United Bank Limited (UBL) has approved a strategic investment plan of up to Rs. 40 billion spanning agriculture technology, microfinance, and higher education as it expands beyond its traditional banking business.
The investments were approved by the bank’s Board of Directors, subject to shareholder and regulatory approvals, according to a notice submitted to the Pakistan Stock Exchange (PSX).
The largest allocation includes an investment of up to Rs. 22 billion in Khushhali Microfinance Bank Limited through a rights issue and the purchase of additional shares. The transaction could raise UBL’s stake in the microfinance lender from around 27.8 percent to as much as 100 percent, giving it full ownership if all approvals are secured.
UBL said the capital injection is intended to strengthen Khushhali Microfinance Bank, which reported negative equity of Rs. 16.15 billion at the end of 2025.
The bank has also approved the creation of a new AgriTech subsidiary with an initial investment of Rs. 8 billion. Majority-owned by UBL, the company will provide technology-driven advisory and research services aimed at improving agricultural productivity, promoting sustainable farming practices, and increasing farmers’ incomes. It will also collaborate with stakeholders across the agricultural value chain to support the sector’s long-term development.
In another major initiative, UBL will contribute Rs. 10 billion over the next three to five years to establish a not-for-profit university in partnership with the Bestway Foundation, which will match UBL’s contribution. The proposed institution will focus on higher education and research after obtaining the required regulatory approvals.
Separately, the board declared an interim cash dividend of Rs. 8 per share for the second quarter ended June 30, 2026. This is in addition to the Rs. 8 per share interim dividend already paid earlier this year. No bonus shares or rights shares were announced.
UBL also reported robust financial results for the first half of 2026. Consolidated profit after tax rose to Rs. 85.9 billion, up from Rs. 64.7 billion in the same period last year, while earnings per share increased to Rs. 34.30 from Rs. 26.07.
For the second quarter alone, the bank posted Rs. 37.5 billion in profit after tax, translating into earnings per share of Rs. 14.97.
