UBL fails to lift profits during 9MCY20 owing to fall in non-interest income

October 26, 2020 (MLN): United Bank Limited (UBL) has made profits of Rs. 15.4 billion for the nine months ended September 30, 2020, i.e. merely 2% lower as compared to the profits of the same period last year (SPLY).

The earnings per share for the period stood at Rs. 12.81, showing almost no change as compared to the EPS of Rs. 12.82 reported in SPLY.

Despite an increase of 29% in net interest income, the profits of the Bank took a hit on account of a 25% drop in non-interest income. The fall in the latter resulted from a decline in Fee income, Dividend income, forex income, income from derivatives, and Other income by 24%, 35%, 12%, 4.22x, and 61% respectively.

While the operating expenses did not show any change as such, the non-core charges jumped by 53.44x, taking a significant toll on the operating margins.

Other items such as decline in share of profits from associates by 59% and an increase in provisions by 171% further pulled the profits down.

Consolidated Financial Results for nine months ended September 30, 2020 (Rupees'000)

 

Sep-20

Sep-19

% Change

Mark-up / return / interest earned

123,933,330

114,622,747

8%

Mark-up / return / interest expensed

(64,208,325)

(68,165,602)

-6%

Net mark-up / interest income

59,725,005

46,457,145

29%

NON-MARK-UP / INTEREST INCOME

  

Fee and commission income

9,105,995

12,054,092

-24%

Dividend income

508,512

784,488

-35%

Foreign exchange income

3,051,817

3,484,894

-12%

Income / (loss) from derivatives

(162,204)

50,298

-422%

Gain / (loss) on securities – net

981,510

772,386

27%

Other income

733,898

1,874,038

-61%

Total non-markup / interest income

14,219,528

19,020,196

-25%

Total income

73,944,533

65,477,341

13%

NON-MARK-UP / INTEREST EXPENSES

  

Operating expenses

(31,760,011)

(31,811,389)

0%

Workers welfare fund

(706,298)

(532,237)

33%

Other charges

(160,328)

(2,945)

5344%

Total non-markup / interest expenses

(32,626,637)

(32,346,571)

1%

Share of profit of associates

174,924

427,840

-59%

Profit before provisions

41,492,820

33,558,610

24%

Provisions and write offs – net

(15,453,220)

(5,706,877)

171%

Extraordinary / unusual items

  

PROFIT BEFORE TAXATION

26,039,600

27,851,733

-7%

Taxation

(10,646,054)

(12,163,304)

-12%

PROFIT AFTER TAXATION

15,393,546

15,688,429

-2%

Earnings per share

12.81

12.82

0%

 

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Posted on: 2020-10-26T11:49:00+05:00

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