UCB makes impressive profit growth in 2022

United Commercial Bank PLC (UCB) made an impressive 32 per cent growth in its net profit in the year 2022.

The listed bank’s net profit increased to Tk 330.4 crore in 2022 from Tk 250.3 crore in the previous year.

The lender’s consolidated earnings per share (EPS) increased from Tk 1.78 to Tk 2.35, while its consolidated net asset value (NAV) per share increased from Tk 26.59 to Tk 28.57 in 2022.

The bank’s consolidated net operating cash flow per share (NOCFPS) also decreased from negative Tk 16.85 in 2021 to negative Tk 13.25 in 2022.

The board of directors of the bank recommended a 5 per cent cash dividend and a 5 per cent stock dividend for the year ending December 31, 2022.

The stock dividend payment is, however, subject to the regulatory approval.

The stock dividend has been recommended to strengthen the company’s capital base to comply with regulatory require-ments and support business growth, the lender said in its financial statement.

The dividend was declared out of accumulated profits, and it was not declared from the capital reserve, revaluation re-serve, or any unrealised gain, it added.

On the other hand, First Security Islami Bank (FSIBL) posted a 32 per cent increase in its net profit in the 2022.

But, the lender reported a decrease of 30.14 per cent in net profit for the first quarter (January-March) of 2023.

FSIBL’s net profit decreased from Tk 55.4 crore in January-March 2022 to Tk 38.7 crore in January-March 2023.

The lender’s consolidated EPS also decreased from Tk 0.53 in Q1 of 2022 to Tk 0.37 in the same quarter of 2023.

Its consolidated NAV per share increased to Tk 21.69 in January-March period of 2023 from Tk 19.98 for the same period last year.

The board of directors of FSIBL recommended a 10 per cent stock dividend for the year ending December 31, 2022, is sub-ject to regulatory approval.

The bonus shares have been declared to strengthen the company’s capital base as per regulatory requirements, and the retained amount as capital would be utilised to invest in potential business sectors, the bank said.

The bonus shares have been declared out of accumulated profit, and they have not been declared from the capital reserve or revaluation reserve or any unrealised gain, it added.

It is important to note that there was no price limit on the trading of FSIBL shares on Wednesday following the company’s corporate declaration.