UNITED BANK LIMITED LEADING THE WAY IN DIGITAL REVOLUTION
H A L F Y E A R LY R E P O R T
J U N E 3 0 , 2 0 2 3
( U N - A U D I T E D )
CONTENTS
Company Information | 02 |
Directors' Report to the Members | 03 |
Unconsolidated Condensed Interim Financial Statements | 07 |
Independent Auditors' Review Report | 08 |
Unconsolidated Condensed Interim Statement of Financial Position | 09 |
Unconsolidated Condensed Interim Profit and Loss Account | 10 |
Unconsolidated Condensed Interim Statement of Comprehensive Income | 11 |
Unconsolidated Condensed Interim Statement of Changes in Equity | 12 |
Unconsolidated Condensed Interim Cash Flow Statement | 13 |
Notes to the Unconsolidated Condensed Interim Financial Statements | 14 |
Consolidated Condensed Interim Financial Statements | 45 |
Consolidated Condensed Interim Statement of Financial Position | 46 |
Consolidated Condensed Interim Profit and Loss Account | 47 |
Consolidated Condensed Interim Statement of Comprehensive Income | 48 |
Consolidated Condensed Interim Statement of Changes in Equity | 49 |
Consolidated Condensed Interim Cash Flow Statement | 50 |
Notes to the Consolidated Condensed Interim Financial Statements | 51 |
Directors' Report to the Members (Urdu) | 84 |
Half Yearly Report 2023 | 01 | |
COMPANY INFORMATION
Board of Directors | ||
Sir Mohammed Anwar Pervez, OBE, HPk | Mr. Muhammad Irfan A. Sheikh | |
Chairman/Non-Executive Director | Non-Executive Director | |
Lord Zameer M. Choudrey, CBE, SI Pk | Mr. Daniel Michael Howlett | |
Non-Executive Director | Independent Director | |
The Honourable Haider Zameer Choudrey | Mr. Tariq Rashid | |
Non-Executive Director | Independent Director | |
Mr. Rizwan Pervez | Ms. Shazia Syed | |
Non-Executive Director | Independent Director | |
Mr. Muhammad Jawaid Iqbal | ||
President & CEO | ||
COMMITTEES OF THE BOARD | Chief Financial Officer | |
BOARD AUDIT COMMITTEE (BAC): | Mr. Arif Akmal Saifie | |
Ms. Shazia Syed | Chairperson | Company Secretary & Chief Legal Counsel |
The Honourable Haider Zameer Choudrey | Member | |
Mr. Rizwan Pervez | Member | Mr. Aqeel Ahmed Nasir |
Mr. Tariq Rashid | Member | |
Mr. Aqeel Ahmed Nasir | Secretary | Registered Office: |
BOARD HUMAN RESOURCE & COMPENSATION COMMITTEE | ||
13th Floor, UBL Building, Jinnah Avenue, | ||
(HRCC): | Blue Area, Islamabad. | |
Mr. Tariq Rashid | Chairman | UBL Head Office |
Sir Mohammed Anwar Pervez, OBE, HPk | Member | I.I. Chundrigar Road, Karachi - 74000, Pakistan. |
Ms. Shazia Syed | Member | |
Lord Zameer M. Choudrey, CBE, SI Pk | Member | Share Registrar |
Mr. Abdul Jabbar Junejo | Secretary | THK Associates (Pvt.) Limited |
BOARD RISK & COMPLIANCE COMMITTEE (BRCC): | Plot No. 32-C, Jami Commercial Street - 2 | |
D.H.A. Phase VII, | ||
Mr. Daniel Michael Howlett | Chairman | Karachi - 75500. |
Phone No.: 021-35310187 | ||
Lord Zameer M. Choudrey, CBE, SI Pk | Member | UAN: 021-111-000-322 |
Mr. Muhammad Irfan A. Sheikh | Member | Fax No.: 021-35310190 |
Mr. Muhammad Jawaid Iqbal | Member | Email: sfc@thk.com.pk |
Mr. Imran Sarwar | Secretary | Auditors |
BOARD IT COMMITTEE (BITC): | ||
M/s. EY Ford Rhodes | ||
The Honourable Haider Zameer Choudrey | Chairman | Chartered Accountants |
Mr. Rizwan Pervez | Member | Legal Advisors |
Mr. Daniel Michael Howlett | Member | M/s. Mehmood Abdul Ghani & Co. |
Mr. Muhammad Irfan A. Sheikh | Member | Advocates |
Mr. Muhammad Jawaid Iqbal | Member | Contacts |
Mr. Sohail Aziz | Secretary | |
BOARD NOMINATION COMMITTEE (BNC): | UAN: 111-825-111 | |
Contact Centre: 111-825-888 | ||
Sir Mohammed Anwar Pervez, OBE, HPk | Chairman | Website: www.ubldigital.com |
Email: customer.services@ubl.com.pk | ||
Lord Zameer M. Choudrey, CBE, SI Pk | Member | |
The Honourable Haider Zameer Choudrey | Member | |
Mr. Aqeel Ahmed Nasir | Secretary |
02 United Bank Limited
DIRECTORS' REPORT TO THE MEMBERS
On behalf of the Board of Directors, we are pleased to present the financial statements of United Bank Limited (UBL) for the half year ended June 30, 2023.
Performance Overview
On a standalone basis, UBL recorded Profit Before Tax (PBT) of Rs. 50.6 billion for the half year ended June 30, 2023, with strong and consistent growth of 48% year on year.
The Bank's gross revenues were recorded at Rs. 81.1 billion for H1'23, with an increase of 36% year on year. Net mark-up income stood at Rs. 68.9 billion for H1'23, a strong growth of 53% versus last year. Non-markup income of Rs. 12.2 billion was earned in H1'23 (H1'22: Rs. 14.7 billion), with fee-based revenues maintaining the overall business momentum during the year.
The bank's operating expenses stood at Rs. 29.9 billion for H1'23, with an increase of 24% over H1'22, as a result of higher inflation levels and reinvestment across core businesses. Cost to income ratio improved to 36.9% for H1'23 as against 40.3% in the corresponding period of last year.
The bank recorded a net provisioning reversal of Rs. 0.5 billion for H1'23, mainly due to strong recoveries across both domestic and international, while maintaining prudent coverage levels on its loans and investment portfolios.
Financial Highlights
On a standalone basis, UBL recorded Profit After Tax (PAT) of Rs. 26.3 billion for H1'23 versus a PAT of Rs. 11.9 billion for H1'22. Earnings per share (EPS) was measured at Rs. 21.50 for H1'23 (H1'22: Rs. 9.69).
On a consolidated basis, UBL recorded PAT of Rs. 27.5 billion (H1'22: Rs. 12.2 billion). The consolidated EPS
was measured at Rs. 22.01 for H1'23 (H1'22: Rs. 9.77).
Net Markup Income
Net markup income was recorded at Rs. 68.9 billion for H1'23, with a significant growth of 53% year on year. The bank's total asset base averaged Rs. 3.0 trillion in H1'23, growing by 22% year on year. Bank level Net interest margins (NIMs) were measured at 5.5% for H1'23 (H1'22: 4.5%).
The State Bank of Pakistan (SBP) increased the policy rate over the last one year from 13.75% at Jun'22 to 22.0% at Jun'23. This was to counter the effects of rising inflation, also driven by the increase in global commodity prices and weakening in the domestic currency.
Benchmark interest rates averaged over 20% in H1'23 versus 12.4% in H1'22, which along with timely repositioning within the asset base, improved margins over the corresponding period of last year.
Domestic CASA deposits averaged Rs. 1.5 trillion for H1'23, with a growth of 13% year on year, with a portfolio increase of Rs. 167 billion. The average CASA to total deposits ratio continued to strengthen and was measured at 90.3% in H1'23 (H1'22: 87.2%). The bank added 474,000 new current account relationships in H1'23 as against 303,000 in the corresponding period. This resulted in average current deposits recording a growth of 16% year on year to Rs. 802 billion in H1'23. Resultantly, the average current to total deposits ratio improved to 48.3% in H1'23 from 45.2% in H1'22.
The domestic portfolio of savings accounts averaged Rs. 698 billion in H1'23, with a steady increase of 9% year on year. The domestic cost of deposits was measured at 8.2% as against 5.1% in the corresponding period of last year, thus remaining relatively well contained despite the sharp increase in interest rates in the last 12 months.
Half Yearly Report 2023 | 03 | |
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Disclaimer
United Bank Ltd. published this content on 11 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 August 2023 12:31:08 UTC.
