United profit up by 26 percent


United Bank S.C registered 26 percent higher profit in the last fiscal year, while earnings per share for the year did not show growth compared with a year before.

United, one of the strongest private banks in the financial sector of the country, has earned 406.5 million birr profit before taxation in the 2011/12 fiscal year, which is a growth of 82 million birr, compared with the 2010/11 fiscal year.
The annual financial report of United indicated that the bank has secured 297.8 million birr net profit after taxation and it has paid 108 million birr for the reported year.
In the last fiscal year the bank was able to collect a total income of 831.6 million birr, exhibiting a 31 percent growth as compared with the preceding year’s figure of 630.6 million birr. The total deposit grew by 11.4 percent over the corresponding period’s figure of 6.1 billion birr and reached 6.8 billion birr as of June 30, 2012.
From the 10 million shares authorised capital, each with a value of 100 birr, the 5,809,429 shares or 508.9 million birr has been fully paid.
However, even though the bank has registered record profits in the last fiscal year, the earnings per share of 100 birr did not grow when compared with 2010/11 fiscal year. According to the bank’s audit report, the 2011/12 fiscal year’s earnings per share of 100 birr are 52.8 birr. In the 2010/11 fiscal year the earnings were 52.81 birr, which is a one cent increment compared with the last fiscal year of 2011/12.
According to the report, during the last fiscal year the number of shares has grown to 5,641,142 from 4,389,777 in 2010/11, due to the fact that the amount in earnings per share has registered almost similar profit in the last fiscal year. According to the principle, earnings per share are calculated by dividing the net profit for the year attributable to the shareholders.  
Loans and advances also grew by 24.7 percent, compared to figures from the same period last year, from 3.3 billion birr to 4.1 billion birr. From the all- sectors distribution of loans and advances, import accounted for 22.7 of the total loan portfolio of the bank, followed by domestic trade and services (DTS), manufacturing production and import with 21.6 percent, 17 percent and 16.7 percent shares respectively.
The report indicated that income gained from the international banking department, showed a jump of 18.3 percent or 80.6 million birr over last year’s performance and reached 520.7 million birr.
The total assets of the bank, as of June 30, 2012, reached 8.8 billion birr. It has shown an increment of 1.1 billion birr or a growth of 13.7 percent.
The total capital of the bank, which comprises of a paid-up capital, legal reserve, retained earnings and premiums on shares capital, stood at 1.1 billion birr, which showed an increase of 200.4 million birr or 22.2 percent compared with the balance registered as of June 30, 2011.
United’s paid-up capital has also grown to 580.9 million birr in the last fiscal year, up from 523.3 million birr a year ago. The bank has 63 branches including 15 new branches that opened last year. The bank has registered 831.6 million birr total profit in the financial year showing an increase of 201 million birr or 31.9 percent growth from the previous year.
Interest income accounted for the lion share at 62 percent of the total income, followed by commission, fees and charges (25 percent) and net gain from dealing in foreign currencies (12 percent).
The total operation expenses of the bank stood at 425.1 million birr at the end of 2011/12 fiscal year, which is a growth of 117 million birr.