United Bank Limited (UBL) (PSX: UBL) reported a consolidated profit after tax (PAT) of Rs. 85.9 billion for the first half of 2026 (H1 2026), reflecting a 33% year-on-year (YoY) increase, supported by record deposit growth and strong non-interest income.
The bank posted earnings per share (EPS) of Rs. 34.30 during the six-month period.
For the second quarter of 2026 (Q2 2026), UBL recorded a PAT of Rs. 37.5 billion, translating into an EPS of Rs. 14.97. Quarterly profit increased 31% YoY, although it declined 23% compared to the previous quarter (QoQ).
UBL’s non-interest income surged 123% YoY to Rs. 73.8 billion during H1 2026, highlighting the bank’s diversified revenue streams. In Q2 alone, non-interest income rose 87% YoY to Rs. 30.4 billion.
According to Topline Securities, the strong performance was primarily driven by a Rs. 12.8 billion capital gain recognized during the quarter. Fee income also recorded a 5% YoY increase during the first half of the year.
Meanwhile, net interest income (NII) for Q2 2026 declined 1% YoY and 9% QoQ to Rs. 90.3 billion, largely due to the realization of gains on the bank’s investment portfolio. Despite the quarterly decline, H1 2026 NII increased 8% YoY to Rs. 189.7 billion.
UBL’s balance sheet continued to strengthen, with customer deposits rising 43% YoY and 13% QoQ to an all-time high of Rs. 6.1 trillion, underscoring strong customer confidence and successful deposit mobilization efforts.
Operating expenses increased 35% YoY and 19% QoQ to Rs. 48.4 billion in Q2 2026, driven by branch expansion and higher marketing expenditures aimed at accelerating deposit growth.
The bank’s cost-to-income ratio stood at 40% in Q2 2026, compared to 33% in the same period last year. However, for the first half of the year, the ratio improved to 34%, compared with 30% in H1 2025.
UBL’s effective tax rate remained unchanged at 52% during the second quarter of 2026.
The bank’s strong earnings performance, record deposit base, and robust growth in non-interest income reflect its continued focus on strengthening core banking operations while capitalizing on investment opportunities amid evolving market conditions.
