UBL Reports 106% Profit Jump to Rs64.7B in 2025

Karachi, July 13, 2025, 02:29 PM PKT — United Bank Limited (UBL) has delivered a stunning 106% year-on-year profit surge to Rs64.7 billion for the half-year ended June 30, 2025, up from Rs31.4 billion last year, fueled by a more than threefold net interest income leap amid elevated interest rate spreads, per a Saturday stock filing. Earnings per share (EPS) soared to Rs26.07 from Rs12.58, showcasing robust profitability, with net interest income skyrocketing 205% to Rs175.4 billion from Rs57.3 billion, driven by improved yields. Total income jumped 113% to Rs208.5 billion from Rs97.9 billion.

UBL declared an interim cash dividend of Rs8 per share, boosting the first-half FY25 payout to Rs19 per share (270%), including a prior Rs11 per share. Non-markup income dipped 19% to Rs33 billion from Rs40.6 billion due to lower capital gains, though fee and commission income rose 43%, foreign exchange income increased 20%, and securities gains surged 330%, offsetting core banking strength. Operating expenses climbed 53% to Rs59.7 billion amid inflation and growth costs, but profit before credit loss allowance soared 153% to Rs146.5 billion.

Credit loss provisions rose 60% to Rs3.9 billion, reflecting a cautious stance amid macroeconomic uncertainty, while tax expenses tripled to Rs85.6 billion from Rs28.3 billion, aligning with higher pre-tax earnings of Rs150.4 billion (+149%). Despite a slight drop in miscellaneous recoveries to Rs0.5 billion from Rs0.6 billion, UBL stands as a top performer in 2025’s high-interest, cautious credit landscape. Web context notes banking profitability trends (e.g., 15% sector growth), while posts found on X show enthusiasm—some hail dividends, others question sustainability. Critically, the narrative of “strong performance” may mask risk exposure—web data suggests provisioning pressures, and X sentiment hints at distrust in long-term stability, pointing to potential volatility.