August 7, 2019 (MLN): United Bank Limited (UBL) has announced its financial results for the half year ended on June 30th 2019, as per which the bank has reported net earnings of Rs. 9.54 billion (EPS: Rs. 7.8), which is about 52% higher than the earnings of Rs. 6.3 billion recorded in the same period last year.
The surge in UBL’s net profits by more than half is mainly due to improvement in net interest income as it increased by 6.7% and absence of pension charge which bank took last year of Rs 8.4 bln
During the period, bank’s income from dealing in foreign currencies and income from other sources surged significantly by 54% and 327% respectively which further helped in lifting the profits up.
It is pertinent to mention that the financial results of the bank are in line with market expectations, with Ismail Iqbal Securities making the most accurate forecast.
Moreover, the Board of Directors of the bank announced an interim cash dividend for the aforementioned period at Rs. 2.50 per share i.e. 25%.
|
Unconsolidated Profit and Loss Account for the Half year ended June 30th, 2019 (Rupees '000) |
|||
|---|---|---|---|
|
|
Jun-19 |
Jun-18 |
% Change |
|
Mark-up/return/interest earned |
66,564,781 |
54,164,809 |
22.9% |
|
Mark-up/return/interest expensed |
(36,641,997) |
(26,109,232) |
40.3% |
|
Net mark-up/return/interest income |
29,922,784 |
28,055,577 |
6.7% |
|
Non mark-up/interest income |
|
|
|
|
Fee, commission and brokerage income |
7,076,263 |
6,727,671 |
5.2% |
|
Dividend income |
773,925 |
1,158,938 |
-33.2% |
|
Income from dealing in foreign currencies |
2,224,878 |
1,446,754 |
53.8% |
|
Income /Loss from derivatives |
85,426 |
(6,274) |
|
|
Gain on sale of securities – net |
201,738 |
4,541,825 |
-95.6% |
|
Other income |
1,781,641 |
417,075 |
327.2% |
|
Total non-mark-up /interest income |
12,143,871 |
14,285,989 |
-15.0% |
|
Total Income |
42,066,655 |
42,341,566 |
-0.6% |
|
Non mark-up/interest expenses |
|
|
|
|
Operating expenses |
(19,212,719) |
(18,516,714) |
3.8% |
|
Workers' Welfare Fund |
(353,105) |
(282,035) |
25.2% |
|
Other charges |
(2,218) |
(4,019) |
-44.8% |
|
Total non-mark-up/interest expenses |
(19,568,042) |
(18,802,768) |
4.1% |
|
Share of income/(loss) of associates |
– |
– |
|
|
Profit before provisions |
22,498,613 |
23,538,798 |
-4.4% |
|
Provisions and write offs-net |
(4,494,025) |
(4,532,102) |
-0.8% |
|
Extra ordinary/ unusual item- charges in respect of pension liability |
– |
(8,404,635) |
|
|
Profit before taxation |
18,004,588 |
10,602,061 |
69.8% |
|
Taxation |
(8,461,811) |
(4,331,357) |
95.4% |
|
loss from discontinued operations- net of tax |
– |
– |
|
|
Profit after taxation |
9,542,777 |
6,270,704 |
52.2% |
|
Earnings per share – basic and diluted (Rupees) |
7.80 |
5.12 |
52.3% |
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