Government of Pakistan is scheduled to offer its
shareholding (19.8% of outstanding shares) in United Bank to international and
domestic investors on 11th Jun'14. The base size is determined as 160 million
shares, whereas upsize can accommodate additional 81.9 million shares. Floor
price will be announced through notice to all three exchanges after market
close on June 10, 2014.
Profit after tax of United Bank have gone up by 19% CAGR (CY10-CY-13). Though, the growth has been impressive, surge in Net Interest Income (7%) lagged the escalation of Net Interest Expense (12%) primarily as Policy Rate dropped from 14% to 9%, to close at 10%. Resultantly, Gross spread ratio deteriorated to 52.1% (CY13) from 57.8% (CY10).
Being the first commercial bank to launch Branchless Banking (BB) seems keen to hold on to its initiative as UBL Omni retained its 27% share in 4QCY13, whereas its main competitor Easy Paisa saw its share falling to 59%. Further Omni revenue in Q1'14 grew by 60%.
Profit after tax of United Bank have gone up by 19% CAGR (CY10-CY-13). Though, the growth has been impressive, surge in Net Interest Income (7%) lagged the escalation of Net Interest Expense (12%) primarily as Policy Rate dropped from 14% to 9%, to close at 10%. Resultantly, Gross spread ratio deteriorated to 52.1% (CY13) from 57.8% (CY10).
Net Interest Income for Q1'14 increased by 12%YOY to settle
at PKR9.8 billion with Gross Spread Ratio declining to 50.6% from 51.7% in
Q1'13.
The Bank targeted an investment focused asset allocation
with a lengthening maturity profile, consequently ADR & IDR moved inversely
as they settled at 45% & 57% from 47% & 51% a quarter earlier. PIB
holdings ballooned up by 90% QoQ.Being the first commercial bank to launch Branchless Banking (BB) seems keen to hold on to its initiative as UBL Omni retained its 27% share in 4QCY13, whereas its main competitor Easy Paisa saw its share falling to 59%. Further Omni revenue in Q1'14 grew by 60%.
Bank management has not only focused on domestic geographical
diversification but also extended outreach internationally by launching 18
international branches. Further it expanded its spectrum of services by
establishing 5 subsidiaries, locally and internationally.
No comments:
Post a Comment