UBL records H1 PBT of Rs34.2 billion, with 32pc growth
KARACHI – UBL has declared profit before tax (PBT) of Rs. 34.2 billion for the half year ended June 30, 2022, an impressive growth of 32% over last year. The bank recorded a one-off taxation adjustment related to prior year profits as well as higher taxation due to change in the tax regime amounting to Rs. 9.0 billion during the period. This impacted the earnings per share (EPS) for the period, which was measured at Rs. 9.69 (H1’21: Rs. 12.25). Excluding the taxation impacts, UBL’s EPS stood at Rs. 16.9, while the RoE is measured at 23.9% for H1’22 (H1’21: 19.5%). UBL’s capital base remains strong as the capital adequacy ratio (CAR) was measured at 18.8% as at Jun’22, an excess of 6.3% over regulatory minimum requirements. The bank declared dividends of Rs. 4.0 per share for the second quarter of 2022, which takes the overall dividend distribution to Rs. 9.0 per share for the half year ended June 30, 2022.
The bank earned gross revenues of Rs. 59.8 billion for H1’22, an increase of 29% over last year. Markup income witnessed a significant increase of 29%. Non-markup income of Rs. 14.7 billion was earned in H1’22, well ahead of last year, owing to significant increase in foreign exchange income as well as strong revenue growth across all major fee-based services. The cost to income ratio further improved to 40% from 43% last year.
The bank’s Branch Banking Group remains the cornerstone of the UBL franchise. Domestic deposits averaged Rs. 1.5 trillion for H1’22, an increase of 7%. The bank on-boarded 302,000 current account relationships in H1’22 which resulted in a strong growth of 12% in average current deposits. This buildup helped in improving the average CASA ratio from 85% to 87% and contain the cost of deposits at 5.1% for H1’22 (H1’21: 3.4%), despite the significant increase in interest rates during the period. UBL continues to bring new financial solutions to its ever expanding and diverse customer base.
UBL also remains an active participant in all the major economic initiatives of the government of Pakistan and the State Bank of Pakistan (SBP). The bank’s digital services under the UBL Digital umbrella, has transformed the way customers interact with the bank for their financial needs. UBL has been consistently setting a record of digital customer registrations every year. Our Digital Banking app., UBL Digital, continues to set the industry standard, offering better, faster and easier digital banking services with the aim of sustaining life-long relationships with our customers. Our digital customer base currently stands at 2.9 million, including Asaan Mobile Accounts, with the number of financial transactions recording a 51% growth. The bank’s non-fund income (NFI) was reported at Rs. 14.7 billion for H1’22, contributing 25% to total gross revenues. Fee revenues of Rs. 7.8 billion were earned in H1’22, with an increase of 17%, as strong momentum was witnessed across all major businesses. The Islamic business segment has witnessed tremendous growth in the last few years. UBL Ameen’s branch network now stands at 150 branches (Dec’21: 145 branches) and is further supported by 193 Islamic Banking Windows (IBWs) within commercial branches.
UBL International posted a PBT of USD 9.1 million for H1’22 as the bank’s GCC operations now reflect stability, following specific de-risking measures over the past few years. UBL continues to grow in its intermediation role within the economy, as performing advances averaged Rs. 640 billion in H1’22, a strong growth of 19%. The bank maintained its momentum in the corporate space as the average loan book recorded a growth of 14%. The bank continues to expand within the mid-market segment as the average portfolio of SME and Agri loans recorded a 17% growth over last year.