Islamabad, Pakistan’s ICT service giant, PTCL Group, has publicly addressed and dismissed speculations regarding the financial state of its subsidiary, U Microfinance Bank (Ubank). The statement comes in response to circulating rumours, underscoring Ubank's financial resilience and its role as a leading entity in the banking sector.
According to a news release by PTCL, Ubank, recognized as Pakistan's fastest-growing microfinance bank, maintains a steadfast financial foundation bolstered by a substantial capital base. The PTCL Group's commitment remains unchanged, emphasizing that all Ubank teams, from management to ground staff, are continuously advancing, innovating, and ardently working towards the bank's principal objective of achieving financial inclusion for all demographics of Pakistani society.
Ubank's Gross Loan Portfolio stands prominently in the industry, primarily credited to the bank's sustainable growth strategy. A significant 54% of this portfolio is gold-backed, reflecting the bank's fiscal sturdiness vis-à-vis its lending practices. Ubank's multifaceted portfolio encompasses solar financing, agriculture-related financing including tractors, housing, and vehicle financing, among others.
The robust backing from PTCL Group has significantly fortified Ubank. Highlighted financial figures include a paid-up capital of PKR 4 Billion, an additional Tier-1 capital of PKR 1 Billion, and PKR 1.2 Billion in Tier-2 capital from PTCL. The bank has also secured PKR 1 Billion in additional Tier-1 capital from external markets, with consistent augmentation in its funding base due to steady cash inflows, deposits, lending activities, and capital influxes.
Hatem Bamatraf, President and Group CEO of PTCL and Ufone 4G and also Chairman of U Microfinance Bank's Board of Directors, commented, “Ubank’s commendable financial performance, backed by PTCL Group’s unwavering support, showcases its growth trajectory. While there's no immediate plan for equity injections, we remain dedicated to fulfilling any future growth needs."
Reflecting its stability, PACRA Credit Rating Agency and VIS Credit Rating Company have conferred an A+ long-term credit rating upon Ubank. Both agencies have given Ubank a ‘Stable’ outlook, lauding its sustainable strategic endeavours.
Mohamed Essa Al Taheri, the President and CEO of U Microfinance Bank, emphasized that the circulating rumours about UPaisa and U Microfinance Bank's capital base are entirely baseless. He added, “Ubank, with its strong management team, continues to garner support from its investors, partners, stakeholders, and clientele.”
The majority owner of PTCL is the Government of Pakistan, with a 62% stake, while e and (formerly Etisalat) owns 26%. U Microfinance Bank, established in 2012, has consistently experienced steady growth since its inception, expanding its reach extensively in both urban and rural regions across Pakistan. The 350+ branch network of Ubank stands as a testament to its dedication to financially empower the unbanked populace.