LAHORE: The United Bank Limited has earned the interest income of Rs16.92 billion as opposed to Rs14.37 billion in 1QCY10, registering a growth of 18 percent brought about through increases in the yield and earning assets.
Similarly, the non interest income of the bank depicted a substantial growth of 32 percent; from Rs2.52 billion in 1QCY10 to Rs3.33 billion in 1QCY11 on the back of enhancing fee commission brokerage income, dividend income, capital gain and other income by 7 percent, 166 percent, 107 percent and 18 percent respectively.
Thus, total income (interest and non interest income) of the bank reached Rs20.24 billion in 1QCY11 as against Rs16.88 billion in the same period last year, showing a significant growth of 20 percent.
According to banking sector experts, interest expenses for the 1QCY11 registered a considerable increase of 27 percent; from Rs6.03 billion in 1QCY10 to Rs7.64 billion. This increase has come at the back of prevailing higher cost of deposits being offered by the bank. During the quarter under review, the bank recorded total provision expenses of Rs2.34 billion, depicting an increase of 10 percent YoY, from PKR2.13 billion in the corresponding quarter of CY10. In addition, the non-interest expenses, displayed an increase of 14 percent YoY.
As per results for 1QCY11, the Bank posted a profit after tax (PAT) of Rs3.40 billion translating into an EPS of Rs2.77 as against PAT of Rs2.74 billion EPS of PKR2.24 during the corresponding quarter last year; hence depicting a superb growth of 24 percent in the bottom line. The surge in the bottom line was mainly driven by higher net interest income and non interest income.
Gross spread of the bank stood at 55 percent in 1QCY11 versus 58 percent in 1QCY10, the decline in gross spread was mainly due to higher cost of deposits and interest bearing liabilities. Average yield on interest bearing liabilities stood at 5.07 percent in 1QCY11 versus 4.67 percent in 1QCY10.