UBL reports 34% surge in net profit, reaching Rs76bn in 2024

February 19, 2025 (MLN): United Bank Limited (PSX: UBL) has reported its financial results for the year ended December 31, 2024, reporting a significant 34% increase in net profit, reaching Rs76 billion compared to Rs56bn in 2023.

UBL has declared a final cash dividend of Rs11 per share (110%), in addition to the interim dividend of Rs33 per share (330%) already paid during the year.

The bank's earnings per share (EPS) surged to Rs61.39 from Rs45.05 in the previous year. In line with its robust financial performance,

The bank’s total income grew by 39.01% to Rs257.2bn in 2024 from Rs185bn in 2023, driven by a surge in mark-up/return/interest earned, which more than doubled to Rs1.1 trillion, compared to Rs535.2bn last year.

Net mark-up/interest income increased by 16.5% to Rs173.5bn, despite a 136% rise in mark-up/return/interest expenses.

UBL also demonstrated strong growth in its non-mark-up/interest income, which surged by 132% to Rs83.7bn, compared to Rs36.1bn in 2023.

This was largely supported by an extraordinary gain on securities, which skyrocketed to Rs42.6bn, marking an astonishing 7,894.4% increase from Rs532.8 million in the previous year.

Fee and commission income rose by 9% to Rs21.5bn, while dividend income saw a modest 7.9% growth to Rs1.74bn.

However, foreign exchange income saw a slight decline of 1.2% to Rs12.5bn, while other income decreased by 25.2% to Rs1.1bn.

The bank recorded a gain of Rs1.2bn on derivatives, a turnaround from a loss of Rs65.3mn in 2023.

The share of gain from associates stood at Rs895.2mn, reversing a loss of Rs989.5mn in the previous year.

On the expense side, UBL’s total non-mark-up/interest expenses rose by 38.4% to Rs100.3bn, primarily driven by a 38.5% increase in operating expenses to Rs97.1bn.

The Workers' Welfare Fund contribution grew by 45.7% to Rs3.1bn, while other charges dropped significantly by 68.7% to Rs75.2mn.

The bank’s profit before taxation from continuing operations increased by 31.15% to Rs145bn, despite a sharp 1,203.4% rise in credit loss allowance and provisions, which amounted to Rs12.8bn.

After accounting for taxation of Rs70.2bn, profit after tax from continuing operations stood at Rs74.8bn, up 32.53% from the previous year.