UBL Financial results for 9 months of 2020

UBL Records Profits of Rs 26.4 Billion for 9M’20.

UBL posted Profit Before Tax of Rs. 26.4 billion for the nine months ended September 30, 2020.
The Profit after tax stood at Rs. 16 billion with 12% growth over last year. The Bank maintained its
momentum across core businesses as gross revenues were recorded at Rs. 71 billion, up 14%.
Earnings Per Share (EPS) stood at Rs. 13.13 for the nine months ended Sep 30th 2020. The Bank’s
capital ratios remained strong with the overall Capital Adequacy Ratio (CAR) at 22.8% as at
September 30, 2020, well above the minimum regulatory requirement of 12.5%.

Domestic Bank leads with strong earnings
The Bank has a large and growing customer base of over 10 million, led by branch banking which
remains the cornerstone of the franchise. The Domestic business recorded Profits Before Tax of
over Rs. 36 billion in the current period, up 36% from last year. The depth and coverage of the UBL
branch network across Pakistan continues to pay strong returns as the deposit base stood at Rs.
1.35 trillion, growing by 11% over Dec’19. Financial inclusion across all segments of society is one
of the core pillars of UBL’s strategy as it acquired close to 400,000 new current accounts.
The current quarter has already witnessed a rebound to pre-Covid levels across core segments with
the resumption of business activity across the country. All core fee lines – ATMs commissions,
commercial trade, bancassurance, consumer, etc. are up by an aggregate of 22% vs the last
quarter. This is a very positive sign as transaction flows are now heading back to pre-Covid levels.
With 1,361 branches and 1,455 ATMs nationwide, UBL is one of the largest private sector banks
operating in Pakistan. The Bank maintains a strong presence in the SME space, as a reliable partner
with its operations extending across all the major trade hubs of the country. The Bank shall
continue to play a leading role in the economic recovery of the country as industrial sectors gear
up for future growth and expansion.

UBL leads with largest Home Remittance market share
UBL maintained its leadership position in the home remittances space with a market share of
approx. 24%. Over USD 6 billion of remittances have been channeled to Pakistan in the last one
year through UBL. The Bank remains the most trusted partner for overseas Pakistanis with its
presence in the GCC for over 50 years. UBL believes that expanding the suite of services for Non
Resident Pakistanis (NRPs) is a key strategic initiative for the country and the Bank shall remain at
the forefront of deposit mobilization under the ‘Roshan Digital’ account. UBL is committed to make
a valuable contribution to the Naya Pakistan Housing initiative. The Bank believes this will provide
affordable housing for all Pakistanis and also create a mortgage market which in the long term will
re-lay the foundations of the economy.

UBL’s aspiration is a “Digitally enabled Pakistan”
UBL was declared Pakistan’s Best Digital Bank for 2020 by Asiamoney, an associate of Euromoney.
The award recognizes UBL’s contribution in extending financial services through digital channels
and its leading role as one of the most progressive and innovative banks in the country. The ‘UBL
Digital’ app has been gaining a very positive response as the digital customer base stands at 1.2
million as at September 30, 2020, with around 20% of the Bank’s branch customers now conducting
transactions through the platform. Its branchless banking proposition, UBL Omni, maintains a large
network allowing customers to make payments in a secured manner at over 37k ‘Omni dukaans’
throughout major cities as well as small towns and also in remote regions of the country.

“Our most valuable asset is the UBL Team”
As the Bank announced its results for the nine months ended Sep 30, 2020, Mr. Shazad Dada, UBL’s
President & CEO stated, “Customers remain at the heart of our corporate philosophy. We will
continue to invest in and develop innovative and technologically superior solutions. We aim to
create operational efficiencies within our businesses with a clear approach to deliver ‘Simpler,
Better, Faster’ across all channels. We believe that a well-motivated workforce is crucial to drive
excellence and infuse the ‘where you come first’ spirit. A number of strategic initiatives are
underway which will have a strong impact on core and emerging business segments, in the medium
to long term. Strengthening compliance and control standards in line with international best
practices is an ongoing journey where we remain fully committed as an organization. While we
reinvest and grow the domestic business, repositioning international remains a strategic priority
for the Bank”.

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