HK000MSI_Roadshow

United Bank LimitedUnited Bank Limited

2

Investment HighlightsInvestment Highlights

Broad and Unique Broad and Unique Distribution NetworkDistribution Network

Strong Revenue Strong Revenue Diversification Diversification

DriversDrivers

Strong Asset Quality Strong Asset Quality PositionPosition

High Calibre and High Calibre and Experienced Experienced

Management TeamManagement Team

Attractive Sector Attractive Sector Fundamentals Fundamentals

Support Growth Support Growth

1 2

45

6

Leading Consumer Leading Consumer Finance FranchiseFinance Franchise

3

3

●

Robust GDP growth and increasing income levels

●

Strong regulatory framework, focus on asset quality

●

Low consumer loan penetration presents significant opportunities

●

Favorable demographics and consumption trend

Attractive Sector Fundamentals Support GrowthAttractive Sector Fundamentals Support Growth

Source: Company reports; SBP, Banking System Review(1) Represents 2004 –June 2007 CAGR(2) Represents June 2007 figures

1

Macroeconomic HighlightsMacroeconomic Highlights Industry GrowthIndustry Growth

Loan Growth (1)

15.0%

Bank Sector ROAE(2)

20.6%

2007 GDP 7.0%

Banks Sector ROAA(2)

2.0%

3,043

2004 Jun'07

Assets (PKR bn) Loans (PKR bn) Deposits (PKR bn)

CAGR: 18%CAGR: 15%

CAGR: 15%

1,630

2,484

2004 Jun'07

2,393

3,682

2004 Jun'07

4952

4

Broad and Unique Distribution Network Broad and Unique Distribution Network 2

●

Transform branches from deposit focus to sales and customer service oriented – 170 branches already restructured

●

Leverage branch networks as a distribution channel to increase cross selling opportunities

●

Synergize with core banking application

●

Implementation of new core banking system

●

Provide and negotiate real-time customer and product data to all branches

●

Robust, intelligent control and risk management

Business Process Reengineering

Prox

ima

Gen

esis

Republic Republic of Yemenof Yemen

BahrainBahrain

SwitzerlandSwitzerland

OmanOman

UAEUAE

UKUK

USUS

International Branches 17

LahoreLahore

IslamabadIslamabadPeshawarPeshawar

QuettaQuetta

SialkotSialkot

FaisalabadFaisalabad

HyderabadHyderabad

MultanMultan

KarachiKarachi

Sindh 220

Baluchistan 41

Punjab 593

NWFP 153 Azad Kashmir

71

ATMs 326

Domestic Branches 1,078

Most Internationally Focused Bank in PakistanDomestic and International ReachDomestic and International Reach Branch Network UpgradeBranch Network Upgrade

Source: Company reports, as of December 31, 2007

QatarQatar

5

21%

12%

9%10%

13%

Auto Credit Card Housing *Personal TotalConsumer

Leading Consumer Finance FranchiseLeading Consumer Finance Franchise

Consumer Loans Consumer Loans --Market Share (JunMarket Share (Jun’’07)07) Credit CardCredit CardProducts yield Products yield ––

(Dec(Dec’’07)07)

* Personal loan includes Cashline, Businessline & Money

3

First Among the Big 5 Domestic Banks to Launch Consumer Banking

13% Market Share within 3 Years of Launch (2004)

13%

25%

13%

17%16%

A uto C reditC ard

H o using *P erso nal T o talco nsumer

Rs 47bn Total Consumer portfolio

Key Highlights

●

Over 200,000 credit cards issued

●

Introduced first ever Smart Chip credit card

●

First ever chip picture card in Pakistan

6

Strong Revenue Diversification DriversStrong Revenue Diversification Drivers

Investment Banking●

Biggest investment bank in Pakistan●

First authorized derivative dealer in the country

UBL Fund Managers●

PKR33 bn of assets under management

●

5 different funds, including 2 Shariah- compliant fund

UBL Insurers●

Launched in Dec 2006●

Set-up as a non life insurance company

●

Synergies expected from UBL retail & corporate banking products

Non Interest Income (PKR mm)Non Interest Income (PKR mm) Expansion into NonExpansion into Non--Banking RevenueBanking Revenue

4

2,8883,909

4,7995,899

4,8195,372

7,262

9,931

2004 2005 2006 2007

Fee and Commission Income

2004 – 2007 CAGR: 27%

Implementing Universal Banking Model

Source: UBL Consolidated

77

Strong Revenue Diversification DriversStrong Revenue Diversification Drivers

●

Offers the full spectrum of services; most specialized domestic player with dedicated desks for DCM/Syndications, Equity & Corporate Advisory and Project Finance

●

Prominent project financier for the domestic power sector, with projects of over US$ 1.1b closed over the last 2 years

●

Awarded “The Largest Corporate Finance House”

by the CFA Association of Pakistan for 3 consecutive years (2003-2005)

●

Executed Pakistan’s largest domestic project finance facility, largest syndicated loan and largest leveraged buyout transaction to-date

●

Only domestic bank that is an Authorized Derivatives Dealer and has primary membership on the International Swaps and Derivatives Association

Largest Investment Bank Largest Investment Bank (FY2003(FY2003--FY2005)FY2005) Key HighlightsKey Highlights

58,611 53,30745,060

156,462

2004 2005 2006 2007

No. of Transactions 18 19 13 23

Transaction Volume (PKR mm)

#1

4

Recognized Expertise in Investment Banking#1

Source: Company reports

8UBL - Consolidated

Strong Revenue Diversification DriversStrong Revenue Diversification Drivers

30

39

6471

13% 13%

18% 17%

-

16

32

48

64

80

2004 2005 2006 2007

Rs

B

0%

4%

8%

12%

16%

20%

Deposits Contribution to Bank

2126

39

64

14%12%

15%

21%

-

14

28

42

56

70

2004 2005 2006 2007

Rs

B

0%

4%

9%

13%

18%

22%

Advances Contribution to Bank

DepositsDeposits

4

International Capabilities and Core Competency

1.2

1.9

2.5

3.324%

20%17%

24%

-

0.7

1.4

2.1

2.8

3.5

2004 2005 2006 20070%

5%

10%

15%

20%

25%

Profit (PBT) Contribution to Bank

AdvancesAdvances Profit (PBT)Profit (PBT)

2004 – 2007 CAGR: 33%

2004 – 2007 CAGR: 45%

2004 – 2007 CAGR: 40%

9

Asset Quality PositionAsset Quality Position

7.1%

12.5%

7.7%8.3%

11.6%

6.9%6.2%

6.9%

2004 2005 2006 2007

Low Gross NPL RatioLow Gross NPL Ratio Adequate CapitalizationAdequate CapitalizationHigh Coverage RatioHigh Coverage Ratio

Source: Company reports, SBPNote: 2007 industry average as of 1H07 (SBP Banking System Review)

70%

77% 78%75%

79%

85%83%

78%

2004 2005 2006 2007

12.1%

10.7%

12.2% 12.4%

7.9% 7.7%

8.9% 8.8%

2004 2005 2006 2007

CAR ratio Tier 1

5

Improving Asset Quality Dynamics, Better than Industry Average Position

Industry Average UBL Industry Average UBL

10

Deposit StructureDeposit Structure

Deposit MixDeposit Mix Fixed DepositsFixed Deposits (1)(1)

Source: Company reports (1) Includes domestic fixed deposits only

4744

28

6

0

80

72

26

13

59

2003 2004 2005 2006 2007

Consumer Loans Fixed Deposits

Current Deposits

Contribution 28%

Cost 0.0%

Other Deposits

Contribution 2%

Cost 0.4%

Savings Deposits

Contribution 38%

Cost 2.8%

Total Deposits = PKR 412 bnCost of Deposits = 3.6%

CASA = 66%

Fixed Deposits

Contribution 32%

Cost 7.4%

11

High Calibre and Experienced Management TeamHigh Calibre and Experienced Management Team6

Sustained ProfitabilitySustained Profitability

Source: Company reports(1) Business as usual ratios

Superior Growth (PKR bn)Superior Growth (PKR bn)

Name Position Global Bank Experience

Years of Bank

Experience

Atif R. Bokhari President & Chief Executive Officer

Bank of America 23

Aameer Karachiwalla

CFO & Group Executive Global Shared Services

Citibank 19

Ali Sameer Group Executive, Risk & Credit Policy

Robert Fleming 22

Mohammad Asghar

Group Executive Retail Bank

- 39

Hasan Raza Group Executive, Corporate Bank

Bank of America 18

Wajahat Husain

Head Of Middle East Union National Bank,Mashreq

Bank

23

Saeed Iqbal Head of Investment Banking

ANZ Grindlays

16

Najeeb Agrawalla

Group Head Marketing - Retail

Bank

Amercian Express

12

21.2% 28.3% 33.7% 29.6%

1.51%1.93%

2.44% 2.45%

2004 2005 2006 2007

ROAE ROAA

282358

164225 268

547436

326

25%22%27%

25%

19%21%

37%38%

2004 2005 2006 2007

Assets Gross LoansAssets Growth Gross Loans Growth

(1)

Core Management TeamCore Management Team

Management Team Has Delivered Outstanding Results

(1)

HK000MSI_Roadshow

Financial HighlightsFinancial Highlights

13

Superior Balance Sheet GrowthSuperior Balance Sheet Growth

Assets (PKR bn)Assets (PKR bn) Gross Loans (PKR bn)Gross Loans (PKR bn) Deposits (PKR bn)Deposits (PKR bn)

282

358

436

547

2004 2005 2006 2007

Top 4 Average

CAGR: 14%

2004 – 2007 CAGR: 25%

164

225

268

326

2004 2005 2006 2007

Top 4 Average

CAGR: 15%

2004 – 2007 CAGR: 26%

237

296

344

412

2004 2005 2006 2007

Top 4 Average

CAGR: 11%

2004 – 2007 CAGR: 20%

Source: Company reports

14

5.3%

6.5%6.0%

3.6%

5.5%

7.9%

11.0% 11.1%

2004 2005 2006 2007

Net Interest Margin Loan Yield

6.5

15.5

25.731.3

9.7

20.7

33.6

42.0

2004 2005 2006 2007

Interest Income from Loans

High MarginsHigh Margins

Interest Income (PKR bn)Interest Income (PKR bn) Loan Yield and Net Interest MarginLoan Yield and Net Interest Margin

Total Interest Income CAGR: 63%

(2004 – 2007)

Loan Interest Income CAGR: 69%

(2004 – 2007)

15

37%35%

11%

-3%

2004 2005 2006 2007

16%

47%

85%

7%

2004 2005 2006 2007

Strong Fee Income Growth and ContributionStrong Fee Income Growth and Contribution

Net Interest Income GrowthNet Interest Income Growth Total RevenueTotal Revenue(1)(1) (PKR bn)(PKR bn)

Source: Company reports(1) Defined as net interest income plus non interest income

12.7

19.9

28.6

34.7

2004 2005 2006 2007

2004 – 2007 CAGR: 40%

Non Interest Income GrowthNon Interest Income Growth

16

Sustained ProfitabilitySustained Profitability

Earnings TrendEarnings Trend Profitability RatiosProfitability Ratios

3,821

6,168

9,6679,237

2004 2005 2006 2007

20.3%25.0% 23.8%

20.6%

28.3%33.7%

22.8%21.2%

2004 2005 2006 2007

ROAE(1)

1.2%

1.8%2.1% 2.0%1.9%

2.4%

1.9%1.5%

2004 2005 2006 2007

ROAA

Industry average (2)

Source: Company reports(1) Includes minority interest and surplus on revaluation of assets(2) Source: SBP (Banking System Review June 2007)

2004 – 2007 CAGR: 34%

Net Profit (PKR mm)

UBL* 2007 results impacted by change in prudential regulations

HK000MSI_Roadshow

AppendixAppendix

18

Income StatementIncome Statement

(PKR mm)

Net Interest Income (1) 7,860 14,531 21,367 24,799 47%

Non Interest Income 4,818 5,372 7,262 9,930 27%

Operating Revenue (1) 12,679 19,903 28,629 34,729 40%

Operating Expense 7,346 8,727 12,328 14,734 26%

Pre-Provision Operating Profit 5,332 11,176 16,301 19,995 55%

Provision Expenses 357 1,434 2,240 6,423 162%

Others 35 (32) 439 224 86%

Net Income 3,821 6,168 9,667 9,237 34%

2004 2005 2006 2007 ’04-’07 CAGR

(1) Before provision expenses

19

Balance SheetBalance Sheet

(1) Includes minority interest and surplus on revaluation of assets

(PKR mm)

Cash and Bank Balances 48,119 52,832 68,442 68,605 13%

Investments – Net52,708 61,559 65,735 114,026 29%

Loans and Advances – Net148,225 210,153 254,670 308,271 28%

Total Assets282,248 358,056 435,835 546,796 25%

Customer Deposits237,054 296,499 343,805 412,138 20%

Borrowings12.637 22.751 38.625 59.491 68%

Total Liabilities262,869 333,783 402,658 498,905 24%

Equity(1) 19,379 24,274 33,177 47,891 35%

2004 2005 2006 2007 ’04-’07 CAGR