UNITED BANK LIMITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2010 2009 2008 ------- (Rupees in '000)

------ASSETS Cash/Balances with banks Lending to financial institutions Investment(short term) Advance Performing(short term) Other assets Total current assets Investment(long term) Advance Performing(long term) Advance Non performing(long term) Operating fixed assets Deferred Tax Assets Total long term Assets Total Assets 35591280 19050791 29580252 89292490 3509351 177024164 25007413 10312297 3671991 3884990 5486357 48363048 225387212 34392618 3627557 33883311 43632117 2641471 118177074 33623058 26423058 5739798 2831534 5026459 73643907 191820981

LIABILITIES Bills payables Borrowings ST Deposits-Current Lease and others Total Current Liabilities Fixed Deposits Other Long Term Liabilities Total Long term Liabilities Total Liability NET ASSETS SHAREHOLDER'S EQUITY

2991269 174533 152580240 5933743 161679785 37252204 10883720 48135924 209815709 15571503

1847025 174533 118167469 9986608 130175635 43998916 5212755 49211671 179387306 12433675

Share Capital Reserves Accumulated Losses/Profit Minority Interest Surplus on revaluation-net of deffered tax Total

5180000 4712569 454403 1412932 3811599 15571503

5180000 4258947 (722387) 1271700 2445415 12433675

2010

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UNITED BANK LIMITED CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED DECEMBER 31, 2010 2009 2008 ------- (Rupees in '000) ------Mark up revenue Mark up expense Gross Profit Provisions and Bad Debts Net Mark up Income Commission and Brokerage Dividends/Exchange and others Total Non Mark up Income Total Income Non Mark up Expense administrative Other Provisions and charges Total Non Mark up Expenses Profit before Extraordinary Items Extraordinary Items Profit before Tax Taxation Profit/Loss After Tax Share of minority Interest Accumulated Loss Brought Forward Adjusted against Share Capital Appropriation and Transfers Surplus on revaluation of assets Transfer to statutory reserves 9269 1931 7338 564 6774 2142 2803 4945 11719 11385 5476 5909 746 5163 2008 1514 3522 8685

6639 556 7195 4524 0 4524 1704 2820 21 722

5879 51 5930 2755 25 2780 1319 1461 10 27282 25202

527

236 332

Accumulated Loss Brought Forward

454

722

FINANCIAL RATIOS
CALCULATIONS AND INTERPRETATIONS
1 CURRENT RATIO

FOR YR 2008
CURRENT RATIO=CURRENT ASSTS/CURRENT LIABILTIES 0.91

FOR YR 2009
1.09 INTERPRETATION.

UBLs current ratio is increasing over the time. Higher the current ratio higher the ability to meet the short-term obligations as they come due. The UBLs current ratio is increased by 0.18% as compared to 2008, this in turn decreases the risk of insolvency. The change is occurring due to increase in short term investment and decrease in short term borrowings.

2 ASSET TURNOVER RATIO

FOR YR 2008
ASSET TURNOVER RATIO=MARKUP REVENUE/TOTAL REVENUE ASSET TURNOVER RATIO=TOTAL SALES/TOTAL REVENUE 5.94E-05 0.06

FOR YR 2009
4.11E-05 0.04 INTERPRETATION.

This shows revenue generated per rupee investment in total assets. UBLs assets turnover ratio has shown a little decrease. This is because of increase in total assets with proportionate increase in revenue. Banks have relatively low ASSET TURNOVER CAPITAL , as they are selective in advancing loans and generating smaller sales.

3 DEBT TO ASSET

FOR YR 2008
DEBT TO ASSET=TOTAL DEBT/TOTAL ASSETS 0.94

FOR YR 2009
0.93 INTERPRETATION.

The analysis of total debt to assets ratio, there has been decrease of one percent as compared to 2008 by rupees.In 2009 it is reduced to 0.93 worth of debt per rupee of asset. Although the decrease is not large enough but it is a good sign for banks creditors. The decrease may be attributed to the substantial decrease in borrowings from financial institutions but the affect was weakened by an increase in bills payable and other liabilities.

4 DEBT TO EQUITY

FOR YR 2008
DEBT TO EQUITY=TOTAL DEBT/TOTAL ASSETS 0.06

FOR YR 2009
0.07

INTERPRETATION.

This ratio measures how the company is leveraging its debt against the capital employed by its shareholders. This ratio tells us that creditors are providing 0.06 and 0.07 paisa of financing for each rupee 1 being provided by the shareholders. The lower the ratio this ratio the higher the level of the firms financing that is being provided by shareholders, and the larger the creditor cushion(margin of protection) in the event of shrinking assets values or outright losses.

5 COVERAGE

RATIO
0.508

FOR YR 2008
COVERAGE RATIO=EBIT/INTEREST EXPENSE

FOR YR 2009
2.343 INTERPRETATION.

This ratio shows the number of times a company can cover or meet its financial charges or obligations. One of the most commonly used ratios is the interest coverage ratio that measures the number of times the income is available to pay interest charges. The UBL interest coverage ratio has shown significant improvement in these 2 years. The ratio is increased from 0.508 to 2.343

6 GROSS PROFIT MARGIN

FOR YR 2008
GROSS PROFIT MARGIN=NET SALES-COGS/NET SALES GROSS PROFIT MARGIN=GROSS PROFIT/REVENUE*100 52

52%

FOR YR 2009
79% INTERPRETATION.

Gross profit margin is the difference between the revenue and cost of goods sold. Gross profit is critical because it represents the amount of money remaining to pay operating expanses financing cost and taxes. UBLs gross profit margin per rupee has shown rising trend in last 2 years. There is an increase of 27% in 2009 as compared to 2008. This shows efficiency of the bank to control the cost of sales.

7 NET PROFIT MARGIN

FOR YR 2008
NET PROFIT MARGIN=NET PROFIT/RVENUE*100 12.83 12.83%

FOR YR 2009
30.42 30.42% INTERPRETATION.

This ratio shows the profit that is available from each rupee of the sale. After all expanses have been paid. Net profit margin is also showing an increasing trend. UBL has improved net profit margin in the current years. The net profit margin has reached to 30% as compared to 2008 in which it was only 12.8 %.

8 RETURN ON INVESTMENT(ROI)

FOR YR 2008
ROI=NET PROFIT/TOTAL ASSETS*100 0.00076 0.76 0.76%

FOR YR 2009
0.0013 1.25 1.25% INTERPRETATION.

This ratio measures the profitability per rupee of investment in assets. UBLs return on investment has shown an improvement more than 100%. In 2009 the ratio is 1.25% while in 2008 it was 0.76%.

9 RETURN ON EQUITY

FOR YR 2008
RETURN ON EQUITY=NET PROFIT/TOTAL EQUITY*100 0.01 11.75 11.75%

FOR YR 2009
0.02 18 18% INTERPRETATION.

This ratio shows the profit as a proportion of the book value of the common shareholders. The return on equity is also shown a great deal of positive change. In 2009 the ratio is 18% while in 2008 it was 11.7%.

FINANCIAL RATIOS 2008 0.91 0.06 0.94 0.065 0.508 52% 12.83% 0.76% 11.75% 2009 1.09 0.04 0.93 0.069 2.343 79% 30.42% 1.25% 18%

CURRENT RATIO ASSET TURNOVER DEBT TO ASSET DEBT TO EQUITY COVERAGE RATIO GROSS PROFIT MARGIN NET PROFIT MARGIN RETURN ON INVESTMENT RETURN ON EQUITY