UBL Approves Rs. 40 Billion in Strategic Investments Across Agriculture, Microfinance, and Higher Education

United Bank Limited, one of Pakistan’s largest commercial banks, has approved strategic investments totaling as much as Rs. 40 billion across agriculture, microfinance, and higher education, signaling a push beyond its core banking operations.

The decision was approved by the bank’s Board of Directors, subject to the necessary corporate and regulatory approvals, according to the notification to the Pakistan Stock Exchange (PSX).

The bank has approved the establishment of a new agriculture technology company with an investment of Rs. 8 billion, marking a major strategic move to modernize Pakistan’s agriculture sector through technology-driven solutions.

The new subsidiary will be majority-owned by UBL and will focus on developing technology-enabled advisory and research services to improve agricultural productivity, sustainability, and farmers’ incomes.

The company will also work with stakeholders across the agricultural value chain to strengthen the sector and support the social and economic uplift of farming communities.

Alongside the AgriTech initiative, UBL approved an additional equity investment of up to Rs. 22 billion in Khushhali Microfinance Bank Limited through a rights issue and the acquisition of additional shares. The investment could increase UBL’s ownership in the microfinance bank from approximately 27.8 percent to as much as 100 percent, subject to shareholder and regulatory approvals.

The bank said the investment would help restore Khushhali Microfinance Bank’s financial position after it reported negative equity of Rs. 16.15 billion at the end of 2025.

The board also approved the establishment of a not for profit university in partnership with the Bestway Foundation. UBL will contribute Rs. 10 billion over the next three to five years, with the Bestway Foundation matching the contribution. The university will be established after the required approvals and is expected to focus on higher education and research.

Separately, the bank announced an interim cash dividend of Rs. 8 per share for the second quarter ended June 30, 2026, in addition to the Rs. 8 per share interim dividend already paid earlier this year. The board did not recommend any bonus shares or rights shares.

UBL also reported a strong financial performance for the first half of 2026. The bank posted a consolidated profit after tax of Rs. 85.9 billion for the six months ended June 30, 2026, compared with Rs. 64.7 billion in the same period last year.

Earnings per share increased to Rs. 34.30 from Rs. 26.07 a year earlier. For the second quarter alone, profit after tax stood at Rs. 37.5 billion, with earnings per share of Rs. 14.97.