United Bank Limited (UBL), one of the country’s largest commercial banks, posted earnings of Rs15.04 billion for the third quarter of the ongoing calendar year, up over 128% from the profit-after-tax Rs6.59 billion in the same period of the preceding year.
According to a notice sent to the Pakistan Stock Exchange (PSX) on Wednesday, earnings per share clocked in at Rs12.04 for the three-month period.
The Board of Directors of the bank also announced an interim cash dividend at Rs11 per share i.e. 110%. This is in addition to the interim dividend already paid at Rs22 per share i.e. 220%.
“This outstanding performance was primarily fueled by higher net interest income and provisioning reversals,” said Arif Habib Limited (AHL) in a note.
“Furthermore, UBL’s unprecedented dividend payout in 9MCY23 solidified its position as the leader in dividend payments within the banking sector,” it added.
The net mark-up/return jumped from Rs28.92 billion in 3QCY22 to Rs39.56 billion in 3QCY23, a significant increase of nearly 37%.
The fee and commission income earned by the bank in 3QCY23 amounted to Rs4.89 billion, an increase of 14% against Rs4.29 billion earned in the same period last year.
However, the foreign exchange income of the firm showed a decline of over 31% down from Rs3.03 billion in 3QCY22 to Rs2.31 billion in 3QCY23.
Meanwhile, the bank sustained massive net losses on securities to the tune of Rs7.84 billion in 3QCY23, in comparison to a gain of Rs109.48 million in SPLY.