KARACHI: United Bank Limited (UBL) announced a record-breaking quarterly profit of Rs36.1 billion (EPS: Rs29.3) for 1QCY25, reflecting a 126 per cent year-on-year (YoY) and 39 per cent quarter-on-quarter (QoQ) increase.

The performance was powered by a massive 200 per cent YoY surge in net interest income (NII), which reached Rs84.2 billion, and a provisioning reversal of Rs1.6 billion.The bank declared a cash dividend of Rs11 per share and unveiled a 2-for-1 stock split alongside the results, underlining confidence in its financial strength, said Arif Habib Ltd.

The sharp rise in NII was attributed to a 7.0 per cent YoY increase in interest earned and an 18 per cent YoY decline in interest expenses. On a quarterly basis, interest income rose 5.0 per cent while interest expenses fell 4.0 per cent, improving the bank’s margin outlook.

However, non-funded income declined by 37 per cent YoY and 21 per cent QoQ due to reduced capital gains (down 51 per cent YoY to Rs5.8 billion) and a 36.4 per cent YoY drop in other income to Rs210 million. FX income also fell 8.9 per cent YoY to Rs2.4 billion. On the upside, fee income surged by 26 per cent YoY and more than doubled quarter-on-quarter. Operating expenses increased 34 per cent YoY to Rs 26.7 billion but declined 26 per cent QoQ, bringing the cost-to-income ratio down to 26.4 per cent from 40.2 per cent in the same period last year.UBL’s effective tax rate for the quarter was 52.6 per cent, slightly higher than the previous quarter’s 48.2 per cent.