Union Bank Q3 profit drops 40%

Union Bank Limited has posted a 40 per cent fall in its earnings in the third quarter (Jul-Sep’21) of last year.

The bank will debut on the stock markets today as the 33rd listed bank.

The stock will be traded under the trading code "UNIONBANK" while the company code is 11152, the bank said in a news filing with the Dhaka bourse on Monday.

As per the un-audited Q3 financial statements, profit after tax was Tk 36.40 crore and basic earnings per share (EPS) of Tk 0.65 for the Jul-Sep’21 period ended on 30 September 2021 as against profit after tax of Tk 60.60 crore and basic EPS of Tk 1.08 for the same period of the previous year.

However, its post-IPO basic EPS for the Jul-Sep’21 period ended on 30 September 2021 would be Tk 0.37.

Moreover, profit after tax was Tk 121 crore and basic EPS of Tk 2.18 for the Jan-Sep’21 period ended on 30 September 2021 as against profit after tax of Tk 115 crore and basic EPS of Tk 2.07 for the same period of the previous year.

Union Bank's Tk 428 crore IPO has been oversubscribed by 3.62 times as it received IPO applications worth Tk 1,548 crore against the IPO size.

It has raised a Tk 428 crore fund from the capital market by offloading 42.8 crore ordinary shares with a face value of Tk 10 each.

A general investor has been allocated a minimum of 792 initial public offering (IPO) shares of the bank on a pro-rata basis—an allocation system introduced four months ago. Each non-resident Bangladeshi investor got 537 IPO shares.

In September last year, the Bangladesh Securities and Exchange Commission fixed Tk 10,000 as the maximum amount of IPO applications for each general investor.

Eligible investors applied for the largest ever IPO in the banking sector from December 26 to December 30 through an electronic subscription system.

It will utilise the proceeds to finance SMEs and different projects, buy government securities, invest in the stock market, and meet IPO expenses.

The Bangladesh Securities and Exchange Commission (BSEC) extended its consent for the IPO issuance on September 5. However, the stock market regulator imposed two conditions for the IPO.