Key Takeaways
- United Bank Limited (UBL) reported a 33% year-on-year increase in profit after tax.
- Deposits reached an all-time high of Rs. 6.1 trillion, up 43% year-on-year.
- Non-interest income surged by 123% year-on-year due to capital gains.
United Bank Limited (UBL) has reported a significant increase in its profit after tax (PAT), rising by 33% year-on-year (YoY) to Rs. 85.9 billion for the first half of 2026, according to ProPakistani. This growth is attributed primarily to an all-time high in deposits, which reached Rs. 6.1 trillion, marking a 43% YoY increase.
The second quarter of 2026 saw a PAT of Rs. 37.5 billion (EPS: Rs. 14.97), up 31% YoY but down 23% quarter-on-quarter (QoQ). The bank’s non-interest income witnessed a substantial rise, increasing by 123% YoY to Rs. 73.8 billion and also rising 87% YoY to Rs. 30.4 billion in the first half of 2026. This growth was largely driven by a capital gain of Rs. 12.8 billion recorded during the quarter.
Fee income increased by 5% YoY, while net interest income (NII) declined slightly by 1% YoY and 9% QoQ to Rs. 90.3 billion for the first half of 2026. However, NII rose 8% YoY to Rs. 189.7 billion during this period. The surge in deposits is a testament to UBL’s robust market position and customer trust.
Operating expenses increased by 35% YoY and 19% QoQ to Rs. 48.4 billion, driven by branch expansion and higher marketing costs aimed at deposit mobilization. Despite this, the cost-to-income ratio improved from 30% in the corresponding period last year to 34% for the first half of 2026.
The effective tax rate remained steady at 52%, indicating a consistent financial performance. UBL’s board has also approved several strategic initiatives, including an investment of Rs. 8 billion in establishing an agricultural advisory subsidiary and a commitment of Rs. 10 billion to establish a not-for-profit university with the Bestway Foundation, subject to regulatory approvals.
Additionally, UBL is set to make an equity investment of Rs. 22 billion in Khushhali Microfinance Bank, further expanding its financial services portfolio. These moves are expected to bolster UBL’s market presence and contribute to sustainable growth.
