UBL’s profits soar as the new year unfolds

April 16, 2025 (MLN): United Bank Limited (PSX: UBL) earned Rs36.11 billion [EPS: 29.34] in the first quarter of 2025 (Q1 CY2025), marking a significant 123.76% increase from the profit of Rs16.14bn [EPS: 13.05] reported in the same quarter last year.

The bank has declared an interim cash dividend of Rs11 per share, equivalent to 110%.

This performance was driven by a sharp surge in net mark-up/interest income, which nearly tripled (up 199.71% YoY) to Rs84.22bn, as interest income rose by 7.38% while interest expense dropped by 17.76%.

In contrast, total non-mark-up income fell by 20.94% to Rs16.82bn, largely due to a 54.59% decline in gains on securities and a 36.38% dip in other income.

However, dividend income and foreign exchange earnings showed notable growth, rising 82.33% and 34.97% respectively.

Operating expenses rose 31.35% YoY to Rs25.21bn, and Workers’ Welfare Fund contribution more than doubled to Rs1.49bn, pushing total non-mark-up expenses up by 34.38%.

Despite this, the bank's bottom line was further supported by a turnaround in the share of profit from associates, which came in at Rs182.9 million compared to a loss in the same quarter last year.

Profit before taxation surged by 144.19% to Rs76.14bn, even after accounting for credit loss allowance and write-offs of Rs1.6bn.

UBL paid Rs40.03bn in taxes during the quarter, and net profit after taxation stood at Rs36.11bn.