United Bank Limited (UBL), one of Pakistan’s largest commercial banks, posted consolidated earnings of a massive Rs15.27 billion during the quarter ending June 30, 2024, up nearly 17% from the profit-after-tax of Rs13.05 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 Rs12.10 in 2QCY24, an increase from Rs10.39 in 2QCY23.

The Board of Directors also announced an interim cash dividend for the half year ended 30 June 2024 at Rs11 per share i.e. 110%. This is in addition to the interim dividend already paid at Rs11 per share i.e. 110%

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

During the period, UBL mark-up/return earned increased from Rs103.25 billion in 2QCY24 to Rs281.5 billion in 2QCY23, a massive increase of nearly 173%.

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

However, despite higher markup, the bank’s net mark-up/return earned decreased to Rs29.17 billion in 2QCY24, as compared to Rs37.4 billion in 2QCY23, down by 22%. The decline in net mark-up is attributed to 283% jump in interest expense during the three-month period.

The fee and commission income earned by UBL during the quarter amounted to Rs5.6 billion, an increase of nearly 13% against Rs4.9 billion earned in the same period last year.

UBL’s foreign exchange income also showed a strong growth of 44%, up from Rs2.6 billion in 2QCY23 to Rs3.8 billion in 2QCY24.

On the other hand, the bank saw massive gains on securities to the tune of Rs5.36 billion in 2QCY24, in comparison to a loss of Rs857.7 million in SPLY.

However, UBL’s other income amounted to Rs310.7 million during the period, a decline of 45% YoY.

During the period, the bank saw its non-interest income jump by 157% YoY, clocking in at Rs19.3 billion.

UBL’s operating expenses clocked in at Rs19.75 billion in 2QCY24, up 17% against Rs16.9 billion in SPLY.

Consequently, the bank profit-before-tax stood at Rs29.05 billion in 2QCY24, an increase of 8%, compared to Rs26.9 billion in the same period of the previous year.