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Karachi, In a pivotal board meeting convened on September 11, 2023, the Board of Directors of United Bank Limited (UBL) has given its nod to two significant decisions:
1. Establishment of an Exchange Company with PKR 1.0 Billion as initial Paid Up Capital: UBL intends to create an Exchange Company, which will operate as a wholly-owned subsidiary of UBL, subject to approvals from the State Bank of Pakistan and compliance with other regulatory requirements.
2. Approval of Indicative Offer from Bestway Group (BG): The board has also approved an “Indicative Offer” put forth by Bestway Group (BG) to acquire UBL’s entire shareholding in UNBL UK. Currently, UBL holds a 55% stake in UNBL UK.
UNBL UK’s contribution to UBL’s Consolidated Earnings Per Share (EPS) for the first half of 2023 was Rs 0.57. In 2022, UNBL UK contributed Rs 0.48 per share to UBL’s Consolidated EPS.
As of June 30, 2023, UNBL UK had Risk Weighted Assets totaling PKR 339.2 Billion, causing a downward impact of 200 basis points to UBL’s Consolidated Capital Adequacy Ratio.
Both decisions are contingent upon approval and clearance from the State Bank of Pakistan and adherence to all requisite regulatory compliance measures in both Pakistan and the United Kingdom. These developments signify UBL’s strategic moves to optimize its operations and financial portfolio.
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