February 20, 2019 (MLN): United Bank Limited (UBL) has posted hefty decline in its annual gains for the period ended December 2018, as it reported net gains worth Rs.15.1 billion (EPS: Rs.12.65) down by 42%.
The profits posted during the corresponding period (Rs.25.95 billion, EPS: Rs.21.2) of last year were nearly Rs.11 billion higher.
The decline in earnings was attributed to almost no growth in the net-mark-up income. Although non-mark-up income showed some improvement of 9.6%, it was countered by increase in non-mark-up expense which grew by 2.8%.
The equity market expected higher declines in UBL’s earnings, having accredited the results to heavy provisioning expenses from foreign operations.
Apart from this, UBL has reported a final Cash Dividend at Rs.3 per share, that is, 30% in addition to Interim Dividends already paid at Rs.8 per share (80%).
|
Profit and loss account for the six months ended December 31 2018 (Rupees'000) |
|||
|---|---|---|---|
|
|
Dec-18 |
Dec-17 |
% Change |
|
Mark-up / return / interest earned |
117,363,124 |
110,579,895 |
6.13% |
|
Mark-up / return / interest expensed |
59,115,489 |
52,487,753 |
12.63% |
|
Net mark-up / interest income |
58,247,635 |
58,092,142 |
0.27% |
|
Non mark-up / interest income |
|
|
|
|
Fee and commission income |
15,886,753 |
14,831,990 |
7.11% |
|
Dividend income |
1,683,678 |
1,733,757 |
-2.89% |
|
Foreign exchange income |
3,662,854 |
2,150,117 |
70.36% |
|
(Loss) / income from derivatives |
-87,716 |
32,793 |
-367.48% |
|
Gain on securities – net |
4,484,066 |
4,799,893 |
-6.58% |
|
Other income |
1,014,156 |
747,535 |
35.67% |
|
Total non-mark-up / interest income |
26,643,791 |
24,296,085 |
9.66% |
|
Total income |
84,891,426 |
82,388,227 |
3.04% |
|
Non mark-up / interest expenses |
|
|
|
|
Operating expenses |
42,492,994 |
38,455,334 |
10.50% |
|
Workers' Welfare Fund |
-2,163,314 |
814,699 |
-365.54% |
|
Other charges |
114,798 |
59,688 |
92.33% |
|
Total non-mark-up / interest expenses |
40,444,478 |
39,329,721 |
2.83% |
|
Share of profit of associates |
699,294 |
459,702 |
52.12% |
|
Profit before provisions |
45,146,242 |
43,518,208 |
3.74% |
|
Provisions and write offs – net |
13,101,543 |
2,628,801 |
398.38% |
|
Extra ordinary / unusual item – charge in respect of pension liability |
6,657,216 |
|
|
|
Profit before taxation |
25,387,483 |
40,889,407 |
-37.91% |
|
Taxation |
10,337,929 |
14,934,403 |
-30.78% |
|
Profit after taxation |
15,049,554 |
25,955,004 |
-42.02% |
|
Earnings per share – basic and diluted |
12.65 |
21.20 |
-40.33% |
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