United Bank Limited doubles profit in 9MFY25

October 15, 2025 (MLN): United Bank Limited (PSX: UBL) reported a profit after tax of Rs100.1bn for the nine months ended September 30, 2025, more than doubling from Rs49.7bn in the corresponding period last year.

Earnings per share doubled to Rs40.19 compared to Rs20.06 in 9MFY24, reflecting the bank's robust financial performance.

The company declared an interim cash dividend of Rs8 per share (160%) for the quarter ended September 30, 2025. This is in addition to the interim dividend already paid at Rs13.5 per share (270%), bringing the total dividend for the nine-month period to Rs21.5 per share (430%).

Net mark-up/interest income surged 153.80% year-on-year to Rs267.4bn from Rs105.4bn, driven by higher interest earned of Rs861.3bn (up 4.28%) while interest expenses declined sharply by 17.59% to Rs593.8bn.

This significant improvement in net interest income shows effective asset-liability management and favorable interest rate positioning.

Total income increased substantially by 94.57% to Rs314.7bn from Rs161.7bn in 9MFY24, supported by both strong interest income and non-interest revenue streams.

Fee and commission income grew robustly by 38.01% to Rs24.3bn from Rs17.6bn, indicating strong customer activity and increased transaction volumes across banking channels.

Dividend income increased 45.50% to Rs1.7bn from Rs1.1bn.

Foreign exchange income jumped 30.50% to Rs12.9bn from Rs9.9bn, benefiting from higher foreign exchange trading volumes and favorable market conditions.

The bank recorded a loss from derivatives of Rs1.3bn compared to Rs41 million in the prior period.

Gain on securities - net declined significantly by 62.41% to Rs9bn from Rs24.1bn in 9MFY24, as the previous year included exceptional trading gains.

Other income decreased 19.74% to Rs693 million from Rs864 million last year.

Total non mark-up/interest income declined 16.12% to Rs47.3bn from Rs56.4bn, primarily due to lower securities gains.

Operating expenses increased 52.23% to Rs90.7bn from Rs59.6bn, showing business expansion, inflationary pressures, and investments in technology and branch network.

Workers' Welfare Fund contributions rose 96.40% to Rs4.4bn from Rs2.2bn.

Other charges increased 44.45% to Rs47.6 million from Rs33 million.

Total non mark-up/interest expenses rose 53.82% to Rs95.1bn from Rs61.9bn in the prior period.

Share of profit of associates increased 14.02% to Rs766.5m from Rs672.2m.

The bank reported a profit before credit loss allowance of Rs220.3bn, up 119.09% from Rs100.6bn in 9MFY24.

Credit loss allowance and write-offs - net increased significantly to Rs4.7bn (reversal) from Rs1.5bn (reversal) in the prior period, representing a 219.88% increase, showing proactive risk management and portfolio quality improvement.

Profit before taxation from continuing operations reached Rs225bn, up 120.54% from Rs102bn in 9MFY24.

Taxation surged 134.64% to Rs124.9bn from Rs53.2bn, in line with higher profitability.

Profit after taxation from continuing operations stood at Rs100.1bn, more than doubling from Rs48.8bn.

The bank recorded no discontinued operations in 9MFY25, compared to a gain of Rs938.6 million in the prior year.

United Bank Limited concluded 9MFY25 with a net profit of Rs100.1bn, delivering a net profit margin of 31.80% compared to 30.74% in 9MFY24.

The gross profit margin (net interest margin) improved to 31.06% from 12.76% in the prior period, demonstrating exceptional efficiency in core banking operations and superior balance sheet management.

The bank's strong performance was driven by robust net interest income growth, improved operational efficiency, and effective credit risk management, positioning UBL as one of the best-performing banks in Pakistan's banking sector for 9MFY25.

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