Has UBL paved the way for other banks to maximize arbitrage opportunities?

The recent financials of the banking juggernaut unveil a significant risk appetite

Pakistani banks have had a ball in the past one year with record profitability at the back of high-interest rates. The government’s never-ending appetite for deficit financing means that the local financial institutions have ample liquidity in the form of benevolent lending by the State Bank of Pakistan (SBP) aka repo transactions.

Profit has previously covered how Development Finance Institutions (DFI) like Pak Kuwait Investment Company (PKIC) and Microfinance players like U Microfinance Bank (UBank) have leveraged the current monetary and fiscal environment to increase the size of their balance sheets by 3-6 times. 

Read: Grow your company size by 3 to 6 times in just months. At least two Pakistani companies have done this & you can too. Here is how

Little did we know back then that one of the largest commercial banks in the country, United Bank Limited (UBL) would be inspired by this high-risk strategy and go all guns blazing in 2023 as a loaded investment entity.   


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Ahtasam Ahmad
Ahtasam Ahmad
The author works as an Editorial Consultant at Profit and can be reached at [email protected]


  1. after reading the whole article I could not understand how interest rates drop effects existing income generating assets/bonds…

    For example if I a bought a bond worth 100 PKR at a yield of of 20% with a maturity in a year. I will be earning 20 PKR on my investment.
    Now if the interest rates drop in my second quarter of investment, yes the yield of my bond will drop but the yield at which I bought was 20% and I will be still getting my 20 PKR at year end..

  2. the worst Bank I’ve ever seen . they scam with their employees,one of my friend is working more than a 7 year in ubl still he’s a contractual staff not permanent staff. Low salary around 35 basic and no other benefits. useless bank of the history.


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