April 23, 2020 (MLN): United Bank Limited (UBL) has unveiled its financial results today for the quarter ended on March 31, 2020, wherein the bank reported a marginal increase in net profits by 1.4% YoY to Rs 4.9 billion against Rs4.83 billion in the corresponding period of last year.
The Earning per share of the bank clocked in at Rs 3.89 per shares. Alongside, financial results, the bank also announced an Interim Cash Dividend of Rs 2.50 per share i.e. 25% for the quarter mentioned above. This dividend was lower than the previous 2Qs in order to preserve the capital base.
During the quarter, the bank managed to retain profits mainly on the back of Net Interest Income which surged by 18.9% YoY to Rs 17.78 billion against Rs 14.96 billion due to higher interest rate. However hefty provisioning expenses due to poor equity market performance and provisioning on overseas loan book put a check on the bank’s income.
However, the bank witnessed a decline in FX income and dividend income by 19% and 21.5% respectively, but a huge capital gain of Rs 458 million mitigated the impact of above two and contributed further in lifting bank’s profitability up.
|
Consolidated Profit and Loss Account for the Quarter ended on March 31, 2020 (Rupees '000) |
|||
|---|---|---|---|
|
|
Mar-20 |
Mar-19 |
% Change |
|
Mark-up/return/interest earned |
44,374,183 |
32,137,781 |
38.1% |
|
Mark-up/return/interest expensed |
26,584,742 |
17,170,616 |
54.8% |
|
Net mark-up/return/interest income |
17,789,441 |
14,967,165 |
18.9% |
|
Non-mark-up/interest income |
|
|
|
|
Fee, commission and brokerage income |
3,461,309 |
4,131,123 |
-16.2% |
|
Dividend income |
177,699 |
226,422 |
-21.5% |
|
Income from dealing in foreign currencies |
770,976 |
952,802 |
-19.1% |
|
Income /Loss from derivatives |
(11,274) |
51,482 |
-121.9% |
|
Gain on sale of securities – net |
458,052 |
41,348 |
1007.8% |
|
Other income |
223,403 |
108,218 |
106.4% |
|
Total non-mark-up /interest income |
5,080,165 |
5,511,395 |
-7.8% |
|
Total Income |
22,869,606 |
20,478,560 |
11.7% |
|
Non mark-up/interest expenses |
|
|
|
|
Operating expenses |
10,314,814 |
9,762,408 |
5.7% |
|
Workers' Welfare Fund |
219,422 |
184,081 |
19.2% |
|
Other charges |
181,039 |
1,985 |
9020.4% |
|
Total non-mark-up/interest expenses |
10,715,275 |
9,948,474 |
7.7% |
|
Share of income/(loss) of associates |
(147,536) |
243,571 |
|
|
Profit before provisions |
12,006,795 |
10,773,657 |
11.4% |
|
Provisions and write offs-net |
3,701,317 |
883,020 |
319.2% |
|
Extra ordinary/ unusual item- charges in respect of pension liability |
– |
– |
|
|
Profit before taxation |
8,305,478 |
9,890,637 |
-16.0% |
|
Taxation |
3,400,320 |
5,052,344 |
-32.7% |
|
loss from discontinued operations- net of tax |
– |
– |
|
|
Profit after taxation |
4,905,158 |
4,838,293 |
1.4% |
|
Earnings per share – basic and diluted (Rupees) for profit from continuing operations attributable to the ordinary equity share |
3.98 |
3.94 |
1.0% |
|
Earnings per share – basic and diluted (Rupees) for profit attributable to the ordinary equity share |
3.98 |
3.3 |
20.6% |
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