United Bank Limited (UBL) has reported a decline of 18 percent or Rs. 4 billion in profit for nine months ended 30 September 2022, compared to the corresponding period of last year despite a handsome increase in revenues from avenues of interest and non-markup.
According to the financial results, the bank’s profit decreased to Rs. 18.6 billion during the period of January to September 2022 as compared to a profit of Rs. 22.6 billion reported in the same period of the previous year.
The bank interest income surged to Rs. 72.7 billion during the period of January to September 2022 as compared to Rs. 53.6 billion in the corresponding period of the last year, a whopping increase of Rs. 19 billion.
Besides, the non-markup income also grew to Rs. 22.1 billion during the said period as compared to Rs. 17.2 billion reported in the same period of the last year, showing an increase of nearly Rs. 5 billion.
The bank’s expenses also grew to offset its profitability standing at Rs. 38.8 billion showing an increase of Rs. 6.8 billion from the last year.
Higher tax payments have grown by over 90 percent which made a dent in the profitability of the bank. The bank’s tax amount surged to Rs. 31.8 billion in the nine-month of 2022 as compared to Rs. 16.5 billion reported in the same period last year.
The tax structure for the banks has been revised by the present government recently including additional super tax and penalized tax on less Advance to Deposit Ratio, which has taken its toll on the profitability of the many large-sized banks.
The earnings per share (EPS) decreased to 15.33 by end of September. The shareholders also received a Rs. 4 per dividend in addition to the Rs. 9 already paid.
