AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: United Bank Ltd (UBL) has reported a notable increase in its net profit after tax (NPAT) for the first quarter of the calendar year 2025, amounting to PkR36.1 billion, a significant rise of 126% year-on-year and 39% quarter-on-quarter. The bank’s earnings per share (EPS) stood at PkR28.8 for the quarter. This performance has surpassed expectations, driven primarily by higher net interest income (NII) and a reversal in provisioning.
The bank’s NII reached PkR84.2 billion, reflecting a 200% year-on-year increase and a 30% rise from the previous quarter. This increase was attributed to a larger investment portfolio and a growth in advances. Meanwhile, non-interest income declined to PkR17.0 billion, a 20% decrease year-on-year, influenced by a significant drop in gains from the sale of securities. However, fee income rose markedly to PkR7.5 billion, showcasing a 26% year-on-year growth.
Provisioning reversal for the quarter was PkR1.6 billion, slightly down from PkR1.7 billion in the same period last year. Operating expenses were recorded at PkR26.6 billion, leading to a cost-to-income ratio of 26%, an improvement from the ratios of 40% and 39% in the first and fourth quarters of the previous year, respectively.
The effective tax rate for the quarter was 53%, compared to 48% in the first quarter of 2024 and 40% in the fourth quarter of 2024. Additionally, UBL announced an interim cash payout of PkR11 per share and a stock split, with shares being subdivided from a face value of PkR10 to PkR5, in a ratio of 2 shares for every 1 share held.
These results and strategic decisions highlight UBL’s robust financial performance and its plans for share restructuring, as the bank continues to navigate the evolving financial landscape. The stock remains under review.