UBL Profits Grow By 31% In H1’2021

United Bank Limited (UBL) exhibited an outstanding financial performance as its profitability grew by 31 percent Year-on-Year in the first half of 2021.

According to its financial statement, the bank made a profit of Rs. 14.9 billion during January-June 2021 as compared to a profit of Rs. 11.4 billion during the corresponding period last year. This is UBL’s highest-ever half-year profit.

Its interest income had declined to Rs. 35 billion from Rs. 39 billion of the last year by the end of the first half owing to a drop in the policy rates that also negatively impacted its revenue streams on the account of markup.

However, its non-interest income had surged to Rs. 11.4 billion from Rs. 8.9 billion last year. The major margins were driven through the gain on securities, which is the profit earned from the investment of the government’s papers.

The bank’s expenses had also increased to Rs. 20.7 billion between January and July 2021 from Rs. 19.8 billion between January and July 2020.

Under Shahzad Dada, UBL is being transformed with the new policies, including the focus of branch banking. The business is being progressive at the local level, whereas the global operations remain challenging despite the bank working to reduce its non-performing loans.

It is operating more than 1356 branches across the country, including 100 branches dedicated to Islamic banking.

UBL’s earnings per share also surged to Rs. 12.25 from Rs. 9.31, and it announced an interim dividend of Rs. 4 per share for the shareholders.

Source: Pro Pakistani