KARACHI: United Bank Limited (PSX: UBL) has declared an interim cash dividend of Rs8 per share, after posting a 106% year-on-year increase in its after-tax profit for the half-year ended June 30, 2025. The bank’s profit soared to Rs64.7 billion, up from Rs31.4 billion in the same period last year, driven by a significant rise in net interest income amid favourable interest rate spreads.
UBL’s earnings per share (EPS) jumped to Rs26.07, compared to Rs12.58 during 1HFY24, reflecting robust underlying profitability.
According to a stock filing on Saturday, this interim dividend takes the bank’s total payout for the first half of FY25 to Rs19 per share (270%), including an earlier dividend of Rs11 per share.
The bank’s net interest income surged by an impressive 205%, reaching Rs175.4 billion, compared to Rs57.3 billion last year. Total income for the period rose 113% to Rs208.5 billion, up from Rs97.9 billion. The strong growth was primarily attributed to improved yields and a favourable interest rate environment.
On the non-markup side, income declined 19% year-on-year to Rs33 billion, down from Rs40.6 billion, mainly due to lower capital gains as the previous year included sizeable one-off portfolio gains. However, core banking activity remained resilient: fee and commission income rose 43%, foreign exchange income grew 20%, and gains on securities rebounded with a 330% increase.
Operating expenses climbed 53% to Rs59.7 billion, reflecting inflationary pressures and growth-driven costs but remained well covered by strong income growth. Profit before credit loss allowance rose 153% to Rs146.5 billion, up from Rs57.8 billion.
UBL booked Rs3.9 billion in credit loss provisions and write-offs—up 60% year-on-year—citing a conservative approach amid macroeconomic uncertainty. Tax expenses more than tripled to Rs85.6 billion, in line with higher pre-tax earnings and recent tax adjustments.
Despite a slight dip in miscellaneous recoveries, which brought other income down to Rs0.5 billion from Rs0.6 billion, the bank’s overall profitability remained robust. Pre-tax earnings increased 149% to Rs150.4 billion.
UBL’s performance so far in 2025 places it among the country’s top-performing financial institutions, benefiting from a high-interest rate environment and prudent risk management.
