United Bank Limited performs exceptionally well as it registers a massive 59% increase in its net profit for the year ended December 31, 2025. The bank registers a net profit of Rs128.01 billion, which is a substantial increase from Rs80.53 billion in the previous year. The earnings per share also touch an impressive figure of Rs51.33, up from Rs32.89. Additionally, the board also keeps the dividend at Rs8 per share.
Strong Net Interest Income Fuels Overall Performance
The bank actively grows its mark-up or interest earned by 9% year-on-year, reaching Rs1.18 trillion. Executives successfully reduce mark-up expensed by 10% to Rs823.26 billion. As a result, net mark-up income more than doubles to Rs361.56 billion. Furthermore, fee and commission income increases 48% to Rs27.99 billion, showing strong customer engagement. Foreign exchange income surges 41% to Rs17.19 billion. However, the bank sees a 34% decline in total non-mark-up income to Rs57.99 billion, mainly because of softer trading gains. Despite this challenge, total income rises 61% to Rs419.56 billion, driven primarily by core banking activities.
Improved Asset Quality Leads to Lower Provisions
UBL benefits from a net reversal of credit loss allowance and write-offs of Rs4.65 billion, compared to a charge of Rs12.75 billion in the prior year. This positive development reflects improved asset quality and effective risk management. Consequently, profit before taxation soars 92% to Rs288.27 billion. Although taxation expense climbs 130% to Rs160.26 billion due to higher profits, the bank still delivers a solid 59% growth in profit after taxation. Operating expenses rise 37% to Rs130.19 billion as the bank invests in operations, yet these costs are well-managed.
In addition, analysts praise UBL for its ability to perform well despite economic pressures. The bank is able to overcome market challenges through strategic moves that improve its profitability. This performance further cements UBL’s position as one of the best performers in the Pakistani banking sector.
