First Quarter 2014: UBL declares Rs 5.2 billion unconsolidated profits
United Bank Limited (UBL) on Friday announced 1Q2014 unconsolidated profits of Rs 5.2bn (EPS Rs 4.26) as compared to earnings of Rs 4.0bn (EPS of Rs 3.23) in 1Q2013, up 31.7 percent. However, on the sequential basis, earnings fell by 8.3 percent QoQ. The bank also announced an interim cash dividend of Rs 2.5 per share along with the result, analysts at Topline Securities said.
Copyright Business Recorder, 2014
During the quarter, they said the bank''''s NII (Net Interest Income) increased by 11.7 percent YoY to Rs 9.8bn while provisions against non-performing loans declined by 64.9 percent YoY to Rs 147mn. In addition, Non-Interest Income increased by 31.6 percent YoY to Rs 5.1bn mainly because of 99.2 percent YoY higher capital gains on investments to Rs 783m. During the quarter, fee income increased by 15.3 percent YoY to Rs 2.7bn while income from dealing in foreign currency increased by 66.1 percent YoY to Rs 654m, they added.
As against last quarter (4Q2013), they said the bank''''s NII declined by 7.2 percent QoQ. Within that, mark-up interest cost increased by 8.4 percent QoQ to Rs 9.6bn while mark-up interest income remained flattish at Rs 19.4bn. To recall, SBP increased DR by 50bps in November 2013 which quickly increased the cost of deposits but have lagged effect on return on advances portfolio. Further dent to profits was provided by provisions against NPLs of Rs 147mn vs reversal of Rs 167mn in 4Q2013, they said. During 1Q2014, analyst said that Non-Interest income increased by 4.4 percent QoQ to Rs 5.1bn due to 157 percent QoQ higher capital gains on investments to Rs 783mn.