One of the leading commercial banks of Pakistan, United Bank Limited, has failed to maintain its profitability growth which showed a decline of Rs. 2.3 billion in 2017 compared to 2016.
According to the financial disclosure made to stock exchange, UBL’s net profit declined to Rs. 25.4 billion in 2017 as against of Rs. 27.7 billion reported in 2016.
The bank witnessed a decline in its earnings from interest and non-interest revenues due to prevailing low interest rates regime coupled with low margins on government securities and depleting profits from stock’s shares.
During the year 2017, the bank faced a dramatic transformation of leadership which may have affected its profit growth amid market’s dynamics.
Wajahat S Hussain quit the bank as CEO and President following a financial scandal where he, along with 300 senior bankers, was stopped for travelling abroad. The central bank’s measure created a buzz on social media on the financial scam by the President that severely hit the reputation of the bank.
However, UBL denied any such incident claiming that its top banker and senior management were not stopped by authorities though it also did not stop Wajahat Hussain from quitting UBL.
In June 2017, UBL board of directors appointed Sima Kamil as President and CEO UBL.
The bank won laurels throughout the banking industry for such unique and daring move, of course, not seen in the history of Pakistan’s banking industry.