United Bank (UBL) Q3 2024 earnings summary

Executive summary

• 9M’24 standalone PAT rose 35% YoY to Rs55.0bn, with PBT up 36% to Rs107.8bn and EPS at Rs44.92; consolidated PAT was Rs49.7bn and EPS Rs40.12.

• Strategy centers on low-cost deposit and current-account growth, optimized capital deployment, sustainable earnings and high dividend payouts.

• Total shareholder return from Jan. 1, 2023 to Oct. 29, 2024 was 405%, including 188% dividend return and 217% capital gain.

Financial highlights

• 9M’24 gross revenue rose 29% YoY to Rs166.5bn and pre-provision operating profit increased 31% to Rs106.3bn; net interest income declined 1% to Rs105.2bn.

• 9M’24 net non-mark-up income was Rs61.3bn, with fee-based revenues up 22%; operating expenses increased 23% to Rs58.0bn.

• Interest earned rose 145% YoY to Rs825.9bn, while interest expensed increased 213% to Rs720.7bn.

• Net credit-loss allowance was a Rs1.5bn reversal versus a Rs2.0bn charge in 9M’23; standalone PAT increased to Rs55.0bn from Rs40.9bn.

• Sep’24 total assets were Rs7,711bn, deposits Rs2,828bn, borrowings Rs4,304bn and net assets Rs313bn.

Outlook and guidance

• Management expects profitability to be sustained in 2025 and 2026; fixed-income holdings are expected to cushion lower-rate impacts for 18–24 months.

• Management expects most of the advances pipeline to materialize in Q4’24 and targets a year-end advances-to-deposits ratio above 50%.

• Deposit-market growth is expected at 15%–16%; the aim is to grow current accounts faster and increase market share, without a public target.

• Credit-charge guidance is 0.5% of assets annually, with no significant portfolio deterioration anticipated.

• Priorities include core-business investment, branch and Islamic banking growth, deposit market share, trade, front-line staffing and a unified digital platform.