UBL: Maintaining payout. Decline in topline masked by Securities Gains.

United Bank Ltd: Financial Results for the 1stQuarter Ended 31 March 2024

An Interim Cash Dividend for the quarter ended 31 March 2024 at Rs.11/‐ per share i.e. 110%.
EPS 1Q2024: 12.73 (last year same quarter EPS was Rs. 11.36)

Profit after tax at Rs 15.5 billion rose by 12% over the same quarter last year.

Markup income dropped close to 20% compared to last quarter.

UBL booked a gain in securities of over Rs. 12 billion which has boosted the income.

Profit before provision increased by 6%.

Foreign exchange income, decreased 40% YoY and 19% QoQ to Rs 2.7 billion in 1Q2024.

Fees & commission income, increased 22% YoY to Rs 5.27 billion in 1Q2024.

UBL reversed provisions of Rs 1.7 billion in 1Q2024, compared to a provision expense of Rs 2.7 billion in 1Q2023.

Operating expenses rose 22% in this quarter compared to same quarter last year. But compared to previous i.e., fourth quarter of Year 2023 there was no increase.

UBL effective tax rate was 48% in 1Q2024, compared to 42% in 1Q2023 and 53% in 4Q2023.

https://dps.psx.com.pk/download/document/229133.pdf

Brent Crude Logs Biggest Weekly Drop Since September on Weak Demand, Easing Tensions

Oil prices were under pressure this week. Brent crude oil futures fell 1.9% to $73 per barrel on Friday, registering the biggest weekly loss since early September, with prices dropping over 7%. The decline was attributed to weaker demand forecasts from OPEC and the International Energy Agency (IEA), slowing economic growth in China, and signs of easing geopolitical tensions in the Middle East. Both OPEC and the IEA revised down their demand forecasts for 2024 and 2025. China's refinery output declined for the sixth consecutive month, impacted by weak fuel demand and the growing adoption of electric vehicles (EVs). Meanwhile, U.S. crude oil production reached a new record last week. Although a drawdown in U.S. crude inventories and stronger-than-expected retail sales in September provided some support to oil prices, easing concerns about a broader conflict in the Middle East exerted additional downward pressure on the market.

A Snapshot of Exchange Traded Funds at PSX

PSX Strongly Rebounds

The Pakistan Stock Exchange (PSX) reacted positively to the conclusion of the IMF staff-level agreement and has now recovered a substantial part of the losses sustained on Monday. Today, out of the 1,139-point gain in the KSE-100 Index, around 800 points were contributed by UBL, OGDC, PPL, and Meezan Bank.

PakStox Outlook

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