Union Bank Limited

Established in 1991 and backed by a major Middle Eastern Group, Union Bank today is the preferred choice of thousands of satisfied customers throughout Pakistan.
With 67 branches in 23 cities across Pakistan and two branches in Sri Lanka along with a correspondent banking network of over 500 banks in 85 countries, Union Bank has been rapidly gaining ground in the financial market.
The management at Union Bank comprises of seasoned professionals in the fields of banking and finance to lead the bank in today's competitive market, encouraging a culture of innovation and bringing cutting edge financial products to its customers. Union Bank is recognised to provide its clients with complete banking solutions.
The new management under the leadership of Mr Shaukat Tarin set a new strategic direction for the Bank and developed an acquisition based growth strategy to achieve a critical size to be able to compete with other major players in the domestic banking market.
In June 2000, Union Bank acquired Bank of America's highly profitable operations in Pakistan and went on to become one of the largest private commercial banks. The acquisition added a new dimension to Union Bank's business and enhanced its customer base, deposits, and loan portfolio quality.
This acquisition also enhanced Union Bank's corporate image in the domestic financial market.
In 2001, Union Bank acquired the American Express Card Franchise (AMEX). The acquisition of the cards business was in line with the strategic vision of the Bank to become a full-service consumer bank. This acquisition was the first initiative by Union Bank to offer premium products to the consumer market. The American Express Cards in Pakistan are now issued as "Union Bank American Express Cards."
Continuing its acquisition strategy, Union Bank acquired Emirates Bank International's (EBI) operations in Pakistan in July 2002. The acquisition took the balance sheet size to over US $1 billion.
With 10 branches in 8 cities, EBI added to the Bank's franchise a sustainable advantage through substantial increase of top tier customer base and increase in the retail distribution channel by increase in the branch network.
In 2003, the Bank entered the international banking arena by acquiring Mashreq Bank's operations in Sri Lanka. This was in line with the Bank's vision to selectively enter emerging markets as a first step to become an international bank. Union Bank continues to identify acquisition opportunities internationally though on a very selective basis.
Union Bank has come a long way from a balance sheet footing of Rs 27 billion in 2000 to a closing balance sheet footing of Rs 117 billion in 2005. All this was possible because of a visionary and robust strategy implementation by the management and staff of the bank who displayed perseverance, dedication and commitment.
2005 was a year full of challenges for the banking industry such as decreasing spreads due to increasing cost of funds and increasing intermediation cost. However, Union Bank's spreads kept a healthy trend, despite tough market competition, as a result of high yielding consumer assets.
Profit before tax aggregated Rs 2,778 million, a healthy increase of 97 percent over the last year. Profit after tax amounted to Rs 1,745 million, as compared to Rs 830 million, over the corresponding period.
Focus on the core banking business of interest income has resulted in an increase of 58 percent on gross revenue which crossed Rs 7,000 million, compared to Rs 4,450 million last year. When compared to December 31, 2004, deposits grew by 45 percent whereas advances recorded a growth of 35 percent.
Equity has registered an increase of 54 percent crossing Rs 5,000 million, as against Rs 3,346 million last year. Total assets stand at Rs 117,100 million, as compared to Rs 77,711 million last year, registering a growth of 50 percent. Earning per share (EPS) is Rs 6.21 an increase of 108 percent over 2004.
Based on its excellent financial performance and significant improvement in all areas of risk management & corporate governance, Pakistan Credit Rating Agency (PACRA) has upgraded the long-term credit rating of Union Bank to AA- (double A minus) and short-term rating to A1+ (A one plus).
OUR VISION:
To be the premier financial institution in the Emerging Markets.
OUR MISSION:
To be a premier bank focused on our customers, recognised for superior service, innovative products and attractive returns to all our stakeholders.
Union Bank's vision goes beyond local operation. The bank's aim is to become a prominent Pakistani bank with substantial international presence. With a wide range of products & services and management expertise in all functional areas of banking, Union Bank finds itself best positioned to embark on international operations.
In order to establish an international network Union Bank has been evaluating several emerging economies in Europe, Southern Africa and South Asia. The criteria for the selection of the country includes the level of economic activity, the demand for consumer products (Union Bank's core competency), and the trade and economic relations with Pakistan.
Union Bank selected Sri Lanka as the first venue for commencing its international business. The historically warm relationship between both the two countries provided Union Bank a congenial platform to start its offshore operations. Sri Lanka is one of the fastest growing economies in the region and the bilateral trade agreement between Pakistan and Sri Lanka will not only help boost trade but will further strengthen the relationship between the two countries. With economic and cultural similarities between the two countries, Union Bank believes that it will be able to leverage its success in Pakistan to Sri Lanka as well
RANGE OF PRODUCTS PERSONAL ACCOUNTS BUSINESS ACCOUNT: is a flexible current account that gives you the freedom to transact wherever your business takes you. Now you have the most secure way of transferring your funds anywhere in Pakistan without the hassles of carrying Cash or Travellers Cheques.
MAHANA IZAFA: is a unique rupee saving account which combines a high rate of monthly profit, flexibility of withdrawal and convenience, all in one. The special tiering structure ensures a higher profit on higher deposits. It is the smart choice of the profit minded who demand more than just profit from their bank account. Today it is the preferred choice of thousands of satisfied customers including businessmen, salaried individuals, housewives, business houses and retirees.
MAHANA MAX:
is a branded long-term savings deposit, with profit payment at maturity. Additional value added features give customers the flexibility to meet their interim liquidity needs. It is a product ideally suited to corporate as well as individual clients who want a good return on their money.
SAVING ACCOUNT:
is the latest addition to Union Bank's ever-increasing portfolio of products. This product combines a good rate of return, profit paid out on a six-monthly basis, and outstanding services offered by Union Bank all-in-one.
PERSONAL FINANCE
MY HOME:
With Union Bank's "My Home" your ambitions are no longer a dream. We give you everything you need to build, buy or renovate your home, and do it with style and convenience
UNICAR:
With the greatest flexibility, you can choose from anywhere between 1 - 5 years leasing / financing period, with and additional option for an extended 6 - 7 years lease / finance period
READY CASH:
Because Union Bank's Ready Cash is an evergreen personal line of credit that gives you financial power with unmatched freedom and flexibility. You can withdraw cash from your credit line using a cheque or your VISA Debit / ATM card. With the lowest mark up and no restrictions on where and how to spend Ready Cash is bound to make you say "NO PROBLEM!"
CARDS BUSINESS:
-- American Express Charge Card
-- American Express Credit Card
-- Visa Gold Card
-- Shopping Card
-- Kissan Card
On the consumer business side, the bank launched the first Visa online debit card in the market, giving its customers local and international access to their funds. With the bank's strong online ATM network, this is a high value addition and is significantly contributing towards further strengthening its customer relationships.
This also paved the way for the launch of the Union Bank Visa Gold Credit Card. With this addition, Union Bank now has the widest range of card products in Pakistan, covering a complete range of consumer segments.
The bank continues with aggressive growth in the existing consumer asset products. Union Bank American Express Cards are perhaps the most powerful cards in Pakistan with unmatched features and the sense of prestige it carries for the customer. On the other hand, Union Bank Visa Gold card is the only card in Pakistan with 'cash-back' feature. On the basis of its wide range of products, the bank is well poised to become the largest card issuer in Pakistan by end 2005.
TAILOR-MADE SME PRODUCTS
BUSINESS POWER:
Business Power, a 'Running Finance Facility' offered against property to businessmen and self-employed professionals provides a flexible source of funds to businesspersons to meet day to day working capital requirements and capitalise on profitable opportunities
RANG HI RANG:
As a dying and printing operator in the textile industry, businessmen often have short term capital requirements. Union Banks brings a running finance facility which is made according to your requirements and at very competitive rates. Through Rang hi Rang, you will have instant access to a credit line of Rs 20 million.
TANA BANA: Union Bank's Tana Bana is an exclusive credit line for textile fabric weavers to procure cotton yarn. Through this facility fabric weavers can obtain a running finance facility ranging up to Rs 7 million by mortgaging their residential, commercial or industrial property.
AGRI DEAL: Agri Deal is a running finance facility for the dealers of agricultural inputs, ie fertilisers, seeds and pesticides. Agri Deal extends a credit line up to Rs 20 million
CASH TODAY:
Cash today is a bill discounting facility for the suppliers of goods and services to large and multinational companies and the best is part no mortgage, no pledge is required.
ELECTRO FINANCE:
Union Bank's Elektro Finance is an easy way to success for the authorized dealers of electronics & electrical appliances. Union Bank's Elektro Finance will instantly extend them a credit line up to Rs 10 million by just following simplified eligibility criteria without burdening them with laborious paperwork.
UNION BANK ONLINE:
is a state-of-the-art customer contact center which offers you real time advantage. With Union Bank Online you no longer have to take time out to visit your branch for your routine banking needs. With just a single phone call you can now have access to a wide range of Tele-banking solutions and personalised banking services.
KEY BENEFITS OF UNION BANK ONLINE:
-- Simple and Convenient banking solutions over phone
-- Instant access to banking services from anywhere at anytime
-- Saves time and money
-- Toll-Free Access- 0800-66-666 (For prospective customers) 0800-44-444 (For all existing customers)
CORPORATE BANKING: The Corporate Banking Group at Union Bank is dedicated to providing its clients the highest level of service possible. Through committed Relationship Managers, we at Union Bank are dedicated towards developing relationships with corporate clients to service their financial needs world-wide. In essence, we believe that these products and services have been a direct outcome of years of interaction with and feedback from our customers.
The Corporate Banking Group manages a high quality asset portfolio being an active player in many sectors including textile, sugar, leather, pharmaceutical, fertiliser, petrochemical, power, automotive, telecommunications, oil and gas distribution, marketing and refining and fast moving consumer goods industries. Union Bank has one of the largest correspondent banking networks which combined with our advanced technological systems makes us the premier correspondent bank.
We are ahead of several other banks in Pakistan, in terms of compliance to BASEL II accord and a team has been assigned to work on this. We have also acquired state-of-the-art technology from renowned suppliers around the world.
Union Bank has managed a good balance by having a mix of high earning and stable portfolio of corporate and SME sector, growth in income and payments is expected to be robust and spreads will increase.
COMMUNITY RELATIONS:
Being a socially responsible corporate citizen of Pakistan, Union Bank has been actively supporting various welfare projects, over the years. Union Bank has been supporting numerous educational and healthcare institutions and non-governmental organisations including HOPE, SOS Villages, National Council for Culture and Arts, Shaukat Khanum Memorial Cancer Hospital, Cardiovascular Foundation, LRBT, The Kidney Center, Aga Khan Youth & Sports Board, Park Lane Hospital, Accident and Emergency Foundation, Teachers Resource Center and so on.
Other initiatives which have enormously helped communities include introduction of Kissan Card and the SME business.
As a frontline partner with the GoP, and Union Bank's own view on the inherent strengths of the agriculture market, union bank introduced "Kissan Card" in Multan, on June 20, 2004.
Initially Kissan card was launched as a pilot project on which our card members could buy Engro's fertiliser and seeds and Syngenta's (Naya Savera) pesticides and seeds. Since then Kissan card operations have expanded to from Multan to Sahiwal and the merchant partner base now boasts PSO as well as retail level fertiliser dealers.
SME BUSINESS:
Union Bank has handpicked a group of highly trained and professional individuals to form an exclusive Small & Medium Enterprises (SME) Group for personalised service to companies, who have diverse needs. SME Group strives to apply a unique blend of finance, industry and technological expertise to keep pace with dynamic markets and translating insights into solutions that meet companies' diverse financial needs.
For a more focused approach to the unique needs of different markets and/or geographical areas, SME Group has four Regional Heads who oversee customers in their respective regions.
SPORTS PROMOTION:
Union Bank is actively involved in the promotion of non-glamour sports such Squash. In order to help Pakistan Squash regain its past glory, Union Bank signed a three-year corporate sponsorship agreement with Pakistan Squash Federation (PSF), this year. The sponsorship will enable PSF to build new courts; identify and train new talent; and procure state-of-the-art equipment.
PEOPLE:
The bank's staff forms the back bone of its business. Consequently, initiatives in training and human resource development remain a key part of the bank's strategy. Several important initiatives have been taken in terms of hiring, retention and merit related remuneration in order to further develop human resources.
It has been one of Union Bank's main objectives to provide its customers with safe, secure and reliable service through its wide range of products.
The bank owes much of its success to the continued support from customers and also to the commitment and dedication of its staff.