United Bank Limited (UBL) has reported a sharp rise in profitability for the calendar year 2025, delivering a 73 percent increase in net profit, supported by strong net interest income expansion and steady balance sheet performance. The consolidated statement of profit or loss submitted to the Pakistan Stock Exchange shows that the bank closed CY25 with a profit after tax of Rs130 billion, compared to Rs75 billion in the preceding year, marking one of its strongest annual showings in recent years.
The financial results translate into earnings per share of Rs52.13, significantly higher than Rs30.70 recorded in CY24. The improvement in per-share earnings highlights enhanced shareholder returns and reflects the bank’s ability to capitalize on prevailing interest rate dynamics and asset allocation strategies during the year.
The board of directors met on February 25, 2026 in Islamabad to review the performance and approve the final payout for shareholders. The board authorized a final cash dividend of Rs8 per share for the year ended December 31, 2025. This comes on top of interim dividends amounting to Rs27 per share that had already been distributed earlier in the year, bringing the total dividend for CY25 to Rs35 per share.
A key driver of UBL’s performance was a substantial rise in net interest income, which nearly doubled to Rs361.55 billion from Rs173.55 billion in the prior year. The increase was attributed to higher yields and an improved asset mix, enabling the bank to benefit from the elevated interest rate environment. Despite this surge in core income, non-interest income declined to Rs62.70 billion, down from Rs83.70 billion in CY24, reflecting lower contributions from fee-based and other ancillary sources.
Overall, total income climbed to Rs424.26 billion compared to Rs257.24 billion a year earlier, demonstrating a broad-based uplift in revenue generation. On the expense side, operating expenses rose to Rs133 billion, while total expenses reached Rs138.77 billion, up from Rs100.33 billion in CY24. The increase in expenses reflects higher administrative and operational outlays, consistent with sector-wide cost pressures and expanded business activity.
In addition to its earnings growth, UBL emerged as one of the largest taxpayers within Pakistan’s banking industry. The bank paid Rs161 billion in income tax during CY25, a sharp increase from Rs70 billion paid in the previous year. This substantial contribution underscores the sector’s role in supporting fiscal revenues amid a challenging macroeconomic landscape.
Financial indicators for CY25 compared with CY24 reflect strong momentum across major performance metrics. Profit after tax rose from Rs75 billion to Rs130 billion, earnings per share increased from Rs30.70 to Rs52.13, and net interest income expanded from Rs173.55 billion to Rs361.55 billion. While non-interest income declined from Rs83.70 billion to Rs62.70 billion, total income advanced from Rs257.24 billion to Rs424.26 billion. Operating and total expenses recorded increases, and total dividend distribution reached Rs35 per share for the year.
The results highlight UBL’s resilience during a period marked by elevated interest rates and economic pressures. Strong core income growth, disciplined lending practices, and evolving asset quality dynamics have supported profitability. Market analysts expect the bank to sustain healthy earnings momentum in 2026, aided by prudent credit management and continued balance sheet optimization.
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