UBL Posts Highest-Ever Half Yearly Profit of Rs. 27.5 Billion

United Bank Limited (UBL) cashed in on high-interest rates reporting a record-breaking profit growth of 126 percent in the first half of 2023 (1H2023) compared with a similar period of the last year. According to financial results made public by the bank, UBL’s profit for the half year 2023 grew to a record high level of Rs. 27.522 billion as compared to Rs. 12.2 billion registered by the bank in a similar period of the last year. The bank posted 2Q2023 consolidated earnings of Rs. 10.4 per share, up 379 percent YoY while down 11 percent QoQ. This takes 1H2023 earnings to Rs. 22 per share, up 125 percent YoY, which is the highest-ever half-yearly profit recorded by UBL, according to Topline Securities. According to Arif Habib Limited (AHL), UBL achieved two notable milestones, recording the highest-ever dividend payout and profitability (PAT) in 1HCY23. The bank posted an interest income of Rs. 72.33 billion during 1H2023 compared to interest income of Rs. 46.99 billion reported in the corresponding period of the last year. However, its earnings from non-markup avenues were down this year to Rs. 13.13 billion from Rs. 15.63 billion last year. Overall expenses of the bank also increased to Rs. 34.48 billion in the said period of 2023 as compared to Rs. 26.71 billion reported in a similar period. The total income of the bank surged to Rs. 85.47 billion by the end of the first half of 2023 as compared to Rs. 62.62 billion reported last year. The effective tax rate of the bank clocked in at 52 percent in 2Q2023 vs. 42 percent in 1Q2023 due to the imposition of a 10 percent Super Tax in the Federal Budget FY24.