UBL posts 28.7% higher net profits in 1QCY22

April 20, 2022 (MLN): United Bank Limited (UBL) has revealed its financial statement today for 1QCY22 ended March 31, 2021, as per which the bank posted a profit worth Rs9.52 billion, depicting a surge of 28.7% YoY, compared to 1QCY21, bank’s filing on PSX showed today.

This has translated into earnings per share (EPS) which clocked in at Rs7.78 and increased by 28.6%, against EPS of Rs6.05 in the same period last year (SPLY).

Along with the quarterly financial results, the board of directors of UBL has also announced an interim cash dividend for the period ended March 31, 2022, at Rs5 per share i.e. 50%.

Going by the income statement, the bank witnessed an increase of 27.4% in its net interest income (NII) to stand at Rs21.47bn, compared to SPLY. The surge in NII is due to a jump in interest-earning (Rs48bn), up by 50% YoY.

During the period under review, the bank’s non-funded income (NFI) climbed up by 17.2% YoY to Rs6.78bn owing to the massive surge in foreign exchange income by 2.64x YoY to clock in at Rs1.28bn.   In addition, the increment in fee and commission income (up by 28.9%) and dividend income (3.5x) have also supported NFI.

The bank noted a 19.1% increment in its non-markup interest expense to lock in at Rs12bn during 1QCY22, against Rs10.1bn in SPLY.

In addition, the bank booked a provisioning reversal of Rs347mn during the review period compared to the provisioning expense of Rs354 in the corresponding period last year.

On the tax front, the bank paid Rs9.5bn, 32% higher than the amount paid in 1QCY21.

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