Islamabad, Feb 19: United Bank Limited (UBL) has reported a record-breaking consolidated profit after tax (PAT) of Rs. 75.78 billion for the calendar year 2024 (CY24), marking a 34% year-on-year (YoY) increase from Rs. 56 billion in CY23. This is the highest-ever annual profit for UBL and the second-highest in Pakistan’s banking sector for the year.
In line with its strong financial performance, the bank announced a cash dividend of Rs. 11 per share (110%), in addition to the interim cash dividend of Rs. 33 per share (330%) already disbursed.
UBL’s Net Interest Income (NII) surged by 17% YoY to Rs. 173.5 billion, driven by robust growth in interest earnings. The bank’s interest income jumped 103% YoY to Rs. 1.084 billion, while interest expenses surged 136% YoY, reflecting the high-interest rate environment.
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A significant contributor to UBL’s record profit was its Non-Interest Income, which soared by 132% YoY to Rs. 83.7 billion. This increase was primarily due to a massive Rs. 42.6 billion gain on the sale of securities, compared to just Rs. 532 million last year. Other income streams also showed mixed trends. Fee and commission income increased by 9% YoY to Rs. 21.5 billion, while foreign exchange income declined to Rs. 12.5 billion.
On the expense side, operating expenses (OPEX) rose by 39% YoY, reaching Rs. 97 billion, pushing total non-interest expenses to Rs. 100 billion.UBL’s effective tax rate increased to 40.4% in CY24, up from 36.3% in CY23.
With its highest-ever profit, strong balance sheet, and aggressive dividend payout, UBL continues to solidify its position as a leading player in Pakistan’s banking industry. Investors and analysts will now look at how the bank sustains this momentum in 2025 amid evolving economic conditions.
