During the first quarter of this year, United Bank Limited (UBL), one of the biggest commercial banks in the nation, reported consolidated earnings of Rs16.14 billion, which is about 12% more than the profit-after-tax of Rs14.47 billion in the same time last year.
The Pakistan Stock Exchange (PSX) received a notification on Wednesday stating that the three-month profits per share was Rs13.05.
The Board of Directors of the bank also declared an interim cash dividend of 110%, or Rs11 per share. According to a report from Arif Habib Limited (AHL), “UBL hit new profitability peak at Rs13.1/share, propelled mainly by higher gains on securities.”
The bank’s net mark-up/return decreased significantly, by about 20%, from Rs34.95 billion in 1QCY23 to Rs28.1 billion in 1QCY24, even though it earned a larger mark-up.
Compared to the Rs4.78 billion collected during the same time previous year, the bank’s fee and commission revenue increased by 24% to Rs5.94 billion in 1QCY24. However, the company’s foreign exchange profits dropped dramatically from Rs4.44 billion in 1QCY23 to Rs2.72 billion in 1QCY24, a roughly 39% decrease.
However, the bank had enormous net profits on securities in 1QCY24, totaling Rs12.83 billion, as opposed to a loss of Rs637.1 million in SPLY. Although declining by over 1% year over year, UBL’s dividend income was relatively steady.
In 1QCY24, UBL’s non-mark-up income reached Rs21.28 billion, a 130% exponential increase over SPLY’s Rs9.25 billion. Operating costs for the bank were Rs19.19 billion for the company, a 22% increase above SPLY’s Rs15.72 billion.
The company disclosed a dramatic rise in worker welfare fund spending, which rose by more than 35% throughout the time frame. Under this heading, UBL spent Rs. 500.15 million in 1QCY23 and Rs. 676.42 million in 1QCY24.
In 1QCY24, UBL’s earnings before tax was Rs31.18 billion, up more than 24% from Rs25.1 billion in SPLY.
