UIB Posts Net Income of 33,271 Mtnd in First Half of 2024
The UIB has closed its first half of 2024 with a net income of 33,271 Mtnd, a rare trend for the credit institution, compared to 57,785 Mtnd during the same period in 2023.
There are no issues on the activity side, as the Net Banking Product (PNB) reached 267,000 Mtnd, up 4.3% year-over-year. All sources of operating income have improved, particularly interest and assimilated revenues (+7.9% to 335,095 Mtnd). The UIB has strengthened its deposits, which reached 6,576,496 Mtnd, with a customer loan portfolio of 6,509,056 Mtnd as of June 30, 2024.
The bank's risk cost increased by 17.2% compared to the first half of 2023, to 33,702 Mtnd. However, the impact on operating income was limited, with an EBIT of 98,349 Mtnd, down 1.2% year-over-year.
The factor that strongly affected profits is the extraordinary items of 20,752 Mtnd. This amount corresponds to the payment made by the bank as part of the agreement with the tax administration, following the in-depth tax audit covering the period 2019-2022.
The UIB has thus closed this fiscal chapter. It now remains to settle the CNSS file, with liquidation statements for a total amount of 5,334 Mtnd. The accounts already include a provision for risks of 2,275 Mtnd.
Finally, regarding the decision of the Competition Council concerning the processing of interest rates during the Covid period, it has not been subject to provisional execution. The UIB's fine is 9,009 Mtnd, and a suspensive appeal is ongoing.
On the market, the stock lost 4.68% during yesterday's trading, but with a low volume of 2,536 shares. The majority of investors understand that settling thorny files at a lower cost is not a bad deal. For the UIB, the most important and long-awaited information by the market remains the progress of its planned divestment file. This is the key driver of the market price, regardless of its operational performance.
