UBL’s net profits during 1QCY20 increase marginally

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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Posted on: 2020-04-23T11:31:00+05:00

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