UBL Reports Strong Q1 2024 Financial Performance

United Bank Limited (UBL), one of Pakistan's leading commercial banks, has announced its financial results for the first quarter of 2024, showcasing a robust performance. The bank recorded consolidated earnings of Rs16.14 billion, marking a notable increase of nearly 12% from the same period last year. Earnings per share for the quarter stood at Rs13.05, with the Board of Directors declaring an interim cash dividend of Rs11 per share.

UBL's profitability was driven by higher gains on securities, with the bank achieving a new peak of Rs13.1 per share. Despite a rise in mark-up, the net mark-up/return witnessed a decline of almost 20%. The bank's fee and commission income surged by 24% to Rs5.94 billion, while foreign exchange income experienced a significant drop of nearly 39%.

The bank reported substantial net gains on securities amounting to Rs12.83 billion, a stark contrast to the loss incurred in the same period last year. Additionally, UBL's dividend income remained relatively stable, showing a marginal decrease year-on-year.

UBL's non-mark-up income saw a remarkable increase of 130%, reaching Rs21.28 billion. Operating expenses rose by 22%, primarily due to higher expenditure on worker welfare funds, which surged by over 35% during the period.

Overall, UBL's profit before tax for the first quarter of 2024 stood at Rs31.18 billion, reflecting a substantial growth of over 24% compared to the previous year. The bank's strong financial performance underscores its resilience and strategic management in navigating the evolving economic landscape.