UBL fails to lift profits during 9MCY20 owing to fall in non-interest income
MG News | October 26, 2020 at 11:49 AM GMT+05:00
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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