United Bank Limited (UBL) has been making efforts over the past few years to offer high-end services to its customers in a bid to position itself as a market leader in the country’s banking industry. However, despite the efforts, the bank has failed to experience a surge in profits. The financial results submitted to the Pakistan Stock Exchange (PSX) on Thursday reveal that the bank’s profit for the third quarter stood at PKR 5.85 billion, down 16.43% compared to the last quarter. The drop in profits is attributed to higher operating costs and charge of provision expense during the third quarter.
UBL posted earnings of PKR 19 billion in the past 9 months (January – September), down 10.38% from a year ago. The bank also announced an interim cash dividend of PKR 3 per share, which is in addition to already paid dividend of PKR 6 per share.
The bank’s total net mark-up income for the third quarter dropped to 2.17%, amounting to a total of PKR 13.66 billion during the quarter that ended on 30 September, 2017. Moreover, non-interest expense of the bank was up by 17%. The bank also booked provisioning expense of PKR 633 million versus provision reversal of PKR 278 million.
UBL is one of the largest private banks of Pakistan. Currently, the bank has a network of almost 1,375 branches across the country, and 19 branches overseas. UBL was declared Pakistan’s Best Bank 2016 at the first Pakistan Banking Awards and the bank’s entity ratings were also upgraded to AAA/A-1+.