UBL Posts a 63% Decline in Profits in Q1 2018

United Bank Limited (UBL) has announced its financial results for Q12018 where the bank reported earnings of Rs 2.64 billion, down by 63.62% as compared to Rs 7.25 billion in the corresponding period last year.

The earnings per share of the bank was down to Rs 2.16 from Rs 5.93.

Along with the result, UBL has announced an interim dividend of PKR 3/share.

The result was below the market expectations mainly due to the recognition of Rs 6.4 billion (Rs5.2/share before tax) one-off expense relating to pension case liability.


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In Q1 CY2018, Net Interest Income (NII) stayed flat YoY while Non-Markup Income surged by 11% mainly due to 34% higher capital gains in the quarter.

Provision expenses stayed on the higher side which can be attributed to provisioning expenses pertaining to the bank’s UAE loan book.

Non-core income of the bank increased by 16%YoY mainly on account of higher capital gains (Rs 3.1billion) whereas operating costs of the bank remained relatively flat (+2%YoY), which alleviated some pressure on bank’s bottom-line.


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On a sequential basis, PBT ( Pension costs ) was up 18.9% on the back of higher capital gains which more than offset the decline in fee income of 21.1% and 14.6% increase in provisioning costs.

The non-mark up income grew by 15% YoY to Rs 8 billion with a 34% increase in gain on sale of securities.

UBL’s share at the bourse closed at Rs 201.30, down by 0.16% with a turnover of 0.57 million shares.

Unconsolidated Profit and Loss Account – For the Three Months Ended, March 31st 2018
Key Financials March, 2018 March, 2017 % Change
Amounts in PKR ‘000
Net mark-up/return/interest earned 28,146,657 23,888,226 17.83%
Net mark-up/return/interest earned after provisions 11,869,414 13,616,555 -12.83%
Fee, commission and brokerage income 2,946,665 2,786,924 5.73%
Dividend Income 570,910 552,168 3.39%
Income from Foreign Currencies 535,561 418,213 28.06%
Capital gain on sale of securities – net 3,067,094 2,340,505 31.04%
Other income 189,762 183,345 3.50%
Total non-mark-up/interest income 7,309,287 6,275,556 16.47%
Administrative Expenses 8,654,926 8,519,662 1.59%
Other provisions – net 73,038 15,828 361.45%
Other charges/reversals 432 318 35.85%
Total non-mark-up/interest expenses 8,706,147 8,736,450 -0.35%
Profit before Extraordinary/unusual item and taxation 10,472,554 11,155,661 -6.12%
Extraordinary Item – Pension Cost 6,404,635
Profit before Taxation 4,067,919 11,155,661 -63.62%
Profit after Taxation 2,645,253 7,255,145 -63.59%


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