United Bank Limited (UBL): 3Q2020 EPS at Rs3.86, down 7% YoY (in line with expectations)
- United Bank Limited (UBL) posted 3Q2020 consolidated earnings of Rs3.86/share, down 7% YoY and 16% QoQ.
- The result came in line with industry expectations. However, Net Interest Income (NII) came in higher than our expectations, which was offset by higher than expected provisioning expense.
- NII for 3Q2020 settled at Rs19.7bn (up 24% YoY and down 12% QoQ). Although the bank saw a substantial 27% QoQ drop in Interest Expense, Asset re-pricing resulted in lower Interest Earned by 19% QoQ.
- Non Interest Income decline was limited to just 2% QoQ, where Fee Income and Forex Income grew by 18% QoQ and 17% QoQ, respectively. However, absence of capital gains dragged the overall Non Interest Income down.
- Operating costs increased by 1% QoQ. Although costs were kept in check, the decline in NII, led to Cost to Income clocking in at 46% for 3Q2020 compared to 40% in 2Q2020.
Provisions arrived at Rs5.5bn, a decrease of 12% QoQ but still a massive increase of 171% YoY. In 9M2020, provisions have increased by 171% YoY to Rs15.4bn for 9M2020, largely stemming from its international book.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.
Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.
JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).
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