UBL Profit Jumps 36% in Q3 on Strong Net Interest Income
United Bank Limited (UBL) reported a 36% year-on-year surge in third-quarter profit, driven by robust net interest income and improved cost efficiencies despite weaker non-interest earnings
United Bank Limited (UBL) announced 3QCY25 results today wherein the bank posted unconsolidated net earnings of Rs34.7bn (EPS Rs13.9) compared to profit of Rs10.2 per share during 3QCY24 (up 36%YoY).Cement Profits Rise 60% in 4QFY25
Overall earnings remained higher than market expectations while the bank also announced interim dividend of Rs8 per share in 3QCY25 taking cumulative dividend of Rs21.5. UBL’s interest earned clocked in at Rs297bn (down 4%YoY), while interest expense for the period stood at Rs205bn (down 21%YoY).
As a result, NII surged to Rs92bn compared to Rs52bn during same period last year (up 78%YoY). This robust growth in NII was primarily driven by a significant expansion in investments, (up 41%YoY). This was supported by increased borrowing (up 33%YoY) and aggressive deposit growth of 69%YoY during 3QCY25.
UBL’s non-interest income reached Rs13bn in 3QCY25, (down 42%YoY) primarily due to a drop in gain on securities (down 85%YoY). The bank recorded a provisioning reversal of Rs822mn during 3QCY25 versus Expected credit loss of Rs894mn in the same period last year.
On quarterly basis, NII remained relatively flat, however deposits surged by 11% during 3QCY25. ▪ On cumulative basis, NII clocked in at Rs267bn in 9MCY25, posting a staggering growth (up 154%YoY) compared to Rs105bn during 9MCY24.
