Press Release

JCR-VIS Reaffirms Ratings of United Bank Limited

Karachi, June 24, 2010: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of United Bank Limited (UBL) at ‘AA+/A-1+’ (Double A Plus/A-One Plus). Ratings of the four outstanding subordinated debt instruments, TFC-1, TFC-2, TFC-3 and TFC-4, issued by the bank have also been reaffirmed at ‘AA’ (Double A). Outlook on the assigned ratings is ‘Stable’.

UBL is the third largest bank in the country with a market share in domestic deposits of about 9% at the end of FY09. Cost of deposits peaked in 1Q2009, and from there onwards, there has been a steady decline. Deposit mix has featured continuous improvement over time on the back of increasing core deposits. Capitalization levels have also strengthened further.

UBL experienced a sharp increase in NPLs over FY09 across all business segments. A strong earnings profile has allowed the bank to absorb the impact of rising NPLs. In the year 2009, the bank consolidated its existing exposures, in both the domestic and overseas markets. The bank’s outlook is expected to remain conservative, with growth, going forward, to be linked with economic activity.

UBL’s overseas operations are mostly concentrated in the Middle East, the size of which has contracted slightly over 2009. In relation to the total resource base, overseas operations represent about 20% of the book. In the backdrop of developments in these markets, the quality of portfolio has so far demonstrated resilience and liquidity requirements have also been adequately addressed.

For further information on this rating announcement, please contact Ms. Sabeen Saleem (Ext: 510) or Ms. Sobia Maqbool (Ext: 506) at 35311861-70 or fax to 35311872-3.



Faheem Ahmad
President & CEO

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2010 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .