- Says it will not have material impact on financial position in notice to PSX
United Bank Limited (UBL) has decided to wind up its subsidiary in Switzerland, as the "bank intends to exit from non-core markets".
“As part of its global realignment strategy, UBL intends to voluntarily wind up its wholly-owned subsidiary, UBL (Switzerland) AG,” read a notice sent to the Pakistan Stock Exchange (PSX) on Monday.
With over 1,300 branches UBL maintains one of the largest network footprints in Pakistan. It recorded a profit before tax (PBT) of Rs12.2 billion for the quarter ended March 31, 2021, up 44 percent over the corresponding period of the previous year. Earnings per share (EPS) were measured at Rs6.05 (Q1’20: Rs4.13).
Back in 2019, UBL shut down its New York branch, after it surrendered its banking licence to the New York State Department of Financial Services (NYDFS). As per UBL, this was a voluntary closure after the New York branch had become commercially unviable to operate. UBL was the second bank after HBL to have closed off its branch operations in New York.
In its PSX notice on Monday, UBL said that the winding up of UBL (Switzerland) AG is subject to relevant legal and regulatory approvals including the approval of the shareholders of the bank.
“UBL and UBL (Switzerland) AG will continue to work closely with all stakeholders throughout the winding up process to ensure that UBL (Switzerland) AG is wound up in an orderly manner, fulfilling all its obligations and complying with all applicable laws rules, and regulations,” said the bank.
The bank added that the decision to wind up UBL (Switzerland) AG will not have any material impact on overall operating and financial position of the UBL.