UBL announced a dividend of PkR4/sh

· United Bank Limited (UBL) announced its 9MCY21 results yesterday where the bank reported earnings of PkR17.8 (NPAT: PkR21.9bn) compared to PkR12.8 (NPAT: PkR15.4bn) in the same period last year. The result came in line with our expectations.

· Together with the result, the bank announced a dividend of PkR4/sh, taking YTD cumulative payout to PkR12/sh.

· For 3QCY21, earnings stood at PkR6.8bn (EPS: PkR5.5), down 8.5%QoQ/+46.5%YoY where the sequential decline is attributable to initiation of windup proceedings of Switzerland branch.

· Net Interest Income (NII) of the bank remained flat on a QoQ basis despite Gross Yield of the bank dropping significantly to 45.6% – the lowest since 1QCY20 possibly due to maturity of high yielding PIBs.

· The bank continues to record reversal in provision which for 3QCY21 stood at PkR708mn compared to PkR534mn in the previous quarter.

· Effective tax rate of the bank stood at 42.0% in 3QCY21 vs. 45.5% in the previous quarter

Courtesy – AKD Research

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