KARACHI (PR) - United Bank Limited achieved a profit after tax of Rs 18 billion for 2012 which is 16 per cent higher than last year’s, translating into earnings per share of Rs. 14.71 (2011: Rs. 12.66).

The Board of Directors also approved a final cash dividend of 35% (Rs. 3.50 per share) bringing the total cash dividend for the year 2012 to 85 %, i.e. Rs. 8.5 per share. UBL has achieved a pre-tax profit of Rs 27.0 billion, 12% higher than last year’s. This was achieved despite severe spread compression, through a growth in the balance sheet, improved non fund income and lower provisions.

The continually declining rate environment resulted in lower yield on earning assets, while cost of funds reduced marginally as the increase in the minimum PLS saving rate limited rate reduction on deposits. Consequently, the net interest margin for 2012 was lower than 2011. The Bank was able to offset most of this spread compression through balance sheet growth, with net interest income declining  by 2% to Rs 38.6 billion in 2012. Total provisions declined by 40% from Rs 7.5 billion in 2011 to Rs 4.5 billion for 2012.

, while net credit loss ratio improved from 2.1% to 1.1%.