Karachi, April 28, 2023 (PPI-OT): Commercial Banks - United Bank Limited

Earnings: United Bank Limited (UBL) announced its financial result for the first quarter of the year 2023. As per the financial result, the Bank reported earnings of PKR 13.9bn (PKR 11.4/share) during 1QCY23 compared to PKR 9.5bn (PKR 7.8/share) last year, an increase of +46%y/y.

Dividend/Payout: The Company announced cash dividend of PKR 11/share along with the result this quarter compared to PKR 5/share last year same period.

Other material Information: In addition, the bank “UBL” as per the notice is exploring a potential merger with “Silkbank Limited”.

Operating Performance: During the period under review, the Bank reported net-interest income of PKR 33bn (up by +55%y/y) and non-interest income of PKR 9bn (up by 30%y/y). As a result, total revenue of the bank stood at PKR 42bn (up by +49%y/y). Moreover, UBL recorded operating expenses of PKR 15bn (up by +25%y/y), which improved the bank’s cost/income ratio to 36% (last year: 43%). The bank booked provision charge of PKR 2.6bn during 1QCY23 compared to provision charge of PKR 0.3bn last year same period. Tax charge for this quarter came at PKR 10bn (effective tax rate of 43% compared to 40% in 1QCY22).