July 19, 2023 (MLN): United Bank Limited (PSX: UBL) has revealed its financial statement today for the half year ended June 30, 2023, as per which the bank posted a profit worth Rs27.52 billion [EPS: Rs22.01], depicting a surge of 2.27x YoY, compared to Rs27.52bn [EPS: Rs9.71] in the same period last year (SPLY), bank’s filing on PSX showed today.
Along with the 1HCY23 financial results, the board of directors of UBL has also announced an interim cash dividend for the period ended June 30, 2022, at Rs11 per share i.e. 110%.
It is worth noting that this was the highest dividend payout and PAT ever recorded.
Going by the income statement, the bank witnessed an increase of 53.9% in its net interest income (NII) to stand at Rs72.33bn, compared to SPLY. The surge in NII is due to a jump in interest-earning (Rs89.97bn), up by 85% YoY.
During the period under review, the bank’s Non-Markup Income (NMI) fell down by 16% YoY to Rs13.14bn owing to the massive rise in loss on the sale of securities to clock in at Rs4.92bn as compared to a gain of Rs647.95m in SPLY.
In addition, the bank incurred a provision expense of Rs410.83m during the review period compared to the provisioning reversal of Rs1.37bn in the corresponding period last year.
On the tax front, the bank paid Rs24.50bn, 9.2% higher than the amount paid in 1HCY22.
| Consolidated Profit and Loss Account for the 6 Months Ended June 30, 2023 (Rupees in 000) | |||
|---|---|---|---|
| Jun-23 | Jun-22 | % Change | |
| Mark-up/return/interest earned | 195,820,296 | 105,847,586 | 85.0% |
| Mark-up/return/interest expensed | (123,485,537) | (58,857,098) | 109.8% |
| Net mark-up/return/interest income | 72,334,759 | 46,990,488 | 53.9% |
| Non mark-up/interest income | |||
| Fee, commission and brokerage income | 9,720,097 | 8,372,389 | 16.1% |
| Dividend income | 904,300 | 704,274 | 28.4% |
| Income from dealing in foreign currencies | 7,055,660 | 4,729,777 | 49.2% |
| Income /Loss from derivatives | (209,183) | 701,163 | – |
| Gain on sale of securities – net | (4,918,716) | 647,948 | – |
| Other income | 587,371 | 478,911 | 22.6% |
| Total non mark-up /interest income | 13,139,529 | 15,634,462 | -16.0% |
| Total Income | 85,474,288 | 62,624,950 | 36.5% |
| Non mark-up/interest expenses | |||
| Operating expenses | 32,442,092 | 25,990,861 | 24.8% |
| Workers’ Welfare Fund | 1,043,620 | 704,603 | 48.1% |
| Other charges | 4,065 | 15,962 | -74.5% |
| Total non mark-up/interest expenses | 33,489,777 | 26,711,426 | 25.4% |
| Share of income/(loss) of associates | (374,401) | 51,615 | – |
| Profit before provisions | 51,610,110 | 35,965,139 | 43.5% |
| Provisions and write offs-net | 410,829 | (1,367,770) | – |
| Profit before taxation | 52,020,939 | 34,597,369 | 50.4% |
| Taxation | (24,498,838) | (22,444,112) | 9.2% |
| Profit after taxation | 27,522,101 | 12,153,257 | 126.5% |
| Earnings per share – basic and diluted (Rupees) | 22.01 | 9.77 | 125.3% |
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Posted on: 2023-07-19T14:16:40+05:00
