United Bank Limited (PSX: UBL) posted its highest-ever half-year deposit base while reporting a 33 percent year-on-year (YoY) increase in consolidated profit after tax (PAT) for the first half of 2026.

The bank earned a PAT of Rs. 85.9 billion (EPS: Rs. 34.30) during H1 2026, supported by strong non-interest income and record deposit growth. Deposits climbed 43 percent YoY and 13 percent quarter-on-quarter (QoQ) to an all-time high of Rs. 6.1 trillion.

For the second quarter alone, UBL recorded a PAT of Rs. 37.5 billion (EPS: Rs. 14.97), rising 31 percent YoY but declining 23 percent QoQ.

Non-interest income surged 123 percent YoY to Rs. 73.8 billion in the first half, while Q2 non-interest income rose 87 percent YoY to Rs. 30.4 billion. According to Topline Securities, the growth was mainly driven by a Rs. 12.8 billion capital gain booked during the quarter. Fee income also increased 5 percent YoY during the six-month period.

Net interest income (NII) for the second quarter slipped 1 percent YoY and 9 percent QoQ to Rs. 90.3 billion, largely due to gains realized on the investment portfolio. However, H1 NII still increased 8 percent YoY to Rs. 189.7 billion.

Operating expenses rose 35 percent YoY and 19 percent QoQ to Rs. 48.4 billion, reflecting branch expansion and higher marketing spending to attract deposits.

The bank’s cost-to-income ratio stood at 40 percent in Q2 2026, compared with 33 percent a year earlier. For the first half, the ratio improved to 34 percent, versus 30 percent in the same period last year.

UBL’s effective tax rate remained unchanged at 52 percent during the quarter.

Separately, the board approved several strategic investments, including Rs. 8 billion to establish an agricultural advisory subsidiary, a Rs. 22 billion equity investment in Khushhali Microfinance Bank, and a Rs. 10 billion commitment, in partnership with the Bestway Foundation, to establish a not-for-profit university, subject to regulatory approvals.