Audit Report On United Bank Limited 2013

                                         United Bank Ltd

1.    Current Situation

A.   Current Performance:

                 UBL profits grew by an impressive 49% during January to march 2012.making it the top performing private bank among the big 4.the bank has posted net profit of rs 4.87 billion in the first quarter of 2012 against rs 3.27 billion posted in the same period last year.in line with the industry trend, the growth was led by jump in non-interest income and a drop in bad loans, said analyst. The result is at least 16% higher than expectations as analyst expected net profit on average, to stand around rs 4.2 billion.

                         Net interest income core area of earnings grew marginally by 5% of rs 9.6 billion despite contracting margins. Announced earlier this week HBL and ABL Profit Grew by 22% while MCB Bank Followed with an increase of 12% During January to March 2012 .Fee and commission income also supported non markup growth up by 17% while income from foreign exchange declined 24 %.

The Bank support of directors in its meeting held in Abu Dabi and UAE also declared an interim cash dividend of re1 per ordinary shares of RS10.

B.   Strategic Posture

1. Mission:

Offer value added products & services while adhering to the highest level of ethical standards.

Attract develop & retain exceptional talent that shapes our passion for excellence and our commitment to teamwork

Listen carefully to all our stake holders and deliver winning solutions

Be a responsible corporate citizen

2. Strategic Managers

A. Board of Directors

            UBL has 11 Board of Directors and their name and Designations are Given Below

Designations :

Chairman                                                        Sheikh Nahyan Mubarik

Deputy Chairman                                           M Anwar Pervaiz OBE

President  & CEO                                            Atif R. Bukhari

Directors:

There are 6 Directors which are Given Below

Mr Omer Zahid           Mr Zameer MCH         Dr Ishfaq Hussain        M Sami Saeed

Mr Amin Ud Din         Mr Arshad Ahmad

SEVP / Company Security & Chief Legal Consultant: Mr aqeel Ahmad

Group chief Financial officer: Mr. Ameer Karachi Wala

B. Top Management

Top Management Of United Bank Limited is given below

Head of Executive Committee is basically the CEO and President of UBL

3. External environment:

A. Economical:

          Economically UBL become the part of the strongest banking market in the Pakistan.

The facts are given below

    They minimize the cost of their operations in the other words we can say that cost management is Good.

BOD’s of UBL declared the dividend of 20% which is the best percentage ever.

B. Technological

UBL improved their technology in the last decade .The overall Banking setup of the UBL centralized which reduces the cost of Technical Operations and also improve the current performance rapidly year by years and the efficiency of their employees.

C. Social Culture

UBL is a Joint Venture of Al Nahyan Group and Old Union Bank so it is the mixture of the Two Cultures of Pakistan and UAE.

            They started many Social Programs Which shows their interest in their Social activates.

            They Started the Schools for the Poor Children in Baluchistan

4. Internal environment

A. Corporate structure

B. Corporate Culture

New Pillars of Corporate Culture of UBL with our powerful determination to excel, the following are the pillars of the Corporate Culture of the UBL

Management of HRM

·       Accountability at all level

·       Benchmarking Positions

·       No Transfers

·       Raising Professional Standards

Focus On Customers

·       Innovation

·       Customer Sensivity

·       Services at their Best Level

Focus On Customer Solutions

·       Scientific and Objective analysis of Needs , Gaps for New Product Information

C.  Corporate Resources

           

Marketing:

 Marketing Objectives of UBL clearly Defines what the bank want from its target market and potential customers. They find which is the group of people really defines their target market and then they focus and make strategies for them.

                Cost of marketing was 48 million in 2012 and 1 million new customers attached.

Finance:

    Gross advances have increased by 9% over December 11 reaches to Rs 400 Billion. Return on assets improved by 2.1% for the full year 2011 and return on equity increased from 23.7% for 2011 and 25.7 % for the ninth month of 2012. BOD declared the 22% dividend profit to the shareholders. Good achievements.

5. Analysis of Strategic factors

A. SWOT Analysis

Strengths:

1.     One of the largest private bank with more than 400 Billion assets.

2.     Well-Knitted and adequately equipped branch networking system.

3.     Involve in both corporate and individual banking

4.     Constant growth

5.     Good Environment at work place

6.     Centralized Banking system

Weaknesses

1.     Administrative expenses are more than 51%

2.     Promotions are carried out on annual basses ignoring the importance of output performance

3.     Unsatisfactory Working conditions

Opportunities

1.     The efficiency of stock market and sound exchange reserves level is providing a good opportunities for effective investment decisions

2.     Foreign remittance are another big area as present worldwide control system

3.     Reconstruction of Afghanistan is a golden opportunities after the War is now near to end. 

4.     Expansion of IT Platform and Intra internet banking system

5.     Outsourcing of promotional companies

6.     Entering into new market segments

7.     Increase Product range

Threats

1.     More competitor banks

2.     Growing Global technology advancements

3.     Expensive promotion campaigns run by other Banks

EXHIBIT 1: EFAS Table for UBL

External Factors 1	Weight  2	Rating 3	Weighted Score 4	Comment 5
Opportunities
Increase product range	0.20	2.1	0.42
Expention of IT platform & internet banking system	0.20	4.0	0.80
Enteriung into new market segmentation	0.10	3.2	0.32
Threats
More competitor banks	0.30	3.0	0.90
Growing global technology advancements	0.10	1.3	0.13
Expensive promotion compaings run by other banks	0.10	3.2	0.31
Total score	1.00		2.88

EXHIBIT 2: IFAS table for UBL.

Internal Factors  1	Weight 2	Rating 3	Weighted Score 4
Strengths
Involve in both individual and corporate banking	0.20	3.9	0.78
Constant growth	0.15	2.0	0.30
Centralized banking system	0.15	2.5	0.38
Weaknesses
Ineffective system of recruiting and selection	0.25	3.0	0.75
Unsatisfactory working conditions	0.10	2.3	0.23
Administrative expenses are more than 51%	0.15	2.5	0.38
Total Score	1.00		2.82

EXHIBIT 3: SFAS Matrix for UBL.

Startegic Factors	1 Weight	2 Rating	3 Weighted Score
Ineffective system of recruiting and selection (W)	0.30	3.0	0.90
Constant growth (S)	0.20	2.0	0.40
Expension of IT platform & internet banking system (O)	0.25	4.0	1.00
Expensive promotion campaigns run by other banks (T)	0.25	3.2	0.80
Total Score	1.00		3.10