April 24, 2019 (MLN): United Bank Limited (UBL) has reported net earnings of Rs. 4 billion (EPS: Rs. 3.3) for the quarter ended March 31, 2019, which is about 47% higher than the earnings of Rs. 2.7billion recorded in the same quarter last year.
During 1QCY19, UBL's net interest income grew meagerly by 4.6%, while net non-interest income dropped by 31% on account of lower capital gains and other income.
However, the bank's provision expenses declined by 54.4% over the quarter, which further helped in lifting the profits up.
Furthermore, due to additional super tax imposed, UBL has booked higher effective tax rate of 51% for this quarter. Despite this, the result is above expectations.
The Board of Directors of the bank announced an interim cash dividend for the quarter at Rs 2.5 per share i.e. 25%.
|
Consolidated Profit and Loss Account for the quarter ended March 31, 2019 (Rupees '000) |
|||
|---|---|---|---|
|
|
Mar-19 |
Mar-18 |
% Change |
|
Mark-up/return/interest earned |
32,137,781 |
29,054,304 |
10.6% |
|
Mark-up/return/interest expensed |
(17,170,616) |
(14,749,327) |
16.4% |
|
Net mark-up/return/interest income |
14,967,165 |
14,304,977 |
4.6% |
|
Non mark-up/interest income |
|
|
|
|
Fee, commission and brokerage income |
4,131,123 |
3,440,622 |
20.1% |
|
Dividend income |
226,422 |
570,910 |
-60.3% |
|
Income from dealing in foreign currencies |
952,802 |
599,426 |
59.0% |
|
Income /Loss from derivatives |
51,482 |
(21,850) |
-335.6% |
|
Gain on sale of securities – net |
41,348 |
3,223,087 |
-98.7% |
|
108,218 |
182,907 |
-40.8% |
|
|
Total non mark-up /interest income |
5,511,395 |
7,995,102 |
-31.1% |
|
Total Income |
20,478,560 |
22,300,079 |
-8.2% |
|
Non mark-up/interest expenses |
|
|
|
|
Operating expenses |
(9,762,408) |
(9,509,816) |
2.7% |
|
Workers' Welfare Fund |
(184,081) |
(126,537) |
45.5% |
|
Other charges |
(1,985) |
(432) |
359.5% |
|
Total non mark-up/interest expenses |
(9,948,474) |
(9,636,785) |
3.2% |
|
Share of income/(loss) of associates |
243,571 |
184,931 |
31.7% |
|
Profit before provisions |
10,773,657 |
12,848,225 |
-16.1% |
|
Provisions and write offs-net |
(883,020) |
(1,936,022) |
-54.4% |
|
Extra ordinary/ unusual item- charges in respect of pension liability |
– |
(6,404,635) |
|
|
Profit before taxation |
9,890,637 |
4,507,568 |
119.4% |
|
Taxation |
(5,052,344) |
(1,747,577) |
189.1% |
|
loss from discontinued operations- net of tax |
(785,740) |
– |
|
|
Profit after taxation |
4,052,553 |
2,759,991 |
46.8% |
|
Earnings per share – basic and diluted (Rupees) |
3.30 |
2.28 |
44.7% |
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