Karachi, July 31, 2024 — United Bank Limited (UBL), one of Pakistan’s leading commercial banks, has reported consolidated earnings of Rs15.27 billion for the quarter ending June 30, 2024, marking a significant 17% increase from Rs13.05 billion in the same period last year. The bank’s earnings per share (EPS) rose to Rs12.10, up from Rs10.39 in the second quarter of 2023, according to a notice sent to the Pakistan Stock Exchange (PSX) on Wednesday.
In addition, UBL’s Board of Directors announced an interim cash dividend of Rs11 per share (110%) for the half-year ending June 30, 2024. This dividend is in addition to the earlier interim dividend of Rs11 per share, also at 110%.
The strong profit growth is attributed to higher net interest income and provisioning reversals. UBL’s mark-up/return earned surged by an impressive 173%, reaching Rs281.5 billion in Q2 2024, compared to Rs103.25 billion in the same quarter last year. However, despite this increase, the bank’s net mark-up/return earned declined by 22%, from Rs37.4 billion in Q2 2023 to Rs29.17 billion in Q2 2024, primarily due to a 283% rise in interest expenses during the period.
The bank’s fee and commission income also saw a healthy growth, rising nearly 13% to Rs5.6 billion, compared to Rs4.9 billion in the same period last year. UBL’s foreign exchange income increased by 44%, from Rs2.6 billion in Q2 2023 to Rs3.8 billion in Q2 2024.
Notably, UBL reported substantial gains on securities, amounting to Rs5.36 billion in Q2 2024, a significant turnaround from a loss of Rs857.7 million in the corresponding period last year. However, the bank’s other income declined by 45% year-on-year to Rs310.7 million during the quarter.
Overall, UBL’s non-interest income surged by 157% year-on-year, reaching Rs19.3 billion. The bank’s operating expenses increased by 17%, amounting to Rs19.75 billion in Q2 2024, up from Rs16.9 billion in the same period last year.
As a result, UBL’s profit-before-tax for the second quarter stood at Rs29.05 billion, reflecting an 8% increase compared to Rs26.9 billion in the same period of the previous year.
