United Bank LimitedCONSOLIDATED FINANCIAL STATEMENTS

AS AT DECEMBER 31, 2015

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2015

Note 2015 2014

ASSETS

Cash and balances with treasury banks 6 113,762,323 75,660,306 Balances with other banks 7 27,713,772 21,948,274 Lendings to financial institutions 8 31,304,861 23,435,222 Investments 9 747,598,627 519,602,007

AdvancesPerforming 10 477,649,098 455,078,880 Non-performing - net of provision 10 9,629,045 12,286,412

487,278,143 467,365,292

Operating fixed assets 11 36,677,638 33,335,646 Deferred tax asset - net - - Other assets 12 41,851,449 41,106,366

1,486,186,813 1,182,453,113

LIABILITIES

Bills payable 14 13,395,744 9,559,255 Borrowings 15 164,232,087 53,248,526 Deposits and other accounts 16 1,119,953,064 951,902,296 Subordinated loans - - Liabilities against assets subject to finance lease 17 4,873 429 Deferred tax liability - net 18 4,515,165 2,139,586 Other liabilities 19 28,486,831 28,098,410

1,330,587,764 1,044,948,502

NET ASSETS 155,599,049 137,504,611

REPRESENTED BY:

Share capital 20 12,241,798 12,241,798 Reserves 41,624,817 37,286,088 Unappropriated profit 59,955,027 52,507,655 Total equity attributable to the equity holders of the Bank 113,821,642 102,035,541

Non-controlling interest 5,223,744 4,553,250 119,045,386 106,588,791

Surplus on revaluation of assets - net of deferred tax 21 36,553,663 30,915,820 155,599,049 137,504,611

CONTINGENCIES AND COMMITMENTS 22

The annexed notes from 1 to 49 and annexures form an integral part of these consolidated financial statements.

Wajahat Husain Amin Uddin Zameer Mohammed Choudrey Sir Mohammed Anwar Pervez, OBE, HPkPresident & Director Director ChairmanChief Executive Officer

-------------- (Rupees in 000) --------------

CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED DECEMBER 31, 2015

Note 2015 2014

Mark-up / return / interest earned 24 97,574,003 85,760,646 Mark-up / return / interest expensed 25 39,715,160 38,846,868 Net mark-up / return / interest income 57,858,843 46,913,778

Provision against loans and advances - net 10.3 2,942,024 533,523 Provision against lendings to financial institutions - net 8.6 - 165,744 Provision for diminution in value of investments - net 9.3 708,319 459,812 Bad debts written off directly 10.4 173,085 177,222

3,823,428 1,336,301 Net mark-up / return / interest income after provisions 54,035,415 45,577,477

Non mark-up / return / interest incomeFee, commission and brokerage income 14,239,098 13,292,093 Dividend income 2,350,112 1,819,136 Income from dealing in foreign currencies 2,588,176 3,091,592 Gain on sale of securities - net 26 3,195,016 2,063,436 Unrealized gain / (loss) on revaluation of investments classified as held for trading 9.4 16,245 (28,723) Other income 27 1,298,577 1,118,583 Total non mark-up / return / interest income 23,687,224 21,356,117

77,722,639 66,933,594

Non mark-up / return / interest expensesAdministrative expenses 28 34,004,803 31,752,088 Other provisions - net 29 78,143 276,446 Workers' Welfare Fund 30 851,968 673,005 Other charges 31 202,103 10,427 Total non mark-up / return / interest expenses 35,137,017 32,711,966 Share of profit of associates 861,704 1,394,686 Profit before taxation 43,447,326 35,616,314

Taxation - Current 32 15,235,612 10,859,677 Taxation - Prior 32 1,801,172 361,962 Taxation - Deferred 32 (599,084) 369,872

16,437,700 11,591,511

Profit after taxation 27,009,626 24,024,803

Attributable to:Equity shareholders of the Bank 26,154,344 23,647,704 Non-controlling interest 855,282 377,099

27,009,626 24,024,803

Earnings per share - basic and diluted 33 21.36 19.32

The annexed notes from 1 to 49 and annexures form an integral part of these consolidated financial statements.

Wajahat Husain Amin Uddin Zameer Mohammed Choudrey Sir Mohammed Anwar Pervez, OBE, HPkPresident and Director Director ChairmanChief Executive Officer

------------ (Rupees) ------------

------ (Rupees in 000) ------

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2015

2015 2014

Profit after tax for the year attributable to:Equity shareholders of the Bank 26,154,344 23,647,704 Non-controlling interest 855,282 377,099

27,009,626 24,024,803

Other comprehensive income:

Items that are not to be reclassified to profit or loss in subsequent periods

Remeasurement loss of defined benefit obligationsEquity shareholders of the Bank (413,805) (212,770) Non-controlling interest 18,897 7,738 Related deferred tax reversal 153,392 75,036

(241,516) (129,996)

Items that may be reclassified to profit or loss in subsequent periods

Exchange differences on translation of net investment in foreign branches and subsidiaries

Equity shareholders of the Bank 1,758,882 (2,964,855) Non-controlling interest (96,573) (443,907)

1,662,309 (3,408,762)

Amortization of cash flow hedges - 4,963 Related deferred tax charge on cash flow hedges - (1,738)

- 3,225

Other comprehensive income transferred to equity 28,430,419 20,489,270

Items that may be reclassified to profit or loss in subsequent periods

Surplus arising on revaluation of available for sale securities 7,526,499 14,043,463 Related deferred tax charge (2,903,061) (4,883,986)

4,623,438 9,159,477

Total comprehensive income during the year - net of tax 33,053,857 29,648,747

The annexed notes from 1 to 49 and annexures form an integral part of these consolidated financial statements.

Wajahat Husain Amin Uddin Zameer Mohammed Choudrey Sir Mohammed Anwar Pervez, OBE, HPkPresident and Director Director ChairmanChief Executive Officer

------- (Rupees in '000) -------

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2015

Note 2015 2014

CASH FLOW FROM OPERATING ACTIVITIESProfit before taxation 43,447,326 35,616,314 Less: Dividend income (2,350,112) (1,819,136) Less: Share of profit of associates (861,704) (1,394,686)

40,235,510 32,402,492 Adjustments: Depreciation 1,853,683 1,743,182 Amortization 462,848 499,164 Workers' Welfare Fund 851,968 673,005 Provision for retirement benefits 700,342 660,468 Charge for compensated absences 268,505 428,567 Provision against loans and advances - net 2,942,024 533,523 Provision against lendings to financial institutions - net - 165,744 Provision for diminution in value of investments - net 708,319 459,812 Reversal of provision in respect of investments disposed off during the year (41,569) (50,038) Provision against off balance sheet items 6,279 35,708 Gain on sale of operating fixed assets - net (19,772) (43,719) Bad debts written off directly 173,085 177,222 Amortization of cash flow hedges - 4,963 Unrealized (gain) / loss on revaluation of investments classified as held for trading (16,245) 28,723 Finance charges on leased assets - 86 (Reversal) / provision against other assets - net (9,249) 85,364

7,880,218 5,401,774 48,115,728 37,804,266

(Increase) / decrease in operating assets Lendings to financial institutions (7,869,639) 6,257,072 Held for trading securities (3,894,555) (470,460) Advances (23,027,960) (53,139,727) Other assets (excluding advance taxation) (1,534,528) (10,742,139)

(36,326,682) (58,095,254) Increase / (decrease) in operating liabilities Bills payable 3,836,489 (7,041,436) Borrowings 110,983,561 12,170,796 Deposits and other accounts 168,050,768 62,376,693 Other liabilities (excluding current taxation) (697,376) 3,982,814