United Bank Limited has kicked off the 2026 fiscal year with a powerful financial performance, reporting a profit after tax of Rs48.42 billion for the first quarter ended March 31, 2026. This represents a robust 34.09% increase compared to the Rs36.11 billion earned during the same period in 2025. This growth in the bottom line has directly benefited shareholders, with earnings per share rising to Rs19.33 from Rs14.67 last year. Reflecting the bank’s strong liquidity and capital position, the board of directors has announced a substantial interim cash dividend of Rs8 per share, or 160%, for the quarter.
The bank’s core earnings remained a primary driver of success, as interest-earned income rose by nearly 24% year-on-year to reach Rs323.53 billion. This increase was largely attributed to higher asset volumes throughout the quarter. However, the bank also faced rising funding costs, with interest expenses climbing by 26.80% to Rs224.11 billion. Despite these higher costs, UBL managed to grow its net interest income by 18.05%, totaling Rs99.42 billion. While the gross profit margin narrowed slightly to 30.73% due to the rapid rise in funding expenses outpacing asset yields, the sheer volume of business ensured a healthy surplus.
The most significant boost to the quarterly results came from non-markup income, which surged by an impressive 157.94% to reach Rs43.39 billion. A major contributor to this jump was the net gain on securities, which soared by a staggering 422.24% to Rs30.42 billion. Additionally, fee and commission income grew by over 19%, and foreign exchange income saw a 14% rise. These gains were partially offset by a sharp decline in dividend income and a share of loss from associates amounting to Rs2.01 billion, a reversal from the profit recorded in the previous year. Consequently, the bank’s total income reached Rs142.81 billion, marking a 41.34% year-on-year increase.
On the operational side, UBL faced significant inflationary pressures and costs associated with business expansion. Total non-markup expenses rose by 52.30% to Rs40.66 billion, with operating expenses specifically surging by 53.31%. Despite these rising costs, the bank’s profit before credit loss allowance grew by over 34% to cross the Rs100 billion mark. The bank also benefited from a net reversal of credit loss allowance and write-offs totaling Rs455.1 million, though this was smaller than the reversal seen in the first quarter of 2025.
After accounting for a taxation expense of Rs52.18 billion, which rose by 30% alongside earnings, UBL maintained a healthy net profit margin of 33.90%. While this is slightly lower than the 35.74% margin recorded in Q1 2025—due to the rapid growth in operating expenses and the loss from associates—the overall growth trajectory remains exceptionally strong. These results underscore UBL’s ability to navigate a high-interest-rate environment and inflationary landscape while delivering record-breaking value to its investors through both capital gains and consistent dividend payouts. As the bank continues its expansion and digital transformation, it remains a dominant force in Pakistan’s financial sector.
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