Financial Statements - United Bank Limited

More documents

Recommendations

Info

U N I T E D B A N K L I M I T E D Directors’ Report to the Members On behalf of the Board of Directors, I am pleased to present to you the 54 th Annual Report of United Bank Limited for the year ended December 31, 2012. Financial Highlights UBL achieved a profit after tax of Rs 18.0 billion which is 16% higher than last year and translates into earnings per share of Rs 14.71 (2011: Rs 12.66). On a consolidated basis, UBL achieved a profit after tax of Rs 19.3 billion, an increase of 30% over 2011. The Board of Directors is pleased to recommend a final cash dividend of Rs 3.5 per share i.e. 35% and a bonus share issue of Nil for the year ended December 31, 2012, bringing the total cash dividend for the year 2012 to 85%. UBL has achieved a pre-tax profit of Rs 27.0 billion which is 12% higher than last year in a challenging operating environment. This has been achieved despite severe spread compression, through a growth in the balance sheet, improved non fund income and lower provisions. The continually declining rate environment has resulted in yield on earning assets reducing by 100 bps over 2011. Cost of funds fell by only 13 bps as the increase in the minimum PLS saving rate limited rate reduction on deposits. Consequently, the net interest margin for 2012 was 87 bps lower than in 2011. The Bank was able to offset most of this spread compression through balance sheet growth, with net interest income declining by 2% to Rs 38.6 billion in 2012.Total provisions declined by 40% from Rs 7.5 billion in 2011 to Rs 4.5 billion for 2012, while net credit loss ratio improved from 2.1% to 1.1%. Non-interest income increased substantially, from Rs 12.7 billion to Rs 17.1 billion, a growth of 35% over last year. Fees and commissions grew by 17% to Rs 8.2 billion, mainly attributable to
U N I T E D B A N K L I M I T E D increase in remittances, FI commissions, improved general banking fees and cross-sell of bancassurance. Higher investments in mutual funds resulted in dividend income rising to Rs 2.7 billion, while derivatives income increased to Rs 3.0 billion, primarily on account of one-off gains. Cost management Administrative expenses increased to Rs 23.5 billion in 2012. This increase was largely driven by the full year impact of the Bank’s 2011 branch network expansion program, substantial growth in the Omni branchless banking business and UBL’s continuing investments in technology and business building. On a comparable basis, expense growth was contained to 10% over the prior year. Growth in Balance Sheet UBL grew its balance sheet by 15% over December 2011. This was primarily funded by a growth in deposits which increased by 14.2% to Rs 700 Billion at December 2012. Domestic core deposits increased by 16%, while the Bank shed opportunistic and expensive deposits. The domestic low cost deposit ratio also improved, as did the CASA ratio, which improved from 80% in December 2011 to 83% in December 2012. Gross advances increased by 11.7% to Rs 409 billion in December 2012, up from Rs 366 billion in December 2011. Despite the reduction in interest rates, the advances to deposits ratio continued to reduce, in line with the rest of the banking sector The Bank was able to deliver better returns as the return on average assets increased from 2.1% in 2011 to 2.2% in 2012 and the return on equity improved from 23.7% to 24.3%. Strong Capital Ratios UBL’s capital adequacy ratio (CAR) continued to strengthen year on year due to the bank’s organic capital generation capabilities. Total CAR improved from 14.3% in December 2011 to 14.8% in December 2012. Tier 1 CAR was maintained at 10.5% as in 2012, the bank paid interim dividends totaling Rs 5 per share in addition to the Rs 6 per share final dividend for the previous year. On a consolidated basis, the Tier 1 CAR as at December 2012 was 10.1% whilst total CAR was 14.7%.
Page 1: United Bank Limited UNCONSOLIDATED
Page 5 and 6: U N I T E D B A N K L I M I T E D B
Page 7 and 8: U N I T E D B A N K L I M I T E D n
Page 9 and 10: U N I T E D B A N K L I M I T E D
Page 11 and 12: U N I T E D B A N K L I M I T E D A
Page 13 and 14: U N I T E D B A N K L I M I T E D d
Page 15 and 16: U N I T E D B A N K L I M I T E D T
Page 17 and 18: BOO EBRAHIM a: CO. CHARTERED ACCOUN
Page 19 and 20: U N I T E D B A N K L I M I T E D m
Page 21 and 22: BOO EBRAHIM ft CO. CHARTERED ACCOUN
Page 23 and 24: UNCONSOLIDATED STATEMENT OF FINANCI
Page 25 and 26: UNCONSOLIDATED STATEMENT OF COMPREH
Page 27 and 28: UNCONSOLIDATED STATEMENT OF CHANGES
Page 29 and 30: NOTES TO AND FORMING PART OF THE UN
Page 53 and 54:
NOTES TO AND FORMING PART OF THE UN
Page 55 and 56:
Page 57 and 58:
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Annexure 'A' as referred to in note
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Sr. No. 1 Commercial Reprsentation
Page 97 and 98:
Sr. No. Annexure 'B' as referred to
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Disposals of operating fixed assets
Page 113 and 114:
Disposals of operating fixed assets
show all

Financial Statements - United Bank Limited

Create successful ePaper yourself

Delete template?

Save as template?