KARACHI, April 16, 2026 — United Bank Limited (UBL) said on Wednesday that its exposure to the Gulf Cooperation Council (GCC) region remains limited and well-secured, even as geopolitical tensions in the Middle East continue to create uncertainty in global financial markets.
In a briefing to analysts on its CY25 performance and outlook, UBL management said GCC-linked assets account for roughly 12% of the bank’s income base. The bank stressed that this exposure is largely backed by sovereign-linked counterparties, particularly in the United Arab Emirates, and is concentrated in high-quality, liquid instruments.
The bank noted that its GCC advances portfolio is primarily focused on low-risk segments, including government entities and financial institutions. Exposure to real estate, while present, is considered more resilient compared to previous cycles due to lower leverage levels and stronger equity buffers among developers.
UBL senior management said the bank continues to prioritise profitability over aggressive balance-sheet expansion. Deposits have grown at a four-year compound annual growth rate of 39%, reaching Rs5.3 trillion in the first quarter of CY26. Current accounts alone posted a 40% CAGR over the same period, rising to Rs2.1 trillion.
Management said strong current account growth provides a natural hedge for the bank’s fixed Pakistan Investment Bonds (PIBs) portfolio, supporting liquidity stability amid fluctuating interest rate conditions.
On the investment side, UBL holds around Rs5.8 trillion in longer-tenor floating-rate instruments with spreads above 100 basis points and a weighted average maturity of 8.5 years. Shorter-tenor floating assets of about Rs1 trillion carry lower spreads but shorter duration risk.
The bank said its floating-rate portfolio is largely insulated from interest rate volatility, with an average reset period of under three months. Most of these positions were built during periods of higher spreads and are expected to be held to maturity.
UBL reported an unrealised loss of Rs2.9 billion on fixed PIBs as of April 14, 2026. Management estimated that a 100-basis-point rise in interest rates would impact equity by around Rs21 billion; however, unrealised gains of approximately Rs47 billion on floating instruments are expected to offset potential losses.
The bank’s capital adequacy ratio stands at 17.6%, well above the regulatory requirement of 13%, providing a strong buffer against market shocks. UBL also noted it holds a 20% share in remittance flows and a 9% share in trade finance volumes.
Management said it does not pursue branch expansion targets, instead focusing on high-return locations. The bank is currently trading at forward price-to-book multiples of 2.1x for CY26 and 1.9x for CY27, according to analyst estimates.