UBL: Bottom line expands by 40% owing to reversals

August 9, 2021: United Bank Limited (UBL) has revealed its financial statement today for 1HCY21 ended June 30, 2021 as per which the bank posted profit worth Rs15billion, depicting a massive surge of 40.3% YoY, compared to 1HCY20.

This has translated into earnings per share (EPS) which clocked in at Rs12.16, increased by 36%, against EPS Rs8.95 in the same period last year (SPLY).

The notable surge in net profit is primarily attributable to the provision reversals.  

Going by the income statement sent to PSX, the company witnessed a decline of 9.3% in its net interest income (NII) to stand at Rs36.33bn, compared to SPLY. The decline in NII is due to a decline in interest earning (Rs69.8bn), up by 21% despite decrease interest expense by 30.8% to Rs33.47bn.

During the period under review, the bank’s non-funded income (NFI) jumped by 19.5% YoY to Rs11.6bn owing to the massive surge in gain on securities by 3x YoY to clock in at Rs2.58bn.   In addition, the increment in fee and commission income (up by 15.7%) and dividend income (10%) have also supported NFI.

It is pertinent to mention that the bank posted significant decline under its foreign exchange head by 30.8% to stand at Rs1.26bn in 1HCY21, compared to Rs1.82bn in SPLY.

The bank noted 4% increment in its non-markup interest expense to lock in at Rs22.35bn during 1HCY21, against Rs21.60bn in SPLY.

In addition, the bank booked a provisioning reversal of Rs157.93mn during the review period compared to the provisioning expense of Rs9.95bn in the corresponding period last year.

On the tax front, the bank paid Rs11bn, 46% more than the amount paid in 1HCY20.

Consolidated Profit and Loss Account for the Half-year ended on June 30, 2021 (Rupees '000)




% Change

Mark-up/return/interest earned




Mark-up/return/interest expensed




Net mark-up/return/interest income




Non-mark-up/interest income




Fee and commission income




Dividend income




Foreign exchange income




Income /Loss from derivatives



Gain on sale of securities – net




Other income




Total non-mark-up /interest income




Total Income




Non-mark-up/interest expenses




Operating expenses




Workers' Welfare Fund




Other charges




Total non-mark-up/interest expenses




Share of profit of associates




Profit before provision




(Reversals) Provisions and write offs-net



Profit before taxation from continuing operations








Profit/(loss) from discontinued operations- net of tax



Profit after taxation




Earnings per share – basic and diluted (Rupees) for profit from continuing operations attributable to the ordinary equity holders of the bank




Earnings per share – basic and diluted (Rupees) for profit attributable to the ordinary equity holders of the Bank





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Posted on: 2021-08-09T12:19:00+05:00