United Bank

United Bank is engaged in commercial banking and related services. Co. operates five business segments: Corporate Finance, Trading and Sales, Retail Banking, Commercial Banking and Asset Management. As of Dec 31 2016, Co. operates 1,341 branches inside Pakistan including 47 Islamic Banking branches and 2 branches in Export Processing Zones, and 18 branches outside Pakistan.
  • TickerUBL
  • ISINPK0081901016
  • ExchangePakistan Stock Exchange
  • SectorBanks
  • CountryPakistan
Muhammad Saad Ali

Pakistan's KSE-100 in May: Muted performance despite positive triggers

The KSE-100 was flat in May 2020 (down 0.5% mom), taking CY20td decline to 17%. There were some positive triggers, including the partial lifting of lockdown conditions by the government and the SBP cutting the policy rate further by 100bps to 8%. However, both failed to lift market sentiment. Market activity fell 9% mom to c.US$46mn average daily traded value. FIPI outflow (US$40mn in May) continued for the fourth consecutive month since the onset of Covid-19 pandemic. International oil price...

Rohit Kumar ...
  • Yusra Beg

UBL: Leadership change likely to bring more focus on cost-efficiency and digital

UBL today informed the stock exchange that it has appointed a new CEO. Shahzad G. Dada, currently CEO of Standard Chartered Bank Pakistan, will take up his new role on 1 July for a three-year term, subject to central bank approval. The three-year tenure of the current CEO, Sima Kamil, ends in June. Profile of Shahzad Dada Shahzad Dada has been CEO at Standard Chartered Bank Pakistan Limited (SCBPL) since 2014. Before that, he was the managing director and CEO at Barclays Bank Pakistan, and ch...

Raza Jafri ...
  • Yusra Beg

Pakistan banks: Tough times ahead; downgrade sector to Marketweight

* We downgrade our stance on Pakistan banks to Marketweight following the acute impact of Covid-19 on the economy and the sector. There are significant risks on revenue, particularly from tighter margins after the 425bps rate cut, while asset quality headwinds may persist for the next few years. A step increase in digital banking is possible, but this will not offset the weak near-term outlook. * The SBP has acted quickly to protect borrowers, but stress on banks looks unavoidable. We cut C...

Muhammad Saad Ali ...
  • Yusra Beg

Pakistan Market: KSE-100 – Staging a bounce back

The KSE-100 bounced back in April 2020, rising 17% mom, after a sharp 23% decline in March. The rally was led by (i) government decision to ease off lockdown conditions for certain industries, (ii) an emergency 200bps cut in the policy rate, bringing it to 9.0%, and (iii) a massive 62% slump yoy in global oil prices. MSCI World / EM indices were up 11.0%/ 9.0% mom. Market activity, however, came down by 11% mom to US$50mn average daily traded value. Foreign selling narrowed to US$69mn (vs US$...

Yusra Beg

United Bank: 1QCY20 in-line, strong cost control overcomes high provisioning

UBL has posted consolidated 1CYQ20 NPAT of PKR4,878mn (EPS: PKR3.98), up 21%yoy and flat qoq. Alongside the result, UBL announced an interim dividend of PKR2.50/sh. Both EPS and DPS are in-line with our projections. While provisions are high (possibly due to IFRS-9 implementation in overseas markets) this has been offset by strong cost control, where admin expenses are up just 6%yoy. Fee income is beginning to show signs of stress, but capital gains have partially compensated. 1QCY20 KEY RESU...

United Bank Ltd: 1 director sold

A director at United Bank Ltd sold 25,000 shares at 141.080PKR and the significance rating of the trade was 52/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of boa...

Raza Jafri ...
  • Yusra Beg

Pakistan Banks: Central bank announces relief package for borrowers

The State Bank of Pakistan (SBP), in collaboration with the Pakistan Bankers Association (PBA), has announced a relief package for stakeholders affected by the Covid-19 outbreak. Salient measures include the following: Reduction in Capital Conservation Buffer (CCB) to 1.5% In order to create additional liquidity for banks, the SBP has reduced the Capital Conservation Buffer (CCB) from 2.5% to 1.5%. This should enable banks to lend up to PKR800bn, or c10% of outstanding loans. We flag that mos...

Rohit Kumar ...
  • Yusra Beg

UBL: Leadership change likely to bring more focus on cost-efficiency and digital

UBL today informed the stock exchange that it has appointed a new CEO. Shahzad G. Dada, currently CEO of Standard Chartered Bank Pakistan, will take up his new role on 1 July for a three-year term, subject to central bank approval. The three-year tenure of the current CEO, Sima Kamil, ends in June. Profile of Shahzad Dada Shahzad Dada has been CEO at Standard Chartered Bank Pakistan Limited (SCBPL) since 2014. Before that, he was the managing director and CEO at Barclays Bank Pakistan, and ch...

Raza Jafri ...
  • Yusra Beg

Pakistan banks: Tough times ahead; downgrade sector to Marketweight

* We downgrade our stance on Pakistan banks to Marketweight following the acute impact of Covid-19 on the economy and the sector. There are significant risks on revenue, particularly from tighter margins after the 425bps rate cut, while asset quality headwinds may persist for the next few years. A step increase in digital banking is possible, but this will not offset the weak near-term outlook. * The SBP has acted quickly to protect borrowers, but stress on banks looks unavoidable. We cut C...

Muhammad Saad Ali ...
  • Yusra Beg

Pakistan Market: KSE-100 – Staging a bounce back

The KSE-100 bounced back in April 2020, rising 17% mom, after a sharp 23% decline in March. The rally was led by (i) government decision to ease off lockdown conditions for certain industries, (ii) an emergency 200bps cut in the policy rate, bringing it to 9.0%, and (iii) a massive 62% slump yoy in global oil prices. MSCI World / EM indices were up 11.0%/ 9.0% mom. Market activity, however, came down by 11% mom to US$50mn average daily traded value. Foreign selling narrowed to US$69mn (vs US$...

Yusra Beg

United Bank: 1QCY20 in-line, strong cost control overcomes high provisioning

UBL has posted consolidated 1CYQ20 NPAT of PKR4,878mn (EPS: PKR3.98), up 21%yoy and flat qoq. Alongside the result, UBL announced an interim dividend of PKR2.50/sh. Both EPS and DPS are in-line with our projections. While provisions are high (possibly due to IFRS-9 implementation in overseas markets) this has been offset by strong cost control, where admin expenses are up just 6%yoy. Fee income is beginning to show signs of stress, but capital gains have partially compensated. 1QCY20 KEY RESU...

Yusra Beg

Pakistan banks: Q1 CY 20 preview – Earnings to represent a peak in the year

We expect the IMS Banking Universe to post 1QCY20 consolidated NPAT of PKR29.5bn, up 38% yoy but down 8% qoq. While we expect a modest 3% sequential pick-up in NII, this is likely to be moderated by higher NPL provisioning and impairment on equity investments. A weaker PKR should lead to strong fx gains while fee income may remain flat. We expect UBL and MEBL to deliver the strongest earnings growth in 1Q on discernible jump in NII and a strong fx gains (fx loss in the case of HBL). This is l...

Muhammad Saad Ali

Pakistan's KSE-100 in May: Muted performance despite positive triggers

The KSE-100 was flat in May 2020 (down 0.5% mom), taking CY20td decline to 17%. There were some positive triggers, including the partial lifting of lockdown conditions by the government and the SBP cutting the policy rate further by 100bps to 8%. However, both failed to lift market sentiment. Market activity fell 9% mom to c.US$46mn average daily traded value. FIPI outflow (US$40mn in May) continued for the fourth consecutive month since the onset of Covid-19 pandemic. International oil price...

Moody's announces completion of a periodic review of ratings of United Bank Ltd.

Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of United Bank Ltd.. Global Credit Research- 24 Jul 2019. Limassol, July 24, 2019-- Moody's Investors Service has completed a periodic review of the ratings of United Bank Ltd. and other ratings that are associated with the same analytical unit.

Habib Bank, National Bank of Pakistan, United Bank, MCB Bank, Allied Bank : MCB, Allied will fare best under challenging macro conditions

Asset quality improvements will reverse and capital will remain modest, but profitability will recover and liquidity will remain sound.

United Bank Ltd.: Update to credit analysis

Our credit view of UBL, reflecting its strong funding profile, against its significant government exposures, modest capital buffers and recent profitability pressures.

Unibail-Rodamco SE: Update to credit analysis

Our credit view of Unibail-Rodamco-Westfield, reflecting the superior scale, diversity and high quality of its retail portfolio including mostly class A space

Raza Jafri ...
  • Rohit Kumar
  • Yusra Beg

Pakistan: Central bank defers IFRS-9 implementation to January 2021

Keeping in view the initial impact and readiness assessment (eg impact on capital ratios) conducted by Pakistan’s banking industry, the State Bank of Pakistan (SBP) has issued a circular on reporting guidelines for IFRS-9 (financial instruments) and decided to defer roll-out to January 2021. Banks will have to perform a parallel run of IFRS 9 in their financials from 1 January 2020 to gauge the IFRS-9 affected outcomes. However, we understand this will not be disclosed in the published accounts and will be reported to SBP directly.

Muhammad Saad Ali ...
  • Raza Jafri

Pakistan (IMS): Mid-Year Strategy – towards a better H2 19

• The IMF Executive Board approved Pakistan’s three-year US$6bn EFF programme. If successful, the programme can lead to more equitable growth for Pakistan . • We are encouraged by Pakistan’s new-look macroeconomic policy making, which is now coherent and better coordinated. • Low investor confidence led the KSE-100 to hit its 2019td low earlier in the week. Confidence should now improve.

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

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