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.
| Consolidated Condensed Interim Profit and Loss Account (Un-Audited) (Rupee '000') | |||
| Particulars | Mar-25 | Mar-24 | Change (%) |
| Mark-up / return / interest earned | 260,968,025 | 243,023,585 | 7.38% |
| Mark-up / return / interest expensed | 176,745,006 | 214,922,381 | -17.76% |
| Net mark-up / interest income | 84,223,019 | 28,101,204 | 199.71% |
| Non mark-up / interest income | |||
| Fee and commission income | 7,505,961 | 5,937,228 | 26.42% |
| Dividend income | 862,726 | 473,165 | 82.33% |
| Foreign exchange income | 3,669,940 | 2,718,981 | 34.97% |
| Loss from derivatives | (1,252,817) | (64,846) | 1831.99% |
| Gain on securities – net | 5,825,773 | 12,828,808 | -54.59% |
| Capital loss on derecognition of financial assets | — | (947,515) | — |
| Other income | 210,247 | 330,474 | -36.38% |
| Total non mark-up / interest income | 16,821,830 | 21,276,249 | -20.94% |
| Total income | 101,044,849 | 49,377,453 | 104.64% |
| Non mark-up / interest expenses | |||
| Operating expenses | 25,206,289 | 19,190,077 | 31.35% |
| Workers’ Welfare Fund | 1,491,619 | 676,423 | 120.52% |
| Other charges | 653 | 866 | -24.60% |
| Total non mark-up / interest expenses | 26,698,561 | 19,867,366 | 34.38% |
| Share of profit / (loss) of associates | 182,919 | (48,299) | -478.72% |
| Profit before credit loss allowance | 74,529,207 | 29,461,788 | 152.97% |
| Credit loss allowance and write-offs – net | (1,608,817) | (1,717,889) | -6.35% |
| Profit before taxation | 76,138,024 | 31,179,677 | 144.19% |
| Taxation | 40,026,398 | 15,040,768 | 166.12% |
| Profit after taxation | 36,111,626 | 16,138,909 | 123.76% |
| Attributable to: | |||
| Equity holders of the Bank | 36,106,776 | 15,977,409 | 125.99% |
| Non-controlling interest | 4,850 | 161,500 | -97.00% |
| Profit after tax (total) | 36,111,626 | 16,138,909 | 123.76% |
| Earnings per share – basic and diluted (Rupees) | 29.34 | 13.05 | 124.83% |
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Posted on: 2025-04-16T12:28:29+05:00
