United Bank Limited (UBL) has posted an all-time high quarterly profit of Rs. 14.47 billion in the quarter that ended on March 31, 2023 (1QCY23), up 54 percent year-on-year (YoY) from Rs. 9.37 billion in 1QCY22.
The bank posted consolidated earnings of Rs. 11.62 per share, up 53 percent YoY and 9 percent QoQ.
Along with the result, the bank announced its highest-ever interim cash dividend of Rs. 11 per share, higher than industry expectations of Rs. 5-6 per share for 1QCY23. The result came above industry expectations primarily due to higher-than-expected Net Interest Income (NII), lower provisions, and higher-than-expected FX Income.
Net Interest Income for 1QCY23 settled at Rs. 34.9 billion, depicting a strong growth of 56 percent YoY and 10 percent QoQ amid rising asset yields.
Total provisions saw an increase on a YoY basis but a decline of 75 percent QoQ mainly due to low provision on Eurobond.
Non-Interest Income grew by 37 percent YoY to Rs. 9.25 billion, primarily driven by FX income of Rs. 4.4 billion up 3.3x YoY for the quarter. To highlight, the bank recorded an FX income of Rs. 832 million in 4QCY22.
Operating expenses also saw an increase of 25 percent YoY and 1 percent QoQ likely driven by inflationary pressures. Despite the increase in operating expenses, the cost-to-income ratio of the bank improved to 37 percent In 1QCY23 against 45 percent recorded in 1QCY22.
The effective tax rate of the bank clocked in at 42 percent in 1QCY23 vs. 40 percent in 1QCY22 and 25 percent in 4QCY22.
Stay Connected with ProPakistani
Get the latest business news, market insights, and economic updates wherever you prefer.
Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.
Banks are posting higher profits only because of increase in policy rates by SBP. Banks have not done anything extra ordinary. Whereas all of this is going from government’s pocket or private sector borrower’s pocket. These days commercial and industrial borrowers are facing many challenges including increase in power tariff, fuel price and commodity prices. Increase in borrowing rate has multiplied their problems and now they are only working to pay heavy financing cost to Banks……sad story……
UBL bank has earned high profits,but the past history shows,15:years back ,the bank gave nothing to the retiring staff as compared to other banks Still,ABL, HBL and MCB banks are much better in service and everything as compared to UBL.
.