United Bank Limited Capital Adequacy And Liquidity Disclosures .

UNITED BANK LIMITED CAPITAL ADEQUACY AND LIQUIDITY DISCLOSURES - UNCONSOLIDATED AS AT DECEMBER 31, 2020 1.2 Capital Structure (Contd.) Step 2 Balance Sheet as per published financial statements Under regulatory scope of consolidation As at Dec 31, 2020 As at Dec 31, 2020 --------- (Rupees in '000) --------- Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments of which: Non-significant capital investments in capital of other financial institutions exceeding 10% threshold of which: significant capital investments in financial sector entities exceeding regulatory threshold of which: Mutual Funds exceeding regulatory threshold of which: reciprocal crossholding of capital instrument of which: Investment in own shares/ CET1 instruments Advances shortfall in provisions/ excess of total EL amount over eligible provisions under IRB 250,838,052 13,888,765 19,959,132 1,128,674,494 - 250,838,052 13,888,765 19,959,132 1,128,674,494 - 742,639 530,279,496 - 742,639 530,279,496 - general provisions reflected in Tier 2 capital Fixed Assets of which: Goodwill of which: Intangibles Deferred Tax Assets of which: DTAs excluding those arising from temporary differences of which: DTAs arising from temporary differences exceeding regulatory threshold Other assets of which: Defined-benefit pension fund net assets Total assets 6,656,371 53,036,914 1,886,394 6,399,267 6,399,267 46,507,193 2,049,583,313 6,656,371 53,036,914 1,886,394 6,399,267 6,399,267 46,507,193 2,049,583,313 Liabilities & Equity Bills payable Borrowings Deposits and other accounts Sub-ordinated loans of which: eligible for inclusion in AT1 of which: eligible for inclusion in Tier 2 Liabilities against assets subject to finance lease Deferred tax liabilities of which: DTLs related to goodwill of which: DTLs related to intangible assets of which: DTLs related to defined pension fund net assets of which: other deferred tax liabilities Other liabilities Total liabilities 29,733,813 128,987,415 1,640,211,901 10,000,000 10,000,000 56,577,277 1,865,510,406 29,733,813 128,987,415 1,640,211,901 10,000,000 10,000,000 56,577,277 1,865,510,406 Share capital of which: amount eligible for CET1 of which: amount eligible for AT1 Reserves of which: portion eligible for inclusion in CET1 of which: portion eligible for inclusion in Tier 2 Unappropriated profit/ (losses) Minority Interest of which: portion eligible for inclusion in CET1 of which: portion eligible for inclusion in AT1 of which: portion eligible for inclusion in Tier 2 Surplus on revaluation of assets of which: Revaluation reserves on Property of which: Unrealized Gains/Losses on AFS In case of Deficit on revaluation (deduction from CET1) Total liabilities and equity 12,241,797 12,241,797 62,274,068 35,265,603 27,008,465 81,916,463 27,640,579 24,984,734 2,654,932 2,049,583,313 12,241,797 12,241,797 62,274,068 35,265,603 27,008,465 81,916,463 27,640,579 24,984,734 2,654,932 2,049,583,313

UNITED BANK LIMITED CAPITAL ADEQUACY AND LIQUIDITY DISCLOSURES - UNCONSOLIDATED AS AT DECEMBER 31, 2020 1.2 Capital Structure (Contd.) Step 3 Component of regulatory capital reported by bank (Rupees in '000) Common Equity Tier 1 capital (CET1): Instruments and reserves 1 2 3 4 5 6 7 Fully Paid-up Capital/ Capital deposited with SBP Balance in Share Premium Account Reserve for issue of Bonus Shares General/ Statutory Reserves Gain/(Losses) on derivatives held as Cash Flow Hedge Unappropriated/unremitted profits/(losses) Minority Interests arising from CET1 capital instruments issued to third party by consolidated bank subsidiaries (amount allowed in CET1 capital of the consolidation group) 8 CET 1 before Regulatory Adjustments 12,241,797 35,265,603 81,916,463 129,423,863 Common Equity Tier 1 capital: Regulatory adjustments 9 10 11 12 13 14 15 16 17 18 19 20 Goodwill (net of related deferred tax liability) All other intangibles (net of any associated deferred tax liability) Shortfall of provisions against classified assets Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability) Defined-benefit pension fund net assets Reciprocal cross holdings in CET1 capital instruments Cash flow hedge reserve Investment in own shares/ CET1 instruments Securitization gain on sale Capital shortfall of regulated subsidiaries Deficit on account of revaluation from bank's holdings of property/ AFS Investments in the capital instruments of banking, financial and insurance entities that are outside the scope of regulatory consolidation, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) 21 Significant investments in the capital instruments issued by banking, financial and insurance entities that are outside the scope of regulatory consolidation (amount above 10% threshold) 22 Deferred Tax Assets arising from temporary differences (amount above 10% threshold, net of related tax liability) 23 Amount exceeding 15% threshold 24 of which: significant investments in the common stocks of financial entities 25 of which: deferred tax assets arising from temporary differences 26 National specific regulatory adjustments applied to CET1 capital 27 Investment in TFCs of other banks exceeding the prescribed limit 28 Any other deduction specified by SBP (mention details) 29 Regulatory adjustment applied to CET1 due to insufficient AT1 and Tier 2 to cover deductions 30 Total regulatory adjustments applied to CET1 (sum of 9 to 29) Common Equity Tier 1 1,886,394 677,409 - 2,563,803 126,860,060 Additional Tier 1 (AT 1) Capital 31 Qualifying Additional Tier-1 instruments plus any related share premium 32 of which: Classified as equity 33 of which: Classified as liabilities 34 Additional Tier-1 capital instruments issued by consolidated subsidiaries and held by third parties (amount allowed in group AT 1) 35 of which: instrument issued by subsidiaries subject to phase out 36 AT1 before regulatory adjustments 10,000,000 10,000,000 10,000,000

UNITED BANK LIMITED CAPITAL ADEQUACY AND LIQUIDITY DISCLOSURES - UNCONSOLIDATED AS AT DECEMBER 31, 2020 Component of regulatory capital reported by bank (Rupees in '000) Additional Tier 1 Capital: regulatory adjustments 37 38 39 40 Investment in mutual funds exceeding the prescribed limit (SBP specific adjustment) Investment in own AT1 capital instruments Reciprocal cross holdings in Additional Tier 1 capital instruments Investments in the capital instruments of banking, financial and insurance entities that are outside the scope of regulatory consolidation, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) 41 Significant investments in the capital instruments issued by banking, financial and insurance entities that are outside the scope of regulatory consolidation 42 Portion of deduction applied 50:50 to core capital and supplementary capital based on pre-Basel III treatment which, during transitional period, remain subject to deduction from tier-1 capital 43 Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover deductions 44 Total of Regulatory Adjustment applied to AT1 capital 45 Additional Tier 1 capital 46 Additional Tier 1 capital recognized for capital adequacy Tier 1 Capital (CET1 admissible AT1) Tier 2 Capital 47 Qualifying Tier 2 capital instruments under Basel III 48 Capital instruments subject to phase out arrangement from tier 2 (Pre-Basel III instruments) 49 Tier 2 capital instruments issued to third party by consolidated subsidiaries (amount allowed in group tier 2) 50 of which: instruments issued by subsidiaries subject to phase out 51 General Provisions or general reserves for loan losses-up to maximum of 1.25% of Credit Risk Weighted Assets 52 Revaluation Reserves eligible for Tier 2 53 of which: portion pertaining to Property 54 of which: portion pertaining to AFS securities 55 Foreign Exchange Translation Reserves 56 Undisclosed/Other Reserves (if any) 57 T2 before regulatory adjustments Tier 2 Capital: regulatory adjustments 58 Portion of deduction applied 50:50 to core capital and supplementary capital based on pre-Basel III treatment which, during transitional period, remain subject to deduction from tier-2 capital 59 Reciprocal cross holdings in Tier 2 instruments 60 Investment in own Tier 2 capital instrument 61 Investments in the capital instruments of banking, financial and insurance entities that are outside the scope of regulatory consolidation, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) 62 Significant investments in the capital instruments issued by banking, financial and insurance entities that are outside the scope of regulatory consolidation 63 Amount of Regulatory Adjustment applied to T2 capital 64 Tier 2 capital (T2) 65 Tier 2 capital recognized for capital adequacy 66 Excess Additional Tier 1 capital recognized in Tier 2 capital 67 Total Tier 2 capital admissible for capital adequacy TOTAL CAPITAL (T1 admissible T2) 65,230 - 65,230 9,934,770 9,934,770 136,794,830 6,656,371 27,639,666 24,984,734 2,654,932 27,008,465 61,304,502 - 360,000 360,000 60,944,502 45,102,462 45,102,462 181,897,292

UNITED BANK LIMITED CAPITAL ADEQUACY AND LIQUIDITY DISCLOSURES - UNCONSOLIDATED AS AT DECEMBER 31, 2020 1.3 Main Features of Regulatory Capital Instruments 1.3.1 Equity Instrument Common Shares United Bank Limited On PSX “UBL” and on Bloomberg “UBLS”. 17 18 19 20 Main Features Issuer Unique identifier (eg PSX Symbol or Bloomberg identifier etc.) Governing law(s) of the instrument Regulatory treatment Transitional Basel III rules Post-transitional Basel III rules Eligible at solo/ group/ group&solo Instrument type Amount recognized in regulatory capital (Currency in PKR thousands, as of reporting date) Par value of instrument Accounting classification Original date of issuance Perpetual or dated Original maturity date Issuer call subject to prior supervisory approval Optional call date, contingent call dates and redemption amount Subsequent call dates, if applicable Coupons / dividends Fixed or floating dividend/ coupon Coupon rate and any related index/ benchmark Existence of a dividend stopper Fully discretionary, partially discretionary or mandatory 21 22 23 24 25 26 27 28 29 Existence of step up or other incentive to redeem Noncumulative or cumulative Convertible or non-convertible If convertible, conversion trigger (s) If convertible, fully or partially If convertible, conversion rate If convertible, mandatory or optional conversion If convertible, specify instrument type convertible into If convertible, specify issuer of instrument it converts into No Not applicable Non Convertible Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable 30 31 32 33 34 Write-down feature If write-down, write-down trigger(s) If write-down, full or partial If write-down, permanent or temporary If temporary write-down, description of write-up mechanism Position in subordination hierarchy in liquidation (specify instrument type immediately senior to instrument Not applicable Not applicable Not applicable Not applicable Not applicable Non-compliant transitioned features If yes, specify non-compliant features Not applicable Not applicable 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 35 36 37 Relevant Capital Market Laws Common Equity Tier 1 Common Equity Tier 1 Group & Standalone Ordinary Shares 12,241,797 Rs 10 each Shareholders' equity 1959 Perpetual No maturity Not applicable Not applicable Not applicable Not applicable Not applicable No Fully discretionary Common equity (ranks after all creditors including depositors)

UNITED BANK LIMITED CAPITAL ADEQUACY AND LIQUIDITY DISCLOSURES - UNCONSOLIDATED AS AT DECEMBER 31, 2020 1.3.2 Debt Instrument Main Features Debt Instruments 1 Issuer United Bank Limited 2 Unique identifier (eg PSX Symbol or Bloomberg identifier etc.) On PSX “UBL” and on Bloomberg “UBLS”. 3 Governing law(s) of the instrument Regulatory treatment Transitional Basel III rules Post-transitional Basel III rules Eligible at solo/ group/ group&solo Instrument type Amount recognized in regulatory capital (Currency in PKR thousands, as of reporting date) Par value of instrument Accounting classification Original date of issuance Perpetual or dated Original maturity date Issuer call subject to prior supervisory approval Laws Applicable in Pakistan 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Optional call date, contingent call dates and redemption amount Subsequent call dates, if applicable Coupons / dividends Fixed or floating dividend/ coupon Coupon rate and any related index/ benchmark Existence of a dividend stopper Fully discretionary, partially discretionary or mandatory Existence of step up or other incentive to redeem Non-cumulative or cumulative Convertible or non-convertible Additional Tier 1 Additional Tier 1 Group & Standalone Term Finance Certificates 10,000,000 Rs 5,000 and multiples thereof Subordinated Debt 29-Jan-19 Perpetual No maturity Yes Any time after 5 years from the Issue Date. Redemption amount shall be the face value of the TFCs to be called plus coupon/mark up accrued from and including the last Coupon Payment Date up to but excluding the Call Option Date. Not applicable Floating 3-Month KIBOR (Ask Side) 1.55% Yes Fully discretionary No Non-cumulative Convertible 24 If convertible, conversion trigger (s) The TFCs are subject to the the loss absorbency clause as stipulated in the Basel III guidelines under which the TFCs shall, if so directed by the SBP, be permanently converted into ordinary shares upon: (i) the CET 1 Trigger Event; (ii) the Point of No Viability (PONV) Event; or (iii) failure by the Issuer to comply with the Lock-In Clause or the Non-Cumulative Feature of the TFCs ("Lock-In Event") . 25 If convertible, fully or partially To be determined in case of trigger event, at the discretion of the SBP, with a maximum cap of 59,000,000 ordinary shares 26 27 28 29 30 If convertible, conversion rate If convertible, mandatory or optional conversion If convertible, specify instrument type convertible into If convertible, specify issuer of instrument it converts into Write-down feature To be determined in case of trigger event (s) Mandatory Ordinary shares United Bank Limited Yes 31 If write-down, write-down trigger(s) The TFCs are subject to the the loss absorbency clause as stipulated in the Basel III guidelines under which the TFCs shall, if so directed by the SBP, be written off upon: (i) the PONV Trigger Event: (ii) the CET 1 Trigger Event; (iii) the LockIn Event; or (iv) if it is not possible to convert the TFCs into ordinary shares upon the CET 1 Trigger Event. 32 If write-down, full or partial 33 34 If write-down, permanent or temporary If temporary write-down, description of write-up mechanism 35 Position in subordination hierarchy in liquidation (specify instrument type immediately senior to instrument 36 37 Non-compliant transitioned features If yes, specify non-compliant features To be determined in case of trigger event, at the discretion of the SBP Permanent Not applicable Subordinated to all other indebtedness of the Bank, including depositors and general creditors, but senior to the claims of ordinary shareholders Not applicable Not applicable

UNITED BANK LIMITED CAPITAL ADEQUACY AND LIQUIDITY DISCLOSURES - UNCONSOLIDATED AS AT DECEMBER 31, 2020 1.4 Risk Weighted Assets Capital Requirements Risk Weighted Assets 2020 2019 2020 2019 ------------------ (Rupees in '000) ------------------Credit Risk On-Balance sheet Sovereign Public Sector entities Banks Corporate Retail Residential Mortgages Past Due loans Listed equity investments Unlisted equity investments Commercial Entity Operating Fixed Assets Significant investment Other assets Off-Balance sheet Non-market related Market related Market Risk Interest rate risk Equity position risk Foreign Exchange risk Operational Risk Capital adequacy ratio Total eligible regulatory capital held Total risk weighted assets CET1 to total RWA Tier-1 capital to total RWA Total capital to total RWA 11,088,413 383,591 3,096,220 18,005,943 3,940,154 170,767 1,214,135 262,952 96,732 65,622 5,115,052 3,256,980 1,008,661 47,705,222 10,618,971 929,549 3,810,791 24,326,800 3,910,377 165,255 1,488,582 328,692 89,263 65,622 5,239,684 2,482,204 2,722,487 56,178,277 110,884,138 3,835,907 30,962,195 180,059,441 39,401,538 1,707,667 12,141,346 2,629,515 967,322 656,223 51,150,520 32,569,795 10,086,606 477,052,213 106,189,715 9,295,493 38,107,910 243,268,005 39,103,774 1,652,547 14,885,818 3,286,917 892,627 656,223 52,396,839 24,822,040 27,224,866 561,782,774 5,304,649 241,094 5,545,744 7,542,622 448,129 7,990,751 53,046,494 2,410,943 55,457,437 75,426,220 4,481,292 79,907,512 2,403,275 1,753,336 198,736 4,355,347 1,399,812 2,268,820 218,028 3,886,660 30,040,938 21,916,700 2,484,200 54,441,838 17,497,650 28,360,250 2,725,348 48,583,248 12,609,168 70,215,481 11,753,558 79,809,246 157,614,605 744,566,093 146,919,473 837,193,007 181,897,292 744,566,093 17.04% 18.37% 24.43% 158,582,629 837,193,007 13.72% 14.89% 18.94%

UNITED BANK LIMITED CAPITAL ADEQUACY AND LIQUIDITY DISCLOSURES - UNCONSOLIDATED AS AT DECEMBER 31, 2020 1.5 Credit risk - General disclosures The Bank follows the Standardized Approach for its credit risk exposures, which sets out fixed risk weights corresponding to external credit ratings or type of exposure, whichever is applicable. Under the Standardized Approach, the capital requirement is based on the credit rating assigned to counterparties by External Credit Assessment Institutions (ECAIs) duly recognized by the SBP. The Bank selects particular ECAIs for each type of exposure. The Bank utilizes the credit ratings assigned by Pakistan Credit Rating Agency (PACRA), Japan Credit Rating Company Limited – Vital Information Systems (JCR-VIS), Fitch, Moody’s and Standard & Poors (S & P). Types of exposure and ECAIs used FITCH P P P - Corporates Banks Sovereigns Public sector enterprises Moody's P P P - S&P P P P - PACRA P P P JCR-VIS P P P Mapping to SBP Rating Grades For all exposures, the selected ratings are translated to the standard rating grades given by the SBP. The mapping tables used for converting ECAI ratings to SBP rating grades are given below: Long Term Rating Grades mapping Fitch Moody’s S&P PACRA JCR-VIS AAA AA AA AAA A ABBB BBB BBBBB BB BBB B BCCC and below Aaa Aa1 Aa2 Aa3 A1 A2 A3 Baa1 Baa2 Baa3 Ba1 Ba2 Ba3 B1 B2 B3 Caa1 and below AAA AA AA AAA A ABBB BBB BBBBB BB BBB B BCCC and below AAA AA AA AAA A ABBB BBB BBBBB BB BBB B BCCC and below AAA AA AA AAA A ABBB BBB BBBBB BB BBB B BCCC and below Moody’s P-1 P-1 P-2 P-3 Others S&P A-1 A-1 A-2 A-3 Others PACRA A-1 A-1 A-2 A-3 Others JCR-VIS A-1 A-1 A-2 A-3 Others SBP Rating grade 1 2 3 4 5 6 Short Term R

UNITED BANK LIMITED CAPITAL ADEQUACY AND LIQUIDITY DISCLOSURES - UNCONSOLIDATED AS AT DECEMBER 31, 2020 1.1 Capital Adequacy Ratio (CAR) disclosure: 2020 2019 Amount Amount Common Equity Tier 1 capital (CET1): Instruments and reserves 1 Fully Paid-up Capital/ Capital deposited with SBP 12,241,797 2 Balance in Share Premium Account -