UBL unveils Rs40bn strategic investment plan

United Bank Limited (UBL), one of Pakistan’s largest commercial banks, has approved strategic investments worth up to Rs40 billion across agriculture, microfinance and higher education.

The bank disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.

As noted in the notice, the UBL Board of Directors has approved the establishment of a private limited company as a subsidiary in which UBL will hold a majority stake, with an investment of Rs8 billion by UBL.

The development is subject to receipt of all applicable corporate and regulatory approvals.

“The primary objective of this new company is to strengthen the agriculture sector of the country and social uplift of the farmers.

“The company aims to design, develop and provide technology-enabled advisory and research services aimed at improving agricultural productivity, sustainability, and the livelihoods and incomes of farmers and other agricultural value chain participants,” read the notice.

UBL profit jumps 89% YoY to Rs35.36bn in Q3 of 2025

UBL board has also approved a further equity investment in Khushhali Microfinance Bank Limited (KMBL), an associated company of the bank, of up to Rs22 billion through participation in the rights issue and the acquisition of additional shares, including pursuant to its underwriting commitments.

“KMBL had negative equity of Rs16.15 billion as on December 31, 2025. UBL’s investment would help strengthen the financials of KMBL and help in the stability of the financial markets of Pakistan,” it added.

It has also approved the establishment by UBL, along with other promoters, of a university as a not-for-profit company under Section 42 of the Companies Act, 2017 or a charitable trust with contribution of Rs10 billion by UBL over a period of three to five years.

“The university would be setup in collaboration with Bestway Foundation, which would match UBL’s contribution,” it added.

UBL reported a consolidated profit after tax of Rs37.49 billion for the quarter ended June 30, 2026, marking a significant 31% increase from Rs28.62 billion recorded in the same period last year, according to the bank’s financial results issued to the Pakistan Stock Exchange (PSX) on Wednesday.

Consequently, the bank’s earnings per share (EPS) were Rs14.97 in Q2 of 2026, an increase from Rs11.43 in Q2 of 2025.

An interim cash dividend of Rs8 per share, i.e. 160%. This is in addition to the interim dividend already paid at Rs8 per share, i.e. 160%.