August 6, 2020 (MLN): United Bank Limited (UBL) has announced its financial results for the 1HCY20 ended June 30, 2020. As per the results, the bank has posted its net profits of Rs 10.72 billion (EPS: Rs 8.94), showing an increase of 17% YoY against net profits of Rs 9.16 billion of the same period last year.
Here, it is pertinent to mention that the earnings per share are largely in line with market expectations.
The profitability of the bank went up primarily due to higher net interest income (NII), up by 31% YoY to Rs 40 billion on the back of a 29.5% YoY increase in bank’s interest income.
During the period under review, the bank’s non-funded income (NFI) declined by 26% YoY due to lower dividend income (down by 38% YoY) and lower FX income (down by 24% YoY) along with losses from derivatives of Rs 13million.
However, according to Arif Habib Limited, capital gains for the bank went up by 177% YoY as the bank most likely booked gains on fixed income securities. Fee income took a major 25% sequential hit owing to the impact of the pandemic on economic activity as well as SBP waivers on digital transactions.
Meanwhile, the bank’s provisioning expenses stood at Rs 9.95 billion, up by 2.7times YoY, most likely on the overseas book as GCC countries are going through a major economic meltdown following the pandemic outbreak, the research revealed.
During 1HCY20, the tax expenses decreased by 13% YoY to Rs 7.52 billion.
|
Consolidated Profit and Loss Account for the Half-year ended on June 30, 2020 (Rupees '000) |
|||
|---|---|---|---|
|
|
Jun-20 |
Jun-19 |
% Change |
|
Mark-up/return/interest earned |
88,339,565 |
68,241,685 |
29.5% |
|
Mark-up/return/interest expensed |
48,270,433 |
37,656,138 |
28.2% |
|
Net mark-up/return/interest income |
40,069,132 |
30,585,547 |
31.0% |
|
Non mark-up/interest income |
|
|
|
|
Fee, commission, and brokerage income |
6,056,639 |
8,099,318 |
-25.2% |
|
Dividend income |
395,832 |
639,614 |
-38.1% |
|
Foreign exchange income |
1,821,352 |
2,286,903 |
-20.4% |
|
Income /Loss from derivatives |
(13,508) |
85,426 |
– |
|
Gain on sale of securities – net |
858,261 |
309,937 |
176.9% |
|
Other income |
582,766 |
1,727,373 |
-66.3% |
|
Total non-mark-up /interest income |
9,701,342 |
13,148,571 |
-26.2% |
|
Total Income |
49,770,474 |
43,734,118 |
13.8% |
|
Non mark-up/interest expenses |
|
|
|
|
Operating expenses |
20,944,433 |
20,902,009 |
0.2% |
|
Workers' Welfare Fund |
502,933 |
356,662 |
41.0% |
|
Other charges |
152,333 |
2,218 |
6768.0% |
|
Total non-mark-up/interest expenses |
21,599,699 |
21,260,889 |
1.6% |
|
Share of profit of associates |
44,129 |
348,724 |
-87.3% |
|
Profit before provision |
28,214,904 |
22,821,953 |
23.6% |
|
Provisions and write offs-net |
9,952,594 |
3,677,940 |
170.6% |
|
Extra ordinary/ unusual item- charges in respect of pension liability |
– |
– |
– |
|
Profit before taxation from continuing operations |
18,262,310 |
19,144,013 |
-4.6% |
|
Taxation |
7,525,752 |
8,646,392 |
-13.0% |
|
loss from discontinued operations- net of tax |
10,271 |
1,330,512 |
-99.2% |
|
Profit after taxation |
10,726,287 |
9,167,109 |
17.0% |
|
Earnings per share – basic and diluted (Rupees) for profit from continuing operations attributable to the ordinary equity share |
8.95 |
8.58 |
4.3% |
|
Earnings per share – basic and diluted (Rupees) for profit attributable to the ordinary equity share |
8.94 |
7.5 |
19.2% |
Copyright Mettis Link News
36152
