News Column

UBL Posts Record Profits in 2013, Strong ROE of 22%

February 20, 2014



KARACHI, Feb 20:  UBL has delivered a record consolidated profit of Rs 19.7 billion in 2013, an increase of 3% over 2012. This is despite a challenging environment and is a reflection of the strength of our diversified business model, driven by technological innovation and unique customer-centric product development. The International business has delivered a strong growth across most markets, while the Bank’s subsidiaries in Switzerland and the UK both had record years. The Bank’s new subsidiary in Tanzania commenced its commercial operations during the year and is expected to offer significant opportunities in East African markets.br The balance sheet has crossed a landmark of Rs 1 trillion, growing by 13% over December 2012. This was primarily funded by strong growth in deposits which increased by 19% to Rs 828 Billion. Advances increased by 7% to Rs 391 billion as at December 2013, mainly in the International business, reflecting the improved macroeconomic conditions in the GCC.br Non-interest income increased by Rs. 1 billion over 2012 to reach Rs 18.1 billion. Fees and commissions crossed Rs 10 billion, posting a strong growth of 23%. Higher transaction volumes led the increase along with growth in earnings from corporate customers. Timely leveraging of market opportunities resulted in a significant increase in capital gains to Rs 2.8 billion. The increase in non-fund income offset the decline in markup income caused by the severe spread compression across the banking sector, enabling UBL to maintain its total revenue levels. Focus on asset quality and recoveries resulted in a Rs 4.7 billion (8%) reduction in the level of NPLs. Provisions reduced for a fourth consecutive year and were 68% lower than in 2012.br UBL continued its market leadership in the branchless banking space as our Omni business had a record year of profitability. The “Dukaan” network grew to over 13,000, covering more than 700 cities and towns. Omni continued to receive accolades in international surveys which place its performance well above global and regional averages. UBL remains the market leader in the home remittances business facilitating much needed foreign exchange reserves for the country.br UBL’s flagship Priority Banking channel continues to provide value added services to High Net Worth customers through the exclusive “UBL Signature” brand, with 14 dedicated lounges across the country.br We continue to focus on developing the level of our services within Alternate Distribution Channels. In 2013, 141 new ATMs were deployed, taking the total to over 700, while ATM downtime was reduced to satisfactory levels. In April, UBL became the only Bank to launch an internet acquiring platform, offering a state of the art payment gateway with 3D security. The Bank’s environment friendly Go-Green initiative proved popular with customers, 74,000 of whom have signed up for e-statements. UBL is active on Social Media to increase interaction with customers, particularly for speedy complaint resolution.br UBL feels strongly that all segments of society should have equal opportunities to receive the best education, nutrition and healthcare, while being part of a progressive and benevolent community. In 2013, the Bank donated around Rs 77 million to various institutions, mainly in the education, healthcare and community development areas. In addition, UBL has committed funds and resources to build a UBL Village in the earthquake devastated area of Awaran.br In 2013 some of the most prestigious awardsreceived by the Bank included:br Bank of the Year 2013 Pakistan Award, awarded by the “The Banker”, a prestigious publication owned by The Financial Times Ltd.br Asiamoney Best Domestic Bank in Pakistan Award 2012. Top 25 Companies award by the Karachi Stock Exchange.br UBL’s capital ratios remained strong as the unconsolidated Tier-1 CAR was 10.0% in December 2013 with the overall capital adequacy at 13.3%.The strong capital and liquidity position of the Bank resulted in re-affirmation of our excellent credit ratings from local and international rating agencies.


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Source: Daily Messenger (Pakistan)


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