KARACHI: United Bank Limited (UBL) has informed the Pakistan Stock Exchange (PSX) on Tuesday that it has surrendered its New York branch license to the New York State Department of Financial Services (NYDFS) on January 28, 2019.
The announcement follows the bank’s earlier announcement (November 22, 2018) of its intention to voluntarily liquidate its New York branch and surrender its license in the United States.
The decision had been taken as part of the bank’s global realignment strategy and keeping in view the commercial viability of the operations there.
From a business perspective, the UBL’s NY branch was mainly involved in providing international remittance services.
However, analysts at Taurus Research believe that the bank may continue to provide USD clearing and other services to its customers by virtue of its correspondent banking relationships in the US.
UBL’s assets in the US can be estimated to amount to around Rs4 billion (i.e. 0.2 percent of its total assets), according to latest financials.