KARACHI: United Bank Limited (UBL) on Wednesday announced its second quarter 2026 results, reporting consolidated earnings of Rs37.5 billion, translating into earnings per share (EPS) of Rs14.97, up 31 per cent year-on-year (YoY) but down 23 per cent quarter-on-quarter (QoQ).
This takes the bank’s first half 2026 earnings to Rs85.9 billion, with EPS of Rs34.3, up 33 per cent YoY. According to Asad Ali of Topline Research, the result came in higher than industry expectations, driven by a higher-than-expected capital gain and a provision reversal against an expected provision expense.
Non-interest income rose 87 per cent YoY, primarily due to a capital gain of Rs12.8 billion in the quarter coupled with higher foreign exchange income, though it fell 30 per cent quarter-on-quarter against a larger Rs29.5 billion capital gain booked in the first quarter. The bank also recorded a provision reversal of Rs3.7 billion during the quarter.
Operating costs increased 35 per cent YoY and 19 per cent QoQ to Rs48.4bn, driven by the bank’s branch expansion and marketing spend aimed at deposit growth. Total deposits grew 43 per cent YoY and 13 per cent QoQ to Rs6.1 trillion by June 2026. Net interest income settled at Rs90.3 billion, down 1.0 per cent year-on-year and 9.0 per cent QoQ. The effective tax rate stood at 52 per cent.
The bank announced a dividend of Rs8 per share, taking the first half 2026 payout to Rs16 per share. The board also approved an agricultural advisory subsidiary, an equity investment in Khushhali Microfinance Bank, and a university project with Bestway Foundation, subject to regulatory approvals.
