<p></p><ul><li><span style="font-size:medium;">We reiterate United Bank Limited (UBL) as our top pick in the Pak
Banking space with a Target Price of Rs217, an upside of 33% alongside
2016E dividend yield of 8%.</span></li></ul><ul><li><span style="font-size:medium;">Post 1Q2016 result and its subsequent management call, we raise our
earnings forecasts by 1-5% over 2017-18F, while we keep our estimate for
2016E intact at Rs22.5/share (+5% YoY).</span></li></ul><ul><li><span style="font-size:medium;">With a 2016E Tier-I ROE of 22%, we believe UBL unjustifiably trades at a
discount to its peers at 2016E P/B of 1.2x (Industry: ROE 20%, P/B 1.4x).</span></li></ul><ul><li><span style="font-size:medium;">In 1Q2016, earnings clocked in 1% YoY lower at Rs6.14/share with pre-tax
profits rising by 3% YoY on the back of (1) 4% YoY growth in Ne...
