INTERNSHIP REPORT ON

UNITED BANK LIMITED

MADIYAN ROAD, MINGORA SWAT

Submitted By: Burhan Ali

BS Commerce

Reg No: UOS196600059

Email: burhanaliali582@gmail.com

Contact #: +923449487068

Government College of Management Sciences Sangota Swat

Affiliated with: University of Swat

(Session: 2019-2023)
 Government College of Management
Sciences Sangota Swat
Phone: (0946) 730105
Email: gcmsswat1@gmail.com

Certificate

It is certified that the internship report of Mr. Burhan Ali, Roll No: 1966059, a student of BS

Commerce, has been checked through Turnitin Software, and the Similarity Index is found to

be up to 10 percent in the overall document, with 03 percent in a single source.

Checked and verified by the department committee head by undersigned:

1) Mr. Inayatullah (lecturer) _______________________

2) Mr. Muhammad Ilyas (Lecturer) _____________________

Checked and approved by concern supervisor: Mr. Shahid Hussain: ______________

_______________________
In charge of Internships Program
Mr. Syed Rahman
Assistant Professor of Commerce
Govt: College of Management Sciences
Sangota Swat
 APPROVAL SHEET

This internship report has been submitted by Mr. Burhan Ali, student of BS Commerce

program at Govt College of Management Sciences Sangota Swat as partial fulfilment

of the degree requirement from University of Swat. The primary focus of this report

involves United Bank Limited's Madiyan Road Mingora Branch in Swat.

____________________________

Internal Supervisor

Professor Shahid Hussain

GCMS Sangota, Swat

____________________________

Principal (GCMS Sangota Swat)

____________________________

External Examiner
 ACKNOWLEDGEMENTS

I am humbly grateful to the Almighty Allah, the most Merciful and Supreme, for

providing me with the strength and ability to complete this internship report

successfully.

I would like to express my heartfelt appreciation to Mr. Shahid Hussain for his

invaluable support and guidance throughout the process of preparing this internship

report. I extend my sincere thanks to the Manager of UBL Madiyan Road Branch and

the entire staff for their assistance and cooperation during my internship. Their

guidance and willingness to share their knowledge have greatly contributed to my

understanding of the banking industry.

I am also indebted to my parents and friends for their unwavering support. Their

encouragement and solid belief in my abilities have been instrumental in the completion

of this report.

“BURHAN ALI”

iii
Tables of Contents

CHAPTER NO # 1 INTRODUCTION
1.1 Introduction 01
1.2 Objective of the studying in organization 01
CHAPTER NO # 2 OVERVIEW OF THE ORGANIZATION
2.1 Brief history 02
2.2 Nature of the organization 02
2.3 Business volume 03
2.4 Number of employees 03
2.5 Products lines 04
CHAPTER NO # 3 ORGANIZATIONAL STRUCTURE
3.1 Main offices 07
3.2 Comments on organization structure 07
CHAPTER NO # 4: STRUCTURE OF FINANCE DEPARTMENT
4.1 Number of employees working in finance department 08
4.2 Finance and accounting operation 08
CHAPTER NO # 5 FUNCTION OF THE FINANCE DEPARTMENT
5.1 Accounting system of the Organization 10
5.2 Finance system of the Organization 10
5.3 Use of Electronic data in decision making 10
5.4 Mobilization of funds 10
5.5 Generation of funds 10
5.6 Sources of Funds 11
5.6 Allocation of Funds 11
CHAPTER NO # 6 CRITICAL ANALYSIS
6.1 Financial analysis 12
6.1.1 Ratio analysis 15
6.1.2 Horizontal analysis 18
6.1.3 Vertical analysis 20
6.2 Organization analysis with reference to the industries listed 22
6.3 Behaviour of the organization in allocation of funds 22
6.4 Future prospects of the organization 23
CHAPTER NO # 7 SHORTFALLS/WEAKNESSES OF FINANCE
DEPARTMENT
7.1 Critical Analysis of The Management Patterns 24
CHAPTER NO # 8 CONCLUSION AND RECOMMENDATIONS
8.1 Conclusions 26
8.2 Recommendations 26
REFERENCES AND SOURCE USED 28

iv
LIST OF TABLES

Table Title Page #

2.1 Business Volume 04

2.2 No of Employees working in UBL 04

3.1 Main Offices 07

4.1 No of Employees in Finance Department 08

6.1 Balance Sheet 13

6.2 Income Statement 14

6.3 Current Ratio 15

6.4 Assets Turnover 16

6.5 Debt to Assets Ratio 16

6.6 Net Profit Margin 17

6.7 Return on Investment 17

6.8 Horizontal Analysis of Balance Sheet 18

18 Horizontal Analysis of Profit and Loss Account 19

6.10 Vertical Analysis of Balance Sheet 20

6.11 Vertical Analysis of Profit and Loss Account 21

6.12 UBL Analysis with Reference to the Industries Listed 22

6.13 Organization behavior in allocation of various funds to 22

different assets

v
 CHAPTER # 1

INTRODUCTION

1.1 INTRODUCTION
Internships have become a common practice for individuals seeking work experience

in various organizations, including businesses, government institutions, and semi-

government organizations. United Bank Limited (UBL) has been chosen for this

internship due to its extensive branch network within Pakistan and globally. UBL offers

a wide range of services and continuously adopts new innovations and products in the

banking industry.

The banking sector's engagement in industry, trade, and commerce renders it a pivotal

instrument for comprehensive national development Amid technological advancements

and intensifying competition, the banking sector is undergoing substantial

transformations, introducing fresh challenges. In the province of KPK, banks play a

pivotal role, given the substantial influx of foreign remittances that not only contribute

to the province but also bolster the national economy.

1.2 OBJECTIVE OF THE STUDYIN ORGANIZATION

The purpose of this study within the organization is to achieve multiple objectives. The

reasons for conducting this study go beyond just meeting a requirement; they are

focused on enhancing my analytical and practical abilities. The key objectives include:

1. To fulfill the partial requirement of BS Commerce.

2. To observe the application of learned concepts in the work place.

3. To enhance communication skill and get first hand work experience.

1
 CHAPTER NO 02
OVERVIEW OF THE ORGANIZATION

2.1 BRIEF HISTORY

United Bank Limited (UBL) has a rich history dating back to its establishment in June

1959It officially began operations on November 7, 1959, with its first branch in

Karachi. UBL quickly expanded internationally, opening branches in London,

Bradford, Birmingham, Dubai, and Abu Dhabi. The bank was a pioneer in

computerized banking, offering automated services for deposits. UBL has experienced

significant growth, becoming one of the top three banks in Pakistan in terms of deposits

and branch coverage. It operates through four main business segments, providing a

wide range of services. UBL's continuous growth and diverse offerings make it a

prominent player in the Pakistani banking sector.

2.2 NATURE OF THE ORGANIZATION

UBL covers wide range of services and products. UBL offers various deposit accounts

in both local and foreign currencies, catering to the need of individual and corporate

clients. The bank facilitates remittance services, allowing for the swift transfer of funds

domestically and internationally.

2
2.3 BUSINESS VOLUME
Table 2.1 Business volume

2018 2019 2020 2021 2022

Balances 206,813 256,591 264,727 291,300 158,697

Lending’s 33,942 20,183 19,959 51,701 85,296

Investments 792,857 849,441 1,138,018 1,504,689 1,442,017

Advances 776,272 702,951 609,307 728,286 1,013,767

Total Assets 1,889,599 1,892,775 2,049,392 2,618,166 2,758,753

Source: U BL ann ual rep ort 2022

1 1 1

2.4 NUM BER O F EMPL OY EES

1 1 1 1

Table 2.2

Years 2018 2019 2020 2021 2022

Permanent 7127 7564 7984 8685 9984

Contractual Basis 15 15 24 24 23

B ank Sta ff
1 1 8841 8465 8459 8814 9083

Outsourced 6152 5514 3054 3513 3974

Total Employees 24153 23577 21541 23057 25086

Source: UBL annual report2022

3
2.5 PRODUCT LINES
UBL offers a range of account options to fulfill different needs of customers:

1. UBL Mukammal Current Account: A current account with no minimum balance

requirement. It provides free services such as ATM debit card, cheque book, account

statement, SMS alerts, internet banking, and inter-branch online transactions.

2. UBL Business Partner Account: A current account suitable for individuals, sole

proprietors, partnerships, and government entities. It requires a minimum balance of Rs

10,000, with a monthly deduction of Rs50 for balances below the requirement. Services

include deposits, withdrawals, ATM card, cheque book, and first-year free locker

facility.

3. UBL UniZar Foreign Currency Current Account: A current account maintained

in foreign currency, available in US Dollar, Euro, AED, British Pound, and Saudi riyal.

There are no restrictions on transactions, and Zakat exemption is provided.

4. UBL UniZar Foreign Currency Term Deposits Receipt: A term deposit account

offering various maturity periods (3, 6, and 2 months) in different foreign currencies. It

provides attractive return rates, and profit is given based on the booking month's rate.

5. UBL Regular Term Deposit Receipts: A term deposit account with flexible tenures

ranging from 1 month to 10 years. Profit is given monthly, and customers have the

option for renewal or early encashment.

6. UBL Mahana Aamdani Savings Account: A savings account suitable for

individuals, partnerships, government institutes, and other entities. It can be opened

with Rs 00 and has no minimum balance requirement. Profit is calculated on the

monthly average balance and credited to the account.

4
7. UBL Mahana Aamdani Term Deposit: A term deposit account designed for

customers with fixed monthly salary or income. It requires a minimum investment of

Rs25,000 with flexible tenures (3 months, 6 months, 1year, 3 years, and 5 years)

Monthly profit payment, renewal, and early encashment options are available.

8. UBL Basic Banking Account: A current account suitable for students, house wives,

and pensioners. No minimum balance requirement, opened with Rs ,000. Transaction

limits apply (2 deposits and 2 withdrawals), exceeding which charges apply. Unlimited

ATM withdrawals from UBL ATM.

9. UBL Cash Plus - My Personal Loan: A flexible personal loan with up to Rs2

million loan amount, attractive rates, and no collateral requirements. Available for

individuals with a minimum net income of Rs25,000, aged 2 -60 years, and a repayment

period of -5 years. Offered to salaried individuals with salaries credited to UBL.

10. UBL Address Home Loan Facility: Financing for new home construction or

purchase in selected cities. Minimum loan amount of Rs 1,000,000. Available for

Pakistani residents with a minimum monthly income of Rs50,000, aged 23-65 years.

Fixed interest rates based on KIBOR, with repayment in installments over 3-20 years.

5
 CHAPTER NO 03
ORGANIZATIONAL STRCTURE

ORGANIZATIONAL STRUCTURE OF UBL

Figure: 3.1 Organizational structure

Source: UBL Annual report 2022

6
3.1 MAIN OFFICE
UBL head office is located,9th Floor, UBL Tower, I.I Chundrigar Road, Karachi.

S. # Branch Name City Address

1 Main Branch Karachi I.I Chundrigar Road, Karachi

2 Korangi Karachi Korangi Industrial Area, Karachi

3 University Rd. Peshawar Main University Road, Peshawar

4 G.T. Road Islamabad Peshawar Mor, Islamabad

5 Warsak Rd Peshawar Near FATA Secretariat, Peshawar

6 Saleh Khana Nowshera Mardan Road, Nowshera

7 Johar Town Lahore Block E, Johar Town, Lahore

Source: www.unitedbank.com

3.2 COMMENTS ON THE ORGANIZATIONAL STRUCTURE

The organizational structure of UBL follows a top-down communication system, with

decisions made by the Chairman and Board of Directors and cascaded down to first-

line managers. This structure enables efficient decision-making and control within the

organization, helping achieve desired goals. UBL emphasizes adherence to employee

rules and regulations through proper guidelines and training, ensuring a structured and

organized work environment. This structure saves time and allows for effective

implementation of projects and decisions

7
 CHAPTER NO 04
STRUCTURE OF THE FINANCE DEPARTMENT

4.1 NUMBER OF EMPLOYS WORKING IN ECONOMICS

DEPARTMENT
Table 4.1

Employees Detail 2018 2019 2020 2021 2022

Permanent 2820 3089 3302 3170 3350

Contract Base 282 341 304 420 498

Outsourced 622 590 563 698 712

Total 3724 4020 4169 4288 4560

Source: UBL Annual report 2022

4.2 FINANCE AND ACCOUNTING OPERATIONS

Banks perform a wide range of operations that are essential to the functioning of the

banking industry. These operations encompass various functions, from basic day-to-

day transactions to more specialized services. Some of the key operational and

accounting functions in banking encompass the acceptance of deposits from customers,

lending funds to individuals and businesses, clearing cheques for timely payment

processing, remitting funds for domestic and international transfers, providing lockers

and safe deposit services for secure storage, facilitating bill payment services, offering

online banking platforms for convenient account access, issuing and managing credit

and debit cards, delivering overseas banking services, managing wealth for investment

and asset management, providing investment banking services, and pursuing social

objectives. These operations collectively contribute to the smooth functioning of the

banking industry and the fulfillment of customers financial needs.

8
ACCOUNTS DEPARTMENT

The Accounts Department in a bank plays a crucial role in managing and maintaining

the financial transactions of customers. It serves as a platform for individuals to fulfill

their financial needs by providing services such as depositing and withdrawing money

for personal use. The department also enables the bank to generate funds for various

projects and investments, while ensuring the safety and security of customers' money.

REMITTA NCES DEPA RTMENT

1 1

The Remittances Department in a bank plays a vital role in transferring money from

one place to another for both customers and non-customers. Banks charge service fees

for this service, as it involves the movement of funds.

DEPOSITS DEPARTMENTS

The Deposits Department in a commercial bank handles various types of deposits:

• Current or Demand Deposits: for day-to-day transactions

• Savings Deposits: for encouraging savings

• Fixed Deposits: for fixed periods with predetermined interest rates

• Call Deposits: short-term deposits with higher interest rates

FOREIGN EXCHANGE DEPARTMENT

The Foreign Exchange Department is a vital component of modern banking systems

and plays a significant role in import and export businesses. It operates alongside

general banking functions and is regulated by the State Bank of Pakistan. The

department follows specific rules and regulations outlined in manuals provided by the

central bank.
C

9
 CHAPTER NO 05
FUNCTIONS OF FINANCE DEPARTMENT

5.1 ACCOUNTING SYSTEM OF THE ORGANIZATION

11 11 11 11

Bank borrowing funds from external sources is indeed crucial for the functioning of the

entire banking system. Deposits, on the other hand, play a fundamental role in the

operations of commercial banks. While banks accept deposits for safekeeping, they also

have the authority to utilize these funds as they see fit.

5.2 FINANCE SYSTEM OF THE ORGANIZATION

UBL's Finance department is responsible for managing various financial terms and

services offered to customers. Advances, in particular, play a crucial role in the banking

business as they generate interest income for the bank. UBL actively provides loans to

customers, contributing to the economic development of the country.

5.3 USE OF ELECTRONIC DATA IN DECISION-MAKING

An efficient system is in place for carrying out intricate operations within the branch,

which is seamlessly connected to the main headquarters and other branches.

5.4 MOBILIZATION OF FUNDS

Commercial banks play a crucial role in mobilizing funds by accepting deposits from

individuals and effectively allocating them through loans for consumption or

investment purposes. These deposited savings are utilized by the bank to support

various financial activities, thereby putting the funds to productive use, and ensuring

optimal utilization.

5.5 GENERATION OF FUNDS

Banks mobilize funds by borrowing money from depositors and offering them an

interest rate. They then lend these funds to borrowers at a higher interest rate,
10
generating profit from the interest rate differential. This process allows banks to

efficiently allocate funds and facilitate borrowing and lending activities in the

economy.

5.6 SOURCES OF FUNDS

The United Bank Limited relies on various sources to generate funds, and the main ones

are as follows:

• Supervised Agricultural Credit Scheme.

• Deposits, which include Fixed Deposits, Savings Accounts, Current Accounts,

Mustaqbil Mehfooz A/C, Rozana Bachat A/C, among others.

• Loan Schemes, such as Production Loan Schemes and Development Loans.

• Crop Loan Insurance.

5.7 ALLOCATION OF FUNDS 11 11

• UBL Saiban Scheme: Housing finance solutions.

• UBL Advance Salary Scheme: Short-term loans.

• UBL Kisan Dost Scheme: Agricultural financing.

• UBL Premium Aamdani Certificate Scheme: Fixed-term deposit certificates.

• UBL Karobar Scheme: Financing for SMEs and entrepreneurs.

11
 CHAPTER NO 06
CRITICAL ANALYSIS

6.1 FINANCIAL STATEMENT ANALYSIS

Financial ratios indeed play a crucial role in interpreting a company's financial

statements. These ratios are calculated by dividing one quantity by another,

highlighting specific relationships between items on the balance sheet or income

statement. They provide a more insightful understanding of the financial data compared

to raw numbers alone. While there are numerous ratios that can be calculated, there are

fundamental ratios commonly used for analysis.

BALANCE SHEET

A bala nce sh eet is a fina ncial stateme nt that prese nts a snapsh ot of a busin ess's as sets,
1 1 1 1 1 1 1 1

liab ilities, and own er's equity at a speci fic point in t ime. It is usual ly pre pared at the
1 1 1 1 1 1

en d of a defi ned period, such as quarterly or annually. The balance sheet consists of
1 1

two columns, with the left column listing the company's assets.

12
Table 6.1: Balance Sheet of UBL for last 5 years

Years 2 018
1 2 019
1 20 20
1 2 021
1 202 2
1

Assets
Cash and balances 206813 256591 264727 291,300 158,697

Lending 33,942 20183 19959 51701 85296

Investment-gross 792,857 849,441 1,138,018 1,504,689 1,442,017

Advances-gross 776,272 702,951 609,307 728,286 1,013,767

Operating fixed assets 47,556 54,348 53,037 70,769 73,223

Other assets 98,976 85,497 52,715 61,665 104,506

Total assets-gross 1,956,417 1,969,011 2,137,763 2,708,409 2,877,507

Provision against non -

(60,336) (67,117) (79,028) (82,097) (91,930)
performing advances
Provision diminution (6482) (9,118) (9,344) (8,146) (26,823)

Total assets –net provision 1,889,599 1,892,775 2,049,392 2,618,166 2,758,753

Liabilities
Deposit and other accounts 1,366,060 1,467,063 1,640,212 1,750,944 1,838,367

Borrowing from financial

268,124 154,484 128,987 563,285 564,519
institution
Subordinate loans 9,000 10,000 10,000 10,000 10,000

Bills payable 27,249 22,927 29,734 26,793 36,474

other liabilities 67,896 69,232 56,386 62,502 100,373

Total liabilities 1,738,329 1,723,706 1,865,319 2,413,523 2,549,733

Net assets 151,270 169,069 184,073 204,643 209,020

Share Capital 12,242 12,242 12,242 12,242 12,242

Reserves 54,439 59,320 62,274 69,718 86,254

Unappropriated Profit 68,002 71,670 81,916 84,626 91,438

Equity-tier 134,683 143,232 156,432 166,586 189,934

Surplus on revaluation of
16,587 25,837 27,641 38,056 19,086
assets net of deferred tax
Total equity 151,270 169,069 184,073 204,643 209,020

Total liabilities & equity 1,889,599 1,892,775 2,049,392 2,618,166 2,758,753

Source; annual report 2022

13
INCOME STATEMENT

An inco me stat ement is one of the finan cial statem ents of a com pany. It sho ws the
1 1 1 1 1 1

com pany's reve nues and expe nses dur ing a partic ular per iod, typic ally quar terly or
1 1 1 1 1 1 1 1

annually.

Table 6.2: Income statement of UBL for last 5 years

Year 2018 2019 2020 2021 2022

Markup earned 113,198 153,676 152,003 147,974 250,679
-
Markup expensed -56,964 -91,902 -77,044 -76,216
147469
Net markup income 56,234 61,774 74,959 71,759 103,209
Fee & commission income 17,396 18,219 14,782 17,056 24,286
Capital gains & dividend
6,648 1,541 1,681 5,791 2,560
income

Other income 967 1,916 631 532 7,597

Total non-interest income 25,011 21,676 17,094 23,379 34,443

Gross income 81,246 83,451 92,054 95,138 137,652

Administrative & other charges -43,222 -40,860 -40,751 -43,832 -53,461

Profit before donations and

38,024 42,590 51,303 51,306 84,190
provisions

Donations -203 -129 -342 -134 -211

Provisions -12,854 -8,220 -16,768 955 -15,669

Profit before taxation 24,967 34,242 34,192 52,127 68,310

Taxation -9,741 -15,108 -13,294 -21,245 -36,247

Profit after taxation 15,226 19,134 20,899 30,882 32,063

Source: UBL Annual report 2022
11 11 11 11

14
RATIO ANALYSIS
Current Ratio:

the current ratio generally remained above 1 for all years, indicating that the company

had enough current assets to cover its short-term liabilities. The fluctuations in the ratio

may be attributed to changes in the company's current assets and liabilities during these

years.

Current Ratio= Current Assets/Current Liabilities

Table 6.3

Year 2018 2019 2020 2021 2022

Current 1,956,417 1,969,011 2,137,763 2,708,409 2,877,507

Assets

Current 1,738,329 1,723,706 1,865,319 2,413,523 2,549,733

Liabilities

Current 1.1243 1.1421 1.1461 1.1215 1.1283

Ratio

Source: UBL Annual statement 2022

• Assets Turnover:

In 2022, the asset turnover ratio significantly increased to 0.0489, signifying a

substantial improvement in the company's efficiency in utilizing its assets to generate

revenue. For every 1 Rupee of average total assets, the company generated

approximately 0.0489 in gross income during this year, indicating that it made

remarkable strides in optimizing its asset utilization, which could be attributed to

enhanced operational efficiency or strategic initiatives aimed at boosting revenue

generation from existing assets.

Formula: Total revenue/ average total assets

15
Table 6.4

Year 2018 2019 2020 2021 2022

Gross 81,246 83,451 92,054 95,138 137,652

Income

Average 1,922,216.5 1,953,006 2,014,586 2,663,288.5 2,818,080

Total

Assets

Ratio 0.0423 0.0428 0.0457 0.0357 0.0489

Source: UBL Annual statement 2022

• Debt to Asset Ratio:

In 2022, the debt-to-asset ratio increased to approximately 0.9242, indicating a slight

uptick in leverage compared to the previous year (2021). About 92.42% of the

company's total assets were financed through debt, signifying a higher reliance on

borrowed funds for asset financing.

Formula: Debt-to-Asset Ratio= Total Debt/Total Assets

Table 6.5

Year 2018 2019 2020 2021 2022

Total Debt 1,738,329 1,723,706 1,865,319 2,413,523 2,549,733

(Liabilities)

Total 1,889,599 1,892,775 2,049,392 2,618,166 2,758,753

Assets

Debt-to- 0.9197 0.9101 0.9093 0.7831 0.9242

Asset Ratio

Source: UBL Annual statement 2022

16
Net Profit Margin

A reasonably healthy net profit margin of approximately 23.29% in 2022

suggests that the company earned about 23.29 cents in profit for every dollar of

total revenue during the year, reflecting a solid level of profitability.

Formula= (Net Profit/Total Revenue) ×100

Table 6.6

Year 2018 2019 2020 2021 2022

Net Profit 15,226 19,134 20,899 30,882 32,063

T. Revenue 81,246 83,451 92,054 95,138 137,652

Ratio 18.74% 22.92% 22.70% 32.45% 23.29%

Source: UBL Annual statement 2022

Return On Investment

In 2022, the return on investment (ROI) ratio is approximately 1.1636%, which means

that the company earned about 1.1636 cents in profit for every dollar invested in its

total assets during the year. This indicates a relatively low return on investment,

suggesting that the company's assets were not generating high levels of profit compared

to their total value. While the ROI ratio shows a positive return, it's relatively modest.

Formula: (Net profit/Total Assets) x 100

Table 6.7

Year 2018 2019 2020 2021 2022

Net Profit 15,226 19,134 20,899 30,882 32,063

Total 1,889,599 1,892,775 2,049,392 2,618,166 2,758,753

Assets

ROI 0.8053% 1.0112% 1.0197% 1.1787% 1.1636%

Source: UBL Annual statement 2022

17
HORIZONTAL ANALYSIS 11

Horizontal analysis is a method used to analyze and compare financial information of

11 11 11 11 11 11

a company over different reporting periods. This analysis technique provides insights

into the company's performance and trends over time.

Table 6.8: Horizontal analysis of Balance sheet

Year 2018 2019 2020 2021 2022

Cash and balances with
treasury and other banks
Landings to financial
institutions
Investments - net
Advances - net
Operating fixed assets
Other assets
Total assets
Liabilities & Equity
Deposits & other accounts
116.80% 144.90% 149.50% 164.50% 89.60%
312.30% 185.70% 183.70% 475.70% 784.80%
72.00% 77.00% 103.40% 137.10% 129.60%
114.10% 101.40% 84.50% 103.00% 146.90%
102.90% 117.60% 114.80% 153.20% 158.50%
124.30% 107.40% 66.20% 77.50% 131.30%
92.90% 93.10% 100.80% 128.80% 135.70%
107.30% 115.30% 128.90% 137.60% 144.40%

Borrowings from financial

52.30% 30.10% 25.20% 109.90% 110.10%
institutions

Subordinated loans 100.00% 100.00% 100.00% 100.00% 100.00%

Bills payable 91.30% 76.80% 99.60% 89.80% 122.20%

Other liabilities 116.40% 118.70% 96.60% 107.10% 172.00%

Total liabilities 92.80% 92.00% 99.60% 128.80% 136.10%

Share capital 100.00% 100.00% 100.00% 100.00% 100.00%
Reserves 124.20% 135.30% 142.00% 159.00% 196.70%

Unappropriated profit 95.90% 101.10% 115.50% 119.30% 128.90%

Equity - Tier I 106.00% 112.80% 123.20% 131.20% 149.60%

Surplus on revaluation of
assets - net of deferred tax 51.30% 80.00% 85.60% 117.80% 59.10%

Total equity 95.00% 106.10% 115.50% 128.50% 131.20%

Source: UBL Annual report 2022

18
Horizontal Analysis of Profit and Loss Account

Table 6.9

Year 2018 2019 2020 2021 2022

Assets

Markup / return / interest

105.60% 143.30% 141.80% 138.00% 233.80%
earned

Fee, commission,
brokerage and exchange 120.00% 125.70% 102.00% 117.70% 167.50%
income

Capital gains & dividend

98.30% 22.80% 24.90% 85.60% 37.90%
income

Other income 106.90% 212.00% 69.80% 58.90% 840.40%

Total 106.80% 135.50% 130.70% 132.50% 220.40%

Markup / return / interest

112.20% 181.00% 151.70% 150.10% 290.40%
expensed

Operating expenses 119.90% 113.20% 113.50% 121.40% 148.20%

Provisions 524.70% 335.50% 684.50% -39.00% 639.60%

Taxation 66.10% 102.50% 90.20% 144.10% 245.90%
Total 118.00% 149.90% 142.20% 134.80% 242.90%

Profit after taxation 60.50% 76.00% 83.00% 122.60% 127.30%

Source: UBL Annual statement 2022

19
VERTICAL ANALYSIS

Vertical analysis is a method of financial statement analysis that expresses each line

item as a percentage of a base figure, providing a relative measure of their importance

within the statement.

Table 6.10: Vertical analysis of Balance sheet

Year 2018 2019 2020 2021 2022

Assets
balances with treasury and
10.90% 13.60% 12.90% 11.10% 5.80%
other banks
Landings to financial
1.80% 1.10% 1.00% 2.00% 3.10%
institutions
Investments - net 41.60% 44.40% 55.10% 57.20% 51.30%
Advances - net 37.90% 33.60% 25.90% 24.70% 33.40%
Operating fixed assets 2.50% 2.90% 2.60% 2.70% 2.70%
Other assets 5.20% 4.50% 2.60% 2.40% 3.80%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00%
Liabilities & Equity
Deposits & other accounts 72.30% 77.50% 80.00% 66.90% 66.60%
Borrowings 14.20% 8.20% 6.30% 21.50% 20.50%
Subordinated loans 0.50% 0.50% 0.50% 0.40% 0.40%
Bills payable 1.40% 1.20% 1.50% 1.00% 1.30%
Other liabilities 3.60% 3.70% 2.80% 2.40% 3.60%
Total liabilities 92.00% 91.10% 91.00% 92.20% 92.40%
Share capital 0.60% 0.60% 0.60% 0.50% 0.40%
Reserves 2.90% 3.10% 3.00% 2.70% 3.10%
Unappropriated profit 3.60% 3.80% 4.00% 3.20% 3.30%
Equity - Tier I 7.10% 7.60% 7.60% 6.40% 6.90%

Surplus on revaluation of
0.90% 1.40% 1.30% 1.50% 0.70%
assets - net of deferred tax

Total equity 8.00% 8.90% 9.00% 7.80% 7.60%

Source: UBL Annual report 2022

20
Vertical analysis of Profit and Loss

Table 6.11

Year 2018 2019 2020 2021 2022

Markup / return / interest

81.90% 87.60% 89.90% 86.40% 87.90%
earned

Fee, commission,
brokerage and exchange 12.60% 10.40% 8.70% 10.00% 8.50%
income
Capital gains & dividend
4.80% 0.90% 1.00% 3.40% 0.90%
income
Other income 0.70% 1.10% 0.40% 0.30% 2.70%
Total 100.00% 100.00% 100.00% 100.00% 100.00%
Markup expensed 41.20% 52.40% 45.60% 44.50% 51.70%
Operating expenses 31.40% 23.40% 24.30% 25.70% 18.80%

Provisions 9.30% 4.70% 9.90% -0.60% 5.50%

Taxation 7.00% 8.60% 7.90% 12.40% 12.70%
Total expense - percentage
89.00% 89.10% 87.60% 82.00% 88.80%
of total income

Profit after taxation 11.00% 10.90% 12.40% 18.00% 11.20%

Total 100.00% 100.00% 100.00% 100.00% 100.00%

Source: UBL Annual report 2022

21
6.2 UNITED BANK LIMITED ANALYSIS WITH REFERENCE
TO THE INDUSTRIES LISTED ON STOCK EXCHANGE
Table 6.12

BANKS 2018 2019 2020 2021 2022

UBL 1,889,599 1,892,775 2,049,392 2,618,166 2,758,753

KMBL 311,530 231,732 356,164 67,273 83,173

HMBL 564,040 242,020 765,334 56,232 31,583

BOP 9034665 498467 8653567 3924486 678258

Source: www.sbp.org.pk

6.3 ORGANIZATION BEHAVIOUR IN ALLOCATION OF

VAROIUS FUNDS TO DIFFERENT ASSETS
Table 6.13

UBL KMBL HMBL BOP BAHL

DEPOSITS 1,838,367 58136657 5433457 454372 4523

ADVANCES 1,013,767 2453 2273 2072 2134

PROFIT 32,063 1523 1343 1373 1492

LIABILITIES 2,549,733 6282 5963 5853 5863

Source: UBL FY report 2022

22
6.4 FUTURE PROSPECTS OF THE UNITED BANK LIMITED

Digital Transformation: UBL is poised to continue its digital journey by enhancing

online banking services and investing in cutting-edge technology. This will make

banking more accessible and convenient for customers, especially in the digital age.

Branch Expansion: The bank plans to expand its branch network to reach more

communities across Pakistan. This expansion will facilitate increased access to banking

services for people in remote areas.

International Presence: UBL aims to strengthen its international presence by

exploring new markets and expanding its global operations. This will create

opportunities for cross-border trade and international banking services.

Customer-Centric Approach: UBL is committed to improving its customer service

and offering innovative financial products to meet the evolving needs of its customers.

This customer-centric approach will enhance customer satisfaction and loyalty.

Sustainability Initiatives: The bank recognizes the importance of sustainability and

plans to incorporate more eco-friendly practices into its operations. This includes

investments in renewable energy and environmentally responsible banking practices.

Partnerships and Collaborations: UBL will continue to seek strategic partnerships

and collaborations with fintech companies and other organizations to stay at the

forefront of the financial industry.

Employee Development: The bank will invest in the training and development of its

employees to ensure they have the skills and knowledge required to provide top-notch

service to customers.

23
 CHAPTER 07
SHORT FALLS/WEAKNESSES OF FINANCE
DEPARTMENT

SHORT FAL L WEAKNESSES OF FINANCE DEPARTMENT

1

• High ratio of long-term advances may pose challenges in recovery.

• Lack of readily liquid long-term advances to meet short-term liabilities.

• Investments with long maturities may lead to unavailability of cash and lower

than expected returns.

• Unequal attention given to customers with small account balances compared to

those with large amounts.

• Lengthy procedures for loan advancements.

• Centralized decision-making limits branch-level initiative in providing

financing.

• Low promotion activity leading to limited awareness of UBL's products.

• Lack of innovation in introducing new products already existing in the market.

• Low employee salaries compared to other private banks.

• Low motivation among UBL employees.

• Reactive approach to market situations, slow to take proactive measures.

• Lack of specialized skills due to job rotation policy, requiring a focus on

individual service abilities.

• High administrative expenses as a percentage of markup revenue.

• Non-Performing Assets (NPAs) affecting financial losses for the bank.

• Unclear cash flow picture for businesses.

• Meaningless or inaccurate financial statements.

24
 • Loss of market share to competition or unawareness of market position.

• Inefficient use or loss of assets, including people, capital equipment, intellectual

property, and inventory.

During my internship, I observed that certain employees at the United Bank Limited

appeared to be experiencing stress. In my view, an effective approach to workload

management would involve assigning tasks based on each individual's position and

abilities. This would prevent employees from multitasking, which often leads to longer

processing times and potential performance issues.

Additionally, the lack of adequate workspace is inconvenient for both the employees

and the clients. In my opinion, it is crucial for UBL to prioritize resolving its poor

loans in order to enhance profitability. Addressing this issue could lead to an

improvement in their profitability ratio.

Based on my analysis, UBL relies on its operating profits as of 2022. While I don't

recommend indiscriminate expense cuts, I suggest conducting a thorough review of

expenses. Encouraging the opening of MBL accounts might prove beneficial,

considering the limited number of available banks in society.

25
 CHAPTER 08
CONCLUSION AND RECOMMENDATION

8.1 CONCLUSIONS
UBL has demonstrated dynamism throughout its existence, adapting to changing needs

and opportunities in the banking industry and serving the evolving requirements of the

economy, industry, commerce, and individuals. The bank takes pride in its

experienced and professional staff, who are dedicated to providing excellent service.

However, there is a need for better understanding between customers and the bank's

"YOU" attitude.

Sometimes, customers may have unrealistic expectations and fail to recognize the

responsibility and dedication of the employees. Implementing guidelines for

customers upon their arrival can streamline processes, save time, and foster a more

positive and productive environment for both customers and staff.

8.2 RECOMMENDATIONS
Based on the review and analysis conducted, the following recommendations and

suggestions are proposed for UBL:

• Embrace mobile banking: UBL should invest in mobile banking

technologies to allow customers to perform various banking activities

through their mobile phones or computers. This will help the bank adapt to

the changing banking landscape and meet the evolving needs of customers.

• Adopt a proactive approach: UBL management should take a proactive

approach by introducing innovative ideas and staying ahead of competitors,

rather than simply reacting to market developments. This will help the bank

stay competitive and drive its growth.

26
 • Provide clear instructions to account holders: The bank should ensure that

both new and existing account holders are provided with clear instructions

on how to deposit and withdraw money. This will save time for customers

and improve overall efficiency.

• Enhance marketing and communication efforts: UBL should invest in

advertising through television, press coverage, direct mail, window

displays, and other mediums to create awareness about its services. Utilizing

existing customers as brand advocates by including informational leaflets in

account statements can also be effective.

• Improve customer relationship management: The bank should focus on

building strong relationships with customers by adopting a consumer-

friendly attitude and providing efficient services. This will help foster

loyalty and encourage customers to recommend UBL to others

27
SOURCES AND REFRENCES USED

• United Bank website: www.ubldigital.com

• United Bank Limited annual report (2018) retrieved from www.ubldigital.com

• United Bank Limited annual report (2021) retrieved from www.ubldigital.com

• United Bank Limited annual report (2022) retrieved from www.ubldigital.com

• State bank of Pakistan website: http://www.sbp.org.pk

28
29
 < 1% match (Internet from 21-Oct-2022) https://Economictimes.Indiatimes.Com/life-
insurance-corporation-ofindia/balancesheet/companyid-5050.cms

< 1% match (Internet from 19-Mar-2023) https://www.lendio.com/blog/income-

statement-vs-balance-sheet

< 1% match (Internet from 05-Aug-2020)

https://www.moneycontrol.com/financials/polson/results/half-yearly/P08/1

< 1% match (Internet from 24-May-2023)

https://ageconsearch.umn.edu/nanna/record/280610/files/rdBCPStatisticalReport2011.pd
f? registerDownload=1&version=1&withMetadata=0&withWatermark=0

< 1% match (Internet from 20-Sep-2012)

http://www.premierfunds.co.uk/library/PPCP/Factsheets/PPCP_Factsheet_CapitalBuilder.p
df

< 1% match (Internet from 21-Sep-2018)

http://www.sbp.org.pk/stats/Balance/2017/AlliedBankLtd.pdf

< 1% match (Internet from 13-Jan-2023)

https://www.sec.gov/Archives/edgar/data/1418135/000110465918044357/a1816509_3e
x99d2.htm

CHAPTER # 1 INTRODUCTION 1.1 INTRODUCTION Internships have become a common

practice for individuals seeking work experience in various organizations, including
businesses, government institutions, and semi- government organizations. United Bank
Limited (UBL) has been chosen for this internship due to its extensive branch network within
Pakistan and globally. UBL offers a wide range of services and continuously adopts new
innovations and products in the banking industry. The banking sector's engagement in
industry, trade, and commerce renders it a pivotal instrument for comprehensive national
development Amid technological advancements and intensifying competition, the banking
sector is undergoing substantial transformations, introducing fresh challenges. In the
province of KPK, banks play a pivotal role, given the substantial influx of foreign remittances
that not only contribute to the province but also bolster the national economy. 1.2
OBJECTIVE OF THE STUDYIN ORGANIZATION The purpose of this study within the
organization is to achieve multiple objectives. The reasons for conducting this study go
beyond just meeting a requirement; they are focused on enhancing my analytical and
practical abilities. The key objectives include: 1. To fulfill the partial requirement of BS
Commerce. 2. To observe the application of learned concepts in the work place. 3. To
enhance communication skill and get first hand work experience. OVERVIEW OF THE
ORGANIZATION 2.1 BRIEF HISTORY United Bank Limited (UBL) has a rich history dating back
to its establishment in June 1959It officially began operations on November 7, 1959, with its
first branch in Karachi. UBL quickly expanded internationally, opening branches in London,
Bradford, Birmingham, Dubai, and Abu Dhabi. The bank was a pioneer in computerized
banking, offering automated services for deposits. UBL has experienced significant growth,
becoming one of the top three banks in Pakistan in terms of deposits and branch coverage. It
operates through four main business segments, providing a wide range of services. UBL's
continuous growth and diverse offerings make it a prominent player in the Pakistani banking
sector. 2.2 NATURE OF THE ORGANIZATION UBL covers wide range of services and products.
UBL offers various deposit accounts in both local and foreign currencies, catering to the need
of individual and corporate clients. The bank facilitates remittance services, allowing for the
swift transfer of funds domestically and internationally. 2.3
BUSINESS VOLUME Table 2.1 Business volume Items 2018 2019 2020 2021 2022 Balances
206813 256591 264727 291,300 158,697 Lendings 33,942 20183 19959 51701 85296
Investments 792,857 849,441 1,138,018 1,504,689 1,442,017 Advances 776,272 702,951
609,307 728,286 1,013,767 fixed assets 47,556 54,348 53,037 70,769 73,223 Other assets
98,976 85,497 52,715 61,665 104,506 Total assets 1,956,417 1,969,011 2,137,763
2,708,409
2,877,507 Source: UBL annual report 2022 2.4 NUMBER OF EMPLOYEES Table 2.2 Years
2018

30