United Bank Limited (UBL) reported a handsome growth of 23 percent in profits during the first quarter of 2022.
According to the financial results, the bank’s profit stood at Rs. 9.39 billion from January to March 2022 as compared to Rs. 7.58 billion reported in the similar period of 2021, showing an increase of Rs. 1.8 billion or 23 percent.
UBL has overtaken Habib Bank Limited in terms of profitability after a gap of many years.
The rise in earnings was due to a jump in total income and a decline in provisioning. The total income of the bank was reported at Rs. 29.13, up by 22.6 percent compared to Rs. 23.76 billion.
UBL reported a profit of Rs. 9.3 billion as against HBL, which reported a profit of Rs. 8.6 billion in the first quarter of 2022. The profit before tax of UBL stood at Rs. 15.7 billion compared to HBL’s Rs. 14.6 billion.
The net interest income of UBL was reported at Rs. 22.36 billion, up by 28 percent compared to Rs. 17.50 billion.
In 2021, UBL made a profit of Rs. 30.5 billion and remained at number three in terms of profitability throughout the industry. On the other hand, HBL made an annual profit of Rs. 35.5 billion and remained the most profitable bank in the country.
UBL recorded 47 percent year-on-year profit growth in 2021 compared to HBL’s annual profit growth of 15 percent year-on-year. UBL’s profit growth in the first quarter of 2022 stood at 23 percent, whereas HBL’s profit growth stood at less than one percent.
It seems that the competition between these two banks is set to intensify in the coming months.
The interest income of UBL stood at Rs. 22.3 billion in the first quarter of 2022 compared to Rs. 17.5 billion reported in the same period of the last year. The non-markup interest stood at Rs. 13 billion in Q1 of 2022 as against Rs. 11 billion reported in Q1 of 2021.
UBL’s earnings per share also increased to Rs. 7.58 from Rs. 6.21. The board of directors announced the interim cash dividend of Rs. 5 per share.