UBL enjoys its position after becoming a member of Two Trillion Club (two-thousand-billion) in Pakistan followed by Habib Bank and National Bank of Pakistan. Today UBL lead with a 24% market share of home remittances space. Over US$6bn home remittances channelled to Pakistan in the last one year.
Deposits play a vital role in any Bank’s financial growth and its penetration in the market through its customer’s trust in its services and reach. With more than 1361 branches and a nationwide Banking over 1455 ATM network paid a strong return to UBL by recording 11% growth in nine-months. Another advantage taken by UBL is its financial inclusion segment from lower to middle and upper classes of our society and a true picture can be depicted from UBL’s over 400,000 thousand new current accounts. The total Deposit base stood at Rupees 1.35 trillion, which is 11% higher in the same period in FY2019.
On Monday 26th October, UBL announced its financial results for nine-months-period i.e. September 30th, 2020. It was announced that UBL’s stood at 16bn Profit After Tax (PAT). A point to be noted that UBL has recorded 12% growth over last year and maintained its momentum by recording Rupees 71bn as its gross revenues. UBL has also done well with its overall Capital Adequacy Ratio (CAR) well above minimum Regulatory requirement of minimum 12% and remained strong by recording CAR at 22.8% at the end of 3rd Quarter FY2020.
Another side of the picture
UBL is a domestic leader but the other side of the picture is that the Bank recorded a decline in the profit for the 3rd Quarter which is 7.8 percent less than the profit earned in the same period last year which is then translated into Rupees 3.8 Earning per Share (EPS). At the same time, the Bank did not announce any interim cash for the 3rd Quarter ended on September 30.
However, the Net interest income was higher than expected with Rupees 3.785 bn higher than last year, and the asset re-pricing, and 27 percent Quarter-on-Quarter drop in interest expense, resulted in the lower interest-earning by 19% Quarter-on-Quarter. The Bank’s non-mark-up income dropped 23% which is Rupees 4.518bn to Rupees 5.872bn last year, Commission income dropped by 23% Rupees 3.049 bn from Rupees 3.954 bn last year, another 28% of Rupees 112.680million from 144.874million on account of dividend income compared to FY2019.