February 25, 2026 (MLN): United Bank Limited (PSX:UBL) reported a net profit of Rs128.01bn for the year ended December 31, 2025, a 59% increase from the Rs80.53bn profit recorded in the previous year.

The bank's earnings per share rose to Rs51.33 from Rs32.89 in the corresponding period as per the unconsolidated statement of profit and loss while dividend was declared at Rs8 per share.

The bank's mark-up or return or interest earned increased 9% year-on-year to Rs1.18 trillion from Rs1.08 trillion, reflecting growth.

Mark-up or return or interest expensed declined 10% to Rs823.26bn from Rs911.17bn, resulting in a net mark-up or interest income of Rs361.56bn, up 2.1 times from Rs173.41bn in the prior year.

Total non-mark-up or interest income declined 34% to Rs57.99bn from Rs87.49bn, reflecting softer performance in fee-based and trading revenues.

Fee and commission income increased 48% to Rs27.99bn from Rs18.91bn, demonstrating strong growth in fee-based revenues.

Dividend income grew 35% to Rs2.42bn from Rs1.80bn, while foreign exchange income surged 41% to Rs17.19bn from Rs12.22bn.

The bank recorded a loss from derivatives of Rs523.9m compared to a gain of Rs1.23bn in the prior year.

Gain on securities declined 77% to Rs9.88bn from Rs42.59bn, as the prior period had benefited from significantly higher trading gains.

Other income dropped 87% to Rs1.04bn from Rs7.85bn.

Total income increased 61% to Rs419.56bn from Rs260.91bn in FY2024, driven primarily by the strong growth in net interest income. Total non-mark-up or interest expenses increased 39% to Rs135.94bn from Rs97.97bn.

Operating expenses rose 37% to Rs130.19bn from Rs94.78bn, while workers' welfare fund increased 82% to Rs5.65bn from Rs3.11bn. Other charges increased 36% to Rs102.7m from Rs75.3m.

Profit before credit loss allowance reached Rs283.62bn, up 74% from Rs162.94bn in the prior year.

The bank recorded a net reversal of credit loss allowance and write-offs of Rs4.65bn compared to a charge of Rs12.75bn in FY2024, indicating significantly improved asset quality and lower provisioning requirements. This substantial reversal positively impacted profitability.

Profit before taxation stood at Rs288.27bn, up 92% from Rs150.19bn in the corresponding period last year. The bank recorded a taxation expense of Rs160.26bn, up 2.3 times from Rs69.66bn.

Despite the substantially higher tax burden, which more than doubled, the strong operational performance enabled the bank to deliver 59% profit growth.