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Tuesday March 19, 2024

UBL profit up 33.7 percent in 2019

February 20, 2020

United Bank Limited (UBL) said its net after tax profit for the full-year 2019 grew 33.7 percent to Rs20.7 billion, owing to higher net interest income (NII) and reduced provisioning and operating expenses.

The bank announced a final cash dividend of Rs4/share, bringing total cash dividend to Rs12/share in 2019. The EPS rose by 30 percent to Rs16.6/share.

Brokerage Topline Securities in a report said the UBL posted 2019 consolidated earnings of Rs15.6/share, up 23 percent year-on-year on the back of expansion in net interest margins, lower provisioning expense, and absence of one-time expense related to pension liability.

“The result, however, came in lower than our expectations due to lower-than-expected NIMs and fee income,” the brokerage said.

It said the bank’s net interest income for the year settled at Rs63.3 billion, up 9 percent year-on-year, owing to a 35 percent year-on-year increase in markup earned; however interest expense grew by 60 percent year-on-year given a relatively lower CASA compared to peers.

The brokerage further said the bank’s non markup income declined 9 percent year-on-year to Rs23.6 billion primarily due to the absence of capital gains. The number for capital gains for the period under review came in at Rs216 million compared to Rs3.8 billion last year.