AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: United Bank Limited (UBL) recently held a corporate briefing, revealing significant financial growth and strategic initiatives. The bank announced a remarkable 103% increase in profit after tax, reaching Rs28.6 billion, and declared an EPS of Rs11.3 for the last quarter. UBL also disclosed a dividend payment of Rs8.0 per share, contributing to a total payout of Rs13.5 per share for the first half of the calendar year 2025.
UBL reported a 98% growth in total deposits and a 114% rise in current deposits over the past two years, marking the highest growth in the industry. The bank’s current deposits market share stands at 13.8%, with an overall industry deposit share of 11.5%. UBL plans to focus on increasing low-cost deposits in the future.
The briefing highlighted a 17% year-on-year decline in non-funded income, despite a strong 68% increase in fee income. UBL’s trade market share is at 8.6%, which the management aims to improve.
A significant development is UBL’s acquisition of SILK Bank, including its 105 branches. Future branch expansion will depend on opportunities for deposit growth.
Since the last eight quarters, UBL has returned Rs115 billion to shareholders through dividends, ranking it as the top company in the Pakistan Stock Exchange (PSX) during this period.
UBL’s investment portfolio is predominantly in long-term floating-rate instruments, with 59% in 10-year floating-rate Pakistan Investment Bonds (PIBs). The bank’s strategy is focused on 12-month T-Bills and PIBs, showing a conservative approach with minimal stock market exposure.
The bank has converted all branches in Balochistan and Khyber Pakhtunkhwa to Islamic banking. However, significant growth in this segment is expected to take time.
Looking ahead, UBL management is eyeing expansion in the UAE market, considering it more favorable than Bahrain and Qatar for growth opportunities.