United Bank Limited has maintained double-digit growth in profitability of 17 percent year-on-year in the first half of 2020 despite issues and challenges related to COVID-19 that made it challenging to conduct operations and business activities for the banking industry.
The bank reported a profit of 13 percent year-on-year during the second quarter, wherein the lockdown was imposed across the country including the enforcement of reduced working hours for bank branches.
In the second quarter, the profit of the bank stood at Rs. 5.81 billion with an increase of Rs. 0.7 billion year-on-year despite the interest rates falling significantly.
Overall, the bank reported a profit of Rs. 10.7 billion during the period of January to June as compared to a profit of Rs. 9.167 billion reported in the corresponding period of last year.
The results were better-than-expected mainly on account of better foreign exchange (FX) income and lower operating expenses. High FX income could possibly be due to higher volatility of Rupee against Dollar during the quarter whereas improved operating expenses were thanks to reduced management compensation expenses.
Fee income showed contraction as compared to the last year possibly due to partial shut down of branches and COVID-19 related business pressures. With an improving situation, fee income is likely to resume its growth trajectory going forward. Bank’s provisions were somewhat higher on a sequential basis.
The earnings per share of the bank increased to Rs. 8.95 from Rs. 8.58.
Recently, the bank witnessed a transformation in the leadership as the new CEO, Shahzad Dada, joined in with high hopes to take the bank to new heights.
The post UBL Maintained Double-Digit Profit Growth During H1 2020 Despite COVID-19 appeared first on .
from Business https://ift.tt/31opgWp
Posts
0 Comments