August 05, 2020 (MLN): The meeting of the Board of Directors of United Bank Limited (UBL) is scheduled to take place today to unveil the financial results for 1H2020 ended June 30, 2020.
Based on the estimates projected by brokerage houses, the market expects there will be meagre increase in UBL’s net income as higher provision charges would keep bottom-line restricted despite a significant increase in interest income and capital gains.
The bank’s net interest income is anticipated to increase substantially on an account of the lagged impact of asset pricing.
While, according to Aba Ali Habib, non-interest income is expected to decline, mainly due to one-off of Rs1.3 bn realized on the transfer of NY branch reserves in 2QCY19.
On the provision side, the bank posted the provision of $24.1 million on the overseas portfolios in the first quarter. Market analysts expect that the bank will set aside more loan disbursements in the second quarter to avoid possible overseas loan defaults.
It is pertinent to mention that the State bank of Pakistan has barred commercial banks from announcing pay-outs until 2QCY20.
Projections by various brokerage houses are listed in the table below:
