United Bank Limited’s third-quarter profit declines from Rs35.4 billion a year earlier as rising operating expenses weigh on earnings, despite stronger non-interest income and an unchanged Rs8 per-share dividend.

KARACHI: United Bank Limited (UBL) has reported a decline of more than 13 percent in consolidated profit after tax for the third quarter ended September 30, 2026, despite significant growth in non-interest income.

The bank posted a consolidated profit after tax of Rs30.7 billion, translating into earnings per share (EPS) of Rs12.2, compared with Rs35.4 billion and EPS of Rs14.1 in the same period last year.

According to research by Insight Securities, the result was broadly in line with expectations. However, net interest income fell short of estimates, offset by higher-than-anticipated non-funded income.

UBL’s net interest income increased by approximately 1 percent year-on-year and 3 percent quarter-on-quarter, supported by balance-sheet growth and an improving funding mix. Deposits expanded by around 36 percent year-on-year and 6 percent quarter-on-quarter.

Non-mark-up income surged 71 percent year-on-year, driven by 15 percent growth in fee income and gains on securities of Rs5.3 billion, compared with Rs900 million a year earlier. However, non-mark-up income declined approximately 20 percent quarter-on-quarter as securities gains fell from the preceding quarter’s level.

Non-mark-up expenses rose around 35 percent year-on-year and 12 percent quarter-on-quarter amid branch expansion and deposit mobilisation initiatives. Consequently, the cost-to-income ratio increased to 46 percent from approximately 40 percent a year earlier.

The bank recorded a provisioning reversal of Rs200 million during the quarter.

UBL maintained its dividend at Rs8 per share, taking its cumulative dividend for the first nine months of 2026 to Rs24 per share. Its borrowings also declined to approximately Rs5.4 trillion in September from Rs7.9 trillion in June.