Pakistan two leading banks –HBL and UBL- announced their quarterly results recently. HBL secured a profit of 25.8 billion with almost flat growth whereas UBL earned a profit of Rs 21 billion but it marked a double-digit growth of 10.5 percent in the nine months of 2016 compared with previous year.
HBL earning per share reached Rs 17.47 with a dividend announcement of 3.50 per share. The bank has already paid Rs 7 per share dividend in the current year to its shareholders.
UBL earning per share reached Rs 17.40 with a dividend announcement of Rs 3 per share. The bank has already paid Rs 6 per share dividend in the current year to its shareholders.
The two banks constitute a significant share in the market with immense competition with each other. However, the financial performance of these two banks varied in this quarter.
HBL Financial Results
According to the financial results, HBL declared a consolidated profit after tax of Rs25.8 billion for the first nine months of 2016 and showed almost flat growth.
Overall revenues of the bank also increased by more than Rs 4 billion reaching Rs 83.28 billion by the end of September 2016 as compared to Rs 83.57 billion recorded in the similar period of 2015, showing a decline of Rs 0.29 billion.
In the third quarter, HBL profit dropped slightly to reach Rs 9.78 billion as compared to the same quarter last year’s in which its profit stood at Rs9.98 billion.
UBL Financial Results
United Bank Limited (UBL) has maintained its profitability and showed double-digit growth at end of third quarter with 10.5 percent increase compared to the same period last year.
According to the financial results, the bank profit after tax increased to stand at Rs 21.3 billion in the nine month of 2016 compared to Rs 19.2 billion profit recorded in the same period of 2015.
Overall revenues of the bank also increased by more than Rs 4 billion reaching Rs 60.2 billion by the end of September 2016 as compared to Rs 55 billion recorded in the similar period of 2015.
In the third quarter, the profit growth was comparatively lower than the previous quarter in which it marked a growth of 23 percent whereas its profit dropped by 1.8 percent in the first quarter of 2016.
In the recent quarter it marked a 7 percent growth in performance to reach Rs 7 billion against Rs 6.5 billion recorded in the third quarter of 2015