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UBL tops PSX dividend payouts with PKR 115 billion

Bank reports PKR 28.6 billion quarterly profit, converts all branches in KP and Balochistan to Islamic banking

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UBL tops PSX dividend payouts with PKR 115 billion
A view of United Bank Limited's head office in Karachi
UBL Facebook

United Bank Limited (UBL) has paid PKR 115 billion in dividends to shareholders over the last eight quarters, the highest among listed companies on the Pakistan Stock Exchange (PSX). The bank has also converted all its branches in Khyber Pakhtunkhwa and Balochistan to Islamic banking, management said at a corporate briefing on Wednesday.

UBL posted a profit after tax of PKR 28.6 billion in the outgoing quarter, up 103% from the same period last year. Earnings per share (EPS) stood at PKR 11.3, taking first-half 2025 EPS to PKR 25.69. The bank also announced a dividend of PKR 8 per share, bringing its first-half payout to PKR 13.5.

Deposits and market share

Over the past two years, UBL has achieved total deposit growth of 98% and current deposit growth of 114%, the highest in the industry. The bank holds an 11.5% share of total industry deposits, with current deposits representing 13.8%. Management said its strategy will remain focused on growing low-cost deposits.

Between June and August, UBL recorded a notable increase in current account balances.

In 2025's second quarter, non-funded income fell 17% year-on-year to PKR 15.2 billion, despite a 68% increase in fee income. The bank’s trade market share stands at 8.6%, which management described as low, saying efforts are underway to improve it.

UBL recently acquired Silk Bank, including its 105 branches. Management said future branch expansion will be tied to deposit growth opportunities.

Investment and strategy

UBL’s investment portfolio is largely weighted toward long-term floating-rate instruments, with 59% (PKR 4.92 trillion) invested in 10-year floating-rate Pakistan Investment Bonds (PIBs), carrying a weighted average maturity of 9.2 years.

Another 14% (PKR 1.169 trillion) is held in shorter-tenor floating-rate PIBs with 3.5 years average maturity, while 20% (PKR 1.66 trillion) is allocated to fixed-rate PIBs and Sukuks with a 2.2-year maturity.

The bank’s earnings strategy is primarily centered on 12-month T-Bills and PIBs, reflecting a conservative approach with minimal exposure to equities.

Management said UBL sees limited opportunities in Bahrain and Qatar and is instead directing its expansion toward the UAE, which is considered a more favorable market.

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