Regulatory penalties rise sharply despite 34% growth in after-tax profit during the first half of 2026
KARACHI: United Bank Limited (UBL) paid Rs15.17 million in penalties during the first half (January-June) of calendar year 2026, marking a significant increase from Rs2.49 million paid during the corresponding period of the previous year.
According to the detailed financial report submitted to the Pakistan Stock Exchange (PSX) on Friday, UBL paid Rs14.39 million in penalties to the State Bank of Pakistan (SBP) during the six months ended June 30, 2026, compared with Rs2.46 million in the same period of 2025.
Meanwhile, penalties imposed by other regulatory bodies on the bank’s overseas branches amounted to Rs782,000 during 1HCY26, up from Rs37,000 in the corresponding period of the previous year.
The total penalties paid by UBL during the period therefore increased more than sixfold year on year.
UBL profit rises 34%
Despite the higher regulatory penalties, UBL reported strong financial performance during the period.
According to the directors’ report, on a standalone basis, the bank recorded profit before tax (PBT) of Rs177.4 billion for the six months ended June 30, 2026, showing year-on-year growth of 19%.
Profit after tax (PAT) stood at Rs85.0 billion in H1CY26, compared with Rs63.8 billion in H1CY25, representing an increase of around 33%.
Earnings per share (EPS) increased to Rs33.93 from Rs25.69 in the corresponding period last year.
On a consolidated basis, UBL reported PAT of Rs85.9 billion for H1CY26, compared with Rs64.7 billion a year earlier. Consolidated EPS rose to Rs34.30 from Rs26.07.
UBL declares Rs8 interim dividend
The bank’s board of directors declared an interim cash dividend of Rs8 per share at its meeting held in Islamabad on July 22, 2026, alongside the financial results for the half year ended June 30, 2026.
UBL’s gross revenues increased 26% year on year to Rs260.8 billion in H1CY26, while net mark-up income rose to Rs189.7 billion.
Non-mark-up income reached Rs71.1 billion, supported by broad-based growth across revenue streams.
Fees and commission income stood at Rs15.1 billion, driven primarily by card-related fees, along with contributions from trade income, corporate services and investment banking fees.
The bank also maintained its strong position in the domestic home remittances market during the period.
Capital gains boost income
Significant capital gains of Rs42.4 billion were recorded in H1CY26, with the bank benefiting from opportunities arising from the conflict in the Middle East.
However, operating expenses increased by 44% year on year to Rs84.1 billion during the first half of 2026.
Staff costs rose 40% to Rs32.2 billion, while property-related expenses increased 51% to Rs10.9 billion. Information technology expenses also climbed 40% year on year to Rs6.8 billion.
UBL recorded a net provision reversal of Rs4.2 billion during H1CY26, compared with a net provision reversal of Rs3.9 billion in the corresponding period of 2025, reflecting continued recovery momentum.
The financial results show that UBL maintained strong earnings growth despite a substantial rise in operating expenses and regulatory penalties during the first half of 2026.