{"id":9767,"date":"2025-07-12T23:41:33","date_gmt":"2025-07-12T18:41:33","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=9767"},"modified":"2025-07-12T23:41:37","modified_gmt":"2025-07-12T18:41:37","slug":"ubls-earnings-jump-sharply-year-on-year-but-quarter-on-quarter-growth-slows","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/ubls-earnings-jump-sharply-year-on-year-but-quarter-on-quarter-growth-slows\/","title":{"rendered":"UBL’s Earnings Jump Sharply Year-on-Year, But Quarter-on-Quarter Growth Slows"},"content":{"rendered":"\n

United Bank Limited (UBL<\/a>) has announced its financial results for the second quarter of 2025. The numbers show a strong year-on-year improvement in profitability, although there is a noticeable decline compared to the previous quarter.<\/p>\n\n\n\n

UBL reported a profit after tax of PKR 28.6 billion<\/strong> in 2QCY25, which equals earnings per share (EPS) of PKR 11.4<\/strong>. This is a 93 percent increase from the same period last year<\/strong>, but a 21 percent decline compared to the first quarter of 2025<\/strong>. The bank also declared an interim dividend of PKR 8.0 per share<\/strong>, taking the total half-year payout to PKR 13.5 per share<\/strong>.<\/p>\n\n\n\n

Core Banking Income Drives Results<\/h2>\n\n\n\n

UBL\u2019s main source of income, known as net interest income (NII), came in at PKR 91.2 billion<\/strong>. This is more than three times higher than the same quarter last year<\/strong>, and 8 percent higher than the previous quarter<\/strong>. The growth came from a larger investment portfolio and a rise in loans and advances.<\/p>\n\n\n\n

Markup income rose by 8 percent year-on-year<\/strong> to PKR 303 billion<\/strong>, while markup expense fell by 16 percent<\/strong> to PKR 212 billion<\/strong>. This combination helped maintain net interest margins at around 4.2 percent<\/strong>, the same as the previous quarter.<\/p>\n\n\n\n

Non-Core Income Weaker, But Fees Hold Up<\/h2>\n\n\n\n

Non-interest income fell to PKR 16.6 billion<\/strong>, down 15 percent year-on-year<\/strong>. This drop was mainly due to a sharp decline in gains from the sale of securities. In contrast, fee income rose significantly, reaching PKR 9.0 billion<\/strong>, which is a 61 percent increase compared to the same quarter last year<\/strong>.<\/p>\n\n\n\n

This rise in fee income suggests that UBL is building strength in areas such as digital banking, cards, and transaction services.<\/p>\n\n\n\n

Costs and Credit Quality<\/h2>\n\n\n\n

Operating expenses increased sharply to PKR 35.9 billion<\/strong>, up 76 percent year-on-year<\/strong>. Despite this, the cost-to-income ratio improved to 32 percent<\/strong>, compared to 40 percent in the same quarter last year<\/strong>. However, it was higher than the 25 percent recorded in the first quarter of this year<\/strong>.<\/p>\n\n\n\n

UBL also booked a provision reversal of PKR 2.3 billion<\/strong>, indicating that the bank did not need to set aside large sums for bad loans during the quarter. This is a positive sign for the bank’s asset quality.<\/p>\n\n\n\n

Higher Taxes Impact Bottom Line<\/h2>\n\n\n\n

One area of concern was the tax rate. UBL paid an effective tax rate of 61 percent<\/strong>, which is much higher than the 47 percent in 2QCY24<\/strong> and 53 percent in 1QCY25<\/strong>. This rise in tax expense played a role in the quarter-on-quarter drop in profit.<\/p>\n","protected":false},"excerpt":{"rendered":"

United Bank Limited (UBL) has announced its financial results for the second quarter of 2025. The numbers show a strong year-on-year improvement in profitability, although there is a noticeable decline compared to the previous quarter.<\/p>\n","protected":false},"author":11,"featured_media":7044,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,138],"tags":[181],"class_list":["post-9767","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-financials","tag-ubl"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/UBL-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/UBL-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/UBL-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/UBL-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/9767","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=9767"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/9767\/revisions"}],"predecessor-version":[{"id":9768,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/9767\/revisions\/9768"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/7044"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=9767"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=9767"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=9767"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}