August 03, 2022 (MLN): United Bank Limited (UBL) has announced its financial statement today for 1HCY22 ended June 30, 2022, as per which the bank posted a net profit of Rs12.2 billion, 19% lower when compared to a profit of Rs15.04bn recorded in the same period last year, mainly due to higher provisions and taxation.
This has translated into earnings per share (EPS) which clocked in at Rs9.73 in 1HCY22 against EPS of Rs12.16 in the same period last year (SPLY).
Along with the half-yearly financial results, the board of directors of UBL has also announced an interim cash dividend for the period ended June 30, 2022, at Rs4 per share i.e., 40%.
Going by the income statement, the bank witnessed an increase of 29.3% YoY in its net interest income (NII) to stand at Rs47bn, compared to SPLY due to a massive 52% increase in interest income. While 76% jump in interest expenses restricted NII growth.
During the period under review, the bank’s non-funded income (NFI) went up by 39% YoY to Rs15.6bn owing to the massive surge in foreign exchange income by 3.75x YoY and income derivatives. However, capital gain on securities plunged by 75% YoY to 648 million during 1HCY22.
Meanwhile, the bank booked a provisioning expense of Rs1.37bn during the review period compared to the provisioning reversal of Rs158mn in the corresponding period last year, affecting the financial health of the bank.
On the tax front, the bank paid Rs22bn, 2.04 times YoY higher than the amount paid in 1HCY21 owing to additional taxation measures taken under Finance Bill 2022.
|
Consolidated Profit and Loss Account for the Half-year ended on June 30, 2022 (Rupees 000) |
|||
|---|---|---|---|
|
|
Jun-22 |
Jun-21 |
% Change |
|
Mark-up/return/interest earned |
105,847,586 |
69,804,068 |
51.6% |
|
Mark-up/return/interest expensed |
58,857,098 |
33,469,771 |
75.9% |
|
Net mark-up/return/interest income |
46,990,488 |
36,334,297 |
29.3% |
|
Non mark-up/interest income |
|
|
|
|
Fee and commission income |
8,372,389 |
7,121,063 |
17.6% |
|
Dividend income |
704,274 |
435,072 |
61.9% |
|
Foreign exchange income |
4,729,777 |
1,260,733 |
275.2% |
|
Income from derivatives |
701,163 |
8,758 |
7906.0% |
|
Gain on sale of securities – net |
647,948 |
2,583,607 |
-74.9% |
|
Other income |
478,911 |
186,607 |
156.6% |
|
Total non mark-up /interest income |
15,634,462 |
11,595,840 |
34.8% |
|
Total Income |
62,624,950 |
47,930,137 |
30.7% |
|
Non mark-up/interest expenses |
|
|
|
|
Operating expenses |
25,990,861 |
21,793,028 |
19.3% |
|
Workers' Welfare Fund |
704,603 |
521,852 |
35.0% |
|
Other charges |
15,962 |
39,494 |
-59.6% |
|
Total non mark-up/interest expenses |
26,711,426 |
22,354,374 |
19.5% |
|
Share of profit of associates |
51,615 |
224,786 |
-77.0% |
|
Profit before provision |
35,965,139 |
25,800,549 |
39.4% |
|
(Reversals) Provisions and write offs-net |
1,367,770 |
(157,933) |
– |
|
Profit before taxation from continuing operations |
34,597,369 |
25,958,482 |
33.3% |
|
Taxation |
22,444,112 |
11,019,580 |
103.7% |
|
Profit from discontinued operations- net of tax |
45,788 |
106,474 |
– |
|
Profit after taxation |
12,199,045 |
15,045,376 |
-18.9% |
|
Earnings per share – basic and diluted (Rupees) for profit from continuing operations attributable to the ordinary equity holders of the bank |
9.73 |
12.16 |
-20.0% |
|
Earnings per share – basic and diluted (Rupees) for profit attributable to the ordinary equity holders of the Bank |
9.77 |
12.24 |
-20.2% |
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Posted on:2022-08-03T14:41:50+05:00
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