UBL will conclude its subsidiary, United Executors and Trustees Company Limited, operations and companies. The Board of Directors has taken the decision at a recent meeting.
The company is inactive. According to the notification given to the Pakistan Stock Exchange, the closure of this business would therefore have no impact on UBL’s global profitability.
UBL On the Closure of Subsidiaries
The bank has continued to reduce its operations through subsidiaries and overseas branches.
It has surrendered the banking license of its subsidiary, UBL Tanzania, to the central bank of Tanzania as part of the sale-purchase deal of asset liabilities with the local bank, Exim Bank of Tanzania.
The bank is working to conclude its deal of assets transfer to the Exim Bank of Tanzania.
The bank had divested 25% shareholding in Oman’s money transfer and exchange company, Oman United Exchange Company Limited, as well. The shares were purchased by a local Omani Business Group.
Earlier, United Bank Limited surrendered its operating license of banking and financial services and closed off its branch in New York on January 28, 2019.
The bank continued to face a tough business environment in Gulf countries due to the slowdown of various economies. UBL International’s NPLs increased to $ 319 million by 2019-end as compared with $293 million at the end of 2018.
The bank, however, improved its financial performance in 2019 in the domestic market with profit growth increasing by 25% year-on-year to stand at Rs. 19.1 billion.