UCB, IPDC profits decline in January-September

United Commercial Bank’s (UCB) registered a 10.47 per cent year-on-year decline in net profit in the first nine months (January-September) of the year 2022.

In January-September of 2022, the bank posted a net profit of Tk 188 crore versus Tk 210 crore for the same period of 2021.

During the time, its operating costs surged by more than 20 per cent, affecting the profit, said a filing posted on the website of the Dhaka Stock Exchange (DSE) on Monday.

According to the bank’s unaudited statement, its total operation expenses increased by 20.23 per cent to Tk 1,365 crore in Jan-Sep this year compared to same period of previous year.

Among the operating expenses, salaries have increased by 15 per cent to Tk 628 crore in Jan-Sep this year, rent, tax, insurance and electricity increased 54.45 per cent to Tk 123 crore during first nine months (January-September) this year on a year-on-year basis.

Net interest income of the bank, however, increased slightly in the period.

It posted an income Tk 1,078 crore for the first nine months this year against Tk 1,012 crore for the same period of the last year.

Income from investment (Treasury bill, Treasury bond etc.) was Tk 411 crore and income form commission, exchange and brokerage was Tk 668 crore for the first nine months of this year.

UCB was one of several banks like City Bank, Brac Bank, Dutch-Bangla Bank, Prime Bank, Standard Chartered Bank and Southeast Bank that made unusual gains from forex market during the first half of this year.

UCB gained Tk 201 crore from the forex trading during January-June this year, which was up 205 per cent compared to same period of the last year.

It had a forex trading income of Tk 66 crore in the first half of 2021.

Recoveries form previously written off advances was Tk 18.5 crore for Jan-Sep this year, which was Tk 7 core in year on year. Unclaimed divided of the bank stood Tk 6.28 crore as of September this year, according to the unaudited financial statements.

Meanwhile, IPDC, a leading non-bank financial institution in the country, posted decreased profit during the first nine months (January-September) this year on a year-on-year basis.

Its net profit stood at Tk 62 crore for January-September of 2022, against Tk 63 crore for the same period of 2021.

Its EPS was also declined to Tk 1.67 for January-September of 2022 from Tk 1.70 for the first nine months of 2021.