{"id":4620,"date":"2025-04-16T17:04:15","date_gmt":"2025-04-16T12:04:15","guid":{"rendered":"https:\/\/pkfin.kotenterprises.dev\/?p=4620"},"modified":"2025-04-16T17:04:15","modified_gmt":"2025-04-16T12:04:15","slug":"ubl-posts-highest-ever-quarterly-profit-of-rs-36-billion-in-q1-2025","status":"publish","type":"post","link":"https:\/\/pkfin.kotenterprises.dev\/?p=4620","title":{"rendered":"UBL Posts Highest Ever Quarterly Profit of Rs. 36 Billion in Q1-2025"},"content":{"rendered":"

Karachi, April 16, 2025<\/strong> \u2014 United Bank Limited (UBL)<\/a> has announced its financial results for the first quarter of 2025, posting an all-time high quarterly profit of Rs. 36 billion<\/strong>, translating into an earnings per share (EPS) of Rs. 28.9<\/strong>. This marks a 126% year-on-year (YoY)<\/strong> and 39% quarter-on-quarter (QoQ)<\/strong> surge in profitability, significantly outpacing industry expectations which ranged between Rs. 12.8 and Rs. 22.9 per share.<\/p>\n

This is not only UBL\u2019s highest ever quarterly<\/a> earnings but also the highest earnings ever recorded by any bank in a single quarter<\/strong> in Pakistan\u2019s banking history.<\/p>\n

Strong Net Interest Income Drives Earnings<\/h2>\n

According to a report by Topline Securities, the robust earnings growth was primarily fueled by a sharp rise in Net Interest Income (NII)<\/strong>, which reached Rs. 84 billion<\/strong> in 1Q2025 \u2014 up 24% QoQ<\/strong> and a staggering 200% YoY<\/strong>. This growth was supported by a rise in current account deposits and higher yields on investments, particularly Open Market Operations (OMO) borrowings<\/strong>, benefiting from a lower cost of funds and strategic investment<\/a> deployment.<\/p>\n

Provision Reversals and Non-Interest Income Trends<\/h2>\n

UBL recorded a provision reversal of Rs. 1.6 billion<\/strong> during the quarter, compared to a reversal of Rs. 1.7 billion in the same period last year and a provision expense of Rs. 14.2 billion in the previous quarter (4Q2024).<\/p>\n

Meanwhile, Non-Interest Income<\/strong> declined by 21% YoY<\/strong> and 38% QoQ<\/strong>, totaling Rs. 16.8 billion<\/strong> in 1Q2025. This drop was largely due to a 55% YoY and 69% QoQ<\/strong> reduction in gains on securities, which amounted to Rs. 5.8 billion<\/strong>. However, the bank\u2019s fee and commission income<\/strong> showed a strong recovery, increasing 26% YoY<\/strong> and 90% QoQ<\/strong> to reach Rs. 7.5 billion<\/strong>.<\/p>\n

Higher Tax Rate Surprises Market<\/h2>\n

UBL\u2019s effective tax rate came in at 53%<\/strong>, higher than industry estimates. Analysts had anticipated a lower effective tax rate due to the ongoing merger activities involving SILK Bank<\/a>.<\/p>\n

Dividend and Stock Split Announcement<\/h2>\n

In line with market expectations, UBL declared a cash dividend of Rs. 11 per share<\/strong>. Additionally, the bank announced a stock split in a 2-for-1 ratio<\/strong>, granting shareholders two shares for every one share held.<\/p>\n

Valuation<\/h2>\n

At current levels, UBL is trading at a 2025E price-to-earnings (PE) ratio of 7.7x<\/strong>, offering a dividend yield of 9%<\/strong>, making it an attractive option for income-seeking investors.<\/p>\n","protected":false},"excerpt":{"rendered":"

Karachi, April 16, 2025 — United Bank Limited (UBL) has announced its financial results for the first quarter of 2025, posting an all-time high quarterly profit of Rs. 36 billion, translating into an earnings per share (EPS) of Rs. 28.9. This marks a 126% year-on-year (YoY) and 39% quarter-on-quarter (QoQ) surge in profitability, significantly outpacing […]<\/p>\n","protected":false},"author":1,"featured_media":4486,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","footnotes":""},"categories":[1299],"tags":[],"class_list":["post","format-standard"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t