#1United Bank Limited Investor Presentation FY'2022 Performance Highlights and Business Outlook UBL where you come first Speakers: Mr. Shazad G. Dada - President & CEO Mr. Arif Saifie, CFA - Chief Financial Officer Ms. Saira Shah - Financial Controller & Head of Investor Relations#2Overview of the UBL Group | We are one of the largest and most profitable banks in Pakistan Over 60 years of successful operational history Market leading positions in core segments Delivered consistent ROE in last few years with strong dividend yields One of the largest networks with 1,335 branches, including 150 Islamic branches and over 200 windows Leader in Digital Banking in Pakistan with over 3.2 mln customers served through a state of the art Mobile App UBL where you come first Highly experienced senior management team with diversified experience of large local and global banking institutions Strong international presence based in UAE, Bahrain and Qatar and the UK Market leader in Home Remittances with over USD 6 bln + inflows each year, over USD 700+ mln RDA flows Full service financial house with Asset Management, Insurance and Microfinance services#3Overview of operating environment this year... banking sector remains resilient despite challenges Risks and opportunities surrounding core segments...we remain focused on our core markets 1 Rate Regime Interest Rate remained high throughout the year in line with global trends 2 Inflation CPI levels highly elevated due to commodities super cycle and higher utilities 3 Investment Strategy Market mainly investing in the short term - as rate outlook remains uncertain 4 Emerging Market Debt Rising bond yields and widening credit spreads impact positions 5 Quality assets built over time Lending across all major sectors within the economy 6 Geopolitical Situation Equity markets await clarity on policies and direction 7 International Economies GCC economic environment improving Strongest Credit Rating 3 Entity Rating AAA /A-1+ VIS Credit Rating Co. Best Digital Bank For the 3rd consecutive year recognized by Asia Money A BEST BANK Best 2022 Digital A ASIAMONEY Bank ASIAMONEY Best Mobile App & BEST BANK AWARDS 2021 ASIAMONEY PAKISTAN Emerging Technology' Award Pakistan Digital Award 2021 2022 has been a year of reinvestment in core businesses while building an optimal structure across the team#4The Big Picture on Macros - UBL delivers strong results with improving EPS Economy impacted by rising inflation, power tariff hikes and pressure on currency Avg Market deposits for YTD Dec'22 at Rs. 21.0 tln, up 15% YoY Currency in Circulation remains high at Rs. 7.7 tln up 10% over Dec'21 (Dec'20: Rs 6.2 tln) Avg Market Advances for YTD Dec'22 up by 19% from Dec'21 YTD at Rs. 10.8 tln - of which private sector credit is at Rs 8.2 tln Inflation at 24.5% in Dec'22, increased further to 27.6% in Jan'23 (Dec'21: 12.2%) - now trending to remain high Interest rates at very steep levels - (27 Feb'23 vs Dec'22) 3M: 19.35% +266bps, 1Y: 19.93% +293bps, 3Y: 18.16% +252bps UBL announces historic results in 2022 RS Rs 68.3B 32.1B PBT up 31% PAT up 4% 38% Cost to Income ratio vs 45% in 2021 18.0% 19.2% Rs Rs 26.2 22.0 ROE CAR 7.2% above EPS up 4% minimum levels Dividend Dividend Payout 84%#5Rs in bln Rs in bln Income Statement Var % Var% FY'22 FY'21 Q4'22 Q3'22 2022 Results - Solid growth supported by strong NFI with cost control Margin expansion grows earnings with aggressive fee buildup Bank NIMs at 4.9% in FY'22 (FY'21: 3.8%), with higher asset yields Branch banking fees up 33%, card related up 21% YoY Interest Earned 250.7 148.0 69% 74.4 73.5 1% Interest Expensed (147.5) (76.2) -93% (43.9) (45.8) 4% Home remittance fees up 20% and trade & guarantee income increasing by 58% Net Interest Income 103.2 71.8 44% 30.4 27.7 10% Non Interest Income 34.4 23.4 47% 12.3 7.4 66% Total Revenue 137.7 95.1 45% 42.8 35.1 22% ◉ Capital gain of Rs. 466 mln (FY:21 Rs. 3.7 bln mainly on foreign bonds) Other Income includes Rs. 6.8 bln gain on winding up of subsidiary Inflation impacts costs-reinvestments in technology and people continues Admin. expenses of Rs. 52.3 bln for FY'22, up 22% YoY Operating expenses (52.3) (42.7) -22% (14.5) (13.7) -6% • Cost to income ratio of 38.0% in FY'22 vs 44.9% in FY'21 Total Expenses (53.7) (44.0) -22% (14.8) (14.0) -6% Pre Prov. Operating Profit 84.0 51.2 64% 27.9 21.1 32% Provision Exp./Other writeoffs (15.7) 1.0 -1740% (10.3) (4.7) -120% ■ Profit Before Extra Ordinary/Unu 68.3 52.1 31% 17.7 16.4 8% Profit After Tax 32.1 30.9 4% 13.3 6.9 93% Provisions - asset quality maintained with enhanced coverage Dom asset quality continues to improve, 3.3% at Dec'22 (Dec'21: 5.0%) Recoveries against NPL remains strong with net provision reversals of Rs. 2.9 bln International NPL Coverage well maintained at 87.5% (Dec'21: 86.4 %) Coverage further improved against holdings in foreign sovereign bonds#6Balance Sheet Review - Building efficiencies in deposit base with well diversified investment book Rs in bln Domestic Deposits Performance - Led by Branch Banking Group Balance Sheet Var % Dec 22 Dec'21 Average deposits at Rs 1.6 tln, up 9% YoY Advances 922 646 43% Investments 1,415 1,497 FI Lendings 85 52 Others 336 424 -5% 65% -21% Average current accounts up 13% YoY, savings up 2% YoY Total Assets 2,759 2,618 5% Deposits 1,838 1,751 5% Borrowings 565 563 0% Subordinated Debts 10 10 0% Others 137 89 53% Total Liabilities 2,550 2,414 6% Net Assets 209 205 2% Share Capital 12 12 0% Reserves 86 70 24% Unappropriated Profit 91 85 8% Surplus on reval. of Assets 19 38 -50% Period End current to total deposits ratio is 49% (FY'21: 47%) Period End domestic CASA ratio levels at 89% (FY'21: 88%) Cost of deposit contained at 6.4% (3.6% FY'21) - despite rate hike Buildup in Corporate Bank Lending with strong asset quality Domestic performing advances at Rs. 759 bln (Dec'21: Rs 517 bln) Average performing domestic advances at Rs. 525 bln (18% up) International portfolio maintained at USD 715 mln Investments portfolio position and mix as at Dec 31, 2022 Timely repositioning within investments strengthens NII Well diversified portfolio of fixed and floating rate investments BS well positioned for further repricing across asset base Total Equity including Surplus 209 205 2%#7Dec-17 Mar-18 Strong Dividend Payouts maintained while UBL repositions to achieve larger aspirations - Trends KSE 100 Index and UBL's share price Max price in 2022: Rs. 149.81 Price at 27-Feb-2023: Rs. 113.10 Rs in bln Equity and Book Values W ww Cons. Equity Dec'22 - Rs. 231 bln Cons. Book value Dec'22 - Rs. 188 pershare Jun-18- Sep-18 Dec-18 Mar-19 Jun-19 Sep-19- Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 -UBL's share price KSE 100 Index Dividend Payout growing each year 13.0 12.0 12.0 11.0 * Payout for 2018 is computed on normalized PAT excluding the effect of one-off pension cost 18.0 Mar-22 Jun-22 Sep-22 22.0 Dec-22 20.6 159 169 151 205 209 184 167 171 150 130 138 124 2017 2018 2019 2020 Total Equity - St. 2021 BV Per share - St. 2022 EPS & Price Earnings Ratio 84.0% 76.8% 69.3% 70.3% 71.4% 63.2% 9.9 10.5 9.1 7.4 5.4 3.8 * 2017 2018 2019 2020 2021 2022 Dec'17 Dec'18 Dec'19 Dec'20 Dec'21 Dec'22 EPS 1 PE Cash dividend per share (Rs) Dividend Payout Ratio 17.1 15.6 12.4 26.2 25.2#8Our priorities are clear...To be the "Best Service Bank" for our customers Deposit Mobilization & Network Expansion Raising service standards across all channels - making our services "Simpler, Better, Faster" Improving the UBL product proposition as we accelerate low cost deposit acquisition Strategically expanding our network and building synergies across core business segments Embedding digital across all business segments for both internal and external customers People & Transformation Capacity building, upskilling managers and leaders Diversity, equality and inclusion Technology and process led transformation Growing digital penetration - Bank 24/7 customer connectivity Expand branchless banking across the mass population Data driven organization Islamic Banking Building on our Islamic proposition and gain market share Leading innovation in product development and explore emerging partners Building healthy asset portfolio Increasing our footprint serving across all geographies Creating a specialist team that drives the future for the segment Our strategy is to continue to invest in the franchise as we grow to our true aspirations..... ☐ Attract best talent - our people work in a culture of respect and empathy Leading the industry with highest standards of compliance, governance, and control Creating exemplary ESG standards and practices#9Key Ratios for the quarter - Higher ROE in Q4'22 increasing overall levels with steady buildup in revenue Gross Revenues Cost to Income Ratio Rs in bln 42.8 47.8% 35.1 12.3 31.6 45.0% 28.3 7.4 43.5% 43.3% 22.6 23.9 24.5 24.2 7.9 6.8 5.6 5.9 6.1 5.8 NFI 30.4 27.7 21.5 23.6 16.9 18.2 18.6 18.1 ■NII Net Interest Margins Rs in bln Policy Rate +625 bps 41.5% 5.5% 3.9% 3.9% 4.3% 4.6% 4.9% 3.5% 3.7% 39.2% 39.0% 33.9% 30.5 27.7 21.5 23.6 16.9 18.2 18.6 18.1 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 NII NIMS Return on Equity 22.9% 20.5% 20.0% 19.6% 19.9% 15.4% 5.4% Asset Quality 28.4% 13.3% 12.9% 12.9% 12.1% 12.3% 11.8% 11.8% Advances to Deposit Ratio 55.1% 9.2% 41.6% 41.6% 37.7% 34.3% 35.9% 37.7% 35.2% Mar'21 Jun'21 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Mar 21 Jun 21 Sep'21 Dec'21 Mar 22 Jun'22 Sep'22 Dec'22 ROE - ROE norm.#10UBL poised for growth - Capital Base strengthens with more efficient allocation Capital Adequacy Ratio Risk Weighted Assets 232 bps 167 201 Dec'21: Dec'22: 21.5% 76 19.2% Rs 865 bln 81 622 Rs 1,001 719 bln 5.3% 4.8% 1.1% 1.0% ■ Credit ■ Market ■Operational 15.1% 13.5% Dec'21 Dec'22 Total CAR ■ СЕТ 1 ADT-1 Tier II ■ Credit ■ Market Operational ■ UBL seeks to maintain a strong capital base to build resilience and maintain adequate buffers over regulatory requirements CAR at 19.2% with buffer of 7.2% over the minimum regulatory requirement of 12.0%#11Digital Banking Group - Focus on growing digital payment services across wider target market Digital App Registrations for the year 2022 # in 000 Digital Payments over Rs 2.6 tln in 2022, up 53% YoY 2,6 2,713 No. of transactions in Millions Amount Rs. in Trillions 2,531 1.7 56 2,035 2,168 Mar-22 Jun-22 Sep-22 Dec-22 Transaction Shift 2022 | 63% Transactions on Digital App + ATMs 38 Dec'21 Dec'22 No. of Transactions Amount Active Customers (90 days) up +19% YoY 33% 32% 32% 32% 30% Active customers in '000' 25% 26% 29% 30% 33% 42% 42% 39% 39% 37% Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Branch Counter Digital App/Net Banking ATM 906 1,079 Dec'21 Dec'22#12UBL Remains in the Forefront with Market Recognition 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 Award of excellence in 'Market Leader of Digital Banking' by Euromoney in 2022 Awarded 'Best Bank for Digital Solutions' in 2022 by Asiamoney 'Best Mobile App' and 'Best Emerging Technology' 2021. - Pakistan Digital Award Declared 'Best Digital Bank in Pakistan' for the 2 years in a row by Asiamoney (2021 & 2020) Recognized for the highest number of Roshan Digital Accounts opened Declared 'Best Digital Bank in Pakistan for 2020' by Pakistan Banking Awards 2020. - Declared 'Bank of the Year 2020 · Pakistan' by The Banker, an affiliate of the Financial Times UK. 4th time in last decade "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 "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 Pakistan Stock Exchange for 2010-2012 and 2015-2019 "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 Best Digital A Bank BEST BANK AWARDS 2022 ASIAMONEY PAKISTAN Best Digital A Bank BEST BANK AWARDS 2021 ASIAMONEY PAKISTAN Best Digital A Bank 2020 ASIAMONEY PAKISTAN UBL Omni 137 VISA Pakistan Banking Awards DAWN IBP AFFERGUSONNE INNOVATION FORUM 2016 INNOVATION THE SPEED OF LE The Banker Bank of the Year 2020 EUROMONEY KSE Karachi Stock Exchange Limited CFA Society Pakistan Pakistan Innovation Foundation PBA RDA#13E We are embedding ESG into UBL's Strategy.... Some key themes KE Environmental Our ESG agenda guides us in making conscientious investment and purpose- driven resource allocation decisions. As part of our commitment to the Environment, we undertake responsible financing, energy management and play our role in cutting emissions and safeguarding natural resources. Bestway Foundation raised $2 Million for Pakistan's Flood Affectees, as part of its ambitious program to help families adversely affected by the unprecedented rains and floods in Pakistan The Social aspect Social includes and goes beyond our CSR activities to include development of people-centric policies and practices, and meet customer needs. Diversity, Equality and Inclusivity (DE&I) continue to be important components in formulating the Bank's governance and sustainability initiatives Governance We keep interests of our stakeholders at the heart of what we do. Our aim is to ensure: 1. Good governance 2. Transparency UBL's CSR activities have focused on multiple sectors, which include but are not limited to: 3. Accountability ☐ Education 4. Ethical conduct Healthcare Vocational and Skills Training ☐ Community Development Information Technology Sports#14Important Information The information contained herein reflects our latest business statement as at December 31, 2022. Except the historical information contained herein, statements in this Release which contain words or phrases such as 'will', 'would', 'indicating' expected to' etc., and similar expressions or variations of such expressions may constitute 'forward-looking statements'. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, future levels of non-performing loans, our growth and expansion in business, the impact of any acquisitions, the adequacy of our allowance for credit losses, technological, implementation and changes, the actual growth in demand for banking products and services, investment income, cash flow projections, our exposure to market risks as well as other risks detailed in the reports filed by us with various regulatory authorities as per applicable laws and regulations. UBL undertakes no obligations to update forward-looking statements to reflect event or circumstances after the date thereof.