<p><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">With CY16 earnings ending 4%YoY higher, UBL has been able to
sustain tough operational sector dynamics (lower interest rates and
continuation of super tax). In this regard, improvements in the bank's deposit
mix (impressive C/A growth of 18%YoY in CY16) along with asset quality
refinement (provisions down 53%YoY) have been the focal points driving earnings
whereas lower NIMs (PIB maturity, lower spreads) continued to exert pressure.
Going forward, earnings growth is likely to be a function of higher advances
particularly in the backdrop of CPEC activities taking shape. While corporate
loans continue to make up the major portion of the book, the bank has also
started pushing for commodity financing- a high margin area that was lacking
focus before. Additi...
