UBL doubles profit to Rs65bn in 1HCY25

July 11, 2025 (MLN): United Bank Limited (PSX: UBL) reported a stellar 106% YoY jump in after-tax profit to Rs64.7 billion for the half year ended June 30, 2025, up from Rs31.4bn in the same period last year. Earnings per share (EPS) rose to Rs26.07, doubled from Rs12.58.

The surge was mainly driven by a robust 205% increase in net interest income, clocking in at Rs175.4bn, amid higher spreads, while total income soared to Rs208.5bn, up 113%.

The bank declared an interim cash dividend of Rs8 per share (160%), taking total payouts for 1HFY25 to Rs19 per share (270%), including the earlier Rs11 per share.

On the non-interest side, total income from fee, FX, dividends and securities came in at Rs33.0bn, down 19% compared to Rs40.6bn last year, primarily due to lower icapital gains, as last year included significant portfolio gains which did not recur this year.

However, strong momentum in fee and commission income (up 43%), foreign exchange income (up 20%) and a sizeable 330% surge in securities gains partly cushioned this decline.

Meanwhile, other income was slightly lower at Rs0.5bn vs Rs0.6bn, mainly due to fewer miscellaneous recoveries.

UBL maintained a conservative approach to risk by booking Rs3.9bn in credit loss allowance and write-offs, higher by 60% YoY versus Rs2.4bn last year, ensuring prudent coverage of its loan book amidst evolving macro challenges.

Additionally, the bank recorded tax expenses of Rs85.6bn, more than triple the Rs28.3bn paid in the same period last year, reflecting higher taxable profits.

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