United Bank (UBL) Q1 2024 earnings summary

Executive summary

• Standalone Q1’24 PBT was Rs. 30.5bn, up 25% YoY; PAT was Rs. 15.6bn vs. Rs. 13.9bn. Consolidated PAT reached Rs. 16.1bn vs. Rs. 14.5bn, with EPS of Rs. 13.05 vs. Rs. 11.62.

• Standalone gross revenue was Rs. 47.0bn, up 12% YoY, including Rs. 26.6bn net mark-up income and Rs. 20.4bn non-mark-up income.

Financial highlights

• Consolidated total income was Rs. 49.4bn vs. Rs. 44.2bn; PBT was Rs. 31.2bn vs. Rs. 25.1bn; PAT was Rs. 16.1bn vs. Rs. 14.5bn.

• Consolidated net mark-up income was Rs. 28.1bn vs. Rs. 34.9bn; non-mark-up income was Rs. 21.3bn vs. Rs. 9.3bn, including Rs. 12.8bn net gains on securities.

• Fee-based revenue increased 21% YoY; Rs. 12.8bn of gains came from sales of government and foreign securities.

• Standalone operating expenses rose 21% YoY to Rs. 17.6bn; staff costs increased 26% to Rs. 7.5bn and property expenses rose 9% to Rs. 2.4bn.

• Net credit loss allowance reversal was Rs. 1.7bn vs. a Rs. 2.6bn charge in Q1’23; standalone tax expense was Rs. 14.9bn vs. Rs. 10.5bn.

Outlook and guidance

• 2024 priorities include building core businesses, sustaining returns on equity, expanding the branch network in captive markets, and enhancing digital platforms and customer experience.

• Transformation plans include realigning structures and processes and retaining and attracting talent to support future growth aspirations.