UBL Profit Rises 33% in 1H As Deposits Hit Record Rs. 6.1 Trillion

United Bank Limited (PSX: UBL) reported a consolidated profit after tax (PAT) of Rs. 85.9 billion (EPS: Rs. 34.3) in the first half of 2026, up 33 percent year-on-year (YoY) as deposits surged to an all-time high of Rs. 6.1 trillion.

PAT came in at Rs. 37.5 billion (EPS: Rs. 14.97) in the second quarter of 2026, up 31 percent YoY but down 23 percent quarter-on-quarter (QoQ).

The bank’s non-interest income jumped 123 percent YoY to Rs. 73.8 billion and also increased 87 percent YoY to Rs. 30.4 billion. According to Topline Securities, this was driven primarily by a Rs. 12.8 billion capital gain recorded during the quarter. Fee income also increased 5 percent YoY during the 6 months.

Meanwhile, net interest income (NII) declined 1 percent YoY and 9 percent QoQ to Rs. 90.3 billion, mainly due to the realization of gains on the investment portfolio. For H1, it increased 8 percent YoY to Rs. 189.7 billion.

UBL’s deposits rose 43 percent YoY and 13 percent QoQ to a record Rs. 6.1 trillion.

Operating expenses increased 35 percent YoY and 19 percent QoQ to Rs. 48.4 billion due to branch expansion and higher marketing costs aimed at deposit mobilization.

The bank’s cost-to-income ratio stood at 40 percent in the second quarter, compared with 33 percent in Q2 2025. However, for the first half of 2026, the ratio improved to 34 percent, from 30 percent in the corresponding period last year.

The effective tax rate remained unchanged at 52 percent during the quarter.

Alongside the results, UBL’s board approved the establishment of an agricultural advisory subsidiary with an investment of Rs. 8 billion, an equity investment of Rs. 22 billion in Khushhali Microfinance Bank, and a Rs. 10 billion commitment to establish a not-for-profit university with the Bestway Foundation, subject to regulatory approvals.