United Bank Limited (UBL), one of Pakistan’s leading commercial banks, has reported an exceptional surge in profitability, with consolidated profit-after-tax (PAT) reaching Rs36.11 billion for the quarter ending March 31, 2025. This marks a massive 124% increase from Rs16.14 billion reported in the same period last year.
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The financial results were announced through an official notice to the Pakistan Stock Exchange (PSX), highlighting a standout performance in the country’s banking sector.
UBL’s earnings per share (EPS) rose sharply to Rs29.34 in Q1 2025, compared to Rs13.05 in Q1 2024. According to brokerage firm Topline Securities, “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.”
The bank’s Board of Directors declared a final cash dividend of Rs11 per share (110%) for the first quarter of 2025, reflecting strong shareholder returns alongside its record-breaking earnings.
The impressive financial performance was primarily driven by a sharp rise in net interest income (NII), which grew from Rs28 billion in Q1 2024 to Rs84.22 billion in Q1 2025 — a remarkable year-on-year increase of nearly 200%. Quarter-on-quarter, NII also rose by 24%.
Topline Securities noted that the uptick was supported by increased current account deposits and higher yields on investments, particularly from Open Market Operation (OMO) borrowings, which benefited from a lower cost of borrowing and well-timed deployment.
UBL also recorded a provision reversal of Rs1.6 billion in Q1 2025, compared to a reversal of Rs1.7 billion in Q1 2024 and a significant provision expense of Rs14.2 billion in Q4 2024.
While non-interest income declined by 21% year-on-year and 38% quarter-on-quarter to Rs16.8 billion, this was largely due to a 55% drop in gain on securities to Rs5.8 billion. However, fees and commission income posted a robust increase, clocking in at Rs7.5 billion, up 26% YoY and 90% QoQ.
The bank’s effective tax rate stood at 53% for the quarter, contrary to market expectations of a lower rate, which were influenced by recent merger developments involving SILK Bank.
UBL’s latest performance cements its position as a major force in Pakistan’s financial landscape, setting a new industry benchmark for profitability in a single quarter.
