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UCB reports record 32pc profit rise

FE REPORT | April 27, 2023 00:00:00

United Commercial Bank PLC made a record Tk 3.30 billion profit in 2022 - the highest since listing with the stock market in 1986.

The listed bank's profit grew at a rate of 32 per cent in the year compared to the previous year, driven by increased income from commissions and fees although core business in banking suffered due to the economic slowdown.

The private commercial bank earned Tk 1.42 billion or 43 per cent of the total profit in the final quarter as the lender secured high income in the export-import segment, according to its earnings data.

An official of the bank, requesting not to be named, said a significant gain by the treasury department, which deals with foreign exchange transactions in export and import, helped the bank attain the record profit.

The local foreign exchange market turned volatile as a severe shortage of the greenback emerged following an unprecedented jump in import bills fuelled by the Russia-Ukraine war.

The bank's earnings per share stood at Tk 2.35 for 2022, up from Tk 1.78 a year ago.

The board of directors of the bank recommended 5 per cent cash and 5 per cent stock dividends for 2022. The annual general meeting will be held on June 26, virtually. The record date is May 18.

The stock dividend is subject to the approval of regulatory authorities, said the bank in a regulatory filing on the Dhaka Stock Exchange on Wednesday.

The bank also informed that a stock dividend has been recommended to strengthen the capital base of the bank to comply with the regulatory requirements and to support the business growth. It is declared out of accumulated profit.

Its consolidated net asset value per share was Tk 28.57 and consolidated net operating cash flow per share of Tk (13.25) for 2022 as against Tk 26.59 and Tk (16.85) respectively in the previous year.

The bank's stock price has been languishing at the floor price of Tk 13 since October 60 last year.

Starting its journey in 1983, United Commercial Bank has since been able to establish itself as one of the largest first-generation banks in the country with providing services through 224 branches.

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