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Equity Bottom-Up

United Bank Ltd/Pakistan / Equity Bottom-Up

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Strong Financial Performance and Growth: UBL has demonstrated a robust growth trajectory with significant year-over-year increases in revenue and net income, driven by a high-interest-rate environment and expansion in its investment portfolio. The bank's profitability is expected to remain strong, supported by a large deposit base and unrealized gains on government securities.</li>
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Digital Transformation Leader: The bank is a recognized leader in digital banking in Pakistan, with a continuously growing base of digitally registered customers. This focus on technology provides a competitive edge, enhances operational efficiency, and positions UBL to capitalize on the growing trend of financial inclusion and digital adoption in the country.</li>
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Significant Macroeconomic and Regulatory Risks: UBL operates in a challenging environment characterized by Pakistan's economic and political instability. Key risks include high inflation, potential currency devaluation, and evolving regulatory changes from the State Bank of Pakistan, which could impact profitability and operational stability.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
Strong Financial Performance and Growth: UBL has demonstrated a robust growth trajectory with significant year-over-year increases in revenue and net income, driven by a high-interest-rate environment and expansion in its investment portfolio. The bank's profitability is expected to remain strong, supported by a large deposit base and unrealized gains on government securities.
  
Digital Transformation Leader: The bank is a recognized leader in digital banking in Pakistan, with a continuously growing base of digitally registered customers. This focus on technology provides a competitive edge, enhances operational efficiency, and positions UBL to capitalize on the growing trend of financial inclusion and digital adoption in the country.
  
Significant Macroeconomic and Regulatory Risks: UBL operates in a challenging environment characterized by Pakistan's economic and political instability. Key risks include high inflation, potential currency devaluation, and evolving regulatory changes from the State Bank of Pakistan, which could impact profitability and operational stability.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: United Bank Ltd/Pakistan (UBL PK) - Nov 2025

External broker reports(aggregated public sources), Topline Securities

Topline Securities

External broker reports(aggregated public sources)

Topline Securities is one of the fastest growing brokerage houses in Pakistan. It has strong equity brokerage, economic / equity research, mutual fund distribution, commodity trading and corporate finance & advisory functions. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>In a notice to the exchange, United Bank (UBL) informed that the BOD approved (1) the sale of United National Bank Limited UK (UNBL UK) to Bestway Group, and (2) the establishment of an Exchange Company.</li><li>UBL board approved the sale of its 55% stake in UNBL UK to the Bestway Group. Notice mentioned that the UNBL UK contributed Rs0.57 to the Consolidated EPS of UBL for 1H2023 and EPS of Rs0.48 for full year 2022.</li><li>UNBL UK is an banking institution incorporated in the United Kingdom. UNBL UK was formed in 2001 from the merger of the UK branches of United Bank Limited and National Bank of Pakistan.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

In a notice to the exchange, United Bank (UBL) informed that the BOD approved (1) the sale of United National Bank Limited UK (UNBL UK) to Bestway Group, and (2) the establishment of an Exchange Company.UBL board approved the sale of its 55% stake in UNBL UK to the Bestway Group. Notice mentioned that the UNBL UK contributed Rs0.57 to the Consolidated EPS of UBL for 1H2023 and EPS of Rs0.48 for full year 2022.UNBL UK is an banking institution incorporated in the United Kingdom. UNBL UK was formed in 2001 from the merger of the UK branches of United Bank Limited and National Bank of Pakistan.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Topline Flash Note: United Bank Limited (UBL): UBL to Sell United National Bank Limited UK (UNBL UK)

Global Bank Equity Specialist, Creative Portfolios

Paul Hollingworth

Global Bank Equity Specialist

Creative Portfolios

Pakistan continues to offer value opportunities. One of our favoured stocks globally Meezan has performed especially well over the last 12 months but may merit a pause as our attention again turns to UBL though we recognise the merits of Habib Metropolitan and National Bank of Pakistan.UBL ranks in the top quartile globally of our VFM (Valuation, Fundamentals, Momentum) universe. On a LTM basis, the bank's PH Score™ of 8.9 reflects progression in Profitability, in Efficiency, in Asset Quality, in Liquidity and in Provisioning as well as an attractive valuation variable though some (but not all) Capitalisation ratios and NIM/Spread eroded.<div class="content-highlight">A FV of 8% and a PBV of 0.77x are not unattractive below natural thresholds of 10% and 1x. The bank has an Earnings Yield of 16.2%, a Dividend Yield of 14.2%, and a Total Return Ratio of 3.1x.  </div>UBL’s network stands at 1,386 branches. This includes &gt;100 Islamic branches with around 200 Islamic banking windows. Omni, a flagship branchless banking proposition, supports the mass unbanked population. UBL prides itself in its technological innovations, including a “UBL Digital App”, one of the fastest growing Banking apps in the market with a digital subscriber base of &gt; 1.5 million.UBL dedicates itself to corporate lending (85% of credit) and to some limited consumer activity such as secured auto. The Corporate segment includes quite an elevated exposure to segments such as manufacturing, government, and utilities. Loans are concentrated in maturities &lt;1year and to a lesser extent &lt;5years.  By Operating Income, the bank is balanced between Branch Banking and a combination of Corporate/Commercial, Treasury, International, and Islamic Banking. CASA Deposits represent 75.0% of Deposits while Time Deposits contribute 23.0%. Deposit maturities are diversified. Higher remittances of late support further deposit inflows and foreign-currency liquidity. Remittances have the potential to increase over the next few years, backed by the Pakistan Remittances Initiative and technical advances that materially reduce transaction costs. UBL commands a 23% share in remittances.Caveats. Assessment must take into consideration the bank's high exposure to the sovereign through holdings of government securities, which links the bank's creditworthiness to that of the government, and to lending to the State. We highlight pressures on system asset quality and profitability metrics, as a result of the C-19 induced economic slowdown and ongoing challenges at the bank's GCC operations, while acknowledging the bank's stable deposit-based funding profile and high liquidity buffers. LCR and NSFR are elevated.

Pakistan continues to offer value opportunities. One of our favoured stocks globally Meezan has performed especially well over the last 12 months but may merit a pause as our attention again turns to UBL though we recognise the merits of Habib Metropolitan and National Bank of Pakistan.UBL ranks in the top quartile globally of our VFM (Valuation, Fundamentals, Momentum) universe. On a LTM basis, the bank's PH Score™ of 8.9 reflects progression in Profitability, in Efficiency, in Asset Quality, in Liquidity and in Provisioning as well as an attractive valuation variable though some (but not all) Capitalisation ratios and NIM/Spread eroded.A FV of 8% and a PBV of 0.77x are not unattractive below natural thresholds of 10% and 1x. The bank has an Earnings Yield of 16.2%, a Dividend Yield of 14.2%, and a Total Return Ratio of 3.1x.  UBL’s network stands at 1,386 branches. This includes &gt;100 Islamic branches with around 200 Islamic banking windows. Omni, a flagship branchless banking proposition, supports the mass unbanked population. UBL prides itself in its technological innovations, including a “UBL Digital App”, one of the fastest growing Banking apps in the market with a digital subscriber base of &gt; 1.5 million.UBL dedicates itself to corporate lending (85% of credit) and to some limited consumer activity such as secured auto. The Corporate segment includes quite an elevated exposure to segments such as manufacturing, government, and utilities. Loans are concentrated in maturities &lt;1year and to a lesser extent &lt;5years.  By Operating Income, the bank is balanced between Branch Banking and a combination of Corporate/Commercial, Treasury, International, and Islamic Banking. CASA Deposits represent 75.0% of Deposits while Time Deposits contribute 23.0%. Deposit maturities are diversified. Higher remittances of late support further deposit inflows and foreign-currency liquidity. Remittances have the potential to increase over the next few years, backed by the Pakistan Remittances Initiative and technical advances that materially reduce transaction costs. UBL commands a 23% share in remittances.Caveats. Assessment must take into consideration the bank's high exposure to the sovereign through holdings of government securities, which links the bank's creditworthiness to that of the government, and to lending to the State. We highlight pressures on system asset quality and profitability metrics, as a result of the C-19 induced economic slowdown and ongoing challenges at the bank's GCC operations, while acknowledging the bank's stable deposit-based funding profile and high liquidity buffers. LCR and NSFR are elevated.

UBL: Great Dividend Yield Given Funding and Liquidity Strengths

<a href="https://www.smartkarma.com/entities/united-bank-ltd-pakistan" target="_blank" data-smartkarma-citation="entities:28904:1" rel="noopener">United Bank Ltd/Pakistan (UBL PK)</a> PH Score™   9.7UBL dedicates itself to a mainly short-term corporate lending (84% of portfolio) which includes manufacturing, utilities and energy and government segments, with some limited consumer credit (mainly secured auto), backed by rising CASA funding (76% of Deposits).The bank’s network stands at 1,370 branches (2019: 1,376 branches). This includes 100 Islamic branches (2019: 100 branches) with over 187 Islamic banking windows (2019: 162 Islamic banking windows). Omni, a flagship branchless banking proposition supports the mass unbanked population to conduct basic banking transactions. UBL prides itself in its technological innovations, including a “UBL Digital App”, one of the fastest growing Banking apps in the market with a digital subscriber base of over 1.5 million.Higher remittances of late support further deposit inflows and foreign-currency liquidity. Higher remittances contribute to higher domestic deposits, providing lenders with stable and low-cost funding while boosting their foreign-currency liquidity. Remittances have the potential to increase over the next few years, backed by the Pakistan Remittances Initiative and technical advances that materially reduce transaction costs. UBL commands a 23% share in remittances.FY20/19 results show positive fundamental momentum and trends with improvement in Profitability, in NIM/Spread, in Liquidity, in Capitalization, in Efficiency and in Provisioning though there was erosion in headline Asset Quality. “Core Income” showed robust growth YoY, supported by reduced Funding Costs from Interest-bearing Liabilities, helped by vibrant CASA funding growth, margin enhancement, and Efficiency gains which partially offset a sizeable increase in LLPs which exerted a negative impact on Net Income which expanded by 9.1% YoY.Management appears to have prioritized Profitability, Capital Adequacy, Liquidity, Efficiency and de-risking over Balance Sheet growth which looks astute given systemic Asset Quality issues. Capitalization and Liquidity Ratios are as a result extremely healthy.<div class="content-highlight">A FV of 10%, a PBV of 0.8x, a Dividend Yield of 7.2%, an Earnings Yield of 13.1% and a Total Return Ratio of 1.35x are far from unappealing. The bank commands a top quartile PH Score™ (9.7) which captures value-quality trends.</div>We note a shareholder roster of some quality: Baillie Gifford, Schroders, BlackRock, Jupiter Asset Management, Vanguard, Standard Life Aberdeen, and Union Asset Management.

United Bank Ltd/Pakistan (UBL PK) PH Score™   9.7UBL dedicates itself to a mainly short-term corporate lending (84% of portfolio) which includes manufacturing, utilities and energy and government segments, with some limited consumer credit (mainly secured auto), backed by rising CASA funding (76% of Deposits).The bank’s network stands at 1,370 branches (2019: 1,376 branches). This includes 100 Islamic branches (2019: 100 branches) with over 187 Islamic banking windows (2019: 162 Islamic banking windows). Omni, a flagship branchless banking proposition supports the mass unbanked population to conduct basic banking transactions. UBL prides itself in its technological innovations, including a “UBL Digital App”, one of the fastest growing Banking apps in the market with a digital subscriber base of over 1.5 million.Higher remittances of late support further deposit inflows and foreign-currency liquidity. Higher remittances contribute to higher domestic deposits, providing lenders with stable and low-cost funding while boosting their foreign-currency liquidity. Remittances have the potential to increase over the next few years, backed by the Pakistan Remittances Initiative and technical advances that materially reduce transaction costs. UBL commands a 23% share in remittances.FY20/19 results show positive fundamental momentum and trends with improvement in Profitability, in NIM/Spread, in Liquidity, in Capitalization, in Efficiency and in Provisioning though there was erosion in headline Asset Quality. “Core Income” showed robust growth YoY, supported by reduced Funding Costs from Interest-bearing Liabilities, helped by vibrant CASA funding growth, margin enhancement, and Efficiency gains which partially offset a sizeable increase in LLPs which exerted a negative impact on Net Income which expanded by 9.1% YoY.Management appears to have prioritized Profitability, Capital Adequacy, Liquidity, Efficiency and de-risking over Balance Sheet growth which looks astute given systemic Asset Quality issues. Capitalization and Liquidity Ratios are as a result extremely healthy.A FV of 10%, a PBV of 0.8x, a Dividend Yield of 7.2%, an Earnings Yield of 13.1% and a Total Return Ratio of 1.35x are far from unappealing. The bank commands a top quartile PH Score™ (9.7) which captures value-quality trends.We note a shareholder roster of some quality: Baillie Gifford, Schroders, BlackRock, Jupiter Asset Management, Vanguard, Standard Life Aberdeen, and Union Asset Management.

UBL: Jump on the Quality Shareholder Bandwagon

Pakistan

United Bank Ltd. provides commercial banking and related services. The Bank offers a wide range of banking and financial services, including brokerage services.

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United Bank Ltd/Pakistan (UBL PK)

Primer: United Bank Ltd/Pakistan (UBL PK) - Nov 2025

Strong Financial Performance and Growth: UBL has demonstrated a robust growth trajectory with significant year-over-year increases in revenue...

αSK

Topline Flash Note: United Bank Limited (UBL): UBL to Sell United National Bank Limited UK (UNBL UK)

In a notice to the exchange, United Bank (UBL) informed that the BOD approved (1) the sale of United National Bank Limited UK (UNBL UK) to Bestway...

Topline Securities

UBL: Great Dividend Yield Given Funding and Liquidity Strengths

Selective banks in Pakistan offer strong fundamental momentum and attractive valuations. Meezan has been a favourite for awhile though underrated...

Paul Hollingworth

UBL: Jump on the Quality Shareholder Bandwagon

UBL commands highly benign fundamental momentum by global standards and is undervalued. De-risking, large remittance flows and a strong digital...

Paul Hollingworth

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