Karachi, July 19, 2023 – United Bank Limited (UBL), one of Pakistan’s largest banks, has witnessed a remarkable over fourfold surge in net profit for the quarter ending June 30, 2023.
Reversal of Provisions Contributes to Remarkable Profit Growth
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According to the financial results submitted to the Pakistan Stock Exchange (PSX) on Wednesday, the bank declared a profit after tax of Rs 12.42 billion for the quarter, compared to Rs 2.33 billion in the same quarter of the previous year, showcasing an astounding profit growth of 430 percent.
UBL announced an impressive Earnings Per Share (EPS) of Rs 10.14 for the quarter, compared to Rs 1.91 in the corresponding quarter last year.
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The board of directors of UBL convened in Islamabad on July 19, 2023, and approved an interim cash dividend for the half-year ended June 30, 2023, at Rs 11 per share, equivalent to 110 percent. This is in addition to the interim dividend previously paid at Rs 11 per share, also amounting to 110 percent.
As per the unconsolidated financial results of the bank, both net markup income and interest income posted massive growth, reaching Rs 35.61 billion for the quarter ending June 30, 2023, compared to Rs 23.63 billion in the same quarter of the previous year.
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Notably, the bank achieved this significant profit growth even amidst facing exchange losses amounting to Rs 2.56 billion and losses on securities of about Rs 4.29 billion during the quarter from April to June 2023.
The main factor that contributed to this massive jump in profit is the reversal of provisions, amounting to Rs 3.08 billion during the quarter under review.
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UBL’s robust financial performance demonstrates its ability to navigate challenges and capitalize on opportunities in the banking sector, strengthening its position as one of the leading banks in Pakistan.
