United Bank posts 32.4% rise in net profit for CY24

United Bank Limited (UBL) reported a net profit of PKR 75.8 billion ($271 million) for the fiscal year ending December 2024, marking a 32.4% increase from PKR 56.5 billion the previous year.

The bank announced earnings per share (EPS) of PKR 61.4 and declared a final cash dividend of PKR 11 per share, bringing the total annual payout to PKR 44 per share.

An analyst at Topline Securities attributed the higher-than-expected earnings to a lower effective tax rate and robust growth in non-interest income, primarily driven by gains on securities.

The Pakistani government had recently imposed an additional 5% tax on bank earnings, raising the total corporate tax rate to 54% from 49%.

However, UBL recorded a tax rate of 46%, as the bank accounted for previous years' tax adjustments and reversed provisions related to the 2021 ADR rule, the analyst noted.

UBL's net interest income for 2024 rose to PKR 173.5 billion, up 16.5% from PKR 148.9 billion in the prior year. The bank also booked a provisioning charge of PKR 12.8 billion during the year.