United Bank Limited (UBL): 2Q2020 EPS at Rs4.96, up 18% YoY (higher than expectations)
- United Bank Limited (UBL) posted 2Q2020 consolidated earnings of Rs4.96/share, up 18% YoY and 24% QoQ.
- The result came in higher than ours and industry expectations due to higher than expected Net Interest Income (NII).
- NII for 2Q2020 settled at Rs22.3bn (up 43% YoY), owing to 22% YoY increase in Markup Interest Earned vs. 6% YoY increase in Markup Interest Expensed.
- This is largely attributable to delay in re-pricing of assets vis-à-vis liabilities amidst declining interest rates.
- NII increased by 25% QoQ with Markup Interest Earned recording a decline of only 1% QoQ.
- Non Interest Income depicted a decline 39% YoY and 9% QoQ as Fee Income declined by 35% YoY and 25% QoQ.
- Operating costs declined by 4% YoY, resulting in Cost to Income clocking in at 40% for 2Q2020 compared to 47% in 1Q2020.
Provisions arrived at Rs6.3bn, an increase of 124% YoY and 69% QoQ most likely emanating from the bank’s international book.
United Bank is engaged in commercial banking and related services. Co. operates five business segments: Corporate Finance, Trading and Sales, Retail Banking, Commercial Banking and Asset Management. As of Dec 31 2016, Co. operates 1,341 branches inside Pakistan including 47 Islamic Banking branches and 2 branches in Export Processing Zones, and 18 branches outside Pakistan.
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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