11,680 4,810 6,560 2,350 102,700
2023
Directors 43.3 Remuneration paid to Shariah Board Members
Members Key Other Material 2024 2023
Executives President /
Items Non- Shariah Management Risk Takers/
Chairman (other than CEO Non- Non-
Executives Board Personnel Controllers Resident Resident
CEO) Items Chairman Resident Total Chairman Resident Total
Member Member
------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------ Member(s) Member(s)
Fees and Allowances etc. 13,670 - 89,030 12,641 - - -
Managerial Remuneration ---------------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------------------------
i) Fixed - - - - 149,916 607,984 1,186,323 Meeting Fees and Allowances 5,616 3,737 3,620 12,973 5,400 2,501 4,740 12,641
ii) Variable - Cash Bonus - - - - 158,895 308,198 342,240
Contribution to defined contribution plan - - - - 12,230 48,928 102,941 Tota 1 1 2 1 1 1
Charge for defined benefit plan - - - - 4,649 7,886 28,022 l
Rent & house maintenance - - - - 14,031 104,096 285,957 44. FAIR VALUE MEASUREMENTS
Utilities - - - - 2,393 45,484 123,425
Medical - - - - 319 27,402 81,515 The fair value of quoted securities other than those classified as held to maturity, is based on quoted market price. Quoted
Conveyance - - - - 9,564 79,284 246,704 securities classified as held to maturity are carried at cost. The fair value of unquoted equity securities, other than investments in
Others - - - - 34,572 33,892 149,272 associates, is determined on the basis of the break-up value of these investments as per their latest available audited financial
Sub-Total 13,670 - 89,030 12,641 386,569 1,263,154 2,546,399
statements.
Awards - - - - - 20,000 -
The fair value of unquoted debt securities, fixed term loans, other assets, other liabilities, fixed term deposits and borrowings
Total 13,670 - 89,030 12,641 386,569 1,283,154 2,546,399
cannot be calculated with sufficient reliability due to the absence of a current and active market for these assets and liabilities and
Number of Persons 1 - 8 3 2 33 193 reliable data regarding market rates for similar instruments.

The total amount of deferred bonus as at December 31, 2024 for the President / CEO, Key Management Personnel and other
Material Risk Takers (MRT) / Material Risk Controllers (MRC) is Rs. Rs. 363.459 million (2023: Rs. 443.554 million). The
deferred bonus is held in a trust fund.

252 United Bank Limited 66 Annual Report 2024 253

67
Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
NOTESthe
For TO AND FORMING
year PART OF
ended THE CONSOLIDATED
December FINANCIAL STATEMENTS
31, 2024 NOTES TO AND
For the FORMING
year PART OF
ended THE CONSOLIDATED
December FINANCIAL STATEMENTS
31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024 FOR THE YEAR ENDED DECEMBER 31, 2024

In the opinion of the management, the fair value of the remaining financial assets and liabilities are not significantly different 2024
from their carrying values since these are either short-term in nature or, in the case of customer loans and deposits, are Fair value
Carrying Value
frequently repriced. Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------------------- (Rupees in '000) -----------------------------------------------------------------------------------
44.1 The Group measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in Financial assets - disclosed but not measured at fair value
making the measurements: Investments
- Federal Government Securities 277,953,188 - 278,216,586 - 278,216,586
Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities. - Foreign Bonds - Market Treasury Bills 8,042,379 - 8,042,379 - 8,042,379
- Foreign Bonds - sovereign 15,796,704 - 14,949,083 - 14,949,083
Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the
- Foreign Bonds - others 1,466,872 - 1,348,952 - 1,348,952
assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
- Non-Government debt securities 19,339,444 - 19,556,848 - 19,556,848
322,598,587 - 322,113,848 - 322,113,848
Level 3: Fair value measurements using input for the asset or liability that are not based on observable market data (i.e.
5,883,270,111 21,404,561 5,861,380,811 - 5,882,785,372
unobservable inputs).
Off-balance sheet financial instruments - measured at fair value
The table below analyses financial instruments measured at the end of the reporting period by the level in the fair value Forward purchase and sale of foreign exchange contracts 582,473,911 - (222,176) - (222,176)
hierarchy into which the fair value measurement is categorised: FX options - purchased and sold (net) - - - - -
Forward purchase and sale of Government Securities 319,286,690 - 1,256,494 - 1,256,494
Item Valuation approach and input used
Federal Government securities The fair value of Federal Government securities is determined using the prices / rates 2023
available on Mutual Funds Association of Pakistan (MUFAP) / Bloomberg. Fair value
Carrying Value
Level 1 Level 2 Level 3 Total
Non-Government debt securities The fair value of other corporate and foreign government securities is determined using the ---------------------------------------------------------------------------------------------------- (Rupees in '000) -----------------------------------------------------------------------------------
prices / rates from MUFAP. On-balance sheet financial instruments

Financial assets measured at fair value

Foreign debt securities The fair value of foreign corporate and foreign government securities is determined using the Investments
rates from Bloomberg. - Federal Government Securities 3,883,185,846 3,883,185,846 - 3,883,185,846
- Foreign Bonds - Market Treasury Bills 67,785,996 67,785,996 - 67,785,996
Units of mutual fund The fair values of investments in units of mutual funds are determined based on their net asset - Foreign Bonds - sovereign 91,384,646 91,384,646 - 91,384,646
values as published at the close of each business day. - Foreign Bonds - others 10,329,301 10,329,301 - 10,329,301
- Ordinary shares of listed companies 10,765,935 10,765,935 - - 10,765,935
Forward foreign exchange contracts and Forward The fair values of forward foreign exchange contracts and forward Government securities - Non-Government debt securities 3,128,337 - 3,128,337 - 3,128,337
Government securities transactions are determined using forward pricing calculations. - Real Estate Investment Trust units 616,232 616,232 - - 616,232
transactions 4,067,196,293 11,382,167 4,055,814,126 - 4,067,196,293
Financial assets - disclosed but not measured at fair value
Derivatives The fair valuation techniques include forward pricing and swap models using present value Investments
calculations. - Federal Government Securities 303,809,670 - 303,809,670 - 303,809,670
- Foreign Bonds - Market Treasury Bills 15,875,336 - 15,875,336 - 15,875,336
Property and equipment and non-banking assets - Foreign Bonds - sovereign 20,187,556 - 20,187,556 - 20,187,556
Land, buildings and non-banking assets acquired in satisfaction of claims are revalued on a
- Foreign Bonds - others 1,494,294 - 1,494,294 - 1,494,294
acquired in satisfaction of claims periodic basis using professional valuers. The valuation is based on their assessment of the
- Non-Government debt securities 21,471,009 - 21,471,009 - 21,471,009
market value of the assets. The effect of changes in the unobservable inputs used in the
362,837,865 - 362,837,865 - 362,837,865
valuations cannot be determined with certainty. Accordingly, a qualitative disclosure of
4,430,034,158 11,382,167 4,418,651,991 - 4,430,034,158
sensitivity has not been presented in these consolidated financial statements.
Off-balance sheet financial instruments
Forward purchase and sale of foreign exchange contracts 572,110,279 - 1,671,729 - 1,671,729
44.2 Fair value of financial assets FX options - purchased and sold (net) 366,068 - - - -
Forward purchase of Government Securities 19,956,300 - 26,617 - 26,617
The following table provides the fair values of those of the Bank’s financial assets and liabilities that are recognised or
disclosed at fair value in these consolidated financial statements: 44.3 Fair Value of non-financial assets 2024
2024 Fair value
Carrying Value
Fair value Level 1 Level 2 Level 3 Total
Carrying Value
On-balance sheet financial instruments Level 1 Level 2 Level 3 Total ---------------------------------------------------------------------------------------------------- (Rupees in '000) -----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------------------------------
Property and equipment 60,922,041 - - 60,922,041 60,922,041
Financial assets measured at fair value
Non-banking assets acquired in satisfaction of claims 42,075 - - 42,075 42,075
Investments 60,964,116 - - 60,964,116 60,964,116
- Federal Government Securities 5,427,125,157 - 5,427,125,157 - 5,427,125,157
- Foreign Bonds - Market Treasury Bills 14,911,986 - 14,911,986 - 14,911,986 2023
- Foreign Bonds - sovereign 93,826,601 - 93,826,601 - 93,826,601 Fair value
Carrying Value
- Foreign Bonds - others 1,238,358 - 1,238,358 - 1,238,358 Level 1 Level 2 Level 3 Total
- Ordinary shares of listed companies 20,452,691 20,452,691 - - 20,452,691 ---------------------------------------------------------------------------------------------------- (Rupees in '000) -----------------------------------------------------------------------------------
- Non-Government debt securities 2,164,861 - 2,164,861 - 2,164,861
- Real Estate Investment Trust units 951,870 951,870 - 951,870 Property and equipment 61,722,714 - - 61,722,714 61,722,714
5,560,671,524 21,404,561 5,539,266,963 - 5,560,671,524 Non-banking assets acquired in satisfaction of claims 42,075 - - 42,075 42,075
61,764,789 - - 61,764,789 61,764,789

254 United Bank Limited Annual Report 2024 255

68
Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
For
NOTESthe year
TO AND ended
FORMING December
PART OF 31, 2024
THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024 NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024
44.4 Certain categories of property and equipment (land and buildings) and non-banking assets acquired in satisfactions of claims 2023
are carried at revalued amounts (level 3 measurement) determined by professional valuers based on their assessment of the Corporate /
Branch Islamic
International
market values. Commercial Treasury branch Subsidiaries Others Total
Banking Banking
Banking operations
------------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------------
45. SEGMENT INFORMATION
Balance Sheet
45.1 Segment details with respect to business activities Cash & Bank balances 11,358 91,058,816 101,463,285 27,886,564 86,963,694 3,402,414 - 310,786,131
Investments 12,055,059 3,829,744,363 - 331,496,374 199,730,588 54,043,558 8,680,928 4,435,750,870
2024
Net inter segment lending - - 1,501,428,974 - - - 146,476,492 1,647,905,466
Corporate / International
Branch Islamic Lendings to financial institutions
Commercial Treasury branch Subsidiaries Others Total - 21,947,852 - 12,500,000 - 4,868,418 - 39,316,270
Banking Banking
Banking operations Advances - performing 391,683,285 9,872 50,956,184 47,108,009 107,411,872 253,441,391 3,188,070 853,798,683
------------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------------ Advances - non-performing net of provision 2,710,229 - 614,905 79,176 9,792,924 5,034,015 11,000 18,242,249
Profit & Loss
Others 18,344,061 92,057,395 38,605,116 21,064,320 15,071,413 13,126,882 48,511,496 246,780,683
Net mark-up / return / profit 61,540,701 200,057,676 (146,184,327) 38,235,548 21,275,103 16,761 (1,393,581) 173,547,881 Total Assets 424,803,992 4,034,818,298 1,693,068,464 440,134,443 418,970,491 333,916,678 206,867,986 7,552,580,352
Inter segment (expense) / revenue - net (50,874,024) (247,139,518) 289,412,290 - - - 8,601,252 -
Borrowings 57,979,951 2,739,257,686 4,506,465 13,726,452 - 8,417,360 - 2,823,887,914
Non mark-up / return / interest income 8,343,496 46,721,140 10,400,341 2,147,707 11,890,673 3,381,149 1,705,209 84,589,715
Subordinated debt - - - - - - 10,000,000 10,000,000
Total Income 19,010,173 (360,702) 153,628,304 40,383,255 33,165,776 3,397,910 8,912,880 258,137,596
Deposits & other accounts 105,003,206 37,064 1,542,125,514 378,100,209 324,219,498 285,230,611 - 2,634,716,102
Segment direct expenses 1,903,390 664,029 55,082,933 8,171,042 7,860,993 2,359,758 24,283,138 100,325,283 Net inter segment borrowing 245,388,446 1,305,152,330 - - 97,364,690 - - 1,647,905,466
Inter segment expense allocation 402,004 913,915 9,608,813 - - (10,924,732) - Others 2,062,665 8,066,357 24,744,595 9,588,237 94,288,601 3,517,211 7,930,609 150,198,275
Total expenses 2,305,394 1,577,944 64,691,746 8,171,042 7,860,993 2,359,758 13,358,406 100,325,283
Total Liabilities 410,434,268 4,052,513,437 1,571,376,574 401,414,898 515,872,789 297,165,182 17,930,609 7,266,707,757
Credit loss allowance - net 2,671,196 221,697 (167,806) (8,250) 7,971,599 - 2,087,038 12,775,474
Equity 14,369,724 (17,695,139) 121,691,890 38,719,545 (96,902,298) 36,751,496 188,937,377 285,872,595
Profit / (loss) before tax 14,033,583 (2,160,343) 89,104,364 32,220,463 17,333,184 1,038,152 (6,532,564) 145,036,839
Total Equity & liabilities 424,803,992 4,034,818,298 1,693,068,464 440,134,443 418,970,491 333,916,678 206,867,986 7,552,580,352

Balance Sheet Contingencies and Commitments 666,470,042 317,073,549 36,229,803 6,642,138 288,041,327 42,251,714 749,649 1,357,458,222
Cash & Bank balances 29,906 99,428,160 64,494,602 44,862,676 160,898,813 1,090,465 - 370,804,622
Investments 10,156,363 5,613,070,387 - 119,366,357 140,744,551 4,350,495 2,077,688 5,889,765,841 45.2. Geographical segment analysis
Net inter segment lending - - 1,513,980,697 216,760,034 - - 63,438,769 1,794,179,500 2024
Lendings to financial institutions - 18,492,483 - - - - - 18,492,483 Export
Advances - performing net of credit loss allowance 912,361,408 2,238 57,221,149 147,626,192 316,182,001 - 1,996,657 Pakistan Middle East Europe Processing Total
1,435,389,645
Zones
Advances - non-performing net of credit loss allowance 1,328,491 - 298,848 260,774 6,204,186 - - 8,092,299
------------------------------------------------------------------------------------------------ (Rupees in '000) -----------------------------------------------------------------------
Others 24,878,319 138,388,839 51,935,147 81,332,932 11,129,453 2,004,998 36,882,699 346,552,387 Profit & Loss
Total Assets 948,754,487 5,869,382,107 1,687,930,443 610,208,965 635,159,004 7,445,958 104,395,813 9,863,276,777
Net mark-up / return / profit 152,272,778 20,361,920 - 913,183 173,547,881
Borrowings 46,800,297 4,767,131,383 5,583,815 8,003,110 27,854,911 - - Non mark-up / return / interest income 72,699,042 12,274,293 - (383,620) 84,589,715
4,855,373,516
Subordinated debt - - - - - - 10,000,000 Total Income 224,971,820 32,636,213 - 529,563 258,137,596
10,000,000
Deposits & other accounts 129,324,679 - 1,494,684,448 519,488,249 496,378,609 - - 2,639,875,985 Segment direct expenses 92,464,290 7,817,621 - 43,372 100,325,283
Net inter segment borrowing 753,056,630 1,032,301,065 - - 8,821,805 - - 1,794,179,500 Inter segment expense allocation - - - - -
Others 19,538,871 53,577,825 90,825,364 17,915,365 17,577,342 1,392,046 42,212,950 243,039,763 Total expenses 92,464,290 7,817,621 - 43,372 100,325,283
Total Liabilities 948,720,477 5,853,010,273 1,591,093,627 545,406,724 550,632,667 1,392,046 52,212,950 9,542,468,764 Credit loss allowance - net 4,803,875 -
7,971,599 - 12,775,474
Equity 34,010 16,371,834 96,836,816 64,802,241 84,526,337 6,053,912 52,182,863 320,808,013 Profit / (loss) before tax 127,703,655 16,846,993 - 486,191 145,036,839
Total Equity & liabilities 948,754,487 5,869,382,107 1,687,930,443 610,208,965 635,159,004 7,445,958 104,395,813 9,863,276,777

Contingencies and Commitments 748,634,121 505,243,486 93,104,492 10,536,687 442,550,988 - 1,504,910 1,801,574,684 Balance Sheet
Cash & Bank balances 209,905,809 160,721,743 - 177,070 370,804,622
2023 Investments 5,749,021,290 139,877,233 - 867,318 5,889,765,841
Corporate / International Net inter segment lending
Branch Islamic 1,794,179,500 - - - 1,794,179,500
Commercial Treasury branch Subsidiaries Others Total
Banking Banking Lendings to financial institutions 18,492,483 - - -
Banking operations 18,492,483
------------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------------ Advances - performing net of credit loss allowance 1,119,207,644 316,124,639 - 57,362 1,435,389,645
Profit & Loss Advances - non-performing net of credit loss allowance 1,888,113 6,204,186 - - 8,092,299
Net mark-up / return / profit 62,359,198 165,148,422 (121,897,300) 20,401,647 18,978,272 6,090,946 (2,106,116) 148,975,069 Others 335,422,934 -
10,782,925 346,528 346,552,387
Inter segment (expense) / revenue - net (56,002,151) (237,721,792) 282,189,337 - - - 11,534,606 - Total Assets 9,228,117,773 633,710,726 - 1,448,278 9,863,276,777
Non mark-up / return / interest income 6,459,446 11,618,653 11,528,592 256,665 4,066,004 1,878,747 (725,619) 35,082,488 Borrowings 4,827,518,605 27,854,911 - - 4,855,373,516
Total Income 12,816,493 (60,954,717) 171,820,629 20,658,312 23,044,276 7,969,693 8,702,871 184,057,557 Subordinated debt 10,000,000 - - - 10,000,000
Segment direct expenses 1,755,992 662,195 43,123,087 4,271,579 7,917,826 5,815,687 8,946,469 72,492,835 Deposits & other accounts 483,677,824 - 12,700,785
2,143,497,376 2,639,875,985
Inter segment expense allocation 443,919 108,914 9,504,655 - 588,849 - (10,646,337) - Net inter segment borrowing 8,333,854 - 487,951
1,785,357,695 1,794,179,500
Total expenses 2,199,911 771,109 52,627,742 4,271,579 8,506,675 5,815,687 (1,699,868) 72,492,835 Others 225,462,421 28,956,172 - (11,378,830) 243,039,763
(Reversals) / provisions - net (1,384,871) 129,130 (752,586) 12,640 4,029,594 (1,673,429) 619,679 980,157 Total Liabilities 8,991,836,097 548,822,761 - 1,809,906 9,542,468,764
Profit / (loss) before tax 12,001,453 (61,854,956) 119,945,473 16,374,093 10,508,007 3,827,435 9,783,060 110,584,565 Equity 236,281,676 84,887,965 - (361,628) 320,808,013
Total Equity & liabilities 9,228,117,773 633,710,726 - 1,448,278 9,863,276,777

Contingencies and Commitments 1,359,023,696 442,472,468 - 78,520 1,801,574,684

256 United Bank Limited 70 Annual Report 2024 257

Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
For the
NOTES year
TO AND ended
FORMING December
PART OF 31, 2024
THE CONSOLIDATED FINANCIAL STATEMENTS For the
NOTES year
TO AND ended
FORMING December
PART OF 31, 2024
THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 FOR THE YEAR ENDED DECEMBER 31, 2024

Geographical segment analysis 2023

47. RELATED PARTY TRANSACTIONS
Export
Pakistan Middle East Europe Processing Total
Zones The Group has related party transactions with its parent, directors, key management personnel, associates and other related
------------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------------ parties including employee benefit schemes of the Group.
Profit & Loss
Net mark-up / return / profit 123,894,953 18,208,240 6,101,844 770,032 148,975,069
Non mark-up / return / interest income 31,816,603 4,041,228 (800,119) 24,776 35,082,488
The Group enters into transactions with related parties in the ordinary course of business and on substantially the same terms
Total Income 155,711,556 22,249,468 5,301,725 794,808 184,057,557 as for comparable transactions with person of similar standing. Contributions to and accruals in respect of staff retirement
Segment direct expenses
benefits and other benefit plans are made in accordance with the actuarial valuations / terms of the contribution plan.
60,006,959 7,883,702 4,568,050 34,124 72,492,835
Inter segment expense allocation (588,849) 586,191 - 2,658 -
Remuneration to the executives / officers is determined in accordance with the terms of their appointment.
Total expenses 59,418,110 8,469,893 4,568,050 36,782 72,492,835
Provisions - net (1,376,008) 3,471,953 (1,673,429) 557,641 980,157 Details of transactions with related parties during the year, other than those which have been disclosed elsewhere in these
Profit / (loss) before tax 97,669,454 10,307,622 2,407,104 200,385 110,584,565 consolidated financial statements, are as follows:
Balance Sheet
Cash & Bank balances 220,421,732 86,777,534 3,400,705 186,160 310,786,131 47.1 Related party transactions
Investments 4,186,410,893 196,285,002 49,609,389 3,445,586 4,435,750,870 2024
Net inter segment lending 1,647,905,466 - - - 1,647,905,466
Key
Lendings to financial institutions 34,447,852 - 4,868,418 - 39,316,270 Other related
Parent Directors management Associates
Advances - performing 492,945,422 105,933,631 253,441,389 1,478,241 853,798,683 parties
personnel
Advances - non-performing net of provision 3,415,311 9,792,924 5,034,014 - 18,242,249
Others 219,360,361 14,687,435 12,348,909 383,978 246,780,683 ------------------------------------------------------------------------------------------------------ (Rupees in '000) ---------------------------------------------------------
Total Assets 6,804,907,037 413,476,526 328,702,824 5,493,965 7,552,580,352 Lendings to financial institutions
Borrowings 2,816,966,160 - 6,921,754 - 2,823,887,914 Opening balance - - - - 804,102
Subordinated debt 10,000,000 - - - 10,000,000 Addition during the year - - - - 2,191,560
Deposits & other accounts 2,025,265,992 319,856,028 285,230,612 4,363,470 2,634,716,102 Repaid during the year - - - - (2,995,662)
Net inter segment borrowing 1,550,540,776 96,858,410 - 506,280 1,647,905,466 Transfers in / (out) - net - - - - -
Others 52,992,928 90,719,656 2,916,746 3,568,945 150,198,275
Closing balance - - - - -
Total Liabilities 6,455,765,856 507,434,094 295,069,112 8,438,695 7,266,707,757
Equity 349,141,181 (93,957,568) 33,633,712 (2,944,730) 285,872,595
Investments
Total Equity & liabilities 6,804,907,037 413,476,526 328,702,824 5,493,965 7,552,580,352
Opening balance - - - 6,389,617 5,287,396
Contingencies and Commitments 1,027,165,181 287,920,806 42,251,714 120,521 1,357,458,222 Investment made during the year - - - 17,508,051 885,450
Transactions between reportable segments are based on an appropriate transfer pricing mechanism using agreed rates. Investment redeemed / disposed off during the year - - - (17,793,670) (2,500,000)
Transfer in / (out) - net - - - - (37,406)
46. TRUST ACTIVITIES
Equity method adjustments - - - 202,357 -
The Bank acts as a custodian for securities held in Investor Portfolio Securities (IPS) accounts. These are not assets of the Bank and, Closing balance - - - 6,306,355 3,635,440
therefore, are not included in these consolidated financial statements. Assets held under trust in IPS accounts are shown in the table below:
Credit loss allowance for diminution in value of investments - - - 1,417,485 -
2024
Securities held (Face Value) Provision written off - - - - -
Number of IPS Pakistan Market
Category GoP Ijara Total
Accounts Investment Treasury
Sukuks Property and equipment / CWIP - - - - 197,026
Bonds Bills
------------------ (Rupees in '000) --------------------
Asset Management Companies 2 - 1,006,800 - 1,006,800 Advances
Corporates 37 132,351,400 - 163,621,760 295,973,160 Opening balance - 1,286 609,959 - 392
Individuals 199 215,800 17,500 5,282,750 5,516,050 Addition during the year - 7,566 365,352 - 231,103,164
Insurance Companies 5 472,645,700 1,897,500 73,505,000 548,048,200
Repaid during the year - (8,315) (488,089) - (6,136)
NGO / Charitable Organisation 4 2,754,000 - 12,126,745 14,880,745
Transfers in / (out) - - 109,061 - -
Pension & Employee Funds 36 63,018,800 838,000 43,246,890 107,103,690
Others Closing balance - 537 596,283 - 231,097,420
12 117,743,700 - 30,818,460 148,562,160
Total 295 788,729,400 3,759,800 328,601,605 1,121,090,805
Credit loss allowance held against advances - - - - -
2023
Securities held (Face Value) Other Assets
Number of IPS Pakistan Market
Category GoP Ijara Total Interest / mark-up accrued - - 133 - 5,094,682
Accounts Investment Treasury
Sukuks Receivable from staff retirement funds - - - - 13,006,849
Bonds Bills
------------------ (Rupees in '000) -------------------- Prepaid insurance - - - 144,558 -
Asset Management Companies 3 - 8,284,500 - 8,284,500 Unrealised gain on forward foreign exchange contracts - - - - 134
Corporates 27 32,321,700 - 105,059,490 137,381,190 Remuneration receivable from management of funds - - - 180,417 -
Individuals 246 262,500 21,000 7,532,275 7,815,775 Sales load receivable - - - 25,068 -
Insurance Companies 6 540,345,800 2,393,500 64,025,500 606,764,800
Other receivable - - - 222,367 12,478
NGO / Charitable Organisation 4 1,634,000 - 5,691,640 7,325,640
Capital Work in Progress - - - - -
Pension & Employee Funds 34 57,118,600 325,000 30,799,880 88,243,480
Others 14 Dividend receivable - - - - -
11,318,400 - 17,370,360 28,688,760
Total 334 643,001,000 11,024,000 230,479,145 884,504,145 Provision written off - - - - -

258 United Bank Limited Annual Report 2024 259

72
Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024
For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

2024 2024
Key Key
Other related
Parent Directors management Associates Other related
parties Parent Directors management Associates
personnel parties
personnel
------------------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------ (Rupees in '000) --------------------------------------------------------
Borrowings
Other information
Opening balance - - - - 402,800 Dividend Paid 27,796,071 989,492 33,061 - 7,491,134
Borrowings during the year - - - 500,000 243,259,002 Insurance premium paid - - - 838,586 -
Settled during the year - - - (500,000) (149,201,102) Insurance claims settled - - - 379,205 -
Closing balance - - - - 94,460,700 -
2023
Deposits and other accounts
Opening balance 14,362 5,149,234 115,491 566,903 14,917,301 Key
Other related
Received during the year Parent Directors management Associates
71,539,502 44,412,648 2,145,718 84,366,733 1,393,847,209 parties
personnel
Withdrawn during the year (71,550,659) (42,298,845) (2,101,517) (84,337,211) (1,368,907,854)
Transfer in / (out) - net - - (7,622) - 779,016 ------------------------------------------------------------------------------------------------------ (Rupees in '000) --------------------------------------------------------
Closing balance 3,205 7,263,037 152,070 596,425 40,635,672 Lendings to financial institutions
Opening balance - - - - -
Other Liabilities Addition during the year - - - - 12,674,229
Interest / mark-up payable on deposits Repaid during the year - - - - (11,870,127)
and borrowings Transfers in / (out) - net - - - - -
580 41,605 2,264 5,370 652,728
Closing balance - - - - 804,102
Dividend Payable - 70 4 - -
Payable to staff retirement fund - - - - -
Unrealised loss on forward foreign exchange contracts Investments
- - - - 3,219
Opening balance - - - 7,657,008 5,300,368
Unearned income - - - - - Investment made during the year - - - 15,023,586 -
Other payable - 4,310 - - 21,604 Investment redeemed / disposed off during the year - - - (14,680,742) (58,518)
Transfer in / (out) - net (225,000) 45,546
Contingencies and Commitments Equity method adjustments - - - (1,385,235) -
Letter of guarantee - - - - 21,463 Closing balance - - - 6,389,617 5,287,396
Forward Government securities sale - - - - 2,585,000
Provision for diminution in value of investments - - - 1,393,786 1,160,263
Profit and Loss Account
Income - - - - -
Provision written off
Mark-up / return / interest earned - - 31,903 - 5,116,983
Commission / charges recovered - 282 2,623 19,251 16,362 Property and equipment / CWIP - - - - 29,000
Dividend received - - - 54,613 891,983
Net gain on sale of securities - - - - - Advances
Other income - - - - 78,256 Opening balance - 480 372,952 - 17,808,043
Gain on sale of property and equipment Addition during the year - 5,664 577,328 - 14,944,269
- 36 47 2,806 -
Repaid during the year - (4,992) (503,914) - (33,077,402)
Remuneration from management of fund - - - 2,439,655 - Transfer in / (out) - net - 134 163,593 - 325,482
Sales load - - - 110,754 - Closing balance - 1,286 609,959 - 392
Other receivable 412,079 -
Reversal of provision - - - - - Provision held against advances - - - - -
Switch revenue - - - - 453,338
Other Assets
Expenses
Interest / mark-up accrued - - 8,612 - 120,906
Mark-up / return / interest paid 64,931 294,892 20,328 66,690 3,114,972 Receivable from staff retirement funds - - - - 4,730,609
Remuneration paid - - 1,268,666 - - Prepaid insurance - - - 100,000 -
Directors' fees and allowances - 117,870 - - - Remuneration receivable from management of funds - - - 180,417 -
Net charge for defined contribution plans Sales load receivable - - - 25,069 -
- - 34,580 - 657,313
Other receivable - - - 213,326 -
Net charge for defined benefit plans - - 10,748 - 130,567
Dividend receivable - - - - -
Credit loss allowance - - - - - Provision written off - - - - -
Other expenses - - 3,997 - 365,806
Clearing charges - - - - 210,344 Borrowings
Donations - - - - - Opening balance - - - - -
Membership, subscription, sponsorship and maintenance charges Borrowings during the year - - - - 27,041,450
- - 3,396 - 21,072
Settled during the year - - - - (26,638,650)
Closing balance - - - - 402,800

260 United Bank Limited Annual Report 2024 261

74
Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024
For
NOTESthe year
TO AND ended
FORMING PART December 31, 2024
OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024

2023 2024 2023

Key ------- (Rupees in '000) -------
Other related 48. CAPITAL ADEQUACY, LEVERAGE RATIO & LIQUIDITY REQUIREMENTS
Parent Directors management Associates
parties
personnel

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

Minimum Capital Requirement (MCR):
Deposits and other accounts
Paid-up capital (net of losses) 12,241,797 12,241,797
Opening balance 14,327 13,924,363 142,761 483,935 17,181,731
Received during the year 123,898,655 64,480,148 1,647,717 93,425,031 780,514,685
Withdrawn during the year (123,898,620) (73,338,287) (1,711,558) (93,342,063) (781,066,806) Capital Adequacy Ratio (CAR):
Transfers (out) / in - net - 83,010 36,571 - (1,712,309) Eligible Common Equity Tier 1 (CET 1) Capital 235,348,145 164,342,620
Closing balance 14,362 5,149,234 115,491 566,903 14,917,301 Eligible Additional Tier 1 (ADT 1) Capital 9,870,811 9,422,078
Total Eligible Tier 1 Capital 245,218,956 173,764,698
Other Liabilities
Eligible Tier 2 Capital 81,529,158 55,404,738
Interest / mark-up payable on deposits and borrowings - 17,676 188 33 49,967
Dividend Payable - - - - - Total Eligible Capital (Tier 1 + Tier 2) 326,748,114 229,169,436
Payable to staff retirement fund - - - - -
Unearned income - - - - 47,262 Risk Weighted Assets (RWAs):
Other payable - 4,310 - 5,000 14,583
Credit Risk 984,217,218 1,001,013,090
Contingencies and Commitments Market Risk 275,897,396 301,826,815
Forward foreign exchange contracts purchase - - - - - Operational Risk 327,012,027 265,722,534
Total 1,587,126,641 1,568,562,439
Profit and Loss Account
Income
Mark-up / return / interest earned - - 38,271 - 2,247,937 Common Equity Tier 1 Capital Adequacy ratio 14.83% 10.48%
Commission / charges recovered - 174 1,501 16,219 23,975
Dividend received - - - 261,066 610,556 Tier 1 Capital Adequacy Ratio 15.45% 11.08%
Net gain on sale of securities - - - 337,178 -
Other income - - - - 46,186
Gain on sale of property and equipment - - 7,072 1,235 - Total Capital Adequacy Ratio 20.59% 14.61%
Remuneration from fund under management - - - 1,609,148 -
Sales load - - - 54,314 - The SBP through its BSD Circular No. 07 dated April 15, 2009 has prescribed the minimum paid-up capital (net of accumulated
Reimbursement of expenses by Funds 437,080 losses) for Banks to be raised to Rs.10,000 million by the year ending December 31, 2015. The paid-up capital of the Bank for
Reversal of provision - - - - 20,203 the year ended December 31, 2024 stood at Rs.12,241.797 million (2023: Rs.12,241.797 million) and is in compliance with
Switch revenue - - - - 351,280 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 exposures of the Bank.
Expenses
Mark-up / return / interest paid 7,416 361,179 11,476 51,941 1,375,693 In order to dampen the effects of COVID-19, the State Bank of Pakistan under BPRD Circular Letter No. 12 of 2020 has given
Remuneration paid - - 1,501,342 - - a regulatory relief and reduced the Capital Conservation Buffer (CCB) as prescribed vide BPRD Circular No. 6 of August 15,
Post employment benefits - - - - - 2013, for the time being, from its existing level of 2.5% to 1.5%, till further instructions.
Directors' fee and allowances - 102,700 - - -
Net charge for defined contribution plans - - 58,813 - 523,293 Further, under Basel III instructions, Banks are also required to maintain a Common Equity Tier 1 (CET 1) ratio and Tier 1 ratio
Net charge for defined benefit plans - - 12,535 - 410,532 of 6.0% and 7.5%, respectively, as at December 31, 2024. The Bank is fully compliant with prescribed ratios as the Bank’s CAR
Provision - - - 999,985 227,626 is 20.59 % whereas CET 1 and Tier 1 ratios stood at 14.83% and 15.45% respectively.
Other expenses - 26 69,026 500 240,736
Clearing charges - - - - 170,828 Furthermore, under the SBP’s Framework for Domestic Systemically Important Banks (D-SIBs) introduced vide BPRD Circular
Donations - - - - - No. 04 of 2018 dated April 13, 2018, UBL has been designated as a D-SIB under letter BSD-3/Bank/UBL/751777/2024 dated
Membership, subscription, sponsorship and maintenance charges - - 3,864 - 31,034 August 29, 2024. In line with this framework, the Bank is required to meet the Higher Loss Absorbency (HLA) capital charge of
1.0%, in the form of Additional CET 1 capital, on a standalone as well as consolidated level. The prescribed HLA under D-SIB
Other information shall remain effective till the next D-SIB designation announcement is made by State Bank of Pakistan.
Dividend paid 26,532,614 881,245 21,066 - 5,086,556
Insurance premium paid - - 4,811 690,432 -
Insurance claims settled - - - 588,634 - Under the current capital adequacy regulations, credit risk and market risk exposures are measured using the Standardised
Approach and operational risk is measured using the Basic Indicator Approach. Credit risk mitigants are applied against the
Bank’s exposures based on eligible collateral under comprehensive approach.

The Capital Adequacy Ratio excluding the transition benefit of ECL (net of tax) on adoption of IFRS 9 would be lower by 23 bps
as at December 31, 2024.

262 United Bank Limited Annual Report 2024 263

Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
For
NOTESthe year
TO AND ended
FORMING December
PART OF 31, 2024
THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2024
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

The year marked a return to macroeconomic stability, with declining inflation, stable exchange rate, a primary balance surplus, and a minimal current
2024 2023
account deficit. Consequently, State Bank of Pakistan cumulatively decreased 900 basis points in its policy rate in the year 2024, in response to falling
------- (Rupees in '000) ------- inflation and to stimulate economic activity .
Leverage Ratio (LR):
Eligible Tier-1 Capital 245,218,956 173,764,698 The banking sector has been resilient and has grown tremendously in the past year and has managed to expand its asset base, largely weighed by
Total Exposures 7,858,268,797 6,589,218,905 investments, while advances have also shown substantial growth. Bank lending to the private sector surged, while the public sector continued to avail
Leverage Ratio 3.12% 2.64% additional financing. Profitability witnessed a significant growth on back of Net Interest Income.

49.1 Credit risk

Liquidity Coverage Ratio (LCR):
Total High Quality Liquid Assets 1,811,082,158 1,194,192,309 Credit risk is the risk that a customer or counterparty may not settle an obligation for full value, either when due or at any time thereafter. This risk arises
from the potential that a customer's or counterparty’s willingness or ability to meet such an obligation is impaired, resulting in an economic loss to the Bank.
Total Net Cash Outflow 721,240,316 436,543,979
Liquidity Coverage Ratio 251.11% 273.56%
The credit risk management process is driven by the Bank's Risk Management Policy, Credit Policy for domestic operations, Collateral Management
Net Stable Funding Ratio (NSFR): Policy, Credit Policy of respective overseas operation, which provide guidance in relation to credit initiation, approval, documentation and disbursement,
credit maintenance and remedial management process.
Total Available Stable Funding 2,163,819,529 1,912,608,898
Total Required Stable Funding 2,007,567,831 1,310,982,494 Individual credit authorities are delegated to credit officers by the Group Executive - Risk & Credit Policy (authorized by BoD), according to their seasoning
Net Stable Funding Ratio 107.78% 145.89% / maturity. Approvals for Consumer loans are centralized, while approval authorities for overseas operations, Corporate, Commercial, SME and Agri
exposures are delegated at a Country / Regional level. Furthermore, credit authorities are also delegated to business teams in various regions for
Commercial, SME and Agri lending. All credit policy functions globally are centrally organized.
48.1 The full disclosures on the CAPITAL ADEQUACY, LEVERAGE RATIO & LIQUIDITY REQUIREMENTS as per SBP
instructions issued from time to time are placed on the website. The link to the full disclosure is available at Concentration of credit risk exists if clients are engaged in similar activities or are located in the same geographical region or have comparable economic
https://www.ubldigital.com/Investor-Relations/CAR-Statements. characteristics such that their ability to meet contractual obligations would be similarly affected by changes in economic, political or other conditions. The
Bank manages, limits and controls concentrations of credit risk to individual counterparties and groups, and to industries, where appropriate. Limits are
also applied to portfolios or sectors where the Bank considers it appropriate to restrict credit risk concentrations, to areas of higher risk, or to control the
49. RISK MANAGEMENT
rate of portfolio growth. To manage cross border exposure, the bank has a Country Risk Policy in place which provides the framework for managing
Country and FI related risks.
The Bank has an integrated risk management structure in place covering domestic and international operations. The Board
Risk and Compliance Committee (BRCC), a sub-committee of the Board of Directors (BoD); oversees the entire risk The Risk Management function of the Bank regularly conducts assessments of the credit portfolio to identify borrowers most likely to get affected due to
management process of the Bank. Management Risk Committee (MRC) oversees all risks collectively at senior management changes in the continuously evolving business and economic environment. The Bank has been continuously reviewing the portfolio, to identify accounts
level. The Committee is chaired by the President and comprises of Heads of all major areas such as Risk, Finance, SAM and susceptible to higher risk, resulting from the ongoing economic crisis.
Business Groups. The Risk and Credit Policy Group led by Group Executive Risk and Credit Policy (GE-R&CP) is responsible IFRS 9 became applicable in the current year for domestic operations and has been applicable for some of the international branches of the Bank. This
for the development and implementation of all risk policies approved by the BoD in line with the guidelines issued by SBP and standard requires the estimation of Expected Credit Losses (ECL) based on various parameters such as probability of default, loss given default, exposure
respective overseas central banks. The group is organized into various functions such as Credit Risk Management, Credit at default, significant increase in credit risk as well as current and forecasted macro-economic variables as detailed in note 4.2.6
Policy & Research, Market & Treasury Risk and Basel, Financial Institution Risk, Consumer Risk, Operational Risk, Credit
49.1.1 Lendings to financial institutions
Administration Division, Environmental, Social & Governance Risk and Information Security Risk. The role of the Risk and
2024
Credit Policy Group, interalia, includes:
Non-performing
Credit risk by public / private sector Gross lendings Credit loss allowance held
lendings
- Determining guidelines relating to the Bank’s risk appetite.
Stage 1 Stage 2 Stage 3 Total
- Reviewing risks on an aggregate and enterprise level --------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------
Public / Government - - - - - -
- Recommending risk management policies in accordance with the Prudential Regulations, Basel II / III framework, Private 18,492,483 - - - - -
Regulatory framework of foreign countries where the bank operates and international best practices. 18,492,483 - - - - -

2023
- Reviewing policies / manuals and ensuring that these are in accordance with BRCC / BoD approved Risk Management
Policy. Non-performing Provision
Gross lendings
lendings held
- Approving credits and granting approval authority to qualified and experienced individuals. ----------------------- (Rupees in '000) ----------------------

- Portfolio reviews focusing on quality assessment, risk profiles, industry concentrations etc. Public / Government - - -
Private 39,316,270 - -
- Identify problem credits and level of provisioning required. 39,316,270 - -
49.1.2 Investment in debt securities
- To establish an extensive Information Security (IS) Program and governance structure, to manage the security of the 2024
information assets. Gross Non-performing
Credit risk by industry sector Credit loss allowance held
investments investments
- Ensuring development of an effective MIS for timely identification, control and reporting of risks across the Bank.
Stage 1 Stage 2 Stage 3 Total
- Assessing the position of Bank’s Risk Weighted Assets (RWAs) in line with the applicable standards under Basel for --------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------
computation of capital requirement(s) for the Bank. Chemical and pharmaceuticals 528,106 28,108 135 - 28,108 28,243
Financial 5,769,754,137 360,000 30,121 1,556,327 360,000 1,946,448
The latter half of 2024 marked a period of stability for the global economy, as Central Banks around the globe began reducing Food 912 912 - - 912 912
Production and transmission of energy 18,396,008 - - 808,278 - 808,278
their rates, signalling a potential shift in the global economic cycle and monetary policy approach.
Metal and allied 78,125 - 15 - - 15
Textile 229,263 229,263 - - 229,263 229,263
Others 2,823,628 - 948 - - 948
5,791,810,179 618,283 31,219 2,364,605 618,283 3,014,107

264 United Bank Limited Annual Report 2024 265

78
Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
For TO
NOTES the year ended
AND FORMING PART OF THEDecember 31, 2024
CONSOLIDATED FINANCIAL STATEMENTS For
FOR THEthe yearDECEMBER
YEAR ENDED ended December 31, 2024
31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

2023 2023
Gross Non-performing Provision Specific
Gross Non-performing
investments investments held Provision
advances advances
------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------ held
------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------
Chemical and pharmaceuticals 541,190 49,811 49,811
Financial 4,375,162,776 360,000 360,000 Agriculture 39,869,832 570,313 360,204
Food 912 912 912 Airlines 4,030,362 541,988 541,988
Production and transmission of energy 19,531,036 - - Automobile and transportation equipment 17,463,053 123,217 121,342
Metal and allied 140,625 - - Education and medical 24,910,241 14,556,606 13,140,102
Textile 314,978 229,263 229,263
Cables 1,368,158 481,751 481,751
Others 40,547,530 1,397 1,397
4,436,239,047 641,383 641,383 Cement 4,590,950 492,327 492,327
2024 Chemical and pharmaceuticals 10,208,853 112,625 112,625
Construction 16,398,062 4,224,696 4,215,026
Gross Non-performing
Credit loss allowance held Contractors 95,860 - -
investments investments
Electronics and electrical appliances 15,775,572 13,334,844 10,601,138
Stage 1 Stage 2 Stage 3 Total
Engineering 750,184 6,000 6,000
------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------
Credit risk by public / private sector Fertilizer 1,588,246 14,372 7,622
Financial 31,561,147 2,690,299 2,690,299
Public / Government 5,780,602,176 - 898 - 618,283 619,181 Food, tobacco and beverages 7,765,325 1,910,943 1,910,943
Private 11,208,003 618,283 30,321 2,364,605 - 2,394,926 Glass and allied - - -
5,791,810,179 618,283 31,219 2,364,605 618,283 3,014,107
Hotel and tourism 9,485,463 669,906 669,906
Individuals 101,198,906 8,838,394 4,265,561
2023
Paper and allied 1,832,461 37,064 37,064
Gross Non-performing Provision Polyester and fiber - - -
investments investments held Production and transmission of energy 159,712,149 2,520,767 1,013,366
------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------ Shoes and leather garments 1,795,996 828,152 828,152
Credit risk by public / private sector Sugar 9,394,147 29,748 29,748
Metal and allied 7,663,731 1,350,868 408,613
Public / Government 4,407,061,662 - -
Private 29,177,385 641,383 641,383 Telecommunication 41,498,040 - -
4,436,239,047 641,383 641,383 Textile composite 44,644,860 3,558,063 3,558,063
Textile 35,365,478 5,883,025 5,750,212
49.1.3 Advances Textile spinning 14,945,777 2,863,027 2,863,027
2024
Textile weaving 2,679,116 146,232 146,232
Gross Non-performing Wholesale and retail trade 15,715,348 5,019,853 4,999,619
Credit risk by industry sector Credit loss allowance held
advances advances Others 353,395,291 39,769,456 33,081,357
975,702,608 110,574,536 92,332,287
Stage 1 Stage 2 Stage 3 Total
--------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------
2024
Agriculture 275,734,417 660,312 118,864 61,123 551,904 731,891
Gross Non-performing
Airlines 3,299,910 541,988 5,425 - 541,988 547,413 Credit loss allowance held
advances advances
Automobile and transportation equipment 41,490,727 6,527,855 26,339 655,641 6,527,855 7,209,835
Stage 1 Stage 2 Stage 3 Total
Education and medical 116,358,274 14,427,837 3,000 1,784 14,427,837 14,432,621
------------------------------------------------------------------------------------------ (Rupees in '000) ----------------------------------------------------------------------------
Cables 820,927 406,751 2,661 - 406,751 409,412
Credit risk by public / private sector
Cement 39,427,138 - 7,121 17,116 - 24,237
Chemical and pharmaceuticals 110,732,085 112,625 16,678 29,652 112,625 158,955
Construction 33,479,000 6,081,446 20,698 222,381 6,076,997 6,320,076 Public / Government 470,275,453 999,450 1,689,157 444,979 22,349 2,156,485
Electronics and electrical appliances 19,158,986 13,043,157 9,505 26,257 10,305,162 10,340,924 Private 1,094,851,908 114,992,500 4,320,431 7,291,199 107,877,302 119,488,932
Engineering 240,160 6,000 117 15,660 6,000 21,777 1,565,127,361 115,991,950 6,009,588 7,736,178 107,899,651 121,645,417
Fertilizer 4,700,728 22,271 14,198 220 19,112 33,530
Financial 135,942,642 2,668,316 772,401 439,623 2,668,316 3,880,340 2023
Food, tobacco and beverages 6,811,367 1,668,358 26,959 24 1,650,358 1,677,341
Specific
Glass and allied 432,433 - 3,860 - - 3,860 Gross Non-performing
Provision
Hotel and tourism 8,522,263 770,670 20,426 14,599 770,670 805,695 advances advances
held
Individuals 93,359,602 5,635,275 1,374,529 189,153 4,787,328 6,351,010
------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------
Paper and allied 1,435,163 18,064 2,896 2,093 18,064 23,053
Credit risk by public / private sector
Production and transmission of energy 152,060,404 2,251,178 631,355 872,635 1,706,657 3,210,647
Shoes and leather garments 1,941,913 875,612 3,825 1,992 875,612 881,429
Sugar 62,488,619 13,248 253,972 - 13,248 267,220 Public / Government 219,632,641 964,604 22,349
Metal and allied 9,411,152 3,547,124 40,471 82 2,604,869 2,645,422 Private 756,069,967 109,609,932 92,309,938
Telecommunication 76,991,849 3,222,056 148,336 177 3,222,056 3,370,569 975,702,608 110,574,536 92,332,287
Textile composite 48,962,873 3,332,141 98,701 1,499,408 3,332,141 4,930,250
Textile 54,541,500 5,573,926 121,118 278,840 5,573,926 5,973,884
Textile spinning 22,134,021 2,584,881 80,251 157,708 2,584,881 2,822,840
Textile weaving 2,172,353 133,991 4,076 79,626 133,991 217,693
Wholesale and retail trade 26,611,853 8,686,562 21,736 3,470 8,657,355 8,682,561
Others 215,865,002 33,180,306 2,180,070 3,166,914 30,323,948 35,670,932
1,565,127,361 115,991,950 6,009,588 7,736,178 107,899,651 121,645,417

266 United Bank Limited Annual Report 2024 267

Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024 For
NOTESthe year
TO AND ended
FORMING PART December 31, 2024
OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024

2024 2023 49.1.6 Advances - Province / Region-wise Disbursement & Utilisation

------- (Rupees in '000) -------
49.1.4 Contingencies and Commitments 2024
Utilisation
Credit risk by industry sector Province / Region
Disburse-
Agri business 47,675,276 61,910,577 KPK including AJK including
ments Punjab Sindh Balochistan Islamabad
FATA Gilgit-Baltistan
Airlines 701,407 146,972
Automobile and transportation equipment 34,334,323 8,104,503
Cables 590,684 761,688 -------------------------------------------- (Rupees in '000) --------------------------------------

Cement 24,576,331 10,970,043 Punjab 754,018,770 754,018,770 - - - - -

Chemical and pharmaceuticals 114,013,140 7,836,473 Sindh 653,255,392 - 653,255,392 - - - -
KPK including FATA 580,446 - - 580,446 - - -
Construction 55,620,268 20,447,024 Balochistan 2,494,308 - - - 2,494,308 - -
Contractors 16,592,159 19,344,346 Islamabad 153,608,772 - - - - 153,608,772 -
Electronics and electrical appliances 15,917,539 6,012,816 AJK including Gilgit-Baltistan 42,682 - - - - - 42,682
Total 1,564,000,370 754,018,770 653,255,392 580,446 2,494,308 153,608,772 42,682
Engineering 6,312,074 6,948,442
Fertilizer dealers 28,121,284 19,636,147 2023
Financial 681,377,492 654,641,272 Utilisation
Food, tobacco and beverages 21,983,965 13,526,395 Province / Region
Disburse-
Glass and allied 676,722 136,874 KPK including AJK including
ments Punjab Sindh Balochistan Islamabad
Hotel and tourism 2,375,535 1,064,119 FATA Gilgit-Baltistan
Individuals 23,376,647 19,688,970
Paper and allied 4,478,131 3,497,866 -------------------------------------------- (Rupees in '000) --------------------------------------
Polyester and fiber 3,707,328 4,214,793 Punjab 348,177,061 348,177,061 - - - - -
Production and transmission of energy 261,949,358 220,094,251 Sindh 279,441,191 - 279,441,191 - - - -
KPK including FATA 1,424,469 - - 1,424,469 - - -
Shoes and leather garments 1,703,028 1,374,174
Balochistan 114,525 - - - 114,525 - -
Sugar 4,864,721 801,482 Islamabad 56,846,157 - - - - 56,846,157 -
Telecommunication 16,862,904 10,195,604 AJK including Gilgit-Baltistan 88,965 - - - - - 88,965
Total 686,092,368 348,177,061 279,441,191 1,424,469 114,525 56,846,157 88,965
Textile 84,184,116 57,665,189
Wholesale traders 8,139,301 4,597,270 49.2 Market Risk
Others 341,440,951 203,840,932
1,801,574,684 1,357,458,222 Market risk is the risk of changes in market conditions that may adversely impact the value of assets or liabilities, following a
Credit risk by public / private sector negative impact on earnings. Market risk mainly arises from trading activities carried out by Treasury and Capital Market
Public / Government 402,453,384 439,325,265 (TCM) like lending / borrowing, Investments and client facilitating activities.
Private 1,399,121,300 918,132,957
To ensure effective management of Market Risk, a robust Risk Management Policy, which includes management of market
1,801,574,684 1,357,458,222 risk, has been formulated and sanctioned by the Board of Directors. This policy delineates the appropriate risk metrics,
control mechanisms, and methodologies employed for proactive market risk management.
49.1.5 Concentration of Advances
The Bank carries out market risk management through effective risk measurement tools including Value at Risk (VaR),
The Bank's top 10 exposures on the basis of total (funded and non-funded exposures) aggregated to Rs.846,033 million (2023: Rs. 478,848 million) are as
Price Value per Basis Point (PVBP), Duration, Beta, and Expected Shortfall on regular basis. Bank also ascertains the
follows:
impact of changes in market factors on Bank’s earnings through regular stress testing and Internal Capital Adequacy
2024 2023 Assessment Processes (ICAAP).
------- (Rupees in '000) -------
49.2.1 Balance sheet split by trading and Banking books
Funded 650,326,358 166,962,464 2024 2023
Banking Trading Banking Trading
Non Funded 195,706,719 311,886,407 Total Total
book book book book
Total Exposure 846,033,077 478,848,871 -------------------------------------------- (Rupees in '000) --------------------------------------
Cash and balances with treasury banks 310,836,376 - 310,836,376 277,355,760 - 277,355,760
The sanctioned limits against these top 10 exposures aggregated to Rs. 1,037,771 million (2023: Rs. 531,971 million). Balances with other banks 59,968,246 - 59,968,246 33,430,371 - 33,430,371
Lendings to financial institutions 18,492,483 - 18,492,483 39,316,270 - 39,316,270
None of the exposure against these top 10 exposures is classified. Investments 1,650,662,536 4,239,103,305 5,889,765,841 1,376,242,808 3,059,508,062 4,435,750,870
Advances 1,443,481,944 - 1,443,481,944 872,040,932 - 872,040,932
For the purpose of this note, exposure means outstanding funded facilities and utilised non-funded facilities as at the reporting date. Property and equipment 85,591,999 - 85,591,999 76,460,159 - 76,460,159
Right-of-use assets 10,231,121 - 10,231,121 8,611,473 - 8,611,473
Intangible assets 2,792,016 - 2,792,016 2,552,398 - 2,552,398
Deferred tax assets - - - - - -
Other assets 247,937,251 - 247,937,251 159,156,653 - 159,156,653
3,829,993,972 4,239,103,305 8,069,097,277 2,845,166,824 3,059,508,062 5,904,674,886
49.2.2 Foreign Exchange Risk

Foreign exchange (FX) risk arises from the fluctuation in the value of assets and liabilities due to the changes in foreign
exchange rates.

268 United Bank Limited Annual Report 2024 269

Notes to and forming part of the Consolidated Financial Statements

(200,000) (1,082,229,704)

(200,000) (1,082,229,704)
784,866
283,304,481
47,796,370

21,089,682
17,886,189
234,460,834
604,537,556

44,221,818

12,008,797
1,509,507,336

120,244,443
1,686,767,260

570,987,981
Non-interest

instruments

-
-
-
-
-
-
-
financial
bearing

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

For
NOTESthe year
TO AND ended
FORMING December
PART OF 31, 2024
THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024

200,000

200,000

1,653,217,685
Over 10 years

-
-
-
-
-
-
-

-
-
-
-

-
-
-
-
-
-
-
The FX risk and associated concentration risk is managed through approved currency wise net open position limits, tenor
wise limits and an overall Foreign Exchange limit.

The currency risk is effectively monitored against the applicable regulatory limits. Market risk monitors that the FX exposure

Over 1 month to 3 Over 3 months to Over 6 months Over 1 year to Over 2 years to Over 3 years to Over 5 years to
remains under limits prescribed by SBP and Internal Limits approved by GALCO.

53,556
70,300,097
19,868,152

90,168,249

17,587,110
2,296,841

19,937,507
70,230,742

70,230,742
1,653,417,685
-
-
-

-
-

-
-
-
-
-
-
-
10 years
2024 2023
Foreign Foreign Net foreign Foreign Foreign Net foreign
Off-balance Off-balance
Currency Currency currency Currency Currency currency

8,963,938

6,574,226
2,756,029

9,330,255
353,309,225

362,273,163

352,942,908

352,942,908
1,583,186,943
sheet items sheet items

-
-
-

-
-
-

-
-
-
-
-
-
-
Assets Liabilities exposure Assets Liabilities exposure

5 years
------------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------------

United States Dollar 390,776,942 207,960,797 (183,932,859) (1,116,714) 265,451,398 144,775,639 (118,350,114) 2,325,645

2,435,941

2,426,323
6,490,400
200,996

9,117,719
470,536,853

472,972,794

463,855,075

463,855,075
1,230,244,035
2,153,311 16,222,269 14,090,143 21,185 309,541,301 290,156,031 (1,245,609) 18,139,661

-
-
-

-
-

-
-
-
-
-
-
-
Great Britain Pound

3 years
Japanese Yen 5,480 221,517 212,403 (3,634) 11,186 219,567 211,086 2,705
Euro 2,743,380 18,579,385 15,853,031 17,026 4,303,909 15,843,059 10,861,483 (677,667)

Exposed to yield / interest rate risk

UAE Dirham 271,661,251 404,871,579 132,592,756 (617,572) 203,371,384 275,837,544 73,244,044 777,884

Notes to and forming part of the Consolidated Financial Statements

13,696,018 42,480,832 28,001,813 (783,001) 13,118,985 43,475,886 32,157,881 1,800,980

5,106,073

1,688,052
1,772,020

3,460,072
551,133,261

556,239,334

552,779,262

552,779,262
766,388,960
Bahraini Dinar

-
-
-

-
-
-

-
-
-
-
-
-
-
2 years
Qatari Riyal 36,000,718 55,174,415 19,218,594 44,897 39,308,930 52,195,508 12,837,243 (49,335)
Other Currencies 29,187,203 25,109,030 (4,058,452) 19,721 23,877,709 23,635,229 7,955,861 8,198,341
746,224,303 770,619,824 21,977,429 (2,418,092) 858,984,802 846,138,463 17,671,875 30,518,214

2024

(508,663)
269,549

117,669
321,878,483
52,364,062

374,242,545

72,164,680

72,551,898

2,508,121

1,999,458
301,690,647

303,690,105
213,609,698
2024 2023

-
-
-

-
-

-
-
-
-
to 1 year
Banking Trading Banking Trading
book book book book
---------------------------- Rupees in '000 ----------------------------

(94,024,477)

(90,080,407)
39,272,296
3,490,053,762
131,789,813

3,621,843,575

275,658,080

314,930,376

15,842,600

92,427,041

14,245,164
3,306,913,199

3,321,158,363
Impact of 1% change in foreign exchange rates on

-
-
-

-
-
-

-
-

-
6 months
- Profit and loss account - - - -
- Other comprehensive income 24,181 - (305,182) -

49.2.3 Equity position Risk

(93,157,410)

(3,411,238,770)
2,693,859

588,311,866
906,265,964

64,748,742
1,497,271,689

680,161,994

744,910,736
752,360,953

15,417,840

96,020,496

18,280,926
770,641,879

85
-

-
-
-

-
-

-
months
Equity risk is the risk that the fair value of an equity instrument will fluctuate due to changes in the prices of individual stocks
or market indices.

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS

To manage equity risk, the Group has a well-defined criterion for identifying the Investible Universe based on the Market

(22,585,000)

(92,565,232)
(4,443,434,138)

(4,181,880,649)
(4,181,880,649)
27,531,895
9,478,017
18,492,483
23,152,612
298,801,812

377,456,819

89,068,605

10,000,000
4,721,822,352

4,820,890,957

265,441,250

111,262,471

261,553,489
Capitalisation & Average Daily Traded Value.

Upto 1 month

-
-
The Group has an active and regular monitoring mechanism for utilisation against approved portfolio limits, scrip wise limits,
sector limits and timely escalation of Management Action Trigger Levels (MAT).

For the year ended December 31, 2024

(22,585,000)

(280,255,782)
2024 2023

310,836,376
59,968,246
18,492,483

234,460,834

44,221,818

12,381,018
10,000,000
120,244,443

274,908,944

296,701,690

302,218,129

296,079,037
570,987,981
5,889,765,841
1,443,481,944

7,957,005,724

4,855,373,516
2,639,875,985

7,682,096,780

-
-
Mismatch of interest rate sensitive assets and liabilities
Banking Trading Banking Trading

Total
book book book book
---------------------------- Rupees in '000 ----------------------------
Impact of 5% change in equity prices on,
- Profit and loss account - - - -

Effective yield
/ interest rate

20.03%
18.13%
15.10%

19.38%

13.36%
21.31%
538,297

1.25%
5.00%

7.88%
- Other comprehensive income 47,594 1,022,635 30,812

%
49.2.4 Yield / Interest Rate Risk in the Banking Book (IRRBB) - Basel II Specific

FOR THE YEAR ENDED DECEMBER 31, 2024

Cumulative Yield / Interest Rate Risk Sensitivity Gap

Interest rate risk is the risk that fair value of a financial instrument will fluctuate as a result of changes in interest rates,

Total Yield / Interest Rate Risk Sensitivity Gap

including changes in the shape of yield curves. Interest rate risk is inherent in the overall business of the Bank and arises

Forward Government Securities - Purchase

from mismatches between the contractual maturities and the re-pricing of on and off-balance sheet assets and liabilities.

Off-balance sheet financial instruments

On-balance sheet financial instruments

Cash and balances with treasury banks

Forward Government Securities - Sale

Foreign currency forward - Purchase
Interest rate risk is monitored and managed by performing periodic gap analysis, sensitivity analysis and stress testing. In

Lendings to financial institutions

Foreign currency forward - Sale

case of any distressed event the results and corresponding action plan is presented at the relevant management / BoD

Deposits and other accounts

Balances with other banks
committee.

Off-balance sheet Gap

On-balance sheet gap

FX Options - Purchase
Subordinated debt
2024 2023

FX Options - Sale
Lease liabilities

Other liabilities
Banking Trading Banking Trading

Other assets

Bills payable
Investments

Borrowings
Liabilities
Advances
book book book book

Assets
---------------------------- Rupees in '000 ----------------------------
Impact of 1% change in interest rates on
49.2.5

- Profit and loss account - 201,828 - 194,691

- Other comprehensive income 32,387,768 8,887,116 22,655,407 17,862,013

270 United Bank Limited Annual Report 2024 271

 Notes to and forming part of the Consolidated Financial Statements

272
For the year ended December 31, 2024
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024
2023
Exposed to yield / interest rate risk Non-interest
Effective yield bearing
Total Over 1 month to 3 Over 3 months to Over 6 months Over 1 year to Over 2 years to Over 3 years to Over 5 years to
/ interest rate Upto 1 month Over 10 years financial
months 6 months to 1 year 2 years 3 years 5 years 10 years
instruments

United Bank Limited

On-balance sheet financial instruments % ------------------------------------------------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------------------------------------------------------------
Assets
Cash and balances with treasury banks 1.08% 277,355,760 19,968,836 - - - - - - - - 257,386,924
Balances with other banks 4.54% 33,430,371 7,459,889 2,818,607 - 1,192,117 - - - - - 21,959,758
Lendings to financial institutions 19.55% 39,316,270 39,316,270 - - - - - - - - -
Investments 17.28% 4,435,750,870 127,710,534 350,413,249 948,509,917 1,944,261,520 232,119,566 491,250,534 242,797,677 80,747,401 73,376 17,867,096
Advances 16.59% 872,040,932 194,198,131 328,384,372 151,188,677 32,957,217 56,914,319 50,982,349 13,175,744 17,876,446 1,502,447 24,861,230
Other assets 155,342,515 - - - - - - - - - 155,342,515
5,813,236,718 388,653,660 681,616,228 1,099,698,594 1,978,410,854 289,033,885 542,232,883 255,973,421 98,623,847 1,575,823 477,417,523
Liabilities
Bills payable 21,734,531 - - - - - - - - - 21,734,531
Borrowings 20.14% 2,823,887,914 2,754,492,382 30,201,166 5,109,196 254,135 907,970 2,511,768 7,795,661 21,895,986 129,225 590,425
Deposits and other accounts 8.05% 2,634,716,102 109,114,125 982,409,639 62,076,755 174,999,873 53,379,953 21,706,658 61,289,622 4,244,007 - 1,165,495,470
Lease liabilities 12.65% 10,474,561 - - - - - - - - - 10,474,561
Subordinated debt 22.36% 10,000,000 10,000,000 - - - - - - - - -
Other liabilities 79,937,487 - - - - - - - - - 79,937,487
5,580,750,595 2,873,606,507 1,012,610,805 67,185,951 175,254,008 54,287,923 24,218,426 69,085,283 26,139,993 129,225 1,278,232,474
On-balance sheet gap 232,486,123 (2,484,952,847) (330,994,577) 1,032,512,643 1,803,156,846 234,745,962 518,014,457 186,888,138 72,483,854 1,446,598 (800,814,951)
Off-balance sheet financial instruments
FX Options - Purchase 183,034 123,349 59,685 - - - - - - - -
FX Options - Sale (183,034) (123,349) (59,685) - - - - - - - -
Forward Government Securities - Purchase 16,956,300 1,597 16,954,703 - - - - - - - -
Forward Government Securities - Sale (3,000,000) (3,000,000) - - - - - - - - -
Foreign currency forward - Purchase 295,080,548 126,874,388 120,086,940 45,090,510 3,028,710 - - - - - -
Foreign currency forward - Sale (277,029,731) (116,062,067) (106,388,768) (51,840,917) (2,737,979) - - - - - -
Off-balance sheet Gap 32,007,117 7,813,918 30,652,875 (6,750,407) 290,731 - - - - - -
Total Yield / Interest Rate Risk Sensitivity Gap 264,493,240 (2,477,138,929) (300,341,702) 1,025,762,236 1,803,447,577 234,745,962 518,014,457 186,888,138 72,483,854 1,446,598 (800,814,951)
Cumulative Yield / Interest Rate Risk Sensitivity Gap (2,477,138,929) (2,777,480,631) (1,751,718,395) 51,729,182 286,475,144 804,489,601 991,377,739 1,063,861,593 1,065,308,191 264,493,240

49.2.5.1 Reconciliation of Assets and Liabilities exposed to yield / interest rate risk with Total Assets and Liabilities
2024 2023 2024 2023
------- (Rupees in '000) ------- ------- (Rupees in '000) -------
Total financial assets as per note 48.3.5 7,957,005,724 5,813,236,718 Total financial liabilities as per note 48.3.5 7,682,096,780 5,580,750,595
Add: Non financial assets Add: Non financial liabilities
Property and Equipment 85,591,999 76,460,159 Other liabilities 26,881,221 38,051,696
Right-of-use assets 10,231,121 8,611,473
Intangible assets 2,792,016 2,552,398 Deferred tax liabilities 39,311,263
Deferred tax assets - -
Other assets 13,476,417 3,814,138
Total assets as per statement of financial position 8,069,097,277 5,904,674,886 Total liabilities as per statement of financial position 7,748,289,264 5,618,802,291

86

Notes to and forming part of the Consolidated Financial Statements

For TO AND
NOTESthe FORMING
year PART OF
ended THE CONSOLIDATED
December 31, FINANCIAL
2024 STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024

49.3 Operational risk

Operational risk is recognized as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.

In compliance with the Regulatory Guidelines, an Operational Risk Division is established within Risk & Credit Policy Group. Operational Risk Division is primarily responsible for the
oversight of operational risk management across the Bank including International locations. The implementation of operational risk management framework is supported by operational risk
management system and designated operational risk coordinators within different units across the Bank. The framework is in line with regulatory guidelines, international best practices,
flexible enough to implement in stages and permits the overall approach to evolve in response to organizational learning and future requirements.

In accordance with the Operational Risk framework, a database covering losses, control breaches and near misses is being maintained by the division. Major risk events are analysed from
the control breach perspective and mitigating controls are assessed on design and operating effectiveness. Quarterly updates on Operational Risk events are being presented to the Senior
Management and Board Risk & Compliance Committee of the Bank. Periodic workshops are conducted for Risk & Control Self-Assessment and key risk exposures are identified and
assessed against existing controls to evaluate improvement opportunities. Key Risk Indicators are also defined for monitoring of risk exposures. New products, systems, activities and
processes, are subject to comprehensive operational risk assessments, before implementation.

Business Continuity Plans have been implemented across the Bank, clearly defining the roles and responsibilities of respective stakeholders, and covering recovery strategy, IT and
structural backups, scenario and impact analyses and testing directives. Business Continuity Plans (BCP) for respective areas are in place and tested under domain of Operations Group.

49.4 Liquidity risk

Liquidity risk is defined as the risk that a bank, though solvent, either does not have sufficient financial resources available to meet all its obligations and commitments as they fall due, or
can secure them only at excessive costs.

UBL actively manages the risk through a set of qualitative and quantitative risk management techniques. The Global Assets and Liabilities Management Committee (GALCO) of the Bank is
responsible for the oversight of liquidity management and meets at least on a monthly basis or more frequently, if required. A centralized approach is adopted, based on an integrated
framework incorporating an assessment of all material known and expected cash flows and the availability of collateral which could be used to secure additional funding if required. The
framework entails careful monitoring and control of the daily liquidity position, and regular liquidity stress testing under a variety of scenarios. These encompass both normal and stressed
market conditions, including general market crises and the possibility that access to markets could be impacted by a stress event affecting some part of the Bank’s business.

It is the Bank’s policy to maintain adequate liquidity at all times, in order to meet all obligations, repay depositors and fulfill commitments to lend under both normal and stressed conditions,
without incurring unacceptable losses or incurring damage to the business franchises. Liquidity risk measures comprises of various risk management tools including concentration ratios,
Liquidity Coverage Ratio (LCR), Net Stable Funding Ratio (NSFR) and liquidity gaps.

The Bank has a comprehensive Contingency Funding Plan in place which clearly defines and identifies the trigger events that could cause a liquidity crisis and describes the actions to be
taken to manage the crisis and return the Bank to business as usual.
Annual Report 2024 273

87
 Notes to and forming part of the Consolidated Financial Statements

274
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

49.4.1 Maturities of assets and liabilities - based on contractual maturity of the assets and liabilities of the Group
2024

Over 7 to 14 Over 14 days to Over 1 to 2 Over 2 to 3 Over 3 to 6 Over 6 to 9 Over 9 months Over 1 to 2 Over 2 to 3 Over 3 to 5
Total Upto 1 Day Over 1 to 7 days Over 5 Years
days 1 Month Months Months Months Months to 1 year years years Years

United Bank Limited

------------------------------------------------------------------------------------------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------------------------------------------------------------------------------------------------------
Assets
Cash and balances with treasury banks 310,836,376 - 24,880,044 - 285,956,332 - - - - - - - - -
Balances with other banks 59,968,246 9,951,821 9,388,184 - 40,628,241 - - - - - - - - -
Lendings to financial institutions 18,492,483 - 18,492,483 - - - - - - - - - - -
Investments 5,889,765,841 256,975 - 3,714,376 100,993,164 1,588,208 8,527,921 440,035,183 170,915,031 160,831,307 600,926,620 481,939,250 1,020,777,992 2,899,259,814
Advances 1,443,481,944 236,801,157 25,681,958 48,884,976 439,093,785 33,752,061 30,375,024 123,579,099 20,439,826 120,222,224 27,556,175 49,355,415 133,072,297 154,667,947
Property and equipment 85,591,999 124 - - 906,635 656,090 655,898 1,931,852 253,823 370,609 2,314,199 4,709,767 8,116,837 65,676,165
Right-of-use assets 10,231,121 6,370 38,197 44,563 443,262 196,238 193,673 547,536 551,263 474,337 1,885,084 1,436,837 2,174,638 2,239,123
Intangible assets 2,792,016 23 - - 310,753 1,422 1,457 300,773 41,360 41,548 567,144 636,532 849,976 41,028
Other assets 247,937,251 20,680,568 671,116 698,789 19,123,790 4,319,669 7,459,116 31,234,116 7,105,639 5,564,069 12,857,564 18,174,298 34,758,793 85,289,724
8,069,097,277 267,697,038 79,151,982 53,342,704 887,455,962 40,513,688 47,213,089 597,628,559 199,306,942 287,504,094 646,106,786 556,252,099 1,199,750,533 3,207,173,801
Liabilities
Bills payable 44,221,818 - 117,295 - 44,104,523 - - - - - - - - -
Borrowings 4,855,373,516 49,933,585 1,763,525,433 5,106,493 2,913,007,975 52,330,404 2,910,379 39,813,986 173,230 96,320 1,688,052 2,426,323 6,574,226 17,787,110
Deposits and other accounts 2,639,875,985 51,405,412 7,452,647 4,150,184 2,462,566,856 18,696,910 12,645,373 21,273,402 11,937,751 5,794,882 20,109,070 9,315,179 4,894,292 9,634,027
Lease liabilities 12,381,018 23,832 102,776 119,906 663,420 469,156 424,696 1,123,670 968,594 759,314 2,446,406 1,702,666 1,979,187 1,597,395
Subordinated debt 10,000,000 - - - - - - - - - - - - 10,000,000
Deferred tax liabilities 39,311,263 - - - 39,311,263 - - - - - - - - -
Other liabilities 147,125,664 1,450,199 2,662,116 842,021 16,380,089 3,835,838 14,136,795 86,488,159 4,997,203 4,421,864 5,296,136 5,617,205 718,590 279,449
7,748,289,264 102,813,028 1,773,860,267 10,218,604 5,476,034,126 75,332,308 30,117,243 148,699,217 18,076,778 11,072,380 29,539,664 19,061,373 14,166,295 39,297,981
Net assets 320,808,013 164,884,010 (1,694,708,285) 43,124,100 (4,588,578,164) (34,818,620) 17,095,846 448,929,342 181,230,164 276,431,714 616,567,122 537,190,726 1,185,584,238 3,167,875,820

Represented by:
Share capital 12,241,797
Reserves 114,734,831
Surplus on revaluation of assets 77,309,424
Unappropriated profit 116,472,051
Non-controlling interest 49,910
320,808,013

88

Notes to and forming part of the Consolidated Financial Statements

For the year ended December 31, 2024
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024

2023

Over 7 to 14 Over 14 days to Over 1 to 2 Over 2 to 3 Over 3 to 6 Over 6 to 9 Over 9 months Over 1 to 2 Over 2 to 3 Over 3 to 5
Total Upto 1 Day Over 1 to 7 days Over 5 Years
days 1 Month Months Months Months Months to 1 year years years Years

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

Assets
Cash and balances with treasury banks 277,355,760 - 8,068,190 2,616,640 266,670,930 - - - - - - - - -
Balances with other banks 33,430,371 8,384,948 - - 14,109,231 - 2,818,606 1,268,373 1,212,001 - 5,637,212 - - -
Lendings to financial institutions 39,316,270 - 39,316,270 - - - - - - - - - - -
Investments 4,435,750,870 1,791,934 11,084,368 8,195 27,689,020 20,360,947 17,271,229 53,870,779 213,237,234 1,847,442,841 345,818,780 546,296,320 876,039,845 474,839,378
Advances 872,040,932 57,816,412 21,202,856 15,752,275 56,439,517 31,917,896 34,318,186 66,831,322 21,886,689 40,948,685 102,054,977 88,159,479 204,544,380 130,168,258
Property and equipment 76,460,159 11,268,311 - - 954,250 - 600,279 1,006,207 570,373 36,094 1,857,803 2,836,028 4,984,647 52,346,167
Right-of-use assets 8,611,473 4,595 30,791 35,892 148,143 149,467 149,467 425,726 424,639 424,639 1,613,043 1,297,551 1,864,797 2,042,723
Intangible assets 2,552,398 58,808 14,602 17,036 78,584 75,355 74,781 207,863 207,673 182,104 868,927 583,353 153,290 30,022
Deferred tax assets - - - - - - - - - - - - - -
Other assets 159,156,653 8,637,994 21,162,205 3,860,312 10,764,954 29,099,588 9,804,534 58,274,536 495,916 444,372 5,029,618 1,652,120 6,482,650 3,447,854
5,904,674,886 87,963,001 100,879,283 22,290,350 376,854,629 81,603,253 65,037,082 181,884,806 238,034,525 1,889,478,735 462,880,360 640,824,851 1,094,069,609 662,874,402

Liabilities

Bills payable 21,734,531 201,459 - - 21,533,072 - - - - - - - - -

Borrowings 2,823,887,914 4,079,650 6,366,198 2,022,087,076 719,112,561 12,256,200 21,388,688 5,102,796 64,831 89,110 957,755 2,172,607 8,185,231 22,025,211
Deposits and other accounts 2,634,716,102 56,547,426 10,467,134 7,909,382 1,930,214,697 198,777,770 39,612,193 78,823,998 89,345,564 88,909,376 59,499,126 36,571,482 34,234,320 3,803,634
Lease liabilities 10,474,561 192,858 - - 126,909 - 237,008 374,044 895,458 1,593,209 1,466,127 2,477,880 2,917,811 193,257
Subordinated debt 10,000,000 - - - - - - - - - - - - 10,000,000
Deferred tax liabilities 2,079,220 - - - 2,079,220 - - - - - - - - -
Other liabilities 115,909,963 20,453,064 8,156,836 4,943,080 3,425,834 4,601,268 27,708,016 14,693,554 4,701,933 5,101,784 10,584,121 252,290 1,409,125 9,879,058
5,618,802,291 81,474,457 24,990,168 2,034,939,538 2,676,492,293 215,635,238 88,945,905 98,994,392 95,007,786 95,693,479 72,507,129 41,474,259 46,746,487 45,901,160
Net assets 285,872,595 6,488,544 75,889,115 (2,012,649,188) (2,299,637,664) (134,031,985) (23,908,823) 82,890,414 143,026,739 1,793,785,256 390,373,231 599,350,592 1,047,323,122 616,973,242

Represented by:
Share capital 12,241,797
Reserves 116,771,416
Surplus on revaluation of assets 44,575,947
Unappropriated profit 97,379,056
Non-controlling interest 14,904,379
285,872,595
Annual Report 2024 275

89
 Notes to and forming part of the Consolidated Financial Statements

276
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2024
FOR THE YEAR ENDED DECEMBER 31, 2024

49.4.2 Maturities of assets and liabilities - based on expected maturities of the assets and liabilities of the Group

Assets and Liabilities having contractual maturity dates are bucketed as per their respective maturities. The maturity profile of non-contractual deposits and bills payable is estimated using an
Exponentially Weighted Moving Average model based on historical data. The methodology and the assumptions used to derive the maturity profile of non-contractual liabilities has been
approved by Global Asset and Liabilities Committee (GALCO).

United Bank Limited

2024
Over 3
Over 1 month to Over 6 months Over 1 year to Over 2 years to Over 3 years to Over 5 years to
Total Upto 1 month months to 6 Over 10 years
3 months to 1 year 2 years 3 years 5 years 10 years
months
------------------------------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------------------------------
Assets
Cash and balances with treasury banks 310,836,376 159,942,051 27,183,472 26,635,201 36,643,785 53,675,811 486,750 771,873 4,186,833 1,310,600
Balances with other banks 59,968,246 59,968,246 - - - - - - - -
Lendings to financial institutions 18,492,483 18,492,483 - - - - - - - -
Investments 5,889,765,841 7,276,064 10,136,697 440,608,808 345,538,439 600,472,987 482,588,775 1,016,885,441 2,902,748,356 83,510,274
Advances 1,443,481,944 756,332,965 70,075,547 133,225,987 150,174,382 43,884,322 68,219,763 102,241,206 105,126,389 14,201,383
Property and equipment 85,591,999 584,896 1,275,210 2,379,571 509,067 2,817,439 3,933,937 8,157,784 4,775,031 61,159,064
Right-of-use assets 10,231,121 204,038 403,111 566,073 1,060,322 1,948,904 1,485,482 2,248,261 2,314,930 -
Intangible assets 2,792,016 264 3,238 344,500 93,285 638,122 710,100 973,117 29,390 -
Other assets 247,937,251 27,446,475 22,733,414 23,815,250 13,403,703 13,802,211 19,738,772 32,476,555 24,801,848 69,719,023
8,069,097,277 1,030,247,482 131,810,689 627,575,390 547,422,983 717,239,796 577,163,579 1,163,754,237 3,043,982,777 229,900,344
Liabilities
Bills payable 44,221,818 14,679,381 10,746,051 18,790,575 5,811 - - - - -
Borrowings 4,855,373,516 4,722,607,219 64,748,741 39,272,296 269,549 1,688,052 2,426,323 6,574,226 17,587,110 200,000
Deposits and other accounts 2,639,875,985 498,483,040 376,061,053 348,712,107 483,054,621 673,327,577 43,330,256 61,191,272 151,069,666 4,646,393
Lease liabilities 12,381,018 554,379 921,558 1,158,499 1,781,466 2,522,234 1,755,441 2,040,533 1,562,814 84,094
Subordinated debt 10,000,000 - - - - - - - 10,000,000 -
Deferred tax liabilities 39,311,263 - - - 9,827,814 9,827,815 9,827,817 9,827,817 - -
Other liabilities 147,125,664 62,023,009 27,110,551 11,652,777 22,136,572 9,292,847 5,988,996 284,472 4,072,385 4,564,055
7,748,289,264 5,298,347,028 479,587,954 419,586,254 517,075,833 696,658,525 63,328,833 79,918,320 184,291,975 9,494,542
Net assets 320,808,013 (4,268,099,546) (347,777,265) 207,989,136 30,347,150 20,581,271 513,834,746 1,083,835,917 2,859,690,802 220,405,802
Represented by:
Share capital 12,241,797
Reserves 114,734,831
Surplus on revaluation of assets 77,309,424
Unappropriated profit 116,472,051
Non-controlling interest 49,910
320,808,013

90

Notes to and forming part of the Consolidated Financial Statements

For the
NOTES TO ANDyear ended
FORMING PART OF December 31,
THE CONSOLIDATED FINANCIAL
2024STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024

2023
Over 3
Over 1 month to Over 6 months Over 1 year to Over 2 years to Over 3 years to Over 5 years to
Total Upto 1 month months to 6 Over 10 years
3 months to 1 year 2 years 3 years 5 years 10 years
months
------------------------------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------------------------------
Assets
Cash and balances with treasury banks 277,355,760 143,001,191 10,675,676 10,462,587 15,145,941 21,069,986 16,167,569 23,868,881 35,644,777 1,319,152
Balances with other banks 33,430,371 29,419,647 2,818,606 - 1,192,118 - - - - -
Lendings to financial institutions 39,316,270 39,316,270 - - - - - - - -
Investments 4,435,750,870 19,819,430 36,995,911 51,988,367 1,781,116,168 648,051,289 569,296,092 860,945,394 456,643,203 10,895,016
Advances 872,040,932 159,009,604 65,877,792 62,771,391 62,235,855 101,830,788 88,324,698 203,176,606 96,785,349 32,028,849
Property and equipment 76,460,159 12,093,090 670,241 979,650 521,718 2,136,328 2,492,563 4,960,202 1,967,242 50,639,126
Right-of-use assets 8,611,473 106,392 302,960 431,460 860,717 1,634,769 1,315,027 1,889,913 1,936,033 134,201
Intangible assets 2,552,398 75,451 150,285 205,212 390,992 877,372 628,734 222,950 1,402 -
Other assets 159,156,653 41,575,870 41,654,810 57,496,894 1,397,354 5,659,807 1,841,170 5,630,449 2,424,132 1,476,167
5,904,674,886 444,416,945 159,146,281 184,335,561 1,862,860,863 781,260,339 680,065,853 1,100,694,395 595,402,138 96,492,511

Liabilities
Bills payable 21,734,531 7,074,366 5,362,501 9,202,476 95,188 - - - - -
Borrowings 2,823,887,914 2,750,156,594 33,638,488 5,109,196 966,398 1,684,598 2,511,768 7,795,661 21,895,986 129,225
Deposits and other accounts 2,634,716,102 259,807,188 208,407,556 228,320,319 396,031,807 385,196,997 261,412,706 382,756,896 511,175,955 1,606,678
Lease liabilities 10,474,561 194,954 192,753 379,230 774,539 1,486,718 1,389,245 2,403,089 3,391,731 262,302
Subordinated debt 10,000,000 - - - - 10,000,000 - - - -
Deferred tax liabilities 2,079,220 - - - 519,805 519,805 519,805 519,805 - -
Other liabilities 115,909,963 29,428,330 13,122,299 18,167,408 44,223,822 5,820,155 597,475 1,519,339 2,067,581 963,554
5,618,802,291 3,046,661,432 260,723,597 261,178,629 442,611,559 404,708,273 266,430,999 394,994,790 538,531,253 2,961,759
Net assets 285,872,595 (2,602,244,487) (101,577,316) (76,843,068) 1,420,249,304 376,552,066 413,634,854 705,699,605 56,870,885 93,530,752

Represented by:
Share capital 12,241,797
Reserves 116,771,416
Surplus on revaluation of assets 44,575,947
Unappropriated profit 97,379,056
Non-controlling interest 14,904,379
285,872,595
Annual Report 2024 277

91
Notes to and forming part of the Consolidated Financial Statements Notes to and forming part of the Consolidated Financial Statements
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
For the
FOR THE year
YEAR ended
ENDED DECEMBERDecember
31, 2024 31, 2024 For theYEAR
FOR THE year ended
ENDED December
DECEMBER 31, 2024 31, 2024

49.5 Information Security Risk • Enterprise Wide FCC Risk Assessment Methodologies/Internal Risk Assessment Review (EWRA/IRAR) with focus on
AML, CFT, Sanctions / CPF & Transnational Risks etc.focus on AML, CFT, Sanctions / CPF & Transnational Risks etc.
Information security risk is the probability of exposure or loss resulting from a cyberattack or data breach on the Bank. It is the
potential for unauthorised use, disruption, modification or destruction of information such incidents can violate privacy, disrupt
• Management Information (MI) Suite.
business, damage assets and facilitate other crimes like frauds.
2. The Bank rolled out comprehensive Role based FCC training modules and Staff capacity assessment carried out under FCC
UBL has a dedicated Information Security Division, functioning within Risk and Credit Policy Group which manages information
security risks to protect the technology and information assets by preventing, detecting and responding to threats, both internal Transformation People Workstream.
and external. 3. On Regtech work stream, the Bank upgraded and implemented best in class Transaction Monitoring (TM) and payments
Offensive security unit within the information security division manages Penetration Testing by simulating the real world hacking screening systems. These systems were independently reviewed by a reputed international third party expert.
scenarios. This unit remains responsible for establishing, implementing, maintaining and continually improving an information /
cyber security management system through control design and controls validation, primarily in the domain of applications /
4. Effective risk governance sets a solid foundation for comprehensive risk management discipline. The Bank’s risk governance
network penetration testing, and also supporting the other domains of information security i.e. security monitoring and threat
framework is based on “three line of defense” governance model, wherein each line has a specific role with defined
hunting.
responsibilities and work in close collaboration to identify, assess and mitigate risks. Key management and board committee
Moreover, to overcome social engineering frauds, extensive awareness campaigns are launched to provide specific training and covering FCC and compliance matters is Compliance Committee of Management (CCM) and Board Risk & Compliance
guidance on information security related matters such as phishing, identity theft, online transaction frauds, etc. through various Committee (BRCC).
mechanisms such as social media, website, email advisories, SMS, webinars, phishing simulation exercises, new joiner’s
orientation, and targeted awareness sessions for executive leadership. These initiatives by Governance, Risk and Compliance Moreover, FCC Transformation & Controls Fortification Programme is an ongoing initiative that is managed by Compliance
Unit are focused on elevating level of awareness for both internal as well as external customers to better equip them to counter Governance team in consultation with FCC teams across first and second line of defence.
security challenges. This unit manages the security compliance efforts, risk management and the development and
49.7 Derivative Risk
implementation of information security policies, procedures, guidelines and standards. Cyber & Infrastructure Security unit
ensures that the IT Infrastructure function and services are resilient, secure, well-designed, accessible, and adaptable to the There are a number of risks undertaken by the Bank, which need to be monitored and assessed.
organisation's changing demands. This unit is responsible for the continuous improvement of information / cyber security
architecture that protects against both internal and external threats. Credit risk

Significant progress has been made in securing the international territories as well by deploying 24/7 Security Operation Center Credit risk refers to the risk of non-performance or default by a party to a derivatives transaction, resulting in an adverse impact
(SOC) at UBL. This unit deals with security issues. The unit continuously shares awareness news, alerts, announcements, on the Bank’s profitability. Credit risk associated with derivatives transactions is categorised into settlement risk and pre-
advisories and threats intelligence research reports to relevant stakeholder for securing the bank’s assets. settlement risk. Credit proposals for derivatives transactions are approved by the Credit Committee. The credit exposure of each
counterparty is estimated and monitored against approved counterparty limits by Treasury Middle Office (TMO) on a daily basis.
Application Security in Information Security (IS) manages IS Risk Analysis on software applications, APIs, Mobile Apps, Digital
Channels, Cloud Computing, ATM including review of security aspects of assets, enterprise architecture design controls of the
Applications in accordance with applicable policies, standards & controls. Market risk

Further, The Payment Card Industry Data Security Standard (PCI-DSS) program was initiated which aims to enhance security The Bank, as a policy, hedges back-to-back all options transactions. In addition, the Bank does not carry any exchange risk on
for customer card data by setting guidelines for any company that accepts, stores, processes, or transmits card information. This its Cross Currency Swaps portfolio as it hedges the exposure in the interbank market. To manage the interest rate risk of
compliance framework is an industry-mandated set of standards intended to keep customer card data safe when it is used by Interest Rate Derivatives, the Bank has implemented various limits which are monitored and reported by TMO on a daily basis.
merchants and service providers.
Liquidity risk
Moving ahead, Bank’s main focus remains on the continuous improvement of UBL’s security posture and to effectively prevent,
monitor and rapidly respond to emerging threats and vulnerabilities. Derivatives transactions, usually being non-funded in nature, do not carry a specific funding liquidity risk.
49.6 Financial Crime Compliance (FCC) risk management and Pakistan FATF & APG action plan The liquidity risk arises from the fact that in Pakistan, interest rate derivatives generally have a uni-directional demand, and no
The Bank monitors key risks on an ongoing basis to strengthen risk management in an effort to meet challenges emanating from perfect hedge is available. The Bank mitigates its risk by limiting the portfolio in terms of tenor, notional and sensitivity limits, and
a volatile market environment and the complexity driven by the changing Regulatory frameworks. By utilising comprehensive risk can also hedge its risk by taking on and off balance sheet positions in the interbank market, where available.
management processes and sophisticated control systems, the Bank aims to minimise the negative impact that may arise from
varied degrees of risk exposures. Operational risk

In response to changing landscape around FCC risks across the globe and in response to Financial Action Task Force (FATF) & The staff involved in the trading, settlement and risk management of derivatives is carefully trained to deal with the complexities
Asia Pacific Group (APG) action plan and State Bank of Pakistan's Anti-Money Laundering, Combatting the Financing of involved in the process. Adequate systems and controls are in place to carry out derivatives transactions smoothly. Each
Terrorism & Countering Proliferation Financing (AML / CFT / CPF) Regulations, the Bank embarked upon a comprehensive transaction is processed in accordance with the product program or a transaction memo, which contains detailed guidance on
Financial Crime Compliance Transformation Program under the guidance of Board of Directors (BOD), specifically geared the accounting and operational aspects of the transaction to further mitigate operational risk. In addition, TMO and the
towards uplifting FCC Framework and fortifying controls across Process, People and Technology (Regtech) work streams in line Compliance and Control Department are assigned the responsibility of monitoring any deviation from policies and procedures.
with international best practices and Standards. Targeted investments were done across these work streams, brief highlights are The Bank’s Audit and Inspection Group also reviews this function, with a regular review of systems, transactional processes,
as under: accounting practices and end-user roles and responsibilities.

1. Under FCC Process Workstream; the Bank uplifted the framework at Design level with key deliverables as: The Bank uses FX and Derivatives module of Treasury System which provides an end-to-end valuation solution, supports the
• FCC Strategy routine transactional process and provides analytical tools to measure various risk exposures, carry out stress tests and
• Bank’s FCC Risk Appetite Statement sensitivity analysis.
• Target Operating Model (TOM) across three lines of defense
• FCC Policies & Standards TMO produces various reports on a periodic basis which are reviewed by senior management. These reports provide details of
the derivatives business profile such as outstanding positions, profitability, risk exposures and the status of compliance with
limits.

92
278 United Bank Limited Annual Report 2024 279
93
Notes to and forming part of the Consolidated Financial Statements Consolidated Statement of Financial Position in USD
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
For theYEAR
FOR THE year ended
ENDED December
DECEMBER 31, 2024 31, 2024 As at December 31, 2024
CONSOLIDATED STATEMENT OF FINANCIAL POSITION IN USD
AS AT DECEMBER 31, 2024
50. YEMEN OPERATIONS 2024 2023
------------ (US Dollars in ‘000) ---------
Despite risky situation and continued operational losses the Bank has been striving to honor liabilities for past eight years. ASSETS
However, on account of several factors, including but not limited to fragile political and economic situation in Yemen, Cash and balances with treasury banks 1,115,909 984,017
bankruptcy of CBY Sana'a, existence of two Central Banks (i.e. CBY Sana'a and CBY Aden), has resulted in illiquid market, Balances with other banks 215,287 118,606
which does not appears to be reversed in near future.
Lendings to financial institutions 66,388 139,488
Investments 21,144,376 15,737,387
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 Advances 5,182,129 3,093,872
cognizant of the associated risks arising out of its exit from Yemen. Property and Equipment 307,277 271,270
Right-of-use of assets 36,730 30,552
51. NON-ADJUSTING EVENT AFTER THE BALANCE SHEET DATE Intangible assets 10,023 9,056
Deferred tax assets - -
51.1 The Board of Directors, in its meeting held on February 19, 2025 has proposed a final cash dividend of Rs. 11.0 per share for Other assets 890,100 564,664
the year 2024. This is in addition to Rs 33.0 already paid during the year bringing the total dividend for the year to Rs. 44.0 per 28,968,219 20,948,912
share (2023: Rs. 44.0 per share). This appropriation is expected to be approved by the shareholders in forthcoming Annual
General Meeting. The consolidated financial statements for the year ended December 31, 2024 do not include the effect of
LIABILITIES
this appropriation which will be accounted for in the consolidated financial statements for the year ending December 31, 2025.
Bills payable 158,757 77,111
Borrowings 17,430,887 10,018,736
52. GENERAL Deposits and other accounts 9,477,207 9,347,582
Lease liabilities 44,448 37,162
52.1 Comparative information has been reclassified, rearranged or additionally incorporated in these consolidated financial Subordinated debt 35,900 35,479
statements for the purposes of better presentation. Deferred tax liabilities 141,128 7,377
Other liabilities 528,185 411,231
52.2 Figures have been rounded off to the nearest thousand rupees unless otherwise stated. 27,816,512 19,934,678

53. DATE OF AUTHORISATION

NET ASSETS 1,151,707 1,014,234

These consolidated financial statements were authorised for issue on February 19, 2025 by the Board of Directors of the
Bank. REPRESENTED BY:
Share capital 43,948 43,432
Reserves 411,900 414,288
Surplus on revaluation of assets - net 277,543 158,149
Unappropriated profit 418,137 345,486
Total equity attributable to the equity holders of the Bank 1,151,528 961,355

Non-controlling interest 179 52,879

1,151,707 1,014,234

These figures have been converted at Rs. 278.55 per US Dollar from the audited consolidated financial statements

Syed Manzoor Hussain Zaidi Muhammad Jawaid Iqbal Shazia Syed Daniel Michael Howlett Sir Mohammed Anwar Pervez, OBE, HPk
Chief Financial Officer President & Director Director Chairman
Chief Executive Officer

             

Chief Financial Officer President & Director Director Chairman
Chief Executive Officer

280 United Bank Limited Annual Report 2024 281

94
Consolidated Profit and Loss Account in USD Category of Shareholders
Category of Shareholders
For the year ended December 31, 2024 As onDecember
As on December31, 202431, 2024
CONSOLIDATED PROFIT AND LOSS ACCOUNT IN USD
FOR THE YEAR ENDED DECEMBER 31, 2024
2024 2023
Particulars No of Folio Balance Share Percentage
------------ (US Dollars in ‘000) ---------
DIRECTORS, CEO & CHILDREN 14 29,247,454.00 2.39
Mark-up / return / interest earned 3,893,884 1,898,851
Mark-up / return / interest expensed 3,270,844 1,370,310 BANKS, DFI & NBFI 19 17,678,799.00 1.44
Net mark-up / interest income 623,040 528,541 INSURANCE COMPANIES 18 53,651,802.00 4.38

Non mark-up / interest income MUTUAL FUNDS 47 15,530,860.00 1.27

Fee and commission income 77,312 70,074 GENERAL PUBLIC (LOCAL) 21,011 107,298,227.00 8.76
Dividend income 6,253 5,728
Foreign exchange income 45,091 45,114 GENERAL PUBLIC (FOREIGN) 1,450 20,900,823.00 1.71
Gain / (Loss) on derivatives 4,419 (232) OTHERS 68 84,088,252.00 6.87
Gain on securities - net 152,909 1,890
Capital gain on derecognition of financial assets measured at amortised cost 10,391 - GOVERNMENT OF PAKISTAN 1 1,714.00 0.00
Other income 4,089 5,404 FOREIGN COMPANIES 43 668,030,561.00 54.57
Total non mark-up / interest income 300,464 127,978
Total income 923,504 656,519 GOVT. OWNED ENTITIES / BANKS 1 2,200,000.00 0.18
JOINT STOCK COMPANIES 139 224,733,098.00 18.36
Non mark-up / interest expenses
Operating expenses 348,606 248,682 CHARITABLE TRUSTS 12 818,097.00 0.07
Workers' Welfare Fund 11,293 7,659 Total 22,823 1,224,179,687.00 100.00
Other charges 270 853
Total non mark-up / interest expenses 360,169 257,194

Share of gain / (loss) of associates 3,214 (3,511)

Profit before credit loss allowance 566,549 395,814
Credit loss allowance / provisions and write-offs - net 45,864 3,477
Profit before taxation from continuing operations 520,685 392,337

Taxation 252,012 191,987

Profit after taxation from continuing operations 268,673 200,350

Discontinued operations

Profit from discontinued operations - net of tax 3,370 -

272,043 200,350
Attributable to:
Equity holders of the Bank
from continuing operations 268,620 195,646
from discontinued operations 1,192 -
269,812 195,646
Non-controlling interest
from continuing operations 54 4,704
from discontinued operation 2,177 -
2,231 4,704
272,043 200,350

------------ (Rupees) ------------

Earnings per share for profit from continuing operations attributable to

the equity holders of the Bank
Basic and diluted 0.22 0.16
Earnings per share for profit attributable to the equity holders of the Bank
Basic and diluted 0.22 0.16

These figures have been converted at Rs. 278.55 per US Dollar from the audited consolidated financial statements

282 United Bank Limited Annual Report 2024 283

Details of Mutual Funds & Modarabas Pattern of Shareholding
As on December 31, 2024
Details of Mutual Funds & Modarabas
As on December 31, 2024
As on December 31, 2024
MUTUAL FUNDS <---HAVING SHARES--->
NO. OF SHAREHOLDERS SHARES HELD PERCENTAGE
From To
Folio No Name Code Balance Held Percentage
5535 1 100 294,161 0.02
003277003785 TRUSTEE CHERAT CEMENT CO.LTD.EMP.PRO.FND 006 11648 0.0010
13228 101 500 5,680,998 0.46
005371000028 CDC - TRUSTEE MCB PAKISTAN STOCK MARKET FUND 006 1015000 0.0829
1134 501 1000 948,080 0.08
005645000024 CDC - TRUSTEE HBL INVESTMENT FUND 006 100000 0.0082
005652000023 CDC - TRUSTEE JS LARGE CAP. FUND 006 99790 0.0082 1528 1001 5000 3,743,316 0.31
005777000029 CDC - TRUSTEE HBL GROWTH FUND 006 337000 0.0275 388 5001 10000 2,986,020 0.24
005959000027 CDC - TRUSTEE ATLAS STOCK MARKET FUND 006 2866649 0.2342 149 10001 15000 1,895,388 0.15
006171000021 CDC - TRUSTEE FAYSAL STOCK FUND 006 2432 0.0002
103 15001 20000 1,854,656 0.15
006197000029 CDC - TRUSTEE ALFALAH GHP VALUE FUND 006 33500 0.0027
77 20001 25000 1,789,053 0.15
006213000025 CDC - TRUSTEE UNIT TRUST OF PAKISTAN 006 63100 0.0052
60 25001 30000 1,700,591 0.14
006411000021 CDC - TRUSTEE AKD INDEX TRACKER FUND 006 161076 0.0132
007252000020 CDC - TRUSTEE FAYSAL ASSET ALLOCATION FUND 006 1200 0.0001 47 30001 35000 1,561,403 0.13
007377000026 CDC - TRUSTEE UBL STOCK ADVANTAGE FUND 006 930332 0.076 35 35001 40000 1,340,653 0.11
009480000021 CDC - TRUSTEE NBP STOCK FUND 006 251050 0.0205 21 40001 45000 896,892 0.07
009506000026 CDC - TRUSTEE NBP BALANCED FUND 006 15792 0.0013
43 45001 50000 2,095,969 0.17
010603000021 CDC - TRUSTEE APF-EQUITY SUB FUND 006 174360 0.0142
20 50001 55000 1,056,828 0.09
010728000027 CDC - TRUSTEE HBL - STOCK FUND 006 105000 0.0086
22 55001 60000 1,292,304 0.11
011049000029 MC FSL - TRUSTEE JS GROWTH FUND 006 144468 0.0118
011262000023 CDC - TRUSTEE MCB PAKISTAN ASSET ALLOCATION FUND 006 49000 0.0040 9 60001 65000 566,498 0.05
011809000026 CDC - TRUSTEE ALFALAH GHP STOCK FUND 006 782757 0.0639 7 65001 70000 477,317 0.04
011924000022 CDC - TRUSTEE ALFALAH GHP ALPHA FUND 006 218409 0.0178 15 70001 75000 1,104,400 0.09
012120000028 CDC - TRUSTEE NIT-EQUITY MARKET OPPORTUNITY FUND 006 2043734 0.1669
11 75001 80000 869,940 0.07
012195000021 CDC - TRUSTEE ABL STOCK FUND 006 566398 0.0463
4 80001 85000 336,022 0.03
012310000025 CDC - TRUSTEE AL HABIB STOCK FUND 006 497362 0.0406
8 85001 90000 711,182 0.06
012336000023 CDC - TRUSTEE LAKSON EQUITY FUND 006 548775 0.0448
012625000027 CDC - TRUSTEE NBP SARMAYA IZAFA FUND 006 7876 0.0006 8 90001 95000 735,089 0.06
014134000025 CDC - TRUSTEE ATLAS INCOME FUND - MT 006 90290 0.0074 33 95001 100000 3,289,551 0.27
014472000025 CDC - TRUSTEE UBL ASSET ALLOCATION FUND 006 20233 0.0017 8 100001 105000 818,301 0.07
014514000028 CDC - TRUSTEE FIRST CAPITAL MUTUAL FUND 006 15000 0.0012
7 105001 110000 752,093 0.06
014860000027 CDC - TRUSTEE UBL RETIREMENT SAVINGS FUND - EQUITY SUB FUND 006 150269 0.0123
11 110001 115000 1,247,566 0.10
014902000021 CDC - TRUSTEE NATIONAL INVESTMENT (UNIT) TRUST 006 560960 0.0458
4 115001 120000 473,468 0.04
015388000025 CDC - TRUSTEE ABL PENSION FUND - EQUITY SUB FUND 006 13000 0.0011
016030000025 CDC - TRUSTEE AWT STOCK FUND 006 20200 0.0017 7 120001 125000 862,750 0.07
016188000028 CDC-TRUSTEE NITPF EQUITY SUB-FUND 006 41000 0.0033 3 125001 130000 386,835 0.03
016535000024 CDC - TRUSTEE LAKSON TACTICAL FUND 006 15632 0.0013 6 130001 135000 798,000 0.07
017277000026 CDC - TRUSTEE AL HABIB ASSET ALLOCATION FUND 006 27000 0.0022 5 135001 140000 694,866 0.06
017442000025 CDC - TRUSTEE NBP FINANCIAL SECTOR FUND 006 34959 0.0029
5 140001 145000 720,790 0.06
017483000021 CDC - TRUSTEE UBL FINANCIAL SECTOR FUND 006 495643 0.0405
13 145001 150000 1,941,573 0.16
017640000020 CDC - TRUSTEE ALLIED FINERGY FUND 006 18252 0.0015
018002000026 CDC - TRUSTEE NIT ASSET ALLOCATION FUND 006 45655 0.0037 5 150001 155000 758,419 0.06
018010000025 CDC - TRUSTEE NIT PAKISTAN GATEWAY EXCHANGE TRADED FUND 006 24034 0.002 5 155001 160000 792,095 0.06
018051000021 CDC - TRUSTEE UBL PAKISTAN ENTERPRISE EXCHANGE TRADED FUND 006 28518 0.0023 7 160001 165000 1,138,625 0.09
018234000029 CDC - TRUSTEE NBP PAKISTAN GROWTH EXCHANGE TRADED FUND 006 28350 0.0023 4 165001 170000 668,417 0.05
018291000023 CDC - TRUSTEE NBP FINANCIAL SECTOR INCOME FUND - MT 006 2471049 0.2019
4 170001 175000 697,074 0.06
018721000029 CDC - TRUSTEE ALFALAH GHP DEDICATED EQUITY FUND 006 42594 0.0035
4 175001 180000 710,559 0.06
018770000024 CDC - TRUSTEE HBL FINANCIAL SECTOR INCOME FUND PLAN I - MT 006 245004 0.02
018911000026 CDC - TRUSTEE MCB PAKISTAN DIVIDEND YIELD PLAN 006 35000 0.0029 3 180001 185000 544,105 0.04
019323000027 CDC - TRUSTEE JS GLOBAL BANKING SECTOR EXCHANGE TRADED FUND 006 81510 0.0067 1 185001 190000 185,700 0.02
4 190001 195000 773,769 0.06
15 195001 200000 2,991,648 0.24
4 200001 205000 807,985 0.07
3 205001 210000 626,333 0.05

284 United Bank Limited Annual Report 2024 285

Pattern of Shareholding Pattern of Shareholding
As on December 31, 2024 As on December 31, 2024

<---HAVING SHARES---> <---HAVING SHARES--->

NO. OF SHAREHOLDERS SHARES HELD PERCENTAGE NO. OF SHAREHOLDERS SHARES HELD PERCENTAGE
From To From To
6 210001 215000 1,276,828 0.10 2 525001 530000 1,052,847 0.09
6 215001 220000 1,306,209 0.11 1 530001 535000 535,000 0.04
4 220001 225000 895,147 0.07 1 535001 540000 535,700 0.04
2 225001 230000 456,581 0.04 2 545001 550000 1,098,775 0.09
1 230001 235000 235,000 0.02 1 555001 560000 555,600 0.05
3 235001 240000 714,700 0.06 1 560001 565000 560,960 0.05
2 240001 245000 486,079 0.04 1 565001 570000 566,398 0.05
6 245001 250000 1,491,504 0.12 1 580001 585000 583,125 0.05
4 250001 255000 1,008,176 0.08 1 585001 590000 587,005 0.05
4 255001 260000 1,032,748 0.08 3 595001 600000 1,799,220 0.15
1 260001 265000 262,022 0.02 1 620001 625000 624,058 0.05
1 265001 270000 268,000 0.02 2 625001 630000 1,252,872 0.10
2 270001 275000 541,581 0.04 1 645001 650000 650,000 0.05
2 285001 290000 580,000 0.05 1 650001 655000 651,606 0.05
1 290001 295000 293,413 0.02 1 660001 665000 662,400 0.05
4 295001 300000 1,195,120 0.10 1 675001 680000 675,500 0.06
1 300001 305000 300,500 0.02 1 680001 685000 680,490 0.06
4 310001 315000 1,253,446 0.10 1 695001 700000 695,427 0.06
1 315001 320000 317,204 0.03 1 705001 710000 710,000 0.06
2 320001 325000 644,382 0.05 1 710001 715000 712,500 0.06
2 325001 330000 658,000 0.05 1 730001 735000 734,298 0.06
1 335001 340000 337,000 0.03 2 745001 750000 1,499,206 0.12
2 350001 355000 703,500 0.06 1 780001 785000 782,757 0.06
2 360001 365000 727,247 0.06 1 795001 800000 800,000 0.07
2 365001 370000 732,835 0.06 1 805001 810000 809,665 0.07
2 370001 375000 746,500 0.06 1 815001 820000 816,899 0.07
3 375001 380000 1,131,999 0.09 1 820001 825000 820,530 0.07
1 385001 390000 387,467 0.03 2 840001 845000 1,683,956 0.14
1 390001 395000 392,339 0.03 1 850001 855000 850,001 0.07
3 395001 400000 1,200,000 0.10 1 895001 900000 900,000 0.07
1 410001 415000 415,000 0.03 1 920001 925000 922,837 0.08
1 415001 420000 418,962 0.03 1 930001 935000 930,332 0.08
2 425001 430000 854,804 0.07 1 965001 970000 969,111 0.08
1 430001 435000 431,300 0.04 1 975001 980000 978,500 0.08
1 440001 445000 443,000 0.04 1 980001 985000 983,150 0.08
2 445001 450000 898,793 0.07 1 985001 990000 989,945 0.08
1 455001 460000 455,480 0.04 2 995001 1000000 2,000,000 0.16
1 475001 480000 475,243 0.04 1 1000001 1005000 1,000,800 0.08
1 480001 485000 484,197 0.04 1 1010001 1015000 1,015,000 0.08
1 490001 495000 494,080 0.04 1 1015001 1020000 1,019,916 0.08
5 495001 500000 2,488,248 0.20 1 1050001 1055000 1,055,000 0.09
1 500001 505000 502,045 0.04 1 1085001 1090000 1,085,900 0.09
1 510001 515000 510,474 0.04 1 1100001 1105000 1,101,097 0.09
1 515001 520000 517,698 0.04 1 1155001 1160000 1,157,791 0.09
2 520001 525000 1,045,000 0.09 1 1175001 1180000 1,180,000 0.10

286 United Bank Limited Annual Report 2024 287

Pattern of Shareholding Pattern of Shareholding
As on December 31, 2024 As on December 31, 2024

<---HAVING SHARES---> <---HAVING SHARES--->

NO. OF SHAREHOLDERS SHARES HELD PERCENTAGE NO. OF SHAREHOLDERS SHARES HELD PERCENTAGE
From To From To
1 1195001 1200000 1,197,246 0.10 1 7645001 7650000 7,650,000 0.62
1 1210001 1215000 1,212,343 0.10 1 8850001 8855000 8,852,544 0.72
1 1255001 1260000 1,255,646 0.10 1 11165001 11170000 11,170,000 0.91
1 1320001 1325000 1,321,235 0.11 1 12440001 12445000 12,442,568 1.02
1 1365001 1370000 1,368,943 0.11 1 13945001 13950000 13,950,000 1.14
1 1425001 1430000 1,429,000 0.12 1 16105001 16110000 16,108,420 1.32
1 1435001 1440000 1,438,944 0.12 1 27995001 28000000 28,000,000 2.29
1 1470001 1475000 1,474,200 0.12 1 39995001 40000000 40,000,000 3.27
1 1475001 1480000 1,479,849 0.12 1 43050001 43055000 43,055,000 3.52
1 1485001 1490000 1,489,100 0.12 1 45915001 45920000 45,916,255 3.75
2 1545001 1550000 3,097,830 0.25 1 118660001 118665000 118,663,770 9.69
1 1575001 1580000 1,580,000 0.13 1 631725001 631730000 631,728,895 51.60
1 1600001 1605000 1,603,131 0.13 Total 1,224,179,687 100
1 1710001 1715000 1,710,184 0.14
1 1785001 1790000 1,787,000 0.15
1 1925001 1930000 1,925,232 0.16
1 1955001 1960000 1,956,808 0.16
2 1995001 2000000 4,000,000 0.33
1 2020001 2025000 2,021,586 0.17
1 2025001 2030000 2,026,192 0.17
1 2040001 2045000 2,043,734 0.17
1 2195001 2200000 2,200,000 0.18
1 2215001 2220000 2,220,000 0.18
1 2245001 2250000 2,245,894 0.18
1 2270001 2275000 2,275,000 0.19
1 2345001 2350000 2,348,870 0.19
1 2390001 2395000 2,394,492 0.20
1 2445001 2450000 2,448,940 0.20
1 2450001 2455000 2,453,287 0.20
1 2470001 2475000 2,471,049 0.20
1 2555001 2560000 2,556,413 0.21
1 2610001 2615000 2,610,321 0.21
1 2645001 2650000 2,645,595 0.22
1 2840001 2845000 2,843,560 0.23
1 2865001 2870000 2,866,649 0.23
1 2955001 2960000 2,956,245 0.24
1 3175001 3180000 3,176,500 0.26
1 3260001 3265000 3,262,500 0.27
1 3890001 3895000 3,894,802 0.32
1 4175001 4180000 4,176,017 0.34
1 4685001 4690000 4,689,858 0.38
1 4900001 4905000 4,905,000 0.40
1 4995001 5000000 5,000,000 0.41
1 5755001 5760000 5,755,171 0.47
1 6920001 6925000 6,924,562 0.57

288 United Bank Limited Annual Report 2024 289

Shares Trading (Sale/ Purchase ) By Directors, Sponsors,
Executives
Shares Tradingof UBL
(Sale/ and their
Purchase) Spouses
By Directors, and Executives
Sponsors, Minor Children
of UBL and their Directors / Memberships in other Corporate Bodies – Sir Mohammed Anwar Pervez, OBE, HPk

Spouse and
During Minor
the Children
Period During
From 01the Period From
January 01 January
2024 to 31 2024 to 31 December
December 2024 Position as of 31 December 2024

2024
S. No. Name of Corporate Bodies Position held
Name Sale / Purchase / Gift No of Shares
Gift Out to 200,000 1. Bestway Group Limited, Guernsey Chairman Emeritus
Sir Mohammed Anwar Pervez OBE, HPk
Dawood Pervez
2. Bestway Group UK Limited, Guernsey Chairman Emeritus
Sir Mohammed Anwar Pervez OBE, HPk Purchase 450,000
Lord Zameer M. Choudrey Purchase 2,102,607 3. Bestway Group Investments Limited, Guernsey Chairman Emeritus
Mrs. Rakshanda Choudrey Spouse of Zameer Choudrey Purchase 55,000
Haider Zameer Choudrey Purchase 114,000 4. Bestway Northern Limited, England & Wales Director
Umair Zameer Choudrey Purchase 95,000
Muhammad Irfan A Sheikh Purchase 150,000 Bestway Healthcare Holdings Limited, England & Wales Director
5.
Tahira Sheikh Spouse of Muhammad Irfan A Sheikh Purchase 9,000
6. Bestway Healthcare Finco Limited, England & Wales Director
Farzana Younus Sheikh Spouse of M.Younus Sheikh Purchase 526,192
Bestway Cement Limited Purchase 20,808,357 7. Bestway Panacea Holdings Limited, England & Wales Director
Muhammad Jawaid Iqbal Purchase 435,000
Abdul Malik Purchase 2,000 8. Buybest Limited, England & Wales Director
Nadia Tabassum Purchase 70,000
Imran Sultan (Spouse of Nadia Tabassum) Purchase 30,000 09. Bestway Cement Limited, Pakistan Chairman
Alee Khalid Ghaznavi Sale 19,500 10. Bestway Packaging Limited, Pakistan Director
Syed Zia Ijaz Sale 29,363
Syed Asrar Hussain Sale 1,500 11. Bestway Consultancy Services Pvt. Limited, Pakistan Director
Irfan Farooq Memon Sale 38,824
Suleman Pervez Sale 7 12. Bestway Renewable Technologies Limited, Pakistan Director
Muhammad Nauman Ghani Sale 2,500 13. Bestway Foundation, UK Chairman
Niaz Ahmed Siddiqui Sale 7,500
Total 25,146,350 14. Bestway Foundation, Pakistan Patron-in-Chief

Directors / Memberships in other Corporate Bodies – Lord Zameer M. Choudrey, CBE, SI Pk

Position as of 31 December 2024

S. No. Name of Corporate Bodies Position held

1 Bestway Group Limited, Guemsey Chairman

2 Bestway Group UK Limited, Guernsey Chairman
3 Bestway UK Holdings Limited, Guernsey Director
4 Bestway UK Finco Limited, Guernsey Director
5 Bestway Group Investments Limited, Guernsey Chairman
6 Bestway Wholesale Holdings Limited, England & Wales Director

7 Bestway Wholesale Limited, England & Wales Director

8 Bestway Northern Limited, UK Director
9 Bestway Retail Limited, England & Wales Director
10 MAP Trading Limited, England & Wales Director
11 Batleys Properties Limited, England & Wales Director
12 Palmbest Limited, England & Wales Director

290 United Bank Limited Annual Report 2024 291

 13 Euroimpex Limited, England & Wales * Director
Bestway Healthcare Holdings Limited, England &
10 Director
14 Bestway Limited, England & Wales * Director Wales
15 Bestway Healthcare Holdings Limited, England & Wales Director Bestway Healthcare Finco Limited, England &
11 Director
Wales
16 Bestway Healthcare Finco Limited, England & Wales Director
Bestway Panacea Holdings Limited, England &
17 Bestway Panacea Holdings Limited, England & Wales Director 12 Director
Wales
18 Buybest Limited UK Director
13 5 Lakes Investments Limited, Guernsey Director
19 5 Lakes Investments Limited, Guernsey Director
20 Bestway Cement Limited, Pakistan Director 14 Bestway Cement Limited, Pakistan Director
21 Bestway Packaging Limited, Pakistan Director
22 Bestway Consultancy Services Pvt. Limited, Pakistan Chief Executive 15 Bestway Packaging Limited, Pakistan Director

23 Bestway Renewable Technologies Limited, Pakistan Chief Executive Bestway Consultancy Services Pvt. Limited,
16 Director
Pakistan
24 Institute of Chartered Accountants England & Wales, UK Fellow
Bestway Renewable Technologies Limited,
25 Bestway Foundation, UK Trustee 17 Director
Pakistan
26 Crimestoppers Trust, UK Trustee
Institute of Chartered Accountants England &
27 British Asian Trust UK Advisory Council, UK Chairman 18 Fellow
Wales,
28 Conservative Friends of Pakistan, UK Chairman
19 Bestway Foundation, UK Trustee
29 Bestway Foundation, Pakistan Chairman
* Dormant 20 Bestway Foundation, Pakistan Trustee

Directors / Memberships in other Corporate Bodies Haider Zameer Choudrey

Position as of 31 December 2024 Directors / Memberships in other Corporate Bodies- Rizwan Pervez
Position as of 31 December 2024

S.no Name of Corporate Bodies Position held S. No Name of Corporate Bodies

Position held
1 Bestway Group Limited, Guernsey Chief Executive Officer 1 Bestway Northern Limited, UK Director

2 Bestway International Holdings Limited, Guernsey Director 2 Bestway Wholesale Limited, UK Director

3 Bestway Group UK Limited, Guernsey Chief Executive Officer 3 Bestway Wholesale Holdings Limited, UK Director

4 Batleys Properties Limited, UK Director

4 Bestway UK Holdings Limited, Guernsey Director
5 Palmbest Limited, UK Director
5 Bestway UK Finco Limited, Guernsey Director
6 Bestway Retail Limited, UK Director

6 Bestway Group Investments Limited, Guernsey Chief Executive Officer

7 MAP Trading Limited, UK Managing Director

Bestway Wholesale Holdings Limited, England &

7 Director 8 UBI- Insurers Limited, Pakistan Director
Wales

8 Batleys Properties Limited, England & Wales Director 9 RP Investments Limited, UK Director

9 10 RP Property Trading Limited, UK Director

Palmbest Limited, England & Wales Director
11 Buybest Limited, UK Partner

292 United Bank Limited Annual Report 2024 293

 12 Bestway Foundation, UK Trustee
MAP Rice Mills (Pvt) Limited Director
13 Institute of Chartered Accountants of England & Wales Member
Bestway Foundation Trustee
14 Bestway Group Limited, Guernsey Director

15 Bestway UK Holdings Limited, Guernsey Director

Directors / Memberships in other Corporate Bodies – Tariq Rashid
16 Bestway UK Finco Limited, Guernsey Director Position as of 31 December 2024

Bestway Group UK Limited, Guernsey Director

17 Directorships / Memberships of Bodies Corporate Position held in other Undertaking(s)

Bestway Group FS Limited, Guernsey Director Bestway Cement Limited Director

18

Directors / Memberships in other Corporate Bodies – Shazia Syed

Position as of 31 December 2024 Directors / Memberships in other Corporate Bodies – Muhammad Jawaid Iqbal
Position as of 31 December 2024
Name of Company / Entity Position held
Directorships / Memberships of Bodies Corporate Position held in other Undertaking(s)
Unilever Personal Care Business-Pakistan,
General Manager
Turkey, Arabia and Bangladesh Karachi Education Initiative Director

Directors / Memberships in other Corporate Bodies – Daniel M. Howlett Institute of Bankers Pakistan Council Member
Position as of 31 December 2024
Pakistan Banks’ Association Member Executive Committee
Name of Corporate Bodies Position held
Overseas Investors Chamber of Commerce and Industry Member Managing Committee
University of Plymouth Independent Governor

Boparan Private Office Non-executive Director

Panmure Liberum Vice Chair

United Bank Limited UK Non-executive Director

Falcon Group Non-executive Director

Directors / Memberships in other Corporate Bodies – Muhammad Irfan A. Sheikh

Position as of 31 December 2024

Name of Corporate Bodies Position held

Bestway Cement Limited Director

Bestway Packaging Limited Director

Bestway Consultancy Services (Pvt) Ltd. Director

Bestway Renewable Technologies Limited Director

294 United Bank Limited Annual Report 2024 295

Notice of 66th Annual General Meeting Notice of 66th Annual General Meeting of United Bank Limited
of United Bank Limited Notes:
1. The Share Transfer Books of the Bank shall remain closed from 13 March 2025 to 19 March 2025 (both days inclusive). Transfers received
Notice is hereby given that the 66th Annual General Meeting (“AGM”) of the Shareholders of United Bank Limited at M/s. THK Associates (Pvt.) Limited, Plot No. 32-C, Jami Commercial Street 2, D.H.A., Phase VII, Karachi-75500. Pakistan., the
(the “Bank” or “UBL”) will be held on Wednesday, 19 March 2025 at 9:30 a.m. at Islamabad Serena Hotel, Islamabad Registrar and Share Transfer Agent of the Bank, by the close of the business on 12 March 2025 will be treated in time for the purpose of
to transact the following businesses: attending this AGM.
To download
Annual Report 2. A member entitled to attend and vote at this AGM is entitled to appoint a person as a proxy to attend and vote for and on his/her behalf.
Ordinary Business: A proxy need not be a member. The instrument appointing a proxy and the power of attorney/Board Resolution or other authority (if any)
under which it is signed or a notarized certified copy of the power or authority shall be deposited at the office of M/s. THK Associates
1. To confirm the minutes of last Extra-Ordinary General Meeting held on 30 December 2024. (Pvt.) Limited, Plot No. 32-C, Jami Commercial Street 2, D.H.A., Phase VII, Karachi-75500, the Registrar and Share Transfer Agent of the
Bank, not later than forty-eight (48) hours before the time of holding the AGM, and must be duly stamped, signed and witnessed.
2. To receive, consider and, if thought fit, adopt the Annual Audited Financial Statements (consolidated and unconsolidated), Statement of
3. Pursuant to the Companies (Postal Ballot) Regulations, 2018, for the purpose of election of Directors and for any other agenda item
Compliance with the Listed Companies (Code of Corporate Governance) Regulations, 2019 of the Bank for the year ended 31st
subject to the requirements of Section 143 and 144 of the Companies Act, 2017, members will be allowed to exercise their right to vote
December, 2024 together with the Directors’ Report and Auditors’ Reports thereon. through postal ballot, that is voting by post or through any electronic mode, in accordance with the requirements and procedure
contained in the aforesaid Regulations.
3. To consider and, if thought fit, approve and declare final cash dividend, as recommended by the Board of Directors, at the rate of Rs.11/-
per share i.e.110%, in addition to 330% interim cash dividend already declared/paid for the year ended 31 December 2024. 4. The CDC Account Holders and Sub-Account Holders, whose registration details are available in the Share Book Details Report, shall be
required to produce their respective original Computerized National Identity Card (CNIC) or original Passport at the time of attending the
4. To consider and, if thought fit, appoint External Auditors to hold office from this AGM till the conclusion of the next AGM of the Bank and AGM to facilitate identification. Such Account Holders and Sub-Account Holders should also bring / know their respective participation
I.D. No. and the CDC Account No. and in case of proxy, he/she must enclose an attested copy of his/her CNIC or Passport.
to fix their remuneration. It is notified that Board Audit Committee and the Board of Directors have recommended the name of retiring
Representative(s) of corporate member(s) should bring attested copy of Board Resolution / Power of Attorney and/ or all such documents
auditors M/s. EY Ford Rhodes Chartered Accountants, who being eligible, has offered themselves for reappointment. that are required for such purpose under Circular No.1 dated 26 January 2000 issued by the Securities and Exchange Commission of
Pakistan (“SECP”).
Special Business:
5. Members are requested to timely notify any change in their addresses and provide copies of their CNIC /NTN (if not provided earlier) to
5. To consider, and if thought fit, pass the following Special Resolutions (with or without modifications) under Section 83(1)(b) of the Bank’s Registrar / Share Transfer Agent, M/s. THK Associates (Pvt.) Limited, Plot No. 32-C, Jami Commercial Street 2, D.H.A., Phase VII,
Karachi-75500.
Companies Act, 2017 subject to review and approval by State Bank of Pakistan (“SBP”) for: (i) issuance by way of other than rights of a
maximum of 60,000,000 ordinary shares having face value of PKR 10/- each of United Bank Limited (“Bank”) upon the conversion of a 6. Deduction of Withholding Tax on the Amount of Dividend:
privately placed and over the counter listed, fully paid up, rated, perpetual, unsecured, subordinated, non-cumulative and contingent
convertible Shariah compliant Sukuk for an amount up to PKR 20,000,000,000 (inclusive of green shoe option) ("Proposed Sukuk As per the provisions of Section 150 of the Income Tax Ordinance, 2001 (“Ordinance”), different rates are prescribed for deduction of
withholding tax on the amount of dividend paid by the companies. The current withholding tax rates are as under
Issuance"); or (ii) in the event that the Proposed Sukuk Issuance is not approved by the SBP for any regulatory reason or the management
of UBL determines that issuance of the Proposed Sukuk Issuance is not otherwise viable on the terms and structure approved/proposed (a) For filers of income tax returns: 15.00%
by SBP, for issuance by way of other than rights of a maximum of 60,000,000 ordinary shares having face value of PKR 10/- each of the (b) For non-filers of income tax returns: 30.00%
Bank upon the conversion of conventional Term Finance Certificates proposed to be issued as BPRD circular # 06 dated August 15, 2013
(“Basel III Circular”) compliant Additional Tier 1 instrument in the form of redeemable capital under Section 66 of the Companies Act, To enable UBL to make tax deduction on the amount of cash dividend @ 15.00% instead of 30.00%, all the shareholders whose names
are not entered/appring into the Active Taxpayers List (ATL) provided on the website of the Federal Board of Revenue (“FBR”), despite
2017 of up to an amount of PKR 20,000,000,000 (inclusive of green shoe option) (“Proposed TFC Issuance"). the fact that they are filers, are advised to make sure that their names are entered/appring into ATL before the date of issuance of
Dividend Warrants, otherwise tax on their cash dividend will be deducted @ 30.00%.
RESOLVED THAT, subject to receipt of regulatory approvals (including approvals of the SBP and the Securities and Exchange
Commission of Pakistan (“SECP”)), required under applicable laws in connection with the Proposed Sukuk Issuance or Proposed TFC The corporate shareholders having CDC account are required to have their National Tax Number (NTN) updated with their respective
Issuance, as the case may be, and fulfilment of all requisite formalities, the issuance by way of otherwise than rights of a maximum of participants, whereas corporate physical shareholders should send a copy of their NTN certificates to UBL or Bank’s Share Registrar and
Share Transfer Agent, M/s. THK Associates (Pvt.) Limited, Plot No. 32-C, Jami Commercial Street 2, D.H.A., Phase VII, Karachi-75500.
60,000,000 ordinary shares of the Bank having face value ofof PKR 10/- each upon conversion of the Proposed Sukuk Issuance, or a
The shareholders while sending NTN or NTN certificates, as the case may be, must quote company name and their respective Folio
maximum of 60,000,000 ordinary shares of the Bank having face value of PKR 10/- each upon conversion of the Proposed TFC Issuance, numbers.
as the case may be, proposed to be issued by the Bank as Tier I Capital under the Basel III framework implemented by the SBP vide the
Basel III Circular, in each case, be and is hereby approved on the terms and conditions stated in the statement of material facts. As per FBR’s clarification letters C.No.1(29) WHT/2006 dated June 30, 2010 and C.No.1(43) DG(WHT)/2008-Vol-II.664 17-R dated May 12,
2015, a valid Exemption Certificate under Section 159 of the Ordinance is mandatory to claim exemption of withholding tax under Clause
47(B) of Part-IV of Second Schedule to the Ordinance. Those who fall in the category mentioned in above Clause must provide valid Tax
FURTHER RESOLVED THAT, that Mr. Muhammad Jawaid Iqbal, President & CEO, Syed Manzoor Hussain Zaidi, Chief Financial Officer,
Exemption Certificate to our Registrar and Share Transfer Agent, otherwise tax will be deducted on dividend amount as per rates
and Mr. Aqeel Ahmed Nasir, Company Secretary, be and are hereby authorized singly or jointly on behalf of the Bank to complete any/all prescribed in Section 150 of the Ordinance.
the necessary corporate and regulatory formalities, sign all documents/agreements in respect of the above, including but not limited to
filing of application with the SECP for approval under Section 83(1)(b) of the Companies Act, 2017 and/or to do any other acts, deeds, For shareholders holding their shares jointly as per the clarification issued by the FBR, withholding tax will be determined separately on
things and matters in respect of the above. “Filer / Non-Filer” status of principal shareholder as well as joint-holder(s) based on their shareholding proportions. Therefore, all
shareholders who hold shares jointly are required to provide shareholding proportions of principal shareholder and Joint-holder(s) in
respect of shares held by them to the Registrar and Share Transfer Agent in writing as follows:
Attached to the Notice is the Statement of Material Facts as required under section 134(3) to the Companies Act, 2017.
Folio/CDC Total Principal Shareholder Joint Shareholder(s)
By order of the Board Account No. shares Name and CNIC Shareholding Name and CNIC Shareholding
Sd/-
No. Proportion No. Proportion
Aqeel Ahmed Nasir
(No. of Shares) (No. of
Company Secretary &
Chief Legal Counsel Shares)

Karachi, 26 February 2025

296 United Bank Limited Annual Report 2024 297

Notice of 66th Annual General Meeting of United Bank Limited Notice of 66th Annual General Meeting of United Bank Limited
For any query/difficulty/information, the members may contact UBL’s Share Registrar and Share Transfer Agent, at the following address, 10. E-Voting:
phone/fax numbers or e-mail address:
The members of United Bank Limited “the Bank” are hereby notified that pursuant to Companies (Postal Ballot) Regulations, 2018
amended through Notification dated December 05, 2022, issued by the Securities and Exchange Commission of Pakistan (“SECP”),
THK Associates (Pvt.) Limited wherein, SECP has directed all the listed companies to provide the right to vote through electronic voting facility and voting by post to
Plot No. 32-C, Jami Commercial Street 2, D.H.A., the members on all businesses classified as special business.
Phase VII, Karachi-75500
UAN: 021-111-000-322 Accordingly, members of United Bank Limited will be allowed to exercise their right to vote through electronic voting facility and voting
Direct: 021- 35310187 by post for the special business in its AGM to be held on 19 March 2025 at 9:30 a.m., in accordance with the requirements and subject
Fax: 021-35310190 to the conditions contained in the aforesaid Regulations.
Email: [email protected]
Web: www.thk.com.pk For the convenience of the Members, ballot paper is annexed to this notice and the same is also available on the Bank’s website at
https://www.ubldigital.com/Investor-Relations/Stock-Information
7. Audited Financial Statements through e-mail and available on Website
In pursuant to Section 223(6) of the Companies Act 2017 and SECP S.R.O. 389 (I) / 2023 dated March 21, 2023, Annual Report 2024 which Procedure for E – Voting:
includes Auditors’ Report along with Audited Financial Statements, Directors’ Report, Chairman’s Review Report and Notice of Annual
General Meeting are being e-mailed to the members who have provided their e-mail addresses. Members are also requested to intimate Shareholders, who for any reason, could not claim their dividends or bonus shares or did not collect their physical shares, if any, are advised
change (if any) in their registered e-mail addresses to the relevant Participants / Investor Account Services of the CDC / Share Registrar to contact our Share Registrar to collect/enquire about their unclaimed dividends or pending shares, if any.
of the Bank (as the case may be) for the aforesaid purpose. Member of the Bank who wish to receive the hard copy of Annual Report are
requested to send request to our Share Registrar or Secretary’s Department of the Bank. (a) Details of the e-voting facility will be shared through an e-mail with those members of the Bank who have their valid CNIC numbers, cell
numbers, and e-mail addresses available in the register of members of the Bank by the close of business of 12 March 2025.
The Annual Report of the Bank has also been uploaded on the website of the Bank which can be downloaded from the following weblink
or QR enabled code given on the top right of this notice. (b) The web address, login details, will be communicated to members via email. The security codes will be communicated to members
through SMS from web portal of THK Associates (Pvt.) Limited (being the e-voting service provider).
Weblink: https://ubldigital.com/Investor-Relations/Financial-Statements
(c) Identity of the Members intending to cast vote through e-Voting shall be authenticated through electronic signature or authentication for
login.
8. Participation of Shareholders through Online Facility:
(d) E-Voting lines will start from 15 March 2025, 09:00 a.m. and shall close on 18 March 2025 at 5:00 p.m. Members can cast their votes any
To facilitate the shareholders, UBL will also be providing the online platform / facility to participate in the AGM through time during the said timelines. Once the vote on a resolution is cast by a Member, he / she shall not be allowed to change it subsequently.
webinar/webex/zoom.
Procedure for E – Voting:
The shareholders will be able to login and participate in the AGM proceedings through their smart phones or computer devices after
completing all the formalities required for the verification and identification of the shareholders. The members shall ensure that duly filled and signed ballot paper along with copy of Computerized National Identity Card (CNIC) should
reach the Chairman of the meeting through post on 13th Floor UBL Building, Jinnah Avenue, Blue Area, Islamabad or email at
The login facility will be opened at 09:00 a.m. on 19 March 2025 enabling the participants to join the proceedings which will start at 9:30 [email protected] before 17:00 on Tuesday, 18 March 2025. The signature on the ballot paper shall match with the signature on
a.m. sharp. CNIC.

The shareholders interested in attending the AGM of UBL through online facility are requested to get themselves registered with the 11. Urgent Provision of Valid CNIC Copy (Mandatory
Company Secretary at least 24 hours before the time of AGM at the following e-mail address: [email protected]
As per the regulatory requirements issued by the Securities & Exchange Commission of Pakistan (“SECP”), the payment of cash dividend
The shareholders are requested to provide the information as per the below format. The related link to the webinar/webex/zoom will be shall only be made to the Shareholders who have provided copies of their valid CNIC/ NICOP/ Passport (in the case of Individuals) and NTN
sent on the provided email address accordingly: certificate (in the case of corporate entities) and valid details of designated International Bank Account Number (“IBAN”). In case of
non-availability of the said information, the Bank will hold the payment of cash dividend. Therefore, shareholders who have not yet provided
S. No. Name of the Shareholder CNIC Number Folio/CDC Account No. Cell Number Email Address the required information are requested to provide copies of their valid CNIC/NICOP/NTN/Passport and details of valid IBAN.

The Members are requested to submit a copy of their valid CNIC/NTN/Passport Number within ten (10) days from the date of this Notice to
the Bank’s Registrar and Share Transfer Agent. In case you have already provided copy of your valid CNIC, please ignore this instruction.

9. Consent for Video Link Facility: The Members are also requested to timely notify any change in their addresses and provide copies of their CNIC /NTN (if not provided earlier)
Members can attend and participate in the AGM through video-link. The Bank will provide the facility of video-link on demand of to Bank’s Registrar / Share Transfer Agent, M/s. THK Associates (Pvt.) Limited, Plot No. 32-C, Jami Commercial Street 2, D.H.A., Phase VII,
members residing in a city, collectively holding 10% or more shareholding in the Bank. Members who wish to avail this facility are Karachi-75500.
requested to fill the below Video Link Form and submit it to the Bank at its registered office at least seven (7) days prior to date of the
AGM.
12. Submission of Bank Mandate with International Bank Account Number (IBAN) for payment of Cash Dividend Electronically into
The Bank will intimate members regarding venue of video-link facility at least five (5) days before the date of the AGM along with complete the Bank Accounts of the Shareholders (Mandatory Requirement
information necessary to enable them to get an access to such facility.
In pursuance of Section 242 of the Companies Act, 2017, it is mandatory for all listed companies to pay dividend only by way of electronic
Video Link Form mode, directly into the bank accounts of entitled shareholders.

Keeping in view the same, all cash dividends, will be directly transferred in bank accounts of the registered shareholders. In order to
I/We, __________________________________ of ____________________________, being a member of United Bank Limited, holder of ___________________________ Ordinary Share(s) enable us to follow the directives of the regulators in regard to payment of divided through electronic mode only, the members are
as per Register Folio No./CDC Account No.__________________ hereby opt for video link facility at _________________________________________. requested to please provide/update their bank account details, if not already provided/updated, on the bank mandate form available on
the below given link. https://www.ubldigital.com/Portals/0/InvestorRelation/Bank%20Mandate%20Form.pdf

______________________ For any query/difficulty/information, the members may contact the Bank’s Share Registrar and Share Transfer Agent, at the following
address, phone/fax numbers or e-mail address:
Signature of the Member

298 United Bank Limited Annual Report 2024 299

Notice of 66th Annual General Meeting of United Bank Limited Statement of Material Facts Under Section 134(3) of the
THK Associates (Pvt.) Limited Companies Act, 2017, relating to the Special Business:
Plot No. 32-C, Jami Commercial Street 2,
D.H.A. Phase VII, Karachi-75500 This statement of material facts pertain to the special business to be transacted at the Annual General Meeting of United Bank Limited
UAN: 021-111-000-322 (“Bank”), to be held on 19 March 2025
Direct: 021- 35310187
Fax: 021-35310190 Issuance of shares, without rights issuance, upon conversion of Sukuks or TFCs, as the case may be, by the Bank as Additional Tier I
Email: [email protected] Capital.
Web: www.thk.com.pk
1. In order to strengthen the regulatory capital position (and in particular, the capital adequacy ratio) and to support the growth of the long
The shareholders who hold shares in CDC are requested to submit the above mentioned Dividend Mandate Form, duly filled-in, to the term strategic plan of United Bank Limited (“Bank”), the management is proposing to raise capital through the issuance of Additional Tier
relevant Broker/Participants/Investor Account Services of the CDC where member’s CDC account is being dealt. 1 instrument in accordance with the Basel III Guidelines issued by the State Bank of Pakistan (“SBP”) vide BPRD Circular # 06 dated
August 15, 2013 (“Basel III Circular”) in the form of a privately placed and over the counter listed, fully paid up, rated, perpetual,
The shareholders who hold physical shares are also requested to submit IBAN (bank account number) as per the above mentioned Dividend unsecured, subordinated, non-cumulative and contingent convertible Shariah compliant Sukuk for an amount up to PKR 20,000,000,000
Mandate Form, duly filled-in, to our Share Registrar namely THK Associates (Pvt.) Limited in order to directly credit their dividends in their (inclusive of green shoe option) ("Proposed Sukuk Issuance"). The Proposed Sukuk Issuance is subject to the approvals of the SBP under
respective bank accounts. the Basel III Circular, and to be finalized based on the input received from the SBP. The Proposed Sukuk Issuance is also subject to
receipt of regulatory approvals, from the Securities and Exchange Commission of Pakistan (“SECP”) and the Pakistan Stock Exchange
13. Zakat Declaration Limited (“PSX”).

That pursuant to the Zakat and Ushr Ordinance, 1980 read with the Zakat (Collection and Refund) Rules, 1981, UBL is required to deduct 2. In the event that the Proposed Sukuk Issuance is not approved by the SBP for any regulatory reason or the management determines that
zakat from dividend(s) and to deposit the same with the relevant Authority. the issuance is not otherwise viable on the terms and structure approved/proposed by the SBP, it is proposed that the Basel III Circular
compliant Additional Tier I instrument be issued in the form of conventional Term Finance Certificates as redeemable capital under
To avail an exemption from said deduction, the shareholder(s) are advised to provide a duly executed declaration form i.e. CZ-50, with Section 66 of the Companies Act, 2017 of up to an amount of PKR 20,000,000,000 (inclusive of green shoe option) (“Proposed TFC
respect to faith and fiqh, at least 30 days prior to the first day of Ramadhan. Issuance"), which will be substantially on the same commercial terms as the Proposed Sukuk Issuance, subject to approvals of the SBP
under the Basel III Circular and to be finalized based on the input received from the SBP. The Proposed TFC Issuance is also subject to
UBL, in any case, bears no legal responsibility/obligation or any financial liability whatsoever in this regard. receipt of regulatory approvals, from the SECP and the PSX.

14. Unclaimed Dividend and Bonus Shares: 3. The Basel III Circular prescribes a mandatory loss absorption feature for Additional Tier I capital instruments pursuant to which the
Proposed Sukuk Issuance or Proposed TFC Issuance, as the case may be, will, if directed by the SBP, be subject to mandatory
Shareholders, who for any reason, could not claim their dividends or bonus shares or did not collect their physical shares, if any, are conversion into ordinary shares of the Bank, on the occurrence of the following trigger events: (i) the CET 1 Trigger Event (described
advised to contact our Share Registrar to collect/enquire about their unclaimed dividends or pending shares, if any. below); (ii) if directed by the SBP, the PONV Event (described below); or (iii) if directed by the SBP, failure by the Issuer to comply with the
Non-Cumulative Feature or Lock-In Clause (as specified in paragraph (iii)(g) of Annexure 2 of the Basel III Circular). Accordingly, the Bank
15. Conversion of Physical Shares into Book Entry Form: will be under an obligation to mandatorily convert the Sukuk or TFCs, as the case may be, on the occurrence of any of the aforementioned
trigger events.
In accordance with Sub Section 2 of Section 72 of the Companies Act, 2017, Companies are required “to replace its physical shares with
book entry form” in the manner specified by the Commission. Note: The Basel III Circular can be accessed from http://www.sbp.org.pk/bprd/2013/Basel_III_instructions.pdf

To enable compliance with the aforementioned requirement, we request the shareholders to kindly convert shares held by them in 4. In accordance with the requirements of the Basel III Circular, the Bank has determined, subject to review and approval by the SBP, that
Physical Form into Book Entry Form as soon as possible. The shareholders may contact a Broker, a PSX Member, CDC Participant or upon the occurrence of any of the trigger events, a maximum of 60,000,000 ordinary shares of the Bank, having face value of PKR 10/-
CDC Investor Account Service to obtain assistance for opening a CDS Account and subsequent conversion of the physical shares into each, will be issued for the conversion of the Proposed Sukuk Issuance, or, a maximum of 60,000,000 ordinary shares of having face
Book Entry Form. value of PKR 10/- each of the Bank will be issued for the conversion of the Proposed TFC Issuance, as the case may be.

For further information or clarification, please feel free to contact THK Associates (PVT) Ltd. on Tel: # 021-35310191-93 or email at To secure the Bank’s obligation to convert the Sukuks or TFCs, as the case may be, the Basel III Circular expressly requires that there
[email protected] should be no impediments (legal or other) to the conversion i.e. the Bank should have all prior authorizations (sufficient room in authorized
capital etc.) including regulatory approvals to issue the common shares upon conversion. To the extent ordinary shares will be issued to
the Sukuk holders or TFC holders, as the case may be, on a without rights basis at the time of conversion of the Sukuks or TFCs, as the
case may be, the Bank is required to comply with Section 83(1)(b) of the Companies Act, 2017 which requires the Bank to obtain the
approval of its shareholders and the SECP. Such approvals are, in terms of the Basel III Circular required to be procured before the
issuance of the Sukuks or TFCs, as the case may be.

5. The shareholders are therefore requested to consider and give their approval by way of special resolution for the issuance otherwise than
by way of rights of ordinary shares of the Bank upon conversion of the Proposed Sukuk Issuance or the Proposed TFC Issuance, as the
case may be. The terms of conversion of the Proposed Sukuk Issuance or the Proposed TFC Issuance, as the case may be, are set out
in more detail herein below:

300 United Bank Limited Annual Report 2024 301

 FORM OF PROXY
Conversion Trigger Events
The issuance of shares is dependent on a future contingent event. 66th Annual General Meeting of United Bank Limited
The Proposed Sukuk Issuance or Proposed TFC Issuance, as the case may be, shall, in terms of the Conversion
Amount, be permanently converted into ordinary shares upon (i) the CET 1 Trigger Event (as defined in paragraph I/We, of being a member of United Bank Limited
A-5-2 of Annexure 5 of the Basel III Circular); (ii) if directed by the SBP, the PONV Event (as defined in paragraph A-5-3
(“UBL”) and holder of ordinary shares as per Share Register Folio No. and / or
of Annexure 5 of the Basel III Circular); or (iii) Lock-In Event, i.e. failure by the Bank to comply with the lock-in clause
(as specified in paragraph (iii)(g) of Annexure 2 of the Basel III Circular) or the non-cumulative feature of the Sukuk or
CDC Participation I.D. No. and Account No. hereby appoint
the TFC, as the case may be (as specified in paragraph (iii)(a) of Annexure 2 of the Basel III Circular). of or failing him/her
of as my/our proxy to vote for me/us and on my/our
Conversion Amount In the case of Pre-Specified Trigger Event, the Bank will have full discretion to determine the amount of the Proposed behalf at the 66th Annual General Meeting of UBL scheduled to be held on Wednesday, 19 March 2025 at 09:30 a.m.
Sukuk Issuance or Proposed TFC Issuance, as the case may be, to be converted into ordinary shares, which amount at Islamabad Serena Hotel, Islamabad and at any adjournment thereof.
shall at least be the amount required to immediately return the Bank’s CET 1 ratio to above the Pre-Specified Trigger
Event but will not exceed the amount required to bring the CET 1 ratio to 8.5% of RWA.
Signed this day of 2025
In the case of a PONV Trigger Event or Lock-In Event, the amount of the Proposed Sukuk Issuance or Proposed TFC
Issuance, as the case may be, to be converted will be determined by the SBP in its sole discretion. Witness 1:
Signature:
Quantum of shares to be Number of shares to be issued to the Sukuk holders or TFC holders, as the case may be, at the time of conversion
issued in terms of number of will be equal to: Name:
shares and their percentage
of paid-up capital before and No. of Shares = Conversion Amount CNIC No. or Passport No:
after conversion Conversion Price
Address:
Provided that: (i) in the case of Proposed Sukuk Issuance, the maximum number of shares to be issued to the Sukuk
holders upon conversion will be capped at 60,000,000 ordinary shares having face value of PKR 10/- each
(representing 4.90% of the paid up and issued share capital of the Bank before conversion and 4.67% of the paid up (Signature should agree
and issued share capital of the Bank after conversion); or (ii) in the case of Proposed TFC Issuance, the maximum with the specimen signature
number of shares to be issued to the TFC holders upon conversion will be capped at 60,000,000 ordinary shares Witness 2: registered with the Registrar)
having face value of PKR 10/- each (representing 4.90% of the paid up and issued share capital of the Bank before Signature:
conversion and 4.67% of the paid up and issued share capital of the Bank after conversion).
Name:
The maximum number of shares represents the maximum dilution that will be faced by the shareholders of the Bank
upon conversion of the Proposed Sukuk Issuance or Proposed TFC Issuance, as the case may be. CNIC No. or Passport No:
Conversion Price/Issue Price For Proposed Sukuk Issuance or Proposed TFC Issuance, as the case may be, conversion price shall be the market Address:
price per ordinary share of the Bank, or, in case market price is not available, the book value of a share of the Bank
certified by the independent auditor, as on the date of trigger of the Pre-Specified Trigger Event or declaration by the
SBP of the PONV Trigger Event or Lock-In Event.

Consideration against which Shares shall be issued against cash consideration received by the Bank as subscription monies by virtue of the
shares are to be issued i.e. cash Proposed Sukuk Issuance or the Proposed TFC Issuance, as the case may be.
or other than cash 1. A member entitled to attend and vote at a General Meeting is entitled to appoint a person as proxy to attend
To whom the ordinary shares Sukuk holders or TFC Holders, as the case may be, at the time of conversion and comprising of Qualified Institutional and vote instead of him/her.
will be issued Buyers in accordance with Section 66 of the Companies Act 2017.

For Proposed Sukuk Issuance or Proposed TFC Issuance, as the case may be, the ordinary shares to be issued upon
2. The instrument appointing a proxy should be signed by the member or his/her attorney duly authorized in
Type of Ordinary Shares
conversion of the Sukuk or TFCs (as applicable) will rank pari passu in all respects with existing ordinary shares of the writing. If the member is a corporation (other than Government of Pakistan), its common seal should be affixed
Bank. on the instrument.
Other Conditions In the case of Proposed Sukuk Issuance, permanent conversion of the Proposed Sukuk Issuance on terms provided
herein shall only take place if, at the time of the Conversion Trigger Events, the Bank will be a full-fledged Islamic
3. The instrument appointing a proxy, together with Power of Attorney, if any, under which it is signed or a
Bank. notarially certified copy thereof, should be deposited, with our Registrar/ Share Transfer Agents, M/s. THK
Associates (Pvt.) Limited, Plot no.32-C, Jami Commercial Street-2, D.H.A. Phase VII, Karachi not less than
Purpose, Justification and The Proposed Sukuk Issuance or Proposed TFC Issuance, as the case may be, will contribute towards the Bank’s
Benefit of the Proposed Sukuk
48 hours before the time of holding the meeting.
Additional Tier-I Capital to strengthen the Bank’s regulatory capital position (and in particular, the capital adequacy
Issuance / Proposed TFC ratio) and to support the growth of its Islamic Banking operations. The Proposed Sukuk Issuance or Proposed TFC
Issuance
Issuance, as the case may be, is mandatorily required to be converted upon a Pre-Specified Trigger Event or PONV 4. If a member appoints more than one proxy, and more than one instrument of proxy are deposited by a
Trigger Event as per the Basel III Circular resulting in an issuance of ordinary shares to Sukuk holders or TFC holders, member with the Registrar, all such instruments of proxy shall be rendered invalid.
as the case may be, on a without rights basis.

Breakup value per share as per Not applicable 5. Applicable stamp duty shall be paid/affixed on the proxy form in accordance with the place of execution.
the latest available audited and
reviewed account
6. The proxy form shall be witnessed by two persons whose names, addresses and CNIC / Passport No. shall
Authorized Capital The authorised capital of the Bank is currently PKR 20,000,000,000/- (Pak Rupees 20 billion only) which is sufficient to
allow the conversion of the Proposed Sukuk Issuance or Proposed TFC Issuance, as the case may be, as provided above.
be mentioned on the form.
Consent of the person(s) to Not applicable 7. Attested copies of CNIC or the Passport of the beneficial owners of the proxy shall be furnished with the proxy
whom the shares are to be
issued
form.
Average market price of the shares Not applicable
during the last three months and 8. The proxy shall produce his/her original CNIC or original Passport at the time of the meeting.
latest available market price
Value of Non-Cash Assets or Not applicable
Services or intangible assets 9. In case of corporate entity, the Board of Directors’ resolution/power of attorney with specimen signatures shall
be submitted along with proxy form to the company.

302 United Bank Limited Annual Report 2024 303

 66

Correct
Postage

66 ‫�ھ‬ 5 19

Registrar
M/s. THK Associates (Pvt.) Limited,
Plot No. 32-C, Jami Commercial Street 2, 2025
DHA Phase VII, Karachi-75500,
Pakistan.

307

304 United Bank Limited Annual Report 2024 305

 POSTAL BALLOT PAPER FOR VOTING THROUGH POST

United Bank Limited

Ballot paper for voting through post for the Special Business at the Annual General Meeting to be held on
Wednesday, 19 March 2025 at 09:30 a.m. at Islamabad Serena Hotel, Islamabad.
Website: www.ubldigital.com.

Folio / CDS Account Number

Name of Shareholder / Proxy Holder
Registered Address
Number of shares Held
CNIC/Passport No. (in case of foreigner) (copy to be attached)
Additional information and enclosures (in case of representative of corporate body, corporation, and federal Government)
Name of Authorized Signatory
CNIC/Passport No. (in case of foreigner) of Authorized Signatory
(copy to be attached)
Instructions For Poll
1. Please indicate your vote by ticking (√) the relevant box.
2. In case if both the boxes are marked as (√), you poll shall be treated as “Rejected”.
I/we hereby exercise my/our vote in respect of the above resolution through ballot by conveying my/our assent or dissent to the
resolution by placing tick (√) mark in the appropriate box below:
I/We assent to the I/We dissent to the Resolution
Resolution
Resolution (FOR) (AGAINST)
Agenda Item 5:
To consider, and if thought fit, pass the following Special Resolution (with or without modifications)
under Section 83(1)(b) of the Companies Act, 2017 subject to review and approval by State Bank of
Pakistan (“SBP”) for: (i) issuance by way of other than rights of a maximum of 60,000,000 ordinary
shares of having face value of PKR 10/- each of United Bank Limited (“Bank”) upon the conversion of
a privately placed and over the counter listed, fully paid up, rated, perpetual, unsecured, subordinated,
non-cumulative and contingent convertible Shariah compliant Sukuk for an amount up to PKR
20,000,000,000 (inclusive of green shoe option) ("Proposed Sukuk Issuance"); or (ii) in the event that
the Proposed Sukuk Issuance is not approved by the SBP for any regulatory reason or the
management determines that issuance of the Proposed Sukuk Issuance is not otherwise viable on the
terms and structure approved/proposed by SBP, for issuance by way of other than rights of a
maximum of 60,000,000 ordinary shares having face value of of PKR 10/- each of the Bank upon the
conversion of conventional Term Finance Certificates proposed to be issued as BPRD circular # 06
dated August 15, 2013 (“Basel III Circular”) compliant Additional Tier 1 instrument in the form of
redeemable capital under Section 66 of the Companies Act, 2017 of up to an amount of PKR
20,000,000,000 (inclusive of green shoe option) (“Proposed TFC Issuance").
RESOLVED THAT, subject to receipt of regulatory approvals (including approvals of the SBP and the
Securities and Exchange Commission of Pakistan (“SECP”)), required under applicable laws in
connection with the Proposed Sukuk Issuance or Proposed TFC Issuance, as the case may be, and
fulfilment of all requisite formalities, the issuance by way of otherwise than rights of a maximum of [
60,000,000 ordinary shares of the Bank having face value of of PKR 10/- each upon conversion of the
Proposed Sukuk Issuance, or a maximum of 60,000,000 ordinary shares of the Bank having face
value of of PKR 10/- each upon conversion of the Proposed TFC Issuance, as the case may be,
proposed to be issued by the Bank as Tier I Capital under the Basel III framework implemented by the
SBP vide the Basel III Circular, in each case, be and is hereby approved on the terms and conditions
stated in the statement of material facts.
FURTHER RESOLVED THAT, that Mr. Muhammad Jawaid Iqbal, President & CEO, Syed Manzoor
Hussain Zaidi, Chief Financial Officer, and Mr. Aqeel Ahmed Nasir, Company Secretary, be and are
hereby authorized singly or jointly on behalf of the Bank to complete any/all the necessary corporate
and regulatory formalities, sign all documents/agreements in respect of the above, including but not
limited to filing of application with the SECP for approval under Section 83(1)(b) of the Companies Act,
2017 and/or to do any other acts, deeds, things and matters in respect of the above.

NOTES:
1. Dully filled postal ballot paper should be sent to the Chairman of United Bank Limited registered office at 13th Floor, UBL Building, Jinnah Avenue, Blue Area, Islamabad or
email at [email protected]

2. Copy of CNIC/ Passport (in case of foreigner) should be enclosed with the postal ballot form.

3. Ballot paper should reach the at least one day before the Annual General Meeting i.e. on 18 March 2025 before 17:00. Any postal ballot received after this date, will not be
considered for voting.

4. Signature on ballot paper should match with signature on CNIC/ Passport (in case of foreigner).

5. Incomplete, unsigned, incorrect, defaced, torn, mutilated, over written poll paper will be rejected.

6. In case of a representative of a body corporate, corporation or Federal Government, the Ballot Paper Form must be accompanied
by a copy of the CNIC of an authorized person, an attested copy of Board Resolution, / Power of Attorney, / Authorization Letter etc., in accordance with Section(s) 138 or
139 of the Companies Act, 2017 as applicable. In the case of foreign body corporate etc., all documents must be attested by the Counsel General of Pakistan having
jurisdiction over the member.

7. Postal Ballot Paper form has also been placed on the website of the Bank at: https://www.ubldigital.com/Investor-Relations/Stock-Information
Members may download the ballot paper from the website or use an original/photocopy published in newspapers.

Date
Shareholder / Proxy holder Signature/Authorized Signatory
(In case of corporate entity, please affix company stamp)

306 United Bank Limited Annual Report 2024 307

UNITED BANK LIMITED
Corporate Affairs & Marketing Department
12th Floor, UBL Head Office, I.I. Chundrigar Road, Karachi-74000, Pakistan.