UBL rides income, deposit growth in 1QCY23

April 28, 2023 (MLN):  United Bank Limited (UBL) posted a profit after taxation of Rs13.90 billion [EPS: Rs11.36], depicting a massive surge of 45.9% YoY, compared to a profit after taxation of Rs9.52bn [EPS: Rs7.78] in 1QCY23.
The notable surge in net profit is primarily attributable to the increase in net mark-up income by 54.9% YoY and stood at Rs33.25bn in 1QCY23, as a result of a well-positioned investment book and efficient cost of deposits.
Non-markup income stood at Rs8.78bn for 1QCY23 up 29.5% YoY, owing to strong growth across major fee-based revenues and foreign exchange income.
On the expenses side, operating expenses inched up by 23.9% YoY and stood at Rs14.52bn in 1QCY23 as a result of significantly higher inflation levels, devaluation of the rupee, and higher overheads across the network.
Lower costs were achieved due to the bank’s aim to reduce its costs while investing in its people and the IT / digital and physical facilities that enable a wide network and improved customer service.
Despite the increase in the expenses of the bank, the cost-to-income ratio continued to improve and stood at 34.6% in 1QCY23 as compared to 41.5% in the last year.
During the period under review, the bank’s domestic deposits grew by 7% YoY to Rs1.60 trillion in 1QCY23, with a net increase of Rs105bn, while its domestic CASA deposits increased by 9% YoY to Rs1.44 trillion in 1QCY23, resulting in a strong CASA ratio of 89.6% in 1QCY23 compared to 87.8% in 1QCY22.
The bank also added approximately 233,000 new current account relationships in 1QCY23, which was higher than the 162,000 current account relationships added in 1QCY2, and this led to a 12% YoY growth in average current deposits to Rs757bn in the review period.
On the tax front, the bank paid Rs10.49bn, 66.1% YoY more than the amount paid in 1QCY23.




Unconsolidated Profit and Loss Account for the quarter ended on March 31, 2023 (Rupees '000)






 


Mar-23


Mar-22


% Change




Mark-up/return/interest earned


     89,837,039


     47,956,205


87.3%




Mark-up/return/interest expensed


     56,581,978


     26,483,283


113.7%




Net mark-up/return/interest income


     33,255,061


     21,472,922


54.9%




Non-mark-up/interest income


 


 


 




Fee, commission, and brokerage income


       4,337,566


       3,918,955


10.7%




Dividend income


           475,449


           903,660


-47.4%




Foreign exchange income


       4,346,597


       1,282,724


238.9%




Income /Loss from derivatives


             21,494


           (37,777)


–




Gain on sale of securities – net


         (639,894)


           428,251


–




Other income


           240,189


           284,328


-15.5%




Total non-mark-up/interest income


       8,781,401


       6,780,141


29.5%




Total Income


     42,036,462


     28,253,063


48.8%




Non-mark-up/interest expenses


 


 


 




Operating expenses


     14,525,160


     11,727,972


23.9%




Workers' Welfare Fund


           496,085


           325,121


52.6%




Other charges


                1,521


                5,628


-73.0%




Total non-mark-up/interest expenses


     15,022,766


     12,058,721


24.6%




Profit before provision


     27,013,696


     16,194,342


66.8%




Provisions and write offs-net


       2,614,591


           347,289


652.9%




Profit before taxation from continuing operations


     24,399,105


     15,847,053


54.0%




Taxation


     10,496,365


       6,319,346


66.1%




Profit after taxation


     13,902,740


       9,527,707


45.9%




Earnings per share – basic and diluted (Rupees) for profit from continuing operations attributable to the ordinary equity share


                11.36


                  7.78


–




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Posted on: 2023-04-28T16:22:52+05:00
The post UBL rides income, deposit growth in 1QCY23 appeared first on Mettis Global Link .