Karachi, July 11, 2025 – United Bank Limited (UBL) has posted an exceptional profit growth of 110% for the first half (1H) of calendar year 2025, showcasing the bank’s strong performance despite rising expenses and higher tax outflows.
According to financial analysis conducted by Topline Securities, UBL declared consolidated earnings of Rs65 billion for 1H2025 (Diluted EPS: Rs25.8), a significant jump from the same period last year. The second quarter (2Q2025) profit came in at Rs29 billion (Diluted EPS: Rs11.4), representing a 93% year-on-year (YoY) increase, although a 21% decline quarter-on-quarter (QoQ).
The 2Q2025 results fell slightly short of industry expectations, mainly due to two factors: (1) a 76% YoY and 34% QoQ increase in non-interest expenses, and (2) a higher effective tax rate of 61% versus 53% in 1Q2025. Analysts attribute the rise in expenses to UBL’s aggressive branch expansion and marketing strategy aimed at accelerating deposit growth. This approach paid off, with the bank achieving a robust deposit growth of 32% YoY and 26% QoQ during the quarter.
Net Interest Income (NII) remained a key driver of profit for UBL, increasing to Rs91 billion—up 213% YoY and 8% QoQ. The strong performance was supported by a rise in current account deposits and better investment yields, particularly from Open Market Operations (OMO) that benefited from reduced borrowing costs and strategic deployment.
However, non-interest income took a hit, falling 16% YoY and 4% QoQ, largely due to a sharp 75% YoY and 60% QoQ decline in gains on securities. Despite this, UBL’s fee and commission income stood strong at Rs8.98 billion, up 61% YoY and 20% QoQ.
Another boost to profit came from a provision reversal of Rs2.3 billion in 2Q2025, compared to Rs0.6 billion in the same quarter last year.
UBL also declared an interim cash dividend of Rs8 per share, bringing the total dividend payout for 1H2025 to Rs13.5 per share. The bank’s consistent dividend policy reflects its confidence in continued profit generation and shareholder returns.