UCB’s profit falls 43.50% in April-June

United Commercial Bank PLC suffered a 43.50 per cent year-on-year decline in profit in April-June of 2023 owing to a significant decrease in the operating profit stemming from a spike in interest expenses on deposits and borrowings and operating expenditures.

The profit stood at Tk 51.68 crore in the second quarter of the financial year, down from Tk 91.55 crore during the identical period a year ago, according to the unaudited financial statements of the private commercial lender.

Thus, the consolidated earnings per share were Tk 0.35 in April-June of 2023 against Tk 0.62 in the same three-month period a year ago.

UCB posted a Tk 100.41 crore profit in January-June, a year-on-year decrease of 20 per cent from Tk 125.51 crore in the first half of 2022. As a result, the consolidated EPS fell to Tk 0.68 from Tk 0.85.

The EPS fell owing to a significant decrease in the operating profit stemming from caused by a spike in interest expenses on deposits and borrowings and the hike in the operating expenses, said UCB in a filing on the Dhaka Stock Exchange.

However, the consolidated net operating cash flow per share returned to the positive territory to stand at Tk 28.95 in the first half of 2023 from a negative Tk 8.77 a year ago.

The growth in the disbursement of loans and advances was lower than that of deposits, resulting in the increase of the NOCFPS, the filing said.

The consolidated net asset value per share rose to Tk 29.09 on June 30 this year from Tk 27.32 on the same day in 2022.

UCB shares closed unchanged at Tk 12.40 on the DSE yesterday.