United Bank Limited showed outstanding resilience in profitability, making a handsome profit of Rs. 19.1 billion in 2019.
The bank's profit surged over 25 percent in 2019 from the bottom line of Rs. 15.22 billion recorded last year, which was a tough year for the bank as it recorded a Rs. 10 billion decline in profits.
The bank recorded its highest-ever profit of Rs. 27.7 billion merely two years ago in 2017. After a massive fall in profits in 2018, the bank is slowly recovering, which can be seen in the profit growth of 2019. It remained the top or the second-most profitable bank in the industry but it lost its status last year.
The bank made handsome margins from its interest income and non-markup income from the last calendar year which stood at Rs. 61 billion and Rs. 83.4 billion, with an increase of over Rs. 5 billion and Rs. 2 billion respectively from last year. High interest rates and investment in bonds and securities worked well for its revenue streams.
The bank also saw an increase in its expenses by 4.2 percent which stood at Rs. 40.9 billion in 2019.
UBL paid taxes of Rs.15.1 billion to the government.
Its earning per share also grew to Rs. 15.63 this year from Rs. 12.44 last year. A cash dividend of Rs. 4 was announced for the shareholders in addition to Rs. 8 already paid to them this year.
The bank is focusing its business on retail and corporate banking using technological tools in the domestic market. It is working towards the consolidation of its overseas operations which has been running in red in various countries.
The profitability will be sustained this time around as it may take its position among the top three profitable banks of 2019.
Source: Pro Pakistani