Notes to and forming part of the Unconsolidated Financial Statements

For the year ended December 31, 2018

10.4.1 General provision represents provision amounting to Rs. 303.132 million (December 31, 2017: Rs. 247.323 million) against
consumer finance portfolio as required by the Prudential Regulations issued by the SBP and Rs. 4,139.453 million
(December 31, 2017: Rs. 2,630.143 million) pertaining to overseas advances to meet the requirements of the regulatory
authorities of the respective countries in which the overseas branches operate and on account of adoption of IFRS 9, as
explained in note 5.1.2. General provision also includes Rs. Nil (December 31, 2017: Rs. 328.700 million) which is based
on regulatory instructions. Further, the Bank carries provision of Rs. Nil (December 31, 2017: Rs. 49.088 million) as a
matter of prudence based on management estimates.

10.4.2 The Bank has availed the benefit of Forced Sale Value (FSV) of certain mortgaged properties held as collateral against non-
performing advances as allowed under BSD Circular 1 of 2011. Had the benefit under the said circular not been taken by
the Bank, the specific provision against non-performing advances would have been higher by Rs. 20.009 million (December
31, 2017: Rs. 24.540 million). The FSV benefit availed is not available for the distribution of cash or stock dividend to
shareholders.

10.4.3 Particulars of provision against advances

2018 2017
Specific General Total Specific General Total
------------------------------------------------ (Rupees in '000) ------------------------------------------------

In local currency 25,749,531 303,132 26,052,663 25,185,167 296,411 25,481,578

In foreign currencies 30,143,494 4,139,453 34,282,947 14,256,443 2,958,843 17,215,286
55,893,025 4,442,585 60,335,610 39,441,610 3,255,254 42,696,864

Note 2018 2017

10.5 Particulars of write-offs ------- (Rupees in '000) -------

10.5.1 Against provisions 10.4 394,108 813,300

Directly charged to profit and loss account 76,056 92,992
470,164 906,292

10.5.2 Domestic

- Write-offs of Rs. 500,000 and above 10.6 14,851 607,829

- Write-offs of below Rs. 500,000 128,868 275,139
143,719 882,968
Overseas 326,445 23,324
470,164 906,292

10.6 Details of loan write-offs of Rs. 500,000 and above

In terms of sub-section (3) of Section 33A of the Banking Companies Ordinance, 1962, the statement in respect of written
off loans or any other financial relief of five hundred thousand rupees or above allowed to a person during the year ended
December 31, 2018 is given in annexure I to the unconsolidated financial statements (except in case of overseas branches
write-offs which is restricted by overseas regulatory authorities). This includes amounts charged off without prejudice to the
Bank's right to recovery.

10.7 Information related to Islamic financing and related assets is given in annexure II and is an integral part of these
unconsolidated financial statements.

Note 2018 2017

11. FIXED ASSETS ------- (Rupees in '000) -------

Capital work-in-progress 11.1 944,233 4,410,426

Property and equipment 11.2 44,854,866 40,797,947
45,799,099 45,208,373
11.1 Capital work-in-progress

Civil works 585,087 3,662,319

Equipment 359,146 748,107
944,233 4,410,426

100 United Bank Limited