AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: United Bank Limited (UBL) announced a significant increase in its third-quarter earnings for 2025, reporting a 93% year-on-year rise to Rs35.4 billion, with earnings per share (EPS) reaching Rs14.1. This performance aligns with market expectations and highlights the bank’s strategic growth initiatives.
The first nine months of 2025 have been particularly strong for UBL, with total earnings soaring by 104% year-on-year to Rs100 billion, translating to an EPS of Rs40.0. This growth trajectory is attributed to the bank’s focused expansion efforts, which include branch expansions and targeted marketing strategies aimed at increasing deposits.
Operating costs for UBL decreased by 9% quarter-on-quarter to Rs32 billion in the third quarter, despite a 36% year-on-year increase due to expansion-related expenditures. The bank’s total deposits grew by 69% year-on-year, reaching Rs4.8 trillion in September 2025.
Net interest income (NII) saw a modest quarter-on-quarter increase of 1% but surged 78% year-on-year, reaching Rs92 billion. This rise was fueled by an increase in current account deposits and higher yields on investments, particularly in open market operations.
However, non-interest income declined by 13% year-on-year and 12% quarter-on-quarter, largely due to a significant drop in gains on securities and financial assets. Despite this, UBL’s fee and commission income increased by 20% year-on-year, though it fell by 13% quarter-on-quarter.
The bank’s effective tax rate for the third quarter was 53%, down from 61% in the previous quarter. The previous quarter’s higher tax charge was attributed to adjustments for prior year taxes.
In the third quarter, UBL recorded a provision reversal of Rs0.8 billion, compared to Rs2.3 billion in the second quarter. The bank also declared a dividend of Rs8 per share, aligning with market expectations, bringing the total dividend per share for the first nine months of 2025 to Rs21.5.
Market analysts maintain a positive outlook on UBL, with a ‘BUY’ stance, as the bank’s stock is trading at a projected 2025 price-to-earnings (PE) ratio of 8.2x, coupled with a dividend yield of 8%.