United Bank earns profit of Rs32 billion in 2022

• The United Bank Limited (UBL) announced annual financial results on Wednesday.
• EPS was Rs25.8 for the year, and the company declared a bumper cash dividend of Rs9/share.
• Net interest income for CY22 clocked-in at Rs257.8 billion, up 69% YoY.

KARACHI: The United Bank Limited (UBL) on Wednesday announced annual financial results, wherein the bank posted consolidated profit-after-tax of Rs32 billion for the year 2022, compared with Rs30.6 billion in the preceding year.

The bank declared earnings per share (EPS) of Rs25.8 for the year under review, compared with Rs24.8 in the preceding year.

Along with the results, the company has announced a bumper cash dividend of Rs9/share, taking the full-year dividend to Rs22/share.

The net interest income for CY22 clocked-in at Rs257.8 billion against Rs152.7 billion in the same period of the last year, up 69 per cent YoY.

The increase is mainly attributable to assets re-pricing and balance-sheet expansion. On a quarter-on-quarter basis, the net interest income (NII) recorded an increase of 2 per cent in the fourth quarter of CY22, to clock-in at Rs76.5 billion.

The non-markup income recorded an increase of 50 per cent in CY22, mainly attributable to the rising contribution from the fee income and a twofold increase in the forex income.

The bank recorded provision charges of Rs17.6 billion in CY22 against the reversal of Rs1.4 billion in the same period of the last year.

To note, the company recorded provisioning of Rs10.7 billion in the fourth quarter of CY22, possibly due to the economic slowdown.

During CY22, the operating expenses increased 18 per cent YoY, mainly due to branch-related expenses and inflationary pressures.

The effective tax rate for the fourth quarter of CY22 clocked-in at 25 per cent against 59 per cent in the third quarter of CY22. The decline is possibly attributable to reversal on account of the advance-to-deposit (ADR) ratio-related taxation. However, we await further clarity on this.

Also Read

The Future Summit starts in Karachi

KARACHI: The sixth edition of “The Future Summit” (TFS) kicked off with...