Karachi, April 16, 2025 – United Bank Limited (UBL) has reported its highest-ever quarterly profit for the period ended March 31, 2025, marking a major milestone in the bank’s financial history.
According to a report issued by Topline Securities Limited, UBL posted a remarkable after-tax profit of Rs36 billion for the first quarter of 2025, translating into an Earnings per Share (EPS) of Rs28.9. This reflects a massive increase of 126% year-on-year (YoY) and 39% quarter-on-quarter (QoQ).
This record-breaking profit by UBL has surpassed market expectations, with analysts initially forecasting earnings between Rs12.8 to Rs22.9 per share. The result not only positions UBL at the top among its peers but also sets a new industry benchmark for quarterly profitability by any bank in Pakistan.
The substantial rise in profit was primarily fueled by a significant boost in Net Interest Income (NII), which climbed to Rs84 billion in 1Q2025. This marks an increase of 24% QoQ and an impressive 200% YoY. Analysts attribute this growth to increased current account deposits and improved yields on investments, especially through Open Market Operation (OMO) borrowings. The bank’s efficient asset deployment strategy and favorable borrowing costs played a critical role in this outcome.
Another contributor to UBL’s robust profit figures was a provision reversal of Rs1.6 billion during the quarter, compared to a reversal of Rs1.7 billion in the same period last year and a provision expense of Rs14.2 billion in the previous quarter.
While Non-Interest Income declined 21% YoY to Rs16.8 billion—largely due to a 55% drop in gains on securities—UBL’s fee and commission income rose sharply by 26% YoY and 90% QoQ, reaching Rs7.5 billion.
Despite expectations of a lower tax rate due to merger activity, UBL reported an effective tax rate of 53%. The bank also declared a dividend of Rs11 per share, aligning with investor expectations, along with a stock split offering two shares for every one held.
This exceptional profit performance underscores UBL’s strategic resilience and solidifies its reputation as one of Pakistan’s leading financial institutions.