UBL remains at the forefront with Q1 pbt of Rs24.4bn.

• Position: United Bank Limited

Bank records strong growth of 49% in top line revenues and increased vigilance on costs UBL continues its momentum with solid results with Profit After Tax of Rs. 13.9 billion for Q1'23 as against Rs. 9.5 billion for Q1'22, with a growth of 46% year on year. Earnings per share (EPS) stood at Rs. 11.36 for Q1'23 compared to Rs. 7.78 for Q1'22. The Board of Directors, in their meeting held in Islamabad on April 28, 2023, declared a consistently strong dividend payout of Rs. 11.0 per share for Q1'23. UBL maintains healthy capital levels as the Capital Adequacy Ratio (CAR) stood at 17.6% as at Mar'23, an excess of 5.6% over regulatory minimum requirements and ROE of 28% (Mar'22: 23%).

The Bank's gross revenues stood at Rs. 42.0 billion, growing by 49%, driven by the buildup in the deposit base and a well-positioned investment portfolio. The Bank earned net markup income of Rs. 33.3 billion in Q1'23, up 55% year on year due to a robust growth in average earning assets and improvement in Net interest margins (NIMs) from 4.3% to 5.2% in Q1'23.

Non-Fund Income (NFI) was reported at Rs. 8.8 billion for Q1'23, contributing 21% to total gross revenues. Fee and commission income of Rs. 4.3 billion was earned in Q1'23, an increase of 11% primarily from fees from branch banking operations, income from debit and credit card fees and doubling of income from trade and guarantee business. The Bank earned foreign exchange income of Rs. 4.3 billion for Q1'23 as against Rs. 1.3 billion last year, due to proactive balance sheet positioning and active trading.

UBL remains the preferred partner to overseas Pakistanis who continue to place their trust in UBL. As a result, the Bank recorded a market share of over 21% within the home remittances space with a net commission income of Rs. 503 million earned in Q1'23.

Despite significant inflationary pressures, UBL improved its cost to income ratio to 35% from 42% last year with a tight control on expenses and continued to focus on cost saving initiatives.

Largest customer base

UBL continues to serve its expanding customer base with a footprint of 1,343 branches (Pakistan: 1,335), deposits of over Rs. 2.1 trillion and net advances of Rs. 711 billion as at Mar'23. In 2023, the bank's focus remained on building its core deposits with a robust growth of 12% in average current deposits. As a result, the average current to total deposits ratio improved to 47.1% in Q1'23 (up from 45%) and strong CASA ratio of 90%.

UBL remains...