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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