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UBL reports a drop of 54% in overall Profit after Taxation during the half year ended June 30th 2018: earnings report

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United Bank Limited (UBL) released a summary of their financial earnings for the half year ended on June 30th 2018. The report was finalized in a Board of Directors meeting held on August 2nd, 2018.

As compared to the half year ending on June 30th 2017, UBL’s Net mark-up/return/interest income increased by 0.8%.

Net Reversal of Provision against lending to financial institutions increased considerably by 1378%, whereas Net Provision for Diminution in Value of Investments increased by 292%.

UBL’s Income from dealing in Foreign Currencies also went up, by 61.5%, however Other Income dropped slightly by 10.2%

Among expenses, the bank’s Workers’ Welfare Funds reduced by 40% while Other charges decreased by 93% as well.

UBL reduced its Taxation by 52.4% year the overall Profit after Taxation dropped by 54% during the period under consideration.

Basic and Diluted earnings per share were reported to have dropped from Rs.10.81 per share to Rs.5.06 per share, a decrease of 53.2%

 Profit and Loss Account for the Half Year Ended June 30,2018 (Rupees '000)
  2018 2017 % Change
Mark-up/return/interest earned                      56,158,142                      51,305,607 9.5%
Mark-up/return/interest expensed                   (27,095,623)                   (22,487,513) 20.5%
Net mark-up/return/interest income                      29,062,519                      28,818,094 0.8%
Reversal/(provision) against loans and advances – net                      (3,748,145)                            396,834  
Reversal of provision against lendings to financial institutions – net                            122,149                                8,260 1378.8%
Provision for diminution in value of investments – net                         (740,295)                         (188,888) 291.9%
Bad debts written off directly                            (40,251)                            (24,920) 61.5%
                       (4,406,542)                            191,286  
Net mark-up/return/interest income after provisions                      24,655,977                      29,009,380 -15.0%
Non mark-up/interest income      
Fee, commission and brokerage income                        7,694,571                        7,039,730 9.3%
Dividend income                            810,755                            779,624 4.0%
Income from dealing in foreign currencies                        1,550,144                            959,939 61.5%
Gain on sale of securities – net                  4,735,514.00                  3,996,614.00 18.5%
Unrealized gain of revaluation of investments classified as held for trading                        (1,290.00)                          2,490.00  
Other income                      372,849.00                      415,390.00 -10.2%
Total non mark-up /interest income                15,162,543.00                      13,193,787 14.9%
                       39,818,520                      42,203,167  
Non mark-up/interest expenses      
Administrative expenses                   (20,262,638)                   (18,850,819) 7.5%
Other (provisions)/reversals – net                         (338,980)                                2,508  
Workers' Welfare Fund                         (286,898)                         (478,129) -40.0%
Other charges                              (4,019)                            (58,640) -93.1%
Total non mark-up/interest expenses                    (20,892,535)                   (19,385,080) 7.8%
                       18,925,985                      22,818,087 -17.1%
Share of income associates                            300,412                            370,024 -18.8%
Profit before taxation                      19,226,397                      23,188,111 -17.1%
Extraordinary/unusual item – Accrual in respect of pension liability                      (8,404,635)                                       –    
Taxation                      (4,709,742)                      (9,897,254) -52.4%
Profit after taxation                        6,112,020                      13,290,857 -54.0%
Earnings per share – basic and diluted (Rupees)                                   5.06                                10.81 -53.2%
Posted on: 2018-08-02T12:49:00+05:00

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