Bank’s earnings surge 33% as board approves major investments in agriculture, microfinance and higher education
KARACHI: United Bank Limited (UBL) reported a record profit after tax of Rs85.91 billion for the first half of calendar year 2026, marking a 33 percent year-on-year increase, while unveiling major strategic investments in agriculture, microfinance and higher education.
According to the consolidated financial statements submitted to the Pakistan Stock Exchange (PSX) on Wednesday, the bank’s profit after tax increased from Rs64.73 billion in the corresponding period of 2025 to Rs85.91 billion for the six months ended June 30, 2026.
The strong financial performance lifted earnings per share (EPS) to Rs34.30, compared with Rs26.07 in the same period last year, reflecting continued growth in profitability.
Quarterly profit records strong growth
For the quarter ended June 30, 2026, UBL posted a net profit of Rs37.48 billion, up nearly 31 percent from Rs28.62 billion reported in the corresponding quarter of 2025.
Quarterly EPS also improved to Rs14.97, compared with Rs11.43 a year earlier.
Income tax payment exceeds Rs92 billion
UBL remained one of the country’s largest corporate taxpayers, contributing Rs92.63 billion in income tax during the first half of 2026. The amount was higher than the Rs85.64 billion paid during the corresponding period of last year.
Board approves Rs8 interim dividend
The Board of Directors, in its meeting held on July 22, 2026, approved an interim cash dividend of Rs8 per share for the second quarter ended June 30, 2026.
The latest payout comes in addition to the Rs8 per share interim dividend already distributed for the first quarter, taking the total interim cash dividend for the first half of 2026 to Rs16 per share.
UBL to establish agriculture technology subsidiary
Subject to regulatory approvals, the board also approved the establishment of a private limited subsidiary with an investment of Rs8 billion, in which UBL will hold a majority stake.
The proposed company will focus on strengthening Pakistan’s agriculture sector by providing technology-enabled advisory services, research and digital solutions aimed at improving agricultural productivity, sustainability and farmers’ livelihoods.
Up to Rs22 billion investment in Khushhali Microfinance Bank
UBL further approved, subject to shareholder and regulatory approvals, an additional equity investment of up to Rs22 billion in Khushhali Microfinance Bank Limited (KMBL) through participation in its rights issue and acquisition of additional shares, including those arising from underwriting commitments.
The bank noted that KMBL had negative equity of Rs16.15 billion as of December 31, 2025, adding that the proposed investment would strengthen the microfinance bank’s capital base and support the stability of Pakistan’s financial system.
The transaction remains subject to approval by UBL shareholders under Section 199 of the Companies Act, 2017, along with all required regulatory and corporate approvals.
Rs10 billion commitment for higher education
In another strategic initiative, the board approved UBL’s participation in establishing a not-for-profit university under Section 42 of the Companies Act, 2017, or alternatively through a charitable trust.
The bank plans to contribute Rs10 billion over the next three to five years towards the project.
The proposed university will be established in collaboration with the Bestway Foundation, which will provide matching financial support equal to UBL’s contribution. The initiative is intended to promote quality higher education and strengthen Pakistan’s long-term human capital development, subject to the necessary approvals.
Focus on long-term growth
The record earnings, higher dividend payout and planned investments reflect UBL’s strategy of combining strong financial performance with long-term investments in key sectors of the economy. The proposed initiatives in agriculture, financial inclusion and education are expected to support sustainable economic development while creating new avenues for future growth.