KARACHI: United Bank Limited (UBL) announced its financial results for the fourth quarter of CY24, posting a consolidated profit after tax (PAT) of Rs26 billion (EPS: Rs21.3), nearly doubling from Rs13.5 billion (EPS: Rsw.
NII surged by 84 per cent year-on-year (YoY) and 32 per cent quarter-on-quarter (QoQ) to Rs68.2 billion, driven by a favourable investment portfolio and volumetric growth. Non-markup income also saw a substantial increase of 158 per cent YoY and 64 per cent QoQ, mainly due to elevated gains on securities, though fee income declined by approximately 39 per cent QoQ.
Operating expenses climbed to Rs38.5 billion, up 94 per cent YoY and 60 per cent QoQ, possibly due to International Financial Reporting Standards (IFRS)-related adjustments. This pushed the cost-to-income ratio to 39 per cent, up from 35 per cent in the previous quarter. The bank’s credit loss allowance rose sharply to Rs14.2 billion from Rs0.9 billion in 3Q CY24. Meanwhile, the effective tax rate for the quarter declined to 39 per cent from 57 per cent in the preceding quarter.
UBL also announced a final cash dividend of Rs11 per share, bringing the total CY24 payout to Rs44 per share.