KARACHI: United Bank Limited (UBL) recorded a year on year growth of 19 percent in profits after tax (PAT) for the half year ended June 30, 2020. With strong build up in core earnings, revenues were recorded at Rs 48.0 billion for H1'20, up 14 percent over H1'19.
Despite inflationary pressures, the cost base remained flat versus last year at Rs 19.2 billion, with the cost to income ratio improving from 45.8 percent in H1'19 to 39.9 percent in H1'20. This performance translates to earnings per share (EPS) of Rs 9.31 for H1'20 (H1'19: Rs 7.80). The bank maintained its very sound capital position with a Capital Adequacy Ratio (CAR) at 21.1 percent at Jun'20, well above the minimum regulatory requirement of 12.5 percent.
Following the breakout of the Covid-19 pandemic, UBL has taken all necessary steps to ensure continued and uninterrupted services to our customers in a safe environment. Despite the challenges that the pandemic posed, over 95 percent of branches remained open for business in this difficult period. This was made possible by the unwavering dedication of our most valuable asset, our staff.
During the second quarter of 2020, UBL crossed a landmark deposit level of Rs 1.5 trillion. Domestic deposits closed at Rs 1.3 trillion, growing by 10 percent over Dec'19, a net increase of Rs 128 billion. This enabled the bank to grow its deposits market share to well over 8 percent. Islamic Banking continues to gain momentum with a footprint of 100 branches as well as 162 Islamic banking windows. UBL's portfolio of Islamic deposits now stands at Rs 98 billion, with 20 percent growth over Dec'19. The bank maintained its strategic relationship across the world as the preferred bank for overseas Pakistanis, bringing in home remittances of over $6 billion in the last one year, with a market share of over 25 percent.
UBL remains at the forefront of providing innovative and unique solutions, aimed at making banking easier and accessible for everyone. Building on our digital strategy, we aim to transform our products and processes, with an end state of developing a wider payment ecosystem for the country. Our UBL Digital app. has been gaining a very positive response, with over 1 million customers acquired over the last one year.
UBL's net advances stood at Rs 585 billion as at Jun'20 (Dec'19: Rs 636 billion). The bank's loan book is driven by the domestic Corporate Banking Group, maintaining a quality portfolio across diverse industries which includes fertilizers, chemicals, engineering, telecom and pharmaceuticals. Led by autos financing, the domestic consumer loan portfolio stood at Rs 16 billion. The bank is also an active player in the SME and agri-lending space, with approximately half of our branches dedicated to rural areas. The bank also remains a key partner to large corporate and public sector organizations in meeting their cash management needs.
As the bank announced strong results for the half year ended June 30, 2020, UBL's new President and CEO Shazad Dada said, "It is indeed an honor to be given the responsibility of leading such a premier institution like UBL. I thank the Chairman and the entire Board for placing their trust in me to lead their organization. It is the hard work and dedication of the UBL team which has enabled the bank to grow into a very strong franchise over the years."-PR
Copyright Business Recorder, 2020