UBL unveils Rs40 billion investment plan for agriculture subsidiary, Khushhali Bank and university 

United Bank Limited (UBL) has approved an investment plan of up to Rs40 billion covering a new agriculture-focused subsidiary, further equity support for Khushhali Microfinance Bank Limited and the establishment of a university, according to a notice submitted to the Pakistan Stock Exchange (PSX) on Wednesday. 

UBL’s Board of Directors approved the investments at a meeting held on July 22, subject to the required shareholder, corporate and regulatory approvals.

The bank will invest Rs8 billion in a new private limited company in which it will hold a majority stake. The subsidiary will provide technology-based advisory and research services aimed at improving agricultural productivity, sustainability and the incomes of farmers and other participants in the agriculture value chain.

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

Khushhali Microfinance Bank had negative equity of Rs16.15 billion as of December 31, 2025. UBL said the investment would strengthen the microfinance bank’s financial position and support stability in Pakistan’s financial markets.

The transaction requires approval from UBL shareholders under Section 199 of the Companies Act, 2017, along with other regulatory and legal clearances.

UBL will separately contribute Rs10 billion over three to five years towards establishing a university as either a not-for-profit company under Section 42 of the Companies Act, 2017, or a charitable trust.

The university will be established in collaboration with Bestway Foundation, which will match UBL’s contribution.

The bank announced the investments alongside its financial results for the six months ended June 30, 2026.

UBL’s consolidated profit after tax increased to Rs85.91 billion in the first half of 2026 from Rs64.73 billion in the corresponding period last year. Earnings per share rose to Rs34.30 from Rs26.07.

For the April-June quarter, consolidated profit after tax reached Rs37.49 billion, compared with Rs28.62 billion a year earlier.

The board also announced an interim cash dividend of Rs8 per share, or 160%, for the second quarter. This is in addition to an earlier interim dividend of Rs8 per share.

UBL also appointed Shoukat Ali as company secretary with immediate effect.