Notes to and forming part of the Unconsolidated Financial Statements

For the year ended December 31, 2018

34. EXTRAORDINARY / UNUSUAL ITEM - CHARGE IN RESPECT OF PENSION LIABILITY

On February 13, 2018 the Honourable Supreme Court of Pakistan announced a judgement based on a proposal
submitted by banks including UBL, in which it raised the minimum monthly pension of employees. Based on legal advice
and in accordance with the Honourable Supreme Court's order, the change in scheme is prospectively applied from the
date of the judgement and the payments to eligible persons are being made accordingly. The bank has recognised an
amount of Rs. 6,657.216 million as past service cost in this respect (note 39.8)

2018 2017
------- (Rupees in '000) -------
35. TAXATION

Current 10,244,376 14,396,887

Prior years 654,168 (2,037,348)
Deferred (1,157,975) 2,379,270
9,740,569 14,738,809

35.1 Relationship between tax expense and accounting profit

Accounting profit for the year 24,966,664 39,918,456

Tax on income @ 35% (2017: 35%) 8,738,332 13,971,460

Super tax @ 4% (2017 : 0%) 998,667 -
Tax effect of items that are either not included in determining taxable
profit or taxed at reduced rates (permanent differences) 12,595 20,831
Tax - prior years (net of deferred tax) - 721,583
Others (9,025) 24,935
Tax charge 9,740,569 14,738,809

2018 2017
36. EARNINGS PER SHARE ------- (Rupees in '000) -------

Profit after taxation for the year 15,226,095 25,179,647

------- (Number of shares) -------

Weighted average number of ordinary shares 1,224,179,687 1,224,179,687

---------- (Rupees) ----------

Earnings per share - basic and diluted 12.44 20.57

There were no convertible dilutive potential ordinary shares outstanding as at December 31, 2018 and 2017.

Note 2018 2017

------- (Rupees in '000) -------
37. CASH AND CASH EQUIVALENTS

Cash and balances with treasury banks 6 183,467,358 157,582,687

Balances with other banks 7 23,345,698 19,516,198
206,813,056 177,098,885

118 United Bank Limited