Islamabad, Apr 17, 2025: United Bank Limited (UBL), one of the leading commercial banks in Pakistan, reported a remarkable Rs36.11 billion in profit after tax (PAT) for the quarter ending March 31, 2025, marking a 124% increase from Rs16.14 billion during the same period in 2024.
The financial results were disclosed in a notice to the Pakistan Stock Exchange (PSX).
For the first quarter of 2025, UBL’s earnings per share (EPS) reached Rs29.34, a significant jump from Rs13.05 in the same period of 2024.
“UBL’s Q1 2025 performance surpassed industry expectations, with EPS forecasts ranging from Rs12.8 to Rs22.9. This represents the highest quarterly earnings ever recorded by any bank,” said Topline Securities, a brokerage firm, in its report.
Additionally, UBL’s Board of Directors declared a final cash dividend of Rs.11 per share (110%) for the quarter ending March 31, 2025.
The substantial growth in profits aligns with a significant rise in the bank’s net interest income (NII).
In the first quarter of 2025, UBL’s net markup/interest income surged from Rs28 billion in Q1 2024 to Rs84.22 billion, a staggering 200% increase.
The NII for Q1 2025 settled at Rs84 billion, reflecting a 24% quarter-on-quarter (QoQ) and 200% year-on-year (YoY) growth.
“As per our analysis, this growth was driven by an increase in current account deposits and improved yields on investments, particularly OMO borrowings, which benefited from a reduced borrowing cost and timely deployment,” Topline Securities noted.
UBL also reported a provision reversal of Rs1.6 billion in Q1 2025, compared to a Rs1.7 billion reversal in Q1 2024 and a provision expense of Rs14.2 billion in Q4 2024.
However, non-interest income saw a decline of 21% YoY and 38% QoQ, totaling Rs16.8 billion for Q1 2025.
The decrease mainly results from a 55% YoY and 69% QoQ reduction in gains from securities, totaling Rs5.8 billion in Q1 2025.
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On the positive side, UBL’s fees and commission income rose to Rs7.5 billion, reflecting a 26% YoY and 90% QoQ increase.
The brokerage’s report stated that the effective tax rate for Q1 2025 was 53%, higher than expected, as the industry anticipated a lower tax rate due to mergers with SILK Bank.
