Karachi – United Bank Limited (UBL), one of Pakistan’s largest commercial banks, has announced record-breaking consolidated earnings of Rs75.78 billion for the year ending December 31, 2024, marking a significant 34% increase from its profit-after-tax of Rs56.47 billion in 2023.
The profit includes Rs74.84 billion from continued operations and Rs938.61 million from discontinued operations during 2024. According to a notice sent to the Pakistan Stock Exchange (PSX) on Wednesday, the bank’s earnings per share (EPS) surged to Rs61.39 in 2024, compared to Rs45.05 in the previous year.
Dividend Announcement
UBL’s Board of Directors has announced a final cash dividend of Rs11 per share (110%) for the year ending December 31, 2024. This is in addition to the interim dividend of Rs33 per share (330%) already paid earlier.
Strong Financial Performance in 2QCY24
UBL’s stellar performance was driven by a surge in net interest income and substantial gains on securities. The bank posted a profit of Rs15.3 billion in the second quarter of the calendar year 2024 (2QCY24).
During the year, UBL’s mark-up/return earned skyrocketed to Rs1.084 trillion in 2024, up by a massive 102% from Rs535.21 billion in 2023. Consequently, net mark-up/return earned rose to Rs173.55 billion, reflecting a 16% increase from Rs148.98 billion in 2023. However, markup expenses also surged by 136% year-on-year (YoY) to Rs911.09 billion.
Non-Interest Income Sees a Remarkable Jump
UBL’s fee and commission income reached Rs21.5 billion in 2024, up 9% from Rs19.8 billion in 2023. A key contributor to the bank’s exceptional performance was massive gains on securities, totaling Rs42.59 billion, a remarkable increase compared to a modest Rs532.7 million in 2023 – an extraordinary 79x surge.
As a result, the bank’s non-interest income soared by 132% YoY to Rs83.7 billion, significantly boosting total income, which stood at Rs257.24 billion in 2024, up from Rs185.04 billion in 2023.
Operating Expenses and Profitability
UBL’s operating expenses increased by 39% to Rs97.1 billion in 2024, compared to Rs70.1 billion in 2023. Despite higher expenses, the bank’s profit-before-tax (PBT) grew by 31%, reaching Rs145.04 billion in 2024, up from Rs110.6 billion in 2023.
UBL’s robust financial performance highlights its strong position in Pakistan’s banking sector, driven by strategic investments, effective risk management, and a diversified revenue base.
