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.
