United Bank (UBL) Q4 2024 earnings summary

Executive summary

• FY24 standalone PBT was Rs150.2bn, up 39% YoY; PAT rose to Rs80.5bn from Rs53.2bn, with EPS of Rs65.78 vs Rs43.44.

• Consolidated PAT reached Rs75.8bn vs Rs56.5bn, with EPS of Rs61.39 vs Rs45.05; growth reflected strong domestic and international operations.

• Revenue growth was supported by low-cost deposit expansion, a strong investment portfolio, and higher fee and commission income.

Financial highlights

• Gross revenue was Rs260.9bn, up 48% YoY; net mark-up income rose 21% to Rs173.4bn.

• Non-mark-up income was Rs87.5bn; fees and commissions reached Rs18.9bn, up 8%, supported by trade, card fees, and home remittances.

• Operating expenses increased 47% to Rs94.8bn; staff costs rose 58% to Rs37.8bn, while IT costs rose 21% to Rs8.8bn.

• Net provision charge was Rs12.8bn vs Rs1.3bn in 2023, reflecting IFRS 9 implementation and higher credit-loss allowances across domestic and international portfolios.

• Rs7.1bn gain on the sale of the UK banking subsidiary contributed to non-mark-up income.

Outlook and guidance

• Priorities include continued branch-network investment and growing low-cost deposits to improve balance-sheet earnings potential.

• Technology, process improvement, and data analytics remain central to the transformation strategy, with focus on speed, stability, security, and sustainability.

• Planned up to Rs20bn Additional Tier 1 capital issuance via Shariah-compliant Sukuk, or conventional TFCs if the Sukuk route is not viable, subject to approvals.