UCB profit drops 44pc in Q2

The net profit of United Commercial Bank (UCB) declined by 44 per cent year-on-year to Tk 517 million in the April-June quarter this year, mainly due to higher interest expenses on deposits and borrowings.
The private lender's consolidated profit was Tk 915 million in the April-June quarter in 2022.
As a result, the bank's consolidated earnings per share stood at Tk 0.35 for the June quarter this year, down from Tk 0.62 (restated) in the same quarter a year before.
The bank's half-yearly profit also declined by 20 per cent year-on-year to Tk 1004 million, according to its unaudited financial statements published on Tuesday.
The interest expenses increased on deposits and borrowings, and operating costs also increased during the quarter, which impacted the profit growth, said the bank in a regulatory filing on Tuesday.
However, the bank's consolidated net operating cash flow per share turned positive at Tk 28.95 for January-June this year, compared to Tk 8.77 in the negative for the same period last year, due to fewer disbursements of loans and advances.
Meanwhile, United Commercial Bank made a record profit of Tk 3.30 billion in 2022, thanks to a significant gain by the treasury department, which deals with foreign exchange transactions in export and import.
Based on the record profit, the bank's board declared a 5 per cent cash dividend and a 5 per cent stock dividend for the year 2022.
Listed in 1986, the bank's stock remained stuck at Tk 12.40 for the last two months.

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