The United Bank Limited (UBL) announced 2012 unconsolidated EPS of Rs14.7 compared to EPS of Rs12.7 last year, up by 16%. The bank also announced final cash dividend of Rs3.5 per share, taking the total payout to Rs8.5 per share for the year, said the analysts at Topline Research Monday. Though the net interest income (NII) declined by 2% to Rs38.5.2bn, 35% jump in non-interest income to Rs17.1bn and lower provisioning (down 43%) to Rs4.1bn mainly contributed to the earnings growth, they said. Despite rising deposit, NII remained flat due to lower spreads on account of 1) decline in interest rates and 2) increase in minimum deposit rates at 6%. On the other hand, the analysts said, better dividend income related to treasury/trading led overall growth in non–interest income. Moreover, controlled lending along with improved paying capacity of borrowers after decline in interest rates led overall provisioning to decline from Rs6.2bn to Rs3.2bn. In 4Q212, UBL posted EPS of Rs3.23, down 17%QoQ due to declining spreads.
