United Bank Limited (UBL), one of Pakistan’s largest commercial banks, posted consolidated Rs36.11 billion profit-after-tax (PAT) during the quarter ending March 31, 2025, up massive 124% from the PAT of Rs16.14 billion in the same period of 2024.
The bank announced the results in a notice to the Pakistan Stock Exchange (PSX).
Earnings per share (EPS) of UBL clocked in at Rs29.34 in Q1 of 2025, an increase from Rs13.05 in Q1 of 2024.
“UBL’s 1Q2025 earnings exceeded industry expectations, which ranged between Rs12.8–22.9 per share, and were also the highest ever recorded for any bank in a single quarter,” brokerage house Topline Securities said in a report.
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UBL’s Board of Directors also announced a final cash dividend for the quarter ending March 31, 2025 at Rs.11/- per share i.e.110%.
The significant jump in earnings comes in line with a massive increase in the bank’s net interest income (NII).
During the period, UBL’s net mark-up/interest income increased from Rs28 billion in 1Q2024 to Rs84.22 billion in 1Q2025, a massive increase of around 200%.
NII for 1Q2025 settled at Rs84 billion up 24% quarter-on-quarter (QoQ) and 200% year-on-year (YoY).
“As per our channel checks, this uptick was supported by an increase in current account deposits as well as higher yields on investments, particularly OMO borrowings, benefiting from a lower cost of borrowing and well-timed deployment,” Topline said.
UBL recorded a provision reversal of Rs1.6 billion in 1Q2025, compared to reversal of Rs1.7 billion in 1Q2024 and provision expense of Rs14.2 billion in 4Q2024.
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Meanwhile, non interest income of the bank declined by 21% YoY and 38% QoQ to Rs16.8 billion in 1Q2025, primarily driven by fall in gain on securities by 55% YoY and 69% QoQ to 5.8 billion in 1Q2025.
However UBL’s fees and commission income clocked in at Rs7.5 billion, up 26% YoY and 90% QoQ.
Effective tax rate clocked in at 53% in 1Q2025, “contrary to industry expectations, as the industry was expecting a lower effective tax rate due to mergers with SILK Bank,” the brokerage house report stated.
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