UBL Was The 2nd Most Profitable After Meezan Bank in 2024

United Bank Limited (UBL) Wednesday announced a consolidated profit after (PAT) tax of Rs. 75.78 billion for the calendar year ended 31 December 2024 (CY24), up 34 percent compared to a PAT of Rs. 56 billion in the same period last year. This is the highest-ever PAT posted by the bank in a calendar year and the second-highest profit industry-wide in banking. The bank also announced a cash dividend of Rs. 11 per share i.e. 110 percent. This is in addition to the interim cash dividend already paid at Rs. 33 per share i.e. 330 percent. The bank’s Net Interest Income stood at Rs. 173.5 billion for the CY24, reflecting a YoY increase of 17 percent. The bank experienced a big increase in interest expense, which surged by 136 percent YoY. Moreover, the interest income also experienced substantial growth, rising by 103 percent YoY to Rs. 1.084 billion. The bank’s Non-Interest Income surged by 132 percent YoY during CY24 to Rs. 83.7 billion. This significant rise is primarily attributed to a gain on the sale of securities amounting to Rs. 42.6 billion, compared to just Rs. 532 million in the same period last year. Additionally, fee and commission income increased by 9 percent YoY to Rs. 21.5 billion in CY24. However, foreign exchange income declined to Rs. 12.5 billion during the period in review. The bank’s OPEX increased by 39 percent YoY in CY24 clocking in at Rs. 97 billion. With this, total non-interest expenses stood at Rs. 100 billion. The effective tax rate was set at 40.4 percent during CY24 compared to 36.3 percent in the same period last year.