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UBL profit before tax declines 12 percent

Staff Report

KARACHI: United Bank Limited (UBL) announced consolidated profit before tax (PBT) of Rs 4.2 billion for the first quarter of year 2009, nearly 12 percent lower than last year, mainly on account of the recessive conditions in the domestic market and the persistent global slowdown.

Profit after tax at Rs 2.8 billion translates into basic Earning per Share (EPS) of Rs 2.72, which is 12 percent lower than in the same period last year. Net interest income grew nearly 25 percent whereas non-interest income was lower by the same percentage largely due to lower fee commissions and lower income on derivatives.

Operating revenue, however, closed 8 percent higher than last year, at Rs 10.7 billion.

Administrative expenses were 12 percent higher during the first quarter. Whilst nearly half of the increase is attributable to personnel cost, one-fourth is due to higher premises costs including rent, gas and electricity charges.

High domestic inflation (CPI: 21%) also contributed towards the increase in operating expenses. Total assets grew by Rs 21 billion to Rs 642 billion in the last three months. Remittances achieved record levels during the first quarter, peaking in the month of March, said the bank in a press release issued here on Monday.

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