October 20, 2021 (MLN): United Bank Limited (UBL) has revealed its financial statement today for 9MCY21 ended September 30, 2021, as per which the bank posted profit worth Rs21.87billion, depicting a massive surge of 42.2% YoY, compared to 9MCY20.
This has translated into earnings per share (EPS) which clocked in at Rs17.76, increased by 38.8%, against EPS Rs12.8 in the same period last year (SPLY).
The notable surge in net profit is primarily attributable to the notable increase in non-funded income (NFI) and provision reversals.
During the period under review, the bank’s NFI jumped by 22.5% YoY to Rs17.42bn owing to the massive surge in gain on securities by 3x YoY to clock in at Rs2.99bn. In addition, the increment in fee and commission income (up by 13.9%) and dividend income (88.5%) have also been accelerated by NFI.
Going by the income statement sent to PSX, the company witnessed a decline of 6.7% in its net interest income (NII) to stand at Rs55.72bn, compared to SPLY. The decline in NII is due to a decline in interest earning by 9.4% despite decreasing interest expense by 12% to Rs56.6bn.
It is pertinent to mention that the bank posted a decline under its foreign exchange head by 13.5% to stand at Rs2.64bn in 1HCY21, compared to Rs3.05bn in SPLY.
The bank noted a 5.8% increment in its non-markup interest expense to lock in at Rs34.53bn during 9MCY21, against Rs32.62bn in SPLY.
In addition, the bank observed provision reversals of Rs865.82mn during the review period compared to the hefty provision expenses of Rs15.45bn paid in the corresponding period last year.
On the tax front, the bank paid Rs16.8bn, 57.6% more than the amount paid in 9MCY20.
|
Consolidated Profit and Loss Account for the nine months ended September 30, 2021 (Rupees '000) |
|||
|---|---|---|---|
|
Sep-21 |
Sep-20 |
% Change |
|
|
Mark-up/return/interest earned |
112,325,882 |
123,933,330 |
-9.4% |
|
Mark-up/return/interest expensed |
56,603,602 |
64,208,325 |
-11.8% |
|
Net mark-up/return/interest income |
55,722,280 |
59,725,005 |
-6.7% |
|
Non mark-up/interest income |
|||
|
Fee, commission and brokerage income |
10,533,885 |
9,250,333 |
13.9% |
|
Dividend income |
958,470 |
508,512 |
88.5% |
|
Income from dealing in foreign currencies |
2,640,885 |
3,051,817 |
-13.5% |
|
Income /Loss from derivatives |
43,117 |
(162,204) |
– |
|
Gain on sale of securities – net |
2,991,492 |
981,510 |
204.8% |
|
Other income |
249,557 |
592,901 |
-57.9% |
|
Total non mark-up /interest income |
17,417,406 |
14,222,869 |
22.5% |
|
Total Income |
73,139,686 |
73,947,874 |
-1.1% |
|
Non mark-up/interest expenses |
|||
|
Operating expenses |
(33,662,561) |
(31,763,352) |
6.0% |
|
Workers' Welfare Fund |
(782,314) |
(706,298) |
10.8% |
|
Other charges |
(85,910) |
(160,328) |
-46.4% |
|
Total non mark-up/interest expenses |
(34,530,785) |
(32,629,978) |
5.8% |
|
Share of income/(loss) of associates |
247,361 |
174,924 |
|
|
Profit beofre provisions |
38,856,262 |
41,492,820 |
-6.4% |
|
Provisions and write offs-net |
865,823 |
(15,453,220) |
– |
|
Extra ordinary/ unusual item- charges in respect of pension liability |
– |
||
|
Profit before taxation |
39,722,085 |
26,039,600 |
52.5% |
|
Taxation |
(16,783,206) |
(10,646,054) |
57.6% |
|
loss from discontinued operations- net of tax |
(1,070,186) |
(11,031) |
9601.6% |
|
Profit after taxation |
21,868,693 |
15,382,515 |
42.2% |
|
Earnings per share – basic and diluted (Rupees) for profit from continuing operations attributable to the ordinary equity holders of the bank |
18.64 |
12.81 |
45.5% |
|
Earnings per share – basic and diluted (Rupees) for profit attributable to the ordinary equity holders of the Bank |
17.76 |
13 |
38.8% |
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