United Bank Limited (PSX: UBL) posted a net profit of Rs128.01 billion for the year ended December 31, 2025, marking a 59% increase from Rs80.53 billion in the previous year. Earnings per share rose to Rs51.33 from Rs32.89, while the board declared a dividend of Rs8 per share.
The bank’s mark-up or return on interest income increased 9% year-on-year to Rs1.18 trillion from Rs1.08 trillion, while interest expenses declined 10% to Rs823.26 billion from Rs911.17 billion. This resulted in net interest income of Rs361.56 billion, more than doubling from Rs173.41 billion in FY2024 and driving overall growth.
Total non-mark-up or interest income fell 34% to Rs57.99 billion from Rs87.49 billion due to softer fee-based and trading revenues. However, fee and commission income rose 48% to Rs27.99 billion from Rs18.91 billion. Dividend income increased 35% to Rs2.42 billion, and foreign exchange income surged 41% to Rs17.19 billion. Meanwhile, losses from derivatives reached Rs523.9 million compared to a prior gain of Rs1.23 billion, and gains on securities dropped 77% to Rs9.88 billion.
UBL’s total income climbed 61% to Rs419.56 billion from Rs260.91 billion, driven primarily by strong net interest growth. Operating expenses rose 37% to Rs130.19 billion, and the workers’ welfare fund increased 82% to Rs5.65 billion. Profit before credit loss allowance reached Rs283.62 billion, up 74% from Rs162.94 billion. Notably, the bank posted a net reversal of credit loss allowance of Rs4.65 billion, compared to a charge of Rs12.75 billion in FY2024, boosting profitability.
Profit before taxation grew 92% to Rs288.27 billion despite a tax expense of Rs160.26 billion, more than doubling from Rs69.66 billion. Strong operational performance enabled the bank to deliver robust 59% growth in net profit.
