UBL announces 1HCY12 results – Alfalah Securities Limited

Karachi, July 19, 2012 (PPI-OT): UBL has announced profit after tax of PKR 9.32 billion (EPS: PKR 7.61) in 1HCY12 which is higher by 38.8% YoY along with a dividend payout of PKR 2.0 per shares taking the cumulative DPS to PKR 3 per share.

According to Alfalah Securities Limited, the increase in earnings in 1HCY12 is mainly attributed to 78% YoY decline in provisioning charge to PKR 959.6 million and 26% increase in total non-interest income to PKR 25,590.4 million. While the net interest income witnessed a slight drop due to shrinking banking spreads. On quarterly basis, UBL posted profit after tax of PKR 4.45 billion (EPS: PKR 3.64) which is higher by 30%YoY and lower by 8%QoQ. Alfalah Securities Limited recommends a buy on UBL, which is trading at CY12E P/B of 1.29x and dividend yield of 8.5%.