UBL’s profit clocks in at Rs56.5bn, up 76% in 2023

United Bank Limited (UBL), one of the country’s largest commercial banks, posted consolidated earnings of Rs56.47 billion in 2023, up over 76% from the profit-after-tax Rs32.08 billion in the same period of the preceding year.

According to a notice sent to the Pakistan Stock Exchange (PSX) on Wednesday, earnings per share clocked in at Rs45.05 in 2023, an increase from Rs25.74 in 2022.

The Board of Directors of the bank also announced a final cash dividend at Rs11 per share i.e. 110%. This is in addition to the interim dividend already paid at Rs33 per share i.e. 330%.

The profit comes on the back of a higher net interest income and provisioning reversals.

UBL’s profit up 128% during July-September

During the period, UBL mark-up/return earned increased from Rs257.83 billion in 2022 to Rs535.21 billion in 2021, an increase of nearly 108%.

Consequently, the bank’s net mark-up/return earned rose to Rs148.98 billion in 2023, as compared to Rs107.7 billion in 2022, up by 38%.

The fee and commission income earned by UBL in 2023 amounted to Rs19.75 billion, an increase of nearly 15% against Rs17.24 billion earned in the same period last year.

UBL’s foreign exchange income also showed a strong growth of 48%, up from Rs8.6 billion in 2022 to Rs12.7 billion in 3QCY23.

On the other hand, the bank sustained massive net losses on securities to the tune of Rs11.58 billion in 2023, in comparison to a gain of Rs560.58 million in SPLY.

UBL’s other income amounted to Rs1.52 billion in 2023, a decline of 81%, as compared to Rs8.1 billion in 2022 .

During the period, the bank saw its non interest income plunge over 35%.

UBL’s operating expenses clocked in at Rs70.09 billion in 2023, up 24% against Rs56.7 billion in SPLY.

The firm reported a sharp hike in expenditure on worker welfare funds which increased by over 59% during the period. UBL spent Rs2.15 billion under this head in 2023 and Rs1.35 billion in 2022.