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Tag: United Bank Limited

  • United Bank posts Rs30.62 billion net profit for 2021

    United Bank posts Rs30.62 billion net profit for 2021

    KARACHI: United Bank Limited (UBL) on Wednesday posted Rs30.62 billion profit after tax for the year ended December 31, 2021, according to financial results submitted to Pakistan Stock Exchange (PSX)

    The bank registered 47 per cent growth in profit after tax for the year under review as compared with Rs20.78 billion in the preceding year.

    The bank announced earnings per share at Rs24.84 for the year ended December 31, 2021 as compared with Rs17.10 in the preceding year.

    READ MORE: UBL gets DD approval to acquire Telenor Microfinance Bank

    Analysts at Arif Habib Limited said that the earnings jumped mainly on the back of reversals in provisioning and a surge in net fee income (NFI).

    The bank announced a dividend of Rs6.00 per share for the quarter taking total payout to PKR 18.00 per share for the year ended December 31, 2021.

    Net Interest Income (NII) of the bank settled at Rs74.7bn during the year under review, decreasing 3 per cent Year on Year YoY/ 2 per cent Quarter on Quarter (QoQ) attributable to significant rate hikes during the previous year leading to sharp increase in interest expense.

    READ MORE: UBL declares 42% growth in net profit in nine months

    NFI depicted a rise of 29 per cent YoY mainly due to massive jump in capital gains (469 per cent YoY) followed by higher dividend income (80 per cent YoY) and foreign exchange income (8 per cent YoY). On a sequential basis, NFI was up 19 per cent QoQ mainly due to a 23 per cent QoQ jump in Fee income.

    The bank booked a net reversal of Rs1.5 billion in the year ended December 31, 2021 compared to huge provisioning of Rs17.2 billion during the preceding year. This could be on the back of stronger economic activity and improved asset quality helping the bank to book reversals against Non-Performing Loans (NPLs).

    The bank’s operating expenses rose 9 per cent YoY/16 per cent QoQ. Cost/Income clocked-in at 49 per cent during the year under review compared to 46 per cent same period last year.

    Effective tax rate was set at 41 per cent during the year ended December 31, 2021 compared to 39 per cent in the preceding year.

  • UBL gets DD approval to acquire Telenor Microfinance Bank

    UBL gets DD approval to acquire Telenor Microfinance Bank

    KARACHI: United Bank Limited (UBL) has been granted regulatory approval to commence due diligence (DD) of Telenor Microfinance Bank Limited.

    In a communication shared with the Pakistan Stock Exchange (PSX) on Tuesday, UBL said that the State Bank of Pakistan (SBP) had granted in-principle approval to UBL to commence the due diligence of Telenor Microfinance Bank Limited (TMB) for proposed acquisition of 55 per cent sponsor shares in TMB, currency held by Telenor Pakistan BV (operating under the Easypaisa brand name), subject to the compliance with the applicable laws, rules, regulations.

    It was second approval granted by the SBP in less than two weeks to UBL to initiate due diligence in two different acquisitions.

    On January 26, 2022, the bank informed the PSX that that SBP had granted in-principle approval to UBL to commence the due diligence of Samba Bank Limited in respect of acquisition of 84.51 per cent shareholding of SBL, currently held by Saudi National Bank.

  • SBP slaps Rs280 million penalty on National Bank

    SBP slaps Rs280 million penalty on National Bank

    KARACHI: The State Bank of Pakistan (SBP) has slapped a heavy monetary penalty of over Rs280 million on the National Bank of Pakistan (NBP) for violating instructions pertaining to Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT).

    The central bank imposed a monetary penalty on four banks during the quarter ended September 30, 2021. The SBP imposed Rs465 million as monetary penalties on the four banks for similar deviation.

    The SBP imposed a penalty of Rs132.44 million on Silk Bank Limited, Rs38.55 million on United Bank Limited and Rs13.54 million on Industrial and Commercial Bank of China-Pakistan Branches.

    In addition to penal action, the banks have been advised to strengthen its processes with respect to identified areas.

    The SBP from July 2019 started public disclosure of penal action against banks. “Enforcement actions are an integral part of a regulatory regime which involves the imposition of monetary penalties and other actions against institutions and individuals for violations of laws, rules, regulations, guidelines or directives issued by SBP from time to time,” according to a circular issued by the central bank.

    In order to bring more transparency and strengthen market discipline, SBP has decided to publicly disclose significant enforcement actions.

    SBP imposes monetary penalty on eight banks
  • United Bank earns Rs39.3 billion as profit before tax

    United Bank earns Rs39.3 billion as profit before tax

    United Bank Limited (UBL) has announced a strong financial performance for the first nine months of 2021, with a Profit Before Tax (PBT) of Rs39.3 billion, marking a remarkable 49% year-on-year growth. The bank’s earnings per share (EPS) for the same period stood at Rs. 18.6, a substantial increase from Rs. 13.1 in the corresponding period of 2020.

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  • UBL declares 42% growth in net profit in nine months

    UBL declares 42% growth in net profit in nine months

    KARACHI: United Bank Limited (UBL) has posted 42 per cent growth in its profit after tax for nine-month period ended September 30, 2021.

    The board of directors of the bank on Wednesday approved the financial results for the period January – September 2021.

    The bank declared net profit of Rs21.87 billion for the period under review as compared with Rs15.38 billion in the same period of the last year.

    The growth in the net profit can be attributed to reversal of Rs865 million during the period January – September 2021 as compared with write-off provision of Rs15.45 billion in the same period of the last year.

    Total income of the bank fell to Rs73.14 billion for the nine-month period ended September 30, 2021 as compared with Rs73.94 billion in the same period of the last year.

    Net Interest Income recorded a decline to Rs55.72 billion as compared with Rs59.72 billion. Non-Interest Income of the bank increased to Rs17.42 billion as compared with Rs14.22 billion.

    Operating expenses of the bank recorded an increase of Rs33.66 billion as compared with Rs31.76 billion. Whereas the total expenses increased to Rs34.53 billion as compared with Rs32.63 billion.

    UBL declares Rs7.6 billion profit for second quarter
  • UBL declares Rs7.6 billion profit for second quarter

    UBL declares Rs7.6 billion profit for second quarter

    KARACHI: United Bank Limited (UBL) on Monday announced financial results for second quarter ended June 30, 2021 and announced Rs7.6 billion for the period.

    UBL announced its 2QCY21 result today and posted a profit after tax of PKR 7.6 billion for 2QCY21 translating to an EPS of PKR 6.2, up by 25 per cent YoY.

    The result is above our estimates and street consensus which was Rs5.3 per share and PKR 5.1 share, respectively.

    The deviation is mainly on account of better than expected NIMs at 3.6 per cent and recognition of provisioning reversal worth PKR 441 million during the quarter.

    Consequently, the stock has reacted positively (+2.23 per cent) post announcement of result. The result was accompanied with an interim cash dividend of Rs4.0 per share.

    According to analysis of KASB:

    UBL’s profitability increased 25 per cent YoY during 2QCY21 attributed to i) provisioning reversal and ii) higher NFI. Sequentially, reversal in provisioning expense offset the decline in NIMs by 350bps that translated into flattish earnings on QoQ basis.

    NFI increased by 17 per cent YoY in 2QCY21 on account of 37 per cent YoY jump in fee income that lent support to the bottom-line.

    The bank recorded higher effective tax rate of 45 per cent which we believe is attributed to new taxation measures in Budget FY22.

    Additionally, C/I improved to 44 per cent as opposed to 52 per cent in corresponding period last year that improved UBL’s profitability.

  • SBP imposes Rs96 million as monetary penalties on top banks

    SBP imposes Rs96 million as monetary penalties on top banks

    KARACHI: The State Bank of Pakistan (SBP) has imposed around Rs96 million as monetary penalties on top banks for violating regulatory instructions, including instructions related to anti-money laundering (AML) and combating financing of terrorism (CFT), a notification said on Friday.

    The SBP imposed these penalties during quarter ended March 31, 2021 on Habib Bank Limited, MCB Bank Limited, MCB Islamic Bank Limited and United Bank Limited.

    The details shows that the central bank imposed an amount of Rs39.77 million on Habib Bank Limited for violating regulatory instructions pertaining to Foreign Exchange and General Banking Operations. The SBP, in addition to penal action, directed to strengthen its process with respect to identified areas.

    The SBP imposed penalty of Rs10 million on MCB Bank Limited for violating the regulatory instructions pertaining to general banking operations. In addition to penal action the bank has been advised to strengthen its processes with respect to identified areas.

    The central bank imposed monetary penalty of Rs37.09 million on MCB Islamic Bank Limited for violating the regulatory instructions pertaining to AML/CFT, Foreign Exchange and General Banking Operations. In addition to penal action, the bank has been advised to conduct an internal inquiry on breaches of regulatory instructions and take disciplinary action against the delinquent officials.

    The SBP imposed an amount of Rs10.71 million as monetary penalty on United Bank Limited for violating the regulatory instructions pertaining to CDD/KYC and general banking operations. In addition to penal action the bank has been advised to strengthen its processes to avoid recurrence of such violations.

    The SBP from July 2019 started public disclosure of penal action against banks. “Enforcement actions are an integral part of regulatory regime which involves imposition of monetary penalties and other actions against institutions and individuals for violations of laws, rules, regulations, guidelines or directives issued by SBP from time to time,” according to a circular issued by the central bank.

    In order to bring more transparency and strengthen market discipline, SBP has decided to publicly disclose significant enforcement actions.

  • United Bank declares 46pc growth in Q1 profit

    United Bank declares 46pc growth in Q1 profit

    KARACHI: United Bank Limited (UBL) on Thursday declared 46 percent growth in its net profit for the quarter ended March 31, 2021 due to significant decline in provisioning and write-offs.

    The bank declared Rs7.4 billion profit after tax for the first quarter (January – March) of calendar year 2021 as compared with Rs5.06 billion in the corresponding period of the last year.

    The bank also declared Rs6.05 as earnings per share (EPS) for the quarter ended March 31, 2021 as compared with Rs4.13 in the corresponding quarter of the last year.

    According to the financial results submitted to the Pakistan Stock Exchange (PSX) the provisions/write-offs of the banks was at Rs354 million during the first quarter of 2021 as compared with Rs3.7 billion in the corresponding quarter of the last year.

    Net Markup / Interest Income of the bank, however, fell to Rs16.85 billion for the quarter under review as compared with Rs17.34 billion in the corresponding quarter of the last year.

    Non mark-up/interest income of the bank increased to Rs5.78 billion for the quarter ended March 31, 2021 as compared with Rs4.66 billion in the corresponding quarter of the last year.

    The bank also made considerable income through gain on securities to Rs1.86 billion during the first quarter of 2021 as compared with Rs342 million in the same quarter of the last year.

    Total income of the bank during the quarter increased nominally to Rs22.64 billion during first quarter of 2021 as compared with Rs22 billion in the corresponding period of the last year.

    Operating expenses of the bank remained flat at Rs9.85 billion as compared with Rs9.47 billion. Total expenses of UBL rose to Rs10.12 billion during the first quarter of 2020 as compared with Rs9.87 billion in the corresponding quarter of the last year.

  • UBL declares Rs20.9bn as annual after tax profit

    UBL declares Rs20.9bn as annual after tax profit

    KARACHI: United Bank Limited (UBL) on Thursday announced its financial results for the year ended December 31, 2020. The bank made provisioning and write-offs to the tune of Rs16.77 billion or 104 percent higher which trimmed its annual profit growth to 9.25 percent.

    The bank announced an amount of Rs20.9 billion as profit after tax for the year ended December 31, 2020 as compared with Rs19.13 billion profit after tax in the preceding year.

    The bank made provisioning and write-offs an amount of Rs16.77 billion for the year under review as compared with Rs8.22 billion in the preceding year.

    UBL announced earnings per share at Rs17.07 for the year ended December 31, 2020 as compared with Rs8.22 in the preceding year.

    Net interest income of the bank increased by 21.42 percent to Rs75 billion for the year under review as compared with Rs61.77 billion in the preceding year.

    Total income of the bank posted 10.24 percent growth to Rs92 billion as against Rs83.45 billion.

    Operating expenses of the bank were flat at Rs40.66 billion as compared with Rs40.21 billion.

    UBL announced a final cash dividend for the year ended December 31, 2020 at Rs9.50 per share i.e. 95 percent. This is in addition to interim dividend already paid at Rs2.50 per share i.e. 25 percent.

    UBL gets DD approval to acquire Telenor Microfinance Bank
  • UBL makes Rs5.45 billion quarterly provisioning, write-offs

    UBL makes Rs5.45 billion quarterly provisioning, write-offs

    KARACHI: High provisioning and write-offs of Rs5.45 billion has resulted in decline of after tax profit declared by United Bank Limited (UBL)

    UBL submitted its financial results to Pakistan Stock Exchange (PSX) on Monday and declared 4.11 percent decline in after tax profit to Rs4.66 billion for the quarter ended September 30, 2020 as compared with the profit of Rs4.86 billion in the corresponding quarter of the last year.

    Major reason in decline of profit may be attributed to higher amount of provisioning and write-offs.

    The provisioning and write-offs were at Rs5.45 billion for the quarter ended September 30, 2020 as compared with Rs1.99 billion in the corresponding quarter of the last year.

    Net mark up / interest income of the bank increased to Rs19.09 billion for the quarter under review as compared with Rs15.42 billion in the same quarter of the last year.

    Total income of the bank surged to Rs23.19 billion for the quarter ended September 30, 2020 as compared with Rs20.5 billion in the same period of the last year.

    Expenses of the bank were flat at Rs10.09 billion as compared with Rs10.2 billion in the same period of the last year.

    The bank paid tax to the tune of Rs2.97 billion for the quarter ended September 30, 2020 as compared with Rs3.44 billion in the same period of the last year.