April 22, 2021 (MLN): United Bank Limited (UBL) has announced its financial results for the 1QCY21 ended March 31, 2021. As per the results, the bank has posted its consolidated net profits of Rs 7.58 billion (EPS: Rs 6.21), i.e., 54.4% higher than the net profits of Rs 4.91 billion (EPS: Rs 3.98) recorded in the same period last year.
Alongside financial results, the board of directors has announced an interim cash dividend for the 1st quarter ended March 31, 2021, at Rs 4 per share i.e., 40%.
The rise in UBL’s consolidated earnings was mainly attributable to lower provision charges.
As per an official report on the bank’s financial earnings, net interest income (NII) inched lower by 1.6% YoY to stand at Rs 17.50 billion due to a 26% YoY decrease in interest income as the full impact of monetary easing reflected on asset yields.
During the period under review, the bank’s non-funded income (NFI) went up by 23% YoY on the back of capital gains that increased by a whopping 4x YoY to Rs 1.87 billion which were attributable to power stocks in view of AKD research. Moreover, a 42% YoY increase in dividend income along with income from derivatives of Rs 7.25 million also contributed to the financial health of the bank.
Meanwhile, the bank’s provisioning expenses plunged by around 90% YoY to clock in at Rs 376 million during 1QCY21.
On the tax front, the bank paid taxes worth Rs 4.89 billion, up by 44% YoY in 1QCY21.
|
Consolidated Profit and Loss Account for the Quarter ended on March 31, 2021 (Rupees '000) |
|||
|---|---|---|---|
|
|
Mar-21 |
Mar-20 |
% Change |
|
Mark-up/return/interest earned |
32,930,550 |
44,374,183 |
-25.8% |
|
Mark-up/return/interest expensed |
15,425,644 |
26,584,742 |
-42.0% |
|
Net mark-up/return/interest income |
17,504,906 |
17,789,441 |
-1.6% |
|
Non-mark-up/interest income |
|
|
|
|
Fee and commission income |
3,469,334 |
3,510,113 |
-1.2% |
|
Dividend income |
252,206 |
177,699 |
41.9% |
|
Foreign exchange income |
524,508 |
770,976 |
-32.0% |
|
Income /Loss from derivatives |
7,254 |
(11,274) |
– |
|
Gain on sale of securities – net |
1,874,072 |
458,052 |
309.1% |
|
Other income |
127,885 |
174,599 |
-26.8% |
|
Total non-mark-up /interest income |
6,255,259 |
5,080,165 |
23.1% |
|
Total Income |
23,760,165 |
22,869,606 |
3.9% |
|
Non-mark-up/interest expenses |
|
|
|
|
Operating expenses |
10,784,633 |
10,314,814 |
4.6% |
|
Workers' Welfare Fund |
248,494 |
219,422 |
13.2% |
|
Other charges |
24,547 |
181,039 |
-86.4% |
|
Total non-mark-up/interest expenses |
11,057,674 |
10,715,275 |
3.2% |
|
Share of profit/(loss) of associates |
152,002 |
(147,536) |
– |
|
Profit before provisions |
12,854,493 |
12,006,795 |
7.1% |
|
Provisions and write offs-net |
376,332 |
3,701,317 |
-89.8% |
|
Profit before taxation from continuing operations |
12,478,161 |
8,305,478 |
50.2% |
|
Taxation |
4,892,227 |
3,400,320 |
43.9% |
|
Profit after taxation from continuing operations |
7,585,934 |
4,905,158 |
54.7% |
|
Discontinued operation |
|
|
|
|
(loss)/profit from discontinued operations- net of tax |
(33) |
6,505 |
– |
|
Profit after taxation |
7,585,901 |
4,911,663 |
54.4% |
|
Earnings per share – basic and diluted (Rupees) for profit from continuing operations attributable to the ordinary equity holders of the bank |
6.21 |
3.98 |
56.0% |
|
Earnings per share – basic and diluted (Rupees) for profit attributable to the ordinary equity holders of the bank |
6.21 |
3.98 |
56.0% |
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