UBL Q3 profit jumps 46.5pc

KARACHI: United Bank Limited on Wednesday reported a 46.5 percent rise in its third quarter net profit, owing to a decline in the provisions.

In a statement to the Pakistan Stock Exchange, the company reported a net profit of Rs6.82 billion for the quarter ended September 30, up from Rs4.65 billion the previous year. The bank also announced an interim dividend of Rs4/share for the quarter, which is in addition to already paid cash dividend of Rs8/share.

Earnings per share (EPS) came in at Rs6.48, compared with Rs3.86 last year.

The company said its revenue for the year rose to Rs42.52 billion, compared with Rs35.49 billion a year earlier. The company said its interest expenses increased to Rs23.13 billion, compared with Rs15.83 billion the previous year. The bank said that its provisions decreased to negative Rs707,890 million compared with Rs5.50 million that increased its profits.

The profits for the three-quarters (January-September) was recorded at Rs21.86 billion, up from Rs15.38 billion. The EPS for this period is recorded at Rs18.64, compared with Rs12.51.

Umair Naseer, an analyst at Topline Securities, said provision reversal continued to support bottom-line of the bank as it clocked in at Rs708 million in Q32021 vs a provision charge of Rs5.5 billion in Q32020.

In 9M2021, provision reversal stood at Rs866 million vs a provisioning charge of Rs15 billion during the same period last year. This shows declining NPL pressures on both domestic and international fronts, as we wait for management comments for further details, he said.