Karachi: United Bank Ltd. (UBL) reported a decline in its third-quarter net profit, attributing the dip to increased operating expenses, according to a recent press release by AKD Securities Limited. The bank's net profit after tax (NPAT) for the third quarter of the calendar year 2026 stood at PKR 30.6 billion, marking a decrease of 13% year-on-year and 18% quarter-on-quarter. Despite the drop in profitability, UBL announced a cash dividend of PKR 8.0 per share, bringing its cumulative payout for the first nine months of the year to PKR 24 per share.

According to AKD Securities Limited, UBL's net interest income (NII) for the third quarter was recorded at PKR 93.3 billion, reflecting a modest increase of 1% year-on-year and 3% quarter-on-quarter. This growth was primarily supported by an expansion in the bank's asset base, driven by a significant rise in deposits. UBL's deposits surged by 36% year-on-year and 6% quarter-on-quarter, reaching a record PKR 6.5 trillion by the end of September 2026. This deposit growth facilitated a 24% year-on-year increase in the bank's average asset book, although the investment portfolio saw a 20% quarter-on-quarter decrease, resulting in a 32% reduction in borrowings to PKR 5.4 trillion.

AKD Securities Limited expressed a 'BUY' stance on UBL, projecting a target price of PKR 590.0 per share by December 2026. The optimistic outlook is based on the bank's strong profitability prospects, underpinned by continuous deposit growth and an improved current account and CASA mix.