PTCL Group Strongly Refutes Rumors About U Microfinance Bank’s Financial Health

Pakistan’s largest ICT services provider, PTCL Group, has unequivocally rejected all claims and rumors concerning the financial stability of its wholly-owned subsidiary, U Microfinance Bank (Ubank). Ubank, recognized as Pakistan’s fastest-growing microfinance bank and a pivotal player in the banking sector, stands firm with a robust financial structure and substantial capital reserves.

Ubank enjoys steadfast support from PTCL Group, boasting a paid-up capital of PKR 4 billion, an additional PKR 1 billion as Tier-1 capital, and PKR 1.2 billion as Tier-2 capital from PTCL. Additionally, the bank has raised an extra PKR 1 billion in Tier-1 capital from the market. The bank’s funding base continues to expand consistently through robust cash flows, deposits, lending activities, and capital inflow.

Ubank’s strong capital base, diversified revenue sources, and expansive portfolio, combined with its remarkable growth, culminate in a long-term credit rating of A+ awarded by both PACRA Credit Rating Agency and VIS Credit Rating Company. These agencies have recognized the bank’s sustainable strategic initiatives and issued a ‘Stable’ outlook for Ubank.

Hatem Bamatraf, President and Group CEO of PTCL & Ufone 4G and Chairman of the Board of Directors at U Microfinance Bank, reiterates PTCL Group’s unwavering support, emphasizing the bank’s impressive financial performance and growth trajectory. He assures investors, customers, and shareholders that no equity injection is currently anticipated, but they remain fully committed to meeting future growth requirements.

Ubank’s impressive Gross Loan Portfolio, one of the industry’s most substantial, is underpinned by a remarkable 54% collateralization through gold, a testament to the bank’s financial resilience in its lending practices. Furthermore, Ubank’s diverse portfolio spans various sectors, including solar financing, agriculture tractor financing, housing, and vehicle financing.

PTCL, predominantly owned by the Government of Pakistan (62%) and e& (formerly Etisalat) (26%), witnessed the establishment of its subsidiary, U Microfinance Bank, in 2012. Over the years, the bank has consistently enhanced its profitability while extending its presence across both urban and rural regions of Pakistan. With a network of 350+ branches, Ubank remains dedicated to providing viable financial products and services to the unbanked population.

PTCL Group affirms its unwavering commitment to Ubank’s mission of fostering financial inclusion throughout the diverse segments of Pakistani society, vowing to continue innovation and progress across all levels of the bank.

Mohamed Essa Al Taheri, the Incumbent President & CEO of U Microfinance Bank, addresses recent rumors surrounding the bank’s capital base, dismissing them as baseless and unfounded. He affirms Ubank’s strong and committed management team and reiterates the unwavering support of its investors, partners, stakeholders, and customers.

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