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
|
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