UBL profit surges 36.8% in first quarter

Declares interim cash dividend of 30%.

KARACHI: United Bank Limited’s (UBL) earnings grew 36.8% to Rs7.1 billion in the January-March quarter over the same period of previous year, according to the bank’s stock filing on Friday.

UBL also announced an interim cash dividend of 30%, or Rs3 per share.

The substantial growth in the bank’s earnings appears to be on the back of its core income. UBL’s net interest income stood at Rs13.1 billion in the quarter, up 33.6% from the same period of last year.

According to Topline Securities research analyst Umair Naseer, income from high-yielding Pakistan Investment Bonds (PIBs) and an improving deposit mix resulted in higher net interest income despite falling interest rates. Interest earned on assets rose 18.1% to Rs22.9 billion whereas interest expense increased 2.3% to Rs9.8 billion.

In addition to higher core earnings, a 22.7% increase to Rs6.2 billion in non-interest income on a year-on-year basis also supported the bottom line of the bank. Capital gains of Rs1.9 billion in the first quarter of 2015 also helped non-interest income grow.

On the expenses side, total non-interest expenses increased 10.9% to Rs7.6 billion in January-March. “However, a sharp growth in core earnings and higher non-interest income dwarfed the increase in expenses,” Naseer said.

Published in The Express Tribune, April 25^th, 2015.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.