United Bank Limited (PSX: UBL) reported a profit after tax (PAT) of Rs48.42 billion for the quarter ended March 31, 2026, showing a 34.09% increase compared to Rs36.11 billion in Q1 2025. Earnings per share (EPS) rose to Rs19.33 from Rs14.67 in the same period last year. The board declared an interim cash dividend of Rs8 per share (160%) for the first quarter.
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The bank’s mark-up/return/interest earned rose 23.97% year-on-year to Rs323.53 billion from Rs260.97 billion, reflecting higher asset volumes during the period. However, mark-up/return/interest expensed climbed at a steeper pace of 26.80% to Rs224.11 billion, driven by increased funding costs. As a result, net mark-up/interest income (gross profit) increased 18.05% to Rs99.42 billion from Rs84.22 billion.
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Profit After Tax | Rs48.42bn | Rs36.11bn | +34.09% |
| EPS | Rs19.33 | Rs14.67 | +31.77% |
| Interim Dividend | Rs8/share (160%) | – | – |
| Net Mark-up Income | Rs99.42bn | Rs84.22bn | +18.05% |
| Total Income | Rs142.81bn | Rs101.04bn | +41.34% |
Non-Markup Income Surge
Total non-mark-up/interest income surged 157.94% year-on-year to Rs43.39 billion from Rs16.82 billion. Within this, fee and commission income grew 19.07% to Rs8.94 billion, while foreign exchange income rose 13.99% to Rs4.18 billion. Most notably, gain on securities net soared 422.24% to Rs30.42 billion, providing a significant boost to non-markup earnings.
| Non-Markup Income Component | Q1 2026 | Change |
|---|---|---|
| Gain on Securities (net) | Rs30.42bn | +422.24% |
| Fee and Commission Income | Rs8.94bn | +19.07% |
| Foreign Exchange Income | Rs4.18bn | +13.99% |
| Loss from Derivatives | Rs885.1m | -29.35% (narrowed) |
Expense Pressures
On the expense side, total non-mark-up/interest expenses rose sharply by 52.30% to Rs40.66 billion from Rs26.70 billion. Operating expenses surged 53.31% to Rs38.64 billion, reflecting inflationary pressures and business expansion costs. Workers’ Welfare Fund expense increased 34.71% to Rs2.01 billion.
Credit Loss Allowance
The bank recorded a net reversal of credit loss allowance and write-offs of Rs455.1 million, compared to a larger reversal of Rs1.61 billion in Q1 2025, indicating a moderation in recoveries and provisioning benefits year-on-year.
Bottom Line
Profit before taxation increased 32.13% to Rs100.60 billion from Rs76.14 billion. Taxation expense rose 30.37% to Rs52.18 billion, partially absorbing the pre-tax earnings growth. The net profit margin stood at 33.90% in Q1 2026, slightly lower than 35.74% in Q1 2025, as expense growth—particularly in operating costs and a reduced share of associate profits—tempered the bottom-line expansion relative to total income growth.
About United Bank Limited
United Bank Limited (PSX: UBL) is one of Pakistan’s largest commercial banks, offering a comprehensive range of banking products and services to retail, corporate, and institutional clients. With a nationwide network of branches and international presence, UBL plays a vital role in Pakistan’s financial sector.
