UBL deposits

UBL Reports Strong Earnings Growth In First Half Of 2026 United Bank Limited (UBL) posted a strong financial performance during the first half of 2026, reporting a 33 percent year-on-year increase in consolidated profit after tax as customer deposits climbed to an all-time high of Rs6.1 trillion. The results highlight the bank’s continued balance sheet expansion despite a challenging interest rate environment. UBL reported a consolidated profit after tax of Rs85.9 billion for the six-month period ended June 30, 2026, translating into earnings per share (EPS) of Rs34.30. During the second quarter alone, the bank earned Rs37.5 billion, with EPS of Rs14.97, representing a 31 percent increase compared with the same period last year, although quarterly earnings declined from the previous quarter. Deposits Climb To Historic High One of the biggest highlights of the financial results was the sharp increase in customer deposits. UBL’s deposits surged to a record Rs6.1 trillion, reflecting a 43 percent increase compared with the same period last year and a 13 percent rise over the previous quarter. The strong deposit growth reinforces the bank’s funding base and strengthens its liquidity position in an increasingly competitive banking sector. Net Interest Income Remains Resilient Despite lower interest rates and gains realized from its investment portfolio, UBL maintained stable earnings from its core banking operations. Net interest income (NII) for the second quarter stood at Rs90.3 billion, marginally lower than the previous year and quarter. However, for the first six months of 2026, NII increased 8 percent year-on-year to Rs189.7 billion, demonstrating resilience in the bank’s core income generation. Higher Operating Expenses Reflect Expansion Strategy Operating expenses increased during the reporting period as the bank continued investing in business growth. UBL’s operating costs rose 35 percent year-on-year and 19 percent quarter-on-quarter to Rs48.4 billion. The increase was primarily attributed to branch network expansion and higher marketing expenditures aimed at attracting new deposits and strengthening customer acquisition. The bank’s cost-to-income ratio stood at 40 percent during the second quarter, compared with 33 percent in the same quarter last year. For the first half of 2026, the ratio was reported at 34 percent. Tax Rate Remains Stable UBL’s effective tax rate remained unchanged at 52 percent during the second quarter of 2026. Despite higher taxation, the bank delivered strong profitability, supported by balance sheet growth, improved deposits, and steady income generation across its operations. Strong Deposit Growth Supports Future Expansion The latest financial results underline UBL’s continued growth momentum, with record deposits providing a stronger foundation for future lending and business expansion. While higher operating costs affected efficiency during the quarter, the bank’s robust earnings growth and expanding deposit base position it well to navigate changing market conditions and pursue further growth opportunities in Pakistan’s banking sector.