UBL is set to wind up the operations and businesses of its subsidiary, United Executors and Trustees Company Limited.
The decision was taken by the board of directors in a recent meeting.
The company is inactive. Hence, winding up of this company will not have any impact on the overall profitability of UBL, according to the notification issued to Pakistan Stock Exchange.
The subsidiary was set up in 2010. It was carrying assets worth of Rs. 128 million as per its financial report.
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.
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