UBL realizes decent growth in annual profits, up by 34% YoY

February 19, 2020 (MLN): United Bank Limited (UBL) has announced its financial performance for CY19 wherein the bank on a standalone basis has reaped a decent growth of 33.7% in its net profits after tax to Rs 20.7 billion from Rs 15 billion earned in CY18.

This translated into bank’s Earnings per share (EPS) which exhibited a rise of 30% from Rs 12.47 per share to Rs 16.6 per share for the profit from continuing operations attributable to the ordinary equity share.

EPS for profits after tax increased from Rs 12.65 per share to Rs 15,6 per share.

The profits earned by UBL during the year were mainly attributable to higher Net Interest Income (NII). Lower provisioning expenses and low base of operating expenses.

The Bank's Net Interest Income (NII) was recorded at Rs. 63.34 billion, increasing by 9.3% over the year. The State Bank of Pakistan (SBP) raised the policy rate by 475 bps in the last one year, increasing the benchmark rate from 8.50% at Sep 2018 to 13.25% in Sep 2019. The active buildup in the low-cost deposits base, the repricing of earning assets in line with the rising interest rates and an efficient deposits mix has enabled the bank to improve its NII in the period under review.

Non-Markup income was recorded at Rs. 23.5 billion, down 9.4% YoY mainly owing to lower capital gains of Rs. 216.6 million against Rs 3.8 billion in CY18 which put a limit to bank’s profitability.

Moreover, Provisions of the bank dropped by 41%, YoY to Rs 7.3 billion, but still remained high on the back of Impairment charge against investments and Provision against Non-Performing Loans (NPLs) especially against the international advance portfolio.

Alongside financial results, the Board of Directors of the UBL announced a final cash dividend of Rs 4 per share i.e. 40%. This is in addition to Interim Dividends of Rs 8 per share i.e. 60% paid earlier.

Consolidated Profit and Loss Account for the year ended December 31, 2019 (Rupees '000)

 

Dec-19

Dec-18

% Change

Mark-up/return/interest earned

 157,277,853

 116,833,977

34.6%

Mark-up/return/interest expensed

 93,936,935

 58,890,757

59.5%

Net mark-up/return/interest income

 63,340,918

 57,943,220

9.3%

Non mark-up/interest income

 

 

 

Fee, commission and brokerage income

 15,631,895

 15,859,283

-1.4%

Dividend income

 1,123,261

 1,683,678

-33.3%

Income from dealing in foreign currencies

 4,669,102

 3,656,352

27.7%

Income /Loss from derivatives

 64,627

 (87,716)

-173.7%

Gain on sale of securities – net

 216,670

 3,885,834

-94.4%

Other income

 1,852,427

 1,014,156

82.7%

Total non-mark-up /interest income

 23,557,982

 26,011,587

-9.4%

Total Income

 86,898,900

 83,954,807

3.5%

Non mark-up/interest expenses

 

 

 

Operating expenses

 43,843,588

 42,047,048

4.3%

Workers' Welfare Fund

 747,859

 (2,163,314)

-134.6%

Other charges

 40,109

 114,798

-65.1%

Total non-mark-up/interest expenses

 44,631,556

 39,998,532

11.6%

Share of income/(loss) of associates

 776,853

 699,294

 

Profit before provisions

 43,044,197

 44,655,569

-3.6%

Provisions and write offs-net

 7,313,543

 12,446,609

-41.2%

Extra ordinary/ unusual item- charges in respect of pension liability

 –  

 6,657,216

 

Profit before taxation

 35,730,654

 25,551,744

39.8%

Taxation

 15,457,158

 10,384,383

48.9%

loss from discontinued operations- net of tax

 –  

 –  

 

Profit after taxation

 20,273,496

 15,167,361

33.7%

Earnings per share – basic and diluted (Rupees) for profit from continuing operations attributable to the ordinary equity share

 16.60

 12.74

30.3%

Earnings per share – basic and diluted (Rupees) for profit attributable to the ordinary equity share

15.6

12.65

23.3%

 

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Posted on: 2020-02-19T13:05:00+05:00

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