February 25, 2021 (MLN): United Bank Limited (UBL) has unveiled its financial performance for the CY20, wherein the bank witnessed 9% YoY growth in consolidated profits to Rs 20.79 billion from Rs 19 billion earned in the previous year.
In conjunction with the results, the Bank has also announced a final cash payout of Rs 9.50/sh, taking a full-year payout to Rs 12.00/sh.
The earnings per share of the Bank clocked in at Rs 17.1/sh compared to Rs 15.6/sh in CY19.
Despite a marginal fall in Markup income, the Bank’s Net Interest Income (NII) surged by 21.7% YoY due to 16% YoY decline markup expenses.
However, the Non-markup Income (NMI) of the Bank weakened by 20% YoY primarily due to a significant fall in fee income, FX income, and dividend income by 18.4%, 17.4%, and 18.4% YoY respectively during CY20.
The growth in UBL’s profitability further restricted by higher provision expenses as the bank has booked provisioning expense of Rs 17.2 billion which is 2.3x higher than the provisioning cost of CY19.
On the cost front, Bank’s operating expenses remained flat, as a result of which UBL’s cost to income ratio improved to 47% from 51% in CY19.
The effective tax rate of the bank came in at 39% in CY20 compared to 43% in the comparative year.
Overall, in CY20 despite hefty provisioning, the bank managed to lift its earnings mainly on the back of higher NII and flat operating expenses.
Consolidated Profit and Loss Account for the year ended on December 31, 2020 (Rupees '000) |
|||
---|---|---|---|
|
Dec-20 |
Dec-19 |
% Change |
Mark-up/return/interest earned |
156,078,787 |
157,277,853 |
-0.8% |
Mark-up/return/interest expensed |
79,005,574 |
93,936,935 |
-15.9% |
Net mark-up/return/interest income |
77,073,213 |
63,340,918 |
21.7% |
Non mark-up/interest income |
|
|
|
Fee, commission and brokerage income |
12,830,086 |
15,725,077 |
-18.4% |
Dividend income |
872,029 |
1,123,261 |
-22.4% |
Foreign exchange income |
3,857,888 |
4,669,102 |
-17.4% |
Income /Loss from derivatives |
(13,076) |
64,627 |
– |
Gain on sale of securities – net |
610,230 |
216,670 |
181.6% |
Other income |
687,298 |
1,759,245 |
-60.9% |
Total non-mark-up /interest income |
18,844,455 |
23,557,982 |
-20.0% |
Total Income |
95,917,668 |
86,898,900 |
10.4% |
Non mark-up/interest expenses |
|
|
|
Operating expenses |
43,743,044 |
43,843,588 |
-0.2% |
Workers' Welfare Fund |
873,966 |
747,859 |
16.9% |
Other charges |
167,335 |
40,109 |
317.2% |
Total non-mark-up/interest expenses |
44,784,345 |
44,631,556 |
0.3% |
Share of profit of associates |
504,542 |
776,853 |
-35.1% |
Profit before provision |
51,637,865 |
43,044,197 |
20.0% |
Provisions and write offs-net |
17,255,678 |
7,313,543 |
135.9% |
Extra ordinary/ unusual item- charges in respect of pension liability |
– |
– |
– |
Profit before taxation from continuing operations |
34,382,187 |
35,730,654 |
-3.8% |
Taxation |
13,577,280 |
15,457,158 |
-12.2% |
loss from discontinued operations- net of tax |
16,373 |
1,225,198 |
-98.7% |
Profit after taxation |
20,788,534 |
19,048,298 |
9.1% |
Earnings per share – basic and diluted (Rupees) for profit from continuing operations attributable to the ordinary equity share |
17.12 |
16.60 |
3.1% |
Earnings per share – basic and diluted (Rupees) for profit attributable to the ordinary equity share |
17.1 |
15.6 |
9.6% |
Copyright Mettis Link News
39911