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.

The announcement, made on Tuesday, highlighted the bank’s commitment to sustainable earnings through strategic initiatives, emphasizing the importance of building human capital, investing in IT systems, and creating operational efficiencies. UBL credited its success to a highly passionate and dedicated workforce, working towards achieving greater organizational aspirations.

UBL, one of Pakistan’s key financial institutions, serves over 10 million customers through a network of 1,344 branches, 1,436 ATMs, and over 35,000 Omni agents, supported by award-winning digital banking services. The Branch Banking Group recorded a record performance in 2021, with strong growth in average domestic deposits of over 21%, reaching Rs. 1.5 trillion in the first nine months of 2021.

The bank’s aggressive deposit mobilization strategy enabled it to expand its average market share to 8.4% in the same period, up from 8.1% in the previous year. UBL actively participates in major economic programs launched by the Government of Pakistan and the State Bank of Pakistan, and it has been a key player in the Roshan Digital Account initiative, with over 48,000 accounts opened and inflows of USD 257 million.

Recognizing Islamic banking as an emergent and growing opportunity, UBL is focusing on expanding within this space. The Islamic branch network, consisting of 114 branches and 201 Islamic Banking Windows, saw Islamic banking deposits grow to Rs. 127 billion at September 2021, a 14% increase since December 2020. The loan book for this segment averaged Rs. 34 billion in the first nine months of 2021, showing a remarkable 71% year-on-year growth.

Despite global economic uncertainties and the challenges posed by the pandemic, UBL recorded a year-on-year growth of 31% in domestic fees and commission revenues. Strong contributions were observed in bancassurance, consumer finance, and debit and credit card fee income, which grew by 56%, 29%, and 71%, respectively.

Shazad G. Dada, President & CEO of UBL, expressed pride in the bank’s achievements, highlighting the highest deposit growth in the last five years and the bank’s commitment to being at the forefront of the digital revolution. UBL was recently recognized as the ‘Best Digital Bank’ in Pakistan for the second consecutive year by Asiamoney.

Dada further commented on the bank’s future prospects, stating, “We will continue to live up to our position as Pakistan’s leading Digital Bank and deliver the highest standards of service to our rapidly growing customer base. As a team, we are excited about our future prospects, with a number of key strategic initiatives underway.”

UBL’s solid financial performance reflects its resilience, strategic focus, and commitment to innovation, positioning itself as a leading force in Pakistan’s banking industry.