October 18, 2018 (MLN): United Bank Limited (UBL)’s consolidated profits for the nine month period ended on September 30, 2018 shrunk by half due to augmented provisions and accruals for pension liabilities.
As compared to the period ended September 30, 2017, UBL’s net mark-up/return/interest income after provisions dropped significantly by 16% or Rs.7 billion.
While income from dealing in foreign currencies multiplied by more than half, its impact was nullified due to higher administrative expenses.
In addition to this, accruals in respect of pension liability accounted for another Rs.8.7 billion in outflows, dragging the profits down from Rs.19.5 billion to Rs.9.5 billion over the year.
The company’s earnings per share have logged in at Rs.7.96 per share, marking a negative change of about 50%.
In its Board of Directors meeting, the company further recommended an interim cash dividend at Rs.2 per share (20%), in addition to the interim dividend already paid at Rs.6 per share (60%).
Consolidated Profit and Loss Account for the nine months ended September 30,2018 (Rupees '000) |
|||
---|---|---|---|
|
Sep-18 |
Sep-17 |
% Change |
Mark-up/return/interest earned |
86,991,106 |
80,621,771 |
7.9% |
Mark-up/return/interest expensed |
(43,553,484) |
(37,245,028) |
16.9% |
Net mark-up/return/interest income |
43,437,622 |
43,376,743 |
0.1% |
Provisions against loans and advances – net |
(6,190,069) |
(103,188) |
5898.8% |
Reversal of provision against lendings to financial institutions – net |
124,118 |
8,260 |
1402.6% |
Provision for diminution in value of investments – net |
(1,344,757) |
(209,967) |
540.5% |
Bad debts written off directly |
(104,454) |
(136,637) |
-23.6% |
|
(7,515,162) |
(441,532) |
|
Net mark-up/return/interest income after provisions |
35,922,460 |
42,935,211 |
-16.3% |
Non mark-up/interest income |
|
|
|
Fee, commission and brokerage income |
11,447,163 |
10,470,520 |
9.3% |
Dividend income |
1,045,814 |
1,031,875 |
1.4% |
Income from dealing in foreign currencies |
2,843,801 |
1,535,891 |
85.2% |
Gain on sale of securities – net |
4,793,268 |
4,295,042 |
11.6% |
Unrealized gain of revaluation of investments classified as held for trading |
6 |
(20,907) |
-100.0% |
Other income |
632,474 |
598,064 |
5.8% |
Total non-mark-up /interest income |
20,762,526 |
17,910,485 |
15.9% |
|
56,684,986 |
60,845,696 |
|
Non mark-up/interest expenses |
|
|
|
Administrative expenses |
(30,733,737) |
(28,462,966) |
8.0% |
Other (provisions)/write-offs – net |
(473,456) |
(76,173) |
521.6% |
Workers' Welfare Fund |
(424,918) |
(638,724) |
-33.5% |
Other charges |
(43,358) |
(59,039) |
-26.6% |
Total non-mark-up/interest expenses |
(31,675,469) |
(29,236,902) |
8.3% |
|
25,009,517 |
31,608,794 |
-20.9% |
Share of income/(loss) of associates |
455,007 |
342,570 |
32.8% |
Profit before taxation |
25,464,524 |
31,951,364 |
-20.3% |
Extraordinary/unusual item – Accrual in respect of pension liability |
(8,746,607) |
– |
|
Taxation |
(7,224,512) |
(12,498,938) |
-42.2% |
Profit after taxation |
9,493,405 |
19,452,426 |
-51.2% |
Earnings per share – basic and diluted (Rupees) |
7.96 |
15.81 |
(0.50) |
Copyright Mettis Link News
23737