UBL posts 20% jump in net profit during first-half

KARACHI: The United Bank Limited (UBL) has posted an increase of 20 per cent to Rs7.6 billion in its net profit for the half-year ended June 30, 2021, a bourse filing said on Monday.

According to the financial results announced by the bank, the profit-after-tax of the United Bank rose to Rs7.6 billion during January–June 2021, compared with Rs6.34 billion in the corresponding period of the last year.

The bank declared earnings per share (EPS)l of Rs6.2 for the period under review, compared with Rs5.18 during the same period last year.

The board of directors of the bank approved an interim cash dividend of Rs4/share, i.e., 40 per cent for the half-year ended June 30, 2021. This is in addition to the interim dividend already paid at Rs4/share, i.e., 40 per cent.

However, the board has not approved any bonus shares, right shares or any other entitlement.

The net interest income of the bank settled at Rs36 billion during the period under review, falling 9 per cent year-on-year (YoY) on the back of a 21 per cent reduction in the interest earned, according to analysts at Arif Habib Limited.

Meanwhile, there was an 8 per cent rise in the net interest income on a quarter-on-quarter (QoQ) basis, which possibly came on account of volumetric growth.

The bank continued to maintain an impressive control on its operating expenses, which showed a meagre 3 per cent YoY and 2 per cent QoQ jump, taking the cost/income to 49 per cent during the first-half of the current fiscal year against 43 per cent during the same period last year.

The bank booked a net reversal of Rs158 million during the first-half of the current fiscal year, compared with heavy provisioning of Rs9.9 billion during the same period last year. This could be on the back of stronger economic activity, helping the bank to book reversals against the nonperforming loans.

The effective tax rate was set at 42 per cent during the first-half of the current fiscal year and 45 per cent during the second quarter of the current fiscal year.

Also Read

K-Electric to collect 7.5% advance tax from bills of non-ATL consumers

KARACHI: The K-Electric Limited will charge 7.5 per cent advance income tax...