United Bank Limited (UBL) reaped the benefits of high interest rates, claiming a 126 percent increase in profit in the first half of 2023 (1H2023) compared to the same period the previous year.
According to financial statistics made public by the bank, UBL’s profit for the half year 2023 increased to a record high of Rs. 27.522 billion, up from Rs. 12.2 billion in the same time last year.
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The bank reported consolidated earnings of Rs. 10.4 per share in 2Q2023, increasing 379 percent year on year but down 11 percent quarter on quarter. According to Topline Securities, this brings 1H2023 earnings to Rs. 22 per share, up 125 percent year on year, making it UBL’s highest-ever half-year profit.
According to Arif Habib Limited (AHL), UBL accomplished two significant milestones in 1HCY23, including the highest-ever dividend distribution and profitability (PAT).
The bank earned Rs. 72.33 billion in interest income during 1H2023, compared to Rs. 46.99 billion in the previous year’s similar quarter. However, its earnings from non-markup channels fell this year to Rs. 13.13 billion from Rs. 15.63 billion the previous year.
Overall bank expenses grew to Rs. 34.48 billion in 2023, compared to Rs. 26.71 billion reported in a comparable period.
The bank’s overall income increased to Rs. 85.47 billion by the end of the first half of 2023, up from Rs. 62.62 billion previous year.
Due to the adoption of a 10% Super Tax in the Federal Budget FY24, the bank’s effective tax rate increased to 52 percent in 2Q2023 from 42 percent in 1Q2023.
