United Bank posts 48% growth in profits
KARACHI: United Bank Limited (UBL) unveiled its 2QCY19 ended June 30, 2019, standalone net earnings at Rs5.38 billion (EPS Rs4.39) versus Rs3.63 billion (EPS Rs2.96) recorded during the same quarter last year, exhibiting a significant rise of 48% YoY, primarily due to low-base effect as UBL booked hefty one-off pension charge (Rs2.0 billion) in 2QCY18, newsnreleases.com reported.
Earnings of the bank arrived in-line with market estimates. As expected, UBL declared interim cash dividend of Rs2.5/share for 2QCY19 taking cumulative cash payout for the half to Rs5.0/share.
Interest income of the bank rose 35% YoY to Rs35.17 billion whereas interest expense of the bank also increased 68% YoY, thereby resulting in 7% YoY expansion in net interest income (NII) during the quarter.
Non-funded income (NFI) of the bank remained relatively stagnant (+3%YoY) despite surge in forex income (+45% YoY) as the bank booked significantly lower capital gains (-87%YoY) during the quarter.
Moreover, operating expenses remained contained (+4%YoY), thereby further amplifying bank’s profitability.