United Bank Limited (UBL) reported a healthy profit increase of 23% in the first quarter of 2022.
According to the financial results, the bank’s profit from January to March 2022 was Rs. 9.39 billion, up from Rs. 7.58 billion in the same period of 2021, a growth of Rs. 1.8 billion or 23 percent.
After a long period of time, UBL has surpassed Habib Bank Limited in terms of profitability.
Earnings increased due to an increase in total income and a decrease in provisioning. The bank’s total income was Rs. 29.13 billion, up 22.6 percent from Rs. 23.76 billion the previous year.
In the first quarter of 2022, UBL made a profit of Rs. 9.3 billion, while HBL made a profit of Rs. 8.6 billion. UBL’s profit before tax was Rs. 15.7 billion, compared to Rs. 14.6 billion for HBL.
UBL’s net interest income was Rs. 22.36 billion, up 28 percent from Rs. 17.50 billion the previous year.
UBL achieved a profit of Rs. 30.5 billion in 2021, keeping its position as the industry’s third most profitable company. HBL, on the other hand, recorded a profit of Rs. 35.5 billion last year and remained the country’s most profitable bank.
In 2021, UBL’s profit increased by 47 percent year over year, compared to HBL’s annual profit growth of 15 percent. In the first quarter of 2022, UBL’s profit increased by 23 percent, whereas HBL’s profit increased by less than one percent.
The fight between these two banks appears to be heating up in the coming months.
UBL’s interest income in the first quarter of 2022 was Rs. 22.3 billion, up from Rs. 17.5 billion in the same period the previous year. In the first quarter of 2022, non-markup interest totaled Rs. 13 billion, compared to Rs. 11 billion in the first quarter of 2021.
UBL’s earnings per share improved to Rs. 7.58 from Rs. 6.21 in the previous quarter. The interim cash dividend of Rs. 5 per share was declared by the board of directors.