INTRODUCTION With the advent of the modern technology and increased competition, banks are undergoing major changes,

thus making this field a challenging one. Banking sector no doubt has a too much important role in the development of the national economy. UBL was established November 7, 1959. It has 1112 nationwide and several international branches to serve its customers. UBL with my observation is the combination of two main aspects it not only using modern techniques of banking with well educated trained and energetic staff with somewhere having old banking techniques with old and orthodox staff. With more than 550 billion assets UBL is in the line of large banks of Pakistan. After its privatization in 2002 the UBL is growing very fast and with its innovating and new products it is attracting variety of customers. PURPOSE OF THE STUDY It is a requirement of MBA Degree, to conduct a research in an organization. So its compulsory for us to work in an organization for a specific period of time i.e. is at least three Months, and write a research report on a specific organization. As UBL is one of the oldest and well established banks in the private sector. So it is trying to expose its performance with the help of this internship report. The main purpose of the study is: To observe, analyze and interpret the relevant data in a useful manner. To work practically in an organization To develop interpersonal communication

SCOPE OF STUDY As an internee in United Bank Limited the main focus of my study research was on general banking procedures in one of the branch of UBL. These operations include remittances, deposits, advances and foreign exchange. Similarly different aspects of overall of UBL are also covered in this report. OBJECTIVES OF THE STUDY Discuss thorough study of United Bank Limited. To understand the various operations and to equip with practical knowledge of the United Bank Limited. LIMITATIONS OF THE STUDY Some thing is better than nothing. No matter how efficiently a study is conducted, it cannot be perfect in all aspects. This study was conducted in accordance with the objectives of the study. The study may not include broad explanations of facts and figures due to the nature of the study. Secondly, the limitation, which affects the study, is the restriction on mentioning every fact of the bank due to the problem of secrecy of the bank. Thirdly, the problem of short time period also makes the analysis restricted as one cannot properly understand and thus analyze all the operations of a bank just a very short time of Three Months. METHODOLOGY The report is based on my three months internship program in UBL. The methodology reported for collection of data is primary as well as secondary data. The biggest source of information is my personal observation while working with staff and having discussion with them.

Primary data: Primary data include Personal observation and questioning with the banking officials. Secondary data: Secondary data consist of marketing material, broachers, leaf lets, Newspapers, Annual Reports and Internet. SCHEME OF STUDY 1st chapter discusses the introduction of report, its Background, Purpose, Scope, Methodology, limitations and Scheme of the report. Second chapter is on brief history of banking in general, Nationalization of banking in Pakistan, Introduction of UBL, vision and mission statement, and its objectives, functions of United Bank Limited. In third chapter the services and the departments of UBL is explained as well. Fourth chapter explain financial analysis analysis. Fifth chapter prevent findings recommendation and conclusion.

ORGANIZATIONAL STRUCTUR

ORGANIZATIONAL HIERARCHY
PRESIDENT
SENIOR EXECUTIVE VICE PRESIDENT GRADE 22 EXECUTIVE VICE PRESIDENT GRADE 21 VICE PRESIDENT GRADE 20 ASSISTANT VICE PRESIDENT GRADE 19 GRADE I OFFICER GRADE 18 GRADE II OFFICER GRADE 17 GRADE III OFFICER (GRADE 16)

ORGANIZATIONAL & FUNCTIONAL STRUCTURE

CHAIRMAN DEPUTY CHAIRMAN

PRESIDENT

COMMERCIAL HEAD

COUNTRY OPERATIONAL HEAD

REGIONAL SALES HEAD

REGIONAL OPERATIONAL HEAD

AREA SALES MANAGER

AREA OPERATION MANAGER

SALES MANAGER

OPERATIONAL MANAGER

FUNCTIONAL DEPARTMENT OF THE UBL

HEAD QUARTER

INTERNATIONAL DIVISION

IT DIVISION

AUDIT & INSPECTION DIVISION

SPECIAL ASSETS MANAGEMENT DIVISION

CREDIT DEPARTMENT

MANAGEMENT DEPARTMENT

COORDINATION DEPARTMENT

AUDIT DEPARTMENT

ORGANIZATION STRUCTURE OF THE BRANCH OF UBL

BRANCH MANAGER

MANAGER (OPERATION)

OFFICERS

COMPUTER INCHARGE

ASSISTANTS CASHIER

GUARDS

THE BANK A bank is a financial institution that offers the widest range of financial services. These financial institutions play a vital role throughout the worlds economic system.Caircross defines bank as: A bank or banker is a dealer in credit or more properly a dealer in money. It is an intermediate party between the borrower and the lender. It borrows from one party and lends to another. Also A bank includes a body of person, who carry on the business of banking Or A bank is a financial intermediary accepting deposits and granting loans; offers the widest menu of services of any financial institution. 2 main services of bank are accepting deposit and lending loans. The banking structure of Pakistan consists of State Bank of Pakistan, Commercial Banks, Exchange Banks, Cooperative Banks, Saving Banks and specialized Credit Institution. EVOLUTION OF BANK Some authors are of opinion that the word bank is derived from the word "Banqus" or Banque which means a "Bench". This is attributed to the fact that the Jewish transacted the business of money exchange on bench in market place. According to banking companies ordinance 1962 Banking is business receiving for lending or investment, of deposits of money, from public, repayable on demand or otherwise and which draw able by check, draw, order or otherwise.

BANKING IN PAKISTAN At the time of independence here were 487 offices of scheduled banks in the territories now constituting Pakistan. As a new country without resources it was very difficult for Pakistan to run its own banking system immediately. Therefore in accordance with the provision of Indian independence Act 1974, an expert committee was appointed to study the issue. On the recommendation of committee Reserve Bank of India continued to function in Pakistan, till 30th September 1984, so that problem of time and demand, liability, coinage, currencies exchange etc be settled between India and Pakistan. It was decided that Pakistan will take over the management of public debt and exchange control from reserve Bank of India on 1st April 1948, and that India notice would continue to be legal tender to Pakistan till 30th September 1948. Following the announcement of independence plan in June 1947, the Hindus residing in the territories now comprising Pakistan started transferring their assets to India. Moreover the banks including those having the registered offices in Pakistan transferred to India in order to bring a collapse of new state. By 30th June 1948, the number of offices of scheduled banks in Pakistan declined from 487 to only 195. There were 19 non-Indian foreign banks with the status of small branch offices, which were engaged solely in export of crops from Pakistan institutions i.e., Habib Bank and Austro Asia Bank.

Yet some other banks i.e. UBL was privatized in 2002 and HBL was also privatized in October 2000

INTRODUCTION OF UBL/ ORGANIZATION STRUCTURE UBL was established November 7, 1959. After seeing so many ups and down in 2002 finally it has been IN 2002 with Abu Dhabi Group (UAE) and Best way Group (UK) each acquiring 25.5% shares and management control in the bank. The Government of Pakistan (GoP) held 44.7% at year-end 2006, having divested approximately 4.2% to the public when the bank was listed on the exchanges in 2005. Another 20-25% is being divested by the GoP to international investors through a GDR offering, which will enable listing on the London Stock Exchange. The Board of Directors of UBL is chaired by H. H. Shaikh Nahayan Mubarak Al Nahayan who is a prominent member of Abu Dhabis royal family. Deputy Chairman of the bank, Sir Mohammed Anwar Parvez, is currently chairing the Best way Group which is one of the largest wholesalers in the UK market. There are 5 other board members, including 3 nominees of the GoP. Mr. Atif Bukhari, President & CEO, has been associated with the bank since 2004 and has extensive prior banking experience as does the senior management team of the bank. The team has largely remained stable except for the position of Group Head Treasury, that has been vacant far the past 10 months. As at December 31, 2006, the organization had a total staff strength of 15,369 (FY05: 13,479) employees, of which 9,738 were the banks own staff, while the remaining were out sourced resources. Turnover for the year was about 10%, while approximately 1,300 new employees had been hired during the year. UBL has a growing presence in the international market through 17 branches in various foreign countries, with significant activity in Middle Eastern markets, particularly in United Arab Emirates and the Kingdom of Bahrain. Additional branches in the Arabian region will be established during the on-going year. Profit before tax from international.

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Operations increased by 31% to Rs. 2.48b during FY06. International business has increased considerably with increased mobilization of deposits, which rose by 61% to Rs. 63.5b while advances increased by 46% to Rs. 38.8b. Two major strategic initiatives during the out-going year included the formation of an insurance company, UBL Insurers Limited and launch of UBL Ameen, the Islamic division of the bank. UBL Ameen will target customers through dedicated Islamic banking branches. UBL was also one of the first few banks to set up an asset management company.

ROLE OF FINANCIAL MANAGERS

Financial managers play a dynamic role in companys development. Financial manager raised funds by borrowing from financial institution at contracted rate for a specified period of time. Financial manager manage firms cash position. They are entering into transaction of lending to financial institution. It is the responsibility of Finance manager to provide and arrange the cash when it is needed. It is the duty of Finance manager to check the credibility of the customer to decide whether credit should be extended or not. ABL is disbursing the following Finance and financial manager maintain the relationship with other financial institutions in term of credit, cash and account management which are discussed below.

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ACCOUNT/ FINANCE DEPARTMENTS Honesty Integrity Commitment & Dedication Fairness & Meritocracy Team work & collaborative spirit Humility and mutual respect Caring and socially responsible

SLOGAN UBL where you come first CREDIT RATING Credit Rating by JCR - VIS Credit Rating Company Limited - June 26, 09 Long Term Rating: 'AA + ' United Bank Limited is one of the largest Commercial Bank in Pakistan. The Bank's long term rating is AA +, which denotes good credit quality. Protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. Short Term Rating 'A-1+' The short-term rating is A-1+, which denotes the highest certainty of timely payment. Short-term liquidity, including internal operating factors and / or access to alternative sources of funds, is outstanding and safety is just below risk free Government of Pakistan's short-term obligations.

Term Finance Certificate Rating:` 12

TFC TFC TFC TFC

I: II: III: IV:

'AA' 'AA' 'AA' 'AA

SOURCES OF FUNDS

Following main sources of funds of ABL are Deposits, share capital, subordinated loan, and borrowing from financial institution. Following main sources of funds with their actual figures are: (Rs. IN 000) Sources
Deposits Share capital Subordinated loan Borrowing

2008
297,475,32 1 6,463,64 4 2,498,00 0 27,778,15 1

2007
263,972,38 2 5,386,37 0 2,499,00 0 22,933,65 6

2006
206,031,32 4 4,488,64 2 2,500,00 0 18,410,42 5

2005
161,907,49 1 4,404,64 2 9,785,69 3 0

2004
126,391,75 2 4,404,642 12,538,43

Deposits are the main source of fund of ABL. Bank receives deposits from the customer at lower interest and lends these deposits to the other group of people at higher interest. The markup received on the lending money and pay profit to the depositors after meeting banking expenses. Share capital, subordinated loan and borrowing from financial institutions are the other sources of fund. Funds borrowed from the local interbank market against government securities to meet the urgent needs.

GENERATION OF FUNDS 13

Banks generate funds through Interest income, Dividend income, Fee, Commission, Brokerage income, Income from dealing in foreign currencies, Gain on sale of securities and other income.

Generations of funds with their actual figures are: Rs IN 000

Interest income Dividend income Fee, commission & brokerage income Gain on sale of securities Income from dealing in foreign currencies other income

2008
30,570,54 0 1,420,36 4 2,291,45 9 151,06 8 230,06 0 59,15 4

2007
21,201,42 2 147,18 4 2,062,67 7 1,439,38 7 194,87 9 77,43 5

2006
17,215,50 7 193,25 5 1,353,88 8 376,79 2 282,28 5 273,02 8

2005
9,892,05 1 46,14 6 1,220,36 2 124,38 3 250,22 4 272,76 2

2004
5,244,71 0 15,23 0 1,255,15 3 14,00 8 265,34 5 154,68 2

Interest received on lending is higher than the interest paid to the customers. Difference between receipt and payment of interest is the earning of bank. Bank generate fund through these heads e.g. interest, non interest income and other income that increase revenue of bank. From 2004 to 2008 ABL generate more funds by purchasing stocks of different companies to earned dividend and enhance facilities to customers. Bank invests money into profitable projects and lends it at higher interest rate to increase earning. ABLs earning is going to increase by efficient exploitation of resources.

ALLOCATION OF FUNDS

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Funds are allocated in short-term loans repayable at short notice, investment in government and other stock exchange securities, loan and advances to trade, commerce and industry, purchase and discounting of bills, financing import and export trade.

Rs IN 000
Advances Investmen t

2008
212,972,00 8 82,631,11 8

2007
168,407,28 0 83,158,46 3

2006
14,033,63 4 46,953,24 1

2005
110,946,97 2 44,830,05 8

2004
59,484,81 2 57,321,02 0

Banking sector advances in Pakistan grew from 2004 to 2008, whereas growth in the Banks advances was superlative in 2008. The growth pattern indicates that the Bank has outpaced overall credit growth of banking sector, while concomitantly maintaining healthy Advances to Deposit Ratio and Capital Adequacy Ratio. While expanding the advances portfolio, the diversification takes into account the volatility of various sectors by placing concentration limits on lending to these sectors thereby ensuring a diversified advances portfolio. Composition of the banks advances portfolio is significantly diversified. Textile, Cement, Financial Institutions, Agriculture and Transport/Communication are major contributors to the advances portfolio. Advances are allocated to both public/Government and private sectors. The Bank has entered into various agreements for financing with the State Bank of Pakistan (SBP) for extending export finance to customers. As per the agreements, the Bank has granted the SBP the right to recover the outstanding amount from the Bank at the date of maturity of the finance by directly debiting the current account maintained by the Bank with the SBP. Long Term Financing against Export Oriented Projects (LTFEOP) availed by the Bank for further extending the same to its customers for export oriented projects, for a maximum period of 7.5 years. Investments remain powerful in market treasury bills, bonds and debentures and other companies. PRODUCT & SERVICES We can describe UBL product & services in to four major categories

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Deposit Cards & Loans Services NRP Services DEPOSITS UBL offers variety of depository services to its clients in the shape of different accounts

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RTA (PLS SB ACCOUNTS) Main Features Account on profit & loss sharing basis Checking account Minimum deposit at the time of A/C Opening is Rs.100/No restrictions on withdrawals Profit is paid at the rates declared by ALCO after every six months. Profit is credited in the account on a six monthly basis. Profit is calculated on monthly product basis; the lowest credit balance between the close of business on the first day & the last day of calendar month is treated as the product of the month. Withholding tax @ 10% on profit amount Account subjected to Zakat

Restrictions Only one account shall be opened in one name Overdraft facility is not allowed Accounts not to be opened in the names of: Local bodies, Autonomous corporations, Companies & Firms

Current Deposit Accounts Checking account No profit paid

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RUPEE BUSINESS PARTNER ACCOUNT

Vision To be the preferred banker to our target which includes traders, businessmen, proprietorships partnerships, small & medium size companies and well established organizations UBL Business partner is a specialized Current checking account which aims at providing the necessary avenue for individual / corporate customers of bank to transact all their business. It will substitute the existing CD account by making value additions, mainly technology and services driven Primary Target Market Traders Businessmen Proprietors Partnerships Employed Professionals Small & Medium Size Companies

3.3 UBL BASIC BANKING ACCOUNT (BBA) To accommodate the banking needs of low income groups, United Bank Limited is pleased to launch the UBL Basic Banking Account Scheme (UBL BBA) from February 25, 2006 across its branch network all over Pakistan. This is primarily aimed toward helping the low income group to benefit from the banking services without having the pressure to maintain specific balance amount with the banks. Find below basic product features of the Product:

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Special Features The minimum initial deposit at the time of account opening is to be Rs. 1000/-. Basic Banking Account will be a current account. There is no minimum balance penalty on UBL BBA accounts, however all accounts having nil balance for a continuous six month period shall be closed. All Business Partner waivers allowed if minimum balance requirement condition as per SOC is met by the account holder. Maximum of two deposit and two withdrawals (cash or clearing) per month are allowed free of charge. However, any transaction (cash or clearing) after those mentioned above will be charged a flat fee of Rs. 50/-, in addition to the regular charges of services as per SOC. This charge will be system generated end of day, once the customer exhausts his free transaction limits. BBA customers will be allowed unlimited free ATM withdrawals from UBLs own ATMs. However, withdrawals from other banks ATMs will be charged as per the existing SOC (currently Rs. 15/- per transaction). Annual fees including issuance and renewal of ATM card will be charged as per existing SOC. All other banking services provided will be charged as per the prevailing SOC. The statement of account will be issued once a year for UBL BBA customers in June. Issuance of duplicate statement will entail a charge of Rs. 50/- as per SOC. Like the regular Current accounts, UBL BBA will also be Zakat Exempt accounts. Any existing customer wanting to convert his/her checking account into Basic Banking Account can do so by giving a written application to the Branch Manager upon which existing account will be closed and a new UBL BBA account will be opened and a new account number will be provided to the customer after due account opening procedures, including submission of CNIC, if not provided earlier. The deposit in the previous account will be transferred to the newly opened UBL BBA. Charges for closing any existing account shall be recovered as per SOCs.

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UBL UNIFLEX ACCOUNT UBL has introduced a new checking account ideal for small investors, traders, businessmen and customers from middle income group. They can now afford an amazing rate of return plus value added benefits only available from the UBL UniFlex PLS Savings Account.

Special Features Amazing rate of return Convenience of a cheque book Power of Wallet VISA ATM / Debit Card Online Banking Facility

UniFlex Rates & Tenors Four rate tiers are offered to UniFlex customers Minimum Balance touched in month (Rs.)

Proposed rate Dec 2008* 7.00%

Rs. 0 - Rs. 50,000 7.25% Rs. 50,001 - Rs. 1,000,000 7.50% Rs. 1,000,001 Rs. 5,000,000 7.75% Rs. 5,000,001 Rs. 10,000,000 8.00% Above Rs. 10,000,000

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Terms & Conditions All individual and joint account holders and sole proprietorships are eligible for the UBL UniFlex Account (scheme); Corporations and partnerships are ineligible for the scheme. Only one UBL UniFlex account per Computerized National Identity Card (CNIC) shall be allowed to be opened in UBL, regardless of the branch; no doubling shall be allowed even as joint account or sole proprietor. The Bank shall determine from time to time the rate of interest/return/profit payable on the account/deposit in accordance with the prevailing profit and loss sharing rules and regulations of the State Bank of Pakistan and the policies of the Bank which are subject to change from time to time and the account holder/depositor agrees to accept such rate of interests/return/profit at the time such change was made. Interest/return/profit shall be accrued monthly, based on minimum balance touched during the month, and disbursed six monthly directly into the UniFlex account. The UBL UniFlex account cannot be overdrawn. Accounts that are closed in the middle of a month will not be eligible for any interest/return/profit for the broken period of that month. Wallet VISA card is optional; charges as per Schedule of Bank Charges (SOC). (Please apply on the regular Account Opening Form) Regular checkbooks shall be provided as per Schedule of Bank Charges (SOC). Customer can conduct a maximum of three free of cost withdrawal transactions in a calendar month (inclusive of all instruments). These withdrawals include but not limited to Net banking, cash withdrawal by ATM, cash withdrawal over the counter, Inter Bank Funds Transfer (IBFT), clearing, collection, Online banking, Tez Raftaar, Tez Ibex, MT/DD/TT/PO/Online (UniRemote), RTC, etc. The Bank will charge a sum of Rs. 100/- per transaction for any withdrawal above the threshold of three debit 22

transactions in one calendar month. However, there is no limit for credit transactions in a month. All single debit incidents to an account will be considered as separate transactions except deductions by the bank for charging service fee, Withholding Tax and Zakat deductions. All transactions, including the three withdrawals allowed will be charged as per the Schedule of Bank Charges (SOC). The UniFlex Account Holder shall be required to maintain the minimum balance requirement of Rs. 10,000/- during each calendar month. Service charges where the average balance during the month is less than Rs.10,000/- shall be applied as per the Schedule of Bank Charges (SOC). PLS UNISAVER ACCOUNTS Accounts opened in a similar manner as normal PLS Savings accounts. Eligibility Individuals Firms Companies Trust & Associations

Minimum Balance Requirement Rs.10,000.00

Withholding Tax & Zakat Profit Special tiered rates of profit are admissible for Applicable as per Government directive

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UNISAVER ACCOUNT Special Features Innovative and flexible checking account Attractive rates of return Profit is calculated on monthly average balance Profit payment is on six monthly basis Higher return on higher balances Backed by the bank awarded AAA Credit Rating

UNISAVER PLUS Features Product Type Min. Investment Profit Rate Rate Revision Profit Payment Profit Compute No. of Transaction Product positioning Tiers and Preferential Rates Profit Computation Monthly Profit payment 24 Checking Account Rs. 50 million Special rate approved by HO On HO discretion. Monthly Daily balance basis Unlimited

Transaction Limit and Notification Intimation to Branch by customer for any Inflow / Outflow of Rs.300/- m & above Branch to TCM before 3:00pm Penalty on CB by TCM If customer fails to notify, no interest for the notice period

Role of Business Offered to selective customers at special rates Prior approval from Head LBMG / Group Head CB Monthly review Data base of customers LBMG

Zakat & Withholding Tax Zakat as per Zakat & Usher Ord. 1980 W/Tax as per Income Tax law

MOBILIZATION OF FUNDS Procedure for Certificate of Deposits How you can earn a higher income on your surplus cash by investing it in UBL Profit Certificate of Deposit. UBL Profit helps you earn extra income with your hard earned money, while providing absolute trust and security. Two Types of Profit Payment Options Profit Payment at Maturity Monthly Profit Payment Salient Features

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Stable & High Rate of Return Avail one of the best and most stable rates of return by investing in UBL Profit CODs. Wide Choice in Tenor of Deposit: 3 month to 10 Years! You have the convenience of investing your money for the duration of your choice: anywhere from 3 months to 10 years. Security

UBL understands the value of your hard earned money and continues to deliver on the promise of safety and security. UBL's A+ credit rating by PACRA ensures a secured investment for your money. Easy Available Financing You can take a loan against UBL Profit CODs for both your short and long term financing needs. You can avail financing up to 90% of your deposit at a very nominal cost, allowing you to earn high profits and still have the liquidity to meet your financial needs. Easy Availability UBL Profit CODs are available across the nation at 916 online branches in more than 400 cities across Pakistan. Simply walk into your nearest online UBL branch and make a smart investment through UBL Profit Certificate of Deposit (COD). Free Insurance Coverage All UBL Profit COD customers shall also be eligible for the UBL Accidental Death and Permanent Disability scheme. Policy COD is a daily profit product with fixed maturity under the rules of Profit & Loss sharing. COD are of two type1.profit payment at maturity.2.Monthly profit payment. Choice of tenor for profit payment at maturity is from 3 months to 10 years

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Choice of tenor for certificates of monthly payment are from 1 year to 10 years Minimum booking Rs.50000/- with multiples of Rs.25000/- issued through a checking account. Multiple of CODs can be issued to the same customer against one booking form. ATM card shall be issued for link account for withdrawal of profit. Profit of COD shall be disbursed to the depositors through his checking account. Which shall be maintained in the same Branch & minimum balance penalty shall not be applied on this account. This link account shall not be transferred to dormant ledger. After encashment of COD this link account shall be treated normally as other accounts.

Financing facility is available (75 % upfront, which can be enhanced up to 90 %). Lien will be marked in the system and on the face of COD. COD held as security against lending shall be settled on maturity & no rollover will be allowed. Profit will be accrued / paid on monthly basis at the rate it was booked. Manual branches shall receive a report on monthly basis showing accrued profit till the date of last month. Zakat will be deducted on encashment value on payment date if COD was outstanding on valuation date/ or payment of profit whichever is earlier Exemption will be allowed if declaration (CZ 50) is registered with the Bank one month prior to the valuation date. Withholding Tax shall be recovered on the profit amount as per Law in force. Placement of funds by any Institutions is exempt from Zakat subject to submission of Zakat Exemption Certificate. Rollover option is available, & Uni bank shall do so on maturity at prevailing rate. For rollover instructions funds would be auto booked in the system at the prevailing rate for the next period. COD receipt is issued by the bank which is a security stationary. NR (it should be system generated). 27

Payment of monthly profit on COD Profit paid on monthly basis, Zakat is calculated on face value on relevant payment date. Exemption will be allowed if declaration (CZ 50) is registered with the Bank one month prior to the valuation date. Booking of COD on special rates HO approval needs to be sought. COD will be booked on HO declared rate in the system, no matter it is higher than monthly declared rates. If the rate negotiated is higher than the declared pool rate of the month the difference of pool rate and agreed rate should be compensated by the treasury to the concerned branch. Premature encashment COD Profit pays at Maturity Encashment shall be made through the account. Zakat is chargeable only once at the time of the payment on maturity on encashment value. The amount of Zakat shall be calculated on the payable value of the COD as existing on the morning of the valuation date of the Zakat year. No profit will be paid if COD encashed before 3 months. In case of encashment after 3 months, but before maturity, profit shall be paid@ PLS SB declared Rate at the time of booking on daily product basis. Premature encashment COD monthly profit Incase COD is encashed before one year No profit shall be paid & profit already paid shall be recovered from principal. CODs are issued in multiple of Rs.25000/- & as such partial encashment is possible.

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If COD is encashed after one year but before maturity, profit shall be paid @ PLS SB Rate prevalent at the time of booking. If profit paid is more then the calculation on PLS SB Rate, difference shall be recovered from principal.

As per current system where Zakat is deducted on principal amount once a year, the deductions of Zakat on monthly UBL COD will be calculated automatically by the system. If the month of Zakat lies between the tenor of the UBL profit COD-Monthly profit and the customer has not given the declaration, Zakat will be deducted from the profit. If one month profit is not sufficient the remaining amount of Zakat will be deducted from the next month profit amount till Zakat amount is fully recovered.

Procedure For COD customer should have a checking Account. For existing account holders only COD booking form is required giving full details, i.e. maturity, type of COD instructions for Roll over or settlement at maturity. Rate of profit shall be advised to the customer from monthly projected Rates. NR (rate information should be communicated by the system on available address/ email & send cell alerts by default. Customers Account shall be debited & COD account shall be credited. For issuance & payment maker & checker should be required. Original receipt shall be delivered to the customer / authorized person against acknowledgement on counter folio. System pass monthly accrual entries regarding CODs, & monthly payment of profit is auto credited in link account. On maturity funds are automatically transferred to customers COD account to link checking Account. RUPEE TRANSACTIONAL ACCOUNT If you choose to keep a deposit in a secured savings account which also gives an attractive rate of return, then UBLs PLS Savings Account will serve all your financial needs. By keeping your deposits in UBLs PLS Savings Account you can also avail the following services: 29

Special features are No limitation on withdrawals Share of profit is credited on half-yearly basis Profit is calculated on monthly balance UBL offers free accidental and permanent disability insurance to individual and joint account holders 683 branches 400 cities. Your Account in every one of them. Access your account from more than 683 online branches in 400 cities and towns across Pakistan. Our network is growing at an amazing pace and now you can avail services like: Issuance of Statement of Account/ Balance Inquiry Stop Payment of Cheque Speedy OBC process for cheques of other banks within & inter city Now customers can deposit all UBL and non UBL cheques in any online UBL branch for clearing / collection 9-5 Non-Stop Banking Banking at your own convenience has been made possible. UBL now offers 95 Non-Stop Full-Service Banking at all of branches (above 1000) across Pakistan. Cheques / cash (FCY & PKR) deposit & withdrawals PO / DD / RTC issuance (all local currency remittance transaction) against cash Utility bill payment Countrywide Instant Cheque Clearance Submit a cheque in Karachi and get it cleared in Peshawar within minutes. With online banking services, you can get your cheque cleared instantly, without any hassle. 30 Issuance of Pay Order, Demand Draft, Money Transfer & Telegraphic Transfer Country Wide Instant Funds Transfer Country Wide Instant Deposit / Withdrawal (both Cash & Cheque)

Instant funds transfer Funds transfer was never this easy. Make payments or receive payments within minutes using our online facility. With the introduction of Internet Banking now funds transfer is even made easier and is just a click away

REGULAR TERM DEPOSITS RECEIPTS If you wish to make a secured long term investment, UBLs Term Deposit Receipt is the smart choice, just make an investment and see your deposit grow over time. By investing in UBL Term Deposit Receipts: Features You can avail the Rollover or Renewed option at any time before encashment You can get your TDR en-cashed at any time before maturity period. Avail different attractive rates depending on the tenor you choose. Get the pleasure of availing the best rates of return in the market. Avail the services and facility of 9 - 5 non stop full service banking in all UBL branches (over 1000) across the country. UBL offers free accidental and permanent disability insurance to individual and joint account holders FOREIGN CURRENCY ACCOUNTS If you wish to maintain a secured foreign currency savings account then UBL is the safest and most secure investment. By opening a UBL foreign currency savings account: TYPES OF FOREIGN CURRENCY ACCOUNTS AVAILABLE AT UBL You get an attractive rate of return. Your profit is paid monthly on a floating rate based on money market conditions. You have the flexibility to choose from a wide range of tenors.

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Saving Account Current Account FC TDR

= = =

Profit Generating No Profit Profit on Maturity

All Profit Calculations are based on Schedule of Charges Account can be open in

Foreign Currency US Dollar Euro Pound Sterling UAE Dirham Saudi Riyal

Minimum Balance 500 400 300 2,000 2,000

Incidental Charges 5 4 3 20 20

Unizar Plus UBL Unizar Plus, a highly lucrative foreign currency account offers the following features Accounts can be opened in US Dollar, Pound Sterling, Euros, UAE Dhiram & Saudi Riyal You can maintain current, saving or term deposit account

Special features are Choose from different range of currencies i.e. US Dollars, British Pounds, and Euros etc. There are no cash handling (Cash Deposit & Cash Withdrawals) charges from the customers. Avail different attractive rates depending on the currency you choose. Get the pleasure of availing the best rates of return in the market. Unlimited withdrawals and deposits, making it easier for you to fulfill your routine business needs.

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Avail the services and facility of 9 - 5 non stop full service banking in all foreign currency handling branches such as foreign currency traveler cheque and demand draft issuance against cash and foreign currency cash deposits and withdrawals.

You can withdraw funds in either foreign currency or in Pakistan Rupees, whatever your requirement may be. UBL offers the widest reach across the country with an increasing number of more than 228 foreign currency dealing branches. You get to take your profit home every six months. Zakat exempted UBL offers free accidental and permanent disability insurance to individual and joint account holders

CARDS & LOANS UBL ADDRESS UBL BUSINESSLINE UBL CASHLINE UBL DRIVE UBL CREDIT CARD

UBL ADDRESS Owning a house of your very own is a cherished dream. A lot of planning and hard work is involved in making this dream come true. That is why, at UBL we aim to make your decision easier, by offering you the right ingredients that can help you realize your dream with absolute convenience Buying a Home
Why rent when you can buy? Buying a home of your choice has never been so easy. With a maximum financing limit of 70% you can easily buy a house or apartment that best fits your requirements. So go ahead

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and start the search for your dream home because with easy and affordable installments you need not think of renting a house when youve got UBL Address.

Building a Home
Have you ever settled for anything less than perfect? Theres nothing like building your perfect home, your way. With every detail in place like the elegant French windows or the perfectly manicured lush green lawn, just the way youve always imagined. By chalking out well planned fund tranches at each phase of the building process, UBL Address brings you your dream house one step closer.

Land Plus Construction

What do you do with an empty piece of land? Construct your dream house with all the aesthetic details youve ever wished for. UBL Address helps you through every stage of construction by providing you with well planned out fund trenches so that you can better manage your construction.

Floating Rate
In this option, you get a fixed rate for a period of 12 months, which gets re-priced annually. (Upward or downward, only to the extent of Kibor).

Eligibility Criteria
Minimum monthly income: Rs.50,000 Age: 23 to 65 years Resident Pakistani Self-employed businessman/professional or salaried individual Minimum loan size: Rs. 500,000

What is Business line? It is a Credit Line/ OD Facility against Residential Property. It is an evergreen credit line that the customer can use for his/her business expansion Features Utilize up to Rs.10 million. Now,

UBL Business line credit line is here to solve all your cash

flow problems. You can utilize up to Rs.10 million with the help of which you can now focus on your business expansion and growth.

LTV as high as 70%

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UBL Business line offers you the facility of availing a financing of up to 70 % of your property value. Now that you can avail a higher amount against your assets, you can plan your growth and expansion exactly the way you want to. In addition financing is offered to customers that are already availing a similar facility from any other bank. Mark up on utilized amount only With UBL Business line, now you no more need to pay for the entire credit line that you own. Business line gives you the facility to pay mark up only on the amount that you utilize. Faster Processing After completion of your documentation requirements, UBL Business line promises you a very smooth and fast processing, hence saving you time and frustration. Wide Accessibility UBL Business lines availability in major cities like Karachi, Lahore, Faisalabad, Islamabad & Rawalpindi, is complimented by UBL s countrywide branch network enabling our customer to access his account, and deposit or withdraw cash, no matter where he stands within the country. Competitive Rates At UBL, you come first, which is exactly the reason why we offer our customer such competitive rates that would facilitate him in leveraging his skills to the maximum and in bringing about the success that he deserves. ELIGIBILITY CRITERION

If you fall in the following criteria, then UBL Business line is just the right choice for you Minimum monthly income: Rs. 50,000 Age: 25 55 Resident: Pakistani. Self Employed Professional / Self Employed Businessman.

UBL CASH LINE UBL Cashline is a flexible loan that provides you cash up to Rs.500,000 without any security requirements. It empowers you to take control of your finances. UBL Cashline is aimed to make your life easierZINADGEE

ASAAN. Whether you are a salaried individual or a businessman, UBL Cashline takes care of your cash
requirements. Cashline offers you: Flexibility

No fixed monthly installment.

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Principal repayment at your convenience. No prepayment penalty. Markup only on utilized amount. Worry free payment of bills, shopping, childs education, short-term business needs or just about any thing you can think of!

Empowermen t

For the first time in Pakistan, you can now control your markup. Enjoy lower markup on higher utilization of funds. Markup calculated on daily outstanding balance. Continuous line of credit.

Convenience Instant access to cash through the entire UBL network. You will be given a cheque book and an ATM/Debit Visa Card which you can use at 900,000 ATMs and 22 million outlets worldwide. Unsecured /clean lending, no collateral required.

UBL Net banking All UBL Cashline customers are automatically registered on UBL net banking and can avail numerous net banking features. How can you get Cashline? A salaried person of 21 to 60 years and your monthly net salary is Rs. 100,000 or more; A self employed business person/professional of 21 to 65 years and your monthly net take home income is Rs. 100,000 or more. UBL DRIVE UBL Drive is a unique auto financing product which offers you features, options and flexibility unmatched by any other bank, because at UBL, You come first. New Car Financing UBL Drive allows you to drive away in your own car by making a down payment of just 15% and to top that with low monthly installments.

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Used Car Financing With UBL Drive you can buy your favorite used car (up to 5 years old) at the most affordable rates. Car Replacement Plan Drives Car Replacement Plan is the slogan name for a premier auto financing product. Customers who intend to avail loan facility from UBL Drive under this variant can readily have their existing cars replaced after a year of financing. Product Features Free Tracking Device Option will be provided to the customers on affordable rates. this will be done in collaboration with the insurance companies on our panel. Free Life Insurance Coverage Includes accidental death coverage and medical reimbursement to the customers in case of any unforeseen circumstances. Zero Pre-Payment Penalties No penalty will be charged from the customer if the loan is been paid off after a year. Payment Holidays A unique concept whereby which payment breaks will be given to the customers on occasions such as Eid etc. Payment Holidays will be given once a year to the customers. Payment Flexibility Whereby which the customer will be provided the flexibility to change the loan tenor, opt for partial payment of the outstanding principal amount.. Insurance Options

UBL Drive offers you the following insurance options: Comprehensive insurance Insurance financing for the first year Discounted rates with Tracker car security device installed at customers' cost

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AGRICULTURAL PRODUCTS LOANS Farm Loans Production Loan Financing is available for Major and Minor crops across Pakistan. Main purpose of financing is to facilitate farmers to purchase Agri Inputs such as Seeds, Fertilizers, Pesticides, Sprayers, hired labor etc. NIACF (Revolving Credit Scheme)

Loan Tenure 3 years Documentation once for 3 years. Cleanup once a year Option for the farmer to use limit as per requirement Markup is charged on amount used or withdrawn Minimum Amount PKR 30,000 Maximum Amount as per requirement of the farmer

NIADF (Demand Finance Production)

Loan Tenure 3 months to 1 year 18 months for Sugar cane only Lump sum disbursement of the limit for a specified period. Repayment of loan in bullet payment on maturity (Principal and markup). Minimum Amount PKR 30,000 Maximum Amount as per requirement of Farmer

Development Loan Land Development, Equipments and Machinery Financing for Land Improvement, Water course improvement, Tube wells, Lift pumps, Deep turbine pumps, Cotton pickers, Godown, Cold Storage, Harvester, Thresher, etc

Loan Tenure 1 to 5 years Lump sum disbursement of the limit for a specified period. Repayment in installments (Principal with markup). Repayment mode monthly, quarterly and half yearly

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Minimum Amount PKR 30,000

Tractor & Vehicle Finance To purchase Tractors, Delivery Vans, Mini Trucks, Motor Cycle and other vehicles used for marketing Agri Products. Loan Tenure

1 to 3 years for Motor Cycle 1 to 7 years for Tractor 1 to 5 years for other 4 wheel vehicles Lump sum disbursement of the limit for a specified period. Repayment in installments (Principal with markup). Repayment mode monthly, quarterly and half yearly Minimum Amount PKR 100,000 Maximum Amount PKR 1,500,000

Non Farm Loans Live stock Financing Dairy Farming, Meat Farming, Fattening of Animals, Rearing of Animals, Construction of Sheds, Milk storage tanks, acquire and establish modern and efficient livestock facilities.

Loan Tenure 1 to 5 years Monthly / Quarterly repayment mode for Dairy Farmers Monthly / Quarterly / Half Yearly repayment mode for Meat Farmers Minimum Amount PKR 50,000 Maximum Amount as per requirement

Poultry Financing Poultry Farm structure and equipments, Hatchery farm structure and equipments, Feed Mills, Purchase of Chicks, Feed, Medicines, Storage tanks, Cold storage, Construction of shed, etc.

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Loan Tenure 1 to 5 years Monthly / Quarterly repayment mode for all loans Minimum Amount PKR 50,000 Maximum Amount as per requirement

Fisheries Financing Fish seed, Fish feed, Manuring, Construction of pond, Curing and Dying by fishermen, etc.

Selection Criteria Eligibility Should be a Pakistani & holding CNIC Preferably an account holder of UBL Permanent resident of the area Should be Agri land owner Self cultivator Minimum 3 years experience in relevant field Not a defaulter of any bank Have repayment capacity Able to produce proper securities / Passbooks / sureties

SMALL BUSINESS SCHEME

Under the Small Business Scheme, UBL is providing loans on easy terms to those who wish to set up their own small-scale business. This scheme is aimed at spreading prosperity in the country by reducing unemployment. As more and more people start their own industrial units, the country will move steadily towards economic self-reliance.

UBL CARDS 40

Welcome to the world of UBL Credit Cards, the most exciting and vibrant credit card brand in Pakistan. We offer you a range of innovative and exciting cards that is not only powered by the security of chip but also enable you to personalize it any way you want. In order to get more information on our credit cards range, click on the following cards

UBL Credit Card Features

Your UBL Credit Cards exciting and value added features will change your life in a manner which will ensure that you constantly enjoy living it.

3.3 The UBL Credit Card Low Balance Transfer Rate

Now you can really save big time with your UBL Credit Card Balance Transfer Facility! You have the opportunity to pay off balances you owe to other banks through your UBL Credit Card on a low balance transfer rate. Transferring your balances to your UBL Credit Card is simply a phone call away, just call our 24-hour UBL Contact Center at 111-825-888. You can also fill in the Balance Transfer form included in the Welcome Pack and mail it to the UBL Card Center address mentioned on it. Alternatively, you may simply use the drop box facility available at all designated Card Payment Branches nationwide to forward your application.

24 Hour Customer Service

By simply calling our 24 hour UBL Contact Center at 111-825-888 or logging onto our website www.ubl.com.pk, you can avail the following facilities on your UBL Credit Card, 24 hours a day, 7 days a week. Complete online access to your card account including credit card transactions and billing statements

Cash Advance
You can now withdraw cash through your UBL Credit Cards instant cash advance facility from any designated UBL Card Payment Branches nationwide and more than 780,000 ATMs and financial institutions worldwide displaying also apply for each cash withdrawal. VISA/PLUS logo. The service charges for cash advance will be applied from the day of the transaction. A cash advance fee will

Upto 4 Free Supplementary Cards

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To share the value, excitement and benefits of your UBL Credit Card with your loved ones, your UBL Credit Card offers you up to 4 free supplementary cards. For your convenience, both your own, and the supplementary card transactions will be clearly itemized in your monthly statement. This will let you know at a glance how the spending took place and who spent how much, hence making it easier to manage the spending on each of your cards. The more spending there is on your supplementary cards, the more Free Road miles or Classic Reward points are earned on your account. Also, the supplementary card holder benefits by earning instant and exciting UBL Chip Rewards on his/her own card. The limit on all supplementary cards can be controlled according to your instructions at the time of application, or later by a simple phone call to UBLs 24-hour UBL Contact Center at 111-825-888.To apply for a supplementary card now, please fill in the supplementary card application form and mail it to the UBL Card Center. Alternatively, you may simply use the drop box facility available at all designated Card Payment Branches nationwide to forward your application.

Buy today, pay later

Your UBL Credit Card gives you the financial flexibility to buy today and pay after a month at no extra charge. You have the option of paying a minimum 5% of the outstanding balance or any other amount of your choice up to your total account balance. A service charge of only 3.25% per month will apply to whatever remaining unpaid balance that is carried forward.

Credit Guardian
UBL takes care of its Credit Card members payments in time when they cannot. Our Card members can now get total peace of mind and insure themselves against unforeseen emergencies. In the event of any temporary disability where UBL Cardmember is unable to pay his/her monthly dues, Credit Guardian will allow payment of the outstanding monthly amount. Moreover, in the unfortunate event of permanent disability or death, the entire outstanding amount will be waived off. Credit Guardian Facility is available for a minimal fee, charged automatically on the card balance every month. Card members can opt for this facility by calling our 24-hour UBL Contact Center at 111-825-888.

Free Travel Accident Insurance

Each time our Card members use their UBL Credit Card to purchase airline, train or bus tickets, they are automatically covered against any sort of accident that might befall them while traveling The coverage amounts are:

Classic Card: Up to Rs. 3.5 Million Gold Card: Up to Rs. 7 Million

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Zero Loss Liability

Isnt it comforting to know that if you lose your card, you have nothing to worry about! You are covered for all fraudulent charges made on your card as soon as it has been reported lost to us. So make sure that you report the loss immediately upon discovery at UBLs 24 hour UBL Contact Center at 111-825-888. Rest assured that with your UBL Credit Card, you are completely secure against loss and theft. Free CIP Lounge Access Take advantage of the special CIP Lounge at Karachi International Airport with free secretarial services, free buffet, internet connection, reading material and 24 - Hour porter facilities. Just present your card at the lounge and enjoy the privileged treatment you deserve. How and Where to Pay Your Monthly Card Payment ? For the monthly payment of your UBL Credit Card bill, you can simply use any of the following payment channels:

SERVICES UBL BETTER LIFE BANCASSURANCE UBL WIZ UBL NET BANKING UBL E-STATEMENT HAMRAH UBL WALLET CHARITY AND DONATION

3.4 UBL WIZ UBL Wiz is Pakistans first ever Prepaid VISA Debit Card that provides the convenience, security and benefits of an ATM and Debit Card, locally and internationally. More than just an ATM card, you can use your UBL Wiz everywhere VISA cards are accepted. Whether you are using it online, paying for petrol, shopping or dining, you are accessing money directly from your prepaid card, without having to visit the bank. 3.5 UBL BETTER LIFE- BANCASSURANCE We are pleased to announce the launch of UBL Better Life Plans under the umbrella of Banc assurance, in partnership with EFU LIFE Assurance Company in selected 100Branches.

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What is Bancassurance? Banc assurance is the selling of insurance and banking products through the same channel, most commonly through bank branches. Product Offering UBL Better Life plans are advanced insurance products specifically designed to benefit the customers, providing the better and secured future to your family and loved ones.

UBL Better Life Child Education Plan UBL Better Life Child Education Plan provides a complete financial package for planning your childrens education, by helping you create an endowment fund for this purpose in an organized and disciplined manner, over a predetermined period. To put your son or daughter through college or university, this Plan is spot on! UBL Better Life Marriage Plan UBL Better Life Marriage Plan provides a complete financial package for planning your son or daughters marriage, by allowing you to accumulate an endowment funds for this purpose in an organized and disciplined manner. Whether it is meant for your son or daughters marriage or to help them to start off a new life of their own, this plan is spot on! UBL Better Life Savings Plan UBL Better Life Savings Plan is a high value savings and investment vehicle. Funds accumulated during the savings term can be utilized for childrens higher education, marriage, buying a house, generating retirement income or for any other purpose. The plan is flexible enough to respond to most individuals needs. It is a unit-linked plan which aims to deliver a substantial sum of money at the end of the savings period. The additional benefit of course comes in the form of life insurance cover.

UBL Better Life Retirement Plan Planning ones retirement is vital to ensure that a decent standard of living is maintained without being a burden on anyone. UBL Better Life Retirement Plan allows financial independence after retirement. Contributions to the plan are invested in accumulation units to build up substantial capital. At retirement, this capital generates attractive pension payments after the age of 60, as well as a range of protection benefits tailored to ones needs. UBL NET BANKING

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Net banking is an Internet banking portal offering a simple, convenient and secure method of accessing bank accounts on the Internet. It's never been so easy to access and manage your finances in a secure, real-time, online environment; Anywhere, Anytime. Using net banking, the customers have access to their bank accounts 24 hours a day, 7 days a week and can keep a close eye on their account balances, print account statements, pay bills, transfer funds, track purchases and schedule their recurring payments at the touch of a button and much more. UBL E-STATEMENT

Are you fed up of filing your Statement of Accounts? Do you want fast delivery of your Account Statements? Do you want to be in constant touch with your account?

UBL brings a simple solution to all your problems by introducing the UBL e-statements facility. UBL is pleased to announce the launch of the UBL e-statement facility which makes it easier for you to get your statement of accounts and automated transactional debit/ credit alerts right into your inbox. Available for all Rupee and Foreign Currency Account holders, you now do not have to wait for six months to receive a paper based statement of your account any more. All you need to do is tell us the frequency of statements you require and we will ensure that it reaches your inbox

Absolutely free of cost : you dont need to pay any additional cost in order to get benefit from this facility. UBL believes in providing value-added service to customers and all you need to get started is your email address! A ccessible when you need it: UBL e-statement provides you a highly convenient facility to receive your statement anytime and anywhere in the world!

Security: As an alternative to printed statements, UBL e-statements eradicate the hassle of paperwork, box filling and the chance of having your unattended documentation read byothers.

Receive bill statements according to your needs: UBL e-statement can be delivered to you in the following frequencies Automated transactional debit/ credit alerts:

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Whenever there is an activity in your account, an email shall be sent to you with the complete transaction details. Easy to read format: You UBL e-statement shall be sent to you in an easy to read Adobe Acrobat format. HAMRAH (Rupee Travelers Cheques) UBL has always been at the forefront in identifying and meeting the financial needs of its valued customers. UBL was the pioneer in introducing Rupee Travelers Cheque facility in Pakistan, as early as 1971. In continuation of the same tradition, UBL in the shape of "Hamrah" Rupee Travelers Cheques enhances this facility for the convenience of its valued customers by offering denominations up to Rs. 10,000 UBL "Hamrah" has been designed keeping in mind, both convenience and security - be it business, property, trade or personal needs. "Hamrah" Rupee Traveler Cheques are the ideal and safest way of carrying cash when traveling anywhere in Pakistan. Hamrah RTC's are now accepted at more than 2000 places such as hotels, shops, real estate agents, jewelers, car dealers, etc and of course at all our UBL branches. UBL has a 24-Hours customer help-line, providing its customers with round the clock

tele-verification of "HAMRAH" travelers cheques. UBL Wallet With the power and international acceptance of VISA!

Your Wallet VISA ATM & Debit Card has all the convenience and security you desire and the quality you deserve. This Wallet holds all the cash in your bank account. Available to All UBL Account Holders UBL offers ATM and Debit Card facility to all account holders at all UBL branches anywhere in Pakistan, regardless of whether their branch is online or offline. Nine Supplementary Cards UBL Wallet VISA also gives you the facility of having up to 9 supplementary cards issued against one primary card. All supplementary cardholders will be able to conduct ATM/Debit transactions within the limits of the primary card account. UBL Wallet Your ATM Card UBL already has its own network of 336 ATMs in 83 cities, which continues to expand by the day. Moreover, UBL Wallet is now part of the 1 Link and VISA networks. These allow you to use your UBL Wallet VISA across Pakistan at more than 925 ATMs displaying the 1 Link logo and at more than 1 Million ATMs in 150 countries. It is also acceptable on the MNET network of ATMs in Pakistan. Your Wallet VISA Card will also be acceptable on all local VISA certified machines displaying the VISA Plus sign. UBL Wallet Your Debit Card

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With UBL Wallet VISA as your debit card, you can shop all you want, eat all you can or fill up your car tank without carrying any cash. Simply use your UBL Wallet VISA for direct debit from your bank account, along with the convenience of using signature based verification instead of a PIN (Personal Identification Number). The debit card facility is being offered in association with the Orix and VISA networks, which means that you can use your UBL Wallet VISA to conduct a debit transaction at any outlet in Pakistan that displays the ORIX or VISA logos. The Orix network offers connectivity at more than 5,000 outlets across the country, whereas your UBL Wallet VISA card is also acceptable at 22 million VISA merchant locations, local and international. Funds Transfer UBL Wallet VISA allows three kinds of instant funds transfer through UBL ATMs from your UBL account: Into any of your UBL account. Into any other UBL account. Into any other participating 1 Link bank (through the new UBL Inter Bank Funds Transfer facility) United Bank & the Spirit of Good Corporate Citizenship: As a bank that has always upheld the spirit of giving to its stakeholders, its customers & its society, UBL is now taking a step further and asking its valued customers to join hands with it & help strengthen its role as a corporate citizen. The corporate social responsibility that UBL has can only be wholeheartedly served when its valued customers come together with the bank in its contribution towards the betterment of society. The listed below charity organizations have Donations/Zakat accounts with United Bank. You can easily send your donations through UBL Net banking or Click N Remit if you are an expatriate. 3.6 NRP SERVICES

UBL Click n Bank UBL Click n Remit UBL TezRaftaar UBL NRP Direct

UBL CLICK N BANK Features & Benefits Complete online registration

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Tired of filling out long and complicated forms? With Click N Bank eNRP Account, you can now avoid cumbersome paperwork by simply registering online. It's simple, easy and quick! PKR Accounts operable nationwide Once you open a Click N Bank eNRP Account, you can operate it like any other regular account. The PKR account will be operable nationwide. Primary and Supplementary ATM cards 'Click N Bank' customers will be issued one Primary and Supplementary ATM Gold card - absolutely free. With a UBL ATM/Debit Card you can withdraw money from any of the UBL ATMs or partner ATMs (1-Link Network) in Pakistan providing you with easy access to cash. Check Book To get a Check Book all you have to do is order online. Provide a notarized specimen of your signature and the check book will be delivered at your door step. UBL net banking With a 'Click N Bank' account you are directly linked to all the exciting features and benefits of UBL net banking. What you can do?

Monitor and manage your account with 24/7 access Obtain real time account balance, statements and alerts Send money to anyone in Pakistan using the PC-to-Person facility, either through the account-to account transfer or get a TezRaaftar check delivered to the payee's doorstep within 48 hours. Pay your mobile & utility bills online in Pakistan Schedule recurring payments on weekly/monthly basis in Pakistan These features and many more make this facility the first of its kind to be offered by any bank in Pakistan

24x7 Personalized Regional SupportGet Personalized support directly from our branch in New York

Call our UBL New York branch @ 212-943-1275 ext 123 / 118 Minimum Fee

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With an initial minimum fee, you will be able to enjoy all the benefits of a regular account without any botheration. These features and many more make this facility the first of its kind to be offered by any Pakistani bank in Pakistan for its account holders from the US. CLICK N REMIT When you remit through UBL Click N Remit, you always have a greater sense of satisfaction that you are dealing with United Bank Limited - the most trusted name in banking. Coupled with extensive reach and unsurpassed reliability of United Bank's network, you enjoy excellent personalized customer service from our New York branch. So why deal with anyone else? UBL TEZRAFTAAR Free Doorstep Remittances With-in the country or from abroad, UBL offers the most efficient and price competitive service. With our large network of branches, we are poised to offer you service almost at your door step. UBL's new remittance service, TezRaftaar offers all overseas Pakistanis the fastest and the most convenient delivery of their money to their beneficiaries in Pakistan. Best of all, TezRaftaar is completely cost free and is available at all UBL branches along the Bank's Network in the Middle East, UK and US. Check out it's great benefits

Fastest delivery to your given address in Pakistan Doorstep delivery by authorized courier or credited to the recipient's account Free of charge transfer service Open to all including those who are not UBL account holders

NRP DIRECT United Bank brings to you a simple & convenient way to open, fund & operate a bank account in Pakistan. NRP Direct is the first & only deposit account ever to be launched for Non-resident Pakistanis. Now feel at home with your NRP Direct account! UBL NRP Direct is a simple & convenient way to open, fund & operate a bank account in Pakistan, and it is the first & only deposit account ever to be launched for Non-resident Pakistanis. With UBL NRP Direct, you do not have to rush to arrange money when your family urgently needs it. You can keep sending money into your NRP Direct account and your family can withdraw the amount whenever they need. Now feel at home with your NRP Direct account! Features & Benefits Complete online communication

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With NRP Direct no physical presence is required; you can be in the comfort of your home and still have a bank account in your native hometown. be launched for Non-resident Pakistanis! Its easy, convenient and the first & only service of its kind ever to

PKR accounts operable nationwide The first-of-its-kind service to be launched by any bank in Pakistan, the NRP Direct account can be operated it like any other regular account. The PKR account will be operable anywhere in Pakistan. Primary and Supplementary ATM cards NRP Direct customers will also be issued a primary and supplementary ATM card. With a UBL ATM card you can withdraw money from any ATM in Pakistan for easy access to cash. Cheque book To get your chequebook, all you have to do is order download & mail us the chequebook requisition form and the cheque book will be delivered at your doorstep. Incase you have already chosen the cheque book option in the account opening form, and then you do not need to order it separately. Net Banking

FREE

PREMIUM

Internet

banking

for

all

NRP

Direct

account

holders!

With your NRP Direct account you are directly linked to all the exciting features and benefits of Net Banking- absolutely free. You can:

Monitor and manage your account with 24/7 access. View real time balances, statements and receive alerts. Send money to anyone in Pakistan using the PC-to-Person facility, either through the Account-to Account transfer or get a TezRaaftar cheque delivered to the payees doorstep within 48 hours. Instant funds transfer to any other UBL account. Pay your mobile & utility bills online. Schedule recurring payments on weekly/monthly basis. Order your ATM card and set daily/monthly limits on it. Send gifts to your loved ones in Pakistan from our partner sites and pay through net banking.

Personalized customer support

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Get personalized support from us anytime, write to us at info.nrpdirect@ubl.com.pk or call us on +9221-111825-111/+9221-2446949 from 9am to 9pm Pakistan time. With a minimum fee for the PKR account, you will be able to enjoy all the benefits of a regular account without any inconvenience. These features and many more make this facility the first-of-its kind to be offered by any bank in Pakistan. Now feel at home with your NRP Direct account.

FINANCIAL ANALYSIS

4.1 BALANCE SHEETS (UBL)

ASSETS
Cash and balances with treasury banks Balances with other banks Landings to financial institutions Investments

2008 50,069,965 7,497,174 22,805,341 116,328,288 361,863,689 9,275,986 371,139,675 18,021,445 2,055,609 17,154,985 605,072,482

2007 57,526,451 4,191,128 24,781,723 115,585,646 293,373,007 5,981,729 299,354,736 16,943,950

2006 48,939,840 14,034,476 29,572,070 67,260,338 243,237,819 4,072,074 247,309,893 5,234,463 906,661 10,062,466 423,320,207

2005 34,074,786 12,717,100 17,867,552 63,026,944 201,152,095 3,658,375 204,810,470 4,449,324 2,273,005 7,829,770 347,048,951

2004 23,844,435 17,699,334 16,262,504 54,953,728 141,767,569 4,481,615 3,969,006 45,728 5,194,892 4,393,852 272,612,663

Advances
Performing Non-performing Operating Fixed assets Taxation recoverable Deferred tax asset - net Other Assets

Total Assets LIABILITIES

Bills payable Borrowings from financial institutions Deposits and other accounts Subordinated loans Liabilities against assets subject to finance lease Other liabilities Deferred liabilities

11,740,697 530,124,331

5,194,449 44,195,886 483,560,062 11,993,848 16,265,478

6,079,341 59,103,350 400,974,539 5,996,696 13,316,657 2,232,344

4,560,649 38,544,920 335,077,873 5,998,344 9,275,034

4,159,964 21,790,480 289,226,299 3,999,192 6,204,746

3,811,284 11,975,684 230,256,627 3,500,000 288 3,513,569 2,191,180

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Total Liabilities NET ASSETS REPRESENTED BY:

Share capital Reserves Un appropriated profit Surplus on revaluation of assets

561,209,723 43,862,759

487,702,927 42,421,404

393,456,820 29,863,387

325,380,681 21,668,270

255,248,632 17,364,031

Total Liabilites and Equity

10,117,188 15,501,513 16,604,076 42,222,777 1,639,982 43,862,759 605,072,482

8,093,750 10,261,958 15,653,703 34,009,411 8,411,993 42,421,404 530,124,331

6,475,000 8,298,873 12,429,853 27,203,726 2,659,661 29,863,387 423,320,207

5,180,000 6,225,461 7,350,813 18,756,274 2,911,996 21,668,270 347,048,951

5,180,000 5,915,928 3,274,439 14,370,367 2,993,664 17,364,031 272,612,663

4.2 PROFIT & LOSS ACCOUNTS (UBL)

Particulars Mark-up / return / interest earned Mark-up / return / interest expensed Net Mark-up / interest Income Provision against Loans and advances- Net (Excluding impact on account of change in prudential regulations) (Reversal) / additional Provisioning arising on account of change in Prudential Regulations Provision against Loans and advances- Total

2008 52,253,361 24,117,702 28,135,659

2007 41,045,543 16,936,187 24,109,356

2006 32,991,603 12,126,809 20,864,794

2005 20,158,860 6,045,948 14,112,912

2004 9,233,881 1,732,760 7,501,121

5,879,185

1,689,467

1,972,936

1,277,002

435,414

(1,369,229) 4,509,956

3,803,759 5,493,226 1,972,936 1,277,002 435,414

Provision for / (reversal of ) diminution in value of investment-net Bad Debts written off directly Net Mark-up / return / interest income after provisions Non Mark-up Interest Income Fee, Commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of securities Unrealized loss on revaluation of investments classified as held for trading Other Income Total Non Mark-up / return / Interest Income TOTAL INCOME Non Mark-up / Interest Expenses Administrative Expenses Other Provisions / write offs -net Workers welfare fund Other Charges Total Non Mark-up / interest Expenses Profit Before Taxation

2,219,815 1,367,514 8,097,285 20,038,374

(6,303) 935,123 6,422,046 17,687,310

74,573 269,349 2,316,858 18,547,936

112,666 38,140 1,427,808 12,685,104

(100,381) 3,841 338,874 7,162,247

6,304,927 587,989 1,819,250 254,046 (19,547) 1,454,729 10,401,394 30,439,768

5,165,066 548,782 827,328 849,367 (15,755) 1,617,564 8,992,352 26,679,662

3,876,799 837,338 659,726 280,864 (3,335) 1,296,996 6,948,388 25,496,324

2,543,739 202,343 675,109 382,419 (780) 1,210,202 5,013,032 17,698,136

1,654,475 1,102,510 668,085 981,154 4,406,224 11,568,471

15,519,634 450,390 336,999 258,321 16,565,344 13,874,424

13,420,977 236,281

10,952,275 226,313

7,874,013 335,409

6,702,709 (34,422)

17,430 13,674,688 13,004,974

25,980 11,204,568 14,291,756

7,066 8,216,488 9,481,648

10,456 6,678,743 4,889,728

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Taxation- Current Prior Year Deferred

6,090,351 435,072 (984,119) 5,541,304

5,075,600 442,066 (915,283) 4,602,383 8,402,591 12,429,853 20,832,444 63028 20,895,472

3,412,791 45,225 1,365,508 4,823,524 9,468,232 7350813 16,819,045 94454 16,913,499

498,748 78,614 2,955,254 3,532,616 5,949,032 3274439 9,223,471 94148 9,317,619

283,083 285,201 619,900 1,188,184 3,701,544 1384490 5,086,034 94214 5,180,248

Profit After Taxation Un appropriated Profit brought Forward

8,333,120 15,653,703 23,986,823

Transfer from surplus on revaluation of fixed assets-net of tax Profit Available for appropriation

253018 24,239,841

4.3 HORIZONTAL ANALYSIS A procedure in fundamental analysis in which an analyst compares ratios or line items in a company's financial statements over a certain period of time. The analyst will use his or her discretion when choosing a particular timeline; however, the decision is often based on the investing time horizon under consideration. For example, when you hear someone saying that revenues increased by 10% this past quarter, that person is using horizontal analysis. Horizontal analysis can be used on any item in a company's financials (from revenues to earnings per share), and is useful when comparing the performance of various companies. Time series analysis of financial statements covering more than one accounting period; also called Trend Analysis. It looks at the percentage change in an account over time. The percentage change equals the change over the prior year. This helps us identify trends from the financial statements. Once a trend is spotted it can be dug deeper and investigate why the change occurred. The formula to calculate the horizontal analysis is: = Current year value/Base year value) x100

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HORIZONTAL ANALYSIS BALANCE SHEET (BASE YEAR 2004)

ASSETS
Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Performing Non-performing Operating Fixed assets Taxation recoverable Deferred tax asset - net Other Assets Total Assets LIABILITIES Bills payable Borrowings from financial institutions Deposits and other accounts Subordinated loans Liabilities against assets subject to finance lease Other liabilities Deferred liabilities Total Liabilities NET ASSETS REPRESENTED BY: Share capital Reserves Un appropriated profit Surplus on revaluation of assets Total Liabilities and Equity

2008 210 42 140 212 255 207 454 40 390 222

2007 241 24 152 210 207 133 427 267 194

2006 205 79 182 122 172 91 132 1,983 229 155

2005 143 72 110 115 142 82 112 44 178 127

2004 100 100 100 100 100 100 100 100 100 100 100

136 369 210 343 463 220 253

160 494 174 171 379 102 191 244

120 322 146 171 264 154 172

109 182 126 114 177 127 125

100 100 100 100 100 100 100 100.00 100.00

195 262 507 294 55 253 222

156 173 478 237 281 244 194

125 140 380 189 89 172 155

100 105 224 131 97 125 127

100 100 100 100 100 100 100

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COMMENTS:

There is considerable increase over the years in cash, balance / lending to other banks / financial institutions, from 143 to 210, from 110 to 140 Balances with other banks have been decreased from 72 to 42. Investment in fixed assets increased over the five years gradually which is a positive sign for future returns 115 to 212. Like increasing of assets bank also getting advantage in short term financing in forms of bills payable, credits terms and borrowing from other banks which are increased from 109 to 136 from 2005 to 2008 ( bills payable). This is a good sign as long as bank payoff in time.

Net Assets has been increased almost double from 125 to 253. Share Holder Equity increased from 131 to 294 from 2005 to 2008 respectively due to issuance of bonus shares and not issuing dividends.

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56

HORIZENTAL ANALYSIS OF (Profit & Loss Accounts) UBL

Particulars Mark-up / return / interest expensed Net Mark-up / interest Income Provision against Loans and advances- Net (Excluding impact on account of change in prudential regulations) (Reversal) / additional Provisioning arising on account of change in Prudential Regulations Provision against Loans and advances- Total Provision for / (reversal of ) diminution in value of investment-net Bad Debts written off directly Net Mark-up / return / interest income after provisions Non Mark-up Interest Income Fee, Commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of securities Unrealized loss on revaluation of investments classified as held for trading Other Income Total Non Mark-up / return / Interest Income

2008 1,392 375

2007 977 321

200 700 278

2005 349 188

2004 100 100

1,350

388

453

293

100

1,036 (2,211) 35,603 2,389 280

1,262 6 24,346 1,895 247

453 (74) 7,012 684 259

293 (112) 993 421 177

100 100 100 100 100

381 53 272

312 50 124

234 76 99

154 18 101

100 100 100

148 236 263

165 204 231

132 158 220

123 114 153

100 100 100

Total Income
Non Mark-up / Interest Expenses Administrative Expenses Other Provisions / write offs net Workers welfare fund Other Charges Total Non Mark-up / interest Expenses Profit Before Taxation Taxation- Current Prior Year Deferred Total Profit After Taxation Un appropriated Profit brought Forward Transfer from surplus on revaluation of fixed assets-net of tax Profit Available for appropriation

232 (1,308) 2,471 248 284 2,151 153 (159) 466 225 1,131 308 269 307

200 (686) 167 205 266 1,793 155 (148) 387 227 898 410 67 403

163 (657) 248 168 292 1,206 16 220 406 256 531 331 100 326

117 (974) 68 123 194 176 28 477 297 161 237 181 100 180

100 100

100

100 100 100 100 100 100 100

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COMMENTS: Net Markup income the core part of banking revenue has been increasing very fast and it is noted 188 to 375. Net Non Markup Income also increased from 114 to 236 as total income increased from 153 to 263 which also show the increase in profit. Profit available appropriation increased for year from 2004 to 2008 from 180 to 307. When look into the taxation, the ratio increases and reached at 466 from 296 since 2004 to 2008. Profit after taxation also increased from 161 to 225 which shows the good and sufficient for further progress. An increase in administrative expanses from 117 to 232 shows that bank is growing and expanding its network and also giving more facilities to its employees. Provision against advances are too big because of large advances from 293 to 1350 from 2004 to 2008.

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4.4 VERTICAL ANALYSIS A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities and equities) in a balance sheet is represented as a proportion of the total account. The main advantages of analyzing a balance sheet in this manner are that the balance sheets of businesses of all sizes can easily be compared. It also makes it easy to see relative annual changes in one business. For example, suppose XYZ Corp. has three assets: cash and cash equivalents (worth $3 million), inventory (worth $8 million) and property (worth $9 million). If vertical analysis is used, the asset column will look like Cash and cash equivalents: 15% Inventory: 40% Property: 45% This method of analysis contrasts with horizontal analysis, which uses one year's worth of entries as a baseline while every other year represents differences in terms of changes to that baseline. VERTICAL ANALYSIS (BALANCE SHEET UBL)

VERTICAL ANALYSIS B.SHEET ASSETS Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Performing Non-performing Operating Fixed assets Taxation recoverable Deferred tax asset - net Other Assets Total Assets LIABILITIES Bills payable Borrowings from financial institutions Deposits and other accounts Subordinated loans

2008 8 1 4 19 60 2 61 3 3 100

2007 11 1 5 22 55 1 56 3 2 100

2006 12 3 7 16 57 1 58 1 2 100

2005 10 4 5 18 58 1 59 1 1 2 100

2004 9 6 6 20 52 2 1 2 2 100

1 7 80 2

1 11 76 1

1 9 79 1

1 6 83 1

1 4 84 1

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Liabilities against assets subject to finance lease Other liabilities Deferred liabilities Total Liabilities NET ASSETS REPRESENTED BY: Share capital Reserves Un appropriated profit Total Surplus on revaluation of assets Total Liabilities and Equity

3 93 7 2 3 3 7 7 100

3 92 8 2 2 3 6 2 8 100

2 93 7 2 2 3 6 1 7 100

2 94 6 1 2 2 5 1 6 100

1 1 94.00 6.00 2 2 1 5 1 6 100

Comments: Cash and deposit with other banks has been decreasing over the year 9 to 8 while it was increasing from 2004 to 2007 but in 2008 it is just 8% compare to total assets. Major part of assets includes the loans/ advances which means that UBL is doing best to utilize its resources for making further money as loans are the core part of the banks income as bank deposits to the others income at low interest rate and issue it as a loan to investors and businessmen and common people to higher interest. In UBL its gradually increasing as 59 to 61% of the total assets from 2004 to 2008. With compare to the last year bank deposits has been increased 4 as 76 to 80 which shows the customers satisfaction and trust upon UBL. Operating fixed assets has been increase from 1 to 3 over the year and it shows that the bank is expanding its network. Subordinate loans in 2008 has been 2 % of the total liabilities where as these were only 1 % from last four years. VERTICAL ANALYSIS (PROFIT & LOSS UBL) 60

Particulars Mark-up / return / interest earned Mark-up / return / interest expensed Net Mark-up / interest Income Provision against Loans and advances- Net (Excluding impact on account of change in prudential regulations) (Reversal) / additional Provisioning arisingon accoount of change in Prudential Regulations Provision against Loans and advances- Total

2008 172 (79) 92

2007 154 (63) 90

2006 129 (48) 82

2005 114 (34) 80

2004 80 (15) 65

19 (4) 15 -

6 14 21 4 (24) 66

8 8 1 (9) 73

7 7 1 (8) 72

4 4 (1) (3) 62

Provision for / (reversal of ) diminution in value of investment-net Bad Debts written off directly

7 4 (27)

Net Mark-up / return / interest income after provisions Non Mark-up Interest Income Fee,Commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of securities Unrealized loss on revaluation of investments classified as held for trading Other Income Total Non Mark-up / return / Interest Income TOTAL INCOME Non Mark-up / Interest Expenses Admisistrative Expenses Other Provisions / write offs -net Workers welfare fund Other Charges Total Non Mark-up / interest Expenses Profit Before Taxation Taxatioon- Current Prior Year Deferred

66

21 2 6 1 5 34 100

19 2 3 3 6 34 100

15 3 3 1 5 27 100

14 1 4 2 7 28 100

14 10 6 8 38 100

51 1 1 1 54 46 20 1 (3) 18

50 1 51 49 19 2 (3) 17 31

43 1 44 56 13 5 19 37

44 2 46 54 3 17 20 34

58 58 42 2 2 5 10 32

Profit After Taxation

27

Comments: 61

Mark up / interest income increased from 80 to 172 of the total income which is good sign for UBL as it is the core part of the banking income and an increase in this account shows that, it is remarkable and shows its progress.

With the increase in Mark up/interest income the overall Markup interest expense has also increased due to heavy bank deposits Over all profit is also increased over the years.

4.5 FINANCIAL RATIOS ANALYSIS

Ratio analysis is basically a technique of establishing meaningful relationship between significant variables of statements and interpreting the relationship to form judgment regarding the financial affair of the unit. Data of ABL obtained from financial statements of previous five years which are used and analyzed in various calculations.

Current Ratio: Formula: Current Assets / Current Liabilities

2004 0.15 2005 1.13 2006 1.14 2007 1.15 2008 1.19

YEAR Current Ratio

Liquidity ratio measures the ability of the unit to meet its short term obligation and reveal the short term financial strength or weakness. .ABL current ratio is showing increasing trend from the year 2004 and onwards indicating financial stability of the bank to meet its urgent obligation. Rising trend depicts that ABL current assets are increasing as compared with its current liabilities. The ratio for year 2008 is at par with that of for the year 2007, the highest one, which reflects that bank is in a better position to meet its current liabilities. Higher the current ratio, greater will be the ability of the firm to pay its obligations.

Operating Profit Ratio: 62

Formula:
YEAR

Operating profit / sales

2004 0.1 2005 0.52 2006 0.55 2007 0.48 2008 0.61

Operating profit ratio is calculated by dividing the operating profit by sales. This ratio determines the relationship between operating profit with sales. Operating profit of bank increased in 2005 as compared to the 2004. Bank earned revenue and jumped to high percentage against 2004. Operating profit are showing continuously increasing trend from 2004 to 2006. We observe that the revenue is very sharply rise in which net in which net interest & discount, fee, commission& brokerage, gain on sale of securities, dividend income and other incomes.

Net Profit Ratio: Formula:

YEAR

Net profit after tax / net sales

2004 0.39 2005 0.63 2006 0.79 2007 0.69 2008 0.87

Net profit ratio expresses the relationship between net profit after taxes and sales. This ratio is measure the overall profitability. The higher the net profit of bank, it shows higher growth. Bank receives deposits from customers and lends it on high interest rate. So it indicates more interest earned. Bank earned more by mark-up and non mark-up income. During 2007 net profit ratio decreased because more tax paid. The ratio is increasing from 2004 to 2008, which show high prospers of bank. Higher the net profit ratio, higher is the profitability of bank.

Administration Expense Ratio:

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Formula:
YEAR

Administration expenses / Net sales

2004 0.88 2005 0.46 2006 0.43 2007 0.48 2008 0.54

Administration expense ratio is calculated to ascertain the relationship that exists between this expense and volume of sales. In 2004 administrative expense is more to sale. Interest

earned in this year was totally low as compared to the other years. During 2005 to 2007 administrative expense decreased as compared to 2004 because in these year deposits were more and allocated these funds into profitable investments and advances. During 2008 expenses were bit more than 2007. These expenses rose against high operating income, more branches were opened and new products introduced for customers. Debt Equity Ratio: Formula:
YEAR

Total liabilities / Total shareholder equity

2004 14.1 2005 13.7 2006 13.2 2007 9.1 2008 4.4

The relationship between borrowed funds and internal owners fund is measured by Debt Equity ratio. The debt to equity during the year 2004 remained highest. But ratio is showing declining trend after the year 2004, which is a positive sign for the bank, showing more stability.

Solvency Ratio: Formula: Total assets / Total liabilities 64

YEAR

2004 0.93

2005 0.93

2006 0.92

2007 0.94

2008 0.94

Solvency is the term which is used to describe the financial position of any business which is capable to meet outside obligation in full out of its own assets. So this ratio establishes relationship between total liabilities and total assets. Bank has ability to meet its obligation through the increasing trend show a positive sign for bank. Return on Assets Ratio: Formula:
YEAR

Net income / average total assets

2004 1.23 2005 1.31 2006 1.98 2007 1.42 2008 2.30

This ratio is used to determine the overall effectiveness in generating profits with available assets. Return on assets or earning power on total assets of Bank is showing increasing trend which reflects that there is increase in turn over on assets, and increase in the net profit margin. Interest Coverage Ratio: Formula:
YEAR

EBIT / Interest
2004 0.11 2005 1.1 2006 1.2 2007 0.92 2008 2.68

The interest coverage ratio is measured by EBIT and interest expense. This ratio show increasing trend that bank has the ability to cover the interest expense. In 2004 it was low but with the passage of time interest coverage ratio increased. Bank offer a number of services to its customers and opened a number of branches to facilitate the customers that increased profitability of business. As this ratio is increasing rapidly in each year, the bank is in a better position to meet its interest obligation without any difficulty and is able to take new debt. Dividend Payout Ratio: Formula: Cash dividend / Net income 65

YEAR

2004 0.08

2005 0.01

2006 0.04

2007 0.03

2008 0.34

The dividend payout ratio is measured by cash dividend and net income. As we see that ratio decreased during 2005 than 2004. Because dividend income was not rise as compare to total income. During 2008 it increased than previous years. In this year more advances were given to customers and more interest earned. Total income of bank increased, which show that bank in a good position to pay the dividend. Equity Ratio: Formula:
YEAR

Shareholder equity / Total assets

2004 0.06 2005 0.07 2006 0.08 2007 0.08 2008 0.1

Equity ratio is the relationship between shareholder equity and total assets. This ratio increased during 2005, 2006, 2007 & 2008. This shows increasing trend that bank equity increased with assets. With the passage of time bank assets increased and purchased new assets to increase the efficiency of work. High profit that bank earned through interest income and by their services that indicate rise in the equity ratio. Return on Equity: Formula: Net income / average shareholder equity
YEAR 2004 0.01 2005 0.23 2006 0.24 2007 0.20 2008 0.22

It is a measure of over all firm performance. This ratio is gradually increasing in each year which reflects the excellent performance and profitability of the bank. This increasing trend also shows good prospects for bank management, investors, and short & long term creditors. A high return on equity ratio reflects strong investment opportunities and effective management. ABL return on equity increasing trend reflects its acceptance of strong investment opportunities and effective expense management Earning Per Share: Formula: Net income / no of common share outstanding 66

YEAR

2004 0.81

2005 6.88

2006 8.16

2007 7.57

2008 10.27

Earning per share is obtained by dividing the profit after taxation by number of ordinary shares. As indicated by yearly trend that EPS is increasing every year which shows good prospects for bank management and current & future investors. Loan to Deposits Ratio: Formula:
YEAR

Loan / Deposits
2004 0.47 2005 0.68 2006 0.7 2007 0.64 2008 0.78

Analysis of advances and deposits of ABL, It reveals that this ratio is a mix distribution. During the year 2004, it was low but at the end of year 2008 it was highest among the previous five years performance. During the year 2008, advances of ABL increased substantially which is showing banks financial stability. Bank launched a new type of loan to attract the customers.

Strengths & Future Prospective UBL is growing very fast and with its innovative and new products it is capturing the big share of the market. With the following product and services we may say that Growing On line banking network is now essential and UBL is also day by day increasing its online branch network so that it provide real online services to its customers. With on line banking UBL is now opening its ATM out lets gradually, on public places like Bus stops, Petrol pumps, and places separate to their branches so that not only its clients but also other 1 link user may easily withdraw their cash 24 hours 7 days without discontinuing.UBL, with an integrated network globally, with 15 overseas locations, gives you direct access to a comprehensive range of better banking facilities to help you monitor your business internationally. UBL is very planning to spread its business globally by opening more branches across the world.

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UBL is now not only providing cash withdrawals by its ATM but also now one can transfer his money from one to another accounts and also transfer his money to another bank accounts with his Wallet card. Weaknesses & Threats No Evening Banking operations Less ATM branches as compared to the leader banks in Pakistan Less Marketing activities as compare to other banks Rigid and orthodox techniques are still prevailing in the bank

Very high service charges as compare to other banks on online services Not a very good online services as compare to other banks Recommendations As my experience in two to three branches which I have visited, I feel some of the followings Although it is said that UBL has been computerized, but I believe this is not entirely so. A lot of work is done manually. Manual work may be disposed of and automation to take its place in this fast growing and improving world. To make the bank one which can compete with any internationally acknowledged bank, there is a need that the work be automated. In addition, new innovations and modernization of the working methods are inevitable if the bank is to be made of state of the art quality. Such modernization and advancement need expansion into areas beyond conventional methods and practices. New products and services need to be introduced. Continuous introduction of novel ideas would serve as a competitive advantage and customers are likely to invest more in the bank. In the fast speeding world of today, such initiation of novel and unconventional ideas is a basis of not only competition, but also survival in the long term. Aggression and motivation to lead are vital for UBL to make its place in the banking sector.

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 Branch should maintain fixed assets register with complete detail, and properly tagged. Customers accounts are the main source of funds to the bank. Branch Officials should review the Dormant (Inactive) Accounts list and timely report to the Head Office. This is important for the management as to know why the customers with draws their money. May be other banks are offering the higher rates of interest. Insurance cover should be purchased for the amount kept in the safe of the branch.

Conclusion I am very happy to finish this task and complete this report finally I may conclude this as UBL is in need of improvement in the way customers are treated and served. It is of utmost importance that the clientele be treated as an asset which could improve the status as a bank. At UBL, it is said that YOU COME FIRST and I have seen this not to be the situation when it comes to practical implementation. UBL customers need to be dealt with more respect and I feel that they should be given importance. Just like any other organization, a bank's regard for its customers and the staff's behavior towards its regulars and patrons can not be ignored. Clients are often seen complaining when they are sent from a counter to the other and it is understandably annoying and irritating for them. There should be no distinguishing behavior of the staff towards customers on the basis of their appearance and the so called social status. As a family working for a common goal, there is a need for the staff at all levels to treat customers equally. UBL have modern as well as orthodox techniques and staff, so we may say that it is good combination but some time it frustrates the customers. 69

 Finally, it is concluded that UBL is in a better position than most of its competitive banks to deal with any adverse market trend. The main objective of the bank is to further enhance the corporate image of the bank The bank is developing necessary strategies and new products to cope with the current challenging situation and plans to further expand its credit portfolio with due care and prudence, ensuring the quality of its assets portfolio.

References Broachers of the bank Credit manual Operational Manual 70

Five Years Annual reports form 2004 to 2008. www.ubl.com.pk www.sbp.org.pk www.en.wikipedia.org Moreover, most of the information was provided by UBL Bank officers.

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