UBL has posted an impressive profit of Rs. 36.11 billion after tax for the first quarter of 2025. This marks a 124% increase compared to Rs. 16.14 billion during the same period last year. The bank’s earnings per share also rose sharply, jumping from Rs. 13.05 to Rs. 29.34.
The key reason behind this strong performance is a significant increase in net interest income, which reached Rs. 84.22 billion in Q1 2025. In comparison, it stood at just Rs 28 billion in the first quarter of 2024. This sharp growth highlights UBL’s strong position in the current high interest rate environment.
In recognition of the positive results, the bank announced a cash dividend of Rs11 per share for its shareholders.
However, not all areas of the bank’s income showed growth. UBL’s non-interest income, which includes earnings from sources other than interest on loans, dropped by 21% year-on-year. Despite this decline, the bank saw a 26% rise in fee and commission income — a positive sign that UBL continues to perform well in service-based revenue areas.
The bank’s effective tax rate during the quarter was 53%, which is slightly higher than what market analysts had expected. Still, UBL’s overall results are being seen as strong and show that the bank is managing its core operations efficiently, even as tax and other financial pressures persist.
UBL’s first quarter performance sets a strong tone for the rest of the year. With high interest income and solid returns for shareholders, the bank has positioned itself well for continued growth in 2025.
