October 25, 2023 (MLN): United Bank Limited (PSX: UBL) has revealed its financial statement today for the 9MCY23, as per which the bank posted a profit worth Rs42.57 billion [EPS: Rs34.05], depicting a surge of 2.27x YoY, compared to the profit of Rs18.79bn [EPS: Rs15.05] reported in the same period last year (SPLY).
Along with the 9MCY23, the Board of Directors (BoD) of UBL has recommended an interim cash dividend for 3QCY23 at Rs11/- per share i.e. 110%.
This is in addition to interim Dividend(s) already paid at Rs22/- per share i.e. 220%.
It is worth noting that this was the highest dividend payout and PAT ever recorded.
Going by the income statement, the bank witnessed an increase of 47.4% YoY in its net interest income (NII) to stand at Rs111.89bn, compared to Rs75.91bn in SPLY. The surge in NII is due to a jump in interest-earning (Rs346.95bn), up by 91.4% YoY.
During the period under review, the bank’s total non-markup income dropped by 44.9% YoY to Rs13.12bn, owing to a massive loss on the sale of securities of Rs12.77bn, compared to a gain of Rs757.43m recorded in the SPLY.
However, UBL’s foreign exchange income went up by 15.4% YoY to Rs14.61bn during the review period.
Moreover, the bank’s income through dividends and foreign currency deals also improved to Rs1.12bn and Rs9.34bn respectively in 9MCY23.
In addition, UBL reported a provision reversal of Rs9.54bn during the review period, compared to a provision expense of Rs6.83bn recorded in 9MCY22.
On the expense side, the total non-markup expenses increased by 26.8% to Rs52.61bn in 9MCY23 compared to Rs41.49bn in 9MCY22.
The increase was attributed to the jump of 26.2% YoY in the operating expenses from Rs40.43bn in 9MCY22 to Rs51.02bn in 9MCY23.
Similarly, the bank’s expenses related to the Workers' Welfare Fund and other charges also went up during the review period.
On the tax front, the bank paid Rs38.55bn, 20.3% higher than the amount paid in 9MCY22.
| Consolidated Profit and Loss Account for the nine months ended September 30, 2023 (Rupees in 000) | |||
|---|---|---|---|
| Sep-23 | Sep-22 | % Change | |
| Mark-up/return/interest earned | 346,949,346 | 181,250,545 | 91.4% |
| Mark-up/return/interest expensed | 235,054,918 | 105,336,696 | 123.1% |
| Net mark-up/return/interest income | 111,894,428 | 75,913,849 | 47.4% |
| Non-mark-up/interest income | |||
| Fee, commission and brokerage income | 14,612,311 | 12,658,183 | 15.4% |
| Dividend income | 1,120,477 | 918,331 | 22.0% |
| Income from dealing in foreign currencies | 9,369,247 | 7,764,244 | 20.7% |
| Income /Loss from derivatives | (43,211) | 959,426 | – |
| Gain on sale of securities – net | (12,767,227) | 757,431 | – |
| Other income | 826,684 | 758,702 | 9.0% |
| Total non mark-up /interest income | 13,118,281 | 23,816,317 | -44.9% |
| Total Income | 125,012,709 | 99,730,166 | 25.4% |
| Non mark-up/interest expenses | |||
| Operating expenses | 51,021,451 | 40,427,500 | 26.2% |
| Workers' Welfare Fund | 1,559,009 | 1,042,793 | 49.5% |
| Other charges | 32,203 | 17,789 | 81.0% |
| Total non mark-up/interest expenses | 52,612,663 | 41,488,082 | 26.8% |
| Share of income/(loss) of associates | (820,959) | (627,287) | – |
| Profit before provisions | 71,579,087 | 57,614,797 | 24.2% |
| Provisions and write offs-net | 9,535,408 | (6,828,622) | – |
| Extraordinary/ unusual item- charges in respect of pension liability | |||
| Profit before taxation | 81,114,495 | 50,786,175 | 59.7% |
| Taxation | (38,546,968) | (32,040,323) | 20.3% |
| loss from discontinued operations- net of tax | – | 46,870 | |
| Profit after taxation | 42,567,527 | 18,792,722 | 126.5% |
| Earnings per share – basic and diluted (Rupees) | 34.05 | 15.05 | – |
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Posted on: 2023-10-25T12:20:29+05:00
