UBL Announces Rs8 per Share Interim Dividend as Half-Year Profit Doubles to Rs64.7 Billion

KARACHI:United Bank Limited (PSX: UBL)has declared an interim cash dividend ofRs8 per share, after posting a106% year-on-year increasein its after-tax profit for the half-year ended June 30, 2025. The bank’s profit soared toRs64.7 billion, up from Rs31.4 billion in the same period last year, driven by a significant rise in net interest income amid favourable interest rate spreads. UBL’s earnings per share (EPS) jumped toRs26.07, compared to Rs12.58 during 1HFY24, reflecting robust underlying profitability. According to a stock filing on Saturday, this interim dividend takes the bank’s total payout for the first half of FY25 toRs19 per share (270%), including an earlier dividend of Rs11 per share. The bank’s net interest income surged by an impressive205%, reachingRs175.4 billion, compared to Rs57.3 billion last year. Total income for the period rose113%to Rs208.5 billion, up from Rs97.9 billion. The strong growth was primarily attributed to improved yields and a favourable interest rate environment. On the non-markup side, income declined19% year-on-yearto Rs33 billion, down from Rs40.6 billion, mainly due to lower capital gains as the previous year included sizeable one-off portfolio gains. However,core bankingactivity remained resilient: fee and commission income rose43%, foreign exchange income grew20%, and gains on securities rebounded with a330%increase. Operating expenses climbed53%to Rs59.7 billion, reflecting inflationary pressures and growth-driven costs but remained well covered by strong income growth. Profit before credit loss allowance rose153%to Rs146.5 billion, up from Rs57.8 billion. UBL bookedRs3.9 billionin credit loss provisions and write-offs—up60%year-on-year—citing a conservative approach amid macroeconomic uncertainty. Tax expenses more than tripled to Rs85.6 billion, in line with higher pre-tax earnings and recent tax adjustments. Despite a slight dip in miscellaneous recoveries, which brought other income down to Rs0.5 billion from Rs0.6 billion, thebank’s overall profitabilityremained robust. Pre-tax earnings increased149%to Rs150.4 billion. UBL’s performance so far in 2025 places it among the country’s top-performing financial institutions, benefiting from a high-interest rate environment and prudent risk management.