UBL records massive surge in profits, up by 42% in 9MCY21

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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Posted on: 2021-10-20T15:00:55+05:00

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