Karachi, July 22, 2023 (PPI-OT): UBL - Result announcement 2QCY23
Earnings: United Bank Limited (UBL) announced its financial result for the second quarter of the year 2023. As per the financial result, the Bank reported earnings of PKR 12.4bn (PKR 10.14/share) during 2QCY23 compared to PKR 2.3bn (PKR 1.91/share) last year, a decrease of 11%q/q and an increase of +5.3x%y/y. This brings total profitability for 1HCY23 to PKR 26.3bn (PKR 21.5/share), up by +22%y/y.
Dividend/Payout: The Company announced a cash dividend of PKR 11/share along with the result this quarter compared to PKR 4/share last year’s same period. This brings total dividend for the 1HCY23 to PKR 22/share compared to PKR 9/share in the similar period last year.
Operating Performance: During the 2QCY23 period under review, the Bank reported net-interest income of PKR 36bn (up by +51%y/y) and non-interest income of PKR 3bn (down by 57%y/y). As a result, the total revenue of the bank stood at PKR 39bn (up by +24%y/y). Moreover, UBL recorded operating expenses of PKR 16bn (up by +25%y/y), which deteriorated the bank’s cost/income ratio to 41% (last year: 40%). The bank booked a provision reversal of PKR 3.1bn during 2QCY23 compared to a provision charge of PKR 0.4bn in the same period last year. The tax charge for this quarter came at PKR 14bn (effective tax rate of 53% compared to 87% in 2QCY22).