United Bank Limited (UBL) has reported a record consolidated profit after tax (PAT) of Rs. 75.78 billion for the calendar year ending December 31, 2024 (CY24), marking a 34% increase compared to Rs. 56 billion in the same period last year. This is the highest-ever PAT in the bank’s history and the second-highest profit in the banking industry for the year.

The bank also announced a cash dividend of Rs. 11 per share (110%), in addition to the interim cash dividend of Rs. 33 per share (330%) already paid earlier, bringing the total dividend payout to Rs. 44 per share for CY24.

UBL’s Net Interest Income (NII) rose by 17% year-on-year (YoY) to Rs. 173.5 billion in CY24. The bank saw a significant surge in interest income, which grew by 103% YoY to Rs. 1.084 billion. However, this was accompanied by a sharp 136% YoY increase in interest expenses.

Non-Interest Income also experienced remarkable growth, surging by 132% YoY to Rs. 83.7 billion. This increase was primarily driven by a gain of Rs. 42.6 billion from the sale of securities, a significant jump compared to Rs. 532 million in the previous year.

Fee and commission income rose by 9% YoY to Rs. 21.5 billion, while foreign exchange income declined to Rs. 12.5 billion during the year.

The bank’s operating expenses (OPEX) increased by 39% YoY, reaching Rs. 97 billion in CY24. Total non-interest expenses stood at Rs. 100 billion for the year.

UBL’s effective tax rate for CY24 was 40.4%, up from 36.3% in the previous year, reflecting higher tax obligations in line with its increased profitability.

With its record-breaking PAT and strong financial performance, UBL continues to solidify its position as one of the leading banks in Pakistan. The bank’s robust growth in both interest and non-interest income, coupled with its strategic gains from securities, highlights its ability to navigate challenging economic conditions while delivering value to shareholders.