Home Business UBL continues to have a stellar 2021; 9M earnings of Rs 39 billion, up 49% 

UBL continues to have a stellar 2021; 9M earnings of Rs 39 billion, up 49% 

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LAHORE – UBL continued its robust momentum in 2021 because the financial institution earned Revenue Earlier than Tax (PBT) of Rs. 39.Three billion for the interval ended September 30, 2021, a robust development of 49% 12 months on 12 months, with earnings per share (EPS) of Rs. 18.6 (9M’20: Rs. 13.1). The financial institution declared a dividend of Rs. 4.zero per share for Q3’21, which is along with the Rs. 8.zero per share declared earlier, taking the general payout to Rs. 12.zero per share 12 months to this point.

UBL is a agency believer that specializing in constructing human capital, funding in IT programs whereas creating operational efficiencies is vital to sustainable earnings. However equally vital is worker recognition, we consider the success this 12 months has been the results of a extremely passionate work drive. Our groups have served with a transparent sense of objective with all efforts directed in the direction of better organizational aspirations. 

Serving the nation with one of many largest department networks in Pakistan 

UBL stays one of many key monetary establishments within the nation serving over 10 million prospects, with a community of 1,344 branches inside Pakistan, 1,436 ATMs, over 35,000 Omni brokers, effectively supported by the financial institution’s award-winning digital banking providers. The Department Banking Group delivered a document efficiency in 2021, with robust development in common home deposits of over 21% because the financial institution continues to broaden its buyer base throughout key geographies. Home deposits averaged Rs. 1.5 trillion in 9M’21, with the home CASA to whole deposits ratio at 85.5% for 9M’21. This aggressive deposit mobilization enabled the UBL to broaden its common market share to eight.4% in 9M’21 (9M’20: 8.1%). 

UBL can be actively collaborating in all main financial packages launched by the Authorities of Pakistan and the State Financial institution of Pakistan. Constructing on its market main place within the dwelling remittances area, the financial institution is on the forefront of the Roshan Digital Account initiative. UBL is proud to be one of many high banks collaborating in RDA with over 48,000 accounts opened to this point, with inflows of USD 257 million. 

Islamic Banking – UBL ‘Ameen’ gaining momentum with enhanced footprint  

UBL sees Islamic banking as an emergent and rising alternative and is aggressively specializing in increasing inside this key area The Islamic department community consists of 114 branches in addition to 201 Islamic Banking Home windows. Islamic banking deposits grew to Rs. 127 billion at Sep’21, a rise of 14% since Dec’20. Islamic asset acquisition stays a key precedence for UBL. The mortgage e book for this section averaged Rs. 34 billion in 9M’21, rising by over 71% 12 months on 12 months. 

Give attention to Non-Funded Revenue to diversify income steams 

The nation is strongly re-emerging from the pandemic, with financial exercise rebounding to pre-COVID ranges. This enabled the financial institution to document a 12 months on 12 months development of 31% in home charges and fee revenues, with robust contribution from all main segments.  A robust momentum was witnessed within the bancassurance area with fee revenue up 56%.  There was additionally a pointy enchancment in payment revenue from shopper finance, with a rise of 29%. Charge revenue from debit and bank cards was recorded at Rs. 1.Eight billion for 9M’21, rising by a robust 71%.  Company Banking earned funding banking charges of Rs. 456 million in 9M’21 as towards Rs. 139 million in 9M’20, pushed by mandates for debt association in addition to different advisory providers. Fee revenue from money administration was recorded at Rs. 711 million for 9M’21, rising by 20% 12 months on 12 months as throughput volumes witnessed a big improve with integration to the financial institution’s digital company portal, reaching a a lot wider consumer base. The financial institution stays the popular companion to the abroad Pakistani diaspora who proceed to place their belief in UBL, as we maintained our main market share of over 20% in dwelling remittances area.  Non-markup revenue was additional augmented by the well timed realization of market positive factors on the financial institution’s mounted revenue sovereign bonds holdings, leading to capital positive factors of Rs. 3.Three billion in 9M’21. 

Cautiously Constructing Property whereas enhancing credit score high quality 

Financial institution degree performing advances averaged Rs. 542 billion for 9M’21, declining by 7% 12 months on 12 months. The financial institution stays targeted on constructing its mortgage e book because the economic system transitions out of the pandemic. The patron e book averaged Rs. 19 billion for 9M’21, rising by 11% 12 months on 12 months, pushed by the wholesome momentum inside the secured autos section. The financial institution has additional strengthened its credit score requirements, enhanced its danger administration capabilities in addition to stepped up its restoration efforts inside each home and worldwide companies, which has resulted in web provision reversals of Rs. 415 million for 9M’21.

Worldwide enterprise getting into part of consolidation and stability

The financial atmosphere inside the GCC has began to choose up momentum because the pandemic step by step recedes and can be supported by a pointy rise in oil costs. Inside Worldwide, UBL is seeking to construct a sustainable enterprise mannequin pushed primarily by a robust base of low value deposits. On the asset aspect, lending stays selective, confined to current high quality relationships, with rigorous oversight to comprise any new NPL formation. After going via a difficult interval of de-risking and optimizing the enterprise mannequin, the financial institution’s Worldwide enterprise has entered a interval of stability, recording a PBT of USD 30.1 million in 9M’21.

Digital Banking – Greatest in its class with rising penetration 

UBL being one of many largest monetary establishments in Pakistan prides itself in being an business chief that’s driving the digital revolution within the nation. We proceed to be effectively acknowledged because the financial institution was declared the ‘Best Digital Bank’ in Pakistan for the second consecutive 12 months by Asiamoney.  The award acknowledges UBL’s main function as some of the progressive and revolutionary banks within the nation. UBL was additionally declared the ‘Greatest Digital Financial institution’ on the 2020 Pakistan Banking Awards. 

We’ve got additionally not too long ago launched the UBL Digital Islamic Account and launched wealth administration providers on the cellular app. The financial institution is effectively on course to cross 2 million digital prospects this 12 months, with the variety of digital transactions rising by over 90% 12 months on 12 months. 

Commenting on the outcomes, Mr. Shazad G. Dada, President & CEO of UBL stated, “I am very proud of our deposit growth, which has been the highest in the last 5 years, at over 21% and our aspiration is to continue to take this take this to new highs in years to come. Our focused attention towards NFI has borne fruit and our International operations are making a healthy contribution to our overall profitability. Credit quality remains strong with sound risk management as we gain ground with larger trade volumes.  We will continue to live up to our position as Pakistan’s leading Digital Bank and deliver the highest standards of service to our rapidly growing customer base.  We are making investments in our branch network, technology infrastructure and on our people, as we aim to become the best service bank in the industry. As a team, we are excited about our future prospects, with a number of key strategic initiatives underway.”



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