United Bank Limited (UBL) reported a profit of Rs. 11.8 billion in the first half of 2022 after a 20 percent decline from the profit reported in the same period of the last year.
According to the financial statement, the profit of the bank decreased to Rs. 11.8 billion during the period of January to July 2022 as compared to Rs. 14.9 billion reported in the same period of the last calendar year, showing a decline of Rs. 3.3 billion in profitability in year-on-year terms.
In the first quarter of 2022, UBL overtook HBL in profitability which stood at Rs. 9.5 billion as compared to its competitor which reported a profit of Rs. 8.6 billion. In the next quarter, UBL profit reported a profit of Rs. 2.3 billion and HBL made a profit of Rs. 3.4 billion.
Cumulatively, UBL’s profit stands at Rs. 11.8 billion, which is lower than the profit of HBL which was recorded at Rs. 12.1 billion by the end of the first half of 2022.
So far, UBL stands as the second most profitable bank after HBL though the bank’s position can be replaced by its competition such as the National Bank of Pakistan, MCB Bank, and Meezan Bank with the announcement of their results in the coming weeks.
Along with the result, the bank has also announced an interim cash dividend of Rs. 4 per share in H1.
The steep decline in the profitability of the bank was reported due to a massive tax imposed by the government on the commercial banks in the current financial year, which squeezed the progressive growth of banks’ profitability in Pakistan apparently.
At present, UBL is reinvesting in its branch network with relocation to more commercially viable locations, renovation of branches, and improving service levels, according to its financial report. The bank’s management lays its focus on branch banking, staff training, and technological advancement.