In the very first year as a privatised bank, the United Bank Limited (UBL) declared a dividend pay-out of 22.5 percent, and in the process the government also received a dividend after two decades on its shareholding of 49 percent in the bank.
Now a privately managed UBL posted a 60 percent increase in profit before tax of Rs 4.5 billion ($60 million) as against Rs 2.8 billion in 2002. And the after-tax profit was Rs 2.817 billion ($49 million).
The remarkable performance was based on a record growth of 37 percent in advances, which in 2002 were Rs 68.7 billion rose to Rs 99 billion a year later based on deposits growing from Rs 162.7 billion to Rs 189 billion.
A nearly 50 percent of the rise in income is on account of five-time rise in capital gains on investments by the UBL recorded at Rs 2 billion.
Over the year, the UBL has achieved a 39 percent growth in advances, which is one of the highest growth rates amongst the large banks network, while Deposits have grown by 17 percent and Work Remittances by 19 percent.
The profit before-tax at Rs 4.5 billion ($80 million) shows an increase of 61 percent over previous year.
During 2004, the Bank will increase its momentum on branch renovation, investments in service quality, and automation.
Under the umbrella of e-banking, services such as call centre, online banking and ATMs access will be offered from many more service points. Consumer finance products will be launched from the second quarter onwards.
For business customers, cash management services, treasury exposure, management solutions, corporate advisory services and capital raising will provide the focus on value-added solutions.
The 2004 calendar of enhanced solutions is ambitious, reflecting the increased commercial urgency at the bank''s post-privatisation.
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