#12017 2018 2019 UBL where you come first Corporate Analyst Briefing Session Q3 2019 Results October 18, 2019 UBL Head Office, Karachi Speakers: Ms. Sima Kamil - President & CEO Mr. Aameer Karachiwalla - Chief Financial Officer Mr. Arif Saifie, FCA, CFA - Financial Controller and Head of Investor Relations#2Agenda - Review of performance and business outlook UBL Sr. No Description Slide 1 UBL - A strong legacy 2 Market Landscape in 2019 31 801 3 Customer Acquisition - build outreach to serve wider economy 10 4 Digital - Revolution in the making, UBL in the forefront 13 5 Credit Cycle - a word of caution with consolidation 16 6 Risk Mitigation and reserving 18 7 Overview of Financial Performance 22 22 UBL Performance Overview - 9M 2019 2#3UBL - A strong legacy (UBL where you come first#4UBL - A dominant brand A Look into the Past 1959 - UBL sets up with first branch in Karachi Our Current Positioning ■ 1963 - First Pakistani bank with a branch in ■ London - 1967 UBL enters the UAE 1974 UBL nationalized with other private banks 2002 Privatized with divesture of 51% stake by the GoP - - 2007 An additional 25% of the share capital divested by the GoP to international investors through a GDR offering - 2014 Divesture of remaining 19.8% stake, a USD 400 mln transaction, by the GoP through secondary public offering (SPO) UBL Performance Overview - 9M 2019 ☐ ◉ Second largest private sector bank in Pakistan with 1,360 branches Market share of 8.3%, 5.5 million customers Highest credit ratings of AAA / A-1+ by VIS One of the most profitable banks in Pakistan avg. RoE of 21% 2014-2018 - Key Strategic Advantages First branchless banking proposition in Pakistan UBL Omni - Cost efficient deposit mix driven by well penetrated branch network - Largest rural network I vast potential to increase financial inclusion At the forefront of innovation - digital lab, next gen mobile app, digital onboarding 4#5UBL's Principal Sponsors - Bestway Group Our Shareholding Structure - Sep'19 18.1% Bestway Group Foreign investors 20.4% 61.5% Domestic investors About the Bestway Group ■ One of UK's top 10 privately owned companies ■ Investments in diverse industries including cement, banking, wholesale cash and carry business, real estate, food and beverages ■ Global workforce of 27K + people spanning over four continents ◉ Key achievements: largest independent wholesale chain in the UK ➤ 3rd largest retail pharmacy in the UK largest cement manufacturer in Pakistan UBL is the 2nd largest private bank in Pakistan UBL Performance Overview - 9M 2019 5#6UBL Innovation and Awards - continues to be acknowledged by the market UBL "Firsts" - Initiatives to stay ahead of the market First Commercial Bank in Pakistan to launch Branchless Banking (UBL OMNI) First Bank to launch QR code based payments in Pakistan First Pakistani Bank to launch digital customer onboarding First Bank to provide Instantaneous ATM/Debit cards to branchless banking customers at the time of account opening (UBL Omni) First Bank in Pakistan where customer's inward remittances are deposited automatically on an ATM and VISA enabled debit card (UBL Tezraftaar Pardes Card) First Bank in Pakistan to offer Prepaid VISA Debit Card First Bank in Pakistan to offer Verified by Visa Service First Bank in the world to issue VISA Debit Cards for G2P assistance to flood affectees First Pakistani Bank to be granted status of Authorized Derivative Dealer (ADD) in Pakistan First institution from Pakistan and third in South Asia to be accredited with Primary Membership of International Swaps and Derivatives Association Market recognition and awards Declared 'Bank of the Year 2018 - Pakistan' by The Banker, an affiliate of the Financial Times UK. "Best Bank" in the first ever Pakistan Banking Awards 2016 "Best Bank for Corporate Finance and Capital Market Development" in the Pakistan Banking Awards 2017 VIS reaffirmed UBL's entity ratings at AAA/A-1+ (Triple A / A-One Plus) "Innovation Award" at the Mastercard Innovation Forum for 'Launch of UBL MasterPass QR' "National Medal of Innovation Award" 2016 for Pioneering G2P Payments Pakistan Innovation Foundation - ■Top 25 Companies Award by the Karachi Stock Exchange for 2010-2012, 2015 and 2016 "Best Bank for SMEs" by the Asia Money Pakistan Banking Awards in 2017 2012 & 2013 Bank of the Year in Pakistan Award by The Banker Magazine, an affiliate of the Financial Times, UK ■ Recognized globally in 2013 as one of the 14 "Sprinters" by the GSMA's Mobile Money for the Unbanked (MMU) program, being the only bank in the category UBL Omni Pakistan Banking Awards UBL Performance Overview - 9M 2019 INNOVATION FORUM EUROMONEY ..... The Banker KSE Karachi Stuck Exchange Limited CFA Society Pakistan Pakistan Innovation Foundation 6#7Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Consistent earnings performance throughout the years Trends KSE 100 Index and UBL's share price 300 280 260 240 220 200 180 160 140 120 100 Max 2019: Rs. 158.82 Equity and Book Values 55 Rs in bln 50 50 45 45 8 35 68 79 92 92 30 56 75 65 25 25 Cons. Equity Sep'19 - Rs. 185 bln Cons. Book value Sep '19 - Rs. 151 pershare 152 159 165 55 151 142 126 101 0] 100 135 130 124 35 116 103 20 82 124 224 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 Jun-19 Aug-19 Dividend Payout -UBL's share price -KSE 100 Index * Payout for 2018 is computed on normalized PAT excluding the effect of one-off pension cost EPS & Price Earnings Ratio 2010 2011 2012 2013 2014 2015 2016 2017 Total Equity-St. 2018 Sep 19 BV Per share - St. 20.0 25.0 140% 100% 90% 16.4 20.1 120% 100% 65.8% 64.2% 61.9% 57.4% 63.2% 69.3% 80% 68.0% 59.2% 58.2% 70% 12.8 15.3 54.8% e 60% 80% 50% 130% 130% 130% 60% 9.2 10.4 115% 110% 40% 100% 40% 85% 75% 80% 30% 20% 5.6 5.6 50% 20% 10% 0% 0% 2.0 0.7 Dec'10 2010 2011 2012 2013 2014 2015 2016 2017 2018 9M'19 Cash Dividend Dividend Payout Ratio Dec'11 Dec'12 Dec'13 Dec'14. Dec'15 Dec'16 Dec'17 EPS 9.1 12.7 14.7 15.2 17.9 21.0 22.7 20.6 Dec'18 12.4 PE 7.5 4.1 5.7 8.7 9.9 7.4 10.5 9.1 9.9 UBL Performance Overview - 9M 2019 7#8Market Landscape in 2019 (UBL where you come first#9Key Economic Trends - 9M'19 Deposits mobilization - Market deposits at Rs 14.0 tln, growth of 5% over Dec'18 Credit offtake - Banking sector advances at Rs 8.0 tln Sep'19, up 7% over Dec'18 levels NPLs up 13% over Dec'18 to Rs. 768 bln at Jun'19 Home Remittance volumes for 3MFY'20 USD 5.5 bln (3MFY'19: USD 5.6 bln) FX reserves closed at USD 15.0 bln at Sep'19, up 9% over Dec'18. Exchange rate closed at Rs 156.4 at Sep'19, strengthening in currency of 2% in Q3'19 CPI at 11.4% in September 2019 Policy rate increased by 475 since Sep’18, benchmark rate at 13.25% at Sep'19 UBL Performance Overview - 9M 2019 9#10Customer Acquisition - build outreach to serve wider economy (UBL where you come first#11Areas where we have done well in 2019 ☐ Strong Build up maintained - avg. domestic current deposits at Rs. 476 bln, up 10% vs. 9M'18, incremental vol. of Rs. 41 bln ☐ Domestic cost of deposits at 5.2% (9M'18 : 2.8%) - despite rate hike of 475 bps since Sep'18 Average CASA for the period was 86.8% (9M'18: 86.6%) Current to total deposits ratio at 45.1% (Dec' 18: 45.9%) 377,000 NTB current accounts mobilized in the nine months of the year Overall customer base at 5.5 million (Dec'18: 5.4 mln) - Home Remittances revenues up 24% YoY to reach Rs. 1.3 bln Market share at 28% in 9M'19 (9M'18: 29%) Banca Volumes growth of 16% YoY, premiums at Rs 2.8 bln, fee income over Rs 1.0 bln Avg Consumer portfolio at Rs 17 bln, growth of 27% YoY - aggressive acquisitions within autos UBL Performance Overview - 9M 2019 11#12Deposits performance - Focus remains on growing low cost deposits Bank Deposits Period End Average Cost of Deposits Sep'19 Dec'18 9M'19 9M'18 9M'19 9M'18 Domestic deposits - Rs in bln 1,155 1,106 1,089 996 5.2% 2.8% International deposits - Rs in bln 264 260 260 251 2.2% 2.2% Total Bank - Rs in bln 1,419 1,366 1,348 1,247 4.6% 2.7% International - USD in mln 1,688 1,869 1,755 2,134 2.2% 2.2% Domestic CASA 86.8% 86.8% 86.8% 86.6% Domestic Current to Total Deposits 45.1% 45.9% 43.7% 43.7% Cost of Deposits 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Domestic -International --Bank UBL Performance Overview - 9M 2019 12#13Digital - Revolution in the making, UBL in the forefront (UBL where you come first#14UBL - Uniquely positioned to cater to all market segments Privileged (Upper) Elite Middle (Upper Middle) Hard-Core Middle (Middle Middle) UBL where you come first 24M eligible population (53% banked) Fledging Middle Class (Lower Middle) Climbers (Upper Lower) Aspirants (Middle Lower) Vulnerable (Lower Lower) UBL Performance Overview - 9M 2019 UBL Omni 98M Powered by CIOL eligible population (9% banked) digital 122M eligible population (3% digital penetration) 14#15UBL Digital - Key Performance Indictors 9M'19 Digital KPI's 9M'19 9M'18 Var % Downloads in millions 1.6 0.6 178% Registered Customers 762,978 264,923 188% Active Customers 377,400 131,498 187% No of Transactions (in millions) 7.0 4.9 44% App Rating (IOS and Andriod) 4.7 3.6 31% POS Volumes - Rs in blns 23.5 14.1 66% IPG Volumes - Rs in blns 3.7 2.6 41% Domestic Remittance - Rs in blns 22.7 22.2 2% Utility Bill Payment - Rs in mlns 28.6 26.5 8% UBL Performance Overview - 9M 2019 15#16Credit Cycle - a word of caution with consolidation (UBL where you come first#17Advances portfolio down 12% from Dec'18 Bank's advances yield up to 10.2% 9M'19 (9M'18: 6.5%) - repricing in line with benchmark rate Rs in bln Description Var % Sep'19 Dec'18 Corporate Bank 356 404 -12% Commodity 66 68 -3% Small Enterprises 11 12 -15% Consumer 17 16 9% Others 32 44 -28% Total Domestic International Bank 482 545 -12% 146 171 -15% 627 716 -12% International USD mln 1,000 1,232 -19% Dec'18 404 Sep'19 356 68 12 16 171 44 66 11 17 146 32 Corporate Bank Commodity Small Enterprises Consumer Bank International Others UBL Performance Overview - 9M 2019 17#18Risk Mitigation and reserving (UBL where you come first#19NPLs and Provisioning - 9M'19 Key highlights Bank level NPLs at Rs 79.0 bln (Dec'18: Rs 68.6 bln) Bank's asset quality at 11.4% at Sep'19 (Dec'8.8%) Bank's Specific coverage at 81.0% (Dec'18: 81.5%) Provision expense against loans and advances of Rs 3.0 bln for 9M'19 ➤ Domestic provision reversals against loans of Rs 1.1 bln for 9M'19 (9M'18: Rs 307 mln) UBL International's provisioning charge against advances of USD 26.9 mln in 9M'19 (9M'18: USD 58.7 mln) UBL Performance Overview - 9M 2019 Domestic NPLs and Asset Quality Rs in bln * 92.5% 27.9 * 83.8% 30.0 5.9% 4.9% Dec'18 NPLs Asset Quality Sep'19 * Specific Coverage International NPLs and Asset Quality USD in mln 92.1% 292.8 19.8% * 92.4% 313.0 26.0% Dec'18 Sep'19 NPLs Asset Quality * Coverage with FSV 19#20Deployment in GoP papers, RWA efficient Portfolio declines in line with reduced leveraging 57 69 38 13 34 57 41 17 458 396 374 243 Rs in bln Investments' yields – inching up 11.1% 10.4% 10.4% 8.9% 7.6% 9.6% 7.8% 2013 2014 2015 2016 2017 2018 9M'19 Non Funded income down as no capital gains in 9M'19 Rs in mln 4,676 585 2,689 3,375 Sep'19 Dec'18 T Bills Listed shares PIBS GoP Sukuks / Eurobonds 1,395 9M'18 Foreign bonds Others UBL Performance Overview - 9M 2019 919 9M'19 ■Capital gains FX income Dividend 20#21Cost discipline through synergies across business and support functions ■ Admin Expense of Rs 29.2 bln - YoY growth restricted to 4% ■ Cost to income ratio measured at 46.6% for 9M'19 (9M'18: 45.9%) Salaries expense for 9M'19 at Rs 11.0 bln, flat YoY ◉ IT expenses of Rs 2.6 bln, up 18% YoY - investments in digital transformation / new platforms ◉ Other operating costs of Rs 10.4 bln, up 10% YoY ➤ Deposit Protection Scheme of Rs 977 mln (9M'18: Rs 287 mln) ➤ Banking service charges of Rs 1.3 bln, up 35% YoY, in line with business growth UBL Performance Overview - 9M 2019 21#22Overview of Financial Performance (UBL where you come first#23Our Results for the nine months ended Sep 30th 2019 Consistent performance positioned to grow PAT of Rs 14.4 bln, up 48% YoY ■ PBT of Rs 26.3 bln, up 59% Cost to Income Ratio of 46.6% in Sep'19 vs 45.9% in Sep'18 ROE of 13.8% 9M'19 (9M'18: 10.3%) ■ Dividend payout ratio of 68% YTD Sep'19 CAR at 19.4% Sep'19 (Dec' 18: 17.7%) UBL Performance Overview - 9M 2019 23#24Balance Sheet - Standalone Rs in bln Description Var % Sep'19 Dec'18 Advances Investments 626 716 -12.6% 1,008 786 28.2% Lendings to Financial Institutions 20 34 -40.7% Others 355 353 0.6% Total Assets 2,010 1,890 6.4% Deposits 1,419 1,366 3.9% Borrowings 325 268 21.3% Subordinated Debts 10 9 11.1% Others 90 95 -5.7% Total Liabilities 1,844 1,738 6.1% Net Assets 165 151 9.3% Share Capital 12 12 0.0% Reserves 61 54 11.2% Unappropriated Profit 72 68 6.1% Surplus on revaluation of Assets 20 17 23.1% Total Equity including Surplus 165 151 9.3% UBL Performance Overview - 9M 2019 24#25Income Statement - Standalone Rs in bln Rs in bln Description Var % Var % 9M'19 9M'18 Q3'19 Q2'19 Interest Earned Interest Expensed Net Interest Income Non Interest Income Total Revenue Admin. Expenses 112.0 83.9 33.5% 45.4 35.2 44.7% (66.6) (42.0) -58.7% (30.0) (19.9) -79.2% 45.3 41.9 8.3% 15.4 15.3 5.2% 17.4 19.4 -10.3% 5.3 7.2 6.0% 62.8 61.3 2.4% 20.7 22.4 5.4% (29.2) (28.2) -3.9% (10.0) (10.3) -12.1% Total Expenses (29.8) (28.6) -4.0% (10.2) (10.4) -11.7% Pre Prov. Operating Profit 33.0 32.7 0.9% 10.5 12.0 -0.1% Provision Exp./Other writeoffs (6.7) (7.4) 10.3% (2.2) (3.2) -65.4% Profit Before Extra Ordinary / Unususal Item and Tax 26.3 25.2 4.2% 8.3 8.8 -9.5% Extra Ordinary / Unususal Item - Pension Cost (8.7) 100.0% 0.0% Profit Before Tax 26.3 16.5 59.5% 8.3 8.8 -9.5% Profit After Tax 14.4 9.7 48.0% 4.9 5.4 16.7% Effective Tax Rate 45.2% 41.0% -4.2% 41.4% 39.1% -2.4% UBL Performance Overview - 9M 2019 25#26Non Fund Income Standalone Results Rs in mln Rs in mln Description Var % Var % 9M'19 9M'18 Q3'19 Q2'19 Fee, commission and brokerage income 8,722 8,481 3% 2,948 2,911 1% Dividend income 911 1,388 -34% 145 540 -73% Income from dealing in foreign currencies 3,015 2,466 22% 1,052 1,176 -11% Gain/(loss) on sale of securities 419 4,464 -91% 232 173 34% Other income 1,897 588 223% 83 1,622 -95% Domestic Total 14,965 17,386 -14% 4,460 6,422 -31% International Total 2,451 2,033 21% 815 745 9% Bank Total 17,416 19,419 -10% 5,275 7,167 -26% International Total - USD in '000 16,534 17,295 -4% 5,096 5,020 2% UBL Performance Overview - 9M 2019 26#27Fees and Commissions performance Rs in mln Standalone Results Description Var % 9M'19 9M'18 Branch banking customer fees 1,209 1,143 6% Consumer finance related fees 707 626 13% Card related fees (debit and credit cards) 1,180 1,178 0% Investment banking fees 237 475 -50% Financial Institution rebate / commission 177 202 -12% Corporate service charges / facility fee 83 144 -42% Commission on trade 302 412 -27% Commission on guarantees 352 269 31% Commission on cash management 539 510 6% Commission on remittances including home remittances net 2,073 1,802 15% Commission on bancassurance 1,017 1,000 2% Commission on Benazir Income Support Program 597 361 66% Others Domestic Total International Total 251 360 -30% 8,722 8,481 3% 1,845 1,509 22% Bank Total 10,567 9,990 6% International Total - USD in '000 12,462 12,844 -3% UBL Performance Overview - 9M 2019 27#28Administrative Expenses (1/2) Rs in mln Standalone Results Description Var % 9M'19 9M'18 Total compensation expenses 8,898 8,656 -3% Rent and taxes 106 1,732 94% Utilities cost 1,222 1,143 -7% Security 668 843 21% Depreciation 554 464 -20% Depreciation - Right of Use Assets 1,672 -100% Others 293 426 31% Property expenses 4,514 4,608 2% Hardware & Software Maintenance 963 780 -24% Depreciation & Amortisation 869 692 -26% Network charges 427 437 2% Information technology expenses 2,260 1,909 -18% UBL Performance Overview - 9M 2019 28#29Administrative Expenses (2/2) Standalone Results Rs in mln Description Var % 9M'19 9M'18 Legal and professional charges 162 289 44% Outsourced service costs including sales commission 2,509 2,349 -7% Banking service charges 1,122 831 -35% Cash transportation and sorting charges 612 724 15% Depreciation 985 881 -12% Stationery and printing 448 462 3% Marketing, advertisement and publicity 610 465 -31% Insurance (including deposit protection) 1,073 352 -205% Donations 97 82 -18% Others 958 1,097 13% Other operating expenses 8,576 7,531 -14% Domestic Total 24,249 22,704 -7% International Total 4,995 5,452 8% Bank Total 29,244 28,156 -4% International Total - USD in '000 33,684 45,835 27% Cost to Income Ratio 46.6% 45.9% 0.7% UBL Performance Overview - 9M 2019 29#30Annexures UBL where you come first#31Balance Sheet Rs in min 2018 2017 2016 2015 2014 2013 2012 Assets Cash and balances with treasury and other banks 206,813 177,099 146,428 128,870 87,573 114,388 109,396 Lending to financial institutions 33,942 10,868 25,711 24,095 21,872 28,835 21,953 Investments-gross 792,857 1,095,555 808,959 721,651 499,060 425,253 351,002 Advances gross 776,272 670,056 559,093 497,032 479,998 436,749 409,090 Operating fixed assets 47,556 46,205 35,582 31,630 30,303 24,608 24,431 Other assets 98,977 79,617 67,812 41,124 40,067 27,317 26,800 Total assets- gross 1,956,417 2,079,400 1,643,585 1,444,402 1,158,874 1,057,150 942,673 Provisions against non-performing advances (60,336) (42,697) (40,525) (41,618) (45,734) (45,936) (44,727) Provisions against diminution in value of investment (6,482) (3,769) (2,428) (2,133) (1,726) (1,476) (1,412) Total assets - net of provision 1,889,599 2,032,934 1,600,632 1,400,651 1,111,414 1,009,739 896,535 Liabilities & Equity Deposits & other Accounts 1,366,060 1,272,788 1,167,124 1,051,235 895,083 827,848 698,430 Borrowing from financial institutions 268,124 512,650 201,550 163,132 53,065 40,574 68,720 Sub-ordinated loans 9,000 665 9,319 Bills payable 27,249 29,848 24,520 13,392 9,554 16,591 7,601 Other liabilities 67,896 58,341 55,651 30,757 28,196 23,147 20,226 Total Liabilities Net Assets/Liabilities Share capital Reserves 1,738,329 1,873,627 1,448,845 1,258,516 985,898 908,825 804,296 151,270 159,307 151,787 142,135 125,516 100,914 92,238 12,242 12,242 12,242 12,242 12,242 12,242 12,242 54,439 43,847 40,455 38,402 34,130 33,681 29,044 Unappropriated profit/(loss) 68,002 70,912 64,246 55,223 48,217 42,635 37,416 Equity - Tier I 134,683 127,001 116,943 105,867 94,589 88,558 78,702 Surplus on revaluation of assets 16,587 32,306 34,844 36,268 30,927 12,356 13,537 Equity 151,270 159,307 151,787 142,135 125,516 100,914 92,238 Total liabilities & equity 1,889,599 2,032,934 1,600,632 1,400,651 1,111,414 1,009,739 896,535 UBL Performance Overview - 9M 2019 31#32Profit & Loss Rs. in mln 2018 2017 2016 2015 2014 2013 2012 Markup/return/interest earned 113,198 107,206 98,219 94,353 82,735 72,846 73,507 Markup/return / interest expensed (56,964) (50,781) (41,177) (38,511) (37,769) (34,910) (34,948) Net Markup/Interest income 56,234 56,425 57,042 55,842 44,967 37,936 38,560 Fee, commission, brokerage and exchange income 17,396 14,496 14,020 14,474 14,418 12,205 10,025 Capital gain & dividend income 6,709 6,762 8,629 6,442 3,806 4,845 3,131 Other income 967 904 960 1,070 1,071 1,064 3,975 Non interest income 25,072 22,162 23,609 21,986 19,296 18,114 17,131 Gross income 81,306 78,587 80,651 77,828 64,263 56,050 55,691 Administrative expenses and other charges (43,222) (36,109) (32,809) (31,776) (29,597) (26,718) (24,306) Profit before provisions 38,084 42,478 47,842 46,052 34,666 29,332 31,385 Donations (203) (110) (87) (167) (112) (77) (35) Provisions (12,914) (2,450) (1,740) (3,710) (1,156) (1,448) (4,499) Profit before taxation Taxation Profit after taxation 24,967 39,918 46,015 42,175 33,398 27,807 26,851 (9,741) (14,739) (18,285) (16,448) (11,469) (9,193) (8,960) 15,226 25,179 27,730 25,727 21,930 18,614 17,891 UBL Performance Overview - 9M 2019 32#33Key Financial Ratios & Share Information Description 2018 2017 2016 2015 2014 2013 2012 Key Financial Ratios Return on equity (ROE) 11.6% 20.6% 24.9% 25.7% 23.9% 22.3% 23.8% Return on assets (ROA) 0.8% 1.4% 1.8% 2.0% 2.1% 2.0% 2.1% Profit before tax ratio 30.7% 50.8% 57.1% 54.2% 52.0% 49.6% 48.2% Return on capital employed (ROCE) 11.3% 20.6% 24.9% 25.7% 23.9% 21.0% 20.9% Advances to deposits ratio (ADR) - gross 53.2% 49.8% 45.6% 45.2% 51.3% 50.7% 56.2% Cost to revenue ratio 47.8% 45.0% 39.6% 39.7% 45.2% 46.5% 42.6% Growth in gross income 3.5% -2.6% 3.6% 21.1% 14.7% 0.6% 6.8% Total assets to shareholders' funds 12.5 12.8 10.5 9.9 8.9 10.0 9.7 Intermediation cost ratio 3.3% 3.0% 3.0% 3.3% 3.4% 3.5% 3.7% NPL ratio 8.8% 7.8% 8.0% 9.4% 11.2% 12.1% 14.0% Net infection ratio 1.1% 1.5% 0.8% 1.1% 1.9% 1.7% 3.5% Capital adequacy ratio (CAR) 17.7% 15.4% 15.1% 14.6% 13.9% 13.3% 15.0% Share Information - Rs Cash dividend per share 11.00 13.00 13.00 13.00 11.50 10.00 8.50 Dividend yield (based on cash dividend) 5.9% 5.4% 8.4% 7.4% 8.7% 12.0% 16.2% Dividend payout ratio (total payout) 88.4% 63.2% 57.4% 61.9% 64.2% 65.8% 58.2% Earning per share (EPS) 12.44 20.57 22.65 21.02 17.91 15.21 14.61 Price earnings ratio (PE) 9.86 9.14 10.55 7.37 9.86 8.72 5.72 Market value per share - at the end of the year 122.64 187.97 238.90 154.95 176.71 132.55 83.67 Market value per share - highest during the year 219.70 283.00 243.72 186.75 198.39 154.21 91.99 UBL Performance Overview - 9M 2019 33#34Income Statement - Domestic Rs in bln Rs in bln Description Var % Var % 9M'19 9M'18 Q3'19 Q2'19 Interest Earned 100.6 73.0 38% 41.6 31.4 33% Interest Expensed (61.9) (37.4) -65% (28.4) (18.3) -55% Net Interest Income 38.7 35.6 9% 13.3 13.0 2% Non Interest Income 15.0 17.4 -14% 4.5 6.4 -31% Total Revenue 53.7 53.0 1% 17.7 19.4 -9% Admin. Expenses (24.2) (22.7) -7% (8.4) (8.5) 2% Total Expenses (24.8) (23.2) -7% (8.5) (8.7) 1% Pre Prov. Operating Profit 28.9 29.8 -3% 9.2 10.8 -15% Provision Exp./Other write offs (2.7) (0.5) -398% (0.5) (2.1) 75% Profit Before Extra Ordinary / Unususal Item and Tax 26.2 29.3 -11% 8.7 8.7 0% Extra Ordinary / Unususal Item - Pension Cost (8.7) 100% 0% Profit Before Tax 26.2 20.5 28% 8.7 8.7 0% Profit After Tax 14.2 12.7 12% 5.1 5.3 33% Effective Tax Rate 45.9% 38.1% -7.7% 41.4% 39.0% -2.3% UBL Performance Overview - 9M 2019 34#35Income Statement - Consolidated Rs in bln Rs in bln Description Interest Earned Var % Var % 9M'19 9M'18 Q3'19 Q2'19 114.6 87.0 31.8% 46.4 36.1 44.3% Interest Expensed (68.2) (43.6) -56.5% (30.5) (20.5) -77.7% Net Interest Income 46.5 43.4 7.0% 15.9 15.6 6.0% Non Interest Income 19.4 21.2 -8.3% 6.0 7.7 3.4% Total Revenue 65.9 64.7 1.9% 21.8 23.4 5.3% Admin. Expenses (31.8) (30.7) -3.5% (10.9) (11.1) -11.7% Total Expenses (32.3) (31.2) -3.7% (11.1) (11.3) -11.4% Pre Prov. Operating Profit 33.6 33.5 0.3% 10.7 12.0 -0.3% Provision Exp./Other write offs (5.7) (8.0) 28.6% (2.0) (2.8) -129.8% Profit Before Extra Ordinary / Unususal Item and Tax 27.9 25.5 9.4% 8.7 9.3 -12.0% Extra Ordinary / Unususal Item - Pension Cost (8.7) 100.0% 0.0% Profit Before Tax 27.9 16.7 66.6% 8.7 9.3 -12.0% Profit After Tax - Continued operations 15.7 9.5 65.3% 5.2 5.7 7.3% Loss from discontinued operations - net of tax 1.5 -100.0% 2.8 (0.5) 456.2% Profit After Tax 14.2 9.5 49.8% 5.1 5.1 24.7% Effective Tax Rate 43.7% 43.2% -0.5% 40.4% 38.8% -1.5% UBL Performance Overview - 9M 2019 35#36Balance Sheet - Consolidated Description Rs in bln Var % Sep'19 Dec'18 Advances Investments 672 755 -11.0% 1,043 831 25.5% Lendings to Financial Institutions 23 35 -34.5% Assets held for sale 4 - 100.0% Others 382 381 0.0% Total Assets 2,123 2,002 6.0% Deposits 1,499 1,448 3.5% Borrowings 334 280 19.3% Subordinated Debts 10 9 11.1% Liabilities held for sale 4 100.0% Others 92 97 -4.9% Total Liabilities 1,938 1,834 5.7% Net Assets 185 169 10.0% Share Capital 12 12 0.0% Reserves 67 60 12.0% Unappropriated Profit 78 74 5.3% Surplus on revaluation of Assets 22 17 27.0% Total Equity attributable to equity holders of Bank 179 163 9.6% Non-controlling Interest (NCI) 7 6 19.2% Total Equity + NCI 185 169 10.0% UBL Performance Overview - 9M 2019 36#37Quarterly Trends UBL Performance Overview - 9M 2019 37#38Profit before tax (PBT) 5.9 6.4 9.3 8.4 7.8 8.0 8.3 7.1 10.9 11.2 10.29.9 13.5 11.3 10.8 10.4 11.2 11.8 8.4 8.8 +8% Rs in bln +44% 8.8 8.5 5 8.3 -4% 6.5 -6% 5.9 4.1 Q1'13Q2'13Q3'13Q4'13Q1'14Q2'14Q3'14Q4'14Q1'15Q2'15Q3'15Q4'15Q1'16Q2'16Q3'16Q4'16Q1'17Q2'17Q3'17Q4'17Q1'18Q2'18Q3'18Q4'18Q1'19Q2'19Q3'19 UBL Performance Overview - 9M 2019 38#39Profit after tax (PAT) 4.0 4.3 Rs in bln 7.3 7.3 7.1 7.0 6.5 6.5 6.4 6.3 6.1 7.0 52 6.0 +59% +29% 5.7 5.6 5.5 5.2 5.3 5.3 5.4 5.9 4.9 4.7 4.2 -10% 3.6 3.5 -24% 2.6 Q1'13Q2'13Q3'13Q4'13Q1'14Q2'14Q3'14Q4'14Q1'15Q2'15Q3'15Q4'15Q1'16Q2'16Q3'16Q4'16Q1'17Q2'17Q3'17Q4'17Q1'18Q2'18Q3'18Q4'18Q1'19Q2'19Q3'19 UBL Performance Overview - 9M 2019 39#40Deposits 703 752 992 945 828 847 858 866 895 773 1,142 1,0511,070 994 Rs in bln +8% 1448 +2% 1419 1,2731,301 1,3151,335,3661344 1,256 1,254 1,147 1,183 1,167 -2% -2% Q1'13Q2'13Q3'13Q4'13Q1'14Q2'14Q3'14Q4'14Q1'15Q2'15Q3'15Q4'15Q1'16Q2'16Q3'16Q4'16Q1'17Q2'17Q3'17Q4'17Q1'18Q2'18Q3'18Q4'18Q1'19Q2'19Q3'19 UBL Performance Overview - 9M 2019 40#41Net Advances 391 363 369 352 377 565 567 519 509 496 498 459 455 434 417 430 420 408 447 Rs in bln +6% 716 675 673 +1% 636 642 627 624 626 -11% -3% Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 UBL Performance Overview - 9M 2019 41#42Gross Revenue 12.6 13.8 19.3 20.3 19.5 21.9 21.3 Rs in bln 22.4 +14% +4% +0% 21.2 21.2 20.7 +5% 20.4 20.3 20.0 20.0 196 19.2 -8% -10% -2% 17.6 19.0 18.6 18.1 17.9 16.3 15.4 14.9 14.1 15.5 Q1'13Q2'13Q3'13Q4'13Q1'14Q2'14Q3'14Q4'14Q1'15Q2'15Q3'15Q4'15Q1'16Q2'16Q3'16Q4'16Q1'17Q2'17Q3'17Q4'17Q1'18Q2'18Q3'18Q4'18Q1'19Q2'19Q3'19 UBL Performance Overview - 9M 2019 42#43Net Interest Income (NII) 11.3 10.6 9.8 9.5 9.0 8.8 11.0 Rs in bln 15.7 +4% +2% 15.3 15.4 +4% +2% 14.7 14./ 14.2 14.3 14.0 14.2 14.2 14.4 +1% 13.6 13.1 14.2 12.8 13.8 13.9 13.9 13.7 13.7 -3% -3% Q1'13Q2'13Q3'13Q4'13Q1'14Q2'14Q3'14Q4'14Q1'15Q2'15Q3'15Q4'15Q1'16Q2'16Q3'16Q4'16Q1'17Q2'17Q3'17Q4'17Q1'18Q2'18Q3'18Q4'18Q1'19Q2'19Q3'19 UBL Performance Overview - 9M 2019 43#44Non Funded Income (NFI) 8.4 Rs in bln +21% +44% 7.3 -5% 7.2 7.0 6.2 6.2 6.3 +10% 6.1 6.0 5.7 5.6 -26% 5.3 4.9 5.1 4.8 5.0 4.8 4.84.8 5.0 4.6 5.2 4.5 5.1 -26% -12% 3.9 4.5 3.8 Q1'13Q2'13Q3'13Q4'13Q1'14Q2'14Q3'14Q4'14Q1'15Q2'15Q3'15Q4'15Q1'16Q2'16Q3'16Q4'16Q1'17Q2'17Q3'17Q4'17Q1'18Q2'18Q3'18Q4'18Q1'19Q2'19Q3'19 UBL Performance Overview - 9M 2019 44#45Provisions 1.3 0.9 0.8 90 0.7 0.2 0.1 0.5 0.9 ཀྱང། ཕུར་ 0.8 0.3 -0.1 0.2 2.0 20 5.5 +88% 2.9 +37% 2.1 +11% 1.9 Rs in bln 3.2 +140% 2.2 +31% 1.3 0.3 0.6 -8% 0.1 -76% -0.3 -0.3 -0.5 Q1'13Q2'13Q3'13Q4'13Q1'14Q2'14Q3'14Q4'14Q1'15Q2'15Q3'15Q4'15Q1'16Q2'16Q3'16Q4'16Q1'17Q2'17Q3'17Q4'17Q1'18Q2'18Q3'18Q4'18Q1'19Q2'19Q3'19 UBL Performance Overview - 9M 2019 45#46Administrative Expenses Rs in bln 10.7 +15% +14% 10.3 10.0 +11% 9.9 9.2 96 -2% -2% 9.0 8.8 8.8 8.6 8.4 8.5 8.2 -16% 8.0 -6% 7.8 7.6 7.3 7.4 7.4 7.2 7.1 6.9 6.9 6.5 6.5 6.2 Q1'13Q2'13 Q3'13 Q4'13Q1'14Q2'14Q3'14Q4'14Q1'15Q2'15Q3'15Q4'15 Q1'16Q2'16Q3'16Q4'16Q1'17Q2'17Q3'17Q4'17Q1'18Q2'18Q3'18Q4'18Q1'19Q2'19Q3'19 UBL Performance Overview - 9M 2019 46#47Important Information The information contained herein reflects our latest business statement as at September 30, 2019. Except the historical information contained herein, statements in this Release which contain words or phrases such as 'will', 'would', 'indicating' expected to' etc., and similar expressions or variations of such expressions may constitute 'forward-looking statements'. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, future levels of non-performing loans, our growth and expansion in business, the impact of any acquisitions, the adequacy of our allowance for credit losses, technological, implementation and changes, the actual growth in demand for banking products and services, investment income, cash flow projections, our exposure to market risks as well as other risks detailed in the reports filed by us with various regulatory authorities as per applicable laws and regulations. UBL undertakes no obligations to update forward-looking statements to reflect event or circumstances after the date thereof. UBL Performance Overview - 9M 2019 47#48UBL Performance Overview - 9M 2019 Thank You 48