UBL Posts Highest-Ever Quarterly Profit of Rs. 14.4 Billion in Q1 2023

United Bank Limited (UBL) has posted an all-time high quarterly profit of Rs. 14.47 billion in the quarter that ended on March 31, 2023 (1QCY23), up 54 percent year-on-year (YoY) from Rs. 9.37 billion in 1QCY22.

The bank posted consolidated earnings of Rs. 11.62 per share, up 53 percent YoY and 9 percent QoQ.


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Along with the result, the bank announced its highest-ever interim cash dividend of Rs. 11 per share, higher than industry expectations of Rs. 5-6 per share for 1QCY23. The result came above industry expectations primarily due to higher-than-expected Net Interest Income (NII), lower provisions, and higher-than-expected FX Income.

Net Interest Income for 1QCY23 settled at Rs. 34.9 billion, depicting a strong growth of 56 percent YoY and 10 percent QoQ amid rising asset yields.

Total provisions saw an increase on a YoY basis but a decline of 75 percent QoQ mainly due to low provision on Eurobond.

Non-Interest Income grew by 37 percent YoY to Rs. 9.25 billion, primarily driven by FX income of Rs. 4.4 billion up 3.3x YoY for the quarter. To highlight, the bank recorded an FX income of Rs. 832 million in 4QCY22.


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Operating expenses also saw an increase of 25 percent YoY and 1 percent QoQ likely driven by inflationary pressures. Despite the increase in operating expenses, the cost-to-income ratio of the bank improved to 37 percent In 1QCY23 against 45 percent recorded in 1QCY22.

The effective tax rate of the bank clocked in at 42 percent in 1QCY23 vs. 40 percent in 1QCY22 and 25 percent in 4QCY22.

Source: Pro Pakistani

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