UBL 1HCY20 net profit rises 17pc

KARACHI: United Bank Limited (UBL) on Thursday said its profit for six months ending June 30, 2020, grew 17 percent to Rs10.726 million.

That is an earning per share (EPS) of Rs8.94, the bank said in a statement.

The UBL had earned Rs9.167 million with an EPS of Rs7.50 in the corresponding period last year.

Brokerage Shajar Capital in a research note said, “The rise in profitability of the bank was mainly led by rise in total income by 14 percent YoY, a 31 percent YoY surge in NII (Net Interest Income), and, interest income and a 29.45 percent YoY increase in interest income during, 1HCY20 compared to 1HCY19”.

Non-funded income (NFI) depicted a decline of 26 percent YoY owing to lower fee income (-25 percent YoY), lower dividend income (-38 percent YoY) and lower forex/derivatives income (-24 percent YoY), the brokerage added. However, it added that capital gains for the bank are up 177 percent YoY as the bank most likely booked gains on fixed income securities. Fee income took a major 25 percent sequential hit owing to the impact of the pandemic on economic activity as well as central bank waivers on digital transactions.