Financial Statements - United Bank Limited

NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
40. SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES
For the year ended December 31, 2012
Corporate
finance
Trading and
sales
Retail
banking
Commercial
banking
Others Inter segment
elimination
---------------------------------------------------- (Rupees in '000) -----------------------------------------------------
Total income 246,954 11,244,132 34,016,112 8,515,021 1,668,716 -
Total expenses (371,504) (673,840) (20,138,123) (6,512,949) (965,592) -
Profit before tax (124,550) 10,570,292 13,877,989 2,002,072 703,124 -
Segment return on assets (ROA) -7.7% 1.9% 1.5% 0.4% - -
Segment cost of funds 0.8% 7.7% 4.1% 7.7% - -
For the year ended December 31, 2011
Corporate
finance
Trading and
sales
Retail
banking
Commercial
banking
Others Inter segment
elimination
---------------------------------------------------- (Rupees in '000) -----------------------------------------------------
Total income 470,136 6,723,574 35,052,073 8,943,499 953,999 -
Total expenses (266,567) (2,553,581) (20,221,694) (4,556,496) (322,152) -
Profit before tax 203,569 4,169,993 14,830,379 4,387,003 631,847 -
Segment return on assets (ROA) 2.8% 0.9% 1.7% 1.0% - -
Segment cost of funds 0.3% 7.9% 4.1% 7.3% - -
As at December 31, 2012
Corporate
finance
Trading and
sales
Retail
banking
Commercial
banking
Others Inter segment
elimination
---------------------------------------------------- (Rupees in '000) -----------------------------------------------------
Segment assets (gross of NPLs provisions) 1,433,174 414,116,266 667,040,326 324,520,391 84,050,176 (553,297,871)
Segment non performing loans (NPLs) 1,016,151 2,122,695 25,272,491 28,735,549 200,110 -
Segment provision held against NPLs 441,892 1,520,078 20,660,063 20,781,624 60,153 -
Segment liabilities 1,069,695 401,751,874 637,495,291 302,458,554 13,757,283 (553,297,871)
As at December 31, 2011
Corporate
finance
Trading and
sales
Retail
banking
Commercial
banking
Others Inter segment
elimination
---------------------------------------------------- (Rupees in '000) -----------------------------------------------------
Segment assets (gross of NPLs provisions) 1,890,059 363,569,373 641,206,230 289,494,457 81,161,845 (559,311,497)
Segment non performing loans (NPLs) 616,212 2,158,898 25,341,535 22,987,026 13,153 -
Segment provision held against NPLs 149,404 1,674,325 20,996,611 17,117,233 13,153 -
Segment liabilities 1,606,252 361,147,814 611,180,253 269,396,829 14,887,182 (559,311,497)
Segment assets and liabilities include inter segment balances.
Transactions between reportable segments are based on an appropriate transfer pricing mechanism using agreed rates.
41. TRUST ACTIVITIES
The Bank is not engaged in any significant trust activities. However, it acts as custodian for some of the Term Finance Certificates it arranges
and distributes on behalf of its customers.
42. RELATED PARTY TRANSACTIONS
The Bank has related party transactions with its associates, subsidiary companies, employee benefit plans and its Directors and executive
officers (including their associates).
The Bank enters into transactions with related parties in the normal course of business. Contributions to and accruals in respect of staff
retirement benefits and other benefit plans are made in accordance with the actuarial valuations / terms of the contribution plan. Remuneration
to the executives / officers is determined in accordance with the terms of their appointment.
Details of transactions with related parties during the year, other than those which have been disclosed elsewhere in these unconsolidated
financial statements, are as follows:
39