United bank ltd. by Qamar Farooq HCC lahore


Published on

A complete presentation on United Bank ltd. pakistan
HCC Punjab university lahore.
subject: Banking Law and practices in Pakistan

Published in: Business, Economy & Finance
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

United bank ltd. by Qamar Farooq HCC lahore

  1. 1.  3rdrd largest Commercial Bank of Pakistan UBL assets of over 620 billion It has 1257 branches in Pakistan 17 branches overseas It has 400 ATM machines
  2. 2. “To be a world classbank dedicated toexcellence, and tosurpass the highestexpectations of ourcustomers and all otherstakeholders.”
  3. 3. • Optimize people, processesand technology to deliverthe best possible financialsolutions to the customers;• Become the most soughtafter investment.
  4. 4. • Agha Hassan Abidi founded the bank in 1959• Registered on July 24, 1959. started the operations onNovember 7th , 1959• continued its operations as private banking companyuntil 31st December 1973• The bank was working as nationalized bank when thegovernment decided to privatize some banks in 1992.
  5. 5.  Board of Directors Presidents Vice Presidents Regional Chief District Managers Managers Operational Managers Officers Clerical Staff
  6. 6.  Agha Hassan Abidi: He started his career with Habib Bank beforeindependence. He founded the United Bank ltd. In 1959 He founded the BCCI He founded the Infaq foundation (charitableorganization) in UK , India , Bangladesh , Zimbabwe,Pakistan.
  7. 7. Sheikh Nahayan Mubarak Al NahayanSheikh Nahayan Mubarak Al NahayanChairman:Chairman:Deputy Chairman:Deputy Chairman:President & CEO:President & CEO:Sir Mohammed Anwar PervezSir Mohammed Anwar PervezMr. Atif R. BokhariMr. Atif R. Bokhari He heads the United Arab Emirates, ministry of Culture,Youth & Social development prior to march 17, 2013. He headed the ministry of education science & research. He is the Chairman of WARID telecom. Hilal-e- Pakistan 2005 He started his career in 1985 with Bank of America. Hewas appointed head of corporate & investmentbanking in Habib Bank in 2000.He join the UBL in2004.
  8. 8.  In 2002 govt. of Pakistan sold it to Abu Dhabi group and BestWay group having 25.50% of its shares each In 2002 it merged its operations in UK with thosebelonging to National Bank of Pakistan to formUnited National Bank Limited
  9. 9. • Negative Equity• Heavy and continuing operating losses due to:• Overstaffing, 21,500 employees• Over branching, 1,701 branches• NPLs (Non performing loans), 60% of total loans• A lack of systems and controls across the board.• Demoralized staff, declining deposits and marketshare.
  10. 10.  changed 33 key positions downsized the staff from 21,500 to 8,525 reduced the number of branches from1,701 to 1,257 arrested the NPL’s and blocked 80,000depositsMarket share quickly increase from 7% to 10%
  11. 11. His Highness Shaikh Nahayan Mabarak Al Nahayan ChairmanSir Mohammed Anwar Pervez, OBE, HPK Deputy ChairmanMr. Atif R. Bokhari President & CEOMr. Omar Ziad Jaafar Al Askari DirectorMr. Zameer Mohammed Choudrey DirectorMr. Seerat Asghar DirectorMr. Muhammad Sami Saeed DirectorMr. Amin Uddin DirectorMr. Arshad Ahmad Mir DirectorMr. Aqeel Ahmed Nasir SEVP/CompanySecretary & ChiefLegal CounselMr. Raymond Kotwal Chief FinancialOfficer
  12. 12. • UBL Accounts• UBL Ameen• UBL Omni• UBL Humrah• Agriculture• Cards & Loans
  13. 13. • UBL Business partner _Current Account• Rupees Transactional Account (RTA)• UBL Uniflex• UBL Unisaver• Certificate of Deposits• Foreign Currency Saving• Foreign Currency Term Deposit Receipts• UBL Basic Banking Account• UBL First minor Saving Account• UBL Business Partner Plus
  14. 14.  UBL Ameen has its presence in all major cities ofPakistan including Karachi, Lahore, Faisalabad, Sialkotand Peshawar through 5 stand alone branches UBL Ameen has also more than 20 Islamic bankingwindows in the existing UBL branches
  15. 15.  Ameen Current AccountBased on QARZFunds received, to be repaid on the demand/notice of the depositor Ameen Investment AccountsBased on MudarabahA partnership where one partner provides capital (called Rabb-ul-maal) and anothercontributes efforts (called Mudarib) Ameen Saving AccountInvestment accounts that have freedom of withdrawal and deposit in whichprofit can be received upon periodically Ameen Certificate of Islamic InvestmentTerm investment in which higher amount of profit can be received uponmaturity /periodically
  16. 16.  First cheque book free No Minimum balance Withdrawal on demand at anytime PKR 100 Million and above 24 hours notice (working days) PKR 200 Million and above 48 hours notice (working days) Collection and clearance of cheques No hidden charges
  17. 17. • UBL Omni now brings a host of bankingservices to your nearest "Dukaan".• UBL Omni Dukaan’s are located in more than580 cities and towns across Pakistan.• This is a major milestone in the evolution ofbanking.
  18. 18. 1. Account Opening2. Cash Deposit3. Cash Withdrawal4. Utility Bill Payments
  19. 19. • UBL Hamrah has been designed for the convenience andsecurity .• It is the Traveller cheque for the safest and ideal way ofcarrying cash when travelling anywhere in the Pakistan• Denomination of Rs. 10,000 and Rs. 5,000.• It is accepted more than 2000 places such as hotels, shops,jewllers, etc• Salient Features:• Absolutely Free- No Bank commission , No Excise Duty,• Available to all: Holding an account with UBL not mandatoryfor availing this facility• Transferable and Encashable:
  20. 20. •Farm Loans• Production Loan Financing is available for Major and Minor crops across Pakistan.• (Revolving Credit Scheme)– Minimum Amount PKR 30,000• (Demand Finance Production)– Minimum Amount PKR 30,000• Land Development, Equipments and Machinery Financing forLand Improvement, Water course improvement,• Tube wells, Lift pumps, Deep turbine pumps, Cotton pickers, Godown, Cold Storage,Harvester, Thresher, etc– Minimum Amount PKR 30,000• Tractor & Vehicle Finance To purchase Tractors, Delivery Vans, MiniTrucks, Motor Cycle• and other vehicles used for marketing Agri Products– Minimum Amount PKR 100,000
  21. 21. • Livestock Financing• Dairy Farming, Meat Farming, Fattening of Animals, Rearing ofAnimals, Construction of Sheds,• Milk storage tanks, acquire and establish modern and efficientlivestock facilities. Loan Minimum Amount PKR 50,000• Poultry Financing• Poultry Farm structure and equipments, Hatchery farm structure andequipments, Feed Mills, Purchase of Chicks,• Feed, Medicines, Storage tanks, Cold storage, Construction of shed,etc.• Minimum Amount PKR 50,000• Fisheries Financing• Fish seed, Fish feed, Construction of pond, Curing and Dying byfishermen, etc.
  22. 22. • UBL Credit Card - Chip Credit Card• UBL Wiz – Prepaid Visa Debit Card• UBL Wallet – Visa ATM Debit Card• UBL Address – Home Loan Facility• UBL Business line – Business Financing Loan• UBL Cash Line – Running Finance Facility• UBL Drive – Auto Loan• UBL Agricultural• UBL Small Business – SME Loan
  23. 23. Sept 2011 Sept 2010 VAR %Net Interest Income 33.17 28.52 +16%Non Interest Income 13.01 11.07 +18%Operating Revenue 46.18 39.59 +17%Operating Expense (17.80) (16.68) -7%Pre-Provision Oper. Profit 28.38 22.91 +24%Provision Exp./Other writeoffs (13.52) (8.22) -64%WWF / SBP Penalty (0.47) (0.63) +26%Profit Before Tax 16.80 12.90 30.23%Profit After Tax 11.0 8.10 36%
  24. 24. Sept 2011 Sept 2010 Ver. %Profit Before Tax 16.80 Billion 12.90 Billion 30.23%Profit After Tax 11.0 Billion 8.10 Billion 36%
  25. 25. Increased: 4.01%
  26. 26. Increased: 3.50%
  27. 27. Dec, 201068,415,056Sep, 201174,362,260Increased: 8.69%
  28. 28. Sep 2011 Sep 2010EPS (Rs/share-annual.) 8.95 6.58Price* - (Rs /share) 52.90 48.70No of shares 1,113 Millions 1,113 Millions
  29. 29. Long Term Rating AA+Short Term Rating A-1+TFC Rating AA
  30. 30. StrengthsWeaknessesOpportunitiesThreats
  31. 31.  Ownership of Strong Group Huge Deposits Advances on Sound Basis Infrastructure Brands Fast Service Good Credit Rating
  32. 32. CentralizationIneffective Personnel PoliciesLow Motivation LevelReactive ApproachRecoveryLand Marks Across Pakistan
  33. 33. Mobile BankingInternational ExpansionTrade ShowsLiberalizationSocio CultureIslamic Banking
  34. 34. Governmental PoliciesAggressive CompetitionInternational Financial SlumpsCustomer BehaviorMovement of trained staff to other banksStrong competitorsStrict SBP policiesIncreasing ratio of fraud
  35. 35. PESTLE analysis answers 6 key questions:Political - What are the political factors that are likely to affect the business?Economic - What are the economic factors that will affect the business?Sociological - What cultural aspects likely to affect the business?Technological - What technological changes that may affect the business?Legal - What current and impending legislation that will affect the business?Environmental- What are the environmental considerations that may affectthe business?
  36. 36.  Poor government policies. Political Instability Most of the banks have to finance the loanunder Political pressure Non Payment of loan by the Political Leaders.
  37. 37.  Consumer income Saving rates Consumption patrons Rates of interest Budget deficit Exchange rates Cost of living Inflation
  38. 38. Declining work ethics. Religious beliefs.Non availability of the knowledge of the product ofthe Bank.With Holding Tax keep away the people fromBanking transaction.
  39. 39. Investment for improving Technology & Staff skills in ITUBL purchase new System for interpretation of quantitative andqualitative data to make financial decision.UBL is also upgrading its existing in-house developed branchbanking software with Core Banking System (CBS).Halted Growth of Communication Infrastructure
  40. 40. LEGAL.- Current legislation- Future legislation- International legislation- Regulatory bodies and processes- Employment law- Consumer protection- Health and safety regulations- Money laundering regulations- Tax regulations- Competitive regulations- Industry-specific regulations
  41. 41. ENVIRONMENTAL- Environmental regulations- Ecological regulations- Sustainability- Impact of adverse weather
  42. 42. UBL should make a good support to Islamic Banking. UBL should open its branches especially in the country side.UBL should update its website daily.Improve internal control system
  43. 43. To Be a World-Class Bank where you come First .It is the “You First” culture we are promoting at UBL totruly become a world-class bank which takes care of itscustomers and provides them with world-class services &products. At UBL, we value our people as our greatest assetand it is this philosophy that forms the basis of our focused,committed and long term investment in the people that formthis great institution. Our bank will be the best bank in futurewith your cooperation.