United Bank Limited Take Over

VIRTUAL BANKING

INTRODUCTION TO INFORMATION TECHONOLOGY

Presented By:
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Nobody can go back and start a new beginning, but anyone can start today and make a new ending.

Agenda
Change UBL An Established Player The Shareholders UBL Perspective Privatization a Need Privatization a Process UBL Management Reconstruction of UBL Services of UBL Problems Conclusion

Change
A set of processes that is employed to ensure that significant changes are implemented in an orderly, controlled and systematic fashion to effect organizational change.

UBL An EstAblishEd plAyEr

Second largest private sector bank in Pakistan
1,071 branches Full-service bank serving all market segments History of over 46 years Presence in 10 countries through 22 offices in the Middle East, USA, UK, and Switzerland.

Shareholding:
The Bestway Group (25.5%), Abu Dhabi Group (25.5%), the Government of Pakistan (44.8%) General Public (4.2%)

thE shArEholdErs
The Bestway Group
Large diversified UK based group with interests in whole sale/retailing, cement, food, banking and real estate.

The Abu Dhabi Group

Strong group of investors led by HH Shaikh Nahayan Mabarak Al Nahayan, Federal Minister for Higher Education(Govt. of UAE) with interests in hospitality, banking and telecom.

UBL Perspective
Set up in 1959 by Mr. Agha Hassan Abedi. First 10 years were challenging Habib Bank, the largest in the country Nationalized in 1973 along with 4 other locally owned banks Privatization program started in 1991 51% of the smaller Muslim Commercial Bank successfully sold Thereafter, the smallest Allied Bank sold Privatization of the larger but more problematic UBL unsuccessfully attempted 3 times between 1991 & 1996.

Privatization a Need
The privatization of United Bank Limited is a cumbersome task, its position was not as bad as it appeared but, the bank was suffering a surplus staff of nearly eight thousand in its total strength of 22,500.

Privatization a Process
21 Expression of Interest Bidders from Pakistan Bidders from world Main Interest bidders Bids & process

The Consortium
Abu Dhabi & Bestway Group The increased bid The final bid

UBL Management
Board of Governors Experienced banking professionals Senior bankers Qualified middle and lower management personnel Team of professionals

Reconstruction of UBL
The Perspective Objectives of Reforms
Phase 1: Stem the bleeding Phase 2: Create Key Building Blocks Phase 3: Consolidate for growth

Staff Downsizing Network Rationalization Non Performing Loans

Non Performing Loans

Overall, the most difficult area to manage Declared at 60% of loans actually higher. 25% of these at overseas branches Used dedicated units with direct CEO reporting Domestic Profile Overseas Profile Actions Taken Reducing the flow

Services of UBL
Deposits
UBL Business Partner (Current Account) Rupee Transactional Account (RTA) UBL Basic Banking Account - BBA Regular Term Deposits Receipts Foreign Currency Savings Foreign Currency Term Deposits

Loans
Home Loans Business Loans Zarai Loan

nEw initiAtivEs
In 2006
UBL Islamic Banking UBL Insurers Venture Capital UBL Securities

In 2007
Private Banking

Near future
Regional Alliances

Problems
Central Bank Change in laws Consultants Downsizing Existing staff New hires NPLs On Reform On Privatizations

Conclusion
Can be transformed from dying dinosaurs to vibrant, lean, competitive entities that can be privatized

Temptation to retain once fixed but privatization is critical Set realistic targets start with more doable ones!

THANK YOU
QUESTIONS?