UBL assets cross Rs1tn landmark in Q1 ’13April 24, 2013
Karachi: United Bank Limited UBL, one of Pakistan’s largest private banks with nearly 1,300 domestic branches, announced its results for the first quarter 2013 on Tuesday, April 23, 2013.
The bank registered a profit after tax of Rs. 4.9 billion for Q1’13 in its consolidated results, which represents a 2% growth over the same period last year. This translates into earnings per share of Rs. 3.82 March 2012: Rs. 3.97. The Board of Directors in their meeting held on April 23, 2013 also approved an interim cash dividend of 20%, i.e., Rs.2.00 per share. Despite falling margins and severe spread compression, the bank was able to enhance its fee income and lower provisions.
Noninterest income in Q1’13 saw an increase of 17% to Rs. 5.1 billion. Fees and commissions grew by 23% to Rs2.7 billion, mainly attributable to increase in remittances, branchless banking income, improved general banking fees and cross sell of bancassurance. Dividend income increased by Rs 0.4 billion to Rs 0.5 billion in Q1’13, whilst capital gains increased by Rs 0.6 billion to reach Rs 1.0 billion in Q1’13.
Provisions reduced by Rs182 million compared to the corresponding period last year and this has resulted in an improvement in the Bank’s coverage ratio.
Administrative expenses reduced by 1% over the previous quarter. Compared to the first quarter of 2012, expenses increased by Rs 674 million to Rs 6.7 billion, partially due to the full impact of the 2012 branch expansion, rupee devaluation on overseas expenses and an increase in variable costs driven by higher commission earnings.
UBL achieved the significant milestone of crossing the Rs 1 trillion mark in assets, as total consolidated assets grew by 5% over December 2012 to reach Rs 1,006 billion. Net advances of Rs 374 billion exhibited a seasonal decline of 3% over December 2012, whilst the Bank was able to marginally build on the December 2012 peak in deposits to reach Rs 762 billion.